Business News
Ras Al Khaimah waterfront developments lure global investors
Sep
Ras Al Khaimah is fast-emerging as one of the preferred investment destinations for investors globally in addition to evolving as a leading tourism destination for families.
In fact, the emirate’s surge as an investment destination reflects the success of the government’s vision for economic diversification and focus on strengthening tourism and hospitality sectors.
An in-depth hotel investment market study commissioned by Marjan, the master-developer of freehold properties in Ras Al Khaimah, has highlighted the strong investment potential offered by the emirate for hotel and hospitality operations.
Comparing the hospitality sector performance and potential of Ras Al Khaimah against 23 international waterfront leisure destinations from across the world, the destination analysis underlines the tremendous potential that the emirate offers for new hotel and hospitality operations to support the Destination Strategy envisioned by the leadership.
The emirate’s surge as an investment destination reflects the success of the government’s vision for economic diversification and focus on strengthening tourism and hospitality sectors.
The parameters studied include the quality of infrastructure, political risk, and quality of climate, as well as the leisure facilities available that attract visitors. As one of the fastest growing tourism hubs in the region, the returns for hotel investors offered by Ras Al Khaimah is among the world’s highest.
The consistent growth in demand for hotel rooms — led by the increase in tourist arrivals — is also driving need for new hotel inventory, with the hotel pipeline expected to grow in the next three years. By 2022, the emirate is projected to have a hotel inventory that is greater than Nice, Ibiza and Cannes.
With an Internal Rate of Return (IRR) of 11 to 12 per cent and yields of 9 to 10 per cent, Ras Al Khaimah offers stable value for operators; the IRR accrued from the emirate is higher than most other markets.
As a business investment destination, the emirate offers international investors an array of benefits such as 100 per cent foreign ownership, and 100 per cent repatriation of capital and profits within Marjan’s destinations. Other incentives include no corporate tax and zero personal tax. Additionally, there are no foreign exchange contracts reducing extra costs and any uncertainties.
Currently, the emirate has 5,900 hotel rooms and 6,200 hotel keys are under development. With 64 km of beach, three airports within 75 km and attractions such as the world’s longest zipline, Ras Al Khaimah is firmly positioned to be a hub for tourism and inward investments.
—The writer is CEO of Marjan