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
  • Qatar’s new $8bn investment spices up global LNG race

    13 March 2026

     

    In the midst of the conflict between Iran and the US and Israel, which has spilled over into the GCC region, QatarEnergy has temporarily halted production of liquefied natural gas (LNG) in the country and declared force majeure on LNG shipments after its energy assets came under attack.

    When the fog of war clears, however, and the Strait of Hormuz reopens to oil and gas flows, the global economy will look to QatarEnergy to swiftly restore regular LNG cargoes in order to bring gas prices down from record highs.

    Beyond that short-term role, the recent $8bn investment the Qatari giant has committed to building two new LNG processing trains will also cement its position as a reliable long-term supplier, while further intensifying the race among global LNG producers to carve out larger market shares in an increasingly gas-hungry world.

    North Field West – a game changer

    The state-owned company has progressed from the front-end engineering and design (feed) phase to the engineering, procurement and construction (EPC) stage of its North Field West LNG project at pace.

    It awarded the main EPC contract for the scheme – covering two LNG processing trains with a total capacity of 16 million tonnes a year (t/y) – to a joint venture comprising France’s Technip Energies, Greece/Lebanon-based Consolidated Contractors Company (CCC) and Gulf Asia Contracting on 25 February.

    The contract, estimated to be worth $8bn, was awarded just a month after Japan-based Chiyoda Corporation won the project’s feed contract.

    Such a short interval between the feed and EPC phases for a project as large as North Field West LNG would typically be considered improbable. Industry sources suggest QatarEnergy may have been in discussions with Chiyoda and the Technip Energies-CCC consortium for at least a year regarding the feed and EPC contracts, respectively – particularly given the two-year gap between the project’s announcement in February 2024 and the start of the EPC phase.

    Chiyoda, Technip Energies and CCC are also involved in the first two phases of QatarEnergy’s $40bn North Field LNG expansion project. A consortium of Chiyoda and Technip Energies is executing EPC works on the North Field East project, which involves the construction of four LNG trains with a combined capacity of 32 million t/y, following the award of a $13bn contract in February 2021. Meanwhile, a Technip Energies-CCC consortium is carrying out EPC works on two 7.8 million t/y LNG trains as part of the North Field South project, having secured a $10bn contract in May 2023.

    More significant, however, is the speed with which QatarEnergy is advancing its strategic objective of reaching a total LNG production capacity of 142 million t/y by the end of the decade, from 77.5 million t/y at present.

    With all three phases of the North Field LNG expansion programme now under EPC execution – and North Field East scheduled for commissioning later this year – QatarEnergy appears firmly on track to become one of the world’s largest LNG suppliers over the long term, reinforcing Qatar’s economic future in the process.

    US domination

    While QatarEnergy is on course to increase its LNG production capacity by 83% by 2030 through the overall North Field LNG expansion programme, it is still some way behind the US, which is set to account for over half of the total global LNG liquefaction projects by 2030.

    There are 40 new-build and expansion LNG liquefaction projects planned or under way in the US, according to UK analytics firm GlobalData. Among these, two projects stand out.

    The first is the Rio Grande LNG production project, being developed by NextDecade in Texas, on the US Gulf of Mexico coast. Up to 10 processing trains are planned for the complex, the first three of which are in the EPC phase.

    NextDecade achieved the final investment decision on the fourth and fifth trains at the facility, estimated to cost $6.7bn each, in September and October last year. The company has awarded EPC contracts to build all five trains at the Rio Grande facility to US-based Bechtel.

    On the investments front, the overseas-focused energy investment vehicle of Abu Dhabi National Oil Company (Adnoc), XRG, acquired an indirect 11.7% stake in the first phase of the project from Global Infrastructure Partners (GIP), part of US asset manager BlackRock, in September last year. In February 2026, XRG entered into another transaction with GIP to raise its overall participation in the Rio Grande LNG project by acquiring additional 7.6% equity interests in trains four and five of the scheme.

    Additionally, as part of that transaction, another Adnoc Group subsidiary, Adnoc Trading, entered into a 20-year offtake agreement with NextDecade last year to purchase 1.9 million t/y of LNG from Rio Grande train four, on a free-on-board basis at a Henry Hub-indexed price. France’s TotalEnergies and Saudi Aramco are the other LNG offtakers for train four.

    Separately, the Commonwealth LNG facility in the US state of Louisiana has also received backing from Abu Dhabi. Expected to start operations in 2030, the facility is designed to produce up to 9.5 million metric t/y of LNG.

