Operating framework for all entities and persons in the RAK Economic Zone, issued under Law No. 2 of 2017: licensing, leasing, construction permits, dealing in products, employment, insurance, customs, health and safety, security, vehicles, inspections and penalties, applying alongside federal and local law.
The RAK Economic Zone Authority Operating Rules of 2023 are the day-to-day rulebook for everyone in the RAK Economic Zone. Rule 2 records that they are issued by the Board of Directors under Law No. 2 of 2017; Rule 3 extends the Authority's jurisdiction to both the Free Zone and the Non-Free Zone areas; Rule 4 applies them to entities, employees and anyone working in the Zone in addition to federal and Ras Al Khaimah law; Rule 5 brings them into effect on the date of issue; and Rule 6 repeals earlier notifications, circulars and directives on the same subject matter. The file on rakez.com is still named for the 2018 edition but its text is the 2023 Rules.
Rule 9 governs licences. Free Zone categories are industrial, commercial, service, general trading, e-commerce, educational, media, individual or professional and freelance permit; Non-Free Zone categories are industrial, commercial and professional (Rule 9.3). A licensee may carry on only its licensed activities (Rule 9.2), must name a manager on the licence (Rule 9.5), and holds a licence valid for at least twelve months that must be renewed no later than thirty days before expiry with a valid operation fitness certificate where applicable, a good-standing certificate, insurance policies and evidence that rent and charges are paid (Rule 9.7). Rule 10 ties premises to the licence, Rule 11 regulates pledges through a Security Register, and Rule 12 sets building permits and the annual operation fitness certificate, renewed 90 days before expiry.
Rule 13 confines Free Zone entities: no retail trading within the Free Zone area and no display or sale of products directly in mainland UAE; mainland trade is permitted only through an agent, representative, distributor or a licensed parent company (Rule 13.4). Rule 14 covers employment: agreements of up to three years with probation of up to six months (Rule 14.2), a visa security deposit of AED 2,000 (Rule 14.4), no retention of passports (Rule 14.7), salaries paid through the approved mechanism with compliance measured at more than 80% of employees paid (Rule 14.9), deductions capped at 50% (Rule 14.10), and gratuity of 21 days' wage for each of the first five years and 30 days thereafter, paid within 14 days of the end of employment (Rule 14.12). Rules 15 to 17 require insurance and a customs code.
Part 3 sets procedures for signage, accommodation, health, safety and environment, security and vehicles (Rules 18 to 23). Part 4 is enforcement: Rule 24 allows inspections, without notice in emergencies or suspected serious breaches; Rule 25 fixes the fines, from AED 5,000 for unlicensed activities and AED 5,000 per day for operating without a fitness certificate to AED 200,000 for serious environmental violations; and Rule 26 lets the Authority ban entry and exit after 15 days' written notice and repossess premises. The Rules are in force.
All entities licensed by the RAK Economic Zone Authority in the Free Zone and Non-Free Zone areas, their managers, employees, contractors and visitors, and anyone working or operating premises in the Zone; the Authority inspects, fines, bans and closes under Part 4.
| Rule 4 | The Rules apply to entities, employees and anyone working in the Zone, in addition to the applicable federal decrees, laws, rules and regulations and Ras Al Khaimah local laws and resolutions. |
| Rule 6 | Repeals the notifications, circulars and directives issued by the Authority before the Rules' date of issuance within the same subject matter. |
| Rule 9.3 | Free Zone licence categories: industrial, commercial, service, general trading, e-commerce, educational, media, individual or professional and freelance permit; Non-Free Zone categories: industrial, commercial and professional. |
| Rule 9.7 | A licence is valid for at least twelve months; renewal must be applied for no later than thirty days before expiry with a valid operation fitness certificate where applicable, a good-standing certificate, insurance policies and evidence of payment of rent and charges. |
| Rule 12.10 | An operation fitness certificate is required before operating; it is valid for one year and must be renewed 90 days before expiry. |
| Rule 13.1 | A Free Zone entity shall not conduct retail trading of its products within the Free Zone area, deal in contraband, or display or sell its products directly in mainland UAE. |
| Rule 13.4 | Trade in mainland UAE is permitted only through an agent, representative, distributor or the entity's parent company holding a licence for that activity in the UAE, subject to applicable laws. |
| Rule 14.2 | An employment agreement is for a definite period not exceeding three years; probation may not exceed six months and may be imposed only once. |
| Rule 14.9 | Salaries are due from the first day of the month after the registered payday, are late after thirty days, and a licensee is compliant when more than 80% of employees have been paid; transfers of 70% to 80% of salaries count as partial compliance with a further two-month grace period. |
| Rule 14.12 | End-of-service gratuity is 21 days' wage for each of the first five years of service and 30 days' wage for each year beyond; all entitlements are paid within 14 days of the end of the employment term. |
| Rule 24 | The Authority may inspect premises to monitor compliance and may enter at any time without prior notice in cases such as fire, noxious discharges or suspected serious breach; licensees and employees must cooperate. |
| Rule 25 | Fines: AED 5,000 for unlicensed activities; AED 5,000 and AED 7,500 per employee for employment violations with AED 10,000 and suspension on repetition; AED 5,000 to AED 20,000 for construction breaches; AED 5,000 per day without a fitness certificate; AED 5,000 and AED 25,000 for waste offences and up to AED 200,000 for serious environmental violations; AED 1,000 per unauthorised entry; up to AED 5,000 otherwise. |
Rule 25 fines: AED 5,000 for activities outside the licence, with revocation for listed serious grounds; AED 5,000 per employee for employing another licensee's staff and AED 7,500 per person for illegal employment, plus AED 10,000 and possible suspension on repetition; AED 5,000 per construction breach rising to AED 20,000; AED 5,000 per day for operating without a valid fitness certificate; AED 5,000 then AED 25,000 for improper waste disposal with remedial measures on a third offence and up to AED 200,000 for serious environmental violations; a warning then AED 1,000 per person per unauthorised entry; up to AED 5,000 for other violations and a joint AED 10,000 fine for sub-lease breaches. Fines escalate for repeat violations, premises may be closed for unpaid dues, and Rule 26 allows entry and exit bans after 15 days' notice and repossession.
Our RAKEZ clients' operational exposure sits here rather than in the Companies Regulations, and Polaris is itself bound by these Rules as a RAKEZ licensee. We run licence renewals against the thirty-day deadline in Rule 9.7 with the fitness certificate, insurance and good-standing documents in the file, and for warehouse and industrial clients we track the fitness certificate separately because Rule 25.5 charges AED 5,000 per day without one. On payroll our PRO and accounting teams keep the salary transfers inside the thirty-day window and above the 80% compliance threshold in Rule 14.9, lodge the AED 2,000 visa deposits and settle gratuity within 14 days of an exit. Rule 13 is the point we make to every trading client: a RAKEZ free zone entity may not sell directly into the mainland, so mainland sales go through a distributor, agent or a mainland company, and we set that structure up at the start rather than after an inspection.
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