united arab emirates (uae) off plan property investment and opportunities

8/14/2019 United Arab Emirates (UAE) Off Plan Property Investment and Opportunities

http://slidepdf.com/reader/full/united-arab-emirates-uae-off-plan-property-investment-and-opportunities 1/8

Unitedarab emirates

Ras al-KhaimahOverview

n t a x ha v n n High Gd P gro w h

n $25 billion ir c in v s m n

n em rging ourism s ina ion

n Y ar-roun r n al r urns

21 tJ 2007



+ 44 (0) 1273 627 900. ad 2 t. o. k

2 Overview < rAK


http://slidepdf.com/reader/full/united-arab-emirates-uae-off-plan-property-investment-and-opportunities 3/8Overview < rAK 3

Population: 250,000 Area: 1,680 km²Coastline: 40km

Climate: High temperature and humidity in the summer;moderate in the winter

Languages: Arabic (o cial), English, Hindi, Urdu and FarsiReligion: Islam, although other religions are accepted privately Government type: A member o a ederal constitutional monarchy

(the United Arab Emirates)Local time: GM +4Capital: Ras al-KhaimahCurrency: Dirham ( xed rate: 1US$ = 3.67 Dhs)

Ras al-Khaimah at a glance

rAs Al-KhAimAh



+ 44 (0) 1273 627 900. ad 2 t. o. k

4 Overview < rAK

Why Ras al-Khaimah?BOOming ecOnOmy

With an 18% growth in GDP in 2005 1, Ras al-Khaimah is growing ata pace to match that o Dubai ve years ago. Strong economic growth,combined with a business- riendly government means the economy isexpected to continue strengthening. Tis has a very positive e ect onproperty capital growth.

TAx reeRas al-Khaimah’s ree trade zone has zero tax on income and capital

gains, and no property trans er or value-added tax2. It also allows 100%expatriate property ownership3. Tis makes it an ideal environment orany investor.

renTAl pOTenTiAl With a growing economy and tourism sector, Ras al-Khaimah hasa signi cant rental potential or short- and long-term lets. Withrental prices rising at a ast rate in Dubai, both tenants and touristare looking or more a ordable options. As a new market, Rasal-Khaimah is an attractive alternative – and with holiday

accommodation occupancy rates already at a impressive 80%, thisemirate will just keep getting hotter4.

impressive Oreign invesTmenTTe con dence o international businesses in Ras al-Khaimah isrefected by $25 billion o oreign and domestic direct investment since20005. Te government had an excellent response to the incentivesencouraging investment. Tis business con dence will soon translateinto increased employment opportunities, and with jobs comes thedemand or quality accommodation to rent and to buy.

grOwing TOurism secTOrTe government o Ras al-Khaimah is committed to establishing itsel as a strong tourism destination, which saw a growth rate in visitors o 47% between 2001 and 20056. Its coastal location less than an hour’sdrive rom Dubai international airport places it in an ideal positionto grow its tourism base as tourists look or the Dubai experiencebut in a less overdeveloped setting. New attractions including theVirgin Spaceport, the Jebel Jais Mountain Resort, the WOW RAK theme park and the Al Marjan Underwater Park are being built.

1. ra a K a a e o o & st at O t ook, w o t at o d t o o ... 2007, g oba r a , g oba i t t ho tt :// 1.za a. o / a o t /oba /20070205_g oba _

2. tt :// . ak tz. o / / ak_ at . ? d=23. tt :// . ak tz. o / / t . ? d=64. tt :// .a o. o /83381. t a d tt :// o t .t o . o. k/to / _a d_ t / o

o a /a t 1617595.5. tt ://a . . o /b /D o t/10132602. t6. ra a K a a e o o & st at O t ook, w o t at o d t o o ...

2007, g oba r a , g oba i t t ho tt :// 1.za a. o / a o t/ oba /20070205_g oba _

T at boa t f t ad t o a a t t

p a d at a b d to ra a K a a



cApiTAl grOwTh pOTenTiAl With a growing economy, a young population working in new industries and a developing tourism sector, Ras al-Khaimah has greatpotential or capital growth. Remember how Dubai has developedover the last decade? Ras al-Khaimah is ollowing the same trend.Entering this new market now with low entry prices points towardsgood capital returns as the economy develops, as suggested by theinternational investment specialists Ernst & Young7.

