Episode 8: The Business Cataylst
Catalyzing Business Success: Strategic Insights from RAKEZ with Sarath Nadakkavil
In this insightful episode of ‘The Business Catalyst Podcast,’ host Sadaf Abbas engages in a rich conversation with Sarath Nadakkavil, Business Relationship Manager at Ras Al Khaimah Economic Zone (RAKEZ). Together, they explore the pivotal role of strategic support and operational efficiency in nurturing startups and ensuring their sustainable growth across the UAE.
About Our Guest
Sarath Nadakkavil
Business Relationship Architect | International Incorporation Strategist | Economic Zone Growth Advocate
From his foundational role in enhancing business prospects within Ras Al Khaimah Economic Zone (RAKEZ) to becoming an instrumental figure in international business development, Sarath Nadakkavil has established a noteworthy career trajectory in global business relations and strategic market expansion. As a Business Relationship Manager at RAKEZ since 2015, Sarath has played a crucial role in the zone’s evolution into a premier destination for diverse businesses seeking growth and opportunity in the UAE. His strategic insights and adeptness in navigating complex business incorporation processes have not only supported RAKEZ’s expansion but have also fostered robust partnerships that drive innovation and economic prosperity. His involvement in international events and close collaborations with government entities highlight his commitment to leveraging global networks to enhance the business setup experience, making RAKEZ a pivotal player in the economic development of Ras Al Khaimah.
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What You’ll Learn:
- – RAKEZ provides critical support systems for entrepreneurs facing early business challenges.
- – Sarath discusses his motivations and experiences working with diverse businesses in the free zone.
- – RAKEZ aids in establishing a strong financial foundation for transforming ideas into successful ventures.
- – Overview of the diverse business licenses available at RAKEZ to meet various sector needs.
- – Insights into how RAKEZ supports businesses scaling from startups to established enterprises.
- – Discussion on the infrastructural benefits and customizable solutions that RAKEZ offers.
- – Exploration of the complex dynamics between founders, investors, and stakeholders within RAKEZ’s setup options.
- – Sarath explains the benefits of setting up in a free zone and the implications of new mainland ownership laws.
- – Highlighting the importance of mentorship and strategic partnerships in expanding opportunities for startups.
- – Description of the comprehensive suite of services provided by the partnership between Oak Business Consultant and RAKEZ.
Transcript
Sadaf Abbas: Welcome to ‘The Business Catalyst Podcast,’ where we bring you insights from industry leaders who are driving change and innovation in their fields. Today, we have the honor of speaking with Sarath, the Business Relationship Manager at Ras Al Khaimah Economic Zone, widely known as RAKEZ. Sarath, it’s a pleasure to have you with us!
Sarath Nadakkavil: Thank you for having me here. It’s a pleasure and honor to be having this conversation with you.
Sadaf Abbas: So, Sarath, with over 8 years in international business and marketing, can you briefly share your career journey that led you to RAKEZ?
Sarath Nadakkavil: So myself Sarath Nadakkavil. I am representing Ras Al Khaimah Economic Zone. So I started my journey as a business development executive here in RAKEZ. So I used to take care of direct clients, the investors who are interested in setting up their company in the UAE. And right now my role is almost the same, but slightly different. Now, I’m also taking care of channel partners like you all over the globe, and I represent RAKEZ in different events and exhibitions across the globe and locally. That’s my role currently.
Sadaf Abbas: So what motivates you in your role, especially in helping businesses succeed within a free zone like RAKEZ?
Sarath Nadakkavil: Yeah. So obviously, the most interesting part is that you get to meet people from different industries with different mindset and vibrant ideas, and you know that is the most exciting part. Every day you’re meeting such fresh, you know, people with fresh ideas and investors. They’re interested to know more about the industry, the business set up industry here in UAE. So yeah, that is like, you know, it’s really refreshing. And that is what really motivates you to come to work, indulge in conversation with people who have a really great mindset. So that’s and then that’s kind of, you know, motivates you, not just in terms of the personal, I mean professional life, even in personal life. That kind of gives you energy and motivation. So yeah, that’s a major part I would say.
Sadaf Abbas: Yeah, new ideas, new innovations, new technology and people bringing to the region. Basically, this is…
Sarath Nadakkavil: Yes, exactly..
Sadaf Abbas: Important.
Sarath Nadakkavil: Absolutely. And then, you know, you are communicating with not just one set of audience, right? There are people from Europe, people from Latin America, people from, you know, the African continent. So you’re interacting with people from all over the world so that you know your mind is open, like you are open to the world, and then that’s really motivating, and that is one of the highs I would get, as an employee in this particular organization.I would say, Yeah.
