IN THE DESERT, A THOUSAND FLOWERS BLOOM
TBY talks to Mohammed Sultan Al Qadi, Managing Director & CEO of RAK Properties, on boosting luxury developments, eco-themed mixed-use projects, and knowing when to invest in hotels.
BIOGRAPHY
Mohammed Sultan Al Qadi has 35 years’ experience in the field of management. He spent 26 years working for the Emirates Telecommunications Corporation Etisalat. He experienced several leading positions, including the General Manager of Etisalat Ras Al Khaimah and the Chairman of the board of directors of Etisalat Zanzibar “Zantel.” He led a team that managed to win a license for Etisalat to operate in Sudan (Sodetel). He also served as a board member of Arab Satellite Organization (ARABSAT) for 15 years, and he was the representative of UAE in the Arab League Permanent Committee for Telecommunications in Cairo, in addition to many other positions. He graduated from the British Royal University.What have been RAK Properties' landmark projects?
RAK Properties was established with the vision of HH Sheikh Saud bin Saqr Al Qasimi. At the time of inception we were seeking AED1 billion, but when we announced it, the demand far exceeded our expectations. Everyone wanted to participate and we reached AED56 billion. We discussed this with His Highness and we decided to aim for AED2 billion and return the extra money back to the investors. After that, we registered our company on the Security and Commodities Authority in the UAE because it is a public shareholding company. Our first projects were the Julphar Towers, where our offices are located, and Mina Al Arab, our biggest project. We started with the infrastructure of Mina Al Arab and the first phase of villas and apartments, which cost approximately AED1 billion. The plan at that time was to spend about AED10 billion on Mina Al Arab. There are about nine hotels planned along the coast together with a big mall in a specific area of the development as well. Unfortunately, by the time we were going to float a tender for these projects, the economic crisis hit in 2008. By that time, we finished and launched the first part of Mina Al Arab. Now we have around 2,500 units completed to date. Furthermore, around this time, we finished the RAK Tower development in Abu Dhabi, which was sold completely.
How do you evaluate the market for eco-themed mixed-use projects such as Mina Al Arab in RAK?
These types of properties are ideal because Ras Al Khaimah has not previously had high-quality buildings, gated communities, or mixed-used developments. So we decided to build hotels, malls, high-class villas, and medium-class apartments. The only difficulty we had was during the financial crisis. Otherwise, whatever we launched at that time was sold. The demand was high before 2008. After the crisis, we changed strategy and decided to follow market trends, which was affordable housing. Moving forward, we hope that the domestic real estate sector will continue to improve, although there are many economic difficulties and instability in the region. And yet our country is different because of the great infrastructure. We have almost 200 nationalities living peacefully, and there are no problems. We have around 10 million visitors to the UAE every year. In Ras Al Khaimah, we have a different topography from the rest of the UAE because we have the mountains, the sea, and the sand dunes. We are also close to Dubai, just 45 minutes away. All this adds value. Also, we have a well-established free trade zone authority and it attracts many investors. All this encourages us to pursue new projects.
Why have you decided to expand beyond Ras Al Khaimah?
The UAE is a unified space and the Emirates complement each other. Whatever we do in Dubai or Abu Dhabi complements Ras Al Khaimah.
What trends have you identified that will affect your approach to future projects?
Ras Al Khaimah is a rapidly growing tourist destination, which is why we need to increase the number of hotels. I wish I had started hotels eight years ago. Another factor is that high-end homes are at the point of saturation. Mid-market houses are in demand now. There is demand in the high-end market, but people want beach front properties. The majority would like to have an affordable apartment or villa, so that is what we are now taking into consideration. Also, maybe people look for the quality of shops in the area that add to the destination, like Tim Hortons, Starbucks, and so on. It adds value to your projects.
IN THE DESERT, A THOUSAND FLOWERS BLOOM
TABLE OF CONTENTS
Foreword
HH Sheikh Saud Bin Saqr Al Qasimi, Member of the Federal Supreme Council and Ruler, Ras Al Khaimah
HH Sheikh Saud Bin Saqr Al Qasimi, Member of the Federal Supreme Council and Ruler of Ras Al Khaimah, on what makes the Emirate such a great place to visit, do business, and invest.
read articleInterview
HH Sheikh Mohammed bin Saud bin Saqr Al Qasimi, Crown Prince, Ras Al Khaimah
TBY talks to HH Sheikh Mohammed bin Saud bin Saqr Al Qasimi, Crown Prince of Ras Al Khaimah, on the fundamentals behind the Emirate's strong growth and the work that goes into improving the economic outlook for the next generation.
read articleFocus: India Relations
The Indy 100
Ras Al Khaimah is already home to 6,000 Indian-owned companies operating within the Emirate's free zones. With UAE-India trade exchange looking set to reach USD100 billion in less than five years, more investors will be drawn into the Emirate's stable environment and low operating costs.<br>
read articleGuest Speaker
Masood Ahmed, Director of the Middle East and Central Asia Department, IMF
TBY talks to Masood Ahmed, Director of the Middle East and Central Asia Department at the IMF, on how the UAE is balancing public spending amid low oil prices and reaping the benefits of a diversification drive.
read articleInterview
HH Sheikh Ahmad bin Saqr Al Qasimi, Chairman, RAK Free Trade Zone (RAK FTZ) & RAKIA
TBY talks to HH Sheikh Ahmad bin Saqr Al Qasimi, Chairman of the RAK Free Trade Zone (RAK FTZ) & RAKIA, on the establishment of the free zone, the benefits of operating in the zone, and attracting international clients.
