RAK Business Mag

‫مجلــة أعمــال رأس الخيمــة‬

PUBLISHED BY RAK DED | ISSUE 1, JANUARY 2018 EASY WAY TO
ESTABLISH YOUR
ALHAMMADI OWN COMPANY

RAK ADOPT THE BEST 10 REASONS TO
OF SUSTAINABLE INVEST IN
RAS ALKHAIMAH
DEVELOPMENT
VAT
PRIVATE SECURITY
PROTECTS YOUR DEFINITION,
MECHANISMS
INVESTMENTS AND CONTROLS

SEHTEQ KLUDI RAK

INSURANCE RANKS THE FIRST
PACKAGES AT IN UAE AND GULF
COMPETITIVE
RAS ALKHAIMAH
PRICES
DESTINATION BEYOND A JOURNEY

A WORD UAE Centennial 2071 ... Wills up the clouds

Supervision The Government of the UAE has launched the “UAE Centennial 2071”, an ambitious
Sh. Mohamed bin Kayed Al Qasimi
project to build emirates of the future and equip the UAE for future generations. The
Chief in Editors
Dr. Abdulrahman Alshayeb AlNaqbi project is a comprehensive and extensive government program that includes the de-

Managing Editor velopment of a national strategy to enhance the country’s reputation and soft power,
Aisha Obaid Alayyan
and ensure that there are diverse sources of government revenue away from oil, in
Editors
Dr. Abdel Halim Moheisen addition to the investment in advanced technology-focused education and build a
Maryam Haji Mohammed
system of Emirati ethical values for future generations, Raising productivity in the
EDITORIAL AND DESIGN
national economy and enhancing the community cohesion.
NewGeneratioN
As His Highness Sheikh Mohammed Bin Rashid Al Maktoum said: “We have plans
MEDIA
Khawla Ibrahim until 2021, and with the centennial of the UAE we will have a five-decade vision for
Zainab Shieha
generations forming a clear map of long-term government operation, and the future
Badr Helmy
Ahmed AlAlhassan generations will need potentials we lay down from today, foundations we raise from

Maher SafyeldiN now, and an environment for growth to be thought of from this moment on.
CONTACTS AND ADVERTISING
T he vision did not leave anything to chance. The eminent nations are not left to
050 899 5669
chance, but to the diligent and sincere science that is planned with the children’s
+971 7 222 999 5
[email protected] arms and with the ability to believe that progress must be preceded by knowledge

and knowledge has an axis in this centennial. Skeptics may see it as a surrealistic pro-

ject, but our leadership has always taught us that our dreams are achieved by working

with proper planning and mobilizing the resources of the nation to guide them to

the service of human happiness and well-being, So that future generations will live

a happier life in a better environment with greater opportunities and stronger and

more effective communication with the world, as His Highness Sheikh Mohammed

bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander

of the UAE Armed Forces

I n order to prove that Ambition is not achieved by dreams but by action, the UAE

advances every day in the global competitiveness indicators and the business envi-

ronment to match business with dreams, With the UAE ranking first in the region

and 16th globally, maintaining its top position in the top 20 competitive economies

worldwide in the latest edition of the 2017 Global Competitiveness Report, And has

received advanced rankings that have been included in the top ten in the world in

three of the main axes in the report, and one of the top twenty globally in half of these

axes, it also ranked third in the world in terms of efficiency of the commodity market,

which is a global indication of the success of the policy of economic diversification

in the country and the clarity of visions and strategic plans on the performance and

efficiency of the business market, in terms of infrastructure, the UAE ranked first in

the road quality index and second in the index of Quality of Airport and Air Transport

Infrastructure, it also ranked third in the world in both the Quality of Port Infrastruc-

ture Quality Index and other indicators.

There is much to be told about a story of a nation whose main aim of its leadership

is human happiness. Dr Abdulrahman Alshayeb Al Naqbi

DED Director-general

DEPARTMENT OF ECONOMIC DEVELOPMENT W www.ded.rak.ae E [email protected] RAKDED_AE

Vision: Strategic Goals: ​Organizational Values:
Pioneer in the performance to build a competitiveness and ֺֺ Facilitate and improve Licensing and permitting procedures. Excellence: We are keen to providing value-added services to meet the needs of the customers.
sustainable economy. ֺֺ Contribute to building a balanced and diversified knowl- Responsibility: We commit to perform our responsibilities toward the customers and the community.
Mission: edge-based economy. Respect: We treat our employees, our customers and our partners with immense care and mutual
To regulate, monitor, support and promote the economic ֺֺ Enhance business monitoring and consumer protection. respect.
a ctivity in order to boost competitiveness, creativity and ֺֺ Build the ties that bind the relationships between DED and the Transparency: We believe in clear and explicit communication with our customers, partners, employees
s timulate comprehensive and sustainable economic devel- relevant authorities. and suppliers.
opment, embracing transparency and mutual respect in the ֺֺ Improve the efficiency of the organizational support services and Collaboration: We value the partnerships and cooperative relations with our employees and the relevant
way we deal with our partners, and relying on qualified na- consolidate the organizational values. authorities.
tional cadres and efficient systems and techniques.economy. Creativity & Innovation: We provide a creativity & innovation stimulating environment.w



12 AHMED ALHAMADI... RAK ADOPT BEST PRACTICES OF SUSTAINABLE DEVELOPMENT 16 RAKEZ... A PROMISING AND ATTRACTIVE ENVIRONMENT FOR INTERNATIONAL INVESTORS

CONTENTS

ISSUE 1, JAN. 2018

38 WORLD OF ROBOTS... IS INVENTION SUPERIOR TO INVENTOR 42 RAS AL KHAIMAH BEGINS NEW YEAR WITH A WORLD RECORD

07 20 43

07 MY CITY CENTRE... 20 10 REASON.. 28 RAK DCA ... Progress is parallel to the
Now In RAK Why to Invest in Ras Al Khaimah tourism and economic development in ras
al khaimah
08 SEHATEQ... 22 KLUDI RAK
Insurance packages at competitive prices Ranks first in the UAE market sales 30 VAT ... Definition, and application
mechanisms and controls
18 RAK SME ... Promotes quality and innovative 24 SAEED AL-SHAMSI
projects for entrepreneurs Private Security Protects You Investment 43 RAS AL KHAIMAH
Begins New Year with a world record

Where else could you enjoy
five star dining

under a sky full of stars?

Only 45 minutes from Dubai International Airport www.raktda.com

Ritz Carlton Al Wadi Desert, Ras Al Khaimah

ECONOMIC
PANORAMA

NEWS | 06
RAK DED | 08
SPOTLIGHT | 12

RAKDED HONORS ITS STRATEGIC PARTNERS
‫ـــــــــــــــــــــــــــــــــ‬

RAKDED held its annual strategic partners’ confer- man Al-Naqbi, Director General of the Department
ence for 2017, and all those who contributed of the expressed his appreciation for their sincere efforts
services and initiatives of the Department were hon- and cooperation, which helped drive development
ored and enhanced the strategic objectives RAKDED and excellence in the Emirate of Ras Al Khaimah,
and the best services provided to the client and the pointing out that honoring the partners by the end
community during the current year. The number of of each year is part of the strategic role of the strate-
honored partners was 67 partners in different cat- gic partners and their contribution to achieving the
egories including local partners, federations, sup- achievements of the department and its objectives
pliers, tomorrow’s licenses, committed dealers, the and initiatives. Simple in their rewards and a good
oldest licenses in the emirate and clearing offices. response to all their efforts in the success of the in-
A private partner, media partner and best training itiatives, activities and activities of the Department
center were also honored. In this context, Abdulrah- throughout the year.

6 | RAKBUSINESS

NEWS

MY CITY CENTRE... NOW IN RAK Khalid Abu Nasrah, Robert Welanetz, Fuad Mansoor Sharaf, Ghaith Shocair, Ali Alabdulla, Khalid al Obaidli, Maryam Ahli and Hamad Al Lawati
‫ــــــــــــــــــــــــــــــ‬
Majid Al Futtaim recently opened My AED 68.5 million mall,
City Centre Al Dhait to meet the every- which has a gross leasable
day dining, lifestyle and retail needs
of Ras Al Khaimah’s fastest-growing area of 5,494 square me-
communities. Today’s inauguration tres, houses more than 30
marks regional and international
Majid Al Futtaim’s first investment in a
community and convenience focused lifestyle brands
retail and services destination for this
emirate’s residents and tourists.
My City Centre Al Dhait is Majid Al
Futtaim’s third My City Centre mall in
the UAE, a neighbourhood shopping
and dining destination created specif-
ically for nearby residential and com-
mercial communities.
Easily accessible due to its proximity
to Mohammed Bin Zayed Road, My
City Centre Al Dhait offers a vast array
of household goods, including fresh
produce and bakery items from Carre-
four Market.
The opening of My City Centre Al Dhait
reinforces Majid Al Futtaim’s commit-
ment made in 2016 to increase invest-
ments in the UAE by AED 30 billion by
2026, taking its total investments in
the UAE to AED 48 billion.

Mark Chapleski, Troon President and Benoy Kurien, Al Hamra Group General Manager Mr. Adil Al Zaroon and Dr. Raza Siddiqui

STRATEGIC PARTNERSHIP RAK WELCOMES ITS FIRST-EVER FERTILITY CLINIC
‫ـــــــــــــــــــــــــــــــــ‬ ‫ـــــــــــــــــــــــــــــــــ‬
Ras Al Khaimah’s (RAK) leading real estate company, Al Hamra Group, Residents of Ras Al Khaimah will now have access to com-
has partnered with Troon International, the leader in upscale golf course prehensive fertility services as Bourn Hall Fertility Centre,
management, development and marketing, to provide full management Dubai, a company of Bourn Hall International, and RAK
services to Al Hamra Golf Club, strengthening the visibility of the destina- Hospital partner to launch the first fertility clinic in the
tion and providing RAK with an internationally acclaimed golf operator. Emirate. The collaboration ensures top-of-the-line IVF con-
The premium golf course, designed by renowned golf course architect, sultancy and intervention at the doorstep of RAK residents,
Peter Harradine, has risen to prominence since opening its doors a dec- who were earlier travelling to other emirates for fertility
ade ago and now welcomes over 20,000 visitors from around the world treatments. The clinic primarily provides IVF consultation,
every year and has amassed 120 members. along with the medical management of genetic disorders,
such as genetic screening to avoid hereditary diseases.
The fertility clinic, due to its strategic placement within the
hospital will also serve as a one-stop-solution for couples
looking for treatment of chronic ailments to help increase
the chances of fertility.

RAKBUSINESS | 7

SEHTEQ... Dr Al Naqbi added, “SMEs are the
core of our economic growth. Initi-
Insurance packages at atives like Sehteq will help SMEs to
competitive prices grow and attract the right talent by
encouraging a healthier and more
“Sehteq” or “you health” offers optional and affordable health insur- productive workforce. Moreover, this
ance coverage for companies licensed by DED. It is a state-of-the-art initiative will nourish the private
health care platform that combines “Insurtech” and “Healthtech”, the health care sector in the emirate and
latest technologies in the insurance and health industries. attract local and international in-
vestments to meet the additional de-
550 mand on health services. Sehteq is a
proactive step in exceeding minimum
Affordable standards and achieving our custom-
health insurance er happiness goals, well before it be-
coverage starts comes compulsory by federal laws.
as low as Dh550 The department will also be launch-
to companies ing ‘Innovation Month’, with a num-
and individuals ber of innovative business ideas and
initiatives.”
8 | RAKBUSINESS
“The Sehteq commitment demonstrates how the DED continues to Dr Saif Al Jaibeji, Chairman of Se-
work towards the vision of His Highness Shaikh Saud Bin Saqr Al Qa- hteq, commented, “Sehteq provides
simi, Supreme Council Member and Ruler of Ras Al Khaimah, to grow clients with the options to choose the
and support SMEs,” said Dr Abdul Rahman Al Naqbi, Director-General right health insurance coverage with
of the Department of Economic Development in Ras Al Khaimah. the use of latest technology. Within

RAK DED

minutes, the customer can buy and RAK DED LAUNCHES ZAYED KNOWLEDGE CORNER
activate his or her health insurance ‫ـــــــــــــــــــــــــــــــــ‬
coverage on the portal. Additionally, Based on the vision of the UAE Government great example of the happiness of citizens
it offers the client the option to use of to make the year 2018 the year of Zayed, the and residents worldwide. He pointed out
an Emirates ID card instead of an in- economy of Ras Al Khaimah formed a team that the establishment of Zayed Knowledge
surance card, adding another layer of named “Eyal Zayed,” and launched the first Corner comes to exploit the waiting time
convenience to the customers.” of its work this year by announcing the first in the center of reading And to gain knowl-
initiative was the launch of Zayed Knowledge edge through reading books related to the
First in the northern Emirates Corner at its headquarters, Al-Naqbi, Direc- late Sheikh Zayed bin Sultan Al Nahyan and
Dr Saif Al Jaibeji, Sehteq’s chairman, tor General of the Department, and Sami his achievements and his journey locally, re-
said they will provide clients with the Al-Rabah, the team leader, in addition to the gionally and internationally. Sami Al-Rabah,
options to choose the right health in- presence of the team members and employ- the team leader, said it was a good feeling to
surance coverage with the use of lat- ees of the department. Al-Naqbi stressed that welcome the new year with positive words and
est technology. the founder of this country deserves our sin- positive behaviors to raise the morale of every-
“Within minutes, the customer can cere efforts and devotion to comply with his one towards the work environment and give
buy and activate his/her health in- approach and vision, which made the UAE a employees positive energy to continue giving.
surance coverage on the portal. Addi-
tionally, it offers the client the option RAKBUSINESS | 9
to use of an Emirates ID instead of an
insurance card, adding another layer
of convenience to the customers.”

Financial burdens
Claude Zoghbi, General Manager of
RAK Insurance, said, “It is a remarka-
ble step for Ras Al Khaimah to be the
first emirate in the Northern Regions
and the third after Abu Dhabi and
Dubai to introduce a unique health
insurance scheme which will provide
protection to SMEs and investors from
health care related financial burdens.
RAK Insurance, being one of the con-
ceptualisers, is delighted to be part
of this initiative in partnership with
RAK DED and RAK Incubation. The
Sehteq technology-driven digital plat-
form will offer economical health care
solutions. As a prominent RAK based
insurance provider this is an attractive
opportunity for us to serve RAK SMEs
and investors. This initiative will trig-
ger more ideas in developing other in-
surance products for asset protection
and business contingencies.”

5 Differnt Packages
The portal will provide five different
plan options, which are built to suit
all categories of consumers and needs
in Ras Al Khaimah. The options start
with the ‘Sehteq Basic Plan’, which
provides coverage in Ras Al Khaimah.
‘Sehteq Plus’ covers the Northern
Regions, and ‘Sehteq Elite’ operates
throughout the UAE. Two additional
plans for regional and global coverag-
es are suitable for multinational com-
panies and investors.

