$800 Million Ras Al Khaimah Development Runs Into Big Problems.

Whilst Dubai was busy with its property boom and attracting media focus to the region, the other Emirates of the UAE decided to join in and get a piece of the action too. Ajman proved particularly successful in this area, as did some of the other Emirates such as Ras Al Khaimah. Although lacking the glamour and wealth associated with Dubai and UAE capital Abu Dhabi, the other Emirates still had a lot to offer investors. They all started to engage in large scale construction projects with the idea of building new modern cities to rival Dubai and attract some of the large amounts of investments that were flooding into the region. However just as Dubai has run into big difficulties with the world financial crisis, so have the other regions and the developers that are building there also been hard hit. And now a Dubai real estate developer has said its $800 million Ras Al Khaimah project has run into difficulties. Khoie Properties has recently admitted it is trying to find other companies to take on its La Hoya project in Ras Al Khaimah. Based on the man made island of Al Marjan, the development was planned to offer a waterfront residential and leisure destination, but now this looks unlikely to come to fruition.


The company has said the recent economic turndown has left it unable to pay for all the land, and therefore it was unable to go ahead with the project. With project financing unavailable for the project, the company says it is in negotiations with Ras Al Khaimah Investment Authority (RAKIA) to take over the entire project for it. However RAKIA has denied it is interested in taking over the project, and says whist Khoie Properties has approached it in regards to handing over the project, RAKIA says it currently has no interest in doing so. RAKIA says its current focus rests more with ensuring investors get don’t lose money on the project; especially given Khoie Properties has yet to spend all of the money it has received from investors. Whilst it is good to see RAKIA safeguarding investor rights, one does have to worry if this is just the start of a much larger problem.

By: Mark1234

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