Lifestyle Development

Ras Al Khaimah is positioning itself as an international hub for lifestyle projects. Several luxury resorts and mixed-use developments have already been launched or are being planned in the emirate, and RAK will also be the home of the one-of-a-kind International Hospitality Trade and Training Zone (ihottz), a AED 10 billion tourism and hospitality project that RAK’s Investment and Development Office is building on 350 acres of prime real estate.

Tourism and hospitality are the major components of RAK’s future growth

The ihottz project is designed to address the needs of every segment of the international hospitality and tourism industry, and reflects Crown Prince Sheikh Saud’s drive to make RAK a global leader in innovative lifestyle projects and to promote the emirate’s economic diversification. To further stimulate such investment initiatives, RAK issued a decree in 2005 to allow foreigners to own freehold property in selected developments.

Dynamic economy not dependent on oil sector

Overall, the government expects to attract some USD 13.6 billion in foreign investments by 2009, much of this in the burgeoning tourism and hospitality sectors. RAK, one of the region’s countries without vast petroleum resources, is proving that – through innovative strategies and a drive to succeed – it can foster a thriving economy without the need to rely on the oil sector

RAK is taking a long-term approach to the tourism and hospitality sectors. As Sheikh Saud explains, “Our primary focus is to improve the income of the emirate, and all our projects and plans are designed to achieve this goal. We know the emirate needs to look into the areas which hold out real potential for growth in the future. Choosing the tourism and hospitality sectors as the major components of Ras Al Khaimah’s future growth, we intend to identify different areas of industries where investments would make proper sense. We have already established a very liberal environment for businesses to thrive in the emirate. We will take all steps needed to improve the whole gamut of infrastructure in the country, including improvements in the road network and increasing the capacity of sea ports and airports. We have prepared a master plan to develop the hospitality industry.”

Innovative financing options

Along with developing innovative projects, RAK is creating innovative financing options that represent outstanding investment opportunities. The government recently announced that it plans to sell around USD 400 million in Islamic bonds (sukuks) by July this year to help finance the construction of the Al Marjan development, a group of man-made islands off its coast that will eventually be the home of several five-star resort hotels, luxury residential units ranging from condominiums to private villas, a marina, a water theme park and much more. The emirate is in talks with Credit Suisse to arrange the sukuks, which are expected to tap strong regional and international demand for Islamic bonds. The sukuk market is expected to grow by 30 percent this year alone to reach around USD 22 billion worldwide by the end of 2007.

Key projects offering outstanding investment potential

A number of mega-projects developed by local, regional and international investors have already been launched in RAK and many more are planned for the future. These projects, which include residential, commercial, tourism, hospitality, office space and business services components, demonstrate the potential of lifestyle projects in the emirate.

Key projects include the Mina Al Arab development, a USD 18.25 million initiative that will include hotels, 25,000 residential units, shops and a theme park. RAK Properties, developer of Mina Al Arab, is also developing Julfar Towers, a residential and commercial complex in the heart of RAK, as well as Mangrove Islands, a low-rise residential and commercial project complete with a golf club, 2,000 luxury villas, schools and shopping malls.

The Al Hamra Village project, launched by Al Hamra Real Estate Development, contains 1,800 residential units, luxury hotels (including an ultra-luxurious seven-star hotel), a marina, an 18-hole championship golf course and a first-class retail district. Another luxury residential development, La Hoya Bay Residence, the first phase in a USD 800 million project, includes 725 freehold apartments on Marjan Island and is expected to be completed by the end of this year.

The AED 1 billion Airport Towers project launched by development and investment enterprise Ta’sees is located in the Airport Free Zone near RAK’s international airport, and will eventually include 10 commercial towers, eight residential towers, a luxury hotel, cargo-handling facilities and more. Illustrating the fact that regional investors have been quick to spot RAK’s investment potential, Saad Al Moosa, president of Ta’sees, says, “Ras Al Khaimah is rapidly coming into its own as an investment destination with a mushrooming hospitality sector. The emirate is undergoing rapidly accelerated development, and we hope to see it catch up and overtake other, more established, tourism destinations in the UAE.”

