UAE: Ras Al Khaimah

During the first three quarters of 2011, the Ras Al Khaimah (RAK) construction industry has pressed on with scheduled mixed-use development projects.

The RAK Investment Authority (RAKIA) licenced 800 new companies in the first eight months of 2011, a 31% increase from the same period last year, according to Alex Thomas, RAKIA’s general manager of marketing. Most of the new licences were for manufacturing firms, and the number of trading and transport licenses was also up, Thomas said.

Small and medium-sized enterprises (SMEs) play a growing role in RAK’s economy, enjoying government support and benefitting from continued upgrades to the local infrastructure.

From Saudi Arabia to Qatar, governments across the Gulf region are ramping up spending on building projects, with this likely to generate a host of opportunities for Ras Al Khaimah’s construction materials industry, a mainstay of the local economy.

The local tourism sector received a welcome boost on April 13 when Ras Al Khaimah’s ruler, Sheikh Saud bin Saqr Al Qasimi, issued a decree to establish a dedicated Tourism Development Authority. The body will be tasked with administering the planning, development and regulation of the emirate’s tourism industry. With knock-on effects for transport, property and retail, the sector is seen Gulf-wide as a driver of diversification and economic development.

Real estate in Ras Al Khaimah appears set to rebound from the regional downturn in the property market, with experts predicting an increase in sales and building activity, but prices seem unlikely to reach pre-economic crisis levels.