Raking up the projects
Ras Al Khaimah has said that it is planning to spend heavily on improving infrastructure. The move may provide a big boost to RAK’s strained property sector.
February 17, 2010 4:58 by Aarti Nagraj
Two weeks back, the emirate’s biggest property developer, RAK Properties, announced that its full-year profit fell from AED379.4 million in 2008, to AED170 million in 2009, a drop of 55 percent.
And with prices falling, ambitious projects announced two years back are now struggling to take form.
In October last year, RAK Properties said it would halt part of its AED12 billion Mina Al Arab project until market conditions improve. ”We were dreaming of having 11 hotels; now we will go with maybe four,” Mohammed Sultan al-Qathi, the developer’s CEO said. A marina and a shopping center would also be put on hold for the present, he said.
Bollywood actor Shah Rukh Khan also confirmed last week that the AED8 billion Shah Rukh Khan Boulevard, a luxury property development in RAK, has been put on hold. “To be honest, it kind of fell through at that point in time,” Khan told Emirates Business, adding that he would still like to be a part of the project.
“Because I would like it to be; and times will change and become better, so whatever service I can provide I will offer,” he said. “It’s never always about just the money part that you make – I think it’s just one of those things we never foresaw. Nobody foresaw. I would like to continue on the project, but it is definitely on hold right now.”
The project was announced amidst much hype in October 2008. “It’s not just like endorsing some other product. It’s more than that,” Khan said at the time.