RAK Business Magazine Sept., Oct., 2021 by New Generation Media

‫مجلــة أعمــال رأس اخليمــة‬

ISSUED BY RAK DED, ISSUE NO. 14, SEP., OCT. 2021

SPATIAL

IS DEDICATED TO DELIVER THE HIGHEST QUALITY CREW TRAINING SIMULATORS

FACTS AND CHALLENGES IN AGRICULTURAL PRODUCTIVITY IN RAS AL KHAIMAH

UAE

A COMPETITIVE PRIVILEGES FOR INVESTORS

REASONS TO START UP IN OR EXPAND YOUR BUSINESS TO RAS AL KHAIMAH

THE SHIFT

IS IT OPTIONAL?

HOW TO

SET SMART MARKETING GOALS YOU CAN ACHIEVE?

JIRI SLAVIC...

RAK DED APPROVES 2763 ACTIVITIES FOR FOREIGN OWNERSHIP

UAE IS OUR KEY PARTNER IN THE GULF REGION

SCAN THE CODE TO READ ONLINE

‫ﻣﺎذا ﺗﻌﺮف ﻋﻦ أﺷﻬﺮ اﻟﻌﻼﻣﺎت اﻟﺘﺠﺎرﻳﺔ واﻟﺼﻨﺎﻋﻴﺔ اﻟﻌﺎﻟﻤﻴﺔ‬ ‫واﻟﻤﺤﻠﻴﺔ ﻓﻲ رأس اﻟﺨﻴﻤﺔ؟‬ What do you know about the most prominent global and local brands in Ras Al Khaimah?! ‫اﻣﺴﺢ اﻟﺮﻣﺰ اﻟﺸﺮﻳﻄﻲ‬ ‫واﺳﺘﻤﺘﻊ ﺑﻤﺸﺎﻫﺪة ﺣﻠﻘﺎت ﺑﺮﻧﺎﻣﺠﻲ‬ (‫)راك زوم و راك ﺷﺒﺎب‬ Scan the QR and enjoy watching our programs (RAK Zoom & RAK Shabab) RAK

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RAK Business issued by Ras AlKhaimah Department of Economic Development to support and develop the business environment and highlight best practices in Ras Al Khaimah.

SUPERVISION SH. Mohamed bin Kayed AlQasimi EDITOR IN CHIEF Dr. Abdulrahman Alshayeb Alnaqbi MANGAGING EDITOR Aisha Obaid Alayyan EDITORS Maryam Haji Mohamed Nebras Shafik AboZidan

NEW GENERATION TEAM Khawla Ibrahim Abdulaziz Alelewi Zina Abboud Zainab Shieha Dareen Abu AlKheer Maher Safyeldin

050 899 5669 The topics mentioned express the opinion of its author, and do not necessarily represent the opinion of the Department of Economic Development in Ras Al Khaimah. Despite efforts to investigate accuracy, the magazine does not accept responsibility for any errors in the information provided.

VISION: Ras Al Khaimah to be the preferred destination for doing business in the region. MESSAGE: Planning and organizing economic activities, augmenting investment promotion efforts, and the business environment competitiveness to achieve sustainable economic development in the emirate based on qualified staff and integrated smart systems that are hinged on knowledge and innovation to achieve community happiness. STRATEGIC OBJECTIVES: Promote diversified and sustainable economic growth by attracting and encouraging investment. Developing the business environment in accordance with global competitiveness standards. Developiing function of business control and consumer protection. Developing services, enhancing customer experience and providing added value. Expand the institutional efficiency of institutional support services . Boosting the culture of creativity and innovation, spreading knowledge and institutional excellence. ORGANIZATIONAL VALUES: Positive citizenship: Taking responsibility and meeting all customers’ needs and beyond if possible (serve with a smile). Institutional happiness: Continuously strive to win the happiness of our employees, customers, partners, and community (Happy Society). Creativity, innovation: We want our employees to take initiative with every new, creative and innovative Idea (Be proactive and innovative). Integrity and Transparency: Develop an institutional governance framework and adopt it as an integrated ideology. Sharing Knowledge: One team with unified knowledge we all share (share your knowledge).

info.ded@economic.rak.ae www.ded.rak.ae

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FROM THE EDITOR CONTROL OF CRYPTOCURRENCIES IS THE CONFLICT BETWEEN THE SUPPORTERS OF THESE CURRENCIES WHO ARE LOOKING FOR ALTERNATIVES TO THE DOLLAR, AND THE TRADITIONAL FORCES OF FINANCIAL INSTITUTIONS AND THEIR CONTROL OVER THE GLOBAL FINANCIAL TRANSACTION SYSTEM.

CRYPTOCURRENCIES… THE CONFLICT TO COME

Dr. AbdulRahman Al-Naqbi

More than 4,000 types of crypto-coins were listed in record time, such as Bitcoin, Ethereum, and others. These currencies have posed a major threat to economies, especially in the industrial countries, and have become the main method for payment and international exchanges. Economies, therefore, may be exposed to major losses if the value of those currencies collapsed. The greatest impetus for cryptocurrencies was the recent announcement of Elon Musk, CEO of Tesla. Musk announced an investment of 1.5 billion Bitcoin. Tesla also made it possible to sell its cars using bitcoin as a payment method. Some investors viewed this announcement as a step forward and a signal that Bitcoin will become a major financial asset. However; Musk performed a U-turn over some criticism about a clean energy auto company investing in such a high-energy-consumption currency, which would increase environmental pollution. Accordingly, cryptocurrency has lost 10% of its value in a day. At the level of countries, El Salvador’s adoption of Bitcoin as a legal tender was another support for cryptocurrencies, which they turned later to be a competition between governments, especially those of small countries. The current situation analysis showed a conflict between the traditional financial institutions, their global control over the system of financial transactions, and their influence on currencies and markets. These markets are sometimes used as political tools to impose sanctions on countries and affect them economically by devaluing their currencies; not least Venezuela, Cuba, Iran, Sudan and other countries that may refuse to give up their orientations. Thus, these sanctions turn into a comprehensive economic blockade. It was not surprising that the world traditional economic and financial forces have lined up against cryptocurrencies because they would lose one of their most important tools in affecting markets, economies and countries. In addition, the sudden attack of the wide-spread currencies caused some paralysis among thinkers and key figures of the traditional system. Those people started talking about a conspiracy taking place, and attempted to underestimate cryptocurrencies. This can also be explained by the fact that there are emerging forces that are tired of the dominating traditional institutions that set the tempo of states according to the interests of their financial and economic institutions. A new alternative to Dollar is required as China rises to lead the world economy over the next decade; therefore, a new economic and financial system is needed. Another reason for challenging the traditional forces is the creation of a parallel system that is not supervised by anyone but the algorithms of huge computers and artificial intelligence, without knowing who is behind them and how prices are jacked up within short periods of time. On the other hand, the traditional forces, rightly, have begun to raise the risks of money laundering and the use of cryptocurrencies in hiding the illicit trade of drugs and weapons and in concealing the money looted from peoples and institutions. They have also raised the hazards of cybercrimes, such as the ‘Ransomware‘ that attacks, hacks, and blackmails government institutions and companies until a ransom is paid by encrypted currencies, which make it difficult to track the criminals. Cryptocurrency will continue to be a conflict arena between the traditional forces and the rebels who advocate the new system and believe in the urgency of overthrowing the traditional one. The conflict will indeed be prolonged until these forces adopt new tools. Nevertheless, the issue of controlling these currencies will remain the largest battlefield. To be continued… RAK BUSINESS

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CONTENTS

Issue No. 14 SEP.-OCT. 2021

PANORAMA 10 reasons to start up or expand your business in RAK

12 The Emirat characterized by a diversified economy and offers flexible solutions for startups and companies Jiri Slavic...UAE is a key partner in the gulf region

16 Ras Al Khaimah has a balanced long-term concept of economic development, and well-established channels of communication for entrepreneurs.

BUSINESS We are dedicated to deliver the highest quality crew training simulators

22 Spatial aim is To provide

airlines and training centres with the most reliable, high fidelity cabin crew training simulators on the market. The Facts and Challenges of RAK Agricultural sector productivity

26 The challenges facing the

16 6

agricultural sector are the limited agricultural land, the lack of water, The intense of competition and the high cost of the product

COLUMNS

RAK ICC and RAK DED offers an opportunity for offshore companies

40 42 34

UAE is a competitive privileges for investors

Ras Al Khaimah Records Highest Ever Visitor Numbers For July 2021

OVER THE TOP 30 Incoming foreign direct investments to the UAE achieved a growth of 44.2% during the past year 2020. Trends and tactics for successful marketing campaignsy

34 (GCC) countries have one of the highest rates of social media usage worldwide

TOURISM 40 One of the reason was the launching of the world’s largest Hampton By Hilton hotel The launch of first Brands For Less store in RAs Al Khaimah

42 As part of its ongoing efforts to expand its customer base and position itself as one of the top retail companies in UAE

52% is the Growth in the number of branches of foreign companies in UAE

Is it Permissible for a Public Official to Refrain from Executing a Court Ruling?

The digital Shifting… Is it Optional?

How to plan, measure and achieve your marketing goals?

RAK BUSINESS

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PANORAMA ECONOMIC

NEWS SPORTLIGHT PARTNERS

RAK ICC AND RAK DED INTRODUCE AN OPPORTUNITY FOR OFFSHORE COMPANIES TO EXPAND THEIR BUSINESSES IN THE MAINLAND RAK International Corporate Centre (RAK ICC), a worldclass international corporate registry in Ras Al Khaimah, has recently signed a Memorandum of Understanding (MoU) with RAK Department of Economic Development (RAK DED), a licensing authority in Ras Al Khaimah, introducing the new opportunity for global investors to set up a corporate structure allowing offshore companies to carry out their commercial activities in Ras Al Khaimah by establishing subsidiaries with RAK DED. The MoU was inked by Dr Sameer Ansari, CEO of RAK ICC and Dr Abdulrahman Al Shayeb Al Naqbi, General Manager of RAK DED, in the presence of Sheikh Mohammed bin Humaid Sheikh Mohammad bin Kayed Al Qasimi Al Qasimi, Chairman of RAK ICC, and Sheikh Mohammad bin Kayed Al laboration contributes to achieving the strategic vision of Ras Al Qasimi, Chairman of RAK DED. The cooperation will allow InternaKhaimah and its goals towards becoming an attractive hub for tional Business Companies registered with RAK ICC to expand and global investments. Working together and providing offshore engage in various activities within the emirate of Ras Al Khaimah companies with mainland advantages will further expand the through their subsidiaries at RAK DED. Investors will also enjoy potential of these companies.” both offshore and mainland benefits, which include zero corporate Commenting on the signing, Sheikh Mohammed bin Humaid Al or personal tax, 100% repatriation of capital and profits, low import Qasimi said: “Our latest partnership with RAK DED will play a key duty, no currency restrictions, options for office spaces, ability to role in enhancing the competitiveness of the emirate by creating a open corporate bank accounts, global trade and investments and world of business opportunities for investors from all around the eligibility for UAE residence visas. globe and introducing innovative solutions to meet the evolving Following the occasion, Sheikh Mohammad bin Kayed Al business needs of international companies”. Qasimi said: “We are pleased to work with RAK ICC. Our col-

ECONOMIC PANORAMA

966 TRADE LICENSES ISSUED FOR ‘SUPPORTED BUSINESSES’ IN RAS AL KHAIMAH

as Al Khaimah Department of Economic Development (RAK DED) has issued a total of 966 trade licenses for ‘supported businesses’ in the Emirate, including 824 for home-based businesses (‘Alghad’ license), 106 Virtual Trader License, and 36 business track permits. ‘Alghad’ license is one of RAK DED’s oldest initiatives, launched in 2007 to allow citizens to do business from home. The Department’s Assistant Director-General Mohammed Al Mahmoud explained that the program includes 58 different commercial activities that attract male and female citizens alike, such as selling traditional foods; organizing special events; selling perfumes, jewelry, and accessories; and designing clothing, among other activities. Al Mahmoud revealed that food-related business activities were among the most popular, adding that the Virtual

Trader License, for its part, has witnessed a remarkable turnout from citizens in the Emirate since the beginning of 2019. This turnout was mostly driven by the incentives RAK DED offered towards the end of 2018, which sought to regulate e-commerce in the business sector across the Emirate. The Virtual Merchant License covers many activities, most popular among them being e-commerce operations management.

