Ras Al Khaimah announces creation of 'RAK Properties'

The company's founders, including the Government of Ras Al Khaimah, will hold 45 per cent of the company's share capital, while the remaining 55 per cent will be offered in an initial public offering, details of which will be announced shortly, with the Public Offering open from March 30 to April 12, 2005. With a remit to develop exciting new luxury communities, RAK Properties will offer substantial incentives to outside investors.

"In seeking to support economic growth in the UAE and Ras Al Khaimah, RAK Properties will maximise shareholder value by developing coastal and inland Ras Al Khaimah through land, communities and mortgage facilities," said the IDO's Chief Executive, Dr. Izzat Dajani.

To signal its commitment to the new company, the Government of Ras Al Khaimah is providing 72 hectares of free land for the development of the creek-side Mangrove Island Project, as well as a further 150 hectares in the Khor Qurm beach area and the new Emirates Highway for the second phase of expansion. RAK Properties will develop certain components of these projects, and will also sell or lease rights to outside investors to oversee other components.

In the long run, RAK Properties also envisages the creation of a finance / mortgage subsidiary to help potential home-buyers purchase their property.

Ras Al Khaimah, the northernmost and fourth largest emirate in UAE, has been making a name for itself under the leadership of the Crown Prince & Deputy Ruler HH Sheikh Saud bin Saqr Al Qasimi, whose ambitious plans to turn it into the ideal getaway are buttressed by new road, free zone, port and airport expansion.

Incorporated in 2000, the RAK Free Trade Zone has licensed over 400 companies from 33 countries. Saqr Port is undergoing an AED165 million upgrade to increase cement and bulk handling capacity while Ras Al Khaimah International Airport is witnessing enhanced activity. The new Emirates Highway, planned to bring travel times to Dubai down to under 50 minutes, is scheduled for completion springing the second half of 2005.

The first freehold property development in the emirate, the AED1 billion Al Hamra Village, already sold off a large number of units only months after its launch, is scheduled to be completed in 2006. Some 1,200 residential units, from studios to luxury villas, built by the Al Hamra Property Development Company, have attracted investors both locally and internationally driven primarily by a cost effective and quality product.

Investors will be invited to share the AED2.7 billion initial cost of developing Mangrove Island's condominiums and town-houses, entertainment and retail facilities, eco-tourism zone and marina.