2018 NUMBERS & STATISTICS

TOURISTS, RAS AL KHAIMAH TOURISM TARGETS IN 2018 OVER THE PREVIOUS YEAR
1200 fixed prices at outlets in Ras Al Khaimah in
The Ras Al Khaimah Tourism Development Authority 2018
The Department of Consumer Protection at the Min-
(RAKTDA) is looking at “Vision 2018” to attract a mil- istry of Economy is aiming to stabilize the prices of more than 1,200
different brands in the retail outlets in Ras Al Khaimah during the
MILLION lion tourists to Ras Al Khaimah. “ The Emirate is rec- year 2018. Dr. Hashim Al Nuaimi, Director of Consumer Protection
ognized as one of the fastest growing Emirates in the Department at the Ministry of Economy, said: Prices for more than
1,200 different commodities have been called for stabilization at
tourism sector thanks to the directives of His Highness commercial outlets located in the emirate in 2018, with an increase
of about 20%, compared to the number of items fixed in 2017, point-
Sheikh Saud Bin Saqr Al Qassimi, Member of the Supreme Council ing out that the fixed prices of goods in all major outlets of the state
will be up to 5000 categories in 2018.
and Ruler of Ras Al Khaimah and we are optimistic that our goal of
UAE BANK CREDIT TOWARDS 5% GROWTH
attracting one million visitors by the end of 2018 will be achieved,” Moody’s Investors Services confirmed in a recent
report under the title “The Prospects of the UAE
said Haitham Mattar, CEO of Ras Al Khaimah Tourism Development Banking System”, that the outlook for the UAE
banking sector has stabilized. The growth rate of
Authority. And 2.9 million visitors by the end of the year 2025. In the bank credit has been expected to grow to about 5% compared to a de-
cline of about 2% in 2017. And compared to growth of 5.8% in 2016
next phase, we will focus on three major tourism sectors - beyond the and 8% in 2015. This is due to the continued strength of the UAE econ-
omy, its expected positive performance in 2018, the strong capitaliza-
tion of banks and the stability of financing and liquidity conditions
in the sector.

traditional sun and sand tourism market - adventure and thrill mar-

kets, cultural pioneers, health facilities and luxury resorts.

UAE ECONOMY IS GROWTH

The International Monetary Fund (IMF) pre-
dicted that oil price increases would contrib-
ute to the growth of the UAE economy to 3.4%
in 2018, compared with 1.3% growth for 2017 and 3% in 2016. Ji-
had Azour, (IMF) Director of Middle East and Central Asia, Said
during the conference announcing the regional economic out-
look report for the Middle East and North Africa report that the
UAE economy has succeeded in overcoming the consequences of
the sharp decline in world oil prices, noting the reform initiatives
adopted by the State during the past years to reduce dependence
on oil revenues.

AIRLINE PROFITS RAK PROPERTIES INVESTMENTS” IN 2018

Airlines are poised for record annual prof- RAK Properties plans to invest AED 1.5 billion in 2018,

its in 2018, according to the International BILLIONS with a large part of this investment being directed to
DERHAMS Hayat Island Project, which the company recently
Air Transport Association (IATA), thanks launched along with other projects.

BILLIONS to improved economies around the world “The Al Hayat Island project, an investment of AED
and strong demand for travel, with ticket

prices also expected to rise. The association 3 billion, is scheduled to start in the first quarter of 2018 and to be

expects total profits to rise 11% to $ 38.4 billion in 2018, adding completed by the beginning of 2020,” said Mohammed Sultan Al Qadi,

that the prospects are encouraging. North American and Euro- Chief Executive Officer of Ras Al Khaimah Real Estate, listed on the

pean airlines are expected to generate $ 27.9 billion in total prof- Abu Dhabi Securities Market, and mentioned that the company will

its of $ 38.4 billion. After a six-year slump, passenger earnings, a head to banks to obtain financing for the new projects by 70%, and that

measure of ticket prices, are expected to rise by 3% next year after the remaining amount of self-liquidity.

falling 1.5% last year.

10 | RAKBUSINESS



AHMED AL HAMMADI RAK adopt best practices of
sustainable development
Director of public Services Department

12 | RAKBUSINESS

UNDER THE SPOTLIGHT

RAS AlKhaimah The public Services Department at Ras Al Khaimah is well By Khawla Iberahim
has achieved out- positioned to upgrade infrastructure services, civil projects
standing cultural and public services for citizens, which is highlighted by the lated based on several axes:
achievements and cultural and architectural renaissance witnessed by the 1. Preparing and building future models and adapting
has become one emirate today.
of the important them to the vision of His Highness Sheikh Saud bin Saqr
executive depart- The public services department is establishing a prom- - Ruler of the Emirate.
ments referred to ising future for Ras Al Khaimah in cooperation with local 2. Develop specialized human resources to draw strategic
in all fields government and federal departments. “I always look for- and operational plans.
ward to the future with optimism and hope, Where I take 3. Launch studies and scenarios on the outlook for the fu-
my view of the vision of His Highness Sheikh Saud bin Saqr ture in all vital sectors.
Al Qasimi, member of the Supreme Council of the Union 4. Enhance innovation and creativity platforms, and smart
and Ruler of Ras Al Khaimah, may God protect him, and applications.
His Highness the Crown Prince and Chairman of the Exec- 5. Designing solutions for future challenges in partnership
utive Council His Highness Sheikh Mohammed bin Saud with specialized scientific institutions.
Al Qasimi, may God protect him, which is characterized by
unlimited ambition towards achieving a future develop- Infrastructure and advanced public service projects are a
mental renaissance in various economic, health, service fundamental key for the evolution of society and the de-
and social fields, making the Emirate of Ras Al Khaimah a velopment of the state. How do you plan your projects and
prominent city in the prosperity and cultural advancement what are your priorities?
and deservedly occupies a privileged place at the local, re- Infrastructure is our successful equation to achieve the
gional and global levels”. - Engineer Ahmed Mohammed objectives of economic and social development. Research
Al Hammadi, General Manager of Ras Al Khaimah public studies on urban and cultural development, the nation-
Services said in an interview with Rak Business magazine al agenda, the UAE’s orientations and the strategy of the
Government of Ras Al Khaimah are considered the main
On future plans and strategy for future work, Al-Hammadi source of plans for infrastructure development projects
says: and service areas in order to accelerate the economic and
The future is always linked to ambitions and achievements social progress as well as to strive to keep up with the civ-
in order to ensure continuity. In the midst of rapid and ilized and urban developments witnessed by the other
volatile changes and developments, it is necessary to lay emirates, and we seek through our projects to achieve the
the sound foundations for building and shaping a bright quality of infrastructure to rise to the level of global com-
future. In light of this, our future strategy has been formu- petition, The development and modernization of the roads
and bridges network, the establishment, development and
maintenance of dams, as well as the settlement of residen-
tial plots, are our top priorities.

RAKBUSINESS | 13

I take my view of the future from the vision of His
Highness Sheikh Saud bin Saqr Al Qasimi and His Crown
Prince, which is characterized by unlimited ambition
towards achieving a future developmental renaissance

How do your projects contribute to enhancing the business We support green tional excellence.
climate and attracting investments to Ras Al Khaimah, and economy policies Starting from where others have ended, it is the starting
how do you contribute to localization of investments? and conserva- point for competitive services based on experience and ex-
The infrastructure projects and the service activities car- periment, with a distinctive edge in innovation and crea-
ried out by the Department are an effective factor in attract- tion of natural tive leadership.
ing direct investments to the Emirate of Ras Al Khaimah, resources
which requires us to constantly upgrade the nature of work What is the importance of work and coordination with
and rely on various modern and advanced technologies Infrastructure is partners to enhance the developmental role of infrastruc-
and achieve high quality. The development of roads and our successful ture projects in the Emirate?
bridges network, the upgrading of sewage services, the pro- equation to achieve The department works to enhance cooperation with the
jects of cosmetic agriculture and waste management is an the objectives of government and private sectors through partnerships that
integrative services group that plays a key role in establish- economic and social contribute to achieving the department’s strategic objec-
ing the emirate of Ras Al Khaimah as an attractive destina- development tives, ensure the investment of resources and the distribu-
tion for investments. Long-term strategic tion of roles and responsibilities in the joint ventures with
investments in high efficiency, in addition to working to provide added
Are you open to the experiences and thoughts of others or infrastructure value to customers and achieve a common government
are you coming from your own visions? services planning goal through leveraging the diverse capabilities and skills
The exchange of experiences and experiments, especially are a key demand of partners, and we have a methodology for managing the
among the federal, local and private government entities for economic work with partners through which we ensure the effective-
and departments, is a necessity to promote the concepts development ness of the strategic partner in achieving the strategic ob-
of excellence in the government sector. The knowledge of jective of the department through periodic performance
outstanding practices, creative ideas and superior models indicators
is one of our means to achieve policies and improvement Our partnership goes through several stages, starting with
systems compatible with our vision and strategy. Contin- the planning and classification of partners and ending
uous development, standardized comparisons and ex- with the signing of the partnership contract and the imple-
change of field visits help us to benefit from our previous mentation of the terms of the agreement. For example, our
professional experience and experiments, making us able partnership with the (Municipality Department - Federal
to continuously develop and improve, as they are funda- Authority for Electricity and Water - Ministry of Infrastruc-
mental concepts of total quality management and institu- ture Development - Department of Economic Develop-
ment - Environment Protection Authority - Emirates Tele-

14 | RAKBUSINESS

communications Corporation) are the most of sustainability plans and strategies is not UNDER THE SPOTLIGHT
important partnerships that strengthen our limited to institutions but is also a societal
infrastructure development projects responsibility of individuals. EVENTUALLY,
In addition, the appreciation of the partners’ The achievements we are living today
efforts is important to ensure the continuity Finally, how do you highlight the beauty of are thanks to the Union which built its
of their effective and distinguished relation- Ras Al Khaimah without compromising its basis and laid its foundations of our
ship with the Department, where they are essence and traditional identity and heritage? state, HH the late Sheikh Zayed bin
honored annually through the annual cere- Heritage is considered an important part Sultan - may God bless his soul and his
mony to honor the partners and the distin- of our lives, from which we derive our tradi- brothers the members of the Supreme
guished. tions, our original values and our way of life, Council of the Union
which reflects our culture and national iden- And continued after him and walked
How do you promote sustainability concept tity. Our projects always present a picture of on his path our leaders and dignified
in your projects? heritage in bright new forms. Where we find elders the march of achieving honora-
Quality is a key factor in our projects in order many of the streets and squares are full of ar- ble achievements, which have caused
to ensure that high quality infrastructure is chitectural designs that depend on heritage transformations that changed the
in line with the highest international stand- as a style, as well as our projects in the main- course of history, the goal of our good
ards to meet future expectations by setting tenance and renovation of archaeological government is to delight people, and
specific performance indicators to ensure sites and heritage. achieve a nation that rises up with the
sustainable development, supporting green Through our community role, we always seek efforts of its rulers and wise policies
economy policies and conserving natural to launch all community initiatives and ac- above all.
resources. To complement the UAE’s move tivities that promote national identity and Thanks to the directives of His High-
towards a sustainable green economy heritage, perhaps the best evidence for us in ness Sheikh Saud Bin Saqr Al Qasimi
Were sustainability standards are applied to this field is the vision of our leaders and their and the Crown Prince, His Highness
all our projects from the planning and design great efforts to achieve a balance between Sheikh Mohammed Bin Saud, may God
stage until the completion of implementa- the urban renaissance and preservation of preserve them and their vision of the
tion, and in this regard, we note our ongoing traditional heritage to ensure a modern life future with a developmental perspec-
efforts to raise awareness of the importance upscale heritage of originality and exclusive tive that only knows the concepts of
of recognizing that the responsibility to com- identity. innovation, well-being and luxury. The
mit to the implementation and execution Department of Public Services has been
able to excel in its work, achieve its goal
of sustaining the quality of its projects,
and still has a lot to look forward to the
future of life that boasts superior servic-
es in prosperity and progress.

RAKBUSINESS | 15

INVEST

INVEST IN RAK | 16
ENTREPRENEURS | 18

MADE IN RAK | 22

RAKEZ

A promising and attractive environment for international investors

13000 Ras Al Khaimah Economic Zone Authority (RAKEZ) come the leading investment destination for glob-
is considered an ideal destination for more than al investors.
companies 13,000 companies including all types of investors At the northernmost part of the United Arab Emir-
ranging from entrepreneurs and start-ups to small ates (UAE) lies Ras Al Khaimah (RAK), one of the
100 and medium-sized companies and industrial com- leading business destinations in the country. The
panies representing more than 50 sectors from combination of RAK’s business-friendly environ-
Countries more than 100 countries worldwide, Thus forming ment and cost competitiveness has helped thou-
a major drive for the growth and prosperity of Ras sands of investors gain a higher return on invest-
50 Al-Khaimah’s economy, and for the emirate to be- ment.

sectors

16 | RAKBUSINESS

INVEST IN RAK

RAKEZ BUSINESS EXCELLENCE
AWARDS FOR 2017

RAKEZ 2017 Awards program for Busi-
ness Excellence aims at honouring
companies with outstanding perfor-
mance that contribute to the econom-
ic development of the Emirate of Ras
Al Khaimah. This year’s awards pro-
gram will be full of excitement and re-
wards. RAKEZ will award the winners
cash prizes totalling AED 200,000.

The emirate’s political security and for all types of business sectors, in- 1,2,3 RECYCLING CENTER
stability are backed by renowned cred- cluding industry, trade, consulting, As part of its efforts to preserve the en-
it rating agencies such as Fitch Rat- logistics, academic, media and many 1 vironment, RAKEZ has launched a re-
ings and S&P, while its connectivity to others. With the help of cycling centre to ensure waste collec-
fast-growing markets is well our business set-up tion in business areas, separated and
supported by major logistical hubs Various facilities: provided by (RAKEZ) consultants, you will disposed of in an efficient and safe
including: RAK International Airport; to investors including: select your suitable manner without leaving any negative
multilane superhighways that link to ֺֺ Shared office units and Offices. legal entity, licence impacts on the environment.
neighbour emirates; and five seaports ֺֺ Warehouses for manufacturing, type and facility. RAKEZ cooperates with Ras Al
led by Saqr Port, the largest bulk port Khaimah Waste Management Author-
in the Middle East. storage and assembly purposes. 2 ity, which recycles and exploits waste
ֺֺ Plots dedicated to industrial devel- Our business set-up in the production of electric power
Ras Al Khaimah Economic Zone Au- consultants will guide and various raw materials and also
thority (RAKEZ) is focusing its strategy opment. you from filling out sends them to recycling plants in Eu-
on diversifying the range of features ֺֺ Housing for employees and workers your application all rope, China and Vietnam.
and special services that enable in- Cost effective business packages and throughout submission, On the other hand, RAKEZ is devel-
vestors from all over the world to es- special offers for business establish- oping the internal road network in
tablish their companies, operate their ment, which are launched by (RAKEZ) ensuring that all Al-Hamra industrial area to facilitate
businesses and expand its range with from time to time to benefit business requirements are met. and support the logistics movement
ease in the country and the Middle owners. from and to the region. In addition
East. From which the most important RAKEZ) provides continuous business 3 to the establishment of new housing
of these services are: support services and meets customer Your licence along with for workers in the industrial area of
Various business licenses: for local needs and requirements from docu- your registration set Al-Hamra to serve all the industrial
companies and free zone companies ments, communications and coordi- sectors.
nation with other government depart- and bank letter will
ments. be issued upon com- UNIFIED SERVICES WINDOW
pletion of the licensing RAKEZ offers its services under the
formality, then the unified window system, which fa-
cilitates for the investor to obtain a
visa application license, establish a legal entity, and
process will start. commence his business properly for
profitable results. One of the most im-
portant services provided by (RAKEZ)
under one roof:
ֺֺ Business support services
ֺֺ Government services
ֺֺ Administrative services
ֺֺ Procurement services.
ֺֺ And many more.

