meed-logo

line1 line2 line3
SIGN IN / REGISTER

Ras al-Khaimah real estate counters growing pains

21 December 2022

This article is the second in a series that captures key highlights from the RAK Real Estate Business Leaders Forum jointly held by MEED, Mashreq and Stirling Hospitality Advisors on 28 October, discussing the trends shaping the way forward for the emirate’s real estate sector. Participants at the closed-door event included stakeholders such as Marjan, Al-Hamra Group, RAK Properties and Abu Dhabi National Hotels (ADNH)

 


Even as global business conditions deteriorate due to rising benchmark interest rates and inflationary pressures, the UAE’s northernmost emirate is on its way to boasting one of the most active construction pipelines in the GCC.

Led by a strong roster of high-profile multibillion-dollar announcements by firms such as US-based Wynn Resorts, Aldar Properties, Abu Dhabi National Hotels, Dubai Investments and Emaar, it is fast emerging as one of the most exciting project destinations in the region.

But the prospect of significant development on the horizon also brings challenges of equal proportion.

As project activity intensifies, Ras al-Khaimah needs to simultaneously accelerate the scale of investment in adjacent infrastructure and facilities that can draw talent to accommodate the scale of work ahead and create an attractive living environment for its growing population.

“In the next two years, we will see a lot of cranes coming over the skyline of Ras al-Khaimah,” said Abdulla al-Abdouli, CEO of Marjan.

“Given the robust project pipeline – more than 5,000 hotel keys and more than 4,000 residential units – a slew of new requirements will come into play, beginning with the construction industry.”

“First and foremost, the demand for quality contractors and subcontractors, architectural consultants, designers, and landscape architects will undoubtedly increase,” he said.

In the next two years, we will see a lot of cranes over Ras al-Khaimah's skyline

Abdulla al-Abdouli, CEO of Marjan

Al-Abdouli said Ras al-Khaimah could incentivise construction companies to establish a base in the emirate by providing their employees with superior facilities and a quality lifestyle.

“We require more staff accommodations, not only to house workers during the construction period, but also to serve employees for all the job opportunities that will arise once the developments are completed. Coming up with good amenities for people is a must, and we need more businesses to support the supply chain.”

With such massive growth on the horizon and Ras al-Khaimah’s plans to target three million visitors by 2025, Al-Abdouli said that the emirate’s government is currently conducting a gap analysis for the destination.

“Infrastructure is our top priority to ensure that by 2026 when we open the Wynn resort, we do not have any disparities in the market,” he said. “It is about ensuring optimum quality of life through well-equipped facilities like airports, roads, networks, logistics and so on. The ultimate goal is for people to be content living in Ras al-Khaimah.”

The demand for infrastructure, retail and commercial offerings is expected to skyrocket by thousands of square metres in the next few years as Ras al-Khaimah evolves beyond its current primary waterfront tourist destination status.

Sameh al-Muhtadi, CEO of RAK Properties, said tapping into the opportunities surrounding the emirate’s real estate boom needs longer-term thinking – and fast.

“There’s a lot of support sectors that are going to be very much in demand,” he said.

“What will be needed in healthcare and education? The reality is that the whole emirate is transforming, and so with the white-collar jobs coming into play, with families moving here, with consultants moving here, we must think well in advance and prepare for that. We need to take the necessary actions and make the necessary decisions now, so we don’t miss the boat.”

One contractor attending the Business Leaders Forum added that despite the strong pipeline ahead, the size of the Ras al-Khaimah market remains “relatively small”, making it difficult to appeal to or attract large international or regional facility management and technology partners.

Marjan’s Al-Abdouli said regulators are firmly committed to finding solutions to market challenges.

The reality is that the whole emirate is transforming, and so with the white-collar jobs coming into play, with families moving here, with consultants moving here, we must think well in advance and prepare for that

Sameh al-Muhtadi, CEO of RAK Properties

Macroeconomic headwinds

Even with the undeniable positive sentiment in Ras al-Khaimah’s future direction, evolving macroeconomic challenges worldwide remain a concern.

Economic activity in the region has been resilient so far, with a multispeed recovery continuing in 2022. The Washington-based IMF projects Middle East GDP growth at 5 per cent in 2022, up from 4.1 per cent in 2021.

But growth is forecast to slow to 3.6 per cent in 2023 on deteriorating global conditions thanks to rising interest rates, high inflation and increased energy costs.

According to the IMF, inflation for the region was projected at 14.2 per cent in 2022 and is expected to remain elevated next year.

