United Arab Emirates company formation.

The emirate of Ras Al Khaimah is strategically located between Africa and the Middle East and between the Far East and Europe, making it a gateway to over 1.5 billion consumers located in countries surrounding the Red Sea and the Gulf.

The UAE is one of the wealthiest countries in the world, with a GDP of US $415 billion (2021). Dubai’s economy has grown during the last decade by an annual average of 3.3% and is acknowledged as one of the fastest-growing economies in the world. The UAE has the third-largest proven oil reserves. However, RAK has broadened its economic activity to include an industrial platform, real estate, trade and manufacturing.

The most utilised facilities and structures include:

• Ras Al Khaimah International Company (RAK-IC)
• The International Company (IC) is the most popular option for foreign companies seeking to establish a presence in the UAE.

Population

The current population is approximately 345,000. Over 50% of the population are expatriates.

Political structure

Prior to 1971, each of the seven member emirates of the UAE (Abu Dhabi, Ajman, Dubai, Fujairah, Ras Al Khaimah, Sharjah and Umm Al Quwain), previously known as the Trucial States, had its own existing institutions of government. The Rulers agreed to draft up a provisional Constitution (“the Constitution”), which provided for the establishment of the Supreme Council of the Rulers of all the Emirates as the foremost authority in the Federation and a Council of Ministers as the Executive Branch of the Federation.

Federal Ministries of Foreign Affairs, Defence, Justice, Public Health, Communications, Information Interior, Finance and Industry, Economy and Commerce, Education, Public Works, Agriculture, Labour and Social Affairs and Planning were established. As a Muslim country, one of the fundamental principles in the Constitution provides that Islamic Law (Sharia) is the main source of legislation in the UAE. The main aim of the UAE Government Strategy is to ensure sustainable development and a high quality of life for all UAE Nationals.

Infrastructure & economy

The UAE is one of the wealthiest countries in the world, with a GDP of US $417 billion (2021).

Dubai’s economy grew by approximately 16% in 2005 and is acknowledged as one of the fastest-growing economies in the world. The UAE has the third-largest proven oil reserves. However, RAK has broadened its economic activity to include an industrial platform, real estate, trade and manufacturing. In addition, tourism is increasing rapidly, with approximately 12 million tourists per year post-pandemic.

The emirate of Ras Al Khaimah is strategically located between Africa and the Middle East and between the Far East and Europe, making it a gateway to over 1.5 billion consumers located in countries surrounding the Red Sea and the Gulf.

Its infrastructure is of the highest standards, with access to more than 170 shipping lines and approximately 86 airlines connecting to over 100 cities worldwide. The strong shipping and transportation sector is composed of most of the leading regional and international freight forwarders, insurers and shipping agents.

Language

English is the official language of business but Arabic, Persian, Hindi, and Urdu are widely spoken.

Currency

The Dirham: The current rate is 4.7 Dirhams = £ 1 and pegged to the dollar at 3.67 AED per $ 1 US.

Exchange control

None

Law type

Federal, except for Dubai and Ras Al Khaimah, which maintain their own judicial systems. The Emirates had the constitutional right to opt to join the Federal judicial system or maintain its own independent system. The Federal UAE courts are divided into civil and criminal and are also generally divided into three stages of litigation, namely:

• Courts of First Instance
• Courts of Appeal
• Federal Supreme Court (colloquially referred to as Court of Cassation)

In addition to the Civil Courts, each of the seven Emirates maintains a system of Sharia Courts, which are organised and supervised locally.

Principal corporate legislation

International Companies Regulations 2006 Registered Agents Regulations 2006