7 ways Ras Al Khaimah is catching up with Dubai, Abu Dhabi

Dubai: Ras Al Khaimah is no longer just a weekend getaway from Dubai. The emirate is rapidly evolving, offering lifestyle, investment, and tourism opportunities that increasingly rival Dubai and Abu Dhabi.

CBRE Middle East’s Q2 2025 research shows the momentum behind RAK’s transformation is real, making it a hotspot for both residents and investors.

1. Strong economic growth

• UAE GDP is forecast to grow 5.1% in 2025, fueled by oil production and non-oil sectors.

• Ras Al Khaimah itself is projected to grow 4.2% annually through 2027 (S&P Global).

• Stable inflation ensures predictable living costs, making the emirate attractive for families and investors alike.

2. Surge in foreign investments

• RAK attracted Dh700 million in foreign direct investment across six key projects in H1 2025.

• Global companies like H.B. Fuller are setting up facilities, signaling confidence in the emirate’s long-term growth.

• RAKEZ added 8,506 new companies in H1 2025, a 43% year-on-year increase, and was named UAE’s fastest-growing economic zone.

3. Off-plan property sales soaring

• Q2 2025 recorded 1,760 off-plan residential transactions, totaling Dh3.6 billion.

• High-profile projects like Fairmont Hotel & Residences, Anantara Branded Residences, and Enta Mina are driving demand.

• Apartment rents jumped 20.8%, and villa rents rose 5.3%, reflecting strong interest from buyers and tenants.

4. Rise of luxury, branded homes

• Names like Ritz-Carlton and Armani are entering RAK’s property market, elevating the emirate’s appeal.

• By 2030, branded residences are expected to comprise 25% of upcoming freehold supply (4,800 units).

• Overall, 19,300 new residential units are projected by 2030, reshaping RAK’s skyline.

5. Tourism-boosting economy

• Tourism contributed 5% to RAK’s GDP in H1 2025.

• Hotel visitor arrivals reached 653,700, up 6% year-on-year; international tourists made up half of these arrivals.

• Guest nights exceeded 2.27 million, while hospitality revenues rose 9% to Dh822 million.

6. Hospitality expanding rapidly

• RAK currently operates 55 hotels, with 3 more opening by year-end.

• The pipeline includes 29 new hotels by 2030, featuring luxury projects like the Hard Rock Hotel & Residences and Wynn Resorts’ Enclave.

• Global players Accor, Marriott, and Wynn are raising the bar for high-end hospitality in the emirate.

7. Entertainment, gaming is key

• Wynn Resorts confirmed a second plot for a gaming resort in RAK, marking a unique offering in the UAE.

• This positions RAK as an emerging entertainment destination, giving it an edge over Dubai and Abu Dhabi in niche tourism and leisure experiences.

Bottom Line: CBRE Middle East’s research highlights that Ras Al Khaimah is no longer just a secondary option for UAE residents. With strong GDP growth, rising FDI, booming real estate, and a luxury hospitality pipeline, RAK is catching up fast with Dubai and Abu Dhabi — offering lifestyle, investment, and leisure opportunities that are increasingly hard to ignore.