Economic Growth in Ras Al Khaimah: 13.5% Increase in Business Establishments Leads to 2803 New Jobs
Data from the Ras Al Khaimah Chamber of Commerce and Industry for the year 2025 indicates a continuation of economic activity in the emirate, with the establishment of 2446 new businesses representing a 13.5% annual growth compared to the previous year. This serves as a strong indicator of expanding business confidence and an improving regulatory and investment environment.
Dr. Ahmed Al Shimmili, Acting Director General of the Ras Al Khaimah Chamber of Commerce and Industry, stated that the 2025 data signals a positive trend in business establishment and the expansion of economic activities, with a clear focus on small and medium-sized enterprises, as well as dominance in the commercial and professional sectors. The strength of the trade and construction sectors continues to be notable.
The capital indicators and workforce size confirm that the emirate is not only experiencing a numerical increase in business registrations, but also witnessing substantial growth in economic and investment activities, solidifying its position as a competitive business hub within the national and regional economic landscape. It was noted that the estimated capital planned for new investments is around 2.29 billion dirhams for 2025, and the expected workforce for these new enterprises is approximately 2803 individuals.
Al Shimmili further explained that the total new memberships included 317 businesses within Ras Al Khaimah’s free zones, in addition to 126 new branches of local and foreign enterprises. This reflects a dual trend of both creating new companies and the horizontal expansion of existing businesses through new branches. The fourth quarter of 2025 recorded the highest rate of registrations, with 663 new establishments, indicating a surge in investment decisions by year-end, coinciding with financial planning cycles and the launch of new projects.
Regarding legal forms, “Citizen Service Agent” businesses led the way with a share of 26.2%, showcasing the continued appeal of this legal model for companies entering the local market. Limited liability companies followed with 18.8%, then individual establishments at 16.7%, and sole proprietorships with limited liability at 16.6%. Additionally, professional companies accounted for 12.6%, while businesses classified as free zone limited liability companies made up 7.8%.
Al Shimmili highlighted that the chamber recorded 19 branches for local companies, 4 branches for free zone establishments, 3 branches for foreign firms, and 2 for Gulf companies, along with one public joint-stock company. This diversity in legal structures reflects the flexible legislative environment of the emirate, which accommodates a variety of business models, whether local, regional, or international.
Furthermore, sectoral distribution analysis based on international economic classification standards reveals that commercial activity remains the primary driver for new memberships. The wholesale and retail trade sector, along with vehicle repair, accounted for 37.5% of the total registered businesses, equating to 1659 establishments. The construction sector followed closely with 848 new memberships, indicating ongoing activity in infrastructure and construction projects. The accommodation and food services sector reported 469 memberships, supported by tourism growth and the expansion of related services.
Other memberships were spread across administrative and support services, manufacturing industries, professional, scientific, and technical activities, transportation and storage, real estate activities, arts, entertainment and recreation, along with health, information and communication, financial activities, education, agriculture, and public utilities. This distribution illustrates clear economic diversification while traditional sectors such as trade and construction continue to hold prominence, joined by a growing presence of professional and manufacturing activities.
It is important to note that the declared capital investments do not include the investments from 317 businesses in free zones and the 126 branches of local and foreign establishments, which suggests that the actual size of expected investments exceeds the announced figures, enhancing the significance of the overall investment indicators and the expansion of economic activities in Ras Al Khaimah.