RAK DED APPROVES 2,763 ACTIVITIES FOR FOREIGN OWNERSHIP The Department of Economic Development in Ras Al Khaimah has approved 2,763 activities, which are allowed for 100% foreign ownership, without any requirements, as a specific capital or any additional fees for foreign investors. This decision comes in line with Federal Decree-Law No. (26) of 2020, Dr. Abdul Rahman Al Shayeb Al Naqbi amending some provisions of Federal Law No. (2) of 2015, regarding the Commercial Companies Law. Dr. Abdul Rahman Al Shayeb Al Naqbi, Director General of the Department, indicated that foreign ownership activities were distributed according to economic activity among professional activities, by 36%, followed by industrial activities by 33%, and commercial activities by 30%. At the level of economic sectors, the manufacturing industries acquired the highest share.

NEWS

With regard to business tracks, the Department granted 36 permits since the launch of the program in 2018. Business track permits cover three categories: existing licenses registered in the Emirate, existing licenses registered in another Emirate, and new licenses. The issued licenses included 30 related to food activities and three permits for washing and polishing cars.

RAKTA SIGNS AN AGREEMENT WITH EZHIRE Within the framework of strengthening partnership with the government and private sectors to provide the best smart solutions in the Emirate of Ras Al Khaimah and to keep pace with government trends, Ras Al Khaimah Transport Authority (RAKTA) signed an agreement with eZhire to provide smart car rental service through smart mobile application. The application provides many smart features that facilitate the daily, weekly, and monthly car rental process by simplifying the procedures including insurance, on-demand delivery, and without paying the security deposit. The application is also characterized by the ease of choosing the category of the rented vehicle that matches its needs with the ability to benefit from the application 24/7. RAK BUSINESS

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JULPHAR REPORTS 73 MILLION AED NET PROFIT FOR THE SECOND QUARTER Gulf Pharmaceutical Industries PSC (Julphar), recently reported its financial results for the second quarter ending June 30th, 2021. In Q2 2021, the company generated AED 221.3 million in sales, a 30% increase from Q2 2020. The company has returned to profitability in Q2 2021 for the first time in 3 years. The positive trajectory has been fuelled by the revenue growth of high margin products and the manufacturing of the COVID19 vaccine Hayat-Vax, combined with the positive effects of implemented cost saving measures. The successful re-entry into core markets such as Saudi Arabia, Oman, Bahrain and Kuwait continued in the past quarter. Progress in the divestment of non-core activities as well as a one-time gain from the settlement of past outstanding balances with distributors have also contributed to the company’s return to profitability. Dr. Essam Mohamed, Chief Executive Officer of Julphar, said: “Our financial performance this quarter confirms the progress of Julphar’s financial turnaround, which we have been working towards as part of our vision to be a leader in pharmaceuticals serving those in need in the MENA region and beyond...”.

94.9 MILLION PROFITS OF “RAS AL KHAIMAH CERAMICS” FOR THE SECOND QUARTER RAK Ceramics announced its financial results for the second quarter of 2021, as operations in all major markets continued to improve, resulting in an increase in revenues of 70.4% in the second quarter of 2021 to reach AED 700.8 million compared to the second quarter of 2020. Revenues for the second quarter of 2021 exceeded levels Before the pandemic, it increased by 5% compared to the second quarter of 2019. The net profit recorded for the second quarter amounted to 94.9 million dirhams after taking into account the net proceeds from the sale of one-time assets in China and the writing off of the rental surplus from the rental hotel. The net profit recorded in the second quarter of 2021 is 29.3% higher than the pre-pandemic levels in the second quarter of 2019. The Board of Directors has proposed distributing a semi-annual dividend of 10 fils per share for the first half of 2021, subject to the approval of regulatory and supervisory authorities.

ECONOMIC PANORAMA

NEWS

RAK PROPERTIES NET PROFIT RISES 348% TO AED120 MILLION IN H1 2021 RAK Properties, one of the UAE’s leading property development and tourism infrastructure companies, has announced its financial results for the first half of 2021. The leading real estate developer in the UAE continued strong performance with its profits increasing during the first half of this year by 348%, reaching AED119.8 million, compared to AED26.7 million in the first half of 2020, which reflects its successful strategy in overcoming the challenges caused by the corona pandemic. Revenues of the real estate firm, which is listed on Abu Dhabi Stock Exchange, grew by 121% to reach AED265.1 million in the first half of 2021 compared to AED120.02 million in the same period of 2020. The total comprehensive income rose to AED106.58 million compared to AED11.4 million in the first half of last year. While the value of assets increased by 4.4% to reach AED6.05 billion, compared to AED5.8 billion as a result of

HE. Abdulaziz Abdullah Al Zaabi

increased investments in the development of hotel and residential projects, earnings per share rose from 0.013 dirhams in the first half of last year to 0.060 dirhams in the first half of 2021. His Excellency Abdulaziz Abdullah Al Zaabi, Chairman of the Board of Directors of RAK Properties said: “We are pleased with these results that prove once again the strength of the real estate market in the UAE, and the available

investment opportunities that overcome all challenges, and thanks to the wise leadership’s decisions and directives regarding facilities and incentives aimed at enhancing the competitiveness of the country and providing an attractive investment environment. The real estate market is on the verge of more exceptional performance during the coming period, with more projects to be delivered soon.”

RAD INTERNATIONAL ROAD CONSTRUCTION INVESTS AED 10 MILLION IN ITS NEW RAKEZ PRODUCTION BASE Ras Al Khaimah Economic Zone (RAKEZ) welcomed a prominent road construction player, RAD International Road Construction LLC, to its growing industrial cluster in its Al Ghail Industrial Zone. The branch company was established under the name of RAD Asphalt LLC, with an approximate investment of AED 10 million. With more than 18 years of experience in the UAE’s road construction industry, RAD International Road Construction LLC has established a strong local presence by catering to various projects within the country. RAD’s new facility in RAKEZ spreads over 10,000 m2 of land, and hosts more than 200 workers. “We made the right decision of joining RAKEZ for the construction of our new

facility. It is in line with our vision and strategy to expand our activities all over the UAE. We have been in road construction market for more than 18 years owning the company’s a high reputation among major players in the market,” said Syed Ali Abad, Founder and

Managing Director of RAD International Road Construction LLC. “The strategic location of RAKEZ, the cost-effective set-up packages, modern facilities and first-class services cemented our decision in choosing Ras Al Khaimah as a new base for our operations.” RAK BUSINESS

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THE EMIRATE OF RAS AL KHAIMAH IS CHARACTERIZED BY A DIVERSIFIED ECONOMY AND OFFERS FLEXIBLE SOLUTIONS FOR STARTUPS AND COMPANIES ALONG WITH A DEVELOPED INFRASTRUCTURE AND A MODERN LIFESTYLE THAT SUITS EVERYONE

ECONOMIC PANORAMA

SPOTLIGHT

10 REASONS

TO START UP IN OR EXPAND YOUR COMPANY TO RAS AL KHAIMAH Ras Al Khaimah could be the best-kept business secret in the Middle East. The northernmost of the seven Emirates that make up the United Arab Emirates, Ras Al Khaimah boasts a stable and diverse economy supported by easy company set-up solutions, a harmonious lifestyle that appeals to diverse tastes, advanced infrastructure, and excellent transport links to the Middle East, Africa and beyond. Here are 10 reasons why Ras Al Khaimah should be your No.1 choice for setting up or developing your business…

1 Companies can be %100 foreign owned Foreign investors can enjoy 100% ownership of companies in the Emirate of Ras Al Khaimah in certain booming sectors, including industrial, agricultural and service sectors, while owning and controlling all shares in non-free zone companies. This new option for investors covers the 2,954 economic activities.

a four-hour flight time of almost one-third of the world’s population and within eight hours of more than two-thirds of its people. There are five ports in the Emirate including Saqr Port, the largest bulk-handling port in the Middle East, and excellent roads infrastructure connecting Ras Al Khaimah to the rest of the UAE. Ras Al Khaimah International Airport is a growing transit point for both passengers and cargo. It is the overseas hub for Indian aviation giant SpiceJet, a hub for Air Arabia, and has partnerships with a number of Middle Eastern and European airlines. From Ras Al Khaimah, passengers can connect directly to locations that include New Delhi, Moscow, Warsaw, Cairo, Prague and Istanbul, flying on to numerous other cities around the world. With many more destinations in the pipeline, it’s blue skies ahead for Ras Al Khaimah International Airport.

3 There’s an abundance of opportunities From manufacturing to tourism and numerous sectors in-between, Ras Al Khaimah has established itself as 2 Ras Al Khaimah is ideally located between a great base for setting up a business or for expanding Asia, Europe and Africa commercial operations into new markets. Easy business Just a 45-minute drive from one of the world’s biggest set-up, low accommodation and labor costs and availaviation hubs - Dubai International Airport - and strategiability of land all combine with great infrastructure and cally located at the modern crosslivability to make the Emirate Ras Al Khaimah is distinguished roads between Europe, Asia and an ideal business environment. by its strategic location where Africa, Ras Al Khaimah occupies Ras Al Khaimah is an extremely a third of the world’s population a prime geographic position and diverse manufacturing hub, can be reached within four hours provides an abundance of transincluding high-tech manufacof flight, and two thirds of the port options. The emirate is within turing such as at Julphar Pharworld within eight hours RAK BUSINESS

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Ras Al Khaimah possesses a large amount of natural resources that helped establish and develop a number of international projects such as “Saqr Port”, “RAK Ceramics” , Julphar Pharmaceutical Company and many more

maceuticals. Other sectors of significance in the Emirate are mining, commodities, real estate development and finance, with major players already operating here, such as Stevin Rock and RAK Rock, RAKGAS, RAK Petroleum and RAKBANK.