RAKBUSINESS | 17

RAK SME Saud Bin Saqr Foundation for Youth Projects Development plays
a leading role in supporting and developing the Small and Medi-
Promotes quality and innovative um Enterprises (SME) sector in Ras Al Khaimah, by encouraging
projects for entrepreneurs young people to entrepreneurship, diversifying the economy
and achieving sustainable development. Through an integrated
18 | RAKBUSINESS package of services and facilities. In the past, the Corporation
has achieved qualitative leapfrogging in addition to its promo-
tion of small and medium enterprises for entrepreneurs

ENTREPRENEURS

The Foundation works to provide a lot of fa-
cilities and services to start and upgrade the
youth projects, including:

BUSINESS CENTERS:
The Business Center is one of the main initia-
tives of the Foundation. It provides a business
environment that is equipped with projects
and is supported with basic services such as
communications, Internet, meeting rooms,
training programs, etc. The business centers
offer various options from business incu-
bators, including closed and shared offices,
which help entrepreneurs to launch their
projects.

Saud Bin Saqr Foundation GOVERNMENT PROCUREMENT: Foundation’s bodies also conduct periodic
for the Development of Youth The Government Procurement Program pro- visits and periodic follow-up to the projects
Projects thriving history in vides Small and Medium Enterprises (SME) of the members of the institution in order
support of small and medium with the opportunity to develop and evolve to provide advice and identify the challenges
their business by supplying the needs of the facing them and find solutions to them and
enterprises Government of Ras Al Khaimah and its affil- develop the services and products provided
iates as well as the supporting entities of the by the projects.
Corporation with goods and services in both
contracts and procurement. INDUSTRIAL AND COMMERCIAL LANDS:
Upon instructions from His Highness Sheikh
BANK GUARANTEES EXEMPTIONS: Saud Bin Saqr, Member of the Supreme Coun-
The Ministerial Resolution on the exemption cil and Ruler of Ras Al Khaimah, to grant
of bank guarantees issued by the Ministry of industrial and commercial lands to young
Emiratization and Human Resources was ac- citizens wishing to establish their industri-
tivated as it comes in implementation of the al and commercial projects, the Foundation
incentives and privileges granted to small has received and reviewed the applications
and medium enterprises as stipulated by the submitted to provide an opinion and recom-
Federal Law for Small and Medium Enterpris- mendation in accordance with the nature of
es. The number of applications submitted by the submitted projects.
the entrepreneur members of the Foundation
to benefit from the bank guarantee exemp- AGREEMENTS AND PARTNERSHIPS:
tions reached 80 applications. The organization is constantly signing agree-
ments of support and cooperation with a
TRAINING AND DEVELOPMENT number of entities to provide the necessary
Believing in the importance of training and support to its members to start their work
qualification to improve the skills of the en- and projects.
trepreneurs and develop their experience in
managing their business and overcoming INTEGRATED SERVICES:
the obstacles in an open competitive market, Saud Bin Saqr Foundation provides a com-
the Foundation organizes several training plete package of services that provide small
programs and forums throughout the year in and medium-sized citizen entrepreneurs
cooperation with a network of training ser- with all they need to enter the business world,
vice providers, In addition to the awareness including:
programs that are implemented in order to • Exemption from commercial license fees.
develop the knowledge and skills of entre- • Letters of recommendation.
preneurs and to inform them of all the new • Free economic and legal consultations.
research, studies, regulations and laws and • Priority in nomination for international and
all that would help in the development and local exhibitions.
promotion of their projects. • Using the organization logo.
• Discounts on many services.
VARIOUS CONSULTING: • Open and closed offices for rent inclusive of
The Foundation provides administrative, all services.
technical and financial consultancy and • Meeting room and training.
assistance in the preparation of economic
feasibility studies for emerging projects and
reviews the studies submitted to them to ex-
press opinions and provide consultancy. The

RAKBUSINESS | 19

10 REASONS 1 includes eight deep berths and it pro-
TO INVEST vides a wide range of services including
IN RAS AL Unlimited support from the political ship supply, warehousing, loading and
KHAIMAH leadership to the real investment initi- unloading, as well as a number of other
atives where local and federal govern- important marine ports equipped with
Studies and statistics confirm that RAK economy is one of ment agencies have been authorized the latest equipment, in addition to In-
the fastest growing economies in the region and the most to overcome all difficulties that may ternational airport of Ras Al-Khaimah
stable, that has been able to overcome the successive im- face investors in all stages of their busi- which is located in the center of the
pacts of developments and events to achieve positive and nesses, in addition to security stabili- city, only 10 minutes away from the in-
stable growth rates higher than most countries in the region ty, which enhances their presence as dustrial areas that allow the investor to
and is expected to maintain the momentum of this growth a mature and developed market with benefit from incentives and benefits.
in the coming period. Hereunder we give you 10 reasons for investment incentives and full tax ex-
investing in Ras Al Khaimah: emptions. 4

2 The Emirate adopts economic diver-
sification as a strategic option for
Ras Al Khaimah has a vital strategic ge- achieving sustainable economic devel-
ographical location and connects the opment. Which is concerned with the
rest of the UAE with a network of mod- development of sectors and economic
ern roads that facilitate the transition activities of all kinds, away from the
from and to it. It has long borders with sharp fluctuations that result from the
the Sultanate of Oman and connects concentration of growth in a particular
Ras Al Khaimah between the Far East sector as is the case for the oil sector in
markets and European and American the countries of the region.
markets. And in order to make the
most of this advantage, it continuously 5
upgrades its infrastructure, air facili-
ties and ports to be the central hub of The tourism sector is currently at the
the region. forefront of the economic sectors that
provide the best investment oppor-
3 tunities in the Emirate. It integrates
services in terms of transportation,
An advanced logistic network espe- hotels, tourism information and gov-
cially in the field of shipping in all its ernment support to the sector, as well
three types of air, land and sea. The
main port of the emirate (Sakr port)

20 | RAKBUSINESS

The RAK Chamber of Commerce INVESTMENTS
and Industry, the Economic De-
partment, the Investment Au- INSPIRATION
thority, the Free Zones Authority
and other government agencies Yousef Al Nuaimi
play a pivotal role in facilitating -------------------------------------------------------------
the procedures, providing incen- Bolt has one of the most apt names in ath-
tives and necessary support to the letic running. He is a Jamaican born ath-
success of the investment mis- letic sprinter, and was born on 21st August
sion in the emirate and empha- 1986 in Trelawny, Jamaica.
sizing the principle of partner- He has won three gold medals in his time
ship with investors in all stages for his performances in the World Games
of their business, as this comes as and Olympic Games. Currently the age
a reflection of the leadership's vi- of 24, Bolt is the youngest runner so far
sion of attracting and supporting to have won Olympic gold medals. Bolt
direct investment to the Emirate. is known for his practical jokes, and has
been in trouble for taking things a little
as parallel marketing which places the 8 too far at times.
emirate on the domestic, regional and He grew up with his parents in his home
international tourism map. The availability of land and warehous- town and his two siblings, a brother and
es for rental and ownership purposes sister. As a child he played football and
6 at competitive prices makes the deci- cricket with his brother, and his parents
sion to invest in the emirate a rational ran a greengrocers. After realising how
Encouragement of industrial invest- decision, in addition to lower operat- quick he was when running, Bolt turned
ment, especially in the manufacturing, ing costs. Business can be established his attention to running. He started his
building and construction industries. with a 20% reduction in capital expend- career at the William Knibb High School
Some industries in the Emirate have iture of companies and a net increase where he was coached by Pablo McNeil
succeeded in gaining international of 30% to 35% Compared to other emir- and Dwayne Barrett. In 2001, he won his
reputation and access to world-class ates and other countries in the region. first school championships where he re-
centers such as pharmaceutical, ce- ceived a medal for coming 2nd place in
ramics and cement industries, and 9 the 200 metre race, finishing in 22.04 sec-
other industries such as bricks, tiles, onds.
stones, marble, asphalt, plastics, Enhancing the financial sector, Later in 2001 Bolt participated in the CAR-
boats, dyes, aluminum, milk, poultry launching many large urban and tour- IFTA Games and represented Jamaica
and dates, The sector is still able to ism projects, and increasing growth and won a silver medal for his country in
offer more meaningful investment op- rates in the framework of sustainable both the 200 metre and 400 metre events.
portunities. It is also concentrated in and balanced development based on Here he set his personal best time for the
the extractive, construction and build- diversifying the economic base in or- 400 metre race distance of 48.28. As men-
ing materials industry mainly because der to create more job opportunities, tioned earlier, Bolt was a bit of a joker,
it is distinguished by the availability of maximize investment opportunities, and he ended up being arrested before
raw materials and its proximity to land diversify sources of income, enhance the CARIFTA even when he hid in a van in-
and sea export outlets. private sector participation in the stead of training.
development process, High levels of Later he set more records in the Central
7 productivity and performance and the American Championships with a time
provision of skilled and scientifically of 21.12 for the 200 metre distance, and
Other sectors such as real estate, agri- qualified manpower. again in the Caribbean Junior Champion-
culture, foodstuffs and services of var- ships with a time of 47.12 seconds. Bolt
ious types offer high return rates and a 10 was then awarded a place at Kingston after
healthy low-risk business environment the Prime Minister noticed his abilities,
that meets the needs of the emirate’s The emirate is a modern, safe and and he was able to train with the Jamaica
growing market as well as national, re- multicultural place where all modern Amateur Athletic Association.
gional and international prospects. medical and educational facilities are Bolt entered into the 2002 World Junior
available, as well as entertainment, Championships where he won the 200
shopping and exercise. And we don’t metre distance race. He then became the
overlook the continuous development youngest gold medal winner. In the same
of databases that provide investors in year he ran the relay as part of the Jamai-
cooperation with national statistical can team twice, and both times his team
centers and other federal and local au- won silver medals. He was then awarded
thorities. The availability of transpar- the IAAF Rising Star Award. The following
ency in laws and regulations, the ease year he won a gold medal for his efforts in
and speed of procedures, in addition the World Youth Championships at the
to the availability of advanced means age of just 17.
of communication and marketing ser-
vices. RAKBUSINESS | 21

Investment Directory - RAK Chamber of Commerce and Industry

KLUDI RAK that RAK Ceramics works on. Hence,
its strategic partnership with the Ger-
Ranks first in the UAE man company KLUDI pioneer of bath-
market sales room and kitchen equipment since
1926”
“KLUDI RAK” combines two ancient philosophies; a philosophy based
on quality and efficiency; and a philosophy based on elegance and luxury. Since its opening, KLUDI RAK has
This charming combination comes from Kludi as a high-quality German been covering all the needs of RAK
product on the one hand and Ras Al Khaimah Ceramics, the world’s larg- Ceramics projects and has begun to
est ceramics manufacturer. expand to cover the needs of the lo-
cal market in general and to export
In February 2008, His Highness By: Khawla Ibrahim and expand in the Arab world, North
Sheikh Saud Bin Saqr Al Qas- Africa and the Indian Subcontinent.
simiinaugurated the "KLUDI RAK" RAK Business Magazine met Mr. Imad Kokash “KLUDI RAK” German quality combined with UAE’s
to enhance the presence of the General Manager, who spoke with great enthusiasm about creative vision to provide the local and
industry sector in the emirate this pioneering brand, and its beginnings and presence in the regional market the best bathrooms
local and regional market saying “The launch came from the and kitchens facilities of a global
principle of the need to provide an integrated product that quality combines the elegant form
meets the growing demand for RAK Ceramics products. and the innovative technology.
In addition to the ceramic products, there was a need to have
mixers for bathrooms and kitchens. The company aimed to “KLUDI RAK” confirms its presence
fill this gap by seeking to provide an integrated service to its as a sign that upholds the criteria of
customers to achieve the quality and integration equation sustainability and conservation of
the environment, especially the ra-
tionalization of water consumption,
about this commitment “Eco-friendly
production methods and the intelli-
gent use of resources is a long-term
commitment for us. From the begin-

22 | RAKBUSINESS

MADE IN RAK

ning, the KLUDI RAK plant has been sales services, beside assigning a toll-free num- inent projects in the state of large hotels and
equipped with the latest technology” ber to connect directly with the team 800KLUDI hospitals, and cooperated with several govern-
– said Kokash in addition to direct chat service on the site of mental and private bodies in addition to several
the company (Live chat), to delight the largest large projects in Kingdom of Saudi Arabia, Bah-
Most of the machines are imported number of customers with distinction, where we rain, Egypt, Jordan, Lebanon and many other
from Germany, and we offer unique noted the amount of happiness already available countries”
water-conserving products that are in the working environment among employees,
environmentally friendly and adhere which is the most important motive for the de- “After this decade-long regional experience, I
to sustainability standards, from raw sire to provide such services. can confidently announce that we are in the top
materials used in manufacturing and position in the UAE market and seek to reach
conforming to European specifica- And the about the position of the “KLUDI RAK” this in the neighboring markets” - Kokash add-
tions, through manufacturing and in the kitchen and bathroom mixer market, Ko- ed.
production stages until the product kash confirmed: “Because our interest in quality
reaches the customer in its final form. and innovation lies in all the details of the prod- “We aspire to the future and enhance our am-
uct, KLUDI RAK has been able to take a promi- bition to work hard to increase production,
Kokash continued, “We at “KLUDI nent position in the local and regional market, keep pace with sustainability standards, tech-
RAK” are professionally and morally thus gaining the confidence of customers to be- nological developments and the general taste
committed towards our environment come their best choice thanks to its high quality of customers, we will also increase environment
and to future generations, we export products friendly products, as well as focus on diversity
ourselves as custodians of water con- and integration, in the year 2020, we are look-
servation, and as the global water flow It also earned the confidence of architects, in- ing forward to conveying our success story in
rate of the mixers is focused on 9 liters terior decoration experts and project planners. the UAE to the outside world, and we emphasize
per minute, we have committed our- It has become the most preferred choice of all the “Made in Ras Al Khaimah” brand as a luxury
selves in all of our products in the UAE commercial, industrial and residential sectors, brand across the world.” – Kokash addressing
In line with Emirates Standardiza- and confirmed its presence with the most prom- their future plans.
tion and Metrology Authority (ESMA)
guidelines at a water flow rate of 6 lit-
ers per minute,

“We have also committed ourselves to
the specific scale of public utility prod-
ucts that have pressure on consump-
tion such as commercial centers, pub-
lic parks and others with a flow rate of
2 liters per minute. Today we have the
highest conservation and rationaliza-
tion rate of water consumption in the
world up to 0.6 liters per minute.

And about the advantages of the prod- Imad Kokash - General Manager
ucts of “KLUDI RAK” said Kokash:
“KLUDI RAK” combines technical
versatility and high operational capa-
bility, and all its products are careful-
ly and meticulously tailored to local
high-end taste and follow the latest
technology developments and sus-
tainability standards. And compared
to traditional water saving products,
our products offer many advantages
such as superior protection from cal-
cification and ideal water flow rate
even in difficult conditions for water
flow, as well as anti-clogging and sedi-
mentation filters.