read articleFocus: Free Zones
Strong pillars
If diversification is the mantra, economic stability is the endgame. RAK Free Trade Zone (RAK FTZ) embodies that drive, offering bargain prices for companies to set up within its borders. Over the years it has worked hard to attract a melting pot of businesses from a widening pool of investors.
read articleFocus: SME's
The Best Things Come in Small Packages
With loan defaults of up to US1.7 billion in the UAE and skip cases well documented, the challenge for the RAK government is to stimulate appropriate financing for the SME segment, boosting the economy with a flow of capital while making the segment more attractive for investors and entrepreneurs alike.
read articleInterview
Richard Menezes, Vice Chairman & Managing Director, Utico
TBY talks to Richard Menezes, Vice Chairman & Managing Director of Utico, on what the first private joint venture in the Middle East means for the company and how it is set to transform the landscape for years to come.
read articleFocus: Solar Energy
Using the Bright Light
When it comes to clean energy solutions, Ras Al Khaimah is just as active as its neighboring Emirates. Through investment in research centers and the promotion of private investment opportunities, Ras Al Khaimah's government is focusing its efforts on engaging industry and academia to push solar into a stronger position in the energy economy.
read articleInterview
Dr. Saif M. Al Ghais, Executive Director , Environment Protection & Development Authority (EPDA)
TBY talks to Dr. Saif M. Al Ghais, Executive Director of the Environment Protection & Development Authority (EPDA), on the importance of safeguarding the environment, its biggest achievements, and its efforts to regulate growth in the industrial sector.
read articleFocus: Raw Materials
Rocking All Over The World!
The development of the Gulf would have never been possible without the rocks and cement that came from Ras Al Khaimah. The Emirate's mountains have long provided the necessary materials to support the development all of the GCC's megaprojects and icons such as Palm Jumeirah and the Burj Khalifa.
read articleFocus: Manufacturing
Solid Backbone
Manufacturing accounts for 53% of non-oil trade in Ras Al Khaimah, making it a key driver of the Emirate's economic development. Its diverse pool of manufacturers helps the market maintain its resiliency amidst a landscape of turbulent commodity prices.
read articleInterview
HE Sheikh Eng. Salem bin Sultan Al Qasimi, Chairman, Department of Civil Aviation, Ras Al Khaimah (RAKDCA)
TBY talks to HE Sheikh Eng. Salem bin Sultan Al Qasimi, Chairman of the Department of Civil Aviation, Ras Al Khaimah (RAKDCA) & Chairman of RAK International Airport, on the role of the organization and the development of aviation in RAK.
read articleFocus: Low-cost Carriers
Low-cost Hero
At its 40th year anniversary, RAK Airport has set a clear strategy to become the major hub for low-cost carriers in the Middle East. Having experienced a 36% growth in aircraft movement and a 17% rise in passenger traffic in 2015, the airport is hungry for new deals that could bring further growth in the upcoming years.
read articleFocus: Medical Tourism
The secret recipe
The rapid globalization of tourism and healthcare, the increasing dependence on technology, the unequal access to health resources, and the privatization of healthcare have led to an unprecedented growth in medical tourism. The UAE, unable to compete on price with the leading medical tourism destinations, has capitalized on quality, no queues for treatments, and English-speaking medical staff.
read articleInterview
Dr. S Gurumadhva Rao, Vice Chancellor , RAK Medical & Health Science University (RAKMHSU)
TBY talks to Dr. S Gurumadhva Rao, Vice Chancellor of the RAK Medical & Health Science University (RAKMHSU), on the main achievements of the institution over its first decade and the state of higher education in the Emirate.
read articleInterview
Prof. Hassan Hamdan Al Alkim, President , American University of Ras Al Khaimah (AURAK)
TBY talks to Prof. Hassan Hamdan Al Alkim, President of the American University of Ras Al Khaimah (AURAK), on its emphasis on quality education, its expansion plans, and attracting more universities to the Emirate.
read articleFocus: Labor Market
Earning Full Marks
One side effect of Ras Al Khaimah's efforts to further diversify its economy is the growing need for specialized skills and talented individuals. This leaves a huge opportunity for new universities to fill in the market's needs and push existing institutions to develop courses that are closely aligned with the demands of the labor market.
read articleInterview
Dr. Natasha Ridge, Executive Director , Sheikh Saud Bin Saqr Al Qasimi Foundation for Policy Research
TBY talks to Dr. Natasha Ridge, Executive Director of the Sheikh Saud Bin Saqr Al Qasimi Foundation for Policy Research, on the foundation's work in social research, applications of its findings, and upcoming projects in the pipeline.
read articleInterview
Haitham Mattar, CEO, Ras Al Khaimah Tourism Development Authority (RAK TDA)
TBY talks to Haitham Mattar, CEO of Ras Al Khaimah Tourism Development Authority (RAK TDA), on developing the Emirate's new tourism strategy, attempts to improve air connectivity, and efforts to meet its future targets.
read articleFocus: Eco-tourism
A Distinctive Combination
Ras Al Khaimah is focusing on promoting its natural assets, history, and culture, with a range of activities to showcase its authentic Arabian heritage. Investors looking into eco-tourism will most definitely benefit from the highest mountains in the UAE, expansive beaches, and desert wildlife reserve.
read article