4 Diversity is Ras Al Khaimah’s

key to success

Diversifying the Emirate’s economy away from oil has been at the heart of its economic success story. Ras Al Khaimah sought to benefit from its vast natural resources and set up a host of companies and leading brands, in addition to building factories and ports, and providing constant support and top-quality shipping services. Notable among these facilities is Saqr Port – the biggest bulk-handling port in the Middle East. RAK Ceramics is one of the major global players in its field, while Stevin Rock and RAK Rock have a produc-

tion capacity of over 80 million tons of raw materials per year. The Emirate has set solid foundations for a diverse industrial sector that can meet market demand and provide various products. Notable among these companies is Julphar, which has grown to become one of the largest pharmaceutical manufacturers in the Middle East and Africa. The company has recently started manufacturing the Hayat-Vax vaccine against COVID-19 and is expecting to produce 24 million boxes on the vaccine by the end of 2021. Today, Ras Al Khaimah’s composition of industries is so diverse that no single sector contributes more than 30% to the Emirate’s GDP.

5 You’ll find access to sector-specific free zones Ras Al Khaimah Economic Zone (RAKEZ) is a powerhouse business and industrial hub that is already home to more than 15,000 companies representing 100 countries across 50 sectors. Its goal is to ensure straightforward business set-up and provide customizable solutions to investors. As such, it operates state-ofthe-art industrial areas and business parks across the Emirate. Each specialized zone allows for services to be tailored to individual business requirements, with a multitude of business license solutions available through RAKEZ’s dedicated customer service team. In addition to RAKEZ’s many set-up options, RAK Ports has developed the Saqr Port / Free Zone area that allows for direct waterside access for those businesses that need quick and reliable access to port facilities. This free zone is the closest in the UAE to the Strait of Hormuz, making it strategically located for businesses with an interest in maritime transportation and logistics.

6 Doing business is easy and cost-effective One of the major advantages of doing business in Ras Al Khaimah is the relative ease and low cost of getting things done. Through entities such as RAKEZ, Ras Al Khaimah Department of Economic Development and RAK Chamber of Commerce and Industry, as well as other investment drivers such as Marjan, setting up a business in Ras Al Khaimah is a straightforward process and one that can be completed in as few as three steps. In fact, it is estimated that the cost of setting up and running a business in Ras Al Khaimah, as well as the cost of living, healthcare and education, can be up to 50% cheaper than in neighboring areas, depending upon a number of factors such as sector and neighborhood. Validating Ras Al Khaimah’s growing status as an investment hub is the World Bank’s Doing Business report, which ranked the Emirate 30th out of 190 sub-national economies in 2019 for ease of doing business. 7 Its commitment to digital Services facilitates smooth commerce Ras Al Khaimah’s Electronic Government Authority is transforming government services through digitalization. At present, more than 700 services from various Ras Al Khaimah Government departments are available online through rak.ae with many

ECONOMIC PANORAMA

Ras Al Khaimah is the most suitable destination of nature and outdoor activities due to the variety of options that it offers from the majestic mountain, golden deserts and stunning beaches

business applications having been transitioned into this easy-to-use format. In addition, the mRAK app now offers over 150 services available to businesses and the general public.

8 It offers stability in a safe and

secure environment

Ras Al Khaimah has a track record of stable policymaking and social cohesion. The Emirate is rated in the ‘A’ range by both Fitch and S&P ratings agencies. In addition, the Emirate has an extremely low crime rate, with its residents enjoying a high sense of security. It has a safety index rating from Numbeo of 93.8 out of 100, indicating a very safe environment, as well as an average emergency response time of 7 minutes and 43 seconds.

9 Its harmonious blend of nationalities & cultures helps business to thrive Ous cultures and religions, with communities of expatriates from all corners of the world setting up home in the Emirate and raising their next generations in an open and accepting environment. It has many places of worship for different faiths, with an array of ceremonies and festivals celebrated throughout the year, and this only adds to the great environment for businesses of all descriptions to thrive.

10 It’s a great place to live, work and play! Ras Al Khaimah is a truly magical place to live! From majestic mountains including Jebel Jais - the UAE’s highest peak at 1,934 meters, to 64 km of pristine white beaches and stunning terracotta deserts, it’s a paradise for those who enjoy the great outdoors. There are wonderful residential communities in which to put down roots, including Mina Al Arab and Al Hamra Village, developments which offer all the trappings of a big city but without the high cost or stress. A variety of educational curriculums are catered for across the Emirate’s schools, including

SPOTLIGHT

British, United States, Indian and International Baccalaureate, and there are several world-class universities, including the American University of Ras Al Khaimah and Ras Al Khaimah Medical & Health Sciences University. Healthcare needs are met at the many advanced hospitals and clinics across the Emirate, such as the state-of-the-art RAK Hospital. And let’s not forget the year-round sunshine, which does wonders for those Vitamin D levels!

Summary Whichever way you look at it, Ras Al Khaimah ticks an enviable number of business boxes, with its stable and expanding economy, strategic location, great transport links across the region and easy to set up, customizable business solutions. At a holistic lifestyle level it offers an unbeatable environment to make a home, with educational, healthcare and entertainment facilities that are second to none. Interested? Find out more at Ras Al Khaimah Economic Zone (RAKEZ), Ras Al Khaimah Department of Economic Development and Ras Al Khaimah Chamber of Commerce and Industry. Or check out Visit Ras Al Khaimah for things to do in the Emirate of Ras Al Khaimah

RAK BUSINESS

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HE. Jiri Slavic, Ambassador of the Czech Republic to UAE

JIRI SLAVIC...

UAE IS A KEY PARTNER IN THE GULF REGION 16

His Excellency Jiri Slavic, Ambassador of the Czech Republic to the United Arab Emirates stressed that the Emirate of Ras Al Khaimah has a balanced long-term concept of economic development, and well-established channels of communication for entrepreneurs, which makes it easier for those interested in doing business from abroad to start their business, and accordingly we will present during the Business Forum in September 2021 projects to build a factory for the production of energy depots for alternative energy sources (which we would like to implement in the Ras Al Khaimah Economic Zones Authority (RAKEZ), or a wastewater treatment and recycling project from WERO. This was stated in his interview with RAK Business magazine, the full text of the dialogue with Ambassador here:

ECONOMIC PANORAMA

PARTNERS

Ras Al Khaimah has a balanced long-term concept of economic development, and wellestablished channels of communication for entrepreneurs, which makes it easier for those interested in doing business from abroad to start their journy

The Czech Republic and the UAE have both similarities and complementarities. The Czech Republic is a member of the European Union and its location in the middle of Europe gives to all foreign partners new opportunities. The UAE is a member of the Gulf Cooperation Council and its position in the region offers to Czech companies very good entry point to the region. Exporters and investors must be very well prepared for entry. It is not only about knowledge of the business environment, local legislation and regulations, but also about knowledge of the cultural and social specifics of the country. The key is to choose a local partner who must fit into the tandem from the very beginning of the cooperation and work synergistically in favor of the business plan. A number of successful Czech companies operate in the UAE.

What distinguishes the relations between the two countries and supports the opportunities for their advancement? The United Arab Emirates is for us a country with deep visions implemented by everyday efforts. Our bilateral relations are excellent, supported both politically and by strong economic cooperation. The UAE is a key partner in the Gulf region, and is a major player in the international scale. The UAE is the Czech Republic’s largest trading partner of all Arab countries. The position of the UAE towards the Czech Republic and other countries of the Schengen area is emphasized by the fact that UAE citizens have visa-free relations with these countries. In the next period, it will be important how we can further expand the links on both sides, to areas that have significant added value for cooperation.

What are the most prominent joint entities that support business opportunities between the two countries? On diplomatic field, there is full support by our Embassy in Abu Dhabi and by the Embassy of the United Arab Emirates in Prague. Both Embassies develop predominantly the G2G cooperation (Government to Government). To help the Czech companies on the local market in the UAE, there is the Czech Trade (Czech Governmental Institution) office in Dubai. The business community is organized in the Czech Business Council in Dubai which plays a regional role (UAE, KSA, Oman). It is our everyday work to boost relations between our two countries. Together with the CzechTrade office in Dubai, our Embassy provides information to companies which is necessary to successful activity on the local market. We share experience to help them in establishing the local offices. The physical presence in the country is a key issue for efficiency of business. Analysis of the possibilities of expanding economic cooperation is our daily priority. We have detailed the main industry opportunities, which we continuously update. These include the automotive industry, electrical engineering, energy industry, chemical industry, information technology, defense industry, glass and ceramics industry, construction industry, telecommunications, medical and pharmaceutical industry, agriculture and food industry, rail and rail transport, entertainment and leisure activities. How do you see the business climate in the UAE, specifically Ras Al Khaimah? UAE is a very interesting place for various types of plans, the market environment in the UAE is characterized by high competition. Only strong players who have quality products and RAK BUSINESS

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will present a project for the construction of a factory for the production of energy repositories of alternative energy sources (we would like to implement it in RAKEZ), or a project for the treatment and recycling of wastewater from WERO.

To enhance the fruitful cooperation with Ras Al Khaimah, the Czech Republic intends to build a factory for solar energy sources in cooperation with RAKEZ or a project for the treatment and recycling of wastewater from WERO

a sophisticated strategy can succeed in it, there are many Czech companies working in the UAE, the basic list can be found on our Embassy’s webside: www.mzv.cz/abudhabi/cz/obchod_a_ekonomika/ceske_firmy_v_sae/index.html In Ras Al Khaimah, Czech partners do business in tourism (Palm Tourism), they belong among the largest travel agencies in the Ras Al Khaimah region. They run a restaurant, as well as a company (Pure Alternative Energy) which operates in the field of solar energy and electricity storage. Thanks to the cooperation with the RAK Chamber, we are able to present Czech companies, their products and products on the local market in the “Open Gate” program. Ras Al Khaimah has a long-term balanced concept of economic development and well-established communication channels for entrepreneurs. This makes it easier for those interested in doing business from abroad to start their plan. Thanks to stability, economic strength and clear rules in business, We can evaluate the competitive advantages of Ras Al Khaimah from the point of view of our Czech entrepreneurs who have been doing business in Ras Al Khaimah for a long time. In this case, I must highlight the activities and professional work of the RAK Chambers which is a bridge between the project and its holder on the one hand and potential partners and clients on the other.. Ras Al Khaimah has given procedures for founding companies which is the first step in starting a business. In September 2021, there will be another of our joint business forums where we will present possible cooperation between Ras Al Khaimah and the Czech Republic with the participation of representatives of the Czech Government, our Embassy, representatives of universities, scientific community and entrepreneurs. We

