Ras al-Khaimah real estate counters growing pains
21 December 2022
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.”
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Adnoc plans new offshore-to-onshore oil transport pipeline
20 August 2026
Abu Dhabi National Oil Company is moving ahead with an ambitious plan to build an oil pipeline network that will transport oil from its main offshore oil processing islands in the Gulf to its onshore crude export terminal in Jebel Dhanna, Abu Dhabi.
The planned pipeline network will source crude from Zirku Island and Das Island, where Adnoc gathers and treats oil produced at Abu Dhabi’s offshore fields, among other processing hubs, and transport those volumes across 300 kilometres inland to the Jebel Dhanna terminal.
According to sources, the proposed pipelines will eventually connect to the West-East crude pipeline network currently being built from Abu Dhabi’s Jebel Dhanna to the emirate of Fujairah, and is expected to be commissioned in 2027.
The Abu Dhabi energy giant has awarded a contract for concept studies and front-end engineering and design (feed) to Abu Dhabi-based NT Energies, a joint venture of Abu Dhabi-based contractor NMDC Energy and France’s Technip Energies, sources told MEED.
NT Energies is expected to carry out the concept studies and feed on a “fast-track basis”, with the work anticipated to take seven months, sources said.
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West-East oil pipeline
In May, Adnoc said it was accelerating work on the West-East crude transport pipeline project from Jebel Dhanna to Fujairah, upon directions from its board.
The West-East pipeline project involves constructing a cross-country pipeline to transport crude from Adnoc’s export terminal at Jebel Dhanna to the Fujairah terminal, covering a distance of about 520km.
The pipeline will double Adnoc’s crude export capacity through Fujairah on the Indian Ocean coast and enable shipments to bypass the geopolitically volatile Strait of Hormuz.
Crude will be sourced from Adnoc’s offshore processing centres at Das, Zakum and Umm Lulu islands before being stored at new storage facilities to be built at the Jebel Dhanna terminal.
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Adnoc awarded Egyptian contractor Engineering for Petroleum & Process Industries (Enppi) an engineering, procurement and construction management (EPCm) contract for the project in February 2024.
Adnoc’s total spend on EPCm works could be as high as $3bn, MEED previously reported.
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Contractors confirm Al-Maktoum airport people-mover award
20 August 2026
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A team of Japan’s Mitsubishi Corporation and Indian contractor Larsen & Toubro (L&T) has confirmed that it has won a design-and-build contract for the automated people-mover (APM) system for phase one of Al-Maktoum International airport in Dubai.
In a statement released earlier today, L&T classified the contract as large, a term the company uses to denote an order value of $261m-$523m.
MEED exclusively reported in July that Dubai Aviation Engineering Projects (DAEP) had selected a contractor to deliver the APM system as part of the first phase of the $35bn expansion of the airport.
The APM system will serve as a critical facility for operations at Al-Maktoum International. The system will run under the apron of the entire airfield and the airport’s terminals. It will consist of several tracks, taking passengers from the terminals to the concourses.
Four underground stations will be built as part of the first phase. The overall plan includes 14 stations at the airport.
The firms submitted the bids for the project in July last year, as MEED exclusively reported.
The contract is the latest in a series of awards signed by DAEP recently. It has awarded contracts valued at about AED13bn ($3.5bn), with construction works currently under way on several airport packages.
These include enabling works, the second runway and the initial structural foundations for passenger terminals and gates.
Upcoming awards
In June, DAEP said that it will award contracts worth over AED55bn ($15bn) by the end of this year for construction works at Al-Maktoum International airport.
The projects slated for contract awards include the substructure works for the western passenger terminal, the fourth aircraft concourse building and the baggage handling system, in addition to the superstructure works for the western passenger terminal and the first, second and third aircraft concourses.
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The award of the facade and roofing packages is also planned for this year.
Construction progress
In May last year, MEED exclusively reported that DAEP had awarded a AED1bn ($272m) deal to UAE firm Binladin Contracting Group to construct the second runway at the airport.
