Rasl Al Khaima Project

RAS AL KHAIMAH SURVEY REPORT December

25, 2014

A r i j i t D a s ( M U M )

RAS AL KHAIMAH CITY: OVERVIEW

Ras Al Khaimah is located in the Arabian Gulf bordering Umm Al Quwain, Sharjah & Fujairah

and has long borders with Oman on the Southern & North Eastern sides. The literal meaning of

the name in English is “Top of the Tent”. The city is divided in to two main sections, Old Ras Al

Khaimah & Nakheel, on either side of the creek. On 10th

February 1972, under the leadership of

Sheikh Saqr bin Mohammad al-Qassimi, Ras-al-Khaimah joined the U.A.E. and is currently

ruled by Sheikh Saud bin Saqr al Qasimi.

According to the survey of Municipality Department, the Emirate of Ras Al Khaimah is situated

in an area of 2478 square kms.

The climatic condition of Ras Al Khaimah is very similar to other emirates in U.A.E.

47.3

5.1

100

5

Maximum Temp. Minimum Temp. Max. Humidity Min. Humidity

Climate Conditions

Maximum Temp. Minimum Temp. Max. Humidity Min. Humidity


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According to the Economic Department of Ras Al Khaimah, the current estimated population is

of 4, 80,000. The rural & urban population of Ras-al-Khaimah is of 45.89% & 54.11%

respectively.

In 2014, the growth in population compared to 2013 is by 10%.

62%

38%

Gender Chart

Male Female

410000

420000

430000

440000

450000

460000

470000

480000

480000

438000

Population Growth

Population 2014 Population 2013


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As of 2013 the estimated citizens of Ras-al-Khaimah is of 1, 03,000 out of the total population.

When we look at the estimation by age group of the local population or the citizens we see that

the people ranging from 0-14 age has the maximum population.

The percentage of labor force to population is around 48.71% with 64.55% out of that being

male’s & 22.5% being females.

All the above information is gathered from Economic Department of Ras-al-Khaimah.

24%

76%

Demography

Citizens Expatriates

37801

37698

17922

9579

Age 0 to 14

Age 15 to 29

Age 30 to 49

Age 50 to 80+

Age Group of Citizens

Age 0 to 14 Age 15 to 29 Age 30 to 49 Age 50 to 80+


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Income Sources:

The main contributors to its economy are:

Real Estate – There are lots of residential areas, offices & commercial buildings build in

Ras-al-Khaimah. There are total of 5,398 building constructions, distributed below:

Tourism – Ras-al-Khaimah is improving in its tourism sector. It is a home to five star

hotels and beach resorts which includes Hilton, Rotana or Banyan Tree. It has a number

of 4 and 3 star accommodations as well. In September 2010, first water park Ice Land

was opened to offer leisure opportunity for both residents and visitors and more new

tourism projects are under construction.

Tourism Info.

No.of Hotels 16

No.of Rooms 3393

No.of Beds 4878

No.of Guests* 1273

No.of Nights* 928

Avg. guests/night 0.7

Rooms Occup.% 76%

Note: *Estimated numbers in thousand as per the Economic department.

75%

16%

2% 1% 2% 4%

Constructions

Villas Annex Commercial Build.

Mosques Government Build Others


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Building Materials – The UAE’s first cement company was opened in Ras-al-Khaimah

and is now the largest cement producer in the country. Ras-al-Khaimah Ceramics which

is one of the world’s largest ceramics producers is located here. It has a total of 14,000

employees working in it, as per Mr. Anwar (Security Officer). The residential community

for them is build inside the company area.

Manufacturing & High Tech Industry – The Persian Gulf regions first pharmaceuticals

company, Gulf Pharmaceutical Industries is located in Ras-al-Khaimah.

Service Sector – RAK Bank & RAK Insurance companies has originated here.

Agriculture & Fisheries – It is one of the main economy sectors of Ras-al-Khaimah and

provide foodstuff not only to the Emirate but to the whole country.