pOliTicAlly sTABleRas al-Khaimah has a stable political structure. As a member o theUAE since 1972, the emirate has been strengthened economically andpolitically. Te emirate has been led by Sheikh Saqr bin Mohammed Al Qasimi since 1948. His son, Sheikh Saud bin Saqr Al Qasimi wasappointed Crown Prince and Deputy Ruler in June 2003, and hasbeen responsible or the development o a strong business- riendly economic environment.8

Oil-inDepenDenT ecOnOmyOnly 3% o Ras al-Khaimah’s economy is based on oil, makingit unique among the other emirates o the UAE9. With its ownmicroclimate, it is the most ertile emirate, so a signi cant part o itseconomy comes rom agriculture, as well as dairy production, shingand mineral manu acturing. Tere is also a growing tourism sector.

ciTy O The uTureRas al-Khaimah has been described as one o the top ten North A rican and Middle Eastern cities o the uture, in its ability to welcome oreign investment and to plan ambitious developments or

the uture. Add to this the emirate’s excellent demographics with ayoung population, keen to drive the economy, increasing the demand

or quality accommodation. Getting into this market early means youcan make the most o the returns, as the emirate’s economy develops.

cheAper ThAn DuBAiRas al-Khaimah has the advantages o Dubai, with its excellentdevelopments and amenities in an emerging market, but at signi cantly lower prices, which allow plenty o room or growth. While Dubai was the pioneer ve years ago, Ras al-Khaimah has looked at Dubai’sexperience and taken note o the good parts while disregarding the lessgood parts. For example, the government is concerned with balancingthe authenticity o the emirate with development, so it is unlikely tobecome overdeveloped like Dubai.

d

d

7. tt :// . t o . o / t o / o t _a a / at _d a .j ? _d=1003550091

8. D t at o ra a K a a , ra a K a a i t t A t o t , 99. ra a K a a e o o & st at O t ook, w o t at o d t o o ...

2007, g oba r a , g oba i t t ho tt :// 1.za a. o / a o t /oba /20070205_g oba _101041. d

10. tt :// . d a az . o / / to . /a d/1858/m dd _ea t ___no t _A a _c tt _ t _2006_07. t

11. ra a K a a e o o & st at O t ook, w o t at o d t o o ... 2007, g oba r a , g oba i t t ho tt :// 1.za a. o / a o t /

oba /20070205_g oba _101041. d

coa t oad to t t

mo ta o t d t t o ra a K a a



+ 44 (0) 1273 627 900. ad 2 t. o. k

6 Overview < rAK

Tis emirate has o ten been compared to Dubai ve yearsago. However, Dubai today is very congested with 100 storey buildings and a high premium to pay on property. Tere isless large-scale development, like skyscrapers, in Ras al-Khaimah,due to a stronger emphasis by the government on maintainingthe authenticity o the emirate and environmental standards.Interest is shi ting rom Dubai to Ras al-Khaimah as it is morea ordable and can also cater or the demand – a classic “hotspotoverfow” story.

p d t a a a

Economic overviewRas al-Khaimah, the northernmost emirate o the UAE, combinesvast reserves o raw materials anda strong strategic location as a key port on the Arabian Gul and the Middle East. As the most ertileemirate o the UAE, it also serves as a major agricultural hub.

Te emirate’s economic growth is driven by the politically-sa esheikdom and increasingly orward-looking and stable governmentthat are keen to attract inward investment. Incentives such asthe Free Trade Zone 16 and 0% income, corporate and capitalgains tax 17 have recently been introduced to increase interest inthe emirate. Due to these, Ras al-Khaimah has to date receivedsome $25 billion o oreign and domestic direct investment18. Already, holiday accommodation occupancy rates in Ras al-

Khaimah are a high 80% and according toOxford BusinessGroup , the emirate is on its way to becoming the strongesttourism destination o the UAE20. Attractions such as the VirginSpaceport are being built to add uniqueness to the location21.

“Ras al-Khaimah is on its way to becoming thestrongest tourism destination of UAE”

p d t K a a b Za d A na a a o t uAe, t d no b 2004

Te emirate has a booming economy – in 2005 its gross domesticproduct grew by 18% 12. Future economic growth is supportedand sustained by a young population 13 that puts the emirate inan advantageous position in relation to other members o theUAE. Furthermore, the economy is, unusually or the UAE,completely independent of oil 14. Tis means that should oilshocks occur, Ras al-Khaimah will not bear the burden.

