The profit gain for the first-nine months of 2021 is at a staggering 383%. Image Credit: Ahmed Ramzan/ Gulf News

Everyone is aware of the strong recovery in Dubai real estate prices and the spate of deals, especially in the higher end of the market. However, another emirate is catching up fast – and that’s Ras Al Khaimah.

A Dubai Investments’ project announced recently is the perfect validation for Ras Al Khaimah property sector. The firm is planning to develop a Dh1 billion mixed-use project. In its statement, Dubai Investments mentioned that Ras Al Khaimah is gaining traction as a hub for tourism. Of course, many of us already knew it as the emirate’s beach properties were widely popular among the UAE residents during the pandemic.

The best way to bet on its real estate is to invest in RAK Properties, listed on Abu Dhabi Stock Exchange. The firm has posted stellar results, with revenues reaching Dh424.37 million in the third quarter of 2021, a 139 per cent increase on 2020. Moreover, profits rose by a massive 383 per cent to Dh197.9 million, compared to Dh40.97 million, indicating the strong fundamentals of the business. In addition, higher investments have also led to the value of assets rising to Dh6.18 billion from Dh5.8 billion.

Early winner

The emirate’s real estate is a beneficiary of the quick return to normalcy after the pandemic. Plus, the Expo is forecast to positively impact on the UAE economy, particularly the tourism and real estate sectors. And Ras Al Khaimah being a prominent tourism destination will profit from this scenario. Also, its investor-friendly environment, including the law that allows overseas investors to have 100 percent real estate ownership. The investor-friendly measures will provide an impetus for the expansion of the real estate sector.

RAK Properties is quite aggressive on the growth front, and targets $136.1 million in sales by year-end. The firm also plans to launch several residential projects in 2022. Among the highlights are new projects at its Dh10 billion Mina Al Arab master-development. Besides, The InterContinental Mina Al Arab Resort is expected to commence operations this quarter, while the Anantara Mina Al Arab Hotel and Resort is to open next year. These projects will contribute to the company’s revenues in the near-term.

Policy gains

The macro-environment for real estate looks strong with the new set of reform measures by the UAE government. These include the opening up of the 10-year golden visa scheme to more categories. Also, a slew of proposals was floated to make the UAE more interesting for wealthy retirees. These initiatives will buoy more people to choose UAE as a destination.

And RAK Properties, with a Dh1.5 billion market cap, will be a primary beneficiary.