Small and medium-sized enterprises are the backbone of the UAE economy, making up 94 per cent of businesses and contributing more than 40 per cent to GDP. As the country pushes ahead with its post-oil diversification strategy, ecosystems that support SME growth are becoming critical infrastructure.
One such ecosystem is the Ras Al Khaimah Economic Zone (RAKEZ), home to more than 30,000 thriving, diverse businesses, the majority of which are SMEs. Positioned away from the spotlight of Dubai and Abu Dhabi, RAKEZ has built a platform that is helping early-stage companies launch, expand, and compete – both locally and globally.
Strategic, Without the Noise
Ras Al Khaimah offers a unique value proposition: proximity to major markets, access to regional ports and airports, and a significantly lower cost base. This has made it an attractive landing ground for startups priced out of other regions or looking for operational flexibility in the early stages of growth.
While RAK’s industrial foundations have long supported manufacturing and logistics firms, the emirate is now doubling down on digital startups, creative industries, and service-based SMEs.
A platform built for startups
RAKEZ has designed its offering specifically around SME needs. Entrepreneurs can choose from a wide range of licences, from commercial to e-commerce to media, and benefit from simplified setup processes, digital onboarding, and access to funding networks through local bank partnerships.
Its coworking centres have become hubs for startup activity, offering flexible workspaces and hosting regular business events. Support extends beyond office space: RAKEZ also provides mentorship, advisory sessions, and tailored packages for women-led businesses.

The strategy is working. Footfall at RAKEZ’s main coworking facility has quadrupled since its launch, prompting the development of a second, larger centre. The aim: meet demand from companies looking to scale without relocating.
From RAK to the world
Several high-growth companies have emerged from the RAKEZ ecosystem. Falcon AI relocated its operations from the US to Ras Al Khaimah in 2021 to pilot its AI technologies in the UAE market. Cybersecurity firm ComStar and software solutions provider iDigitize have also used the zone as a springboard for wider expansion, citing flexibility, cost-efficiency, and RAKEZ’s startup-focused infrastructure as key advantages.
Aligned with the national vision
What RAKEZ is building is closely aligned with the UAE’s broader goals: boosting the digital economy, creating jobs for youth, supporting women-led businesses, and reducing reliance on oil-driven growth. In doing so, it has positioned itself not just as a business zone, but as a microcosm of the country’s innovation agenda.
With the UAE aiming to increase SMEs’ contribution to GDP to 50 per cent by 2031 under its Entrepreneurship Agenda, RAKEZ’s role in this landscape is becoming increasingly significant. For founders looking for a serious, scalable base of operations, it offers more than incentives: it delivers infrastructure, community, and access.
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