What is the amount of foreign direct investment in the Czech Republic? What are the restrictions or conditions on it? The Czech Republic is a country in the middle of Europe which creates for potential investors further opportunities of expanding their business to neighboring countries. Many international companies have a regional seat in the Czech Republic. All agenda of foreign direct investments in the Czech Republic is in portfolio of the Czech Invest governmental institution is a state contributory organization subordinate to the Ministry of Industry and Trade of the Czech Republic. (www.czechinvest. org) where all information on investment in the Czech Republic including conditions can be found. Czech Invest plays a key role in the area of supporting business and investments in its comprehensive form. The agency’s unique combination of regional, central and international operations ensures the integrity of services and the ability to connect global trends with regional conditions in the Czech Republic. CzechInvest’s activities are predominantly development of Czech technology firms’ potential, support for “smart” investments, motivation of foreign investors already established in the Czech Republic toward sophisticated complementary investments, development and cultivation of the national start-up and spin-off environment, assistance for Czech firms when entering foreign markets, promotion of the Czech economy, technologies and R&D abroad, cultivation of the business and investment environment in all regions of the Czech Republic, linking of partners from the business and R&D spheres, use of trends in progressive sectors of the global economy. There are sectors with high value-added products requiring high level of education and practical skills. I would emphasize the IT sector which has significant contribution to productivity, as well as implementation of smart technologies. The Government seeks all options for creation of new jobs and building sustainable modern economy. How does the government work to develop the economy and achieve advanced growth rates globally ? The Czech Government has developed the national economy to be sustainable, efficient, diversified, highly productive and export oriented. It has created attractive conditions for foreign direct investment. The targets fully comply with strategies of the European Union, mainly oriented on reduction of emissions and carbon neutrality on the future. Privatization has been an important part of the transformation process in the Czech Republic started in 1989. We succeeded to find strategic partners across all sectors of economy and today the Government owns only a limited portfolio of companies. Participation of strong investors allowed new investments and technologies across all sectors of economy. Today the Czech Republic is a modern country, a safe country, a reliable and trustworthy partner offering traditionally wide

ECONOMIC PANORAMA

PARTNERS

opportunities for cooperation. It is a country of marvellous people who work step by step, day by day for benefit of the country. Based upon high education and qualification, our economy has solid traditions and wellknown brands. We focus on seeking modern trends like innovations and investments based upon smart technologies. The word “robot”, today a key-term across all fields of economy, is a Czech invention, created by the Czech writer Josef Čapek already in 1920. Tell us about the Czech participation in Expo 2020, the importance of this participation, and what do you expect from it? The Czech Republic was one of the first countries to start building a national pavilion in March 2019. From the beginning, we have created the conditions to proceed effectively in the preparation according to the time schedule. We have taken the decision of the BIE (Bureau International des Expositions) General Assembly in May 2020 to postpone the date of the EXPO in Dubai as a logical step in view of the situation of the worldwide spread of COVID-19. For us, as well as for the other participating countries, the postponement of the deadline has created additional costs, for which our government has approved additional funding. After my recent visit to the pavilion, I can confirm that the Czech Republic will be ready to open the EXPO in all respects. The national pavilion at EXPO 2020 was built according to the architectural design of young Czech architects Formosa AA s.r.o. The technological core of the national exposition is the S.A.W.E.R system, which obtains water from air humidity using solar energy. The system was developed and further improved by scientists of the Academy of Sciences of the Czech Republic and the Czech Technical University. The idea of turning air into water and dry desert into a flowering garden is very characteristic of the United Arab Emirates. During the six months of the EXPO, thematic exhibitions will be placed in a rotating exhibition in the pavilion, and their themes will emphasize areas in which the Czech Republic is world famous. Our national pavilion is located in the Sustainability zone and is at one of the main entrances to the exhibition grounds. I believe that our citizens will come to see the EXPO and visit the pavilion. They will find a piece of the Czech land here, which is rightly called the land for the future. How do you promote Czech tourism and what is the contribution of tourism to the national product ? The Czech Republic enjoys a very good reputation in the UAE and the Gulf countries. It resonates above all human potential, a high degree of education and expertise, knowledge of languages, the ability to make contacts and adapt to local living conditions. Our country is perceived as industrially advanced, its diversified economy is an example for the UAE to achieve one of their strategic goals. Our strength is that we can export first-class products and at the same time we are ready to transfer technologies that

Czech Republic is participating in Expo 2020 and the technological basis for its national exhibition is the system of extracting water from air humidity using solar energy

are of great interest in the UAE. The Czech Republic traditionally enjoys a reputation as an ideal tourist and spa destination, enabling UAE citizens to visit the Czech Republic for treatment, rehabilitation and physiotherapy. Our embassy is aware of its position and responsibility in the mutual Czech-Emirate relationship and strives in its daily work to further profile the strong image of the Czech Republic. The direct flights between our countries operated by the Emirates, the Fly Dubai and Air Arabia are important pillar of our bilateral cooperation. How do you see the future of joint economic relations during the coming period? In the next period, we would like to continue to organize visits by delegations and business missions on both sides and it will depend on how the possibilities will open up after the COVID19 pandemic. We are motivated by the successful participation of Czech companies at the IDEX 2021 defense industry fair in Abu Dhabi, Gulf Food 2021 in Dubai and Arab Health 2021 in Dubai. Of course, we expect the most from the motivation during the EXPO exhibition in Dubai, when we expect visits of our political delegations accompanied by business missions. During the EXPO, we are preparing to sign a bilateral agreement on economic and technical cooperation with the UAE, on the basis of which we could schedule the first meeting of the Joint Commission. During the EXPO, we also plan projects to support economic diplomacy (PROPED) focused on spas/healthcare, glassmaking, and the presentation of Czech food products. Note: this article was prepared in cooperation with the CzechTourism, Czech Trade and Czech Invest

RAK BUSINESS

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BUSINESS

52%

Growth in the number of branches of foreign companies in UAE within 10 years 20

TECHNOLOGY MAE IN RAK STUDIES

HE. Abdullah bin Touq Al-Marri, The minister of Economy

ver the last ten years, from 2011 to 2020, the Ministry of Economy reported that the number of foreign companies having licensed branches in the country achieved a growth of 52%. The

total number of branches of foreign companies operating in the country until the end of last year reached 2577 branches registered and licensed by the Ministry of Economy belonging to more than 114 nationalities. British companies led foreign companies in terms of the number of their branches registered in the country at a rate of 11.6% of the total number of these companies, followed by US companies with 8.3%, then Indian companies with 5, 5%, followed by South Korean companies with 5.1%, followed by French companies with 4%.

BUSINESS

TECHNOLOGY

THE 100% FOREIGN OWNERSHIP LAW FOR COMPANIES AND PROJECTS, REPRESENTS A NEW INCENTIVE THAT CONTRIBUTES TO INCREASING THE ATTRACTION OF COMPANIES TO WORK FROM UAE

These companies invest in projects and economic activities that cover various vital sectors in the country and help to support the diversity and competitiveness of the national economy. The Minister of Economy, Abdullah bin Touq Al-Marri, said: “The growth in the number of foreign companies over the last decade represents a practical translation of the state’s continuous efforts with the support and directives of its wise management, to provide an attractive business environment for foreign companies and attract foreign direct investment through the ongoing

JAGGAER WHITEPAPER SUPPORTS MIDDLE EAST START-UP ECOSYSTEM WITH ADVICE ON DIGITAL PROCUREMENT JAGGAER has released its latest whitepaper, which provides a roadmap to recovery for SMEs in the region through the use of digital procurement following the challenges many have faced as a result of COVID-19.

development of frameworks.Leg-

center for finance, business, trade

Titled SMEs to the Rescue – Starting anew using digital procurement to compete in the digital economy, the whitepaper highlights problems faced by SMEs in the wake of the pandemic related to supply disruptions, shifting demand patterns, the drop in work, and economic uncertainty. The report pointed to findings from THE AUTOMATION AND EVALUATION the UK SME market, which highOF REPORTS POWERED BY AI AN lighted that 80% of the 5.9 milOPPORTUNITY TO GROW THE SME lion SMEs in the UK private sector BUSINESS BY INCREASING EMPLOYEE reported an impact on revenue PRODUCTIVITY AND ACHIEVING SAVINGS IN PURCHASE PRICES due to COVID-19, with half of the respondents fearing they would be out of business within the year. Last year, a survey by the Dubai Chamber of Commerce saw 70% of respondents, of which 75% were SMEs, say they expected to close their doors permanently as a result of the pandemic. Hany Mosbeh, Vice President of Sales Middle East & Africa, JAGGAER, said: “Today, a sustainable business model depends on dematerialising and digitising procedures and processes. Procurement faces constantly evolving challenges enveloping every element in the supply chain. Purchasing thus holds a central role in this context. The use of technologically advanced platforms for managing procurement is becoming strategic to rebuilding a resilient and agile supply chain. “Our JAGGAER NOW source to pay solution can support SME’s in the region by automating and formalising management of the entire purchase cycle, ranging from a selection of suppliers to invoicing, integrating everything in a single online environment. This will be invaluable to SME’s from a staff productivity

and investment”

perspective, as well as creating savings on purchase prices,” Hany added

islative and regulatory support for economic activity, facilitate business practices in the country and reduce costs, develop infrastructure and digital services for business activities and provide incentives and facilities to improve their success, and develop integrated strategies and initiatives that support the growth of entrepreneurs and businesses operating in the country and enable them to expand and reach regional and global markets “. He stressed that “the growing growth in the number of foreign companies operating in the country reflects the confidence of the global business community in its investment environment and confirms the health of the approach chosen by the UAE by creating an open and flexible economic environment and developing its components as a leading global

RAK BUSINESS

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SPATIAL MARC VAN DEN BROUCQUE:

WE ARE DEDICATED TO DELIVER THE HIGHEST QUALITY CREW TRAINING SIMULATORS INTERVIEWD BY: KHAWLA IBRAHIM

RAS Al Khaimah offers the business community an attractive lifestyle, with a high employee retention, this was confirmed by Marc Van den Broucque, Managing Director, Special, the world’s leading manufacturer of flight training equipment, during an interview with RAK Business magazine to highlight the company and last expansion achieved after moving to a larger facility is 73% more than it was in the past to keep pace with the increase in its production volume, which amounted to 50%. More details in the following interview: What is Spatial, where did it start and how was the beginning? Spatial is dedicated to creating the best environments for commercial aviation crews to be trained to the highest possible standards. We are one of only a handful of companies in this industry globally. Spatial started in Dubai in 2007 when it was awarded its first contract with Emirates Airlines and moved to Ras Al Khaimah in 2009. Through a tremendous amount of hard work and dedication of our staff we have grown to become one of the world’s leading suppliers of training simulators for cabin and flight crew alike. What are the competitive advantages and facilities offered to you by Ras Al Khaimah, tell us about the company’s recent expansion in RAKEZ? Ras Al Khaimah and RAKEZ have both played a fundamental part in our journey and growth up until this point. They have been extremely sup-

BUSINESS

MADE IN RAK

THE COMPNAY AIM IS TO PROVIDE AIRLINES AND TRAINING CENTRES WITH THE MOST RELIABLE, HIGH FIDELITY CABIN CREW TRAINING SIMULATORS ON THE MARKET AT A TOTAL COST OF OWNERSHIP BELOW OUR COMPETITORS’ OFFERINGS. IT IS AN AIM THAT WE ARE PASSIONATE ABOUT ACHIEVING.

