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.”
Register for MEED's guest program now to access this article.
Exclusive from Meed
-
Contractor wins $197m Doha infrastructure works6 November 2026
-
Stakeholders aim to sign Iraq pipeline deal by year end6 November 2026
-
Taqa shortlists 17 contractors for Mirfa-Liwa scheme6 November 2026
-
Gulf conflict cuts Emirates Group profit by 66%6 November 2026
-
King Salman airport tenders roads and utilities package6 November 2026
All of this is only 1% of what MEED.com has to offer
Subscribe now and unlock all the 153,671 articles on MEED.com
- All the latest news, data, and market intelligence across MENA at your fingerprints
- First-hand updates and inside information on projects, clients and competitors that matter to you
- 20 years' archive of information, data, and news for you to access at your convenience
- Strategize to succeed and minimise risks with timely analysis of current and future market trends
Related Articles
-
Contractor wins $197m Doha infrastructure works
6 November 2026
Register for MEED’s 14-day trial access
Qatar’s Public Works Authority (Ashghal) has awarded an estimated QR722m ($197m) contract to develop roads and infrastructure north of Al-Rifaa Street in Doha.
The contract was awarded to local firm Tadmur Contracting Company.
Six other contractors submitted bids:
- Qatar Trading & Contracting Group ($244m)
- Iris Construction Tourism Industry & Trade ($259m)
- Lotus Trading & Contracting ($260m)
- Generic Engineering Technologies & Contracting ($261m)
- Alghanim International / National Industrial Contracting ($268m)
- Hamad Bin Khalid Contracting Company ($281m)
The scope of work covers the construction of more than 34 kilometres of roads, dedicated plot developments, site clearance, backfill and earthworks.
The package also requires the installation of surface and groundwater drainage systems, a foul-water drainage network and treated sewage effluent lines.
In addition, the contractor will deliver a dedicated pumping station, an emergency flood area pond, 3,735 car parking spaces, road cross-sectional elements and verge parking bays.
Secondary infrastructure works include electrical distribution, water mains, utility lines, manholes, gully pots and house connections, along with kerbing, road pavement works, landscaping, street lighting, road markings and directional signage.
https://image.digitalinsightresearch.in/uploads/NewsArticle/21204827/main.jpg -
Stakeholders aim to sign Iraq pipeline deal by year end
6 November 2026
Stakeholders expect a key contract to be signed before the end of the year for the development of a major oil export pipeline network in Iraq, according to industry sources.
Iraq and Syria’s governments, state-owned oil companies and a consortium led by Qatar’s UCC are currently discussing the terms.
If all parties agree to the proposed deal, the UCC-led coalition will become the selected developer responsible for tendering engineering, procurement and construction (EPC) contracts for the project.
The consortium includes US-based Chevron, the investment company TI Capital and France’s TotalEnergies.
The proposed plan will use a fast-track framework to bring the pipelines online as quickly as possible.
One source said: “The plan that is being discussed is highly unusual, because it is such a large-scale pipeline project and it would be brought online in a relatively short timeframe.”
A team from UCC is currently in Iraq for meetings with government officials to discuss the project, one source said.
The project will be focused on four pipeline packages:
- Basra to Najaf
- Najaf to Haditha
- Haditha to Fish Khapour
- Haditha to Banias Port in Syria
In July, Iraq’s cabinet approved state-owned Basra Oil Company signing a ​heads of agreement and a non-disclosure agreement with the UCC-led consortium to explore possible future oil pipeline projects.
Under the terms of the agreement, the consortium is preparing technical and financial feasibility studies for strategic export pipeline projects.
Also in July, US-based KBR was awarded a consultancy contract for the section of pipeline due to extend from Basra to Haditha.
In April, Iraq announced the allocation of $1.5bn for the Basra-Haditha route, while the larger scheme is estimated at around $5bn.
https://image.digitalinsightresearch.in/uploads/NewsArticle/21181262/main.jpg -
Taqa shortlists 17 contractors for Mirfa-Liwa scheme
6 November 2026
Up to 17 contractors have been invited to submit bids for a major water transmission and distribution scheme serving Mirfa, Madinat Zayed and Liwa in Abu Dhabi, a source close to the project has confirmed to MEED.
