The Ras Al Khaimah Media City is going on an expansion drive by investing Dh80 million into building 10 studios, 10 dubbing theatres and 20 shooting stages for films and TV productions.

"The new facilities under construction are expected to be completed in four months and are aimed to offer a more convenient place for media-related companies that are establishing business in the UAE with RAK as their base," said Junaid Shaikh, Chief Executive of RAK Media City.

"The new facilities will be used by publishing, advertising and media houses as production bases. Media companies from countries such as the UK, India and South Africa have been expanding their business to the UAE and eying RAK Media City as headquarters for their operations," said Shaikh.

Available space, competitive rental costs, service convenience and an upcoming future with economic growth in RAK are the main reasons why media companies are starting to have a presence in the emirate, added Shaikh.

In recent months, more than 20 international companies from the publishing, advertising and media sector have established activities in the RAK media free zone.

"We wanted to start our activities from the Dubai Media City about a year ago, but we were told it was full and we would have to wait," said Asha Mohen, Middle East Business Development Manager of Machinery Market, a UK-based publishing company. "I was told about the new RAK Media Zone and that is where we are now and we have not had any complaint on anything so far."

Mirage Holdings, a Hollywood-based production company, said it plans to invest $1 billion (Dh3.67bn) on a two million sq m area as part of its international expansion. The project will include a shopping mall, golf course, polo field, filmmaking academy, film museum and residential buildings, Mirage Holdings said earlier this year. The project will produce both local and Hollywood productions.

The RAK Government has been playing a major role in encouraging local and foreign investors to come into the emirate and use it as a base for their business activities across the UAE and the GCC region.

The RAK Free Trade Zone Authority, RAK Media City and RAK Investment Authority have been the major contributors in putting Ras Al Khamiah on the regional and international map in industries such as real estate, tourism, media and communications.



THE COMPETITION HEATS UP

The UAE is set to see aggressive competition among media free zones to offer company and individual licensing. Following the track record set by Dubai Media City to become the media hub of the region, emerging "media cities" in other Emirates are bidding the least licensing fees.

Industry observers do not see that as robbing Dubai Media City of potential opportunity since it is already fully occupied. Freelancers and companies, however, will soon have more choices to get access to the media market in the UAE and the region.

Licensing fees at the Dubai Media City range between Dh15,000 and Dh20,000 based on the business activity of the company. An advertising agency may have to pay Dh20,000 per annum, while it is Dh15,000 for a new media company. The size of the business or the number of staff it employs does not have any bearing on the fee.

However, the type of legal entity that a company or individual wishes to incorporate such as a branch, free zone, LLC or freelancer, could have a bearing on the fee.

The current rent for new entrants is a flat rate of Dh200 per sq
ft annually.

RAK Media City, on the other hand, offers a licence for a fixed fee of Dh15,000. Rent is equivalent to the dirham per sq ft per annum.

At Creative City – the Fujairah Media Free Zone – freelancers and companies alike can obtain a licence for Dh12,500.

The annual lease fee is estimated at Dh90 per sq ft, with a minimum office space of 350 sq ft. The Fujairah free zone offers the service of providing the visa for Dh3,500, with an additional visa security payment of another Dh3,500 that is refundable at the end of the contract.

A hot desk costs another Dh18,000, call centre package worth Dh2,000 per month and an amendment fee of Dh12,500.