Showcasing the beauty of mountains and beaches

The Jebel Jais Mountain Resort will showcase the beauty of RAK’s mountains, a unique attraction in this desert region. The resort will include a landmark five-star hotel and conference center, a cable car linking the mountains to the beachfront, luxurious residential units from apartments to palatial private villas, and a wealth of sports facilities ranging from a ski slope to centers for climbing and abseiling, paragliding and falconry.

The Port Arabia Project is another major leisure development, set on a pristine stretch of beachfront. It will include several luxury resort hotels, Arabian Adventures Theme Park, a wide range of sports facilities, a thalasso therapy center, boutiques, a marina, a dock to handle cruise-ship traffic and private yachts, and a conservation area. Within the conservation area will be an eco-friendly hotel where guests can view turtles and flamingos and swim with dolphins. A heritage village within the Port Arabia development will showcase RAK’s traditional culture.

These exceptional projects are only a sampling of those being planned in fast-growing RAK. All are designed to appeal to local, regional and international investors in the tourism and hospitality industries who are looking for high-potential projects, as well as to high-net-worth individuals seeking luxury residences and investments in one of the world’s most promising property markets.

RAK Properties

“We are helping to bring Sheikh Saud’s vision to reality.”

RAK Properties, the emirate’s top real estate firm, was created with the support of the government to stimulate the development of residential, business and commercial properties as well as tourism and leisure facilities in Ras Al Khaimah.

As Mohammed Al Qadi, Managing Director, explains, “We are helping to bring Sheikh Saud’s vision to reality and we will never let him down.” He adds that he sees the company’s role as a catalyst for the development of a thriving property sector in Ras Al Khaimah and a key driver for the country’s overall development.

Outstandingly successful IPO in 2005

The company’s highly successful initial public offering in April 2005 demonstrated the fact that RAK Properties has developed a feasible game plan and that its past performance has inspired investor confidence: the 55 percent share in the company offered in the IPO was oversubscribed by 57 times. RAK Properties now has some USD 550 million in investment capital under management.

Building the foundations for future development

RAK Properties launched two major developments last year, the USD 3 billion Mina Al Arab luxury resort and residential project on the waterfront and the USD 135 million Julfar Towers residential, office and commercial project. “RAK Properties now has the ideal setting to build on its excellent start and take real estate investment in Ras Al Khaimah to new highs,” Al Qadi says.

Mina Al Arab

Mina Al Arab, “The most luxurious project in Ras Al Khaimah,” according to Al Qadi, features a variety of residential properties as well as recreational facilities, themed resorts, shops and more. Residential properties include villas, townhouses and apartments, all offering scenic views of either lagoons or the sea. Lively waterfront neighborhoods with shops, restaurants and cafes surround the apartments, while the villas and townhouses offer easy access to private beaches, tennis courts, swimming pools and other recreational facilities. The development’s planners aim for “every day to be a vacation” in Mina Al Arab.

Mina Al Arab also includes an array of themed resorts, all with stunning views over pristine white sand beaches and featuring restaurants, cafes and entertainment options. Two eco-resorts, one devoted to the wetlands and the other to the coastal dune environment, have also been created.

Julfar Towers: dynamic urban living

The Julfar Towers project, in an historic city whose written records date back to 649 AD, is located just two miles north of Ras Al Khaimah City. The 349 residential apartments within the 43-story Julfar Towers are filled with light and offer luxurious amenities as well as easy access to the development’s office facilities. A retail cluster on the plaza level of the tower includes shops, children’s play areas, fountains and gardens and covered pedestrian walkways.

Office space in Julfar Towers give businesses the advantages of the RAK Free Trade Zone, including 100 percent foreign ownership, 100 percent income and corporate tax exemption, and 100 percent profit and capital repatriation. The office tower is equipped with the latest telecommunications infrastructure, including high-speed Internet access and wireless communications.

International investors welcome

RAK Properties will launch several new projects, both national and international, in 2007 and the company welcomes foreign investors to participate in these very promising endeavors. “The potential for real estate in the UAE looks tremendous and the global investor community has expressed strong confidence, especially in Ras Al Khaimah’s credentials and prospective,” Al Qadi points out. This dynamic company will continue to play a major role in Ras Al Khaimah’s economic development.

Al Hamad Contracting Company

“Ras al Khaimah is a great place for investment.”

Al Hamad Contracting Company, headquartered in Sharjah, is one of the top construction companies in the UAE. Founded in 1985, it continues to prove its capability to bring in the largest projects on time and on budget. Currently the firm is operating across the UAE, Bahrain and Jordan, with a total project value for 2007 of AED four billion.