“KLUDI RAK” highly values the loyal-
ty and trust of its customers and has
sought to offer a ten-year double man-
ufacturing guarantee and eco-friendly
European parts, all supported by after

RAKBUSINESS | 23

BUSINESS

INTERVIEW | 24
DEVLOPMENT | 28
LEGAL CONSULTANT | 34

DIRECTOR OF PRIVATE SECURITY BUSINESS DEP. By: Zainab Shieha

SAEED AL-SHAMSI

PRIVATE SECURITY PROTECTS YOUR INVESTMENTS

The United Arab Emirates is keen to enhance its mote the highest levels of security and stability.
role in the development of the private security The idea of organizing private security compa-
sector to be more professional in order to meet nies stems from the importance that this aspect
the future security needs and achieve the gov- occupies in the police establishment, based on
ernment’s aspirations in making the country a the challenges and facing any risks in the inter-
center for attracting the best international ex- nal environment in order to reduce its negative
pertise and applying the best advanced practices impact, in response to the Ministry of Interior’s
that contribute to the safety of the society and its mission to build a social culture that believes
protection from crime and its causes and to pro- that respect for the law is an essential part of

24 | RAKBUSINESS

INTERVIEW

building a civilized society governed by jus- the quality of the services they provide where and stability enjoyed by the state through
tice and security. they continuously handle the observations their presence in various sectors and institu-
And in order to highlight the nature of the on the work of these companies in order to tions in the state and securing them to many
work of these companies and the role they promote improvement and development in sites as the first responder in the event site
play in training, qualifying and honing the the private security sector. and taking preliminary measures that limit
skills of the guards to be a key partner in the aggravation of the event through As well
driving economic growth and securing a safe 48 LICENSED SECURITY COMPANIES as securing the scene of the crime until the
and attractive environment for investments He said: “The management of the Private Se- arrival of the competent security services to
and capitals from the vision of “private secu- curity Business Department for the General the location of the event or the crime also
rity protects your investment” RAK business Directorate of Security Support in the Gen- contributes to the preventive part of their
met Mr. Lt. Col. Saied Obaid Al-Shamsi, Di- eral Secretariat of the Office of HH the Dep- side to reduce the occurrence of crimes” –
rector of the Private Security Business De- uty Prime Minister and Minister of Interior Al-Shamsi cleared .
partment at the General Directorate of Secu- has linked the management and concerned
rity Support at the General Secretariat of the companies in an integrated electronic sys- Al-Shamsi explained that, thanks to the co-
Office of HH the Deputy Prime Minister and tem that provides private security services in operation and joint communication with
Minister of Interior, who at the beginning of the country, including areas of training and the private security sector, and according
his speech stressed the keenness of the Min- licensing and subsequent follow-up and en- to the periodic reports, the sector witnessed
istry of Interior to follow the best practices hances the ease of Reports receipt and secu- excellence and continuous improvement
in regulating the private security sector to rity information in a way that achieve speed and achieved great satisfaction with the
assist criminal justice and law enforcement in response, communication and data avail- customers during the past few years and the
agencies to assist police and security agen- ability. It has worked on a number of pro- reasons for this excellence are due to the
cies in maintaining security and protecting jects and initiatives in coordination with great support of the police leadership of the
property and investments. the concerned authorities in the Ministry private security sector, as well as the coop-
of Interior, including the implementation eration of private security companies in the
Promote an attractive investment environ- of administrative services and operations implementation of Ministerial Resolution
ment to support its supervisory role in the private No. 557 of 2008 in the executive regulations
“The UAE is one of the world’s leading coun- security sector in the country and the work is of Federal Law No. 37 of 2006 on private se-
tries that has been keen to provide a safe underway to implement an initiative to pre- curity companies.
environment for investment, in accordance pare criteria for the classification of security
with the best standards to achieve the secu- companies, which reached 48 companies in CRIME PREVENTION AND PROMOTION
rity and safety of society” Al-Shamsi said, the State within the jurisdiction of the Min- OF COMMUNITY SAFETY
He stressed the importance of developing istry of the Interior. Al Shamsi pointed to the keenness of the
partnership between the ministry and var- management of the Private Security Busi-
ious private sector activities to promote The first responder at the event site ness Department to enhance the sense of
awareness and educate investment owners “Private security companies play an impor- reassurance through the presence of se-
and private companies to follow all instruc- tant role in maintaining the state of security curity personnel in vital sectors in order to
tions and directives issued by the Ministry provide a safe environment for the mem-
of the Interior to ensure the creation of a Al Shamsi praised the support of the su- bers of the community and institutions as a
stable security environment away from any preme police leadership in the Ministry first responder and supporter of the police
intrusions may impede the development of of Interior to the management of the forces, dedicated to an integrated doctrine
investments and economic and industrial Private Security Business Department, that is compatible with the rules and pillars
work in the State. which contributed to achieving many de- of security and safety, according to a mod-
velopmental achievements and achieving ern vision that achieves a qualitative leap
STRATEGIC PARTNERSHIP the vision and strategy of the Ministry In outstanding performance, contributes to
“The Ministry of Interior believes in the im- of the Interior which believes in the im- reducing crime and promoting the safety of
portance of developing the strategic part- portance of partnership with the private society.
nership between the Ministry and the com- security sector within the framework of Al-Shamsi called on all companies and
panies concerned in providing its security governance, which contribute to achiev- economic activities to rely on the licensed
services and complying with the standards ing discipline in accordance with the guards in the investment sector, which con-
and requirements approved by Federal Law best standards in order to achieve the tributes to reducing the occurrence of acci-
No. 37 of 2006 and its executive regulations security and safety of the community, to dents of various kinds such as fires, robber-
on the work of private security companies attain the quality and development in the ies and other crimes. It provides a safe and
which includes the terms of licensing for performance of security tasks in order to healthy environment for business develop-
the services it provides in the areas of gen- enhance safety and security in the coun- ment and investments, based on the ability
eral security guarding, funds transfer, cash try, and this thanks to cooperation and and expertise of the private security sector
centers, security of hotels, hospitals, air- partnership in this field with all parties to meet the challenges and all possibilities.
ports, banks, events, vital installations, se- concerned, and serves both sides of the Due to the efficiency of the knowledge and
curity training and other security activities.” relationship and encourages its conti- the types of specialized training received
Al-Shamsi added. nuity and growth, through the exchange by human cadres in the management of
He stressed the Ministry’s keenness on sub- of experiences and opinions, which will the organization of private security compa-
jecting private security companies to secu- contribute to the strengthening of gov- nies and in the National Security Institute
rity audits prior to their licensing. They are ernment efforts that seek deliberate steps through the prioritization of risks, its im-
monitored periodically after licensing and to achieve leadership in the service of our portance and classification.
practicing their activities, and evaluating society and strengthen the efforts of secu-
rity stability in the country.

RAKBUSINESS | 25

IN RAS AL KHAIMAH ...

DIVERSITY AND ECONOMIC STABILITY
TWO SIDES OF A SINGLE COIN

Dr. Abdel Halim Moheisen than the overall level of economic growth in the process of implementing the new
of the country, and the relative stability in licensing system to facilitate the establish-
Economic growth over the past years has these rates, as reflected by the decrease in ment of businesses and reduce the period
maintained its stability and sustained the standard deviation index of these rates of establishment to 15 minutes depending
momentum, despite the consequences of the emirate, which is 1.3 compared on the directions of the Government of
of global geopolitical developments and to the general level of the state Which is the UAE and the collection of fees for all
continues decline of global oil prices. This about 11 per cent of GDP in 2015. government agencies associated with the
is a result of the characteristics of the do- services of the Department, as well as the
mestic product that reflect its diversity and Within the framework of the stability of launch of renewal services via text messag-
openness to more than one sector com- the emirate’s economy, inflation rates es by the end of the first half of 2018, the
pared with many economies in the region have maintained stability during the past department is also launching two initia-
and the state. In general, over the past five years, reaching 2.3% during the period tives to facilitate business - licensing and
years there has been no significant change 2010 to 2015, and even this rate declined outsourcing in the first quarter of 2018.
in the structure of GDP, as the industrial slightly by about 0.4% in 2016. Food and In addition, the Department is working to
manufacturing sector continued to ac- transport services were among the com- launch optional health insurance services
quire about 30% of GDP, taking into con- modity groups that declined significantly for businesses, which will be an insurance
sideration the industrial sector, in both in 2016, while prices of educational servic- umbrella for private sector workers and
its terms of transformation and extrac- es, restaurants and hotels rose sharply. their families, thus supporting economic
tion, this ratio rises to about 36% of GDP. development. The department will soon
While the other sectors that contributed The inflation rates referred to above, launch a promotional system for tomor-
most were the construction and real estate whether in 2016 or during the period 2010- row’s licenses in partnership with the pri-
sectors and then the trade sector. The con- 2015, are within the normal rates. The vate sector. While at the level of internal
tribution of the industrial manufacturing “natural rates of inflation” can be said ac- operations improvement, the Department
sector in the emirate is much higher than cording to most measures and economic will launch the second phase of “Boabati”
the average contribution of this sector at studies, and they constitute an important in the fourth quarter of this year, which
the state level, while the contribution of incentive for doing business without bur- will increase the efficiency of internal op-
the real estate and construction sectors dening the consumer. erations and reduce costs by 80%.
was much higher. Free zones in the emir-
ate contribute 15 to 16% of GDP.

The economy of Ras Al Khaimah is one Efforts to preserve diversity and econom- The Department is also working on con-
of the most diversified in the region, with ic stability are further enhanced by the tinuous communication with the busi-
an estimated 67% in 2015 compared to use of the emirate’s unique geographical ness community and their views on the
56% for the country, according to the 2015 position and important location in the business environment for continuous im-
GDP. This diversity has been the main fac- regional and global supply chain. Trade, provement. In this regard, the Department
tor in stabilizing the relative growth rates transport and logistics sectors are seen as has initiated the development of the Busi-
achieved by the emirate compared with a reliable target sectors to make the emirate ness Environment Index, which is issued
number of economies in the region, the a distinct commercial and service center quarterly. This indicator measures the
emirate is looking at economic diversifica- in the region. It is hoped that the emirate assessment of business owners and their
tion as a strategic option that is essential will become a global platform for domes- satisfaction with the business environ-
for achieving sustainable economic devel- tic and foreign trade, given the network ment in the Emirate. The Department has
opment. Therefore, the government has of established and diverse trade relations prepared a special form for the revoked
continued to develop economic sectors it possesses or seeks to form in the future. licenses owners to identify the reasons
and activities of all kinds in order to pro- for cancellation of these licenses and the
mote development opportunities and sus- In this context, the Department of Eco- challenges and difficulties encountered in
tain them away from the high volatility re- nomic Development (DED) in Ras Al order to better understand the nature and
sulting from the concentration of growth Khaimah, as the main authority in the field areas of improvement in the field of sup-
in a particular and specific sector as is the of sustainable economic development, port and development of business in the
case for the oil sector in the countries of looks forward to continuing to improve emirate, naturally the results of previous
the region, in this contest, the tourism sec- the business environment by rationalizing indicators are discussed at the highest lev-
tor is a top concern. Economic diversifica- the cost of starting a business and reduc- els in order to take the necessary conclu-
tion contributed to two important issues: ing the procedures required to issue and sions and recommendations.
achieving higher economic growth rates renew commercial licenses, it is currently

26 | RAKBUSINESS

OPNION

Low inflation rates support economic
development in the emirate

The Consumer Price Index (CPI) The consumer price index was calculated on the basis of the year 2014. The
is a statistical indicator that reflects Center depended in calculation of the consumer price index on the new version
the relative change in prices of goods of the basket of goods and services launched by the Federal Authority for Com-
and services that represent private petitiveness and Statistics since 2016, which contained 1200 commodities and
consumption in the economy over a services classified in 12 major expenditure groups as per the International clas-
period of time called the comparison sification "Classification of Individual Consumption by Purpose" as part of the
period, compared to another period Center's efforts to build an advanced statistical system in the Emirate.
called the base period. Its impor-
tance is a central tool for measuring Major Expenditure 2010 2011 2012 2013 2014 2015 2016 2017
consumer price change directly and General Index 91.99 94.78 94.78 94.78 100.0 103.01 102.60 46.104
is an important reference for deci- Change Percentage 2.22 3.03 2.5 1.37 1.54 3.01 (0.4) 1.81
sion-makers in the public and pri-
vate sectors in making investment 7102 -0102 ‫الرقم القياسي ِلسعار المستهلك‬
decisions and economic policy-mak-
ing. In general, inflation rates in the
Emirate of Ras Al Khaimah are low
and economically acceptable, and
are a source of satisfaction with the
specialists in the economic affairs
in the emirate, as shown by the low
rates of change in the consumer
price index during the period 2010-
2017.

For the year 2017, the estimates of It is noteworthy that the country’s consumer price index increased by 1.6% in
RAK Center for Statistics & Studies 2016 compared to 2015, while the index in Ras Al Khaimah during the same pe-
shows that the annual inflation rate riod decreased by 0.4%. This indicates that inflation rates in the UAE in general
will be around 1.8% for the year as and Ras Al Khaimah in particular are low and support the development process.
a whole based on data for the first As shown in Figure 2, despite the high rate of inflation in 2015 by about 4% and
three quarters of the year. The ex- 3% at the level of the State and Emirate, respectively, it has recorded a decline
pected increase in 2017 as a whole of about 1.6% at the level of the state and about -0.4% in the Emirate of Ras Al
is attributed to the rise in the price Khaimah in 2016.
indices of a variety of goods and ser- The rise in the general index of prices in the emirate during the year 2015 is
vices (including personal care and mainly due to the increase in the indices of the prices of alcoholic beverages and
accessories, auto insurance, gifts, tobacco, education, housing, water, electricity and gas, which have a combined
watches, etc.) by 11%, followed by relative weight of about 30%.
restaurants and hotels by 4.8% and
education by 4.4%. 7102 -0102 ‫معدل التغير الســـنوي في الرقم القياسي لأسعار لمستهلك‬

As shown in Table (1) and Figure (1)
below, the inflation rate was nega-
tive (-0.4%) in 2016, which means a
decrease in the general level of pric-
es despite a slight rise in the prices
of some goods and services. The
low level of inflation during the year
2016 was due to prices drop in the
transportation sector by about 5%,
food and non-alcoholic beverages by
2.7%, alcoholic beverages and tobac-
co by 1.1%, while the highest group
was education group by 3.8% and res-
taurants and hotels by 3.3%.

