Opportunity knocks in Ras Al Khaimah’s beaches and mountains

Alamy via Reuters

Ras Al Khaimah, traditionally viewed as a serene retreat, is facing an unexpected consequence of its surging popularity. The UAE’s fourth-largest emirate is now at the centre of a fierce scramble for beachfront plots. 

Sameh Muhtadi, CEO of RAK Properties, which is Ras Al Khaimah’s largest publicly listed property developer and is developing much of the emirate, says land reclamation is becoming “more attractive” due to the intense demand.

The land rush has been fueled by developers eager to capitalise on the expected influx of visitors when the $4 billion Wynn Al Marjan Island Resort opens in 2027.

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Prices are rising at such a rate that now is the time to start reclaiming land, Muhtadi says. 

“When land prices go up, that becomes a more and more attractive option because you always balance the cost of reclamation against buying land,” Muhtadi tells AGBI. 

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The trajectory of RAK is reminiscent of Dubai’s real estate frenzy after its own land reclamation efforts and the creation of manmade projects such as Palm Jumeirah and the World Islands. RAK is following this blueprint with the development of Al Marjan Island.

Muhtadi says that the push for reclamation in RAK includes plans for new areas adjacent to existing developments such as Mina Al Arab and the beach district of Marjan. 

“We’ve added significantly to our land bank through the government increasing their share in RAK Properties,” he says.

Supplied/RAK Properties

Last July the government increased its stake in RAK Properties to 34 percent, indicating the importance to the economy of projects such as Mina Al Arab, Hayat Island and Raha Island.

“We’re looking at some limited reclamation ourselves in Mina Al Arab,” Muhtadi says. 

“There are opportunities that we’d like to explore. There are some narrow strips that we’re looking at widening. There are some bays that perhaps if we do some limited reclamation, it would be fantastic [to] add more beachfront property.”

Beyond beaches

Looking beyond beachfront developments, the RAK masterplan – updated over the past two years – also includes proposals to develop its untapped mountainous regions.

“The challenge with the mountains is actually providing the infrastructure – water, power, roads. But that is in the masterplanning stage right now as we speak,” Muhtadi says. 

However, he expects beachfront property, and Mina Al Arab in particular, to dominate the market over the next five years.

“That’s where the bulk of the new exciting projects are,” Muhtadi says. “But there are beachfront areas in Ras Al Khaimah that are untapped. Nobody’s talking about them now.

“There’s lots of [other] beachfronts [in the north], so there’s a lot that can be done and is in the planning stage.”

The government aims to invest heavily in infrastructure to support this growth, particularly in the aviation sector, Muhtadi says.

“There’s going to be a lot of private jets that are coming to Ras Al Khaimah. There are helicopter trips that are being planned.”

Last year RAK invested AED2 billion ($500 million) in its road network, with further enhancements to roads and power infrastructure underway.

RAK is projecting GDP to grow by 80 percent by 2030. 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.

Attracting global investors

The Wynn casino has already heated RAK’s real estate market, which Muhtadi describes as still “undervalued.” 

Prices for one bedroom apartments now rival those in Downtown Dubai and property prices in some areas rose by more than 18 percent last year, according to property portal Bayut. 

Muhtadi said the market continues to draw substantial interest from Russian investors, who accounted for nearly 17 percent of RAK Properties’ customer base in 2023.

There has also been attention from the Levant region including Jordan, Lebanon and Palestine, along with interest from Germany, France, the UK and other Western European countries.

“The non-dom situation in the UK has been extremely beneficial to the UAE,” Muhtadi says. “Having a tax-free haven where there’s potential for growth in investments, where there is economic growth, it doesn’t get better than this.”

RAK Properties

To meet this demand, RAK Properties plans to launch six new real estate projects before the end of this year.

“Our leasing rate is nearly 99 percent, suggesting strong demand,” he says.

The company is also exploring development opportunities for its land bank outside RAK, including potential ventures in Dubai and Abu Dhabi.

Further options exist in Egypt’s Ras Al Hekma north coast development, and the company is considering a separate stock market listing for its hospitality division.

But the immediate focus remains on RAK, Muhtadi says.

“People invest for one of two reasons,” he says. “Either good yields on rent or potential capital appreciation – what we are offering in Ras Al Khaimah is both.”