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Ras Al Khaimah
Business Environment Report
The Third Quarter 2018
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Contents
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9 ............................................. Error! Bookmark not defined. RAK DED Activities, Initiatives, and Events
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Introduction
This report comes under the quarterly reports series of the business environment which are issued
by RAK DED. The reports include a thorough study about the development of the new, renewed
and cancelled licenses, and show the indicators of business and confidence in RAK DED and RAK
Government by the business community in the Emirate.
RAK DED Issued Licenses
First: The New Licenses
The new licenses rate has decreased in the third quarter of 2018 by 7.4% over the previous year. That
comes due to many factors of which the most important is the instability circumstances which are
witnessed by the region and the world.
Chart No.1: Number of New Licenses in the Third Quarter of 2017-2018
Second: The Renewed Licenses:
The renewed licenses rate (the renewed & modified licenses) has decreased in the third quarter of
2018 by 14% over the previous year because of many factors of which the most important is DED Decision
of extending the grace period of renewing the expired licenses from 30 to 90 days.
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350
2017الربع الثالث 2018Thirdالربع الثالث Quarter 2018Third Quarter 2017
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Chart No.2: Number of Renewed Licenses in the Third Quarter of 2017-2018
Third: The Cancelled Licenses:
The cancelled licenses rate has decreased in the third quarter of 2018 by 14% over the previous year.
That reflects the circumstances improvement in the Emirate due to the motivating policies which were
carried out by RAK DED to enhance business and stability in the Emirate.
Chart No.3: Number of Cancelled Licenses
1-3 The Main Causes of Licenses Cancellation:
Chart No. 4 illustrates the main causes why companies cancel their licenses in the Emirate. The chart shows
that the most important reason is the economic performance drawdown of companies. That drawdown
seems to be a result of the situations and the inconvenient developments in the region. The governmental
fees and procedures helped also in increasing the cancelled licenses number in addition to decreasing the
revenue of those licenses’ owners.
3,750
3,212
2,800
3,000
3,200
3,400
3,600
3,800
2017الربع الثالث 20183rd Quarter 2017الربع الثالث
239
206
2017الربع الثالث 20183rdالربع الثالث Quarter 2017
3rd Quarter 2018
3rd Quarter 2018
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Chart No.4: Causes of Licenses Cancellation:
2-3 The cancelled licenses in terms of workers number:
Most of the cancelled licenses in the third quarter of 2018 were of companies that employ 5 workers or less.
In other words; the micro projects. The rate of these licenses cancellation reached 95% of the total number
of the other cancelled licenses.
Chart No.5: The percentage of the cancelled licenses according to workers
number:
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6
خمس عمال فاقل
عمال5أكثر من
-5 workers or less
21
14
1318
212
20 صعوبة تسويق منتجات وخدمات الشركة
عدم توفر االيدي العاملة الماهرة والمناسبة
ارتفاع تكاليف التشغيل
ارتفاع رسوم الخدمات الحكومية
ضعف الخدمات الحكومية
صعوبات تمويلية
(تحدد)أخرى
-Difficulty of marketing for the
compamy's products & services.
-----
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3-3 The cancelled licenses in terms of the company’s lifetime:
The rate of the cancelled licenses which have been issued five years ago or less has reached 59%,
while the rate of the licenses, which their age is more than 5 years, has reached 42%
Chart No.6: The percentage of the cancelled licenses according to years of
operation in the Emirate:
4-3 The cancelled licenses in terms of activity:
Most of the cancelled licenses were centered on trading, contracting and real estate activities as
illustrated in the following chart:
Chart No.7: the percentage of cancelled activities according to the activity:
5941
خمس سنوات فاقل
أكثر من خمس سنوات
40
35
718
تجارة حرفية ومهنية مقاوالت وعقارات Tradeأخرى - Vocational and Professional - Contracting and Real-estate - Others
5 years and less
More than 5 years
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Business Environment Indexes
First: Confidence Index:
The confidence index fell to 52% during the third quarter of 2018, whereas it was 57% in the previous year.
Nevertheless, the percentage exceeded 50% which keeps optimism and confidence to improve the business
environment in the near future.
Chart No.8: business environment Index %:
Second: The Economic Performance Index:
This index measures the current business development of companies compared to the previous six months. The
results showed decreasing the economic performance of most of the companies in the Emirate where the
indicators reached less than 50%. This percentage drop appears clearly in obtaining the net income and sales.
