Emerging emirate set to boom

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Development: Dajani says RAK's growth will rise.

Rapidly developing emirate Ras Al Khaimah (RAK) is set for exponential growth in the next two years and is on target to attract AED50bn (US$13.6bn) in inward investment, according to leading executives and analysts in the region.

Speaking at the recent RAK 2007 conference, Izzat Dajani, CEO of the emirate’s Investment and Development Office (RAK IDO) predicted that “lifestyle” developments would attract 60% of the huge surge in investment with 40% coming from industrial sources.

The latest boost for the emirate is a double-deal worth US$50m to develop a new university and hospital. In partnership with RAK IDO, top-tier educational institute Tufts University and Texas-based multi-speciality healthcare provider Methodist Hospital will both set up in the emirate. “To have globally renowned institutions like Methodist and Tufts partnering with us is a sign of confidence in RAK,” Dajani said.

Nicholas MacLean, managing director of commercial real estate services company CB Richard Ellis Middle East, said: “For such a relatively small location, RAK is making significant levels of investment to spur additional economic development and job creation, and we fully expect that level of growth to continue.” The emirate, he added, must continue to develop its underlying industrial base, support services and infrastructure to create the right conditions for institutional investors.

Selim El Zyr, president and CEO of the Rotana Hotels Corporation, said he was highly optimistic about growth potential in the emirate. Rotana is currently involved in two RAK-based projects — the US$60m hotel and villa project The Cove and the US$2.7bn Mina Al Arab waterfront development.

“[RAK] has a rare nature and will resonate with people willing to pay the price for something that is unavailable in the rest of the region.”

Earlier this month, the RAK Free Trade Zone reported 190% growth in the number of companies registered, representing a huge capital investment of AED3.3bn (US$899m).

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