Henry Robertson and Marc Van den Broucque

RAK BUSINESS

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portive of our growth over the years and in particular RAKEZ was very flexible when we outgrew our previous premises and needed a customized facility to house our business for the future. Our new facility, which was opened this year, will allow us adequate room for growth for the next decade. We are a very niche business and have very specific needs that often do not fit with the “standard” requirements of other businesses. We have been fortunate that RAKEZ has shown us great support over the years by finding bespoke solutions for us.

RAKEZ have been extremely supportive of our growth over the years and in particular the flexiblility when we outgrew our previous premises and needed a customized facility to house our business for the future

What is the importance of your presence in the UAE market? Serving clients all over the world, it is essential for us to be located at a major logistical hub. Our location in the UAE provides that and ensures we are in easy contact with our clients across the globe, from New Zealand to Seattle and nearly every time zone in between. The UAE business community continues to grow and we are seeing more and more opportunities to partner with local entities who require our rare combination

of composite manufacturing expertise combined with a very strong automation capability. This has resulted in a number of projects in other sectors including healthcare, leisure and other industries. What are the most prominent products that you offer? Who are your main clients? Our main products are cabin emergency evacuation trainers, cabin service trainers and door trainers for all types of aircraft across the Boeing and Airbus fleets. We take time to understand our clients’ exact requirements and no single product is identical to the next. Our client portfolio is made up of the world’s leading airlines including Qantas, Lufthansa, Emirates and British Airways. We are proud to be growing our client base year-on-year. How important and essential are your services and products in the world of the aviation industry? Our devices are fundamental in providing our clients with the ability to simulate proper use of aircraft without the need to leave the ground. Our devices can simulate any type of emergency and/or service scenario and equip cabin and flight crew with the ability and knowledge needed when performing their assigned duties. This allows them to be certified by the General Civil Aviation Authority and other equivalent regional regulators around the world for their jobs.

BUSINESS

MADE IN RAK

capacity this year and have significant room for further growth. Are there pre-made products? or it is a tailor made according to your customer requests? Everything we do is tailor made and specific to our customers’ exact requirements. It typically takes a number of weeks to design and agree the exact specification with our clients, after which we start the production process. What after-sales services do you provide? Do you offer any other advice to clients? As previously mentioned, we provide exclusive channels for each of our clients to ensure they have a dedicated round the clock support. We offer 24-hour remote technical support at no additional cost to the client for the lifetime of all our devices.

Why should clients choose Spatial? What about the quality guarantee that you provide to the Client? We are a very customer focused organization. We believe in building and maintaining a lasting relationship with all of our clients from the first day onwards. One of our unique selling points is that we provide lifetime remote maintenance support at no extra cost to our clients and have dedicated support channels for each client. We are a market leader when comparing the length of warranties offered on all of our devices Where are your markets, how do you compete in them? Given our target market is so specific, our reach is global. Our mission and values set us apart as an establishment that does everything possible to proactively support the industry. We really do put our customers at the heart of everything we do, and we pride ourselves on the level of care and attention we provide to each and every one of our clients. Our retention rate for repeat customers shows our success in this area. What is your market share? What about your production capacity? Given the niche nature of our industry it is very difficult to define our exact market share, but we can confidently say we are the No.1 or No.2 player in our industry worldwide. Having moved to new premises we have significantly expanded our production

The aviation sector has been greatly affected by the Corona pandemic? How did this affect your projects? Our clients have been significantly impacted by the global pandemic. We made a very conscious decision at the start of the pandemic that we would do everything we could to support our clients through this. As a result, we agreed to reschedule some projects to suit our clients’ needs. We also developed new ways of working, such as virtual acceptance tests for our products which allowed us to keep delivering products across borders in spite of the restrictions in place because of the pandemic. We are proud to have maintained our commitments to clients and to have worked in partnership with them. We will continue doing so until the pandemic recedes. What about your future expansion plans? Having invested in new premises despite the pandemic we are well positioned for future growth. We are actively exploring a number of opportunities outside our core civil aviation training business where we can use our current expertise to build world-class products. How did you find life in Ras Al Khaimah and how do you spend your free time there? We find our staff retention is very high, which we partly attribute to the attractive lifestyle that RAK has to offer. Particularly for outdoor activities, such as fishing, cycling and all kinds of watersports it is a fantastic location. The natural beauty of the Emirate is also everywhere to be seen, from the deserts near Al Hamra to the top of Jebel Jais. RAK BUSINESS

Spatial started its activity in Dubai in 2007 with its first contract with Emirates Airlines The company moved to Ras Al Khaimah in 2009, and from its headquarters in Rakez, it became a center for serving its global customers from the prestigious airlines Our main products are cabin emergency evacuation trainers, cabin service trainers and door trainers for all types of aircraft across the Boeing and Airbus fleets

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Agricultural Sector Productivity in Ras Al Khaimah

FACTS AND CHALLENGES

In this report, we will try to shed light on the production and productivity of the agricultural sector, and summarize the most important challenges and ways of addressing them, especially those recommended by the Ministry.

A) USES OF AGRICULTURAL LAND IN RAS AL KHAIMAH:

PREPARED BY

RAK Center for Statistics and Studies

The government of Ras Al Khaimah attaches special importance to the agricultural sector since it is the main provider of farm and livestock products. Therefore, areas planted with fruit trees, field crops and vegetables increased by 57% in 2019 compared to 2015, with a growth of 23% in production. The UAE and Ras Al Khaimah make great efforts to augment food and water security to cope with future changes, especially after the outbreak of the Coronavirus and its impact on supply chains. The Ministry of Climate Change and Environment also advocates and encourages the use of modern production technologies, such as hydroponics, vertical farming, genomics and the outputs of the Fourth Industrial Revolution, to overcome challenges and achieve the targeted food security.

34100

Dunam is the cultivated area in Ras Al Khaimah for 2019, an increase of 19% over 2015

76%

Of the total cultivated land, planted with fruit trees, field crops and vegetables

57%

Increase in the areas planted with fruit trees, field crops and vegetables for the year 2019

The area of cultivated land in Ras AL Khaimah expanded to 117,164 donum in 2019, up from 98,304 donum in 2015, with an increase of 19%. In 2019, the lands planted with fruit trees, field crops and vegetables occupied 89,144 donum, 76% of the cultivated land. This includes 33% of fruit-planted lands, 18% of fallow lands, and 6% (6,915 donum) of forest trees and other lands of undefined use. See Table (1) - Figure (1).

Table (1): Distribution of Land in Ras Al Khaimah by Crops, 2015 -2019 Crop Item

2015

2016

2017

2018

2019

Fruit Trees

29,990

31,636

31,724

31,911

38,684

Field Crops & Fodders

13,504

13,497

13,594

13,770

34,145

Vegetables

13,365

10,999

14,607

14,657

16,315

Temporary Fallow

18,052

22,217

18,991

18,316

21,105

Forest Trees

129

135

145

150

Other Lands

23,264

5,424

6,765

Total

98,304

101,748

84,486

84,228

117,164

Source: Ministry of Climate Change & Environment

BUSINESS

STATISTICS STUDIES

B) AGRICULTURAL SECTOR PRODUCTION 1) Agricultural Production: The production of field crops, vegetables and fruits increased from 236,000 tons in 2015 to 290,000 tons in 2019, a growth of 23%. Thus the total production value increased from AED 652,000 in 2015 to AED 654,000 in 2019, an increase of 0.3%. It is noted that the increase in the value of production is not commensurate with the quantity of that production. The reason behind this is that the quantity and value of fruit production have declined during that period, at rates of approximately 31% and 38%, respectively. Although there was a significant increase in the quantity and value of production of field crops and vegetables, they faced years of increase followed by ones of decline, which negatively affected the value of production, in addition to the impact of low prices during the seasons of agricultural production and the availability of similar imported quantities from abroad, see Table (2)

Figure (1): Distribution of Land in RAK by Crops, 2015

290.000 tons, the amount

Other Lands

Forest Trees 0%

Temporary Fallow 18%

Fruit Trees 33%

of production of field crops and fruit vegetables for 2019, an increase of 35% over 2015

450,000

Vegetables

14% Field Crops & Fodders 29%

The number of goats, sheep, camels and cows for the year 2019 increased by 12% over 2015

Table (2): Production Quantity and Value for Field Crops, Vegetables and Fruit Trees in Emirate, 2015-2019 Crop Item

Field Crops

Vegetables

Fruit Trees

Total

Production Value Production Value Production )Ton( ) AED 000( )Ton( ) AED 000( )Ton(

Value ) AED 000(

2015

128,019 196,853 56,939

119,750 51,026

335,230

235,984

651,833

2016

120,061 183,683 44,788

93,251

53,732

353,072

218,581

630,006

2017

172,181 263,143 78,540

162,064 33,015

236,426

283,736

661633

2018

125,501 192,361 82,501

224,054 34,457

203,879

242,459

620294

2019

194,618 293,849 60,300

150,764 35,454

209,221

290,372

653834

Source: Ministry of Climate Change & Environment

Production )Ton(

Value ) AED 000(

2) Livestock Production Livestock production in Ras Al Khaimah increased to 450,000 heads of goats, sheep, camels and cows in 2019 compared to 403,000 heads in 2015, an increase of 12%. Goats came in the first place with a rate of 77% in 2019, followed by sheep (19%), camels (2%), and cows (1.6%). Noting that the majority of livestock dealt with in Ras AL Khaimah markets is imported from countries such as India, Pakistan, Somalia, Sudan, Australia, Kazakhstan and others. These numbers have helped meet the local demand and export large sum of them to other emirates and neighboring countries, without neglecting the livestock raised in private farms by citizens to meet their consumer needs sometimes and for trade at other times. As for the importance of livestock in Ras Al Khaimah according to the overall numbers in the UAE, the figures indicate that it ranged between 8.3% as the lowest percentage in 2015 and 9.0% as the highest one in 2019, and it reached an average of 8.6% during the period 2015-2019. See table (3) – Figure (2) RAK BUSINESS

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Table (3): Number of Livestock in Ras Al Khaimah by Type, 2015 -2019 ‫النـــوع‬

2015

2016

2017

2018

2019

Goats

306489

312342

332793

339565

346732

Sheep

82392

83836

84618

85636

86849

Cows

5343

5427

5672

5840

7227

Camels

8295

8742

9124

9277

9285

Total-RAK

402519

410347

432207

440318

450093

Total-UAE

4865400

4887791

4985912

5066991

4989588

8.3%

8.4%

8.7%

9.0%

RAK/UAE (%)

Source: Ministry of Climate Change & Environment

Figure (2): Number of Livestock in Ras Al Khaimah by Type, 2019 Cows

Camels

19%

Sheeps

Goats 77%

C) PRODUCTIVITY OF AGRICULTURAL SECTOR: 1. Productivity in Field Crop Farms: During the period 2015-2019, the quantity and value of field crop production witnessed a fluctuation that was slight sometimes and noticeable at other times, although the cultivated lands between 2015 and 2018 were so close in areas, about 13.6 thousand donum on average. As for the year 2019, the cultivated area soared to 34.1 thousand donum, a rate of approximately 148% compared to 2018. This rate was not matched by a significant increase in production, either in ton or in dirham, which negatively affected the productivity per donum amounting to about 6 tons and AED 9,000 in 2019, compared to 9 tons and AED 14,000 in 2018. See Table (4). Table (4): Productivity of Field Crops, Vegetables and Fruit Trees Productivity of field crop farms

Productivity of fruit farms

Production )Ton(

Value ) AED 000(

Production )Ton(

Value ) AED 000(

Production )Ton(

Value ) AED 000(

2015

9.5

14.6

4.3

9.0

1.7

11.2

2016

8.9

13.6

4.1

8.5

1.7

11.2

2017

12.7

19.4

5.4

11.1

1.0

7.5

2018

9.1

14.0

5.6

15.3

1.1

6.4

2019

5.7

8.6

3.7

9.2

0.9

5.4

Source: Tables (1) & (2).

productivity of

vegetable farms

34100 Donum the cultivated area of 2019 soared to a rate of approximately 148% compared to 2018

A decrease in the quantity and value of production in vegetable farms in 2019 compared to 2018, despite the increase in the cultivated area

A slight improvement in the productivity of fruit farms for 2019 compared to 2018, despite the increase in cultivated areas by 21%

2. Productivity in Vegetable Farms: The productivity of vegetable farms witnessed an increase in quantity and value during the period 2015-2018, despite the drop in 2016. However, they declined in 2019 to 4 tons and AED 9,000, compared to 6 tons and AED15,000 in 2018, even though the cultivated areas increased by 11% in 2019. See Table (1). 3. Productivity in Fruit Farms On the other hand, the productivity of fruit farms declined markedly in quantity and value during the period 2015-2019 by 47% and 52%, respectively. Nevertheless, the slight improvement and the increase in cultivated areas by 21% in 2019, compared to 2018, were not enough to stop the productivity decline over the period.

