Ras Al Khaimah, 13 March 2019: Marjan, the master-developer of freehold property in Ras Al Khaimah, is highlighting the high-value investment opportunities in the emirate in the United Arab Emirates, at MIPIM, the premier real estate event being held until March 15, 2019, at Palais Des Festivals in Cannes, France.
In addition to highlighting the competitive advantages of investing in Al Marjan Island, the flagship waterfront mega-development by Marjan, the company is also putting the spotlight on the attractive benefits offered by Ras Al Khaimah for international investors.
Drawing on the UAE’s strategic location at the crossroad between Asia, Europe and Africa, Ras Al Khaimah is only 45 minutes away from Dubai International Airport, and 30 minutes from the region’s most important water channel, The Strait of Hormuz.
Ras Al Khaimah has a diversified economy with real estate, tourism, manufacturing and trading as key growth sectors. In 2018, S&P Global ratings affirmed its “A/A-1” for Ras Al Khaimah, adding that the Emirate’s outlook remains stable. Fitch also affirmed the emirate’s rating at “A” with a stable outlook, making Ras Al Khaimah an attractive and secure place in which to invest.
Ranked 45th in World Bank’s Doing Business Survey as the friendliest territory in the world in which to do business, putting it in the top two in the Gulf region, Ras Al Khaimah welcomes investors with several benefits including: 100% foreign ownership, 100% repatriation of capital and profits; 100% availability of utilities; and 0% corporate and personal tax.
The hospitality sector has recorded significant growth with tourist arrivals increasing 9.9% in 2018 to over 1.07 million tourists. Ras Al Khaimah is now on track to welcome 1.1 million visitors this year and 2.9 million tourists by 2025. In addition to its rich cultural offering, Ras Al Khaimah appeals to visitors for its beaches, adventure sports and the world’s longest zipline, among others.
For investors, Ras Al Khaimah offers the advantage of equity IRR of 16.1% for hospitality assets and 20 to 30% on residential assets. The emirate offers the advantage of low development cost, which is approximately 10% lower than the regional average.
Al Marjan Island is of particular interest to international hospitality investors with average annual occupancy at its hotels at 77.8% in 2019, an average daily rate of AED 608, RevPAR of AED 473 and an average length of guest stay at 4.46 days. Last year, the destination welcomed about 294,000 guests and recorded total guest nights of 1.3 million. In addition to welcoming local tourists, Al Marjan Island is a preferred tourist destination for European and Russian guests.
With 8,000 planned hotel rooms, 6,500 residential units, and 600-holiday villas, Al Marjan Island offers a perfect opportunity for investors from across the world. Currently, Al Marjan Island has over 1,600 operational five-star hotel keys, including Rixos Hotels, Hilton Hotels & Resorts and Accor Hotels brands, and more than 2,000 residential units including Bab Al Bahar residential and Pacific by Select Group.
Marjan, working with Ras Al Khaimah government entities, had put the global spotlight on the emirate and on Al Marjan Island with the Ras Al Khaimah New Year’s Fireworks that won two Guinness World Records for the ‘Longest chain of fireworks’ and the ‘Longest straight line of fireworks’.
Eng. Abdulla Al Abdouli, Managing Director and Chief Executive Officer of Marjan, said: “Through our participation at MIPIM 2019, we are reaching out to global investors and presenting them the value-add they stand to gain by investing in Ras Al Khaimah. One of the fastest growing residential, touristic and business destinations in the region, the Emirate is today a preferred business and leisure hub that appeals to international guests, underlined by the consistent growth in tourist arrivals."