RAK woos Indian investors

While aiming at increased presence by expanding operations into the booming infrastructure sector in India, the Emirates of Ras Al Khaima (RAK) is also planning to attract more Indian investments.

According to PricewaterhouseCoopers, the advisors to the RAK Investment Authority, Indian investments flowing into the tiny Emirate this year is expected to touch $1 billion.

Khater Massad, chief executive officer of the newly constituted RAK Investment Authority and CEO of RAK Ceramics, who is currently holding road shows to showcase the investment opportunities in the Emirate, told a group of investors from Andhra Pradesh here on Tuesday that their industrial operations would be more profitable if located in RAK.

Giving details of the no-tax and hassle-free environment offered by the Emirate, Massad said that in the near future his government would increase the equity holding limit by a foreign investor up to 70 per cent and plans were afoot to convert the entire Arab world into a free-trade zone with no duties in the next five years.

"In fact, of all the RAK Ceramics plants outside the Emirate, the one located in Ras Al Khaima is doing the best," he said.

The free-trade zone that exists within RAK offers to fully own any company without the obligation of roping in a local partner, and RAK Investment Authority will also take care of the partnership requirements of an investors if necessary, according to Massad.

Later, speaking to mediapersons, Massad said that the RAK Investment Authority was now looking at the opportunities in the Indian infrastructure sector.

As regards ceramics plants, RAK Ceramics is planning to set up one more unit in India near Ahmedabad for logistical advantages in addition to the Andhra plant, which is expected to commence commercial operations in just three weeks from now, he said.

According to Puneet Kinra of PricewaterhouseCoopers, the response from Indian investors to set up operations in Ras Al Khaima is very encouraging.

Though he refused to divulge the details, he said that the RAK Investment Authority was already armed with about five MoUs worth over $40 million and was expected to conclude another five MoUs shortly to touch the $1-billion mark in Indian investments for the first time during the year.

Investors from Andhra are also expected to join the bandwagon to invest in the areas of education and healthcare, according to Puneet.

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Alluring facts

According to PricewaterhouseCoopers, the advisors to the RAK Investment Authority, Indian investments flowing into the tiny Emirate this year is expected to touch $1 billion

In the near future, the Emirates government would increase the equity holding limit by a foreign investor up to 70 per cent

The free-trade zone that exists within RAK offers to fully own any company without the obligation of roping in a local partner