Al Marjan Island – RAK’s Answer to Dubai’s Palm Jumeirah and a True Investor Haven
Al Marjan Island in Ras Al Khaimah is a truly globally connected destination and the jewel of Ras Al Khaimah’s coast line. Stretching 4.5 kilometres into the Arabian Gulf, Al Marjan Islands is a collection of four pristine man-made islands and a truly luxurious destination, set against the picturesque backdrop of the Arabian Peninsula, and enclosed by the Yanis and Jais Mountains, the UAE’s tallest peak.
The island has 2.7 square kilometres of reclaimed land, 7.8 kilometres of pristine beaches, 23 kilometres of waterfront 6,500 planned residential units, 8,000 planned hotel rooms, 400 rooms for wellness retreats & 600 holiday villas, with each island featuring luxurious hospitality and residential living throughout to accommodate children, adults, residents and tourists. Al Marjan has vibrant promenade’s, diversified luxury hotels, pristine sandy beaches, a waterfront corniche, impressive high-quality amenities such as public parks, schools, medi-clinics, mosques, premium restaurants and entertainment options, wellness resorts, private beach clubs, a Marina & Yacht Club and retail outlets and malls.
As an investment destination, Al Marjan Island offers endless opportunities and benefits. It is the project of choice for property investors and developers who are seeking exceptional accommodations and leisure facilities that provide unique lifestyle choices and opportunities. Residential units are achieving ROI’s up to 12% annually, with hotel ROI’s as high as 17%, with many advantageous benefits to investing in RAK – 0% Personal & 0% Income Taxes, 100% Foreign Ownership, 100% repatriation of capital and profits, no foreign exchange contracts, to name just a few. All the ingredients are there for continual success in the ever-growing tourism market, with Official Government support and investment initiatives and schemes. RAKTDA recently launched its 3-year tourism strategy “Destination Ras Al Khaimah 2019”, which set out a new agenda to ensure the long-term success and viability of this rising sector. Its strategic targets include a total of 1.1 million visitors, AED 2.4 billion in tourism revenues and 15,000 employees in the tourism and hospitality sector by 2019. The development of mega projects will further increase RAK’s visibility on the global map too. The strategy will build on Ras Al Khaimah’s current offerings to emphasize high quality and unique experiences with critical investment in core infrastructure projects in the following key segments: adventure, culture and heritage, wellness and medical tourism, cruise, weddings, meetings and incentives and festivals / events. Beyond 2019, RAKTDA aims to reach an estimated 2.9 million visitors by 2025, which will require an additional 15,000 hotel rooms to cope with the huge increase in tourist demand. This impact will put Ras Al Khaimah at the same tourism level as Oman, Cyprus and Costa Rica – entire countries!
The stats up to now for Ras Al Khaimah’s booming tourism industry are already impressive enough and show a considerable amount of growth over the last few years. The figures continue to rise and rise, with no sign of slowing down. RAK’s tourism industry has witnessed tremendous growth of 8.7% between 2014 – 2017, surpassing that of the UAE – which grew only 5.7% as a whole in the same period. There was a 10.9% increase in visitors in 2016 from the previous year, with an increase in guest stay and a 5.5% increase in hotel RevPAR and continued growth from key source markets including a 35% increase in UK visitors, 28% increase from India and 25% increase from Germany. Tourist arrivals to RAK have been driven by increasing demand for beach resorts, contributing >80% in 2016 by International visitors. Al Marjan Island is a key factor in this.
Al Marjan island is home to a number of high-end beach hotels & has the highest hotel occupancy rates in RAK, as well as the highest average daily room rates. Al Marjan accounts for 78% of upcoming hotel room supply in RAK and occupancy levels on Al Marjan in 2016 were 75% - superior to RAK’s overall hotel market. Russia/CIS, Germany & the UK are major source markets in RAK, with higher than average length of stays on Al Marjan Island.
Quite simply, Al Marjan Island is a much sought-after destination for residents, tourists and investors and a place that will soon become a destination of choice for all. RAK is emerging as a major hub for hotel investment with a projected pipeline of 10,200 keys – the most aggressive amongst all the UAE, so invest now on al Marjan Island, at the start of something unique, something luxurious and something with a huge value proposition long into the future.