16 Sep

Driving the future: Why global automotive giants are choosing Ras Al Khaimah as their central base

Published by: Automobilwoche


Ras Al Khaimah, the UAE is remerging as a magnet for global automotive businesses

The global automotive industry is rapidly evolving with electrification, smart mobility, and bespoke engineering no longer being trends but necessities. As the world rethinks how vehicles are made, powered, and experienced, manufacturers and innovators are actively seeking new global bases that blend market access with innovation, scalability, and sustainability. In the Middle East, the United Arab Emirates (UAE) is rising to meet this demand, offering the infrastructure, ambition, and consumer appetite needed to accelerate the future of mobility.

At the heart of this transformation lies Ras Al Khaimah, the UAE’s northernmost emirate, which is rapidly establishing itself as a magnet for global automotive businesses through its integrated business hub, the Ras Al Khaimah Economic Zone (RAKEZ).

UAE: A market driven by passion and innovation

In the UAE, vehicles represent more than mobility. They reflect the nation’s rapid development and affinity for cutting-edge technology and luxury.

Global data and business intelligence platform, Statista, projects passenger car sales in the country to more than double between 2021 and 2026, surpassing half a million units. As the second-largest automotive market in the Gulf Cooperation Council (GCC), the UAE presents both scale and strategic importance.

Known for its strong demand for premium and performance vehicles, the country also offers ideal conditions for ownership, including tax-free income, low fuel prices, and world-class infrastructure.


RAKEZ is one of the MENA region’s largest and fastest-growing economic zones

Yet, even as demand for luxury remains high, the UAE is steering toward a more sustainable future. With a national goal for 50% of all new vehicles to be electric or hybrid by 2030, the government is rolling out incentives such as subsidies, free charging, and reduced registration fees. This dual emphasis on performance and sustainability positions the UAE as a powerful driver of automotive innovation and growth.

Ras Al Khaimah: The UAE’s emerging automotive powerhouse

Located in the northernmost part of the UAE and just 45 minutes from Dubai, Ras Al Khaimah stands out for its industrial growth, strategic foresight, and openness to innovation. The emirate’s prime location, cost-effective operations, and business-friendly policies have attracted a growing cluster of global automotive players to its dedicated business ecosystem: RAKEZ.

Home to more than 35,000 companies from over 100 countries, RAKEZ provides a full spectrum of solutions for automotive businesses, from ready-built industrial facilities and customisable plots to logistics support and 100% foreign ownership. With specialised hubs tailored for heavy manufacturing and assembly, RAKEZ combines practical infrastructure with strategic vision.

Where manufacturers scale

Global manufacturers have quickly seized the opportunity to establish a strong regional presence within RAKEZ, leveraging its infrastructure and strategic location to serve the Middle East and beyond. Ashok Leyland, one of the world’s leading producers of commercial vehicles, operates a facility in RAKEZ that manufactures 4,000 buses annually for the GCC market. The company has successfully localised key parts of its supply chain thanks to the emirate’s efficient logistics ecosystem.


Ashok Leyland' RAKEZ faclity procudes 4,000 buses per year

Ras Al Khaimah has also emerged as a prominent centre for armoured vehicle manufacturing. Companies like Mahindra Emirates Vehicle Armouring, Shell Special Vehicles, and International Armoured Group use their RAKEZ-based facilities to design, engineer, and export a wide range of tactical and luxury armoured vehicles, all tailored to demanding global markets across defence, security, and commercial sectors.

Adding to the industrial mix are companies like Mobile Land Systems, which operates a 35,000 m² production base in the emirate, and Outback Armour Suspension, an Australian firm engineering suspension systems for armoured and 4x4 vehicles. Meanwhile, Motherson Sumi Systems Ltd., a global components giant, manufactures wiring harnesses, mirrors, and injection-moulded products at its RAKEZ unit, supplying leading original equipment manufacturers across Europe, Asia, and the Americas.

Where innovation accelerates

RAKEZ isn’t just powering production, but also emerging as a regional base for automotive research, engineering, and innovation. Triton EV, a US-based cleantech mobility firm, selected Ras Al Khaimah for its first electric vehicle assembly plant in the Middle East with the aim of serving the growing demand for sustainable logistics solutions.

California-headquartered Faraday Future, known for its AI-integrated electric vehicles, is setting up a 108,000 ft² regional base in RAKEZ to house engineering, operations, and innovation teams, underscoring Ras Al Khaimah’s emergence as a cleantech innovation hub.


Faraday Future's regional facility launch in Ras Al Khaimah

From the US automotive heartland, Caresoft Global is expanding its presence in RAKEZ, delivering sophisticated benchmarking, consulting, and engineering solutions to global manufacturers, including Ford, Volkswagen, Tesla, BYD and more, looking to reduce production costs through style innovations and cost-reduction ideas. This marks a major step forward for the region’s high-value engineering services sector.


Caresoft Global offers benchmarking and engineering solutions for leading automotive manufacturers

On the frontier of smart mobility, BaseTracK continues to develop autonomous truck technology within its RAKEZ-based R&D centre. Its first local autonomous truck was unveiled during a test event in 2023, highlighting the zone’s potential as a platform for live experimentation and cutting-edge development.


BaseTrack's autonomus truck roll-out in Ras Al Khaimah

In the precision modification space, Global Conversions has positioned itself as a niche leader, converting American muscle cars from left-hand to right-hand drive. Tapping into the UAE’s performance car culture and strong global demand, the company is using RAKEZ as a base for international expansion.


Global Conversions does steering conversions for high-performance vehicles

Together, these success stories illustrate how RAKEZ is building not just an industrial hub, but a forward-looking innovation ecosystem where automotive companies of every capacity can develop, build, and scale the technologies that will define the next generation of mobility.

A platform for what’s next

As global trends push the automotive industry toward a future that is cleaner, smarter, and more customised, Ras Al Khaimah is prepared to lead from the front. RAKEZ continues to invest in next-generation infrastructure, enhance service delivery, and expand industrial capacity, welcoming both established brands and rising disruptors.

At the heart of this vision is RAKEZ Tech Flex: an innovative and vibrant business community positioned to be a growth catalyst in Ras Al Khaimah. Designed to attract sustainable, future-forward businesses, Tech Flex connects entrepreneurs, technologists, and industry leaders in an environment built for collaboration and impact. For automotive companies focused on advanced mobility, clean energy, and intelligent systems, Tech Flex offers the ideal launchpad for scalable innovation.

With its ideal location, strong policy backing, and alignment with national sustainability goals, RAKEZ is poised to become the region’s definitive automotive hub. For companies ready to scale, innovate, and reach new markets, RAKEZ isn’t just an address—it’s a strategic decision.


المزيد من الأخبار

  • جولة افتراضية
  • استبيان السعادة
  • طلب اتصال
  • بوابة 360
  • تحدث إلينا الآن
  • Get in touch