    Commonwealth LNG is a project of US-based alternative asset manager Kimmeridge Energy Management Company and Abu Dhabi’s sovereign wealth fund Mubadala Investment Company through their joint venture Caturus.

    Caturus was formed in August 2025 when Kimmeridge announced a rebranding that saw Commonwealth LNG and Kimmeridge’s upstream operations combined under a new integrated platform. At the same time, Mubadala acquired a 24.1% equity stake in Caturus, providing financial backing for the new entity to proceed with the Commonwealth LNG project.

    Also in August, Caturus awarded Technip Energies the contract for EPC works on the Commonwealth LNG project. The French contractor had previously performed the project’s feed work.

    Moreover, Aramco subsidiary Aramco Trading signed a 20-year agreement to buy 1 million metric t/y of LNG from the Commonwealth LNG facility in February, increasing offtake deals secured by Caturus to cover 8 million metric t/y of the project’s total planned output capacity.

    Positive outlook

    The growth in LNG production capacity in the US, as well as in wider North America, is driven by several factors, including abundant natural gas reserves, the shale gas revolution and advancements in hydraulic fracturing and horizontal drilling.

    While it might be a challenge for QatarEnergy to compete with US players in combined liquefaction capacity, its strength and success will lie in clinching long-term offtake deals with customers in Asia, where the bulk of global LNG demand growth is expected.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15954252/main3511.jpg
    Indrajit Sen
  • Bahrain opens bids for first solar IPP project

    13 March 2026

    Two companies have made offers for a contract to develop Bahrain’s first solar photovoltaic (PV) independent power project (IPP).

    Bahrain’s Electricity & Water Authority (EWA) opened bids for the Bilaj Al-Jazayer solar IPP project on 12 March.

    The bidders include Saudi Arabia’s Acwa, formerly Acwa Power, and UAE-headquartered Yellow Door Energy.

    The 150 MWac Bilaj Al-Jazayer solar IPP project will be Bahrain’s first grid-connected solar PV power plant developed under a public-private partnership (PPP) framework on a build-own-operate basis. It will be delivered as a long-term concession and is intended to come online by 2027.

    The proposed site covers more than 1 square kilometre, with the private sector responsible for end-to-end development, including financing, design, construction and operation.

    Last August, EWA held a market consultation event during which it outlined plans for the country’s first solar PV IPP. The main contract was then tendered in October.

    EWA said Yellow Door Energy’s proposal was “accepted with conditions”, but did not disclose further details.

    The local KPMG Fakhro is the financial consultant, the US’ WSP Parsons Brinckerhoff is the technical consultant, and the UK’s Trowers & Hamlins is the legal consultant.

    Bahrain’s clean energy targets, as set by its national plans, include 20% renewables by 2035, and net-zero emissions by 2060.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15968088/main.jpg
    Mark Dowdall
  • DP World sees Red Sea port volumes rising as Hormuz shuts

    13 March 2026

    Register for MEED’s 14-day trial access 

    Dubai-based ports operator DP World is preparing for higher throughput at its Red Sea terminals as the Iran conflict approaches its second week, CEO Yuvraj Narayan said on Thursday.

    With the Strait of Hormuz effectively closed and tanker attacks escalating, shipping movements into Gulf ports have fallen.

    The disruption began after US and Israeli strikes on Iran, rattling energy and freight markets and cutting access through what is widely seen as the world’s most critical oil corridor.

    Since most major Gulf ports rely on the narrow Strait of Hormuz, the shutdown is weighing on regional trade flows.

    Narayan said Jebel Ali, DP World’s main hub in Dubai, has not suffered any infrastructure damage and is operating normally, but inbound vessel arrivals are down. Some cargo is still moving through terminals on the eastern side of the strait, he added.

    Ports in the UAE that sit outside Hormuz have limited headroom to absorb the shortfall. Khorfakkan can handle about 5 million 20-foot equivalent units (TEUs) and Fujairah under 1 million TEUs, which Narayan indicated would not be enough to offset lost volume from Jebel Ali or Abu Dhabi’s Khalifa Port.

    Jebel Ali alone processed 15.6 million TEUs last year, out of DP World’s 56.1 million TEUs globally.

    DP World is rolling out rerouting options and other operational measures to keep supply chains moving. Narayan said the company’s Red Sea assets, such as Jeddah in Saudi Arabia and Sokhna in Egypt, are likely to see increased traffic, though he did not quantify the additional volumes or specify cargo types.