Sadaf Abbas: So diversification. Basically, it motivates you and different kinds of projects basically motivates you. Yeah.
Sarath Nadakkavil: Absolutely. I mean, yeah, if you come to the business part, obviously like you know, you get to know more about the business. What is happening in the trend, the current trends because you get to see people who are following the trend you know, and maybe very advanced. They’re thinking about the coming 20 years. Not just, you know, the.
Sadaf Abbas: Not just the next 4 or 5 years..
Sarath Nadakkavil: Yeah.
Sadaf Abbas: Basically they have a vast plan.
Sarath Nadakkavil: You get updated every time you meet a client. We, as a free zone also take this feedback , our organization is very… like that way, very updated with the new type of changes happening in the world wherein, you know, just for example, we have had the AI related activities added to our activity list. You know we are having packages which make it easier for companies to start their ecommerce business by having agreements with different ecommerce service providers. So this kind of feedback, whatever we get from the client, we obviously inform the management and management is very like you know that, keep updating the product.
Sadaf Abbas: Keen to interest. Yeah, basically, they are keen to adapt to the changes.
Sarath Nadakkavil: Adding activities to the list and everything. Yeah, so it just goes on like that.
Sadaf Abbas: For those unfamiliar, can you provide a quick overview of RAKEZ and what sets it apart from other UAE free zones? Which industries thrive here?
Sarath Nadakkavil: Absolutely so, Ras Al Khaifmah is a northernmost emirate in the Emirate of UAE and Ras Al Khaimah Economic Zone is governed by the government of Ras Al Khaimah. So we are one of the largest and oldest free zones in the UAE. Established in 2000, and we have almost 23,000 plus companies registered with us in different industries. More than 50 industries we cater to. And we are providing a customized solution for SMEs, industrial companies. So you know, we are a powerhouse, I would say, of business setup for SMEs and all kinds of big industrial players. We have smaller companies with just one shareholder, and we have companies like multinational companies having thousands of square meters as manufacturing facilities and manufacturing I would say heavy vehicles and armored vehicles, food related products. So as an economic zone, we are really diversified. That’s one of the major important points I would like to highlight and also the customized packages we provide. So, as I told you, like, you know, this is not just for one industry or not for someone like big companies. We cater to the smallest player in the market, to the largest and the biggest player in the market. So someone who wants to set up a company with a very basic package, you know, just to have the support system to start with, we have cost effective packages for that. And obviously, even for the manufacturing facility, cost effectiveness is the key for RAKEZ.
Sadaf Abbas: So I believe that you are providing different kinds of licenses. Can you tell me what type of licenses you are providing?
Sarath Nadakkavil: Yes. So, as I told you, we cater to different industries. And obviously we have more than 9 types of licenses, like starting from commercial, general trading, e-commerce. We have industrial license, media license, education related license, we offer freelance permits So whatever you name it to operate your business here in the UAE, we provide all types of license and activities.
Sadaf Abbas: Perfect. So RAKEZ is known..
Sarath Nadakkavil: And…
Sadaf Abbas: Yeah Yeah, sure.
Sarath Nadakkavil: And also like, we are the one of the only free zones wherein, you can have both free zone and non-free zone setup. So that is another added advantage of coming to RAKEZ.
Sadaf Abbas: Can you explain the audience? What is meant by free zone and non free zone over here?
Sarath Nadakkavil: Sure. Sure. So in UAE majorly you have 3 different categories to set up a company when you come here. So one is a free zone, and another one is a mainland or a non-free zone, you can call it. And then you have an offshore setup. Yeah. So offshore setup is like wherein you are not doing any business in the UAE, it’s the activities happening outside UAE, and you just have your presence here and have a bank account. So that is one kind of setup. And then you have the mainland or non-free zone. So if you’re planning to provide direct services in the mainland area, let’s say you wanna open a coffee shop, or a restaurant, or a direct service providing company like A/C mechanical, or, you know, garage or something like that. So you need a mainland license for that, non-free zone license. And then you have free zones so free zones majorly like, you know, the free zone concept was very familiar, and I mean, it started when there was a requirement for an individual to have a local person to be a part of in the company when you’re setting up a company in the UAE. This was back in days, and so there was no option to have a company in the UAE being a hundred percent shareholder. So then comes.
Sadaf Abbas: So you must have the 1%…
Sarath Nadakkavil: Yes, local sponsorship was required.
Sadaf Abbas: Yes, absolutely.
