RAKEZ is Catalysing Business & Economic Growth in 2025

How RAKEZ is Catalysing Business & Economic Growth in 2025?

As the world economy evolves through the year 2025, the UAE remains at the center of innovation, diversification, and investor confidence. Among its new shining stars is RAKEZ, fast-track-transforming-into-a-business-and-industrial-landscape-from-the-UAE-to-the-bigger-Middle-East-and-North-Africa).

RAKEZ is recognised as a strategic hub for entrepreneurs, SMEs, and multinationals looking for affordable, business-friendly, and globally connected environments. With over 13,000 new companies being added in 2024 and with another 3,600-plus just in Q1 of 2025, unprecedented levels of growth are witnessed in this zone. It offers everything from flexible licensing regimes, 100% foreign ownership, no personal income tax, and infrastructure ready-to-go to enterprises operating in target sectors such as manufacturing, services, logistics, and clean tech.

More than just a free zone, RAKEZ is positioned as a change agent that outlays foreign investment, jobs, and long-term industrial capacity. From startup support to large-scale industrial partnerships, RAKEZ’s dynamic approach in 2025 is setting new benchmarks for economic zones worldwide-and positioning Ras Al Khaimah as a vital contributor to the UAE’s future-ready economy.

How RAKEZ Is Changing Business & Economic Growth in 2025?

1. A Record-Breaking Start to 2025

Ras Al Khaimah Economic Zone (RAKEZ) has come roaring into 2025 with astounding momentum. In Q1 alone, the zone welcomed 3,676 companies, meaning a 23% year-on-year increase from Q1 2024. This rally is a sign of deep confidence amongst investors coupled with the surge in global interest-primarily from India, Pakistan, the UK, Egypt, and France-making RAKEZ one of the strongest economic hubs in the country.

2. Sectors of Opportunity

The dissection of new businesses gives a good perspective of RAKEZ’s ecosystem: 

• Services (consultancy, IT, marketing, software): 38% of total registrations
• Commercial: 26%
• General trading: 13%

Such mixtures would allow RAKEZ to then encourage a very broad spectrum of support, ranging from digital services to trade.

3. Momentum Continuing on from 2024

The growth in early 2025 builds on the great 2024 during which period over 13,000 new companies were attracted-a 66% rise over the year preceding-bringing its total to almost 30,000 operative companies. That year saw commercial activity (general trading, e-commerce) accounting for 53% of installations; consultancy was next with 24%, followed by media, manufacturing, and more.

4. The Recognition as Fast-Growing Zone in the UAE

In March 2025, RAKEZ was declared the Fastest-Growing Economic Zone in the UAE at the Asian Arab Awards. Among the praises given were its "remarkable growth, innovation, and global impact." A 66% increase in registrations and initiatives like Growth Series-for start-ups and SME development-were cited as catalysts. 

5. Support at the Level of Institutions and Partnerships of a High Profile

RAKEZ is not just about the numbers. It is about building ecosystems. It supports international market expansion by holding more than 50 diplomatic and trade missions emanating from countries such as India, Japan, the UK, the USA, Russia, and many more. Most notably, RAKEZ has signed MoUs with strategic value with CII and MIDC and other Indian trade bodies to foster India-UAE links-a scenario bearing witness in the 3,200 Indian setups in 2024 alone. 

6. Infrastructure & Industrial Strategy

Participation in Make it in the Emirates 2025 featured RAKEZ’s industrial ambitions. RAKEZ helped secure a gigantic industrial park of AED 1.1 billion and an area of about 130,000 square meters through THi Investment Management, creating about 2,500 jobs. Furthermore, an AED 30 million MoU with EV maker Faraday Future confirmed the establishment of a 10,000-square-meter facility for 200 skilled jobs.

These mega-projects highlight RAKEZ’s role in key sectors: automotive, EVs, advanced manufacturing, clean energy, defense, and more-propelling Ras Al Khaimah’s broader industrial diversification.

7. Pro-Business Ecosystem: Infrastructure & Services

RAKEZ combines efficient processes while being pocket-friendly and flexible:

• 100% foreign ownership allowed
• Zero personal income tax; in the zones, none on companies either; withholding tax is nil, whereas VAT is 5% only.
• Company setup is smooth: anywhere from a few hours to some days
• Endless possibilities: co-working space, office, warehouse, industrial land, labour accommodation, upscale relocation assistance.

The digital platform at RAKEZ empowers e-signing, online licensors, visa automation, bank support, uploading documents, etc., which establishes a swift ecosystem towards the future.