The project, originally estimated to cost $775m, comprises a water transmission system from Mirfa, alongside distribution networks serving farms and settlements in Abu Dhabi’s western region.
In October, MEED exclusively reported that a request for proposals had been issued, with bids due on 5 January 2027, following an extension from the initial deadline of 11 November 2026.
The Mirfa-Liwa scheme has been in procurement for several years and was previously tendered in December 2024 as an engineering, procurement and construction scheme, divided between transmission and distribution works.
As MEED understands, it was recently re-tendered under a design, build and operate model, extending the contractor’s responsibilities to operating the infrastructure after construction.
According to sources, the full list of contractors invited to bid for the tender includes:
- Afcons Infrastructure (India)
- Alkhorayef Water & Power Technologies (Saudi Arabia)
- China Machinery Engineering Corporation (China)
- China National Chemical Engineering (China)
- China Tiesiju Civil Engineering Group (China)
- Danway Electrical & Mechanical Engineering (UAE)
- Emarat Aloula Contracting (UAE)
- FCC Aqualia (Spain)
- Gulf Contractors Company (UAE)
- Hydropower Energy & General Construction (UAE)
- Jereh Oil & Gas Engineering Corporation (China)
- Mapa (Turkiye)
- Nesma & Partners Contracting Company (Saudi Arabia)
- Orascom Construction (Egypt)
- Power Construction Corporation of China (China)
- Tecton Engineering & Construction (UAE)
- Tristar Engineering & Construction (UAE)
According to details seen by MEED, the scope includes a pumping station at Mirfa with a capacity of 128 million imperial gallons a day, approximately 125 kilometres of transmission pipelines to Muzairah, with branches to Madinat Zayed and Liwa Summit, and storage tanks at the three locations.
The distribution network is divided into four geographic clusters covering Liwa East, Liwa West, Madinat Zayed and Seih Al-Kheir. The works include associated pipelines, pumping stations and storage facilities.
https://image.digitalinsightresearch.in/uploads/NewsArticle/21181223/main.jpg -
Gulf conflict cuts Emirates Group profit by 66%
6 November 2026
Register for MEED’s 14-day trial access
Dubai’s Emirates Group made a profit before tax of AED4.1bn ($1.1bn) in the first half of its 2026-27 financial year, 66% less than the AED12.2bn it made in the same period last year.
The six months to 30 September were the group’s first full half-year since military activity disrupted commercial air traffic across the Gulf on 28 February. Group revenue fell 12% to AED66.2bn ($18bn), from AED75.4bn a year earlier. Profit after tax fell 66% to AED3.6bn ($1bn).
Earnings before interest, tax, depreciation and amortisation (Ebitda) fell 41% to AED12.5bn ($3.4bn).
The results follow a record 2025-26 financial year. The group made a profit before tax of AED24.4bn in that year, on revenue of AED150.5bn.
“It has been a demanding six months, and once again our business model and our people stood up to the test,” said Sheikh Ahmed Bin Saeed Al-Maktoum, chairman and chief executive of Emirates Airline and Group. “Customer demand held firm and our cargo operations made a strong contribution, keeping revenue and cash levels healthy even as global jet fuel prices doubled against the same period last year.”
Airline performance
Emirates airline’s profit before tax fell 68% to AED3.7bn ($1bn), compared with AED11.4bn a year earlier. Its revenue fell 13% to AED56.9bn ($15.5bn). The airline carried 21.8 million passengers, 22% fewer than a year earlier. Capacity measured in available seat kilometres fell 17%, and the passenger seat factor dropped to 72% from 79.5%.
Cargo partly offset the drop in passenger numbers. Emirates SkyCargo carried 1.2 million tonnes, 1% less than a year earlier, but its revenue rose 52%. The conflict reduced the airfreight capacity available on the market, and disruption to shipping pushed shippers towards air transport.