Sarath Nadakkavil: Then came the concept of free zone wherein any expatriate can have a 100% shareholder without having any local sponsor. So yeah, this was the reason why free zones were booming, people then came to UAE as 100% shareholders with 100% FDI and because you have..
Sadaf Abbas: And the process is very quick now.
Sarath Nadakkavil: Very quick and simple. Yeah. And then, yes, you, because with free zones, you have 100% repatriation of profit, 100% reparation of your capital. So whatever you invest here, whatever you get from here, you can take all of it. There is no like, you know, mandatory fees or payment to be made to the local requirements.
Sadaf Abbas: But there are annual company registration charges, right?
Sarath Nadakkavil: Absolutely.
Sadaf Abbas: There’s no corporate tax right now in the UAE. There’s VAT, there’s very..
Sarath Nadakkavil: But yeah, from next year. And then, obviously, you have exceptions, that is another point. I will come to that later about the corporate tax and the designated zones.. So, yes we were discussing the 3 options. So the free zone concept became familiar right after that and now it is in a different path, I would say, because right now, even the mainland companies, you can set up the company with 100% ownership, but limited to certain activities.
Sarath Nadakkavil: But yeah, it’s more liberal now. But still the free zone concept is very much in demand because of how easy it is to operate a free zone company. Open, operate and maintain the companies competitively easier. Yeah. And then with RAKEZ especially, right now, the corporate tax is there so there are certain free zones which are called designated free zones. So the companies in designated zones, if they’re doing qualifying activities, they can get exemption from the corporate tax. So we are one of the designated zones. So that is another major benefit a client can get when they choose RAKEZ as an authority for licensing.
Sadaf Abbas: So now, coming to the next question Sarath, RAKEZ is known for supporting SMEsand startups. What key benefits does RAKEZ offer to help these businesses succeed?
Sarath Nadakkavil: Correct! So as I told you, we’re not just focusing on one particular industry or one stream of audience. So we are catering every startup, everything right. So SMEs and startups obviously the first 2 things they are looking at would be the cost, right. They want to start with the minimum cost, and then they will be having a huge aspiration to grow, unlimited growth. So if these are the main 2 focus areas then RAKEZ is the best option, I would say because we offer one of the most cost effective packages in the UAE to start with. We provide you with the licensing, and then for the visas. So we support you through the entire process of company setup and the visa, so that you can operate the business easily and freely, having an Emirates id setting up your corporate account in the UAE .And in terms of growth, because certain free zones kind of limits you because they don’t have facilities to offer you. Let’s say, if you want to start as a trading company in mobile phones. And then after 5 years, if you want to have a manufacturing unit you know, with RAKEZ that is possible without making any other changes, because we provide you with a co-working space to start with as a startup company. And then gradually when you grow, you can move it to an office facility or a second phase could be, you know having a small warehouse with an installation unit, and then another second, another step can be like having your own industrial land built, having a 10,000 square meter facility with the labor accommodation. So that is what I told you like the growth is unlimited with RAKEZ like for any business in any stage of the business you can
Sadaf Abbas: Easily get it.
Sarath Nadakkavil: get into that, yeah. Thanks.
Sadaf Abbas: What trends are you observing in the free zone sector, and how is RAKEZ adapting to stay ahead?
Sarath Nadakkavil: Yeah. So initially in the introduction, I told you we are very updated that way, like you know adding activities. So if I give you an example like, you know, adding activities related to AI metaverse. And having packages combined in particular, for e-commerce businesses having partnership with the e-commerce service providers, so that way RAKEZ is supporting the entire ecosystem, like it’s there. It’s not just that we are just issuing the license and then we say, inna ma salama, no, not like that. We are supporting you throughout the process from the beginning. And we value the feedback from the customers and make products based on that, we update our list of activities, we update our product list based on the requirements from the customers.
Sadaf Abbas: Can you share a success story of a business that thrived under RAKEZ? What factors contributed to its success?
Sarath Nadakkavil: Sure. So I mean there are so many companies, as I told you, like you know major international brands like best manufacturers brands from India Ashok LeyLand, and then we have Dabur, we have Ahmad Tea, we have Itel Food. So all industries are covered. We have a Streit Group. So they all started, like, you know, somehow, as small companies. And then I mean, obviously, they are big names outside but you know being here in the UAE and starting from here and getting the right system and support, they all have: grown exponentially. And then there are so many other smaller companies I would say they’ve started very small and then, I mean, you know, started with a Flexico working space and then right now operating with a warehouse on an industrial unit. So yeah, there’s so many growth stories and then I just mentioned a few names right now. The international names you are aware of.