RAKDCA seeks to maintain the promo-
tion of open skies policy, which aims to
promote the growth of domestic and
international aviation in the Emirate

RAKDCA... and safety of air space, air traffic and
air navigation, and to comply with the
PROGRESS IS PARALLEL TO THE TOURISM AND highest quality standards under the
ECONOMIC DEVELOPMENT IN RAS AL KHAIMAH guidance of the General Civil Aviation
Authority in the State with the aim
The Department Since established in 1976 under the Civil Aviation in Ras Al Khaimah seeks of providing the best aviation servic-
systematically wise leadership of His Highness to raise the air transport sector in the es while adhering to the security and
coordinates and Sheikh Saud Bin Saqr Al Qassimi, Northern Emirates to new horizons of safety of the country’s territory and
cooperates with Member of the Supreme Council and excellence, in conjunction with sup- supporting the aviation and aerospace
federal and local Ruler of Ras Al Khaimah, and under porting the ambitious development industry.
government author- the directives of His Highness Sheikh plans of the Emirate. The Department of Civil Aviation in
ities in relation to Mohammed Bin Saud Bin Saqr Al Qa- the Emirate administers the admin-
civil aviation matter simi, Crown Prince of Ras Al Khaimah The Department of Civil Aviation in istrative and technical aspects of Ras
and Chairman of the Executive Coun- Ras Al Khaimah seeks to maintain the Al Khaimah International Airport and
cil, to develop the civil aviation sec- promotion of open skies policy, which issues the initial approvals for compa-
tor in Ras Al Khaimah and keep up aims to promote the growth of domes- nies wishing to conduct civil aviation
with the tremendous development tic and international aviation in the activities for companies wishing to
witnessed by this sector locally and emirate on an equal base with the glob- operate through the airport. It also su-
internationally, and follow up all the al civil aviation industry. pervises all employees in the airport in
projects and investments in the indus- the field of safety and security, and to
try. As the emirate of Ras Al Khaimah The Department oversees civil aviation ensure the safety of the measures that
continues to assert itself as a leading and its affairs regulation in the Emir- keeps the security of the airport area
tourist destination, The Department of ate in order to maintain the security and the functioning of the airport not
affected, and that it properly address-
es the safety of air navigation and the
functioning of its devices, It handles
negotiations with airlines, follows
up the affairs of travel and air freight
agencies, provides the necessary facil-
ities and acts as a link between them
and the Government in a manner that
does not conflict with the laws applied
in the State.
The Department systematically coor-

28 | RAKBUSINESS

dinates and cooperates with federal and local DEVELOPOMENT
government authorities in relation to civil avia-
tion matters, coordinates with all partners in the CORPORATE SECURITY..THE NEXT DIMENSION
Emirate to develop the tourism and travel sector,
promote economic growth in the emirate and Last decade has seen total transformation of businesses practices
create added value for both domestic and foreign and personal preferences. Today, we do many things much faster,
investors to promote the emirate as a destination different and easier than we did few years back. The convenience of
for tourists and investments, both alike. grocery shopping to travel plans over few clicks seem to have lost the
excitement and are now becoming the norms. Sooner than we can
The Chamber is in the process of entering into plan or prepare; the role of human behind the steering wheels would
further agreements to enhance the presence of change from driving a mechanical luxury to effective use of travel
Ras Al Khaimah as a landmark in the aviation in- time yet, it will not stop there and virtual meetings on the move will
dustry and to consolidate its position as a distinc- become a practice.
tive tourist destination, and to further enhance Amidst all the above; the risk landscape is changing dynamically and
its economic growth, including the agreement Corporate Security as business support function is undergoing and
with “Air Arabia” to accordingly become the offi- shall continue to change from broader disciplines such as Asset Pro-
cial carrier of the emirate and provide its services tection, Loss Prevention & Risk Management to Speciality Domains
from Ras Al Khaimah International Airport. The like Crises Management, Business Continuity and Information Secu-
move has contributed in linking the emirate to rity . This mandates a paradigm shift in how the business leadership
many of the region’s most dynamic destinations. looks at Security as a cost centre, and also for security professionals
It also aims to attract more regional and interna- as to, how they design, plan, implement and manage the continual
tional airlines to the airport, and the region in improvement of security function integrated within each business
general, to connect Ras Al Khaimah with a num- division. The desired scope of corporate security will be beyond the
ber of vital destinations in the region and to in- contemporary building design, technological hardware and articulat-
crease the number of flights that residents of the ed policies evaluated through violations and audits.
emirate and neighboring Northern Emirates can The new regime will embed security into every process and investment
access. decision for resilience of projects and products or services to safeguard
In the year 2017, Ras Al Khaimah International against complexities, inter dependencies and possible interruptions.
Airport recorded a remarkable increase in the The need is to identify, develop and provide a rational framework that
number of passengers by 9%, after its facilities, covers all aspects of business planning described below:
departments, buildings and equipment have wit- ֺֺ Financial: The costs incurred to maintain security architecture and
nessed a development and modernization that
keeps pace with the development of the air trans- also the measures to capture economic impact of actions taken,
port industry, Ras Al Khaimah confirms once missed and forecasted to financial objectives
again its presence as an international destination ֺֺ Customer: Measure taken for identification of market and custom-
starting from its airport flights to different conti- er segments where the business competes and delivers products
nents and cities of the world. and services.
The opening of the aircraft shredding and re- ֺֺ Internal Business Processes: The ability of critical business pro-
cycling center at Ras Al Khaimah International cesses to withstand an interruption, mitigate the loss event and
Airport, in cooperation with Falcon Aircraft Recy- recover to a standpoint where continuity of business operation is
cling, is the first of its kind in the region to cut and ensured.
recycle aircraft that have exited the air transport ֺֺ Learning & Growth: The ability of business function to develop and
service, where the center cuts all types of aircrafts diversify competencies commensurate with risk matrices and in-
in an regulated manner and then the pieces are tricacies of each business function.
disposed of in a way that is not allowed to return There are myriad approaches that a security leader can take to en-
to the civil aviation industry again, and the com- sure a future fit, business driven and responsive security unit that
pany is in the process of coordination to obtain compliments resilience to each organizational function and is seen
the necessary approvals to provide aircraft main- as profit protection team. The essence of security strategy should be
tenance services to provide customers with many integration and application of security policies within the business
aircraft maintenance and repair services. framework and a continual exploration for refinement, up gradation
In keeping with its commitment to quality man- and practicing of contingency plans to rationalise the intangible con-
agement standards and continuous develop- tributions towards brand development, market share and organic
ment, the department has been keen to obtain business growth.
the ISO 9001 - 2008 for Quality Management Sys-
tem, by the British Institute of Standards “BSI”, in RAKBUSINESS | 29
line with the strategy of the Government of Ras Al
Khaimah to enhance performance in government
departments and agencies, in parallel with inter-
national best practices.

VAT Should I be registered fSohroVuAldT?I be registered for VAT? How do I regist

DEFINITION, AND APPLICA-
TION MECHANISMS AND
CONTROLS

If your taxable turnover - theIvf aylouuerotfatxhaeble turnover - the value of the The VAT registrati

goods and services that you sguopopdlsy aanndd saenryvices that you supply and any group registration

imports, but excluding any exiemmppotrtssu, pbpultieesxcluding any exempt supplies via the online por

(e.g. certain financial services(ea.ngd. cleifretain financial services and life website. Please re

insurance, some property traninssaucrtaionncse, some property transactions section on the e-S

and local passenger transporat)n-deloxcceael dpsassenger transport) - exceeds more information

AED 375,000 in a 12 month pAerEiDod3,7o5r,0if0y0ouin a 12 month period, or if you

expect your taxable turnoveretxopeexccteyeodur taxable turnover to exceed

UAE has started implementing the collection of VAT AED 375,000 in the next 30 Can I formdAaEyDs, 3y7o5u,0a0re0 in the next 30 days, you aaretax group?Can I form a tax group?
in January under the Federal Law Decree issued by the required to register for VAT.
President of the United Arab Emirates, Sheikh Khalifa required to register for VAT.
Bin Zayed Al Nahyan in this regards.
In view of the fact that this tax is imposed for the first If your taxable turnover, or exIpf eyonsuerstawxhaibclhe turnover, oRreleaxtpeednbsuessinwehsiscehs that shareRelated businesses that share
time in the countries of the region, we present hereun- you incur that are subject to VyoAuT,iinscluerssthtahtaanre subjecet ctoonVoAmT,icis, fliensasntchiaalnand reguleactonryomtieics, financial and regulatory t
der its detailed definition and the mechanisms of im- AED 375,000, but more thanAAEEDD317857,500000,, but more t(heaitnheArEiDn l1a8w7,,5s0h0ar, eholding o(reviothteinrgin law, shareholding or voting
plementation considering the various procedural, legal you can register for VAT voluynotauriclya.n register for VAT rvioglhutnst)amrilayy. be able to registerrigahstsa)tmaxay be able to register as a
and technical aspects associated herewith.
In this context, we will attempt to explain some of the E-group, if they have an establigshromuepn,tifinthey have an establishmen
basic concepts associated with the application of this
tax, to be followed in a subsequent editions a thorough the UAE and are legal persontshuenUdAeEr and are legal persons unde
analysis of their implications and its economic impacts. common control. Transactioncsommon control. Transactions

AED AED between the group membersbaerteween the agnrdouopnemmememRbEebGresIrSaTorRfeAthTeI
disregarded and one memberdiosfrethgearded
375,000 /
12 group, called a ‘representativgeroup, called a ‘representative
member’, will file a
consolidamteedmVbAeTr’, will file a caocntiVsvAoitTliiedRsaEGtoeIfSdtThVReAA
375,000 /return covering the activitiesroeftuthrne covering the
12 group. Furthermore, all suppglireosump.adFeurthermore, all supplies ma

or received by any of the tax ogrroreucpeived by any of the tax group

member will be treated as mamdeembbyetrhwe ill be treated as made by

representative member of theregprroeuspen–tative member of the group

although all members of the galrtohuopugwhillall members of the group w

remain jointly and severally liraebmleafinorjointly and severally liable fo

VAT debts. VAT debts.

What records will I neeWdhtaotkreeecpo?rds will I need to keep? When and how
and what will b
Records need to be kept for aRtelceoarsdts5need to be kept for at least 5
years. You will have to keep:years. You will have to keep: You will normally
or monthly tax pe
• records of all supplies and i•mrpeocrotrsdosfof all supplies and imports of annual turnover, b
shorter or longer
goods and services; goods and services; that to be approp
required to file the
WHAT IS VAT? • all tax invoices and tax cred•itanllottaexs iannvdoices and tax credit notes and period by the 28th
Value Added Tax (or VAT) is an indirect alternative documents receivaeldte; rnative documents received; following the end
tax. Referred to as a type of consump- working day if the
tion tax and it’s one of the most com- • all tax invoices and tax cred•itanllottaexs iannvdoices and tax credit notes and a national holiday
mon types found worldwide. Where alternative documents issueda; lternative documents issued;
applied in more than 150 countries, Tax returns will be
including all EU member states, and • records of goods and servic•ersetchoartdhsaovfegoods and services that have through the FTA p
imposed on most of the supplies of been disposed of or used forbmeaetntedrisspnoosted of or used for matters not
goods and services that are purchased related to the business, detairlienlgattehdetVoAtThe business, detailing the VAT On each return, yo
and sold, and on each and every step of paid on those goods and servpiaceids;on those goods and services;
the ‘supply chain’. • The value of sta
Generally, The ultimate consumer • records of goods and servic•ersepcuorcdhsaosfegdoods and services purchased made in the tax
bears the VAT cost while Businesses tax charged, per
collect and calculate the tax, in a way for which the input tax was nfootr which the input tax was not
acting as a tax collector on behalf of
the government, while in some cases deducted; deducted;
it may also receive a refund from the
government on tax that it has paid to • records of exported goods •anredcsoerrdvsicoefse; xported goods and services;
its suppliers, consequently, The net re- and and
sult is that tax receipts to government
reflect the ‘value add’ throughout the • records of adjustments or c•orreeccotriodnssof adjustments or corrections • The value of zer
stages of the supply chain.
made to accounts or tax invomiceasd.e to accountsMoretoavxeirn,vloikieceasl.l businesses, Myoourewoivllehr,alvikee all businesstehse, ytoaxu pweilrliohdav. e

rInecaodrdditoior na,cycoouunwtiwll hniecehdsthoowkrIneesec:apodrdadiVtoiAorTna,cycoouunwtiwldtalocohntickeicvueehiemdtspieethosnao.ctwkscSesotue:hupcanhtatirrnVeegcAlaoTrteredctsooradynsoduaddatrnoocodbtcckuiuvuesmiemitnpieenssna.stctsscS,otuhucanhttirrneegclaorteredctsoo•radynTtsoadhxuaedrnpvodbeacurluiusomiendeeo. nsfstesx, e

• output tax due on taxable s•upopultipeus;t tax due onintcaluxdabe:le supplies; include:

• output tax due on taxable s•upopultipeust tax fdourevoian• ttbahacaexclaaroebnuvlcneeetrssssu;ehpecpehltiaearsgned profit an•d bloaslasnce sheet and profit and loss
accounted for via the reverseacchcaorugneted accounts;

mechanism; mechanism; • records of wages and salari•esr;ecords of wages and Hsaolawriecsa; n I pay a

• output tax due after the cor•reocuttipountotfax due af•terrecthoerdcsoorrfefcixtieodnaosfsets; • records of fixed assets;
iiiacnnmonppyrpuuroeettrcrtttrtaasoi;oxxransrrneeoodccrfooaavvdneeyjrruaaesbbtrllmreeoeroansfnttoessr;rua••tphdpiiaciejnnmluonippesyrpuurstoemettorcrttterrtaasoin;oxxrtanssrrn.eeoodccrfooaavvdneeyjrru•aaesbbtiie(rrnnllmeirneenvvocdeceerooalnsnnfournttdttodfesoossr;iraurrnonayytpghdyfprseqjsetlruitaecuesotolasteecmrnvmkodta-erisectnnionatettnussts.dna.atxnsstpdraeetvrleaai•moltuedieri(enneeidnnnvvascdctee)tnosolnndoaurdtttdfooastialrrnhlonyygeyfrsqsetrtaecuotolaeecrnvmkdta-isectnionatetnustsdna.atxtaTmhtnssohpahtpdeeravpemeectevrlFrlheyeaaaiTamaokltfAanunedeoere,idreesnaasvm-ot)tnaiDpsoandsaanierteytuah-htamlmaDhlasmeeitbrenh
•
•

More information

the e-Dirham web

30 | RAKBUSINESS

VAT

VAT differs from the sales tax (one of the consump-
tion taxes types), as the latter is only imposed on
transactions involving goods, and only on the final
stage sales to the customer, while VAT is imposed on
both goods and services and charged throughout the
entire supply chain including the stage of the final
sale. VAT is also imposed on the imports of goods
and services to ensure equal opportunities for the
local suppliers that trades in the same commodities
and services

ter? How do I register? Is there any input tax thaItsIthere any input tax that I
cannot reclaim? cannot reclaim?
ion form andThteaxVAT registration form and tax
n form are agvaroiluabpleregistration form are available Yes. The VAT incurred on Yes. The VAT incurred on SALES TAX RATES
rtal on the FvTAia the online portal on the FTA VAT rates are divided into three main sec-
efer to the Dwoewbnsiltoea.dPslease refer to the Downloads entertainment expenses, moteonrtertainment expenses, motor tions:
Services porsteacl tfioorn on the e-Services portal for A. The overall ratio
vehicles used for personal puvrephoisceless used for personal purposes Which is 5% and is imposed on most
on how to rmegoirseteinr.formation on how to register. goods and services
and employee-related expensaensd employee-related expenses
B. Zero percentage
cannot be reclaimed. cannot be reclaimed. It is imposed on some types of goods and
services whose producers are entitled to
ties register and claim VAT refunds paid by
them on input and production require-
g ments.
Zero percentage will be imposed on the
tax E-SERVICEHow does VAT work? How does VAT work? following major categories of supplies:
Once you have registered forOVnAcTe, you have registered for VAT, ֺֺ Exports of goods and services to out-
ne-trSinERVICE you will have to charge VAT (yoouutpwuitll have to charge VAT (output
side the GCC.
eION REGISTRATIONutanxle) sosnththeey supplies that you tmaxa)keo,n the supplies that you make, ֺֺ International transport and related
are exempt or zeruon-lreastsedth, ey are exempt or zero-rated,
supplies.
and account for the VAT you acnhdaragcecount for the VAT you charge ֺֺ Supply of some means of maritime, air