Gulf oil exporters are expected, on average, to enjoy budget surpluses of about 33 per cent between 2022 and 2026, leading to a strong improvement in their balance sheets.

The UAE hopes the economy will grow by 5 to 6 per cent this year, and by the same pace over the next few years to double its economy by 2031.

“I think the challenge we all have today is around planning and forecasting due to the current volatility and uncertainties around the world,” said Khalid Anib, CEO of Abu Dhabi National Hotels.

“It is something that is extremely difficult to deal with. But we must keep trying.”

https://image.digitalinsightresearch.in/uploads/NewsArticle/10450267/main.gif
Mehak Srivastava

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Dubai seeks consultants to develop drainage strategy

    18 March 2026

    Dubai Municipality has issued a request for qualifications (RFQ) for a study to develop a sustainable urban drainage systems (Suds) strategy across the emirate.

    The bid submission deadline is 9 April.

    The tender, issued through the Sewerage and Recycled Water Projects Department, covers the development of a strategy and conceptual implementation plan for Suds in Dubai.

    It follows a separate RFQ issued by the municipality in March for consultancy services to study the emirate’s sewage treatment strategy.

    The Suds project, designated TF-23-D1, aims to support the emirate’s flood protection and drainage infrastructure by promoting a more sustainable approach to stormwater management.

    The scope of work includes a review of international best practices in Suds and their applicability to Dubai. It also involves undertaking a Suds opportunity study and carrying out catchment-scale modelling and financial evaluation for a pilot study area.

    Consultants will be required to develop Suds design guidelines, specifications and standard drawings. The project also includes establishing a strategy, policy, legal and regulatory framework to support a Suds implementation roadmap.

    Dubai Municipality said the initiative represents “a significant step towards a more resilient, sustainable and forward-looking stormwater management approach for Dubai.”

    The study forms part of a broader review of Dubai’s water and wastewater infrastructure. Earlier this month, the municipality issued a separate consultancy tender (P115-D1) to assess the emirate’s sewage treatment and recycled water distribution strategy. 

    The study will focus on infrastructure requirements to support future population growth. 

    This includes identifying locations for potential future facilities such as treatment plants and pumping stations.

    The bid submission deadline is 23 March.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16027434/main.jpg
    Mark Dowdall
  • Oman awards power purchase agreements

    18 March 2026

    Oman’s Nama Power & Water Procurement Company (PWP) has issued letters of award (LoA) for new power purchase agreements (PPAs) to three independent power producers (IPPs), according to regulatory filings.

    The new PPAs will extend the operating life of existing gas-fired power plants beyond the expiry of their current contracts.

    The projects have a combined capacity of about 3,500MW.

    The agreements have been awarded to Phoenix Power Company, Al-Batinah Power Company and Al-Suwadi Power Company.

    Phoenix Power Company operates the 2,000MW Sur IPP.  It is owned by a consortium of international and regional investors, including Japan’s Marubeni Corporation and Chubu Electric Power, Qatar’s Nebras Power, Qatar Electricity & Water Company and Multitech of Oman’s Bahwan Engineering Company.

    Al-Batinah Power Company and Al-Suwadi Power Company operate the 750MW Sohar 2 IPP and the 750MW Barka 3 IPP, respectively.

    According to regional projects tracker MEED Projects, Nama PWP signed the original PPA for the Barka 3 project in 2010 with a consortium led by Gaz de France (GDF) Suez under a special purpose vehicle (SPC) called Al-Suwadi Power Company.

    The shareholders comprised GDF Suez (46%), Bahwan Engineering Company (22%), Shikoku Electric Power Corporation (11%), Sojitz Corporation (11%)  and the Public Authority for Social Insurance (10%).

    In 2015, GDF Suez was rebranded as Engie following a strategic shift towards low-carbon energy and utilities.

    All three companies said the new PPAs will run for 15 years under agreed commercial terms. Acceptance of the LOAs has been requested by 18 March 2026.

    The new agreements for Sohar 2 and Barka 3 will take effect on 1 April 2028 and run until 31 March 2043. The agreement for the Sur IPP will commence on 1 April 2029 and run until 31 March 2044.

    The awards form part of Nama PWP’s 2028-29 procurement programme. The programme aims to secure firm generation capacity from existing assets whose current PPAs are due to expire during that period.

    In Oman, IPP projects are developed under a build-own-operate model. This allows plant operators to continue running assets beyond the initial PPA term, either through contract extensions or by selling power into a future electricity market.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16027001/main.jpg
    Mark Dowdall
  • DP World awards Jafza warehouse construction deal

    18 March 2026

    Dubai-based ports operator DP World has awarded a contract to build a multi-tenant warehouse development at Jebel Ali Freezone in Dubai, UAE.

