Ras Al Khaimah (RAK) is one of the UAE’s most cost-competitive business destinations. Here is the complete 2025 guide to setting up a business in Ras Al Khaimah.
RAKEZ (Ras Al Khaimah Economic Zone)
RAKEZ was formed in 2017 from the merger of RAK Free Trade Zone and Ras Al Khaimah Investment Authority (RAKIA). It is now the UAE’s second-largest free zone by company count (13,000+ companies). RAKEZ package types: Business Centre (office-based businesses, professional licences), Academic Zone (education and training), Industrial Zone (manufacturing and heavy industry). RAKEZ cost 2025: Professional licence from AED 9,000-15,000/year. Trading licence from AED 11,000-18,000/year. Industrial licence from AED 15,000+/year. 1-3 visas included depending on package. RAKEZ industries: strong in ceramics (RAK Ceramics HQ), construction, healthcare equipment, hospitality, and professional services.
RAK Offshore (RAK ICC)
RAK ICC (RAK International Corporate Centre) is the UAE’s most popular offshore company jurisdiction. RAK ICC offers: offshore company registration (for international holding structures), lower cost than DIFC or ADGM offshore options, no VARA or CBUAE compliance requirements (for purely offshore holding structures), and fast registration (2-5 days). Note: RAK ICC offshore companies CANNOT operate within the UAE, open UAE bank accounts, or sponsor UAE visas.
RAK vs Dubai for Business Setup
RAK vs Dubai: RAK free zone licences are 20-40% cheaper than comparable Dubai free zone options. RAK’s location is 100km from Dubai city (60-90 min drive) — less convenient for frequent Dubai client meetings. RAK government incentives: RAK provides competitive land lease rates for industrial businesses. Bank account opening: Dubai free zone companies (IFZA, DMCC) generally have easier bank account opening than RAK-based companies at some banks.