AATTION VAT REGISTRATIOtmNoaydoeutroctuhsetoFmTeAr.s on tax retutronysour customers on tax returns to and land transport (eg: aircrafts and
You will bemaabdlee ttoo the FTA. You will be able ships).
ֺֺ Certain investments in precious metals
ade reclaim the VAT you pay to yoreucrlaim the VAT you pay to your (eg: gold and silver with a purity per-
centage of 99%)
suppliers (input tax) on your stuaxppliers (input tax) on your tax ֺֺ Newly constructed residential proper-
ties which are supplied for the first time
the returns, provided that you harveetuartnasx, provided that you have a tax within 3 years of establishment.
ֺֺ Basic / specific services in the educa-
p – invoice or other evidence of tihnevoice or other evidence of the tion sector and associated goods and
services.
will supply or import and have pasiudptphley or import and have paid the ֺֺ Basic / specific services in the health
sector and related goods and services.
or VAT you wish to reclaim. VAT you wish to reclaim.
C.Full exemption:
will I file tWaxhernetaunrdnshow will I file tax returns When will I have to pay When will I have to pay These are some types of goods and servic-
be shown oanndthwemha?t will be shown on them? any tax due? any tax due? es for which no tax is imposed, and the
producers are not entitled to claim tax re-
be allocatedYoauqwuiallrtneorlrymally be allocated a quarterly You will be required to pay anYyoutawx ill be required to pay any tax funds. The exempted categories include:
ֺֺ Supply of some financial services (to be
eriod accordoinrgmtoonytohluyr tax period according to your due by the due date for eachdrueetubrny –the due date for each return –
explained in tax legislation).
but the FTA amnanyualltouwrnaover, but the FTA may allow a i.e. by the 28th day of the moin.et.hby the 28th day of the month ֺֺ Residential properties.
ֺֺ Bare / empty land.
tax period isfhitocrtoenrsoidrelorsnger tax period if it considers following the end of each taxfopleloriwoding the end of each tax period ֺֺ Local passenger transport.

priate. You wthilal tbteo be appropriate. You will be (or on the next working day i(fotrheon the next working day if the RAKBUSINESS | 31

e tax returnrfeoqrueiraecdhttoaxfile the tax return for each tax normal due date falls on a nantiornmalal due date falls on a national

h day of thepmeroiondthby the 28th day of the month holiday or weekend). holiday or weekend).

d of it (or onftohlelonweixntg the end of it (or on the next

e normal duewodraktiengfadllsayonif the normal due date falls on

y or weekenda)n. ational holiday o•rTwheevkaelnude)o. f any reverse ch•arTgheedvalue of any reverse charged

e filed electrToanxicreatlluyrns will be filseudpeplleiecstrroencieciavlelyd in the tax pseurpiopdli.es received in the tax period.

portal. through the FTA po•rTtahle. value of expenses incur•reTdheinvtahleue of expenses incurred in the

ou will needOtno eshacohwr:eturn, you wtaixll pneereidodtowshheorwe :you seek totarexcpoevreirod where you seek to recover
tsatxanpdeairrneiropdcdou-rvtaaettnaredaxdbtaslhenuedptoaptxuhli.teepsaumt ount of input tax and the amount of
andard-rated• sTuhpepvliaelsue of recoverable tax.
period and thmeaoduetpinuthe
r Emirate. tax charged, per •EmThireatteo.tal amount of tax due• aTnhde total amount of tax due and
sup•plTtihehesemtvaaaxldupeeeironifodze. ro-rpraeetceroidovdseu.rapbplleieisnpmuatdteaxinfor the rteacxoverable input tax for the tax
ro-rated period.
e

empt supplie•sTmheadvealiunetohef exem• pTtathxseuptpeaprxiloipedas.ymabaldee(oinr trheepayab•leTta)hxfeoptreatrxhioepda.yable (or repayable) for the
tax period.

any tax duHe?ow can I pay any tax due? When will I receive any rWephaeynmwenillt I receive any repayment
that I claim? that I claim?
ber of paymeTnhtere are a number of payment

will be availmabelcehanisms that will be available E-DIRHAWhere you are in a repaymenWt phoesreitiyoonu, are in a repayment position,
nt of any taxtotomake a payment of any tax to
the FTA will inform you that atnhye FTA will inform you that any
E-DIRHAham. If you tdhoenFoTtA, via e-Dirham. If you do not repayment claim that you markeephayasmbeenetnclaim that you make has been
approved or rejected within 2a0ppwroorvkeidngor rejected within 20 working
m account plehaasvee an e-Dirham account please days. On occasion, however, dthaeysF. TOAn occasion, however, the FTA
may inform you that considermataioyninofof rtmheyou that consideration of the
early as possaipbplel.y for one as early as possible. claim will take longer than thcalta. im will take longer than that.

is availableMoonre information is available on

bsite. the e-Dirham website.

All companies must document
their financial transactions
to ensure that their financial
records are accurate and
regularly updated

The taxable person GENERAL REQUIREMENTS AND CONTROLS exceed the minimum income (which is doc-
must keep the tax 1. Companies are required to document the umented through their financial records)
invoices issued must register in the VAT system. Companies
and received for at revenues and costs of their business, in that do not have to register for the VAT sys-
addition to the value added tax associated tem should keep their financial records on a
least 5 years with those revenues and costs. Registered regular basis, allowing them to check wheth-
The tax shall be companies will add value added tax to all er they must register for tax purposes.
calculated on the their customers according to the prevailing 7. Companies are required to maintain a set of
total value of the tax rate. VAT should be paid on the value of trade records that allow the Government to
goods, including goods and services purchased from suppli- verify the authenticity of their transactions.
customs fees ers, and the difference between the tax col- 8. If the amount of VAT collected by the compa-
Companies are sub- lected and paid is the one paid to or refund- ny from its customers exceeds the amount
ject to tax (the final ed to the government. paid to its suppliers, the company shall pay
consumer cannot 2. Companies must register for VAT if their tax- the difference to the government, however if
request a refund of able supplies (revenues) and imports from the value-added tax it pays is greater than the
abroad exceed the mandatory registration value of the tax it receives, then the company
input tax) limit of AED 375,000. is entitled to a refund.
Fines and penalties 3. Companies may register for value added tax 9. Companies need to make some changes
for non-compliance optionally if their taxable supplies and im- in their core operations, financial manage-
will be imposed to ports from abroad are less than the manda- ment, methods of calculations and account-
ensure compliance tory registration threshold, but the optional ing records, as well as the technical means
registration limit exceeds AED 187,500. they use, as well as changes in their human
with tax laws 4. Any company may register optionally if its resources (such as accountants and tax ad-
expenses exceed the optional registration visers)
32 | RAKBUSINESS limit. This opportunity has been put in place 10. It is essential that companies seek to align
to opt-in to start-up companies that do not their business with government reporting
have income from VAT registration. and compliance requirements
5. All companies in the United Arab Emirates 11. VAT Declarations are to be submitted by
must document their financial transactions the taxable to the Federal Tax Authority on
to ensure that their financial records are ac- regular basis (every three months or shorter
curate and regularly updated. period if the Commission decides) within 28
6. Companies whose business transactions

VAT

days from the end of the tax period in accordance A simplified example to son. Conversely, if the expenses relate to non-tax-
with the procedures specified in the tax legisla- illustrate the VAT able supplies (tax-free supplies), the registered
tion. Electronically using the electronic services person cannot recover the input tax.
system. The farmer cultivates the 23. In some cases, some of the registered person’s
12. Companies shall keep records that allow the Fed- cotton plant, which is expenses may be associated with taxable sup-
eral Tax Authority to obtain details of its activities harvested and sold to a plies and non-taxable supplies (such as financial
and business transactions. factory services sector activities). In this case, the regis-
13. The taxable person must keep the tax invoices is- tered person must divide the input tax between
sued and received for at least 5 years. The factory processes taxable and non-taxable supplies.
14. The location of supply shall be determined on cotton and manufacture 24. Companies are expected to use the input tax (re-
the basis of whether the supply has occurred of clothes to sell it to the coverable to total ratio) as the basis for the distri-
within the United Arab Emirates (in which case bution of the input tax, although there will be the
the provisions of the Value Added Tax Law apply) retailer possibility of using other fair methods if agreed
or whether it was outside the State for purposes The factory collects the with the Commission.
of value added tax. tax from the retailer for 25. Fines and penalties for non-compliance will be
15. With regard to the supply of goods, the supply lo- the benefit of the gov- imposed to ensure compliance with tax laws.
cation is where the goods are located at the time ernment and the factory Which include:
of supply, with special rules for certain supplies recovers the tax it paid to • The person does not register the tax when he is
(eg: water, energy and cross-border supplies).
16. With regard to the supply of services, the place of the farmer obliged to do so.
supply is the supplier’s place of residence with • The taxpayer does not submit the tax declara-
special rules for certain supplies (eg cross-border Clothes are stored in tion or payment within the specified period.
procurement). stores and displayed to • The person does not keep the required records
17. VAT is worth the addition of customs duties paid in the issued tax legislation.
by imported goods and cannot be deducted. The the consumer • Tax evasion offenses where the person inten-
tax shall be calculated on the total value of the The consumer buys new tionally acts in violation of the provisions of the
goods, including customs fees. issued tax legislation.
18. VAT application for properties will depend on be- clothes 26. VAT can be deducted from the expenses incurred
ing either commercial or residential. Commer- Retail stores collect the by companies in the following cases:
cial property supply (sale or lease) will be subject tax from the consumer for • Companies are subject to tax (the final con-
to the basic rate of VAT (5%). the benefit of the govern- sumer cannot request a refund of input tax).
19. Residential properties are exempted from VAT in ment and recover the tax • The tax is properly charged (unjustified / incor-
general, and this ensures that VAT does not con- rect VAT cannot be refunded).
stitute a non-refundable cost to people who pur- it paid to the factory • Companies should keep documents showing
chase their own properties. At the same time, to The final consumer is the VAT paid (tax bill).
ensure that VAT can be recovered by the real es- • Goods or services obtained will be used or in-
tate developer on the construction of residential one who bears the tax tended to be used for taxable supplies.
properties, the first supply of residential proper- • Refund of input tax may be requested only on
ties within 3 years will be subject to zero. the amount paid or due to be paid before 6
20. Companies registered in VAT may reduce their months from the date of the supply payment.
obligations with respect to the output tax with 27. In general, government procurement is subject
the value of the VAT amount relating to the dead to value added tax. This ensures that government
debts that have been written off by the compa- agencies do not unfairly benefit from tax advan-
nies registered for VAT. tages when compared to private companies.
21. In order to avoid double taxation in the case of 28. Some purchases by government entities are ex-
the purchase of goods used by a registered per- cluded from the scope of the VAT if they are not
son from another person not registered for the competing with the private sector or are the only
purpose of resale, the registered person for the provider of such supplies. Some government
VAT may be charged the value added tax on sales agencies would have the right to recover value
of secondhand goods with reference to the differ- added tax, which was designed to prevent budget
ence between the purchase price and the selling problems and to standardize prices between in-
price (This is the profit margin). The value added ternal activities and outsourced activities.
tax to be calculated by the registered person shall 29. In respect of supplies to government entities, the
be included in the profit margin. procurement treatment will depend on the pro-
22. If a person registered for VAT carries the input tax curement itself, not the recipient / receiver of the
on his business expenses, he may recover the tax supply. Therefore, if the supply is taxable in the
in full if the expenses relate to taxable supplies or basic amount, the tax treatment will remain the
intended to be performed by the registered per- same even if the supply is to a government agency.

SOURCE: FEDERAL TAX AUTHORITY

RAKBUSINESS | 33

!

ONE-MAN COMPANY

AN EASY WAY TO ESTABLISH
YOUR OWN COMPANY

The law introduced a new form of companies in its articles no. (55, 154) that is the only-man
company. It development a mechanism to establish the same. The new law allowed a single
person (citizen) to establish a company totally owned by him without the need of any other
partner, while the previous law did not regulate or permit such form of companies.

Lawyer: Hanan Salem Al-Bayad Al-Shemili

Whereas, the law no. 2 of 2015 on com- its term or prior to achieving the purpose
mercial companies was adopted and stated in its memorandum of association,
enforced by the end of June 2015, giving he shall be liable to pay his obligations
the opportunity for various companies to from his own funds.
adjust their status in accordance with its
provisions before the end of July 2016. It Differences between one-man company
was implemented after extensive studies and sole proprietorship:
and deep consultations. There is a set of differences between each
The one-man company is a form of own- of one-man company and a Sole Proprie-
ership of economic projects guaranteed torship, some of which can be listed, as
by the new commercial company’s law in follows:
order to the exercise an economic activi- 1. A one-man company is a corporation
ty aimed at making a project. The owner with a legal personality independent of
of the company shall not be liable for its the personality of its owner or founder
obligations except by the amount of the – although it is an establish by only one
capital provided in its memorandum of partner/shareholder – it is subject to the
Association. The provisions of the legal to the companies act, and may be either a
form set forth in this law shall apply to it closed joint stock or limited liability com-
provided that it does not contradict with pany.
their nature. Unlike a Sole proprietorship, it does not
In terms of liquidation of termination of have an independent legal personality. It
this form of companies, the new law men- is followed by a personality of its owner
tioned several cases, such as the owner only and is not subject to the companies
decided to make such liquidation or de- act.
cided to suspend its activity, if its term is 2. The one-man company has an inde-
expired, or the purpose contained in the pendent appropriation estate, and the
memorandum of association is achieved. partner in this company is subject only
The company shall also dissolve upon the is partnership proportion in the compa-
death of its founder if the owner is a natu- ny. That is to say, it is a limited liability to
ral person unless otherwise, the heirs de- the amount of the company’s capital, al-
sire to continue with the adjustment of its though he is the sole partner.
status in accordance with the provisions Contrary to the Sole proprietorship, it
of this law. They shall choose the person does not have an independent appropri-
who will manage the company on their be- ation estate than the personality of its
half. The company shall dissolve upon the owner. He is liable for all the rights and
expiry of the legal personality if the owner obligations of the Enterprise and the
is a legal person. It should be noted here guarantor of all the creditors’ rights of the
that if the owner of the one-man compa- enterprise.
ny intended to liquidate it in bad faith, 3. Fields of activity of each are different;
suspends is activity prior of the expiry of the one-man company’s fields are the

34 | RAKBUSINESS

LEGAL CONSULTANT

The owner of the company shall not
be liable for its obligations except by
the amount of the capital provided
in its memorandum of Association

same areas of joint stock companies of companies projects the rest of the RAS AL KHAIMAH
and limited liability in terms of vol- owner’s money and makes it safe in ADVOCATE
ume of activity and capital. case the company suffered any losses.
As opposed to being a sole proprie- 0527319518 - 072336008
torship whose area of activity is not One of the advantages of this form of www.rakadvocates.com
specifically defined, as in a one-man companies is the ease of making de- [email protected]
company. cisions within the company, since the
owner in the one-man company has all
With respect to the characteristics the powers and authorities as the sole
of a one-man company, the most im- partner, and is not abound to the take
portant characteristic is the limited of consent of any person. For example,
liability of the owner. Such the lim- the owner has the ease to the transfer
ited liability means that the owner or merge with third parties without
is liable only with the amount of his much time and effort to convince
share in the capital of the company. In other partners, thus acceleration eco-
other words, the liability of the owner nomic growth.In a word, this form of
is limited before the third parties by companies is an excellent opportunity
the amount of capital resisted in the brought by the legislator to enable all
Memorandum of association and with national entrepreneurs to establish
the concerned authorities; the com- and own a company easily, in order
pany with all its assets is liable for any to adopt their invest innovations and
obligations o third parties. This form business concept.