The enabling works on the terminal were awarded to Abu Dhabi-based Tristar E&C.
Construction on the project’s first phase is expected to be completed by 2032.
Construction of substructure works began in November last year, when DAEP formally selected a contractor to deliver the package.
The government approved the updated designs and timelines for its largest construction project in April 2024.
In a statement, the authorities said the plan is for all operations from Dubai International airport to be transferred to Al-Maktoum International within 10 years.
According to an official description on DAEP’s website, the expanded airport’s West Terminal will be a seven-level, 800,000 sq m facility with an annual capacity of 45 million passengers.
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Saudi Arabia awards estimated $1bn phosphate rail deal
20 August 2026
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Saudi Arabian Railways (SAR) has awarded an estimated SR4bn-plus ($1.1bn) contract to add another track to the first section of the existing phosphate transport railway network in the kingdom’s Eastern Province.
The contract was awarded to local firm Alomaier Trading & Contracting Company.
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Switzerland-based engineering firm ARX is the project consultant.
The project is the first of four packages for the phosphate railway line that SAR is expected to award imminently.
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Libya and Tunisia reschedule joint oil and gas licensing round
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The Libyan-Tunisian Joint Oil Exploration, Exploitation & Petroleum Services Company (Joint Oil) has rescheduled its planned licensing round for offshore exploration and development projects in a zone spanning the waters of both countries.
The bidding process is now due to open on 7 September 2026, with bid submissions due by 8 January 2027.
Previously, in May, Joint Oil said it planned to open the bid round on 1 August 2026.
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The second package covers development of the Zarat discovery specifically. This is a gas-condensate reservoir straddling the boundary between Tunisia’s national acreage and the jointly-held Joint Oil Block.
Joint Oil is equally owned by Tunisia’s national oil company, ETAP, and OLA Energy Holdings, a subsidiary of the Libya Africa Investment Portfolio (LAIP).
LAIP is a subsidiary of Libya’s sovereign wealth institution, the Libya Investment Authority.
Joint Oil was established under a bilateral agreement between Libya and Tunisia in 1988 to explore and develop hydrocarbons in offshore areas shared by the two countries.
The key dates from the new schedule for the licensing round are:
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- 9 September 2026: Joint Oil presents the opportunity at the MMEA Scout Group meeting in London
- 29-30 September 2026: Joint Oil presents at the World Energy Summit in London
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Texas-based Moyes & Co is acting as a strategic adviser on the licensing round.
Houston-headquartered Marathon discovered the Zarat field in 1992. It is estimated to hold around 0.4 trillion cubic feet of recoverable gas and 50 million barrels of liquids.
A previous development project concept centred on a mobile production unit, worth around $1bn, tied back to the nearby Miskar platform.
Despite this, the field has remained undeveloped for over three decades.
One of the key challenges to developing the reserve is its high carbon dioxide content.
Joint Oil has run bid rounds for the acreage before without success, including as recently as late 2023.
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UAE cuts trade and financial links with Iran
19 August 2026
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The UAE has halted all trade, commercial exchanges and financial transactions with Iran until further notice, the Ministry of Foreign Affairs said on 19 August.
The suspension has been imposed in light of escalations that undermine regional and international peace and security, the ministry said. It did not specify a timeframe for any resumption.
The ministry rejected allegations regarding the status of the economic relationship between the UAE and Iran, and restated the UAE's commitment to dialogue, cooperation and regional integration as means of advancing peace, stability and prosperity in the region.
It said the UAE remains committed to safeguarding the integrity of the financial system, in line with international law and global standards.
The suspension covers the full range of commercial and financial links between the two countries. The UAE has historically been one of Iran's most significant trading partners, with much of the relationship built on re-export trade routed through Dubai to Iranian ports across the Gulf.
The ministry statement did not detail the mechanism for enforcing the halt, the sectors affected, or arrangements for existing contracts and in-transit cargo.
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