With an attractive investment climate backed by a proactive government that firmly encourages free enterprise, Ras Al-Khaimah is positioning itself as a top business destination, regardless of its lack of significant oil reserves. The emirate has attracted the third-highest level of project investment relative to GDP in the UAE – with a value of around £12.6 billion – and accounts for a full five per cent of total GCC project investment.

Spearheading efforts to expand the local economy is the Investment and Development Office (IDO), which has laid the groundwork to attract a further £6.6 billion in inward investment over the next few years. Ras Al-Khaimah certainly has plenty to offer investors, especially in terms of real estate, tourism and the leisure industry.

Nestling between the Al Hajjar Mountains to the east and the Gulf to the west, the emirate’s highly varied landscape of valleys, peaks, deserts and unspoilt coastline contrasts sharply with many other parts of the UAE.

Towering mountains provide an impressive setting for the emirate’s capital

The city of Ras Al-Khaimah, the capital, is undergoing multiple new construction projects. Key developments include RAK Financial City, which has been designed as a new hub for the offshore financial operations of the regional business community. The almost 2,5 million square feet project will include uniquely designed towers, up to 65 storeys high, providing office, hotel and residential space.

In terms of real estate, Ras Al-Khaimah is promoting low-rise developments focused on a comfortable, beach lifestyle. The emirate offers good value in terms of the cost of land and leasing, plus high quality living conditions. Its modest pricing in comparison to certain other parts of the UAE is a major selling point. This value for money, easy living appeal has won over large numbers of weekenders coming from Dubai and elsewhere, as well as attracting longer-term residents.

Saqr Port is on the way to becoming one of the most modern ports in the region. Earlier this year a new container terminal opened with a capacity to handle 350,000 TEUs: the first phase of a massive expansion. Phase two will see capacity enhanced to around 3 million TEUs over a period of five years.

In April, the IDO announced a new joint venture project with the US-based Argentum Development Company to build an International Hospitality Trade and Training Zone. A hub for the global hospitality industry, it will include a free trade zone area and a training and educational campus, which will position Ras Al-Khaimah as a centre of excellence in the leisure industry.

The capital is not the only development hub. The huge resort of Al Hamra Village comprises various sized villas and apartments offering luxury accommodation for both residents and weekenders. Facing out to the Gulf, it has a marina with 200 yachting berths allowing boat owners quick and easy access to the sailing and fishing opportunities along the coast.

In fact, a variety of tourism and leisure projects are taking shape. Some 17 miles south-west of Ras Al-Khaimah city centre, Al Marjan Island will be the emirate’s first man-made island venture, reflecting the Dubai influence. This almost £1 billion cluster of coral shaped islands is due for completion in 2009.

A more unusual development will be the Jebel Jais Mountain Resort, which will be built on one of the highest points in the Al Hajjar Mountain range, and will offer visitors five-star hotel and conference facilities, and even a cable car leading to an outdoor winter snow skiing slope.

To cater for increased numbers of visitors, the international airport is being upgraded and the emirate has launched the UAE’s fourth national airline, Rak Airways. What’s more, plans have even been announced to develop a US$265 million commercial spaceport for the operation of sub-orbital flights.