Al Hamra Industrial Zone (RAKEZ)
Al Hamra / Al Jazeera Al Hamra Industrial area, Al Shohada Road corridor, Ras Al Khaimah · Est. 2005 · RAKEZ
Manufacturers, processors, assemblers and logistics/trading firms needing land, warehouses and workforce housing at the UAE's lowest industrial costs - especially goods businesses that benefit from VAT designated-zone treatment.
Consultancies, agencies and digital businesses wanting a flexi-desk and a Dubai-facing address (look at RAKEZ business zones or Dubai zones instead); retail/customer-facing businesses needing footfall.
01Capability profile
02Where Al Hamra Industrial Zone sits
Al Hamra Industrial Zone: 81th percentile (AED 6,000) · Licence + registration, AED.
Al Hamra Industrial Zone: 92th percentile (3 days) · Total estimated days from application to operational.
Al Hamra Industrial Zone: 5th percentile (6 visas) · Absolute maximum visa allocation. Values above 500 clipped to the right edge so the bulk of the distribution stays readable.
Al Hamra Industrial Zone: Moderate · Corporate bank account opening difficulty. Each cell is one zone.
03Costs
- Base licence
- AED 6,000
- 2-year visa cost
- AED 3,200
- Flexi-desk per year
- AED 6,000
- Establishment card
- AED 1,500
- Minimum share capital
- AED 10,000
- Cancellation fee
- AED 3,000
- Visa renewal
- AED 1,800
- Visa cancellation
- AED 600
- Emirates ID (per visa)
- AED 370
- Dependent / spouse visa
- AED 2,500
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04Visas & workspace
- Maximum visas
- 6
- Flexi-desk cap
- 0
- Office cap
- 4
- Family sponsorship
- Available
- Freelancer permit
- Available
- Golden visa
- Available
- Green visa
- Available
- Medical required
- Yes
- Processing time
- ~10 days
- Virtual office
- No
- Flexi-desk
- No
- Coworking
- No
- Dedicated office
- Yes
- Executive office
- No
- Warehouse
- Yes
- Industrial unit
- Yes
- Land plot
- Yes
- Ejari issued
- No
- Parking
- Yes
- Dedicated office cost
- AED 25,000/yr
05Banking & setup
- Difficulty
- Moderate
- Time to account
- ~14 days
- Minimum deposit
- AED 0
- Corp tax rate
- 0%
- Audit cost (est)
- AED 5,000
- UBO filing
- Required
- AML / KYC
- standard
- Registration modeFully online — no in-person visit required
- Documents & applicationPassport, visa, business plan — ~3–5 days
- Licence issued~3 business days after submission
- Bank account activeAdditional ~14 days · Moderate banking
- OperationalTypically ~3 days, up to ~10 days
06Package pricing
All figures in AED, from official fee schedules. Visa and health-insurance costs are additional.
| Package | Visas | Year 1 | Renewal |
|---|---|---|---|
| Industrial Unit – StandardBest value | 3 | AED 24,000 | AED 19,500 |
| Industrial Unit – Large | 6 | AED 38,000 | AED 30,000 |
| Warehouse Unit | 4 | AED 28,000 | AED 22,000 |
07Permitted activities
trading
manufacturing
consultancy
freelancing
e-commerce
import/export
wholesale
retail
services*
08Jurisdiction & ecosystem
This zone offers physical-office options sufficient for a standard QFZP substance posture, though the bar still applies at the entity level (CTGFZP1).
Focus: Manufacturing, Industrial, Trading, Logistics, Assembly
Indu*
QFZP, audit, mainland-permit and substance values are sourced where the zone authority or FTA publishes them, and inferred from published zone characteristics otherwise. How we determine these values.
09Strengths & limitations
- ["Among the UAE's cheapest industrial real estate: land plots from 5
- 000 m2 and warehouses 150-10
- 000 m2
- with RAKEZ claiming operating costs ~50% below regional average"
- 'FTA VAT designated zone since 4 July 2019 - VAT-suspended goods movements with other designated zones and exports'
- 'Rare dual structure: both free zone and non-free zone (mainland) entity formation in the same zone
- plus RAKEZ Dual Licence for mainland trading'
- 'Industrial-grade utilities: guaranteed 24/7 government power
- gas and water; on-site labour accommodation (lease or build)'
- 'Proximity to Saqr Port
- RAK International Airport and E611/E311 highways; ~45-60 min from Dubai'
- '0% corporate tax on qualifying income (QFZP); low-entry RAKEZ packages from AED 6
- 000']
- No zone-specific published pricing - facility leases and industrial licences are quoted case-by-case, slowing cost comparison
- RAK address carries less brand weight than Dubai and adds ~1 hour drive to central Dubai
- Industrial district with minimal on-site retail/amenities; lifestyle and services sit in nearby Al Hamra Village/RAK city
- Industrial projects need extra approvals (Civil Defence, environmental permit, Operational Fitness Certificate) that extend setup timelines
Not ideal for: Consultancies, agencies and digital businesses wanting a flexi-desk and a Dubai-facing address (look at RAKEZ business zones or Dubai zones instead); retail/customer-facing businesses needing footfall.
10Recent developments
- 2025-Q1Al Hamra Industrial Zone completed a road and infrastructure upgrade improving heavy vehicle access to port-adjacent industrial units.
- 2024-Q4RAKEZ introduced flexible lease terms of 12 months (down from 24 months) for Al Hamra Industrial Zone units to attract smaller manufacturers and startups.
11Tax considerations
Does your planned revenue qualify under the QFZP qualifying-income rules?
QFZP 0% only applies to qualifying income. Mainland trading or revenue from non-free-zone clients is generally non-qualifying and taxed at 9%.
Will you need audited accounts even if this zone doesn't require them?
FTA corporate-tax filing typically expects audited accounts for revenue above AED 50M, and banks often request them at much lower thresholds.
Do your goods movements actually fall inside the VAT Designated Zone treatment?
Designated Zone status applies to goods within the zone, not services. Most service businesses get no VAT benefit from being inside one.
How much of your revenue will come from mainland UAE customers, and how does that affect QFZP and 5% VAT obligations?
Mainland revenue beyond ad-hoc levels can disqualify QFZP and triggers full 9% corporate tax plus standard VAT on supplies.
Do any of your customers, suppliers, or shareholders meet the FTA's related-party definition?
Related-party transactions need transfer-pricing documentation and may push otherwise-qualifying income into the 9% bracket.
These prompts are due-diligence questions, not tax advice. Confirm every answer with a UAE-licensed tax advisor before incorporating.
12Frequently asked
13Similar zones in Ras Al Khaimah
14About this data
Al Hamra Industrial Zone data is sourced from official zone authority publications, government fee schedules, and where available, verified against direct communications with the zone. All figures in AED.
- Location
- Al Hamra / Al Jazeera Al Hamra Industrial area, Al Shohada Road corridor, Ras Al Khaimah
- Established
- 2005
- Authority
- RAKEZ
- Last verified
- 2026-07-18
- Confidence
- high
- Methodology
- How we score →
- QFZP eligibility (0% corporate tax)Secondary · 2026-07-18Primary source ↗
- Audit requirementSecondary · 2026-07-18Primary source ↗
- Economic substanceSecondary · 2026-07-18Primary source ↗
- Mainland trading permitSecondary · 2026-07-18Primary source ↗
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