RAKBUSINESS | 35

TECHNOLOGY

STUDIES | 36
TECHNOLOGY | 38

COMPANIES | 40

?IS YOUR SOCIAL MEDIA PERSONA IMMORTAL

With more than one billion Facebook users globally, to their digital footprint once they pass away, while an
and more than 500 million daily users on Instagram, it overwhelming majority (89%) would wish their social
is logical that each day thousands leave their social me- media account to be deactivated. The Registry’s find-
dia accounts unattended after they have passed away. ings challenge a 2016 research report by the University
Some social media channels, such as Facebook, offer a of Massachusetts** which produced the startling statis-
‘legacy’ option that allows users to pick who would look tic that, based on current Facebook trends, profiles of
after their account in the event of their death, but not late users would outnumber living users by 2098.
everyone is comfortable being memorialised. Just under half (42%) of those questioned, said they con-
In a recent poll, the DIFC Wills & Probate Registry (the sider their digital footprint as an asset, whilst a quarter
Registry) asked how UAE residents want to protect their of the respondents said they would include their social
digital footprint and social media legacy. More than half media accounts in a Will or succession plan. This sug-
of respondents (53%) have thought about what happens gests that thinking through what happens to your so-

36 | RAKBUSINESS

STUDIES

2018
DIGITAL TRENDS

The inevitable boost in technology and ‫ألكسـندر روسـر الرئيـس التنفيـذي ومؤسـس وكالـة الحلـول الرقميـة بروتوتايـب إنتراكتيـف‬
digital marketing within the GCC has
seen innovation, creativity and inspi- to our daily processes. It will complete- VIDEO Needless to
ration adapt to global advancements ly revolutionize the way big entities in- While text ads will still create an im- say, digital
including Apple Pay and regional ma- teract with data on a large scale. pact, trends from the past years show disruption is
terialization of digital super-hubs like With our devices gaining the ability to users leaning more and more towards screaming
NEOM in Saudi Arabia. simply ask us what we want to do, AI is video content from the roof-
Needless to say, digital disruption is also expected to lead to the extinction Visual stimulation from videos is in- tops saying it’s
screaming from the rooftops saying it’s of keyboards. comparable to that of text and is more here to stay
here to stay. likely to leave a lasting impression in
Acclimating to significant changes in the SOCIAL MEDIA AD SPEND SOARS one’s mind. Video also enables us to
digiworld, businesses in the region are With over a billion social media users deliver a message more effectively than
steadily, but surely, embracing the idea of around the world, Facebook and Ins- text as too much text is not always good
digital transformations and are welcom- tagram ads will see businesses push text and shorter text may not be easily
ing on board an understanding of what a traditional marketing tactics aside as comprehensible.
digital transformation truly entails. they immerse themselves in analytics The above trends are and will be sub-
Understanding what tech advance- of cost-per-clicks. ject to change with the ever-developing
ments made their mark this year, Al- Ability to correctly identify and narrow landscape of the digiworld. But, one
exander Rauser, CEO and Founder down target audience, instant commu- thing is for certain - the tech world and
of digital solutions agency Prototype nication, reach and engagement, will its advancements will never cease to
Interactive, picks the top three trends all drive ad investment towards pro- amaze.
that businesses can anticipate in 2018: moted posts and boosts.

ARTIFICIAL INTELLIGENCE (AI)
Equipped with the ability to improve,
intuitive and easily accessible, the fu-
ture of AI looks bright.

From chatbots to robots that can sense
emotion in tone of voice and through
facial-expression recognition, develop-
ments in AI will soon begin to define
how we function in unison with tech-
nology, how we derive data and apply it

89% cial media accounts has become a sig- tal and physical, are handled according access to important details and pass-
nificant consideration for succession, to their wishes after death.” words.” Hird added.
would wish alongside property or financial assets. For those wishing to hand over their Whilst including your social media as-
their social Sean Hird, Director, DIFC Wills & Pro- social media assets, partners ranked as sets is not a service available at the Reg-
media account bate Registry said: “In a world where the person they would trust to run their istry – there are ways that you can take
to be deacti- many spend as much time online as social media as ‘legacy’ pages. On the care of tomorrow and manage your so-
offline, it makes sense that we should other hand, nearly one-in-two would cial media legacy.
vated. consider how we pass on all of our as- not wish to give access to their mums, Registering a Will with DIFC Wills &
sets, including digital. This highlights even when they’re no longer around to Probate Registry is one of the basic
just how important it is for individuals be embarrassed. steps that every individual with assets in
to think about what happens to their “Passing on social media account de- Dubai or Ras Al Khaimah or raising chil-
prized possessions. We strongly en- tails is similar to some of the practical dren here should take as part of their
courage individuals to start their life ad- aspects of making a Will. This may in- life planning. For more details please
min so that their assets, including digi- clude ensuring your beneficiaries have visit www.difcprobate.ae.

RAKBUSINESS | 37

!

Foxconn of
China, the world’s
largest electron-
ics company,
released 60,000
workers and
replaced them
with robots

!‫؟‬ And the same manager turns to a ro- begun to use the robot in their work
bot so that he can accurately judge the in order to increase accuracy and pro-
WORLD OF ROBOTS robot that will be approved to work in fessionalism, save time, reduce the
your company?! .. You will inevitably margin of risk, increase of productiv-
IS INVENTION SUPERIOR save yourself canteen expenses and ity and take into account the modern
TO INVENTOR drinks, and will inevitably have a new trends imposed by the Fourth Indus-
approach to the adoption of the com- trial Revolution in the labor market
By : Yousef AlNuaimi pany’s budget and vacation system In 2016, Foxconn of China, the world’s
Do you imagine yourself as a manager of a com- and wages, these are questions and largest electronics company, released
pany most of its employees are robots? And concerns justified by the increasing 60,000 workers and replaced them
how will be the general social atmosphere in trend to automate most functions and with robots
the company? What would be called the human business Because robots do not make mistakes,
resources manager then? Does he become a ro- It’s the age of robots that are bursting do not complain and do not demand
botic resource manager?!! into our lives so that we cannot ignore an increase in wages, nor do they com-
them or escape the winds of change, mit suicide due to the pressures of
the escape here is either suicide or work on workers in such giants com-
jumping into recession. panies.
So what is the future of human labor Today, robots exist in many sectors
with robots breaking into the labor that require a lot of precision, sensitiv-
market? Overtime, will it turn from ity or gravity, and humans cannot do it
just helping people to almost total optimally, stormed the military field,
control of the labor market? And later the medical field and Electronic indus-
perhaps social life? And what if artifi- try, entertainment, automobile indus-
cial intelligence technology is used as try, service delivery and many more.
an immoral class?!
IS IT AN INTEGRATIVE OR COMPETI-
AGE OF ROBOTS ! TIVE RELATIONSHIP?
Robot: A human, but an automaton A report by the McKinsey Global Insti-
that performs actions that mimic tute showed in July 2016 Where jobs at
what humans do with great precision risk of automation and robotics were
and skill thanks to the programming observed by analyzing more than 800
stored inside it jobs in the US labor market, to come
Many countries and companies have first the professions within the sectors

38 | RAKBUSINESS

TECHNOLOGY

of industry(59%) , food services (73%), re- 5 BESTSELLERS
tail (53%), and accommodation and hotel BUSINESS BOOKS
sector (73%). BY KINOKUNIYA
Where these sectors witnessed a steady
development at the technical and techno- TRIBE OF MENTORS by TIM FERRISS
logical level, which puts them at great risk Tim Ferriss, the #1 New York Times best-selling author
of automation. of The 4-Hour Workweek, shares the ultimate choose-
Experts in this field say that we are in a your-own-adventure book—a compilation of tools, tac-
new world where we will soon find robots tics, and habits from 130+ of the world’s top performers.
walking, interacting and learning from us From iconic entrepreneurs to elite athletes, from artists
Which will generate a new generation to billionaire investors, their short profiles can help you
more intelligent and effective. To what ex- answer life’s most challenging questions, achieve ex-
tent can the challenges and fears of robot- traordinary results, and transform your life.
ic control of the labor market and human
exclusion be legitimate? PRINCIPLES: LIFE AND WORK by RAY DALIO
And will these concerns and fears reduce Ray Dalio, one of the world’s most successful investors
the use of industrial automation and in- and entrepreneurs, shares the unconventional princi-
telligence in the labor market? And how ples that he’s developed, refined, and used over the past
decision-makers and officials can absorb forty years to create unique results in both life and busi-
these concerns and direct them in a pos- ness—and which any person or organization can adopt
itive manner, i.e. towards the continuous to help achieve their goals.
training of staff and raising their efficien-
cy to confront the winds of change stead- HINKING, FAST AND SLOW by DANIEL KAHNEMAN
ily, and to move towards the future at a Daniel Kahneman, the renowned psychologist and
confident pace that will not deprive peo- winner of the Nobel Prize in Economics, takes us on a
ple of their right to work and produce groundbreaking tour of the mind and explains the two
As the trend towards the introduction of systems that drive the way we think. System 1 is fast, in-
robots in the labor market is no longer an tuitive, and emotional; System 2 is slower, more delib-
option as much as an imperative necessi- erative, and more logical. The impact of overconfidence
ty imposed by the life process in the delib- on corporate strategies, the difficulties of predicting
erate approach to possess the skills and what will make us happy in the future, the profound
capabilities necessary to apply in all eco- effect of cognitive biases on everything from playing
nomic sectors and prepare human cadres the stock market to planning our next vacation, each of
to deal with these variables and raise its these can be understood only by knowing how the two
efficiency continuously systems shape our judgments and decisions.
And to address the enactment of laws and
legislation that regulate this transforma- RICH DAD POOR DAD by ROBERT KIYOSAKI
tion and protect it from the hands of the Rich Dad Poor Dad is Robert’s story of growing up with
abusers. two dads — his real father and the father of his best
It is noteworthy that these concerns took friend, his rich dad — and the ways in which both men
place in a large amount of expert discus- shaped his thoughts about money and investing. The
sions during the «Knowledge Summit book explodes the myth that you need to earn a high
2017» held in Dubai last year income to be rich and explains the difference between
And they stressed that the relationship be- working for money and having your money work for you.
tween “robot” and artificial intelligence
will be complementary and not compet- THE POWER OF HABIT by CHARLES DUHIGG
itive with human cadres during the com- In The Power of Habit, award-winning New York Times
ing period business reporter Charles Duhigg takes us to the thrill-
They mentioned during a session on Arti- ing edge of scientific discoveries that explain why hab-
ficial Intelligence and (Robot), where “ro- its exist and how they can be changed. With penetrat-
bot Sophia” which is designed as a lady to ing intelligence and an ability to distill vast amounts of
learn and adapt to human behavior and information into engrossing narratives, Duhigg brings
its conduct, was brought up, that “robots” to life a whole new understanding of human nature and
would work on the improvement of life its potential for transformation.
services
And challenges the scarcity of some skills, RAKBUSINESS | 39
pointing out that the “robots” industry
still needs to develop until the stage of full
realization, which expands the scope of
its work more.

EFFECTIVE DATA including, Jamie Dimon, the CEO of
JP Morgan, Andrew Bailey, the head of
AN IMPERATIVE FOR THE SUCCESS OF British government’s Financial Conduct
ANY COMPANY Authority, and the infamous Wolf of Wall
Street, Jordan Belfort.
The founder of Crystal Lagoons, the multinational water innovation company and Like the internet of the late 1980s and
developer of the “world’s top amenity”, Fernando Fischmann, has outlined the early 1990s, these are early days for Block-
technology trends he expects to have the greatest impact on ME business in 2018. chain, but there is enough hype around
for Goldman Sachs to say the technol-
ogy ‘has the potential to redefine trans-
actions’ and can change ‘everything’.
Bitcoin aside the technology behind the
development is not in doubt.

Fernando In terms of innovation and technology, based on.” Another development in recent years is
Fischmann, gives Smart Cities have taken centre stage in And disruptive technology is not only that of Big Data. Big Data describes data
his opinion on the recent years, particularly in Dubai. Typi- confined to municipal operations, be- sets so large and complex they are im-
tech’ trends set cally, a Smart City is defined as an urban fore designs can even get off the drawing practical to manage with traditional soft-
to impact the ME area using various types of electronic board, financial investment is required. ware tools. But it can also be a vital tool
region in 2018 data collection sensors to supply infor- This year Blockchain, the technology for analysis.
and why Crystal mation used to manage assets and re- behind the digital currency Bitcoin, has New technologies make it possible to
Lagoons technology sources efficiently. In so many ways that commanded numerous headlines and realise value from Big Data. For exam-
is the perfect fit for clearly puts Dubai into that smart brack- piqued the interest of investors. ple, retailers can track user web clicks to
Smart Cities such et, having launched various initiatives by identify behavioral trends that improve
as Dubai integrating technologies such as Infor- “Blockchain is an undeniably ingenious campaigns, pricing and stock issues; and
mation Communications Technologies invention. Information held on a block- utilities can capture household energy
(ICT) and the Internet of Things (IoT) in chain exists as a shared - and continually usage levels to predict outages and to in-
both hard and soft infrastructures. reconciled - database. The database isn’t cent more efficient energy consumption.
Fischmann explained: “Dubai is com- stored in any single location, meaning “It is crucial there is a place for everything
mitted to becoming the smartest city in the records it keeps are truly public and and everything is in its correct place. And
the world and is well on course to achiev- easily verifiable. No centralised version that’s where Big Data comes in. Manag-
ing this with 100 smart initiatives and of this information exists for a hacker to ing data effectively is imperative for the
1,000 smart services to be completed be- corrupt, which is a huge factor in the cur- success of any business or organisation,
fore the end of this year (2017). This es- rent climate of increased internet hack- and is something we’re fully aware of at
calating push to improve how Dubai can ing activity. But at the same time, it is Crystal Lagoons,” added Fischmann.
function through real-time monitoring, hosted by millions of computers simul- Crystal Lagoons has always looked to-
analysis and advancement of city deci- taneously and its data is accessible to an- ward innovation and technology for ad-
sion-making is set to optimise efficiency, yone on the internet,” said Fischmann. vanced solutions to design, installation
environmental sustainability and citizen However, Bitcoin itself has come under and sustainable maintenance. The com-
engagement – many of the core objec- criticism from a number of leading and pany focuses on enhancing people’s lives
tives Crystal Lagoons’ business model is influential figures in the financial world by resolving some of the world’s biggest
issues, such as water scarcity, energy,
pollution and lack of open public spaces.

