Ras Al Khaimah, 16 August 2024: His Highness Sheikh Saud bin Saqr Al Qasimi, UAE Supreme Council Member and Ruler of Ras Al Khaimah hosted the official lease signing ceremony between China’s world-leading Shandong Timber and Wood Products Association (STWPA) and Ras Al Khaimah Economic Zone (RAKEZ) to establish the Zhong A Shandong Industrial Park in Ras Al Khaimah, marking a significant development for the emirate’s industrial sector expansion. The lease was signed by Yang Yuelu, President of STWPA and Chairman of Zhong A Shandong Industrial Park, and Ramy Jallad, Group CEO of RAKEZ.

With an investment of USD 360 million, the first phase of the new industrial park will span over 450,000 m2 across Al Ghail and Al Hulaila in RAKEZ. It will undergo further expansion to encompass over 1 million m2 of land in Al Ghail over the next three years. Upon completion, the project will bring in over 60 new companies, specialising in the wood and food and beverage sectors, and create more than 3,500 new jobs in the next five years.

STWPA has a global footprint with similar set-ups in China, Indonesia, and Ethiopia, attracting businesses across diverse sectors such as chemicals, mechanical and electrical, and glass. In Ras Al Khaimah, the industrial park will provide ready infrastructure to Chinese investors, while RAKEZ and its partners will facilitate their business set-up. It has already welcomed F&B and plywood manufacturers.

Commenting on the project’s significance, Jallad said, “This establishment of Zhong A Shandong Industrial Park is a strategic milestone indicative of our efforts to amplify Ras Al Khaimah’s economic landscape through international partnerships. With nearly 30% of the emirate’s economy driven by manufacturing activities, we are excited about the additional value and economic vibrancy this park will bring about. This project also strengthens our ties with China, supporting our mission to provide a nurturing environment for Chinese investors.” He further added, “The growing interest from international investors like STWPA highlights Ras Al Khaimah’s cost-effectiveness and RAKEZ’s role in facilitating access to the thriving markets of the MENA region.”

STWPA supports more than 1,700 wood companies worldwide and is responsible for producing 10% of the world’s wooden furniture, with an annual output valued at USD 55 billion. Regarding the latest set-up in Ras Al Khaimah, Yuelu said, “Our collaboration with RAKEZ is characterised by a true partnership approach. We are thoroughly impressed with the comprehensive support extended by various levels within the emirate. It was the proactive, can-do attitude and the willingness to go beyond expectations that solidified our decision to establish our presence in Ras Al Khaimah. The opportunities presented by this emirate, from operational ease to exceptional after-support, are truly exciting for our companies.”

The UAE plays a key role in China’s global trade strategy, serving as China’s largest trade partner in the Arab region and facilitating the re-export of approximately 60% of Chinese trade to over 400 cities across the MENA region. Furthermore, the UAE has signed a growing number of international trade agreements that strengthen the foundation for companies from around the world to establish manufacturing operations here. This strategic positioning is reflected in the UAE’s rapid ascent up the FDI league tables, confirming its status as a preferred location for international investment.

Realising the importance of Chinese businesses in diversifying the industrial base of Ras Al Khaimah, RAKEZ plays an active role in regularly hosting Chinese entrepreneurs, government officials, and media representatives, and engaging in strategic meetings and roadshows across Chinese cities. These efforts in cultivating a thriving environment for business and investment have attracted more than 200 Chinese companies to RAKEZ operating in a wide range of sectors including recycling, LED lighting, engineering, packaging, among many others.