Before hedging gains, fuel costs rose 60%, even though the airline uplifted 12% less fuel. Gains of AED7.1bn ($1.9bn) from fuel hedging cut the net increase in fuel costs to 13%. Fuel accounted for 34% of operating costs.
On 30 September, Emirates was operating 91% of its pre-disruption network, serving 150 airports in 78 countries and territories. On 31 March, it had been flying 58% of its passenger capacity to 122 destinations in 65 countries.
Fleet investment
The airline received nine Airbus A350s and five Boeing 777 freighters during the period. Its fleet grew to 289 aircraft, from 277 on 31 March. Emirates is continuing its cabin retrofit programme, a planned investment of more than $7bn. It refurbished 12 aircraft in the first half. In May, it broke ground on a $5.1bn engineering and maintenance, repair and overhaul (MRO) facility at Al-Maktoum International airport, which is expected to be completed in the mid-2030s.
The group’s cash position was AED54.1bn ($14.7bn) on 30 September, down from a record AED59.6bn on 31 March. The group said it had used its reserves to make pre-delivery payments for aircraft and to service existing debt. It also paid the remaining AED2bn of the AED3.5bn dividend declared for 2025-26 to its owner, the Investment Corporation of Dubai.
Ground services and travel company dnata made a profit before tax of AED410m ($112m), down 51%. Its revenue fell 7% to AED11bn ($3bn), and the group said dnata’s international businesses helped offset weaker traffic in the UAE.
The group’s workforce fell 2% to 128,237 people.
“We enter the second half of our 2026-27 financial year with measured optimism,” said Sheikh Ahmed.
https://image.digitalinsightresearch.in/uploads/NewsArticle/21198114/main.jpg -
King Salman airport tenders roads and utilities package
6 November 2026
Register for MEED’s 14-day trial access
Saudi Arabia’s King Salman International Airport Development Company (KSIADC) has tendered the Zone C1+C2 roads, bridges and utility networks package for King Salman International airport (KSIA) in Riyadh.
The tender was issued on 26 October, and bids are due by 6 December.
The request for proposals covers the procurement, construction, testing and commissioning of civil infrastructure supporting Terminal 6, alongside the existing Terminals 1-5.
The scope includes upgrades to Airport Road 539, which runs west of Terminals 1-5, and to part of Mohamed Bin Faraj Road 5333, west of Junction 6.
It also includes new roads, ramps, service roads, and signalised at-grade junctions. An additional access road will connect the Terminal 6 site offices to Road 5333.
Structures will include the Junction 6 and Terminal 6 bridges, retaining walls and reinforced-soil structures.
The contractor will also construct the central ground services equipment (GSE) bridge. Before construction begins, the contractor must validate the design, complete any outstanding elements – including mechanically stabilised earth walls, approach slabs, drainage and lighting – and secure the required authority approvals.
Dry utilities will comprise high- and extra-high-voltage containment, a 13.8kV medium-voltage network with package substations, low-voltage distribution and street lighting, and security-surveillance systems.
Wet utilities will include potable water, fire water, irrigation water, treated sewage effluent, district cooling and wastewater networks. Wastewater pipes will range from 200mm u-PVC gravity lines to 1,700mm glass-reinforced plastic mains.
The stormwater network will include channels, culverts, ponds and pipes ranging from 400mm to 1,400mm in diameter. Crossings will be constructed using open-cut excavation, horizontal directional drilling or microtunneling.
Utilities serving the operational terminals will be diverted on a design-and-build basis. Enabling works will include earthworks and the relocation of the security fence and trees. The contractor will also demolish a temporary car park, existing bridges and a sewage pumping station.
Optional works comprise two design-and-build elements that will proceed only at the client’s instruction.
The first is the south GSE bridge. The second is an approximately 1,400-metre, multi-lane access road to the Terminal 6 Transportation Hub, including bridges, underpasses, ramps and tunnels, as well as provisions for future Wadi Loop utilities and structures.
https://image.digitalinsightresearch.in/uploads/NewsArticle/21176175/main.png