D) CHALLENGES TO THE AGRICULTURAL SECTOR: The challenges facing the agricultural sector can be summarized as follows: 1. The limited agricultural land in Ras Al

BUSINESS

STATISTICS STUDIES

The challenges facing the agricultural sector are the limited agricultural land in Ras Al Khaimah, the lack of agricultural water, the marketing of local products in light of intense competition and the high cost of the product

CONCLUSION

Khaimah due to the sprawl of residential and recreational projects. The Ministry has promoted the vertical and hydroponic farming as optimum methods in desert areas and places where no agriculture land is available. These methods can produce crops such as cucumbers, tomatoes, cherry tomatoes, peppers, lettuce, strawberries and mushrooms. 2. Shortage and salinity of agricultural water. Hydroponic and vertical agricultural methods has been adopted as an alternative. Also, modern irrigation methods and water recycling techniques have been followed, in addition to the invention of tools to produce water from untapped sources such as fog or air. In this context, the Abu Dhabi Future Energy Company (Masdar) and its partners will launch a project in August 2021 to extract water from air in commercial quantities and on a continuing basis. 3. Marketing of domestic agricultural products. The Ministry is working on developing a strategy to address this challenge by concluding local contracts to market farmers’ products until a quasi-governmental authority is established. This authority will be responsible for packaging, transporting and marketing the agricultural products in the UAE, in addition to providing support, expertise and advice to farmers. 4. Intense competition and high cost of products, especially in the seasons of production. Farmers, therefore, may lose and give up their agricultural business. It is necessary to rationalize production costs, increase government support, or sometimes impose taxes on imported agricultural products that are available locally, or prevent importing them temporarily or whenever necessary.

Agricultural production in the UAE and Ras Al Khaimah has witnessed a remarkable increase during the period 2015-2019, at rates of 28% and 23%, respectively. Thanks to the encouragement and support provided by the Ministry of Climate Change and Environment, which should be more comprehensive and subject to review. The purpose is to develop the entire agricultural sector, and achieve the success of the UAE policy for food security and sustainability, especially after the outbreak of the Coronavirus and its impact on supply chains. Despite the challenges, new job opportunities and agricultural investments are needed to be created for national personnel. Thus, the Ministry signed several memoranda of understanding with the private sector to provide production inputs and promote and market domestic agricultural products. The Ministry also will adopt and support innovative agricultural ideas that are based on remote sensing techniques, hydroponic and vertical farming, sustainable irrigation systems and others. The aim is to overcome challenges, achieve the sector’s objectives, and enhance its contribution to the economy of the state and the emirate.

Sources: 1. Ministry of Climate Change and Environment. 2. Federal Competitiveness and Statistics Centre 3. Ras Al Khaimah Center for Statistics and Studies.

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OVER THE TOP

ECONOMY DEVELOPMENT SELF-GROWTH

BUSINESS

ECONOMY

INCOMING FOREIGN DIRECT INVESTMENTS TO THE UAE ACHIEVED A GROWTH OF 44.2% DURING THE PAST YEAR 2020.

UAE.. A global environment for investment and competitive privileges for investors Strategically located between Europe, Asia and Africa, and just an eight-hour flight away from half of the world’s population, the UAE’s position at a global crossroads has enabled it become a genuine economic hub – a fulcrum for trade, exchange, innovation and value creation.

in the same period. The country also ranked first in the Arab “Projects of the 50”, the landmark series of ecoworld – and 15th globally – in the Kearney FDI Confidence nomic, social and developmental initiatives that Index for foreign direct investment in 2021, advancing four have set the national priorities for the next 50 years, furplaces in 2020. According to the results of the Global Forthers UAE’s deeply-rooted approach to build an attractive eign Direct Investment report for 2021, issued by the United environment for foreign investment, with new regulations, Nations Conference on Trade and Development “UNCTAD”, laws and incentives to draw investors, entrepreneurs, innothe UAE also ranked first in the Arab world and 15th globvators and professional talents from around the world. A ally in terms of its ability to attract total of AED58 billion has been FDI. The report stated that the UAE allocated in the UAE’s 2021 UAE IS A GLOBAL INVESTMENT budget to instigate the program, attracted foreign direct investment ENVIRONMENT, DUE TO ITS which will add further to the amounting to $19.9 billion, with a STRATEGIC LOCATION, STRONG nation’s advantages of stability, growth rate of 11.24 percent on 2019. FINANCIAL RESERVES, LARGE favorable regulation, strong SOVEREIGN WEALTH FUNDS, AND financial reserves, large soverHere’s what makes the UAE STRONG GOVERNMENT SPENDeign wealth funds and access to resilient in the face of adversarING, IN ADDITION TO PROVIDING resources at competitive prices. ies, placing it as a safe destination ENERGY AT COMPETITIVE PRICES. for global investment regardless of The UAE’s leading perforcircumstances: mance during the biggest test of all time - the COVID-19 outbreak – underlines the country’s solid economy and Capital inflows The UAE’s economic strength is a key reason it continues adaptability to global challenges. In fact, the UAE witnessed to attract FDI from around the world. Its GDP was $421 bilgrowth during the global pandemic. FDI into the UAE lion in 2020 and it ranks second globally in terms of finantotaled $19.88 billion in 2020, representing a growth of 44.2 cial assets from soverewign wealth funds. It also ranks 11th percent from 2019. The balance of cumulative inward FDI globally in Logistical Performance (first in the region), 12th amounted to around $174 billion, a growth of 12.9 percent

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The UAE ranked third globally, and first regionally, in the strength of investment in infrastructure projects and investment in facilities facilities over the past years, as part of the Infrastructure Index 2020

globally in Infrastructure Quality (first in the region), 13th globally in the Flow of Foreign Direct Investment Issued for 2020 (first in the region), 16th globally in the Ease of Doing Business report (first in the region), and 25th globally in the World Economic Forum’s Global Competitiveness Report (first in the region).

Commodity trade The UAE occupies a leading position globally and regionally in commodity trade, ranking third in the world in re-exports, and is among the list of the most important 20 global exporting countries and among the list of the most

important 20 countries in global imports.

Sophisticated infrastructure Investors into the UAE also benefit from world-leading infrastructure, which benefited from an injection of AED4.5 billion in the 2021 budget. The UAE advanced five ranks in the “Infrastructure Index” and ranked 28th globally in the World Competitiveness Yearbook 2020 report issued by the IMD World Competitiveness Center in the Swiss city of Lausanne. In the same report, the UAE ranked third globally and first regionally on the strength of investment in infrastructure projects and investment in facilities over the past years. In addition, the UAE ranked first in the list of countries with the best electronic infrastructure in the world and 31st for quality of digital life in 2020.

Free zones There are more than 40 specialized free zones in the UAE, each with strong relations with regional and international trade associations. It is a member of the World Trade Organization (WTO) and the Greater Arab Free Trade Area (GAFTA), has free trade agreements with the Euro-

BUSINESS

ECONOMY

The “50 projects” cover a number of vital sectors, including economy, entrepreneurship, investment, advanced skills, digital economy, space and advanced technology, among others

pean Free Trade Association, Singapore and the European Union – with the goal of signing eight more in the near future. It has signed major trade and international treaties, and nearly 134 agreements to protect and encourage Investments with its business partners.

Competitive costs

UAE is characterized by competitive financing costs, high levels of liquidity, a strong banking system, low inflation, low tariffs ranging between zero and 5 percent for almost all goods – and no commercial taxes on companies or income. The UAE is developing its network of tax information exchange agreements and has signed 117 valid double taxation agreements with countries across five continents, including most of the UAE’s trading partners. The UAE also has no restrictions on foreign exchange or the movement of funds and remittances.

Legal landscape The UAE’s regulatory environment has been constantly refined to support business and investment. At the turn of the millennium, for instance, the state enacted a law to regulate and protect industrial property for patents and industrial designs, while the corporate governance pro-

cess was also upgraded. The country made perhaps the most significant step in 2021, however, when it allowed 100 percent foreign ownership of companies in a wide number of sectors, removing the need for an investor to secure a local partner. Among its many benefits, the Foreign Direct Investment Law protects project funding, guarantees the right to use real estate and conduct international financial transfers, and preserves information confidentiality. As seen in “Projects of the 50”, the visa and residency system is also subject to constant revision to attract skilled professionals in key fields, particularly in health, scientific research, technology and cultural sectors. The UAE is also a member of the World Intellectual Property Organisation, where the country protects intellectual property rights and trademarks, and upholds anti-piracy laws. Taken together, it’s the reason the UAE ranked 16th globally in the World Bank’s “Ease of Doing Business” report for 2020 and the first globally in “Paying Taxes” and “Obtaining Electricity”. It was second globally in “Building Permits”, and 10th globally in “Registering Property” and “Protecting Minority Investors”.

Agility The world is witnessing a redrawing of the geo-economic map, with new centers of economic influence challenging the current ones. It is in this context that the UAE is working to become a competitive economic power with genuine global influence, a place where investors can nurture, launch and ultimately export world-changing ideas. In just 50 years, the nation has made significant strides towards that goal and now “Projects of the 50” provides a new, integrated means of achieving it. By creating the optimum commercial and legal environment and then forging international partnerships with like-minded, future-focused countries, the UAE will not only expand and diversify its own economy, but be a catalyst for regional and global growth

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CONNECTING WITH OFFLINE CONSUMERS

TRENDS AND TACTICS FOR SUCCESSFUL MARKETING CA M PA I G NS In today’s evolving technology-first world, the connected consumer effectively lives on digital platforms, surrounded by connectivity devices and active on real-time communication tools. While connected consumers may range from young digital natives to full-time working professionals and their interests and demands vary – commonalities in their behaviors are also apparent. Mobile devices have propelled them into a new dimension, one where they could be reading on their phones during transit or checking product reviews when face-toface with store sales representatives. Without question, connectivity is a constant state of being, applicable to many millions of people. However, what’s equally true is that another segment has, to date, remained traditional: the offline consumer.

