Chapter 1 – Ras Al-Khaimah, The Pearl of the North
In the last decades, the United Arab Emirates (UAE) with its capital, Abu Dhabi, and the extravagant Dubai at the forefront, has positioned itself as one of the most attractive countries in the Gulf Region regarding innovation, technology, tourism and business.
Despite global economic uncertainty, the UAE have shown robust performance across all sectors. This resilience is fuelled by the safe-haven status of the Emirates, both geopolitically and economically. According to the World Bank and the International Monetary Fund (IMF), the UAE’s GDP is estimated to have grown by 3.0% in 2023 and this rate of growth is expected to improve further in 2024, to reach 4.7%.
By establishing major’s expansion plans and developments to drive growth through a global and long-term vision, as the Economic Growth Plan from the UAE government to double the economy by 2040, it has become evident that the country offers safety and robust growth potential. As Dubai is becoming more and more crowded and overwhelmed by a strong competition, investors and business makers are starting to look up and take advantage of other opportunities offered by other Emirates where high growth potential is, and Ras Al-Khaimah is one of them.
Focus: Ras Al-Khaimah – The Pearl of the North
Ras Al-Khaimah (RAK), ‘top of the tent’ in Arabic, is situated just an hour drive away from Dubai offers majestic mountains and a rich cultural heritage. RAK is known for seven millennia for its pearl industry, and even today, pearl fishing is still revered as one of the UAE’s treasured traditions.
Although historically RAK has been more serene and peaceful than Dubai, it is currently experiencing a remarkable transformation setting it in the front line to become one of the most prominent Emirates. The attractiveness of RAK is also constructed on the same model as the other Emirates, with a fully integrated scheme of business infrastructures, residency visa and 10-year Golden Visa for investors, 0% income taxes, as well as 0% taxes on real estate revenues, property ownership and profits related to real estate.
Wynn Al Marjan island: the first of its kind in the Middle East
What is leading this remarkable transformation is, beyond doubt, the development of the Wynn Casino announced in 2022, the first one in the Middle East and located on Al Marjan Island, a man-made island that has successfully transitioned into a world-class luxury resort destination.
The American Brand Wynn Resorts is known for its iconic resorts in Las Vegas and Macao. Developed in partnership with Wynn Resorts, RAK Hospitality Holding and Marjan, owned by the government of RAK and the master developer for freehold land, this multi-billion-dollar (approx. USD 3.9 billion) integrated resort development is set to become one of the most impactful projects ever delivered and will revolutionise both the Emirate and the region.
With more than 1.22m tourists in 2023, the Wynn Al Marjan Island resort will be completed in mid-2027 and is expected to create a significant growth for RAK’s global economy as the influx of tourists is projected to rise from 4m to 5m tourists in 2027. Furthermore, it will attract a diverse crowd, made up of international tourists, including Asian casino players, high-level executives managing the Casino Resort, international hospitality groups and brands, and the Gulf Countries residents longing for a beach weekend escape. This diverse stream of audiences is, therefore, going to have a huge impact on RAK’s global economy, especially on its real estate and hospitality sectors.
Renowned hospitality brands investing in Ras Al Khaimah
World-renowned hospitality brands such as Marriott or Accor Group are already operating several resorts and are now investing more in several projects in the pipeline. The common vision of these renowned groups and RAK’s government is to boost the Emirate’s attractiveness and to shift the offer to cater to the demand for luxury and business travelers alike, transforming Ras Al Khaimah into a coveted destination for both long and short-term stays, attracting travelers as well as permanent residents.
Real estate investment: now is the time.
As a result of the projected economic boom, the demand for residential, and especially vacation homes properties, will experience a significant rise. It will be drawn by international travelers and casino players, expats and executives relocating to the Emirate with their families. To target their needs, residential solutions like one, two, three, and even four-bedroom apartments will be in high demand.
