Why Is Ras Al Khaimah the New Hotspot for Chinese Industrial Investment?

So, recently in Ras Al Khaimah, His Highness Sheikh Saud bin Saqr Al Qasimi, the Ruler of Ras Al Khaimah, hosted a pretty significant event. It was the official lease signing ceremony between China’s Shandong Timber and Wood Products Association (STWPA) and Ras Al Khaimah Economic Zone (RAKEZ). This partnership is a big deal for the emirate’s industrial sector.

The lease was signed by Yang Yuelu, who is the President of STWPA and also the Chairman of Zhong A Shandong Industrial Park, and Ramy Jallad, the Group CEO of RAKEZ. The new industrial park, called Zhong A Shandong Industrial Park, is set to be established in Ras Al Khaimah with an initial investment of USD 360 million.

To give you an idea of the scale, the first phase of the park will cover around 450,000 square meters in the Al Ghail and Al Hulaila areas within RAKEZ. But that’s just the beginning. Over the next three years, they plan to expand it to more than 1 million square meters in Al Ghail. When it’s all completed, we’re looking at over 60 new companies setting up shop there, focusing on the wood and food and beverage sectors. Plus, it’s expected to create more than 3,500 new jobs in the next five years.

STWPA is a global player with similar industrial parks in China, Indonesia, and Ethiopia, supporting various sectors like chemicals, mechanical and electrical, and glass. In Ras Al Khaimah, this industrial park will offer ready infrastructure for Chinese investors, while RAKEZ and its partners will help them get their businesses up and running. They’ve already attracted F&B and plywood manufacturers to the park.

Ramy Jallad, the CEO of RAKEZ, highlighted the significance of this project. He said that establishing the Zhong A Shandong Industrial Park is a major milestone for Ras Al Khaimah’s economy, especially in terms of international partnerships. Since nearly 30 percent of Ras Al Khaimah’s economy is driven by manufacturing, this park will add even more value and vibrancy to the region. Jallad also emphasised how this project strengthens ties with China and supports RAKEZ’s mission to create a welcoming environment for Chinese investors. He pointed out that the growing interest from international investors like STWPA shows how cost-effective Ras Al Khaimah is and how RAKEZ plays a crucial role in helping businesses access the booming MENA markets.

To put it in perspective, STWPA supports over 1,700 wood companies worldwide and is responsible for producing 10 percent of the world’s wooden furniture, with an annual output valued at a staggering USD 55 billion. Yang Yuelu, the President of STWPA, mentioned that their partnership with RAKEZ is truly collaborative. They were really impressed with the support they received from various levels within the emirate, and it was this proactive and can-do attitude that convinced them to set up in Ras Al Khaimah. Yuelu also highlighted the ease of operations and the excellent support provided by the emirate as key factors in their decision.

This development fits into the broader context of the UAE’s strategic role in China’s global trade. The UAE is China’s largest trading partner in the Arab region and serves as a vital hub for re-exporting Chinese goods to over 400 cities across the MENA region. With the UAE signing more international trade agreements, it’s becoming an increasingly attractive location for international investment, as reflected in its rising position in the global FDI rankings.

Understanding the importance of Chinese businesses in diversifying Ras Al Khaimah’s industrial base, RAKEZ has been actively engaging with Chinese entrepreneurs, government officials, and media through strategic meetings and roadshows across China. These efforts have paid off, with more than 200 Chinese companies already operating in RAKEZ, spanning sectors like recycling, LED lighting, engineering, and packaging, among others.