    He cautioned that logistical and security risks remain elevated.

    Earlier this week, DP World 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, as MEED reported.

    DP World said that 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 TEUs.

    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/15968045/main.jpg
    Yasir Iqbal
  • Frontrunner emerges for Saudi sewage treatment project

    13 March 2026

     

    A consortium led by China’s Jiangsu United Water Technology has emerged as the frontrunner for a contract to build and upgrade two sewage treatment plants in Saudi Arabia, according to sources.

    The contract covers the North Western A Cluster Sewage Treatment Plants Package 11 (LTOM11), part of the next phase of National Water Company’s (NWC) long-term operations and maintenance (LTOM) sewage treatment programme.

    The consortium comprising United Water, Prosus Energy (UAE) and Armada Holding (Saudi Arabia) offered “the lowest tariff” for the project, sources told MEED.

    It is understood that Turkey’s Kuzu has made the next-lowest bid.

    The development, estimated to cost about $211m, will have a combined capacity of about 440,000 cubic metres a day (cm/d).

    In February, MEED exclusively reported that six bidders were competing for the contract.

    The other companies that have submitted proposals include:

    • Alkhorayef Water & Power Technologies (Saudi Arabia)
    • Civil Works Company (Saudi Arabia)
    • VA Tech Wabag (India)
    • Aguas de Valencia (Spain)

    LTOM11, also known as the North Western A Cluster, forms part of the second phase of NWC’s rehabilitation of sewage treatment plants programme.

    The scheme is being procured on an engineering, procurement and construction (EPC) basis with a long-term operations component.

    The main contract was tendered last year, with an award initially expected by the end of 2025.

    It is now understood that NWC is preparing to offer the main contract in the second quarter.

    As previously reported, Saudi Arabia’s NWC is also evaluating five bids for package 12 of its long-term operations and maintenance (LTOM12) sewage treatment programme.

    Known as the North Western B Cluster, LTOM12 forms part of the second phase of NWC’s rehabilitation of sewage treatment plants programme.

    In January, the same United Water-led consortium won the main contract for the Northern Cluster Sewage Treatment Plants Package 10 (LTOM10).

    That project includes the rehabilitation and operation of nine sewage treatment plants located across the Hail, Qassim, Al-Jouf and Northern Borders provinces

    NWC is also preparing to tender a contract for the construction of 10 sewage treatment plants as part of package 14 of the programme.

    The final details of the Eastern A Cluster (LTOM14) package are being finalised, with a tender likely to be issued in March or April, sources told MEED.

    READ THE MARCH 2026 MEED BUSINESS REVIEW – click here to view PDF

    Riyadh urges private sector to take greater role; Chemical players look to spend rationally; Economic uptick lends confidence to Cairo’s reforms.

    Distributed to senior decision-makers in the region and around the world, the March 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15968035/main.jpg
    Mark Dowdall
  • Medina tenders Sikkah Al-Hadid PPP project

    13 March 2026

    Saudi entities including Al-Madinah Regional Municipality, in collaboration with the Ministry of Municipalities & Housing and the National Centre for Privatisation & PPP (NCP), have floated a request for proposal (RFP) notice for the development of the Sikkah Al-Hadid project.

    The project will be procured through build-own-operate-transfer contracts with a 50-year duration, using a public-private partnership (PPP) model.

    The deadline for bid submission is 23 June.

    The project will be located to the west of Medina on an 84,657-square-metre (sq m) site. 

    It includes a four-storey medical centre with a capacity of up to 200 beds and a shopping mall offering retail, food and beverage, and other entertainment facilities.

    In January last year, NCP asked firms to express their interest and prequalify for a contract to develop two mixed-use developments in Medina, which included the Sikkah Al-Hadid project and the Dhul Hulaifah project.

    The Dhul Hulaifah project will be built on a 30,112 sq m site located six kilometres from the Prophet’s Mosque. 

    The development will consist of a four-star hotel integrated with retail and healthcare facilities.

    MEED previously reported that Saudi Arabia had announced a P&PPP pipeline comprising 200 projects across 16 sectors.

    This pipeline aims to attract local and international investors and ensure their readiness to participate in the schemes tendered to the market.

    The initiative comes as the kingdom strives to increase the attractiveness of its economy and raise the private sector’s contribution to GDP.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15968021/main.jpg
    Yasir Iqbal