KARACHI: Around 400 Pakistani companies are enjoying tax-free environment with 100 per cent foreign ownership in Ras Al Khaimah Free Trade Zone (RAK FTZ), Director for Regional Business Development Wilson Chan said here on Saturday.

Addressing business community at a local hotel, he said Pakistani industrialists could explore untapped potential for their products and grab the markets of Africa, Europe and South Asia, by operating in the free trade zone.

The FTZ of Ras Al Khaimah, one of the seven members of the United Arab Emirates (UAE), was home for around 8,000 companies of over 105 countries.

The biggest advantage of setting up industry in RAK FTZ, he said, was that it allowed 100pc ownership without getting local partner, which was otherwise a must for companies operating outside of the zone anywhere in the UAE.

He disclosed that around 1.7 million Pakistanis were already working in industries including textiles, raw materials, cotton, fabrics, clothes and clothing accessories, as well as building materials, rice, wheat and food processing machines.

Above all, there were no taxes including corporate tax on profits made on investments and industrial activities. Besides, the UAE did not collect income tax, personal tax and even withholding tax at any stage of commercial and industrial activity, he added.

Similarly, Mr Chan said that under global treaties, avoidance of double taxation was being honoured by the UAE and the country ranks 23rd on World Bank’s Ease of Doing Business index.

Due to political stability and secure environment, the free trade zone was now being ranked even above South Korea, he said.

Mr Chan said the government issued business licence after due diligence against a fee of $4,000 and also issued visas without compromising on law of the land.

Speaking on the occasion, Karachi Chamber of Commerce and Industry (KCCI) President Iftikhar Vohra said Pakistani products were behind Indian products in terms of market reach to Africa and the Middle East.

The RAK free trade zone offered golden opportunities to those Pakistanis who want to bridge this gap, besides maintaining the quality of their brands and ensuring timely shipments, he said.

Published in Dawn, March 29th, 2015

On a mobile phone? Get the Dawn Mobile App: Apple Store | Google Play