The UAE’s city of Ras Al Khaimah will see major investments made across several industries in 2024 as the economy prepares for massive growth this year, experts told Arabian Business.ra
“Ras Al Khaimah has been undergoing a transformative journey, diversifying its economy beyond its traditional stronghold in industries such as ceramics and cement,” said Ramy Jallad, CEO of RAKEZ Group.
The northern emirate is now seeing exponential growth in sectors like tourism, hospitality, trading, e-commerce, real estate, and services. This has been largely driven by the announcement of the upcoming casino in the Wynn Al Marjan Island resort.
Jallad expects the resort to directly attract “substantial investments” in entertainment, hospitality and construction which will significantly impact the economy and boost job creation. “We are already seeing high interest from global investors wanting to be part of the emirate’s business landscape,” he added.
“Major projects like this tend to have a ripple effect, catalysing growth in related sectors.”
Foreign investment has already seen a marked increase in RAK in anticipation of the resort’s opening in early 2027. Prior to 2023, almost no real estate investors from China made inquiries about Ras Al Khaimah, a source told Arabian Business last year. However, after the Wynn resort announcement, many have inquired about the city’s real estate market.
Analysts project robust medium and long-term growth prospects for the emirate’s economy stemming from the resort’s operations. Nemr Kanafani, Senior Economist at The Conference Board MENA, estimates gaming could ultimately boost the UAE’s GDP from tourism by 10 to 15 percent and enlarge the national economy by 1 to 1.5 percent once fully developed in coming years.
“The emirate has the potential to grow its tourism sector considerably and plans to build a casino there can help support that,” said Kanafani, highlighting that Ras al Khaimah has now opened up to a different tourist profile which will only contribute positively to the UAE’s overall attractiveness as a leisure and business destination.
The $3.9 billion gaming resort represents a considerable investment and is expected to add three percentage points to Ras Al Khaimah’s GDP this year alone. Vikas Lakhwani, Chief Revenue Officer at CPT Markets, agrees with Jallad’s sentiment and expects the project to fuel growth across diverse sectors by drawing both local and international tourists.
The casino, he believes, will enhance the emirate’s touristic appeal, with some projections indicating it could attract over 3 million tourists by 2030.
“RAK’s strategic efforts in diversifying its economy, coupled with its business-friendly environment offering favourable regulations and tax incentives, make it an attractive spot for foreign investment. The emirate’s focus on sectors like tourism, manufacturing, and renewable energy presents diverse opportunities for foreign investors,” said Lakhwani.
Ras Al Khaimah’s economic shift
In a major economic boost, Ras Al Khaimah will see continued rising foreign funding through 2024 as the resort stimulates complementary sectors like real estate and hospitality and the economy shifts its reliance away from being traditionally industry-based to an economy driven by luxury tourism and gaming.
“The medium and long-term economic prospects for RAK seem robust,” said KAMA Capital’s CMO, Abdelhadi Laabi.
Ras Al Khaimah is now positioning itself as an emerging economic hub through strategic investments and is forecast to achieve robust growth in 2024 at around 5.1 percent.
“RAK is steadily carving a distinct niche in the UAE’s economy. RAK’s growth, particularly with projects like the gambling resort and innovative [government] initiatives showcase its ambition to become a regional economic hub,” added Laabi.
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