Regional offline consumer outlook This applies to the Middle East, where there remain mar-

kets where connectivity is not seamlessly acquirable. Although approximately 280 million people across the region were connected to mobile internet by the end of 2020, a further 350 million were still without mobile internet connections – emphasizing the scale of offline consumers even today, as well as the varying level of digital maturity across the region. With these scenarios in mind, two questions have arisen from a brand standpoint: Firstly, are they looking beyond connected consumers? Secondly, how can they connect with potential offline consumers? While 70 percent of Middle Eastern organizations will have accelerated digital technologies adoption to transform their business processes and outreach capabilities by 2022, many will still be challenged to successfully reach those who do not fall into the connected consumer category. Although surprising to some, certain communities will continue resid-

BUSINESS

(GCC) countries have one of the highest rates of social media usage worldwide, with the United Arab Emirates and Qatar leading the global scene at 99%

DEVELOPMENT

audiences without connectivity access by leveraging the power of mobile. Various content sharing and discovery platforms enable users to share files and content even when offline, while in-app advertising can also drive huge volumes of downloads – yielding successful offline marketing results.

Key marketing considerations for businesses As businesses look ahead and chart a course for interacting with offline audiences, they should be aware of the latest trends and consider the marketing technologies that will be most beneficial to them. Firstly, it is apparent that the pandemic has changed the content consumption playbook for brands. Traditional cable or satellite service cancellations have led to a decrease in TV viewership, with consumers no longer watching TV ads or visiting stores to purchase products. Instead, an omnichannel mobile-oriented shopping experience has taken effect. The Middle East has witnessed exponential growth in over-the-top (OTT) videos and related services in recent times, and this momentum will continue through 2024[5] as OTT platform subscriptions continue rising.

ing in areas where reliable and uninterrupted connectivity issues persist, with content consumed in native languages. Fortunately, mobile represents an opportunistic gateway for brands to engage with this target audience, especially considering the challenges COVID-19 has posed. As of January 2021, the Middle East had witnessed a sizeable increase in mobile device activations with 23 percent year-over-year growth and e-commerce sales are expected to reach USD 48.6 billion by 2022 – a USD 21.7 billion increase from 2018[4]. The mobile phone is a constant companion for the Middle Eastern consumer wherever they are – at home, work, or social gatherings – and many brand marketers are proactively considering new ways to circulate mobile content in communities that lack internet access via offline marketing. In simple terms, offline marketing is reaching out to

Consumers, although advertently, also have declining attention spans, which businesses should view as an opportunity rather than a challenge. Short format videos lead to better engagement with consumers, and these should be pursued as a form of engagement with the offline consumer. Furthermore, while there are popular marketing technology tools that businesses use to efficiently drive campaigns, such as Google Analytics and Salesforce, it is worth highlighting a different approach for increasing user numbers from an application standpoint. Partnering with peer-to-peer (P2P) apps that target offline audiences, have an established user base, and boast notable expertise in app marketing can help drive quality downloads for one’s business and solidify successful engagement with offline audiences. For Middle Eastern businesses, the coming period represents an opportunity to reach out to offline consumers and acquire new customers through the power of mobile. Irrespective of limited internet access, mobile activation, payment, and subscription rates will continue increasing in the years ahead, broadening potential and possibilities. By pursuing OTT services, marketing technologies, and platform partnerships, businesses can interact with offline consumers like never before and build mutually beneficial relationships for the long term.

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BUSINESS

IS 1/2

IT PERMISSIBLE FOR A PUBLIC OFFICIAL TO REFRAIN FROM EXECUTING A COURT RULING? To answer the above question, we should first define Public Official and those charged with a public service. Federal Law No. (3) of 1987 Promulgating the Penal Code – as per the latest legislative amendment of Article 5 thereof on September 29, 2016 – stipulates the following: “A public official shall ipso jure be defined as any person in a federal or local position, whether legislative, execuJudge Ihab Al-Qouni tive, administrative or judicial, whether be appointed or The Delegated Legal Advisor to the elected, including: RAK DED 1. Persons entrusted with public authority and employees of ministries and government departments. 2. Members of the military forces. 3. Employees of security bodies. 4. Members of the judiciary, chairmen and members of legislative, advisory and municipal boards. 5. Any person assigned to a certain task by a public authority, to the extent of the delegated task. 6. Chairmen and members of boards of directors, directors and other employees of public authorities and institutions, as well as companies owned, wholly or partially by the Federal Government or local governments. 7. Chairmen and members of boards of directors, directors and other employees of societies and institutions of public interest. Shall be deemed same as a public official in the present Law, any person who is not included within the categories set forth in the preceding clauses, and who is engaged in a work of public service as assigned to them by a public official in charge under laws or regulations with respect to the assigned task”. Pursuant to Article (270) of the aforementioned Penal Code: “The penalty

LEGAL CONSULTANT

provided for in the preceding article shall apply on every public official or person in charge of a public service deliberately and unduly abstains from executing a judgment or order issued by one of the courts within eight days following the official warning; whenever the execution of the judgment or order falls within their responsibility”. To comment on this Article, we highlight the legal principle mentioned by the Federal Court in its judgment issued on May 10, 2004, where the ruling applying this Article stated the following: As provided by Federal Penal Code No. (3) of 1987/ Chapter 3: Suspending Judicial Procedures/ Article (270): “The penalty provided for in the preceding article [Article 269: Shall be subject to a jail sentence for a term not exceeding two years and/or to a fine not in excess of twenty thousand Dirhams] shall apply on every public official or person in charge of a public service deliberately and unduly abstains from executing a judgment or order issued by one of the courts within eight days following the official warning; whenever the execution of the judgment or order falls within their responsibility”. It is apparent that this text is absolutely unrestricted. The judgment thereof extends to the judgments and orders issued by the court, and there is no indication that it is restricted to judgments without orders. There is nothing to indicate the specification of the ruling stated therein. In order to apply Article (270) of the Penal Code, the law requires the following conditions: 1. The accused must be a public official or a person charged with a public service and responsible for the implementation of the judgment or order. 2. The Article must have both the material and moral elements. The material element is achieved by simply refraining from executing the court judgment/order. That refrainment must also be accompanied by a criminal intent, which merely means that the offender is aware of not executing the court judgment / order issued against them. To be continued...

BUSINESS

NEW HIRIGN

BADR AL-OLAMA ... APPOINTED AS CHAIRMAN OF EMIRATES POST GROUP COMPANY

EVA MUSCHEID ... DOUBLETREE BY HILTON RAS AL KHAIMAH APPOINTS NEW HOTEL MANAGER DoubleTree by Hilton Ras Al Khaimah is pleased to announce the appointment of Eva Muscheid as Hotel Manager. Muscheid brings 16 years of industry experience to the role. No stranger to the Hilton brand, she began her career in Germany at Hilton Mainz. During her tenure with Hilton, Eva Muscheid has held positions across multiple markets including Germany and the UAE. The new role at DoubleTree by Hilton Ras Al Khaimah marks six years of her working in the emirate, having previously held the position of Cluster Director of Business Development for a selection of Hilton properties from 2016 to 2021.

Emirates Post Group Company (EPGC) has announced the appointment of Badr Al-Olama as the Chairman of the organization. With Al-Olama at the helm, and with his strong leadership and business acumen, EPGC is set to forge ahead with its diversification, digitalization and expansion efforts aimed at further enhancing the presence of its brands in local, regional, and international markets. A seasoned expert with extensive knowledge in various sectors, Al-Olama holds prominent leadership positions across various companies and organizations. He is the current Executive Director of the UAE Clusters at Mubadala’s Investment Company.

ALAIN KADDOUM .. APPOINTS ALAIN KADDOUM AS MANAGING DIRECTOR FOR THE MIDDLE EAST OFFICE AT SAVOYE As part of its mission to solidify its position in the Middle East as a leading global warehouse automation integrator and software publisher, Savoye has announced the appointment of Alain Kaddoum as the Middle East Managing Director. With Kaddoum now on board, Savoye will enhance its long-term strategy to become one of the leading providers of supply chain solutions in the region, combining hardware and software according to customer needs such as manual, semi-mechanised, mechanised, highly automated, or robotised installations. The recent designation of Kaddoum to the role was due to his previous experience and knowledge in the said field.

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What about business plans and planning? As we all have seen, it has been extremely difficult to plan ahead even for the short term in a constantly everchanging and unpredictable near future, regardless of the nature of the business. This has put in jeopardy all myths of orderly planning and business forecast. Therefore, adapting to constant change has become more than a necessity. Thinking ahead is still valid, however new means for planning projects has imposed itself and “Scenarios” are inevitably replacing “Plans”.

THE SHIFT… IS IT OPTIONAL? 1/2

That question in the business world of today is in itself no longer valid! Simply because the change is happening regardless of the choice we make! For this issue, we have chosen to touch on this extremely important topic and review this matter together with our dear readers from the business community, entrepreImad Eddine Oubiri neurs, business leaders and professionals Business Development Executive in an attempt to answer some of the persisting questions that arose echoing from the numerous repercussions of COVID-19 pandemic that caught people and businesses by surprise with a drastic, unprecedented and indelible impact. This is said, amongst endless of concerns and questions that are arising: How could we adapt ourselves, our activities, our businesses to the NEW NOW & THE FUTURE? And what exactly has permanently changed? And how should we cope up and sustain?

Is the shift just digital? Most of businesses are under the impression that transformation is only about going digital. Digitalization certainly is one out of countless of prerequisites for the new era. While our no-meet up virtual business has imposed itself on us and e-commerce, e-trading and other means of doing business have become a must, other important requirements have emerged alongside with the new tools we are using in an attempt to sustain.

What IS radically changing? The new reality and new economic order are showing that public and private sectors’ roles and responsibilities have drastically changed, as governments are no longer solely responsible for support and economic development. Same would apply to NGO’s. Businesses success and sustainability are conditioned by how business is adapting to change, how agile, how flexible it is in transforming and integrating itself in the new ecosystem of today. Criteria will no longer be based on how much profit you make year on year, or how many staff you employ or how international you are going as a business. In other words, knowledgeable and well-informed businesses – no matter their financial status – will furiously compete in a knowledge-based economy that is eliminatory by default.

How can financial challenges be tackled? Most businesses are concerned about that crucial question. “We need to sustain and make a living!” Many would shout out! Well, the question could be answered by the business organizational behavior itself and how businesses act or react! We have seen that many businesses turned to the inevitable option of staff compression or lay off option, cutting cost and budget according to firsthand common sense. But is it really the solution? We humbly believe there are more options than one might think or believe, including but not limited to: Creating alliances and partnerships, battering services and commodities, lessening competition through cooperation and exchange, knowledge and know-how transfer and many more. To be continued….