Chart No.9: the Percentage of the Economic Performance:
53.360.5
56.9
45.1
58.651.8
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
شهور6مناخ االعمال قبل مناخ االعمال بعد ست شهور المؤشر العام
2017الربع الثالث 2018الربع الثالث
General IndexBusiness Environment before 6 months
42.7
50.0 49.0 48.5
39.5
45.9
39.4
46.742.7 43.2
37.641.9
0.0
10.0
20.0
30.0
40.0
50.0
60.0
المبيعات المشتريات التوظيف االستثمارات صافي الدخل المؤشر العام
2017الربع الثالث 2018الربع الثالث
General Index
3rd Quarter 2017 - 3rd Quarter 2018
InvestmentEmploymentPurchasesSales
3rd Quarter 2017 - 3rd Quarter 2018
Business Environment before 6 months
Net Income
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Third: Business Community Satisfaction Index:
Satisfaction Indexes fell concerning RAK DED performance. Whereas, they the increased slightly for the
other governmental authorities. Nevertheless, these indexes stayed at the acceptable normal levels which
reflect a kind of stability in evaluating the Government performance by the business community in the
Emirate.
Chart No.10: Satisfaction Index %
69.4
65.666.1 65.8
63.0
64.0
65.0
66.0
67.0
68.0
69.0
70.0
2017الربع الثالث 2018الربع الثالث
تقييم الدائرة االقتصادية - Evaluating RAK DEDتقييم الحكومة Evaluating the Government
3rd Quarter 2017 3rd Quarter 2018
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Policies and Procedures of Business Improvement
about the controls of having a trade license quarter of 2018 rdin the 3 issued a decisionRAK DED
for those who are below the legal age. The decision stipulated that the minors, whether they are
under custody or guardianship, have the right to practice trading once they are 18 year old, and
once the court gives them the permission whether it is absolute or limited permission.
Issuing an economic license for a minor requires a permit for starting trading by the Courts
Department – Customers Happiness Center – Sheikh Saqre Courtroom- Notarization and
Attestation Office.
The applicant for the economic license under a minor name, whether he is the minor himself or his
representative or his guardian or custodian, is directed to the above mentioned office to bring the
permit (starting activity certificate), and he is to be inform about the required documents for that
permit which are (ID card of the minor - ID card of the guardian or the custodian). The permit is
issued on the same day.
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RAK DED Activities, Initiatives, and Events
1-“Take the initiative with us”
RAK DED continued its initiative “Take the initiative with us” for the second consecutive year. The initiative
was launched by the Department of Commercial Control and Protection at the beginning of the previous
year. It aimed at bringing together the management officials and the consumers and investors, and receiving
their notes and complaints in order to advise them and suggest the convenient solutions. The participants’
number of the latest organized meeting reached 19 consumers and investors. The meeting included
presenting the latest services offered by RAK DED, hearing the consumers’ notes, and discussing the
incentives which were launched by RAK DED to support business. The most important of these incentives
was expanding the grace period of renewing the license from 30 to 90 days which was one of the most
important notes that has been discussed in the previous sessions of this initiative. This incentive was a
reflection of the shops owners concern about grace period constraint.
2- Celebrating the Emirati Women's Day:
RAK DED, represented by Woman Empowerment Team, celebrated the Emirati Women's Day by inviting
number of business women in the Emirate. The celebration was an open meeting under the slogan “Toward
Empowering Women on Zayed’s Course” where it was a chance to the women to say their inquiries and
suggestion. The meeting was attended by both of Dr. Abdulrahman Alshayeb Alnaqbi, Director General of
RAK DED, and Mr. Mohammed AL Mahmoud, Acting Deputy Director General of RAK DED. The business
incentives and facilities were presented during the meeting, in addition to a discussion session with the
women who have trade licenses. Many activities were organized like competitions for customers and
different raffles. RAK DED also participated in Woman’s Achievements Exhibition which was organized by
Saqr Governmental Hospital - Ras Al Khaimah Medical District, and participated in the discussion session
about woman and heritage which was organized by the Department of Antiquities And Museums in Ras AL
Khaimah.
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3- Organizing visits to Automobile Repair Shops:
RAK DED continued its educational campaign (Ittamman “Don’t Worry”) for automobile repair shops in
order to ensure their commitment to the rules put by DED. These rules include providing all the information
of the vehicles under maintenance using specific access cards which contain all the details about the
consumer, the automobile repair shops, date of entering the vehicle, and the provided services. That will
preserve the rights of all parties. This campaign was launched by the Department of Commercial Control and
Protection in 2017 where 261 automobile repair shops were included in this initiative till this moment.