Agriculture sector

No.of Poultry Farms 8

Egg (million') 212.5

Cattle farms 1

Total herd 668

Milking Cows 333

Milk Produced (ton) 1465

Total no.of fishermen 4251

Fish Caught (ton) 21.23

No.of Fishing boats 1234

0% 0% 0% 0%

Workers Nationality

Rice (white), (1kg)

Eggs (12)

Local Cheese (1kg)

Chicken Breasts (Boneless, Skinless), (1kg)


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Transportation:

The main modes of transport in the city are the metered taxis and the public buses

operating on the long routes and catering mainly to the smaller towns. Ras-al-Khaimah is

connected to the other emirates by taxis which often start from the taxi-stand located

south of Al Dhaid near the new Police headquarters.

The Emirates roads connect to Ajman (60km), Sharjah (71km) & Dubai (87km). The

highway allows traveling to Dubai from Ras-al-Khaimah in under 45 minutes.

Landmarks:

The main landmarks in the region include:

The National Museum of Ras-al-Khaimah

Dhayah Fort

Sheba’s Palace

Al Hamra Village

Manar Mall

Golf Centre

Ice Land

Ras-al-Khaimah Zoo


25, 2014


Spending Power of the Ras-al-Khaimah:

The cost of living in Ras-al-Khaimah is 22.22% less than that of Dubai. According to the

Economic department of Ras-al-Khaimah a person, assuming that he rent in both cities and

earning around 18,000 dhms in Dubai needs 13,999 dhms in Ras-al-Khaimah to maintain the

same standard of living as in Dubai. The calculation is done on the base of the consumer prices

including the rent index.

Emirates: Dubai RAK

Difference

Restaurants

Meal, Inexpensive Restaurant 25.00 AED 15.00 AED -40.00 %

Meal for 2, Mid-range Restaurant, Three-course 150.00 AED 150.00 AED 0.00 %

Combo Meal at McDonalds or Similar 21.00 AED 22.00 AED +4.76 %

Domestic Beer (0.5 liter draught) 35.00 AED 25.00 AED -28.57 %

Imported Beer (0.33 liter bottle) 35.00 AED 20.00 AED -42.86 %

Cappuccino (regular) 15.29 AED 13.00 AED -14.99 %

Coke/Pepsi (0.33 liter bottle) 1.57 AED 2.50 AED +59.18 %

Water (0.33 liter bottle) 1.10 AED 1.83 AED +66.15 %

Markets

Milk (regular), (1 liter) 5.44 AED 5.25 AED -3.40 %

Loaf of Fresh White Bread (500g) 4.32 AED 4.00 AED -7.44 %

Rice (white), (1kg) 7.35 AED 7.33 AED -0.29 %

Eggs (12) 9.69 AED 12.50 AED +29.01 %

Local Cheese (1kg) 31.22 AED 25.00 AED -19.93 %

Chicken Breasts (Boneless, Skinless), (1kg) 25.21 AED 40.00 AED +58.69 %

Apples (1kg) 9.63 AED 5.00 AED -48.09 %

Oranges (1kg) 8.15 AED 6.67 AED -18.21 %

Tomato (1kg) 5.70 AED 6.50 AED +14.06 %

Potato (1kg) 4.43 AED 6.00 AED +35.45 %

Lettuce (1 head) 5.24 AED 4.00 AED -23.65 %

Water (1.5 liter bottle) 1.94 AED 2.00 AED +3.14 %

Bottle of Wine (Mid-Range) 75.00 AED 45.00 AED -40.00 %

Domestic Beer (0.5 liter bottle) 25.15 AED 15.00 AED -40.37 %

Imported Beer (0.33 liter bottle) 27.58 AED 12.00 AED -56.50 %

Pack of Cigarettes (Marlboro) 10.00 AED 6.00 AED -40.00 %


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Transportation

One-way Ticket (Local Transport) 4.80 AED 4.10 AED -14.58 %

Monthly Pass (Regular Price) 200.00 AED 100.00 AED -50.00 %

Taxi Start (Normal Tariff) 3.80 AED 10.00 AED +163.16

%

Taxi 1km (Normal Tariff) 1.80 AED 1.50 AED -16.67 %

Taxi 1hour Waiting (Normal Tariff) 30.00 AED 30.00 AED 0.00 %

Gasoline (1 liter) 1.76 AED 1.62 AED -8.01 %

Volkswagen Golf 1.4 90 KW Trendline (Or Equivalent New Car) 71,000.00 AED 70,000.00 AED