8. Economical & High in Quality of Life

Compared to prominent hubs like Dubai or Abu Dhabi, Ras Al Khaimah can say a big "No" to high operational costs-be they for land, utilities, or rent-while offering superior digital infrastructure and quality of life. The emirate attains a high safety rating (88.9) at rather low crime (11.1), great for both families and professionals alike. Visa-linked homes, schooling, health care, and leisure-including beaches and mountains-round up a complete living experience.

9. Strategic Location & Trade Connectivity
 

RAKEZ enjoys a strategic geographic positioning of Ras Al Khaimah-a location set at 45 minutes from Dubai, with sprawling port infrastructure (Saqr Port).  The office will then be linked to Etihad Rail in the coming days, which will facilitate logistic flows. Also, localities with an easier access to MENA markets and trade agreements such as CEPA and duty-free access further anchor RAKEZ as a worldwide gateway for commerce. 

10. Innovative Support for Entrepreneurs

RAKEZ promotes innovation as it works to:

• Growth Series 2025 initiative with "AI on a Budget" for SMEs to adopt AI at an affordable cost.
• Regular "Hall of Fame" awards for partners' best performers in HS&E, E&S.
• Presence at key expos such as Arab Health 2025 to promote business services.
• This will assure continued capacity-building and knowledge sharing within the RAKEZ community.

What It Means for Ras Al Khaimah and the UAE?

• Faster Economic Diversification: Industrial developments in RAKEZ add to a diversified balanced economy in Ras Al Khaimah-one where no specific economic sector dominates.
• Regional and Global Trade Enhancements: With new logistics infrastructure in place, RAKEZ is posed to serve as a conduit between Africa, South Asia, and MENA.
• Job and Skill Market Expansion: Industrial parks create thousands of skilled roles, while SMEs draw in diverse talents.
• Foreign Investment Magnet: With investor protections, repatriation, and zero taxes, RAKEZ is attracting global capital.
• Holistic Community Building: Beyond business, RAKEZ supports lifestyle needs-housing, schools, and services- fostering long-term settlement.

How Flyingcolour Business Setup Contributes to Business & Economic Growth?

Flyingcolour Business Setup acts as a business catalyst for company formation and economic development in the UAE. Being the top consultancies with over two decades of experience, we simplify the complexities in company setup processes-whether it is setup in a free zone like RAKEZ or a mainland territory or an offshore jurisdiction like RAK ICC or BVI. We facilitate entrepreneurs and investors in establishing their business with confidence by providing expert guidance in matters related to structure, licensing, and compliance.

In 2025, it is for our contribution that support to SME and startup activities remains a crucial area of focus. Our relatively inexpensive setup packages, visa facilitation, and business-friendly jurisdictions ensure lowering of entry barriers from the inclusion perspective of entrepreneurs. Post-setup services like accounting, VAT advisory, bank account opening assistance, regulatory filings, etc., help cement compliance and sustainability.

We also promote global expansion by advising on trans-border structures and offshore strategies, international trade, and capital inflow. With a 360° service model that includes immigration, real estate, and even citizenship-by-investment, Flyingcolour Business Setup supports not just business growth but holistic economic participation.

In doing so, we help reinforce the UAE’s reputation as a global business hub and accelerate the nation’s vision of a diversified, innovation-driven economy.

FAQs

Q1: How many companies are in RAKEZ in 2025?

A1: New firms on boarded by RAKEZ stand at 3,676 in Q1 2025, marking a 23% increase Year-on-Year. With 13,000 plus businesses created in 2024 alone, the total membership is nearing 30,000 active companies.

Q2: Which nationals invest the most?

A2: Heavy interest in RAKEZ comes from India (more than 3,200 new setups in 2024), followed by Pakistan, the UK, Egypt, France, and the Philippines.

Q3: Which sectors dominate?

A3: Services took the front seat in Q1 2025 at 38%, then commercial at 26%, followed by general trading at 13%. 2024 featured commercial (53%), consultancy (24%), media, manufacturing, and others. 

Q4: What incentives does RAKEZ offer?

A4: RAKEZ offers fast-track licensing processes, zero personal and withholding taxes, minimal corporate taxes (maximum of 9%), 100% repatriation, lease flexibility, digital platforms and support for banking, low-cost services, and packages for entrepreneurs and SMEs.

Q5: From a sustainability and innovation standpoint, how can RAKEZ help?

A5: Such avenues include the Growth Series (for instance, AI adoption support), HS&E Awards, industry events, and participation in expo programs such as Arab Health 2025; meanwhile, tech-enabled infrastructure and digitisation lead roadblocks from the front.

Therefore, to learn more about The Role of DIFC in Wealth Protection For High Net Worth Individuals, Book a free consultation with one of the Flyingcolour team advisors.

The article was published on 26/06/2025. It is important to note that the federal policies and updates mentioned may have changed since then. For the most current information, please contact our consultant!