Construction RAK Properties sets vision for Ras Al Khaimah development By Eva Levesque January 22, 2025, 3:54 PM RAK Properties RAK Properties CEO Sameh Muhtadi said its projects would include villas, branded residences and hotel resorts One project a month 40,00 new homes Hospitality projects RAK Properties is planning to launch one project a month for the next year, as Ras Al Khaimah aims to build 40,000 new homes in order to cater to demand, CEO Sameh Muhtadi told AGBI. “Our target of launches is about AED5 billion in 2025,” Muhtadi said. He added that most projects would be located in the 4 million square metre Mina region, the emirate’s premier island lifestyle destination. The Abu Dhabi-listed developer was also granted land by the government at Marjan Beach District and is planning to launch another project in Dubai South. These projects will be funded through RAK Properties’ own liquidity or through an AED2 billion credit line that the company signed last year with the Commercial Bank of Dubai, Muhtadi said. “Fortunately we’ve been very successful with our sales, and at the moment we haven’t had to go for extra debts,” Muhtadi said, adding that the company’s leverage ratio is close to 18 percent and that he expects to announce a double-digit growth for 2024. Property prices grew 20 percent to 25 percent over the first eight months of 2024 and are expected to increase by 8 percent in 2025. For branded residences, prices ranged between AED1200 to 1300 per sq ft. “Now we’re talking close to double that number,” Muhtadi said. Ras Al Khaimah tourism revenue up 12% in 2024 RAK Properties revenue up 30% on new project launches RAK Properties considering hospitality IPO RAK Properties’ Mina project is set to have 18km of waterfront and will be composed of three districts – Raha Island, Hayat Island and Lagoons, comprising a mix of villas, branded residences and hospitality projects. Muhtadi added that the development will house close to 40,000 people at maturity. “This is our land bank, this is our future,” he said. Besides residences and retail, RAK Properties plans to develop six hotels, of which two already operate. To complete Hayat Island, the developer said it will launch two more projects within the next couple of months: the Anantara Residences and Hive. On Raha Island, which is for now “a white sheet of paper,” RAK Properties is going to launch a 339-unit residential project named Mirasol. Like many other UAE developers, the company wants to sustain its growth by targeting high net worth individuals. It is forming partnerships with international brands for “super luxury designs”, beach clubs and resorts, and it is establishing a concierge service as a new source of revenue. “The construction of Niki Beach will start in a few months,” Muhtadi said, “but we have much more to come.” Raha Island is set to have a 200-berth marina, with “super-yachts included.” “We hope to attract Qatari, Bahrain and Dubai yachting to Ras Al Khaimah,” Muhtadi said. A growing economy Ras Al Khaimah, one of the seven emirates that make up the UAE, is projected to grow its economy by an average 4.2 percent annually until 2027, driven by strong tourism, real estate, manufacturing and mining performances, according to S&P Global. The hospitality sector contributed 4 percent of GDP; real estate accounted for 7 percent in 2024. These proportions are likely to increase with new projects ramping up. Its population is expected to increase by 55 percent from 400,000 to over 600,000, according to a report from consultant Stirling Hospitality Advisors.