INDIAN INVESTMENT
On opposite sides of the Arabian Sea, India and UAE industrial ties are growing in significance.
What are the competitive advantages of being located in Ras Al Khaimah?
MOHIT MALHOTRA When we selected Ras Al Khaimah, we had evaluated all the Emirates and markets in and around the region since the UAE is our captive consumption market. We found that Ras Al Khaimah was commercially and financially beneficial, offering excellent ease of doing business in terms of how supportive the government is and how eager it is to get investments and business. It is a business-friendly, workforce-friendly, and regulatory-friendly environment. We had 15 parameters on which we evaluated all the Emirates, and Ras Al Khaimah turned out to be the best choice. It was an extremely attractive proposition. We have uninterrupted power and water supply. In addition, Ras Al Khaimah is the only area that allowed us to put up our own labor accommodations. Getting visas for workers is easy, and the Ras Al Khaimah government is approachable and fast to interact with through a fully online operation.
TAPAS RANJAN NAYAK The main benefit is that the government here is extremely business friendly. Furthermore, transport and the logistics system here, including customs, are excellent. Expansion of the port has begun and should be finalized soon. This will benefit us significantly by saving money and time on road transportation. Another benefit is the presence of local suppliers that help us increase our volumes. For example, several raw material suppliers for aluminum, steel, and glass are based in Ras Al Khaimah, and they are competitive in terms of quality and cost compared to suppliers in the GCC. Finally, energy prices have come down after the introduction of Federal Electricity and Water Authority (FEWA). There are challenges, though they are the same as elsewhere. Any manufacturing company in this industry needs a great deal of investment. When we started this plant in 2008, there were many challenges. That was because there was no manufacturing base for the automobile sector. There were already some companies in Saudi Arabia; however, we were the only original equipment manufacturers (OEM). When we started, 100% of our materials were brought in from India. The costs were high, and there was a 5% duty. Gradually, in the last five years, 80% of our bus components became locally sourced.
How competitive is the UAE for new players?
MM Looking at the MENA region, there is a big entry barrier for new players to enter. When a new player enters a market, it has to import goods into the region and, thus, has to pay import duties. Import duties in Saudi Arabia, North Africa, and Egypt are high, unlike in the UAE, where it is 5%. If a company produces here, it can avail AFTA benefit in the region for exports with no duty. In our case, we produce in Ras Al Khaimah and have invested in a facility. However, for a new entrant, investing in a factory is a huge entry cost and a barrier. If a company does not have a manufacturing facility in the region and does not add a value of greater than 40% to its produce in the region, it will not avail of the AFTA duty benefit and hence will have to pay additional 20-30% duty in the exporting country. For Dabur, this custom duty saving is passed on to consumers to bring down prices in the market, which makes us quite competitive.
How do you evaluate the business and trade relations between India and the UAE?
TRN Overall, there have always been excellent relations between the two countries. Moreover, since our Prime Minister signed an initiative on his last visit in 2018, the relationship will improve by the day. It is also easy to do business here compared to other parts of the world. In other places, the localization content is about 65%. However, here it is 20-40%.
INDIAN INVESTMENT
TABLE OF CONTENTS
Interview
ndrea Di Gregorio, , Director of Energy Efficiency and Renewables , RAK Municipality Department
TBY talks to Andrea Di Gregorio, Director of Energy Efficiency and Renewables of the RAK Municipality Department, on the Emirate's overall strategy, specific programs, and early supporters of energy efficiency and renewables.
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Abdulrhman Al Shayeb Al Naqbi, Director General, Ras Al Khaimah Department of Economic Development (RAK DED)
TBY talks to Abdulrhman Al Shayeb Al Naqbi, Director General of the Ras Al Khaimah Department of Economic Development (RAK DED), on improving the ease of doing business, key diversification pillars, and the impact of new VAT.
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Sheikh Ahmed bin Saqr Al Qasimi, Chairman, Ras Al Khaimah Economic Zone (RAKEZ)
TBY talks to Sheikh Ahmed bin Saqr Al Qasimi, Chairman of the Ras Al Khaimah Economic Zone (RAKEZ), on offering investors a global platform, creating a one-stop shop, and the strategic comparative advantages of access to the Indian Ocean.
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Manu Mehra, CFO, RAK Investment & Development Office (RAK IDO)
TBY talks to Manu Mehra, CFO of the RAK Investment & Development Office (RAK IDO), on the role of free zones in diversification, the benefits of smart state intervention, and the keys most needed for a strong manufacturing sector.
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Yousef Esmaeel, Chairman, Supreme Committee of Saud Bin Saqr Establishment for Youth Enterprises Development (RAK SME)
TBY talks to Yousef Esmaeel, Chairman of the Supreme Committee of Saud Bin Saqr Establishment for Youth Enterprises Development (RAK SME), on incentivizing young people, working with local government to encourage entrepreneurialism, and the role of SMEs in the UAE marketplace.
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Abdullah Al Abdooli, Managing Director, Al Marjan Island
TBY talks to Abdullah Al Abdooli, Managing Director of Al Marjan Island, on the continuous growth of the real estate market in RAK, its robust investment landscape, and the Emirate's ambitious plans to develop its tourism sector.
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Hassan Hamdan Al Alkim, President , American University of Ras Al Khaimah (AURAK)
TBY talks to Hassan Hamdan Al Alkim, President of the American University of Ras Al Khaimah (AURAK), on the consequences of growing global demand for education and AURAK's efforts to attract students from beyond the Emirate.
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Gurumadhva Rao, Vice Chancellor, RAK Medical & Health Sciences University (RAKMHSU)
TBY talks to S. Gurumadhva Rao, Vice Chancellor of the RAK Medical & Health Sciences University (RAKMHSU), on the further development of higher education, its key differentiators, and the need for qualified doctors.
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Taner Topcu, Director, Ras Al Khaimah Economic Zone’s (RAKEZ) Academic Zone
Taner Topcu holds a bachelor's degree in Public Administration from Anadolu University in Turkey. He is an industry expert with more than 20 years of successful experience in education, hospitality, business development, and customer relations. Prior to joining RAKEZ in 2015, Taner worked at TECOM Investment's Education Cluster in Dubai Knowledge Village and Dubai International Academic City, where he worked in operations, business development, and account management. He also worked at Aabar Investments in Abu Dhabi as a Business Development Manager and at Dubai's Knowledge and Human Development Authority as a Director of Engagement Operations.
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