“Te government is in the process of developing

Ras al-Khaimah as a manufacturing, commercialand recreational centre through policies aimed atpromoting the country internationally”

PriceWaterhouseCoopers

Ox ord Business Group

With high projected capital growth in the coming years22,

rapidly increasing FDI and the superb tax incentives, Rasal-Khaimah makes or a very attractive investment opportunity.



12. ra a K a a e o o & st at O t ook, w o t at o d t o o ...b a 2007, g oba r a , g oba i t t hott :// 1.za a. o / /20070205_g oba _01041. d13. ib d14. ib d15. p wat o coo a d rAK go t ‘D t at o ra a K a a –

O o t b o t a d ato a o k’16. tt :// . ak tz. o / / ak_ at . ? d=217. ib d.18. tt ://a . . o /b /D o t/10132602. t19. O a p o t p o o a tt 04/01/07

s k sa d B saq A Qa o ra a K a a

Political overview A constitutional monarchy, Ras al-Khaimah is one o the sevenemirates that orm a ederation, the United Arab Emirates(UAE). Te UAE is known for its strong internal stability and is considered one of the most liberal countries in the Gulf , with other cultures and belie s generally tolerated23.

Te political system is two-tiered, consisting o a ederalgovernment and local government structure or each emirate.

Te ederal government is led by the Supreme Council o Rulers,

comprised o the ruler o each emirate. Sheikh Khali a bin Zayedbin Sultan Al Nahayan, ruler o Abu Dhabi, has been Presidentsince November 200424. Te vice president and prime minister isSheikh Maktoum bin Rashid Al Maktoum, ruler o Dubai, whotook o ce in January 200625.

Tere is a council o ministers headed by the prime minister, whocan be drawn rom any o the emirates. Te council is guided by a 40-member Federal National Council, with members drawn

rom each emirate in proportion to its population.

Ras al-Khaimah is headed by Sheikh Saqr bin Mohammed AlQasimi who has been the ruler o Ras al-Khaimah since 1948.His son, Sheikh Saud bin Saqr Al Qasimi was appointed crown prince and deputy ruler in June 2003, and has beenresponsible for the development of a strong business-friendly economic environment , while setting up Ras al-Khaimah-basedbusinesses in over 130 countries around the world26.

T ad t o a d od t o b d

20. tt :// .a o. o /83381. t a d tt :// o t .t o . o. k/to / _a d_ t / o t /o a /a t 1617595.

21. tt :// 1.za a. o / a o t / oba /20070205_g oba _101041. d22. tt :// . ak.a / o ta / a ?_ a d=33,84545&_dad= o ta &_ a=pOrTAl&url_ t o =

tt %3A%2 %2 a o t t. ak.a %2 t t%2 o %2 d o t%2 do t %2 a %2_ ak015247.23. tt :// .bb . o. k/1/ / o d/ dd _ a t/ o t _ of /737620. t24. tt :// . k d a.o / k /K a a_b _Za d_A _na a a25. tt :// . k d a.o / k /mo a d_b _ra d_A _makto26. D t at o ra a K a a , 9



+ 44 (0) 1273 627 900. ad 2 t. o. k

8 O i AK

10 facts about Ras al-KhaimahRas al-Khaimah means ‘top o the tent’ in Arabic. Tis isbe due to its geographic location as the most northern o the emirates.

One o the most popular traditional breads iskhammer , which made o a four paste mixed with water and dates.Te mixture is le t to rise or a night be ore being baked the

ollowing morning.

Ras al-Khaimah will soon be home to a 12km ski slope.

Guests are always greeted with traditional co ee as a gesture o respect and warm welcome.

Te ancient tradition o camel racing has recently been revived.Tere is a national camel racing estival every February, watched and sponsored by the Sheihk rulers.

Men all over the country nearly all wear the same uni ed dresscalled Kandurah. Te head cover called Ghottrah is usually supported by a black or whitekofyyahor eqal . Men wearsandals on most occasions.

A traditional dance calledRazee al-Shohoohis a poetic, musicand dance per ormance that can involve up to seventy peopleat one time.

Boat racing celebrates the great maritime traditions o theregion, with some boats up to 20 metres in length rowed by up to 100 oarsman. Boat races are held on special occasionsthroughout the year.

Last February, 430 people rom 38 countries completedthe RAK international hal marathon, in temperatures thathit 72ºC.

4

4

4

4

4

4

4

4

4

contact Us +44 (0) 1273 627 900 . ad 2 t. o. k o@ ad 2 t

united arab emirates (uae) off plan property investment and opportunities

Documents