Starting a Food & Beverage Business in Ras Al Khaimah: Cloud Kitchen or Restaurant?

Ras Al Khaimah (RAK) is not only gaining traction as a tourist hotspot but also as an emerging destination for entrepreneurs looking to invest in the food and beverage (F&B) industry. From bustling beach spots to the increasing demand for delivery services, the emirate offers a promising ground for both traditional restaurants and innovative cloud kitchens.

Why Start a Food Business in RAK?

Affordable Setup Costs: Compared to Dubai or Abu Dhabi, setup costs in RAK are significantly lower.

Tourism Growth: With an influx of tourists, the demand for diverse cuisines and dining experiences is rising.

Growing Residential Areas: New developments and expat communities create consistent demand for food services.

Supportive Government: RAK authorities encourage F&B investment with clear licensing procedures and incentives.

Why Choose Ras Al Khaimah for Your F&B Business?

Ras Al Khaimah is rapidly becoming a hotspot for entrepreneurs in the food and beverage industry. According to the Ras Al Khaimah Economic Zone (RAKEZ), over 1,800 new companies were registered in the first half of 2025 alone, reflecting a 15% growth year-on-year. The F&B sector has been one of the key contributors to this expansion, particularly with the rise of cloud kitchens, boutique cafes, and delivery-first models.

As tourism, residential communities, and eco-tourism destinations continue to grow across the emirate, demand for diverse culinary experiences is rising fast. More locals, expats, and tourists are seeking quality, convenience, and innovation in food services—whether it’s healthy meals delivered to their resort, or dining in a themed waterfront restaurant in Al Marjan Island.

RAK’s low setup costs, modern infrastructure, and business-friendly environment are attracting investors who want to avoid the saturated markets of Dubai and Abu Dhabi. Combined with upcoming hospitality and leisure projects, the emirate is perfectly positioned for scalable F&B ventures.

Growth Trends & Business Momentum in 2025

1. Surge in New Business Licenses

The Ras Al Khaimah Department of Economic Development reported a 17.6% increase in new business licenses issued during the first half of 2025 (1,219 licenses versus 1,037 in H1 2024) [Source: Rakez, Reddit, Khaleej times]

Within these, the Accommodation & Food Services sector accounted for 13.2% of all new licences—ranking third after wholesale/retail and construction sectors [Source: Khaleej times]

2. RAKEZ Business Registrations Growth

8,506 companies joined Ras Al Khaimah Economic Zone (RAKEZ) in H1 2025 alone—a remarkable 43% surge year-on-year from H1 2024 [Source: ZAWYA,Khaleej times]

The predominant industries among new registrations included Food & Beverage, e‑commerce, trading, and service sectors

As of early 2025, RAKEZ is home to over 1,000 F&B companies, spanning manufacturing, catering, packaging, and food trading businesses [Source: Timesofdubai, ZAWYA]

3. Rapid Expansion Over 2024

In 2024, RAKEZ added 13,141 companies—a 66% growth compared to 2023—which highlights sustained momentum going into 2025 [Source: Khaleej times]

What This Means for F&B Entrepreneurs

Growing Consumer Demand: The expanding local community and tourism sector are driving demand for diverse cuisines, healthy meal prep, cloud kitchens, cafés, and bakeries.

Strong Infrastructure & Support:

Efficient Licensing: Streamlined licensing processes through RAK DED and RAKEZ.

F&B Ecosystem: Access to a supply chain and logistics infrastructure tailored for food businesses

Investor Confidence: The fast-growing business ecosystem reflects confidence from international investors—with India, Pakistan, the UK, Egypt, and the Philippines among top new company registrants

Snapshot at a Glance

Metric	Value
New licenses in H1 2025	1,219 (↑ 17.6%)
F&B sector share	13.2% of licenses
RAKEZ new registrations H1 2025	8,506 (↑ 43%)
RAKEZ new companies in 2024	13,141 (↑ 66%)
F&B companies at RAKEZ	Over 1,000

Business Models to Consider

1. Traditional Restaurant

Best for: Those offering experiential dining, themed eateries, or premium cuisines.

Location: Ideal near beach resorts, malls, or residential neighborhoods.

Licensing: Requires a trade license from RAK DED, food safety approval from RAK Municipality.

2. Cloud Kitchen (Delivery-Only)

Best for: Startups with limited capital, testing new cuisines, or focusing on food delivery.

Setup: Operate from a shared kitchen or set up your own kitchen without a dine-in space.

Benefits: Low overhead, faster launch, perfect for online platforms like Talabat, Zomato, Deliveroo.

Steps to Start Your F&B Business in RAK

Choose a Business Model: Cloud kitchen or dine-in restaurant.

Select the Right Location: Based on your target audience and budget.

Register the Business: Through RAK DED (Mainland) or a free zone.

Apply for Food & Safety Permits: Health and safety compliance with RAK Municipality.

Design and Fit-Out: Restaurant or kitchen interiors must meet hygiene standards.

Launch Online Delivery Platforms: Partner with food delivery aggregators.

Potential Challenges

Competition from established brands in nearby emirates.
Recruiting experienced chefs or kitchen staff.
Building online visibility for cloud kitchens.

Business Opportunities in F&B RAK

Beach Cafés & Juice Bars: High demand in Al Marjan Island & Corniche areas.

Ethnic Cuisine Restaurants: Indian, Filipino, Lebanese, and African food are growing niches.

Healthy Meal Prep & Diet Kitchens: Ideal for fitness-conscious residents and tourists.

Dessert Shops & Bakeries: Especially popular in malls and tourist hubs.

How Beyond View Can Help

At Beyond View Business Services, we specialize in helping entrepreneurs establish successful F&B ventures in Ras Al Khaimah. Our services include:

Business license registration (RAK Mainland or Free Zone)
Assistance with kitchen or restaurant approvals
PRO services and visa processing
Connecting you with food delivery aggregators
Location scouting and lease assistance

Whether you want to launch a delivery-only cloud kitchen or a waterfront restaurant, our experienced team will walk you through every step — legally, strategically, and efficiently.

Conclusion

The data strongly indicates that 2025 is a peak year for new ventures in Ras Al Khaimah, especially within the F&B sector. Whether you’re planning a cloud kitchen, restaurant, or packaged food operation, the emirate offers: