Ras Al Khaimah (RAK) is increasingly becoming a significant global investment hub, attracting businesses and luxury developers with its investor-friendly policies and stunning natural landscapes. The emirate has seen a remarkable transformation, moving from a quiet escape to a hotspot for global enterprises.

In 2024, RAK recorded a 12% increase in tourism revenues, welcoming over 1.28 million visitors, and is projected to reach 3.5 million annually by 2030. One of the key projects driving this growth is the $2.4 billion Wynn Al Marjan Island, which has caught the attention of many investors.

According to Khaleej Times, Marc von Grundherr, the director of Benham & Reeves, compared RAK’s current investment landscape to Dubai’s 15 years ago. The real estate broker, which operates in multiple countries including the UAE and the UK, noted that RAK has recently joined their portfolio as a desirable destination for buyers. He mentioned that investors from RAK now account for about 7.3% of their clientele, a notable increase from 0% last year.

With lower property prices compared to Dubai, RAK is attracting overseas investors who have been priced out of the more expensive market. A report from KAYinvest highlighted that real estate sales in RAK reached Dh11.95 billion in the first three quarters of 2024, a substantial 70% increase from Dh3.84 billion in 2020. Von Grundherr emphasized that the capital values are lower in RAK and projected a strong rental yield, suggesting that the area is becoming increasingly appealing for international investors. Despite the rising interest, real estate prices are expected to rise by 8% this year.

The anticipated opening of Wynn Al Marjan Island, which will feature 1 542 hotel rooms and a 15 000-square-meter shopping plaza, is further positioning RAK as a tourist and investment destination. Wynn Resorts, based in Las Vegas, received the first official gaming license for a UAE resort from the General Commercial Gaming Regulatory Authority, marking a significant milestone for the emirate.

Raki Phillips, CEO of the Ras Al Khaimah Tourism Development Authority (RAKTDA), confirmed efforts to enhance air connectivity to Ras Al Khaimah International Airport with direct flights from key markets. This aims to support the expected influx of tourists and residents interested in the casino and nightlife.

The Ras Al Khaimah Economic Zone (RAKEZ) is actively working to bolster the manufacturing sector by attracting foreign direct investment. Ramy Jallad, CEO of RAKEZ, mentioned that 13 141 new companies established operations in RAK last year, representing a 66% increase from the previous year. He noted that the industrial sector contributes over one-third of the emirate’s GDP and plays a vital role in the UAE’s manufacturing output.

Several international companies are setting up operations in RAK, including Peikko, which plans to increase its manufacturing capacity by 40% to meet regional demands. Italfoods, a US-based firm, produces up to 60 tonnes of cheese daily at its RAK facility. RAKEZ is also offering businesses a streamlined service to apply for licenses, with costs as low as Dh6,000, making it an attractive option for startups and established corporations alike.

As RAK’s business scene flourishes, so does its hospitality sector, with 56 hotels and resorts already operating. Phillips stated that RAKTDA aims for the tourism sector to contribute to one-third of the emirate’s GDP and create over 20,000 jobs by 2030. The upcoming casino is expected to further stimulate growth in both tourism and business.

Georgina Kelly, founder and CEO of RAK Entrepreneurs, emphasized the role of SMEs in RAK’s economy. She believes that while the influx of large developments, like the casino, boosts confidence in the local economy, the foundations for a strong business ecosystem have been laid over the past decade. She predicts that the new jobs created will lead to increased demand for housing and services in the area.

Von Grundherr pointed out that Benham & Reeves has active projects near the casino and the Nikki Beach resort, set to open in 2027. He noted that interest in RAK is growing, with about 10% of inquiries from investors focusing on the emirate. However, he cautioned that foreign investors should be careful when engaging with smaller developers due to potential risks, suggesting that long-term, established developers are a safer bet.

Despite the challenges, the investment potential in RAK is undeniable, attracting attention from investors looking for favorable returns. Von Grundherr himself is considering investing in RAK, reflecting the growing sentiment that the emirate’s market holds substantial promise.