RAK tourism revenue up 9%: 5 reasons investors bet big on Ras Al Khaimah

Dubai: The UAE’s northernmost emirate has long been admired for its rugged mountains, sandy coastline and outdoor adventure credentials. But in 2025, Ras Al Khaimah (RAK) is attracting attention for something else: its tourism economy.

According to Stirling Hospitality Advisors’ latest RAK Investment Pulse report, the emirate saw a 9% rise in tourism revenues in the first half of the year, alongside a 6% increase in visitor arrivals.

Occupancy hovered close to 72%, while RevPAR rose by 6.2%. In a region dominated by Dubai and Abu Dhabi, RAK’s steady growth is quietly turning it into one of the UAE’s most strategic investment frontiers.

So, what’s driving investor interest? Here are five reasons.

1. Tourism Vision 2030 sets pace

RAK has a bold target: 3.5 million annual visitors within the decade. But this isn’t a vanity number — it’s supported by a detailed roadmap to enhance competitiveness, infrastructure and liveability.

From Al Marjan Island’s luxury resorts to adrenaline-filled attractions on Jebel Jais, the emirate is building a diversified tourism portfolio that appeals to both families and adventure seekers.

2. Investor-friendly ecosystem

What once felt like a maze of approvals has now been streamlined. RAK offers one of the UAE’s fastest and most cost-efficient investment setups, thanks to players like RAKEZ and RAKTDA.

Whether it’s setting up a special-purpose vehicle, securing permits, or working with master developers like Marjan, investors are finding a clear, supportive framework that reduces uncertainty and accelerates time-to-market.

3. Real estate, hospitality boom

The numbers tell their own story. Residential rents rose 13% year-on-year in early 2025, while average sales values surged 39%.

Tourism demand is translating into higher yields for hotel owners too, with average daily rates climbing to Dh637. For investors, this means dual upside — capital appreciation on assets, and healthy operating returns from hospitality ventures.

4. Streamlined investments

The RAK Investment Pulse breaks down the full hotel investment lifecycle into six clear stages: acquisition, feasibility, financing, construction, licensing and operations.

Each step comes with practical advice — from choosing the right architect to insisting on a mock-up room before mass construction. For investors, this kind of transparency is invaluable, turning what was once complex into an achievable pathway.

5. Strong public-private collaboration

Confidence is built on partnerships, and RAK’s are strong. RAKTDA champions tourism promotion and licensing. RAKEZ simplifies company formation.

RAKBANK provides tailored financing. And master developers like Al Hamra and Marjan unlock prime land parcels. It’s a well-coordinated ecosystem designed to make investors feel less like outsiders and more like long-term partners in the emirate’s growth story.

Bottom line? With revenues up, a booming property market, and a transparent roadmap for investment, Ras Al Khaimah is no longer just the UAE’s adventure capital. It’s fast becoming its most compelling investment destination. For those looking at hospitality, the window of opportunity is wide open.