4- The 26th Meeting for RAK Ladies Lounge:
meeting which was hosted by thheld their 26The Ladies Lounge, Branch of Ras AL Khaimah,
the Emirates Association for Social Development- Al Dhait Branch. The meeting was
attended by 12 members in order to discuss two books which are The Year of Reading
Dangerously by Andy Miller and The Unbearable Lightness of Being by Milan Kundera.
The meeting was opened by Amal Ismail, Head of Ras Al Khaimah Reads Initiative and RAK
Ladies Lounge Coordinator. Ismail started by thanking the Association for hosting the
meeting, then she displayed a quick presentation about the prominent achievements of
RAK Ladies Lounge. The number of discussed books in the Lounge reached 45 books, and
the members’ number reached 60 members from all the society segments. RAK Ladies
Lounge has 7 authors and poets, 4 Professors, Journalists, higher degrees holders, house
keepers and college students.
5- “Kash-Khitkom Wayana” * Exhibition:
Happiness Team in RAK DED opened the Exhibition “Kash-Khitkom Wayana” as part of Eid
AL Adha Festivity. The Exhibition aimed at providing the employees and their families with
the needs for Eid Al Adha, and aimed at supporting entrepreneurs who hold Al Ghad License
and the women entrepreneur in the Emirate.
*“Kash-Khitkom Wayana” : it is a local Emirati expression that means we will take care of your beautiful cloths and
perfect appearance.
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6- “Protect Yourself by Modifying your Status” Initiative:
RAK DED, in coordination with ICA, took the initiative of “Protect Yourself by Modifying
your Status” in order to obtain the cooperation principles for the strategic partners. The
initiative comes under implementing the Cabinet Decision which included approving a
package of new legislative facilities to review the current residency system. This review
aimed at facilitating the procedures for those who want to live in the State and those
who search for job. It aimed also at giving a grace period for violators who live in the
Sate illegally in order to settle their statuses or leave the country willingly with no legal
consequences. The violators shall be exempted from fines, and they will not be
prevented to enter the country again with a new visa. The Department of Commercial
Control and Protection has implemented field visits for 4958 commercial
establishments in the Emirate in order to educate them and explain about the initiative
to modify their statuses in case they are not in compliance with the law. The
Department’s Specialists have distributed awareness bulletins for the shops owners and
visitors. The bulletins were in different languages to make it easy to understand the
content and requirements of the initiative, and they were offered in the Customers
Happiness Center. The initiative was also published via RAK DED social media accounts
to send the message to the biggest segment of the society. Ahmad AL Bouloshi, Director
of the Department of Commercial Control and Protection, emphasized that RAK DED is
the first local department that contributed in supporting this initiative through
publishing its publications in the local markets.
7- Skills of Creating a Commercial Identity Workshop:
RAK DED, in cooperation with Sketch Design and Technical Management, organized a
workshop at its headquarters about skills of creating a commercial identity. The
workshop targeted a number of AL Ghad License holders and entrepreneurs to enhance
the ways and techniques of the special marketing for products, attract customers, and
increase success possibilities.
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8- Educating Students about the Differences between the Original and the
Counterfeit Goods:
RAK DED organized a workshop at Ras AL Khaimah Girls’ Center where 54 students of
one since the thThis workshop is the 10the elementary schools have participated.
beginning of the year. RAK DED hosted specialists from the major brands companies to
attend the workshop and educate the students about the differences between the
original and the counterfeit goods which they may not recognize when purchasing.
Counterfeit goods may cause damages. Therefore, this workshop of educating the
students in this early age is important to make them adopt the concept of smart
shopping.
9- Blood Donation Campaign:
RAK DED hosted the Blood Donation Bus in front of its headquarters in order to activate
its role in the social responsibility and to encourage the employees and the customers to
contribute in the donation. The DED donators’ number reached 22 employees. DED
ensures the importance of blood donation as a humanitarian and healthy conduct, in
addition to the fact that it is a volunteering initiative which enhances the culture of
donation.
10- Back to School Initiative:
RAK DED took the initiative at the start of the new academic year to participate in the
national initiative “Back to School”. The initiative took place in the malls of the Emirate
by receiving the students and congratulating them for starting a new academic year.
This activity included the participation of the cartoon character Amor and giving the
students booklets that contain instructions to help them obtaining success and
excellence. This participation comes under RAK DED belief of the importance of
enhancing the psychological aspects of the students by making them participate in such
social initiatives. RAK DED encourages students to receive the new academic year
positively and enhances their connection with the school environment.
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