    The contract was awarded to local firm Group Amana.

    The development spans 141,916 square metres (sq m) and comprises 187 units across seven blocks.

    These comprise warehouses, light industrial units, a retail shop, a mosque and other associated infrastructure.

    The new contract builds on their existing partnership to deliver the logistics park at Jeddah Islamic Port in Saudi Arabia.

    In February last year, MEED exclusively reported that Dubai’s DP World and the Saudi Ports Authority (Mawani) had awarded a SR347m ($92m) design-and-build contract to Group Amana for the project.

    The scope of the contract covers construction work on the buildings under package two of the project’s first phase.

    Earlier this week, MEED reported that DP World has kept its 2026 capital expenditure budget at nearly $3bn, focusing on two domestic assets and four overseas projects.

    The company said in a statement that the priority developments include Jebel Ali and Drydocks World in Dubai.

    Earlier this month, the group announced record financial results for 2025, with revenue up 22% to $24.4bn and adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) up 18% to $6.4bn, delivering a 26.3% margin.

    DP World said this performance was driven by strong momentum across its ports and terminals and logistics business.

    The group’s gross throughput rose 5.8% to 93.4 million 20-foot equivalent units.

    Profit for the year increased 32.2% to $1.96bn, and operating cash flow grew 14% to $6.3bn.

    Return on capital employed increased to 9.9% in 2025, up from 8.9% in 2024, reflecting stronger earnings despite ongoing geopolitical and trade uncertainty.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16026660/main.png
    Yasir Iqbal
  • Egyptian firm starts building Sal’s Riyadh logistics centre

    18 March 2026

    Egyptian contractor Rowad Modern Engineering, a subsidiary of the Elsewedy Electric Group, has begun construction on the expansion of Saudi Logistics Services Company (Sal) facilities at King Khalid International airport in Riyadh.

    The scope of work includes the rehabilitation and upgrade of existing infrastructure, as well as the construction of new supporting facilities and services.

    Sal started the tendering process for its SR4.2bn ($1bn) logistics zone in the north of Riyadh in September last year, as MEED reported.

    UAE-based Global Engineering Consultants is the project consultant.

    The logistics hub aims to meet the demand for customised warehouses located near King Khalid International airport and the Riyadh Metro.

    The project is in line with Vision 2030 and the National Transport & Logistics Strategy, which aims to support the kingdom’s logistics sector and enhance Saudi Arabia’s position as a global logistics hub.

    Sal and Sela signed an agreement to develop the project in March last year.

    This was followed by another lease agreement for the project, which will span about 1.57 million square metres. 

    According to an official statement: “The lease will extend for 30 years, which is further extendable to an additional 15 years upon agreement of both parties.”

    GlobalData expects the kingdom’s construction industry to record an annual average growth rate of 5.2% in 2025-28, supported by investments in transport, electricity, housing and tourism infrastructure projects, as well as the $850bn-plus gigaprojects programme.

    Growth will also be supported by government investments in rail, dams, industrial and road infrastructure projects. 

    The industrial sector is estimated to grow by 3.3% in 2025-28, supported by investments in the development of manufacturing, logistics, chemicals and pharmaceuticals plants.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16026154/main.gif
    Yasir Iqbal
  • Jabal Omar plans next phase of its Mecca development

    18 March 2026

    Saudi Arabian developer Jabal Omar Development Company is carrying out planning for phase seven of its Jabal Omar master development in Mecca, according to a fourth-quarter 2025 financial presentation.

    The company said phase seven will be a mixed-use scheme comprising hotels, retail and residential components, but did not disclose a breakdown of the project elements.

    Jabal Omar plans to use a development partnership model for the phase to minimise capital expenditure.

    Separately, the developer said it is targeting the delivery of 1,346 hotel keys and more than 20,000 square metres of gross leasing area in phase four by 2027.

    Rotana Jabal Omar Makkah, comprising 655 keys, is due to be fully operational in the first quarter of 2026, after 450 keys began operating in the final week of December 2025.

    The 1,141-key Sofitel is scheduled to become operational in the fourth quarter of 2026, while the 20,000 square metres of gross leasable area is expected to be ready in 2027.

    Jabal Omar estimates its 2026 capital expenditure at SR1.1bn ($293m), with spending expected to fall once the phase four hotels are completed.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16026145/main.png
    Yasir Iqbal