The Emirate of Ras al Khaimah (RAK) is fast emerging as the Arabian Gulf’s newest growth center. A highly diversified economy based on a mix of manufacturing, trade, tourism, real estate, and mining has driven 50% GDP growth over the last four years, and growth is expected to continue at an average of 15% per year. Minimal bureaucracy, low land and labor costs, and a host of business-friendly policies have driven a surge in investment: the RAK Free Zone has surged from 2400 companies at the end of 2006 to 4700 in mid 2008, with total investment approaching $3 billion. RAK has emerged as a major regional producer of cement, quarry products, ceramic products, and pharmaceuticals, and is moving into steel, glass, and other industrial enterprises.
RAK’s growth story looks remarkably similar to Dubai’s, only 5 years behind, and it’s often said that investing in RAK is like investing in Dubai in 2003. There are differences, though. RAK is positioning itself as a complement to Dubai, rather than a competitor, leveraging its abundant space, low costs, natural resources and spectacular mountain and ocean scenery to develop as a diversified partner to the world-famous boom town just over an hour down the road.
RAK’s economic boom is drawing a constant stream of migrants, all of them employed and qualified, to staff the emirate’s surging commercial and industrial base. The population is growing at and average of 12% a year, and growth is expected to continue at this pace for the next 5 years, driving a constant increase in demand for quality real estate. Prices for well located homes and condominiums are soaring up to 30% a year, and rental yields average 11-14% per annum. RAK’s boom is in its earliest stages: prices are still far behind those of Dubai and Abu Dhabi, drawing in many businesses and individuals that want to escape the high prices and congestion of these mature markets.
- If you missed the opportunity to invest in the early stages of Dubai’s real estate boom, Ras al Khaimah is your second chance.
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