Sadaf Abbas: Yeah, thank you. Yeah. How does the partnership with Oak Business Consultant benefit RAKEZ businesses? What unique value does it bring?
Sarath Nadakkavil: Sure. So I mean, currently, as I told you we are expanding. We are expanding in terms of you already there, and you know we have regional offices all across, like we have in Germany, we have it in India, we have a regional office in Abu Dhabi. And now the expansion is not just that we are having a branch or something like that, now we are collaborating with experts in the regional areas like you and like other major companies. So for example, right now somebody wants to come to RAKEZ, and maybe from your country it could be difficult for them to come and have a discussion. So when they come through you, you as a registered RAKEZ’s referral partner can help them. Obviously with your industry, experience and your knowledge, you can provide them with assistance. And with RAKEZ we can collaborate and give them the best and customizable products to give them value for money. And not just
Sadaf Abbas: Not just yeah, not just to register companies.
Sarath Nadakkavil: Right and the right advice. So you must have experienced it through like, we just started the journey, now we have multiple conversations even before this. So you know how we collaborate and then how we present RAKEZ. And then the information is passed on every client so yeah, so that’s what I mean, every client is important, and especially coming from a Channel partner, is more responsibility for us, because we have to give the best to you, so that you can give the best to your customer, and then we can grow.
Sadaf Abbas: Yes, absolutely. Over here, I need to add one thing that basically my purpose or my company’s purpose as a Channel partner is not just to register a company. The main core value behind that is the feasibility study. Either that region is good for them, which free zone is good for them, what will be the cost, how much is the cost annually and fixed cost and after that, what will be their finance department, what will the accountability, business plan, financial modeling, financial analyzes, business valuations for the investment purpose, so basically, the core values are these. And then we are accommodating with the help of you, adding value services, or more like providing company registration through you, providing the corporate funding and corporate registration which is mandatory as well and the voluntary as well, same like the VAT registration, VAT filing. So the main thing is not just to provide one step, we are trying to give the whole bunch of services so we are helping the SMEs and startups because they are new to the region.
Sarath Nadakkavil: Absolutely, right. We are just starting. We are just the starting point actually, so.
Sadaf Abbas: Yes, yes.
Sarath Nadakkavil: But the beginning is not right, then things can go wrong, right? So we will be like that. So I think obviously, whenever we have a client, we discuss and then we give the best solution. So I think that is the unique proposition we are having with you. And yeah, and offering the right product.
Sadaf Abbas: Absolutely totally agree. Now during the podcast I just clicked the idea, and I will share with my audience as well that we are going to make the feasibility studies as well, and we are doing the feasibility study on each free zone. Right? So people can easily analyze themselves to see which free zone is best for them, which kind of licenses where, where the management of the free zones are available, majority of the concern the clients have is having that they need to move on let’s say RAS Al Khaimah . Remember Sarath, I told you that this is just a concept so Ras Al Khaimah is far behind I think so 2 hours or one and a half hours traveling but if you want to register a company, you don’t need to go to Ras Al Khaimah, right, Sarah?
Sarath Nadakkavil: Yeah, yeah, absolutely. So the process is 100% online remotely.
Sadaf Abbas: Yeah.
Sarath Nadakkavil: They didn’t even need to come to the UAE. We can do everything online. It’s often, remotely, we can do company information you can apply for the visa, the signatures. It’s e-signatures right now so you know we’ll be sending you documents to sign, you can sign it at home, using your mobile phone or your laptop. So things are much simpler and company setup can be done in 3 to 4 working days. Once you set up the company, then you can apply for the visa, that visa application. Again, we have the online portal, and you know, easy online access. So that way everything can be taken care of online itself. And then once you set up sorry, once you apply for the visa, you receive the entry visa and the entry visa will help you to enter the UAE. Then you do the medical examination and biometrics for the Emirates. ID. So this is the process, step by process, from start companies set up to visa. And all this stuff can be done online. Your physical presence is only required here for the medical examination and the biometrics for the Emirates ID. So for the rest of the process, we can do it online.
Sadaf Abbas: (inaudible)
Sarath Nadakkavil: And then do it from Dubai, Ras Al Khaimah is one and a half hour drive from Dubai. But we have an office here in Dubai, a representative office. I’m actually sitting in the Dubai office of RAKEZ. And we have the entire team here so it doesn’t matter whether you know you’re setting up in the Ras Al Khaimah, but you’re getting full service in Dubai. And 99% can be done online, 1% you can do it from Dubai. Yeah.
