Ras Al Khaimah targets property and tourism for economic growth (page 2 of 2)

Although it plans to open new routes and buy more planes over the next few years, the destinations are still largely those for the labour market.

Property investors

With so many property investors pouring in - many on the back of the price rises experienced by Dubai - the question is, are those people buying to live, let or use as a holiday home. The fear is that too many people buying property for use as a holiday home will have a long-term negative affect, because although property developers will hit their numbers, local businesses will not have enough sustainable trade. And that will then hurt local employment prospects.

Chris Picken, vice president of sales and marketing at developer Khoie - which is building properties in La Hoya Bay - said many people buying in RAK do see it as an investment opportunity or holiday home, but accepted that is not ideal long term. 'In an ideal world that is not what the region would want. Initially though, you have to entice the people to come here. You've got to deliver property, education and healthcare so that individuals will feel relaxed in an environment.'

It means the emirate must also work hard to attract businesses, and with office space both at a premium financially and physically in Dubai, Ras Al Khaimah has a good opportunity. Picken pointed to the favourable tax incentives and the ease with which a business can be set up in the region. But he said housing staff has been an issue. 'The issue has always been where do I house my staff? That is being [improved] with the developments in Al Hamra, The Cove with its villas overlooking the sea, Mina Al Arab and La Hoya Bay.'

A Dubai suburb

In the UAE, the Sharjah roads are a well-known bottle-neck between RAK and Dubai. If traffic flow is improved, would that mean more people would see the emirate as a suburb where they live, driving to Dubai everyday to work? Mark Morris Jones, a director at CB Richard Ellis, felt that provided the right measures were put in place, even with free-flowing traffic it would not face that problem.

'Ras Al Khaimah has its own character that is dictated in a large part by the natural landscape and people that you have here. And those two things together are far too strong to let that happen. There's going to be a definitive point of difference and that's what they have to concentrate on and perpetuate. And what it will mean is that RAK will become an independent emirate. It will not become a suburb of anything.'

The immediate future for Ras Al Khaimah in many ways follows that of Dubai - a massive building programme that will see the emirate clogged with all that comes with so many construction projects. But over the course of the next 10 years, the redevelopment will put it in good stead as a good place to live and an attractive tourist destination.

See also:
$2.2bn RAK hospitality training zone to improve industry service
Should investors buy property in Ras Al Khaimah?