Ras Al Khaimah: Tax-Efficient Sectors
Ras Al Khaimah’s economy has traditionally been based on physical businesses such as manufacturing and trading, but the government is keen to attract investment into the services sector, and an offshore companies registry has been created to attract international holding and investment activities.
There are many opportunities for foreign investment in Ras Al Khaimah, but there are restrictions on foreign ownership of businesses in the ‘onshore’ economy. For this reason the government has established the Ras Al Khaimah Free Zone (RAK FTZ) regime which grants 100% foreign ownership of businesses, in addition to customs privileges and other benefits such as 100% repatriation of capital and profits.
There are no taxes to speak of in Ras Al Khaimah, on- or off-shore, and therefore the Free Zones are some of the most favourable locations in the region for international operations.
All business in Ras Al Khaimah is low tax, but in the Low-Tax Business Review we examine the Free Zones, the banking and finance sector, and the marine registry.