BUSINESS

HOW TO PLAN, MEASURE AND ACHIEVE YOUR MARKETING GOALS? Without setting clear marketing goals, you’re basically directionless – and working to achieve vanity metrics that don’t necessarily help you achieve your overall business objectives, Here are some book help you to get the job done.

THE ART OF DIGITAL MARKETING By: Ian Dodson The author presents an innovative methodology for successful digital marketing, centered on the customer by reflecting his desires, needs, preferences and inclinations, where the development of digital marketing is not related to brands but to the practice of consumers and achieving more control over their choices. Where you can learn what the customer is actually thinking and go from there, rather than preloaded resources, you can constantly tweak your approach based on real interactions with real customers every day.

DIGITAL MARKETING By: Dave Chaffey, Fiona Ellis-Chadwick

THE 1- PAGE MARKETING PLAN

Digital Marketing provides the most comprehensive guide to all aspects of using the Internet, digital media and marketing technology to achieve the goals of integrated multichannel marketing. This streamlined seventh edition provides comprehensive, practical guidance on how companies can get the most out of digital media and technology to meet their marketing goals.

Whether you’re just starting out or are an experienced entrepreneur, The 1-Page Marketing Plan is the easiest and fastest way to create a marketing plan that will propel your business growth. The book presents a simplified marketing plan that almost literally consists of one page divided into nine squares that will enable you to develop a special advanced marketing plan that goes through three stages, which is the stage that precedes the marketing process. By converting potential customers into existing customers who buy from you, the post-marketing process emphasizes gaining customer loyalty.

Readers will learn best practice for developing a digital marketing strategy, plus success factors for key digital marketing techniques including search marketing, conversion optimisation and digital communications using social media.

PERSONAL GROWTH

By: Allan Dib

DIGITAL MARKETING STRATEGY By: Simon Kings north This essential and book provides , stepby-step framework to the planning, integration and measurement of each digital platform and technique, all tailored to achieve overarching business, this edition formulating the best corporate strategy rather than offering a one-size-fits-all model. This book gives you the tools to design your own strategy according to your unique business needs. This book analyzes the core technologies and digital marketing platforms including: social media, content marketing, search engine optimization, content marketing, user experience.

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TOURISM

RAS AL KHAIMAH RECORDS HIGHEST EVER VISITOR NUMBERS FOR JULY 2021

UPDATE DEVELOPMENT MARKETS

Ras Al Khaimah Tourism Development Authority (RAKTDA) has announced the highest number of visitors ever to the Emirate, with an impressive 109,048 arrivals in July. Bolstered by the opening of the world’s largest Hampton by Hilton at the beginning of July, which welcomed more than 6,000 guests during its first four weeks of operations, the report follows the easing of border restrictions from the UK, with the UAE moving to the Amber List as of Sunday 8th August. The bumper month follows a healthy H1 performance for the Emirate, as it welcomed over 223,580 international visitors and 206,844 UAE residents, a total increase of almost 40% vs 2020 (39.5%) between January-June. The Emirate also achieved a visitor satisfaction score of 98% for the first half of 2021, the highest ever percentage reported for the destination, according to Nielsen, along with the highest net promoter score among international visitors recorded over recent years.

BUSINESS

UPDATE

MARJAN ISLAND WELCOMES THE WORLD’S LARGEST HAMPTON BY HILTON HOTEL Marjan, the master-developer of freehold properties in Ras Al Khaimah, has welcomed the world’s largest Hampton by Hilton to Al Marjan Island, its flagship mega-development and one of the region’s preferred tourism and investment destinations. Marking its debut in Ras Al Khaimah, Hampton by Hilton Marjan Island has opened doors to guests offering spectacular sea and island views across its 515 rooms. The fourth global hotel brand to open in Al Marjan Island, Hampton by Hilton has a development value of AED 450 million which will further increase the hospitality offering of the island and support Ras Al Khaimah’s tourism development strategy. Named the Gulf Tourism Capital for 2021 by the Gulf Cooperation Council, Ras Al Khaimah is recognised as the world’s first ‘safe’ city, certified by Bureau Veritas, and the first Emirate to receive the World Travel and Tourism Council (WTTC) ‘Safe AL MARJAN ISLAND WAS SELECTED Travels’ stamp. BY THE HOTEL DEVELOPER DUE Eng. Abdulla Al Abdooli, CEO of TO ITS UNIQUE LOCATION AND Marjan, said: “With the new HampTHE HUGE POTENTIAL OF REAL ton by Hilton Marjan Island openESTATE DEVELOPMENT PROJECTS ing doors to guests, visitors to Ras Al Khaimah have an added hospitality destination to choose, assuring them world-class service and a relaxed beach lifestyle. This will further add to the appeal of Al Marjan Island to visitors, both from within the UAE and abroad, for staycations and Eng. Mohamed Hanafy, Owner Representative at MR Properties, the owner of the hotel, said: “We are delighted to open doors to a spectacular new hospitality experience in Al Marjan Island with the new Hampton by Hilton, the world’s largest under the brand. We chose Al Marjan Island for its location given the potential the development has and being inspired by its strong performance in welcoming tourists from across the world.” Hampton by Hilton Marjan Island is located on a pristine 750-metre beach with its inspiring design enabling guests to take in inspiring sea views. Special features of the hotel include a triple-height lobby entrance and a modern design for façade elevations.

MAYHEM DESERT HEAT, TO LAUNCH IN RAS AL KHAIMAH THIS NOVEMBER Ras Al Khaimah further enhances its world-class sporting events portfolio with Mayhem Desert Heat, a two-day festival hosted by Rich Froning Jr., four-time Fittest Man on Earth, and Mayhem Nation, the global CrossFit leader Mayhem Desert Heat to take place 12 – 13 November 2021 and will welcome CrossFit pro and amateur athletes from around the world In line with Ras Al Khaimah’s commitment to developing enhanced outdoor and adventure activities for its visitors, the nature-led Emirate is set to host the exhilarating event from 12 to 13 November 2021 with plans to follow annually thereafter. In its first edition, Mayhem Desert Heat is expected to attract up to 160 pro and amateur athletes, who will battle it out over two-days, while being cheered on by spectators, for a world-class experience. Participants will compete in heats throughout the day to reach the men’s and women’s final and win a cash prize purse of $150K. RAK BUSINESS

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MARKETS

THE LAUNCH OF FIRST BRANDS FOR LESS STORE IN RAS AL KHAIMAH As part of its ongoing efforts to expand its customer base and position itself as one of the top retail companies in the UAE, BFL (Brands For Less) Group has brought for the first time its flagship store Brands For Less into the emirate of Ras Al Khaimah. With an area of about 19,140 sq. ft., the new Brands For Less branch is the largest department store of BFL Group comprising Homes For Less, Toys For Less and Muy Mucho. The establishment has a wide array of branded merchandise such as all types of clothing, home essentials, toys, and more, which can be bought at an affordable rate. The move is a step forward into fulfilling BFL Group’s expansion strategy in 2021, wherein they are planning to broaden their market reach and serve the needs of UAE customers across all emirates. The group manages more than 74 stores worldwid.

LUXURY PROMISE PIONEERS LIVE SHOPPING IN THE MIDDLE EAST Live shopping and social commerce come as the latest e-commerce trends in the second-hand luxury goods market and combine technological advances and social media channels to provide the familiar, quaintly nostalgic concept of in-person shopping. The two latest e-commerce trends allow customers to make informed purchase decisions and are key factors in driving e-commerce growth worldwide. According to an article by Bloomberg, live shopping generated $60 billion in global sales in 2019, and the numbers are continuously climbing.

RENOWNED DUBAI-BASED PERFUMER LAUNCHES HOME FRAGRANCE LINE Arcadia, the Dubai-based perfumery brand created by Amna Al Habtoor, has extended its product line and is now offering locally produced home fragrances in the form of three candles as part of the Out of the Darkness series, bookmarking the internal struggles faced during the 2020 pandemic and the subsequent light at the end of the tunnel as we emerge from these turbulent times. Amna Al Habtoor, the owner of Arcadia, said: “Arcadia is a brand that represents the idea of a utopic existence where each nostalgic fragrance is coupled with a narrative, underscoring the euphoric experience that occurs while reminiscing. The first of the candles, Trapped Freedom, evokes feelings of the soul’s search for freedom with wood, floral, rose, amber and oud notes.

FUJAIRAH’S RUMAILAH FARM PARTNERS UP WITH DUBAI’S ADDRESS HOTEL & RESORTS Emirati dairy producer Rumailah Farm will supply the newly-launched Address Beach Resort Fujairah with its popular range of dairy products, company officials announced this week. A deluxe hotel brand catering to high-end guests, Address Hotels & Resorts is run by the Dubai-based Emaar Hospitality Group. Nestled in the scenic Hajar Mountains overlooking the Gulf of Oman, Address Beach Resort Fujairah officially opened its doors on July 15. On Tuesday (July 27), Address and Rumailah Farm formalized their supply agreement at a signing ceremony held at the latter’s farm facilities.After searching for the best local dairy producers by which to supply their guests, Address quickly honed in on Rumailah Farms as the obvious choice. Rumailah has successfully positioned itself as Fujairah’s leading supplier of farm-fresh milk, butter and ice cream.

ABB TO PRESENT SUSTAINABLE SOLUTIONS AT DUBAI EXPO 2020 ABB will participate in the Dubai EXPO 2020 as an official partner of the Swedish Pavilion and showcase its leading technology in a digital and interactive way partnering with more than 100 companies and institutions. With a history of more than 130 years and Sweden as one of the birthplaces of the company, ABB will join the country’s efforts to highlight the most innovative solutions that will help build a smart society under the pavilion’s theme of “Co-creation for Innovation”. The exhibition is the first Expo ever that is taking place in the Middle East. A meeting point for businesses and governments, EXPO 2020 will run from October 1, 2021, to March 31, 2022.

LG LAUNCHES 4K OLED TV LINEUP IN THE GULF REGION, WITH AI PICTURE, SOUND AND ARABIC VOICE SUPPORT LG Electronics (LG) has recently announced the availability of its latest industry-leading OLED televisions in the Gulf region – a flagship TV lineup upgraded with features such as a new OLED panel, greater color accuracy and contrast, an enhanced AI processor and redesigned webOS interface for an even more seamless end-user experience. LG’s 2021 OLED TVs, spearheaded by the G1 and C1 series, represent the company’s most comprehensive range of OLED TVs to date, with exciting new models that build on the brand’s legacy of superior picture quality. LG’s latest G1 series features OLED evo, the next step in the evolution of OLED TV technology that delivers better luminosity for higher brightness and punchy images with amazing clarity, detail and realism. To offer an intuitive experience, LG’s G1 and C1 series OLED TVs also make use of the company’s upgraded webOS 6.0 smart TV platform. It features a redesigned home screen, as well as performance improvements to deliver faster access to apps, as well as easier content discovery and more personalized recommendations. In conjunction, LG’s improved Magic Remote features hot keys for popular content providers, making the experience of streaming and viewing content faster than ever before. RAK BUSINESS

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