Dubai Investments signed an agreement with Ras Al Khaimah-based master developer Marjan to acquire land to develop a Dh1 billion ($272.2 million) mixed-use waterfront destination on Al Marjan Island.
The project will include a beachfront resort, serviced apartments and villas plus residential buildings, retail, food and beverage outlets along with other recreational amenities, the listed investment holding company said in a statement to the Dubai Financial Market, where its shares are traded.
The agreement was signed by Khalid bin Kalban, vice chairman and chief executive of Dubai Investments, and Abdulla Al Abdooli, chief executive of Marjan.
“Ras Al Khaimah is fast gaining traction as a hub for tourism in the region, with the emirate’s government channelling resources and investing in a range of wellness initiatives to leverage its natural assets,” Mr bin Kalban said.
“Catering to the growing demand for such projects in Ras Al Khaimah and in line with strengthening Dubai Investments’ real estate portfolio with the addition of more high-end hospitality projects, the company is optimistic [that] this new project will further accentuate the well-being appeal.”
The UAE property market, which softened due to a three-year oil price slump that began in 2014 and oversupply concerns, is showing signs of a recovery amid an accelerated Covid-19 vaccination campaign, Expo 2020 Dubai and a rebounding economy.
Property prices in the UAE have stabilised in 2021 as the economy recovers from the coronavirus pandemic-induced slowdown and government initiatives to spur growth.
Economic support measures and government initiatives – such as residency permits for retirees and remote workers, as well as the expansion of the 10-year golden visa programme to attract foreign professionals to the UAE – have helped to improve investor sentiment.
Situated on the View Island within Al Marjan Island, the new mixed-use project will offer a private enclave with waterfront views.
“Al Marjan Island has become a preferred hub for visitors and investors from around the globe and we are looking forward to expanding our offering through world-class projects,” Mr Al Abdooli said.
“This will further support Ras Al Khaimah’s positioning as a vibrant tourism, hospitality and residential destination.”
Dubai’s sovereign wealth fund, the Investment Corporation of Dubai, holds an 11.54 per cent stake in Dubai Investments.
Set up in 1995, Dubai Investments holds stakes in companies involved in a range of sectors including property, industrial, financial services, health care and education.
It owns businesses such as Dubai Investments Park, venture capital company Masharie, Al Mal Capital and district cooling company Emicool.
“We just finished the master plan for a real estate project in Murjan Island. It will have 170 villas, a hotel, serviced apartments and retail units. Demand for such projects is very high in Ras Al Khaimah,” Mr bin Kalban said in an interview in May.
The company plans to sell Dh800m worth of residential units in 2021.
Dubai Investments is also delivering a Dh500m project in Fujairah with shopping malls, residential and office towers and a hotel, as well as a Dh3bn mixed-use project in Mirdif with more than 1,000 residential units, an office building and a hotel.
The company will finance new deals through a mix of bank loans and its own cash, Mr bin Kalban said in May.