It is, in fact, worth mentioning that branded residences, as Nobu, Nikki Beach, Aston Martin, or the Ibiza-born Ushuaïa Unexpected, are currently developing fully integrated beach projects in RAK and will play the pivotal role in hospitality and leisure segments that promise robust demand and a high quality of life while strentgthening the Emirate’s appeal for tourists.
Developers are leading the charge.
Trusted and reliable developers and hospitality groups are already operating in the Emirate, working on the construction of high-end residential and mixed-use projects. Such developers are very well-known for their extreme attention to quality, therefore ensuring that all future investments in RAK will be supported by reliable infrastructure and exclusive amenities delivered on time.
Although Marjan Island will most likely represent the beating heart of RAK’s development scenario, with the presence of the Wynn casino and other prestigious hospitality brands, overlooking the other areas around like Hayat Island and Raha Island would be a big mistake.
They are in fact strategically located to allow residents and tourists to reach Marjan Island quickly (circa 6 minutes by boat and around 10 via car), but great news is: RAK’s government has allowed the construction of a bridge which will cut down the time to reach Marjan Island by car even further. It should absolutely be taken into consideration for future investment strategy and exists.
Hayat Island is another important aspect of the development of RAK. It will be the first area to be delivered among the scheduled projects, thus offering significant competitive advantages in terms of investment. It will serve as the first point of arrival for many travelers, casino and resort executives who are coming in advance to prepare for operations and soft openings, thereby creating significant returns .
Financial projections: significant returns are to be expected.
RAK is currently emerging as a UAE real estate hub, and the investment landscape has been marked by steadily increasing property values and exceptional returns on investment.
In the past 12 months, the Emirate has seen apartment capital values rise as much as 35 per cent, yielding internal rates of return (IRR) ranging from 20 per cent to 30 per cent, based on real returns made by some of our investors in the region. The most sought-after locations for properties have been on Al Marjan Island. RAK is now a prime destination for investors looking to maximise their real estate investments and seeking superior returns in less competitive markets with untapped potential. The Emirate’s strategic developments and supportive government policies create a unique environment where growth and innovation thrive.
To better understand the exponential growth that RAK has experienced over the years, it is noteworthy to highlight the case study of RAK Properties, the partially government-owned master developer that started delivering projects in 2011, in Mina Al Arab, offering villas and townhouses directly by the sea. Investors who bought such products at that time have experienced a peak capital appreciation of 150 per cent.
Moreover, projections forecast that the Emirate will see 4 to 5 million tourists annually, increasing the demand for residences and vacation homes. Likewise, based on data projections and our in-depth market analysis, we anticipate capital appreciation estimated at between 20 per cent to 25 per cent annually over the next 3 years, considering the 2027 Wynn opening, and a subsequent expected increase between 10 per cent to 15 per cent annually thereafter. Consequently, several investment strategies remain open for investors both for long and short-to mid-term gains, as the 4% notary fees will be paid at the handover.
Azraq, closer to you.
At Azraq, we have anticipated the upcoming development and interest in Ras Al Khaimah, and therefore we already have a pool of investors capitalizing on this market. Thanks to our expertise, we can offer you bespoke investment strategies tailored to satisfy your needs.
We have access to exclusive investment opportunities from the most reliable players in the region, therefore, if you are considering investing in the UAE, Ras Al Khaimah should be in your portfolio. Relevant and worthwhile projects in Ras Al Khaimah include projects from RAK Properties, DarGlobal, H&H and the upcoming Playa Del Sol by Ellington, which is almost sold out before the launch.
We are offering a fully integrated service, starting from investment advisory, through interior fitting and property and rental management, and continuing until the exit of your investment. We are your one-stop trusted partner to manage a global portfolio of real estate investments, from finding the most relevant investment opportunity, then creating revenues and rental yield, finishing with the exit to maximize your profits and alleviate your concerns.
Beyond Dubai
This article represents the beginning of a series exploring the potential investment opportunities of the UAE and the Gulf Region, beyond Dubai.
Stay tuned for more insights from this amazing area offering unprecedented development!