Al Marjan Island
Quick Facts on Al Marjan Island:
· Al Marjan, a man-made island located in Ras Al Khaimah- UAE. The island covers an area of 2.7 million square meters (SqM) of reclaimed land, extending 4.5 kilometres into the pristine waters of the Arabian Gulf.
· Has 23 kilometres of water-frontage
· 7 kms of white, sandy beaches
· 6,500 planned residential units
· 8,000 planned hotel rooms
· 400 rooms wellness retreats
· 600 holiday villas
· It is located just 45 minutes from Dubai International Airport, 35 minutes from Sharjah International Airport and 25 minutes from Ras Al Khaimah International Airport
Al Marjan Island, a mixed use development project administered by Al Marjan Island LLC, who are master developers of the project under the able stewardship of Arch. Abdullah Rashed Al Abdooli, Managing Director
The four islands of Al Marjan are home to a 3 world class hospitality properties (Rixos, Double Tree by Hilton & Marjan Island Resort & Spa (managed by Accor) and forthcoming developments like hotels, villas, apartments, well-being centres, community facilities, a tourist port, restaurants, shops and lifestyle hotspots. Propensity to spend of those visiting the Island is high and it is targeted as a destination for Leisure, Luxury & Lifestyle.
The strategic location of the Island makes it an ideal investment destination for Indian investors; paired with the freehold facility that makes investment not only secure (as the title ownership of the property is with the investor), but also TAX FREE! Additionally, there is no restriction on the repatriation of Capital and Profits. The success of the Island project so far is testimony to the support and advise extended by Al Marjan Island LLC to its investors and developers.
Al Marjan Island LLC works as a partner with its investors and other stakeholders thereby pre-empting most possible causes for delays and postponements. Development of projects within a stipulated period of time ensures that the island as a whole reaches set milestones thereby delivering time-bound success and growth to investors, owners. This has been a bedrock of genuine investors making the Island their preferred investment destination.
Additionally, Ras Al-Khaimah Tourism Development Authority (RAK TDA) has chalked out an ambitious plan to attract one million visitors to Ras Al-Khaimah by the end of 2018, aiming to boost the tourism revenues to AED 4 billion and, Al Marjan Island is gearing up to be a key pillar in realising this vision. The RAK TDA new strategic plan targets a more diversified tourism mix that ensures more demand stability and reduces exposure associated with a small number of markets. It expects 10-15% growth in the number of tourists from India.
Real estate Investment opportunities in Al Marjan Island:
· About 1.15 mn SqM of area is available for investors, developers to construct, develop different categories of Real Estate; from Hospitality to Residential to Retail and/or Commercial projects
· According to a recent study by Colliers International, investments made in Al Marjan Island are delivering a 16 odd percent Equity IRR, which is on par with other similar, established projects in the region
· The high return on investments is due to the affordable land prices, competitive operational costs, and subsequent high levels of profitability. This despite the premium attached to waterfront properties
Hospitality
· Currently, there are 3 operational resorts in Al Marjan Island
o DoubleTree by Hilton with around 450keys
o Rixos Bab Al Bahar with around 650keys
o Marjan island resort &spa (managed by Accor) with around 350keys
· Hotel occupancy is on an average 65-75% during the week and during weekends can go full
· Investors are therefore receiving consistent flow of revenues and growth
· New investors and operators can capitalize on existing strengths and performance
· New Projects:
o Due to its unparalleled success on the Island, DoubleTree Hotel has augmented capacity from 450 to 650 keys after acquiring the adjoining property
o 4 developments under different stages of design planning and/or construction are expected to add another additional 1,000 odd room keys
o The island has entered into a strategic partnerships, with Mövenpick Hotels & Resorts to launch its first resort in Ras Al Khaimah, and another with SuperCasa to develop a 5-star hotel on a 75,000 sq.ft. plot on the island.
· Al Marjan Island has great potential to establish itself as the favourite destination for all
Residential
· 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
· AMI has around residential units that are nearing completion and are expected to be handed over in the near future
· Most Al Marjan’s residents will have a sea view and all of them will have direct beach access, with around 28% of them having beachfront settings.
Benefits for Real Estate Developers and Investors
· 0% Personal Tax
· 0% Income Tax
· 100% Foreign Ownership
· No Foreign Exchange Controls
· 100% Repatriation of Capital and Profits
· 100% Ready Infrastructure
· 100% Availability of Utilities Services
· Availability of Labour Accommodation
· Regulated by Ras Al Khaimah Real Estate Regulatory Authority (RERA)
· Residency Visa for Homeowners
Ras Al-Khaimah’s competitiveness as an investment destination
· RAK enjoys a diversified economy in which no single segment exceeds more than 20% of GDP. RAK's major industries are tourism, commodity trading and manufacturing. Thereby giving a boost to real estate development opportunities
· It is not dependent on Oil as a driver of the Economy
· Currently RAK is growing at 4.5% and has maintained this growth rate in 6 out of the last 8 years- Source: RAK’s Statistical Year Book
· Due to its stability, affordability, and lack of reliance on oil, RAK has the potential to attract investors that are averse to taking risk in a volatile market