40 | RAKBUSINESS

COMPANIES

‫ـ‬L‫ـــ‬E‫ـــــ‬X‫ــــ‬U‫ ــــ‬S... LEADS THE HYBRID ELECTRIC VEHICLE IN UAE 2019 CORVETTE ZR1
exus at Al-Futtaim Motors, supplier of the largest line-up of
Hybrid Electric Vehicles (HEV) in the UAE, is reaping the ben- RETURN OF THE KING
efits of its diverse Hybrid Electric range with sales rising 251%
in 2017 compared with 2016. “I’ve never driven a Corvette like this before, and nobody else has ei-
exus Managing Director at Al-Futtaim Motors, Chris Buxton, ther, because there’s never been one like this before,” said Mark Re-
attributed the hike to an increased interest in HEV technol- uss, executive vice president, Global Product Development, Purchas-
ogy in general, the introduction of two new HEV models in ing and Supply Chain. “Its unprecedented performance puts all other
2017 including Lexus LC 500h and LS 500h, supported by global supercars on notice that the ZR1 is back.”
dedicated efforts and promotional activities by the brand, in-
cluding a Hybrid Drive-in experience in November, dedicated The Corvette ZR1’s exclusive LT5 supercharged engine, which is rated at
HEV-only display at the Dubai International Motor Show and an SAE-certified 755 horsepower (563 kW) and 715 lb-ft of torque (969
other incentivizing offers throughout the year. Nm), is establishing a new benchmark in performance. Further, the ZR1
elevates Corvette’s track capability with two wind tunnel-honed aerody-
B‫ـــــ‬O‫ـــــ‬R‫ــــ‬S‫ ـــ‬CHE DESIGN HUAWEI namics packages, including an available High Wing that provides an es-
An event was held over an hour flight in a luxury private jet timated 950 pounds (430.91 Kgs) of downforce.
and brought to life the unique features of one of the most Most powerful ever
expensive smartphones in the market, highlighting its intelli- The ZR1’s LT5 6.2L V-8 engine advances Corvette’s supercharging legacy,
gent performance and luxurious design. The Porsche Design which began with the 2009 sixth-generation ZR1 and continued with the
HUAWEI Mate 10 is built for luxury aficionados who want to 2015 seventh-generation Z06. The LT5 delivers the highest output ever
experience the joy of unrivaled design, unmatched speed and for a Chevrolet production vehicle, thanks in part to a new, more-effi-
unsurpassed performance, with a 6GB RAM + 256GB ROM cient intercooled supercharger system that offers 52 percent more dis-
storage solution that maximizes performance. placement than the Z06’s LT4 supercharger. GM’s first dual-fuel-injec-
tion system, which employs primary direct injection and supplemental
port injection, helps the LT5 achieve its record output.
Seven-speed manual and eight-speed paddle-shift automatic transmis-
sions are available with the LT5. It’s the first time an automatic transmis-
sion has been offered in a ZR1.
Fastest ever
The 2019 Corvette ZR1’s aggressive appearance is driven by function, con-
tributing to its distinction as the fastest production Corvette to date.
An all-new front fascia is designed to channel air for propulsion-system
and drivetrain cooling, with four new radiators bringing the heat-ex-
changer total to 13. A special carbon-fiber “halo” hood is open in the mid-
dle to clear the LT5 engine’s supercharger/intercooler assembly. Addi-
tional features, including aero packages with stanchion-mounted wings,
help push the ZR1 harder onto the track for more confident handling and
faster lap times. Top speed of the ZR1 is over 210 mph (337 kph).

RAKBUSINESS | 41

TOURISM

NEWS | 42
DESTINATION | 44

‫ـ‬R‫ــــ‬A‫ــــ‬S‫ــــــ‬A‫ ــ‬L KHAIMAH BEGINS NEW YEAR WITH A WORLD RECORD
Almost 1,100kg of fireworks created a 1km-long can- 1km in diameter when it was launched.

opy of colour, making Ras Al Khaimah’s Al Marjan The certificate was presented to Abdullah Al Abdoo-

Island one of the brightest spots on earth on New li, managing director of Al Marjan Island, and Phil

1090 kg Year’s Eve (NYE). Over 390 ‘comet stars’ splashed the Grucci, CEO and creative director of fireworks by

Making Al Marjan night in the UAE’s national colours as the extrava- Grucci.
Island one of the
brightest spots ganza propelled RAK into the record books. Al Abdooli said: “The fireworks was a spectacular
on earth on New
Year’s Eve The record trumps the 2014 title set by the Kouno- success that welcomed visitors from around the

42 | RAKBUSINESS su fireworks festival in Sitama, Japan, on October world and cemented the reputation of the emirate

11, 2014. Compared to the 464.826kg firecrackers as a must-visit destination for NYE galas. Adding to

launched then, RAK deployed over twice the amount. the pride of RAK and our nation, the event is a true

The shell in RAK reached a whopping 1,100 metres testament to the joint efforts of various governmen-

from the ground to the top-end of the display; 650 tal entities, which ensured a safe and seamless cel-

metres from the ground to the centre, and measured ebration.

NEWS

Begins New Year with a world record

1000000 RAS ALKHAIMAH... The emirate’s diverse natural land-
scapes and abundance of water means
VISITORS IN 2018 A DESTINATION GOING Ras Al Khaimah has been continuous-
BEYOND ly inhabited from the Ubaid period
2900000 of 5000-3800 BC, right through to the
Ras Al Khaimah, the northern-most emirate of the United Arab Emirates 20th century with countless artefacts
VISITORS IN 2025 (its name translates as ‘Top of the Tent’), has a fascinating history and and historic sites to explore including
culture dating back more than 7,000 years. Much of the history and cul- well-reserved forts, a national muse-
44 | RAKBUSINESS ture can be experienced with guided tours taking in the ancient sites of um and even a ‘ghost’ town.
this emirate, which was once known as Julfar and where traditions of de- Visitors also have a wide choice of ac-
sert, sea and mountain life are still in evidence today. commodation – from ultra-luxurious
beach resorts managed by some of
the most notable names in the busi-
ness, to family-friendly city and beach
resorts, city centre properties and re-
sorts for the more laid-back adventure
seekers.

BEYOUND JOURNEY

CULTURE & HERITAGE ly face a very large oval over ground
‫ـــــــــــــــــــــــــــــــــ‬ tomb (Sh 99) 16m long and almost
The emirate’s diverse natural land- 11m wide.
scapes and abundance of water means
Ras Al Khaimah has been continuous- Of Prayer & Palace:
ly inhabited from the Ubaid period In the ‘old’ city visitors are also wel-
of 5000-3800 BC, right through to the come at the preserved resident of
20th century with countless artefacts the emirate’s former ruler, Sheikh
and historic sites to explore including Saqr bin Mohammed Al Qassimi and
well-reserved forts, a national museum the intriguing Mohammed bin Sa-
and even a ‘ghost’ town. lem Mosque – the only one left in the
emirate which is without a minaret.
Museum Memories: The mosque has a surviving ‘prayer
In the Ras Al Khaimah National Muse- call platform’ from which the “imam”
um, a former fort and palace of the Al would call the faithful of the nearby
Qasimi ruling family until 1964, which village to prayer. Tours of the mosque
has been structurally renovated, vis- can be arranged by most tour opera-
itors can view the emirate’s history tors and hotels.
through artefacts, some dating back to
the 1600s and the days of Portuguese The Mystery of the Red Island:
and Dutch occupation. Mystique still surrounds the Al Jazirah
Al Hamra (Red Island) which retains
Shimal & The Queen of Sheba Palace: vestiges of architecture from an early
Shimal, the region’s largest and most 20th century pearling port. Myth and
important bronze age site dating back legend abound as to why the villagers
to 4th millennium B.C. Here visitors of the Al Zaab, one of Ras Al Khaimah’s
will find an extensive contemporane- largest ancestral tribes, up and left this
ous cemetery and a medieval fortress once thriving seaside community. The
locally known as the ‘Palace of the site that was home to Emiratis before
Queen of Sheba.’ The area has been the oil is to be restored in conjunction
settled for at least 4,500 years and its with the federal government. Al Jazirat
former inhabitants benefited from its Al Hamra takes its name from its coral
proximity to the sea, pastures and cul- and adobe buildings which included a
tivable lands. mosque, wind towers, courtyards and
The vast Shimal cemetery has some houses with star-studded windows
250 tombs of different architectural and wooden doors.
types. Entering the main Shimal ar-
chaeological park visitors immediate-

Hilltop Guardian:
To the north of Ras Al Khaimah visi-
tors can tour the 19th century Dhaya
Fort – the UAE’s only surviving hill-
top fort - and its adjacent oasis. Visi-
tors can take in the fort’s fascinating
backstory at their own pace through
self-guided tours and climb up to the
top. Originally built as a 19th cen-
tury fortification to defend against
invading forces, it offers a glimpse
into Ras Al Khaimah’s riveting past,
covering 4000 years of archaeology
and provides a modern symbol of
the emirate’s enduring heritage. Its
elevated position offers breath-tak-
ing bird’s eye views of acacia forest,
traditional palm gardens, natural re-
serve of khor Hulayla.

RAKBUSINESS | 45

Waldorf Astoria Rixos Bab Al Bahr

Al Wadi Desert Hilton The Cove Rotana

LUXURY & WELLNESS male and female steam rooms and Wal- A TASTE OF TRADITION:
‫ـــــــــــــــــــــــــــــــــ‬ dorf Astoria’s signature herbal sauna. ‫ـــــــــــــــــــــــــــــــــ‬
Wellbeing has been a signature character- You’ll be able to taste local food through-
istic of Ras Al Khaimah for generations. Over at the five-star Rixos Bab Al Bahr, out the emirate – from the luxury of hotel
The emirate boasts fresh sea breezes, cool- the Anjana Spa combines Turkish culture restaurants, to the abundance of local ca-
er mountain air, and pure waters which and tradition with a modern concept of fes and food stalls. For a more ‘traditional’
trickle - and in winter sometimes cascade wellness. Two ultra-luxurious Ottoman dining experience head to Al Fanar restau-
- down the rocky Hajar mountain range, retreats are the largest spas in the emirate. rant, where the ambience resembles that
giving life to foothill natural springs, has Each spa has a secluded private swimming of an Emirati family home in the 1930s and
seen people arrive in the emirate for gen- pool for sunbathing or a cool dip, as well the menu is pure UAE with all of its east-
erations to refresh and reinvigorate. as traditional Turkish hamams, where you ern influences. Round off the meal with a
Today, the traditional sense of wellbeing can embark on the time-honoured ritual stop at Ras Al Khaimah’s oldest ice-cream
continues but is now complemented with of a deep cleansing scrub performed be- shop Ashuk, whose fans have now created
luxurious spas, highly-skilled therapists, neath the decorative architecture of an or- a following on TripAdvisor for its signature
acclaimed products and an increasing nate central dome. creamy desert packed with fruit.
range of wellness activities. Some of the You’ll find seafood restaurants in abun-
emirate’s spas are now award-winning The Hilton Spa features separate male and dance – with the catch having been harvest-
including the Al Wadi Desert, Ras Al female changing rooms, two Moroccan ed just hours before from Ras al Khaimah
Khaimah – a Ritz-Carlton partner hotel. hamams, nine treatment rooms and two shores - though meat dishes, predomi-
Here, in a dreamy desert setting, local- relaxing lounges. Guests have complimen- nantly goat and mutton, also make appear-
ly-sourced herbs and spices, expert ther- tary use of the amazing whirlpool tub, sau- ances in the traditional family restaurants
apists and restorative hydrotherapy facil- na or steam room. throughout the destination. Bil Afia!
ities come together to create a chance to
truly unplug and reach mindfulness and At The Cove Rotana Resort massages in ca-
calmness. banas on the beach are a draw and compli-
ment the resort’s Bodylines Fitness & Well-
Designed with an undersea theme, the ness Club, which counts a Jacuzzi, steam
Waldorf Astoria Spa’s carefully chosen room, sauna, seven massage rooms, ful-
interiors of calming blue silk walls, floor ly-equipped gymnasium, fitness classes,
to ceiling one-way windows and artful cardiovascular and weight training. You
light pieces induce a sense of calm, taking can then relax in one of two outdoor in-
guests to a serene place of peace beneath finity pools set in the 600-metre pristine
the sea. There are six large treatment private beach.
rooms, as well as one couples’ room, a
floatation bed for women, a hydro bath,

46 | RAKBUSINESS

GETTING ACTIVE is nestled on the edges of the Wadi Khadeja BEYOUND JOURNEY
‫ـــــــــــــــــــــــــــــــــ‬ with access to 500 hectares of nature reserve
Whether it’s yoga on the beach, a stroll along ready to be explored with guides through or- ADVENTURE & SPORTS TOURISM
the coast, horseback riding, water sports, a ganised horse treks. The reserve features a ‫ـــــــــــــــــــــــــــــــــ‬
round of golf on all-grass courses or an invig- stunning natural desert landscape and free Lonely Planet may have summed it up:
orating mountain hike, a stay in the emirate roaming wild life including sand gazelles, “Outdoor enthusiasts love it!” it says of Ras
leaves visitors relaxed and refreshed. Arabian gazelles, camels and Arabian oryx. Al Khaimah. And with a carefully-planned
You can occasionally spot desert foxes and strategy of probing the adventure and
Play A Round: wildcats at sunsets and during the cooler sports tourism segments leveraging its su-
Ras Al Khaimah is quickly becoming a leading season. The Wadi hosts a unique mix of birds perb array of natural assets, including the
regional golf destination. Extensive facilities such as the wheatears, babblers, falcons and Hajar mountain range and the UAE’s high-
at Al Hamra Golf Club, which now hosts the ravens. est peak, Ras Al Khaimah is the Gulf’s key
annual Ras Al Khaimah Golf Challenge, a Eu- destination for adrenalin-seekers.
ropean Challenge Golf Tour event, include an Stroll, Bike or Jog: For some time, the emirate has been pop-
18-hole, sea-front course (across 7,325 yards) The fresh early morning and sunset air are ular with inveterate hikers tempted by
with a broad range of facilities both on and great for ‘open air’ activities such as stroll- rocky pathways skirting ancient villages in
off the course. A floodlit course allows play af- ing, biking and jogging. You can head off to the Hajar mountain range which borders
ter sunset. As an alternative, Tower Links also Al Qawasim Corniche or Marjan Island with Oman. Trekking and hiking the craggy
offers an 18-hole course set against the mag- its 2,000-metre Corniche or the Lagoon Walk trails are not for the feint-hearted and in-
nificent backdrop of the Hajjar Mountains. running tack at Mina Al Arab. For off-road cy- creasingly the activities are being organ-
cling, make a beeline for Wadi Showka, Ras ised into group tours. The range has also
Ride A Wave: Al Khaimah’s only outdoor cycling centre. attracted motorists wanting to drive the
With over 60 kilometres of calm, crystal clear Nestled in the heart of Showka, 50 kilometres recently-opened road which snakes 1,934
coastline and ideal, year-round water temper- of tracks are open to cyclists of all experience metres above sea level towards the summit
atures, Ras Al Khaimah is a hotspot for water levels and offers bike rental, plus servicing of Jebel Jais.
sports. Take your pick from scuba diving, sail- and repairs from highly-experienced moun- But Ras Al Khaimah Tourism Development
ing, jet skiing, wakeboarding, parasailing, fly- tain bikers. Authority (RAKTDA) recently upped the
boarding and more. Or, set your lures and reel adrenalin stakes with the launch of the
in a catch with a deep sea fishing trip. Fishing Tour the Mangroves: region’s only commercial Via Ferrata. Set
excursions are available at all Ras Al Khaimah It’s a gentle kayaking tour of the lush man- around Jebel Jais, the Via Ferrata (Iron Path)
resorts and provide the perfect offshore adven- groves – so essential to the sustainability of sees enthusiasts climb, trek and zipline al-
ture for beginners and skilled anglers alike. the emirate’s marine and wildlife. As you most 400 feet above sea level. The adventure
Expect to catch a vast array of species (some meander through the channels, where the si- tourism product has seen more than 1,500
subject to sustainable catch-and-release pol- lence is punctuated only by the shrill calls of adventure seekers complete the challenge
icies), including King Fish, Barracuda, Cobia, birdlife and the splash of jumping fish, take since opening in November 2016.
Trevallies, Snappers, Queen Fish and Sherry. in the atmosphere which ensures the safety of Ras Al Khaimah’s ‘Destination 2019’ strat-
a variety of wildlife. egy includes a roadmap for innovative hos-
Saddle Up: pitality concepts that take advantage of the
Al Wadi Equestrian and Adventure Centre destination’s unique natural assets for lux-
ury mountain resorts and wellness retreats.
With the zipline, cycling tours and unique
accommodation option planned, the poten-
tial for activity, nature and adventure-based
tourism market is huge.

RAKBUSINESS | 47