Al Hamad Contracting offers a uniquely attractive mix of expertise and resources. It has an employee base of around 15,000, utilizing the latest technologies and building materials. Its subsidiary businesses, also part of the Al Hamad Contracting group, are another great source of strength.

Expertise in all areas

Concrete Technology – known as Concrete Tech – is a pre-cast concrete specialist. Supplying all sectors of the construction industry, its pre-cast concrete wall panels, floor slabs, beams and columns are assembled off-site to the highest quality control standards, and can help to shorten build time onsite. Concrete Tech’s site in Ras al Khaimah is the largest pre-cast factory in the Middle East, and is about to expand by another million square-feet.

Based in Sharjah, the Abr Al Mutawasi Building Materials Trading Co. supplies wood, furniture components, electrical cables, sanitary ware, air conditioning units and hardware. Its three divisions – aluminum, marble, and carpentry and joinery – can provide tailor-made products to suit every type of client requirement.

Landmark projects

Al Hamad Contracting has always been involved in landmark projects. In Jordan, it is building the Jordan Gate and the Royal Village. In Bahrain, it is working on the Pearl Tower and the huge Bahrain Financial Harbor. In Ras al Khaimah, the firm’s headquarters and the site of its aluminum extrusion factory, the project portfolio is equally impressive.

According to Chairman Nashat F. Sahawneh, the firm is building the 44-story Julfar Twin Towers in Ras Al Khaimah city center in partnership with RAK Properties. Another major project within the emirate will be a large site for hospitals and educational institutes.

“We have a very strong relationship with the royal family in Ras al Khaimah and are building several projects for them,” says Sahawneh. “We have the knowledge and experience to build these kind of structures. With our high-tech knowledge of pre-cast construction, we are the favored company to work on projects like these.”

Ras Al Khaimah a growth market

Sahawneh praises the speed at which projects can be approved in Ras Al Khaimah. With just a month between submitting a proposal and approval granted to begin the construction process, there is nowhere else in the world where things can move that fast, he says.

“The entrepreneurial spirit of His Highness Sheikh Saud is a wonderful influence on the growth of Ras Al Khaimah,” explains Sahawneh. “Ras Al Khaimah is a great place for investment and for establishing a business in this growing economy.”

New alternative energy partners sought

Al Hamad Contracting is now moving into the alternative energy market. Sahawneh would be interested in working with American investors with knowledge of wind, water or solar power, and Al Hamad Contracting would be able to build these projects.

“Too much energy is used to cool our buildings in this part of the world, so we would like to reduce that and create buildings with better insulation materials,” says Sahawneh. “We want to research new methods to save energy, and to produce energy in a clean way.” He adds that solar power would be a natural fit for the UAE with its year-round sunshine.

Ras Al Khaimah Investment Authority

“We provide a full package.”

The Ras Al Khaimah Investment Authority (RAKIA), an autonomous semi-governmental agency set up by Crown Prince Sheikh Saud bin Saqr Al Qasimi in 2005 to promote investments in Ras Al Khaimah and abroad, plays a major role in strengthening the emirate’s economic base. RAKIA’s brief is to propose investment policies, supervise their implementation, assess economic feasibility studies, and promote projects and investment opportunities in various sectors.

RAKIA has helped make Ras Al Khaimah more investor-friendly through streamlining the investment process and serving as a one-stop shop for foreign investors. As part of its efforts to promote investment, RAKIA established Ras Al Khaimah’s first two free zones, which filled up within 18 months of their launch. RAKIA then established Al Ghayl Industrial City and is now planning to establish and run Ras Al Khaimah’s fourth free zone.

RAKIA’s vision is to make richer returns a reality for all investors in Ras Al Khaimah. As Dr. Khater Massaad, RAKIA’s CEO, explains, “RAKIA provides all possible assistance to investors. RAKIA stands for accessibility, easy operational procedures, improved quality, a single window for all clearances, and openness toward new business opportunities.”

RAKIA’s well equipped free zones are the ideal base for investors in Ras Al Khaimah. “RAKIA provides investors with administrative, marketing, technical, and operational services, including fiscal advice, logistics support and human-resources assistance. We also identify potential investors and markets for your products and formulate business plans. We provide a full package,” Dr. Massaad says.

