Ras Al Khaimah real estate 'doing well'

12/06/2012 - Ras Al Khaimah Property News Posted by Neil King
Ras Al Khaimah real estate 'doing well'

The recent market conditions have not been as good as they could for those looking at buying property in Ras Al Khaimah (RAK), but it has been reported that the emirate's real estate industry is currently doing well.According to the Oxford Business Group, there are a number of developments being given the green light, with RAK Properties - the largest property company in the region - seeing more large-scale developments reach completion, including the Mina Al Arab beachfront resort, the RAK Tower and Julfa Towers.Both the real estate and business markets contributed around 7.2 per cent of RAK's total gross domestic product in 2010, according to figures posted by the RAK Department of Economic Development.Several major organisations continue to preside over the sector, including the Al Hamra Real Estate Development Company, Rakeen Development and RAK Properties - with all of these being partially owned by the government.RAK Properties posted net profits of $29.5 million (£18.9 million) for 2011, which is down from 2010's $51 million as a result of higher provisions for impairments on developments.However, these new revenue streams means the company should return to growth in the short-to-medium term.Tourism is one area of the RAK economy that is expected to swell.Recent government initiatives have promoted the emirate - which is to the north of Abu Dhabi, Dubai and Sharjah and borders Oman's enclave - as a great place for visitors to the UAE.The RAK Tourist Investment and Development Authority expects some 1.2 million people to visit the region by the end of 2012, when in 2011 it welcomed 800,000 individuals.A number of projects are set to come to fruition in the coming months, which will secure RAK's reputation as a travel hub, with the Bab Al Bahr expected to open its doors in early 2013, boasting 640 hotel rooms and other facilities.This development is based on Al Marjan Island - a key tourist destination - which is a cluster of five man-made land masses offering a broad mix of commercial, residential and tourism-focused facilities.