While everyone else was trying to stay afloat amid a tough market, RAK Properties, Ras Al Khaimah’s largest property developer, was on a roll. The company’s revenue was in excess of Dh390 million last year, a growth of 5.98 per cent from the previous year. This coincided with new milestones in the company’s flagship development, Mina Al Arab, including the handover of the second phase of Flamingo Villas in October, two months ahead of schedule, and the announcement of a new Dh5 billion mixed-use development.
It was therefore no surprise that the man who steered the growth of the company was named one of the GCC’s most powerful business personalities. At the recent CEO Awards 2017 in King Abdullah Economic City, Saudi Arabia, Mohammad Sultan Al Qadi, managing director and CEO of RAK Properties, was named one of the GCC’s top CEOs for the second year running.
The awards, organised by Trends magazine in conjunction with Insead business school, honours business heads and CEOs of firms listed on the stock exchanges of Saudi Arabia, the UAE, Qatar, Bahrain, Kuwait and Oman.
With RAK Properties on course to maintain its momentum this year, Al Qadi talks to PW about the factors driving the company’s sustained growth and the real estate potential of the northern emirate.
What are the key factors for the company’s strong performance?
The results are a clear indication of the company’s strong position in the market. Despite the downturn experienced across the industry, demand is still there and reputable developers such as RAK Properties have established trust with local, regional and international buyers and investors.
We have established ourselves as a trusted partner for homes and commercial space, offering key developments across the UAE, and this remains a key foundation for our success.
Supporting our projects, we have a strong marketing strategy that reaffirms our position and showcases current and new developments on a global platform and in various international property shows.
Tell us about your recently launched projects.
Julphar Residence, which is a 24-floor residential tower in Abu Dhabi, will be completed in the fourth quarter of 2018. It has a prime central location within the vibrant Al Reem Island community. All design elements of the project combine comfort with practicality, to maximise the use of space, natural light and offer warmth through the materials used and its colour scheme.
The property will feature 266 apartments, which range from chic and smartly laid out studios to spacious three-bedroom units. In addition, communal living is a key element with a rooftop garden, swimming pools and gyms for all residents.
Mina Al Arab is a landmark development for RAK Properties designed to be a new social and entertainment hub of Ras Al Khaimah. Being developed with an investment of Dh5 billion, the 811,420 m² island will feature a five-star resort, a four-star lifestyle resort, serviced apartments, a shopping mall, beach and waterfront apartments, villas and town houses with a private beach clubhouse. Along the beach there will be al fresco dining and entertainment venues.
What is the status of your other ongoing projects in Ras Al Khaimah and what sort of investment opportunities do they offer?
RAK Properties has a number of ongoing projects at various stages of development and we continue to look at areas of interest that present an investment opportunity for the business.
We have handed over the second phase of the 192-unit Flamingo Villas community, part of Mina Al Arab. We’ve released the new phase of Bermuda Villas, a further development within Mina Al Arab. The community has two- to six-bedroom villas and town houses, which have been designed to optimise their extraordinary beachfront setting. We have introduced a very attractive payment plan with investors only needing to pay 10 per cent as down payment. During handover, a further 15 per cent is to be paid, with the remaining being structured over a five-year period.
Ras Al Khaimah is one of the fastest-growing destinations in the region and investment opportunities present a lucrative return for those looking to purchase property. The emirate represents an affordable proposition for prospective buyers. Not only are prices significantly lower than those in Dubai, the quality of life is unparalleled given the space and natural attributes that are found throughout the emirate, rather than just in select pockets.
With the slow market, do you expect a good number of buyers or investors for your new inventories in Abu Dhabi and RAK?
The previous year presented a strong performance for RAK Properties. The demand is still there and we are receiving interest in all of our developments on a regular basis across our source markets, however, we are aware that we need to diversify and further expand our reach.
As part of our strategy, we attended the International Real Estate Expo (Irex) in New Delhi, India, in October. India has long been a key investor market for RAK Properties and in recent years we have recorded significant growth in sales from Indian buyers living inside and outside the UAE.
What is your general assessment of the Ras Al Khaimah market?
Mina Al Arab remains to be of particular interest for international investors, confirming the solid opportunity in Ras Al Khaimah. The emirate and its various developments present an alternative lifestyle that is appealing for residents and a safe, solid investment proposition for investors.
We attend a number of international property shows, such as Irex, as part of our global marketing efforts to showcase our various developments and we continue to receive tremendous feedback. Mina Al Arab encompasses a number of individual projects, which we have handed over to owners in phases. This will be the same with the new development, which consists of various components. For example, the planned five-star hotel is scheduled to open next year.
What are the driving factors for real estate growth in the northern emirate?
Currently, there is demand for high-end beach property in RAK. RAK Properties has adapted to this demand and is developing a number of propositions, such as Bermuda Villas and Flamingo Villas — each ensuring we stay relevant to the market demand.
There has been considerable investment across the UAE in terms of infrastructure, which aims to further connect destinations across the country. Last year the Emirates Road was extended to Ras Al Khaimah, adding a further convenience for those travelling to and from the northern emirate.
Additionally, there are more than 100km of federal roads being constructed. As part of this considerable investment, Ras Al Khaimah will benefit from a ring road, which aims to further connect the northern emirate with the east and south.
Ras Al Khaimah already benefits from being within close to other emirates. For example, it is only a 45-minute drive to Dubai International Airport. Such infrastructure projects further enhance the affordable appeal of living in Ras Al Khaimah, by increasing accessibility, especially for those looking to commute to work, while enjoying a more relaxed lifestyle that the emirate offers.
Last year was a landmark year of expansion for Ras Al Khaimah International Airport, which has welcomed a number of new routes and airlines. Together with the expansion of Air Arabia’s routes from the airport, Qatar Airways began flying four services per week from its hub in Doha. In addition, a number of chartered flights from Eastern Europe are expanding into the emirate’s aviation terminal, including one from Poland that was launched by TUI and operated by Enter Air.
These additions not only support Ras Al Khaimah’s target of attracting one million visitors by the end of 2018, but also create further opportunities for residents to travel to see friends or family on a wider network of destinations.