Ras Al Khaimah offers both a “natural” advantage and a “leveraged” advantage to investors, according to Dr. Massaad. He explains, “Our natural advantage is our central location in the Middle East on key transport routes. Our leveraged advantage is that our global transport and logistics services provide the lowest freight costs to Europe, Asia, Africa and the Americas.”

Dr. Massaad is one of Ras Al Khaimah’s most successful business leaders. He founded RAK Ceramics, which has grown to become the world’s top ceramics producer, and is CEO of Rakeen, which has launched key tourism developments in Ras Al Khaimah and has other major projects under way. RAK Ceramics and Rakeen reflect the potential of Ras Al Khaimah to support dynamic, innovative companies that can succeed in the global marketplace.

RAK Petroleum

“A strong platform for future growth.”

Ras Al Khaimah Petroleum (RAK Petroleum) has positioned itself as a major regional oil and gas player through strategic acquisitions, including the company’s recent major acquisitions of Gulf Keystone and Indago Petroleum. As Abdul Aziz Al Ghurair, Chairman of RAK Petroleum, commented when the Gulf Keystone deal was announced, “We are delighted to have reached agreement on the acquisition of Gulf Keystone. When combined with our recently completed acquisition of Indago Petroleum’s assets, we believe this creates a strong platform for future growth within the strategic focus areas of RAK Petroleum, especially in the gas-rich provinces of the Middle East and North Africa.”

Philip Turberville, CEO, a native of Scotland, explains that RAK Petroleum’s core activities are the commercialization and development of gas resources, and that the company is building on its strong financial base to acquire companies that can provide “networks, human resources and local knowledge and presence.”

RAK Petroleum is a “lean and mean” company compared to the multinationals and big national oil companies also operating in the Middle East. It enjoys a strong financial base, an excellent political base, and the competitive advantage of a location in the heart of the Middle East. As Turberville points out, “Money is available almost everywhere in the world but what is not always available is a strategic geographic or political position. The geopolitical position of RAK Petroleum is as good as it gets.”

Future plans for this dynamic company include the possibility of an IPO sometime in late 2008, with a listing on the Dubai International Financial Exchange and possibly a joint listing in London. First, however, the company will focus on the performance of its significant new acquisitions and to continue its commitment to transparency and world-class standards.
The future looks bright for RAK Petroleum. Ras Al Khaimah’s oil and gas sector generated some AED 358 million in 2005 for 14 percent growth over 2004, and even though other sectors are expected to become increasingly more important to the country’s GDP, the oil and gas sector will continue to expand, especially since Ras Al Khaimah is one of the least-explored of the United Arab Emirates.

Consulting Engineering Group

“We welcome the opportunity to partner with an American firm.”

Consulting Engineering Group (CEG), established in 1976, was Ras Al Khaimah’s first engineering company and has served as a catalyst for the country’s continuing development. CEG achieved revenues of USD 6 million in 2006 and anticipates 30 percent growth this year.

Chairman and CEO Adnan Yousef Abdullah, who has led the company for the past 14 years, received his graduate training in the United States and welcomes contacts with potential American partners. The company has already had many successful joint ventures with foreign companies, and as Abdullah puts it, “We have always supported the Crown Prince in his program of opening Ras Al Khaimah to the world.”

CEG has positioned itself as the ideal partner for foreign companies. It has a well developed network of offices throughout the United Arab Emirates as well as in-depth experience in the local market, a history of successful on-time performance, and a commitment to maintaining international standards.

The company has a staff of more than 40 highly trained engineers and is known as a “total solutions provider” with expertise in many fields, including architectural design, interior design, landscaping, property construction, roads construction, electro-mechanical services, urban planning and more.

Current projects for the company include Al Hamra Village, projects for RAK Ceramics and RAK Properties, and initiatives to construct new schools and housing developments. “This year alone we have completed almost 200 villas in addition to all our other projects,” Abdullah says, adding that the company also has a project in Egypt.

As for the future, CEG has ambitious growth plans in Ras Al Khaimah and beyond. Abdullah says, “We have developed the capability of taking on more and more projects, in response to Ras Al Khaimah’s construction boom. We welcome opportunities to partner with an American firm that is aggressive and looking for a challenge.”