Sadaf Abbas: So we already answered the question. But let’s repeat the question again. What are your expectations for this partnership, and how do you see it supporting business growth within RAKEZ?
Sarath Nadakkavil: See, every partnership that way is important. And you know, as you rightly said, it’s just not about registering the companies or just registering the companies and having so many companies in the portfolio. It’s like the feedback you give us. You know how the market in your home country, how it operates, and how it operates when it comes to your audience customers? So the partnership is all about exchanging ideas, providing or coming to a best solution. Because when we discuss with you we get more information, what are the requirements from your client, how do they see RAKEZ as an authority and what are their expectations? So we always try to catch up and yeah, so the expectation is to have that synergy, you know, and then yes giving the best services to the client. Obviously, that is also, I mean, the major concern here because, you see so many consultants here and then sometimes customers are being offered with wrong products and some mis-sold. And these things are happening in the market. So, having the right partnership with the right channel partner is also very important.
Sadaf Abbas: Very important, absolutely.
Sarath Nadakkavil: As a government authority. So yes, in that way we are really fortunate, you know that we can collaborate with you and obviously your expertise can help us grow and grow your.
Sadaf Abbas: Yeah, absolutely even Sarath
Sarath Nadakkavil: Yeah.
Sadaf Abbas: I mean there are so many startup companies, there are so many industries and construction companies, even real estate companies are interested in RAKEZ, and we can easily help them to grow in terms of the numbers. How? as a financial consultancy.So basically, if these companies are growing, the RAKEZ area is also growing. So we are also connected with each other. We are totally interlinked so if somebody is growing, we are growing, if you are growing. so we are growing as well, and the major thing, the end result is the client satisfaction.
Sarath Nadakkavil: Absolutely .
Sadaf Abbas: Yeah, so we are basically B2B service providers. And we are helping the clients to grow, same like you and I believe that this partnership collaboration will be in future for more decades IN SHA ALLAH.
Sarath Nadakkavil: True.
Sadaf Abbas: What advice would you give to entrepreneurs considering RAKEZ for their business setup?
Sarath Nadakkavil: So advice, I would say you only need to take care of yours, I mean they only need to take care of their brainstorming regarding how they want to operate and what are their major areas to be focused, I mean the research from the business perspective.Okay? like, about the market, how the market is operating. The rest of the things like the admin site, the company set up, and then the visa just leave it to us, we take care of it.
Sadaf Abbas: You just need to focus, to operate a business.
Sarath Nadakkavil: Absolutely so. I mean, I would say, research. And yeah, because that is one point I always see the people lacking because doing enough research about..
Sadaf Abbas: Especially that there’s the major problem is that Sarath, I’m not blaming the Internet. Basically, the UAE is just blooming, they are emerging and data is not there just like a US market data is there. So we are also helping Sarath. You know, you have no idea about this, but we are also doing the market research, and we are publishing it into our website.
Sarath Nadakkavil: Absolutely.
Sadaf Abbas: Just to give the idea, what is..
Sarath Nadakkavil: Understood.
Sadaf Abbas: What is going on, how many mattresses are there? And believe me, just like your free zones and other free zones. if they are giving us the data, we can make the analytics. And we will provide the information to the market. So yes, this market has bloomed.
Sarath Nadakkavil: Yeah, yeah, so it’s all about data nowadays. And then, you need to have high data information. And before you start anything, even if it’s a small business, you know. So that’s my advice.
Sadaf Abbas: Source of information is very important.
Sarath Nadakkavil: Yes, the source and partnering with the right authorities and consultants. That is also key. When you are entering the UAE market.
Sadaf Abbas: Perfect. So is there anything else you would like to share about your role in RAKEZ, or the partnership with the Oak Business Consultant?
Sarath Nadakkavil: Yeah. So I think we have covered almost all the areas in terms of company information. And you know how RAKEZ can help you setting up your company and having your visas and corporate bank account and stuff like that. And obviously Oak Business Consultant would be a plus for anyone who is using RAKEZ through you because you are our channel partner first of all, and then you have access to the right person here, you know the key account person here, whether it comes to visas or customer service or anything. So yes I think that’s all about it for now and then. Yeah.
Sadaf Abbas: Thank you, Sarath, for joining us today, and for sharing your invaluable insights. It’s been a pleasure to have you as the business catalyst.
Sarath Nadakkavil: Same here.
Sadaf Abbas: To my listener, stay tuned for more enlightenment. Conversation with industry leaders like Sarath, who are shaping the future business until next time.