-1.41 %

Utilities (Monthly)

Basic (Electricity, Heating, Water, Garbage) for 85m2 Apartment 564.05 AED 500.00 AED

-11.36 %

1 min. of Prepaid Mobile Tariff Local (No Discounts or Plans) 0.55 AED 0.53 AED

-2.68 %

Internet (6 Mbps, Unlimited Data, Cable/ADSL) 277.78 AED 211.67 AED -23.80 %

Sports And Leisure

Fitness Club, Monthly Fee for 1 Adult 349.46 AED 140.00 AED -59.94 %

Tennis Court Rent (1 Hour on Weekend) 81.67 AED 66.33 AED -18.78 %

Cinema, International Release, 1 Seat 35.00 AED 29.50 AED -15.71 %

Clothing And Shoes

1 Pair of Jeans (Levis 501 Or Similar) 299.88 AED 300.00 AED +0.04 %

1 Summer Dress in a Chain Store (Zara, H&M, ...) 202.31 AED 150.00 AED -25.86 %

1 Pair of Nike Shoes 319.75 AED 205.00 AED -35.89 %

1 Pair of Men Leather Shoes 371.37 AED 160.00 AED -56.92 %

Rent Per Month

Apartment (1 bedroom) in City Centre 6,799.91 AED 3,000.00 AED -55.88 %

Apartment (1 bedroom) Outside of Centre 4,336.84 AED 2,800.00 AED -35.44 %

Apartment (3 bedrooms) in City Centre 13,735.67 AED 13,500.00 AED -1.72 %

Apartment (3 bedrooms) Outside of Centre 9,634.83 AED 5,000.00 AED -48.10 %


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Buy Apartment Price

Price per Square Meter to Buy Apartment in City Centre 19,144.26 AED 5,400.00 AED

-71.79 %

Price per Square Meter to Buy Apartment Outside of Centre 10,778.95 AED 3,000.00 AED

-72.17 %

Salaries And Financing

Average Monthly Disposable Salary (After Tax) 11,886.07 AED 7,833.33 AED -34.10 %

Mortgage Interest Rate in Percentages (%), Yearly 5.25 4.50

-14.26 %

*Note: Sources from the Website - http://www.numbeo.com.

Communities:

Al Hamra Village is the largest community in Ras-al-Khaimah. It is an old coastal town and the

real estate business has picked up in this area due to its beautiful location.

Al Hamra Village:

At the very heart of Al Hamra Real Estate Development is Al Hamra Village, the luxury

integrated community, uniquely located in Ras Al Khaimah. It covers an area of 77 million

square feet and includes 1.5 kilometers of pristine beaches, with over 1,200 villas and

townhouses, 2,500 residential apartments, 5 resort hotels, an 18-hole golf course, a marina and a

shopping mall – all within a fully integrated community.

Occupancy in the Al Hamra Village Community:

According to the recent research conducted by the Estate Agency, they found that over 87% of

the Al Hamra Village Community residents are permanent, which reflects an increase of 50%

from 2010. The population can be divided into –

http://www.numbeo.com/


25, 2014


Mina Al Arab Facts:

A mixed-use Residential Community with over 1,200 villas and 1,000 apartments plus

Retail/Restaurants/Services and future Beach Resorts.

Marjan Island Facts:

It is a waterfront project developed by the RAK Investment Authority under the patronage of the

Government of Ras Al Khaimah. It is located at the southern border of Ras Al Khaimah. This

project includes world class hotels including 3 existing and operational hotels (i.e. Rixos,

Doubletree by Hilton, Marjan Island Resort & Spa), with an addition 3 more hotels to be

completed by 2015 and 2016. There are also freehold apartments in the Bab Al Bahar project

with over 700 residential apartments.

Local Community Facts:

The huge local community within the area consists of 5,000 houses and villas and it’s also about

a 7 min drive from the mall and Al Hamra Community with easy access to the hotels and the

proposed location.

All the above communities are located in the free zone of Ras-al-Khaimah & the other

communities which are located at the heart of Ras-al-Khaimah are Rams, Sham, Kharran &

Digdaga. All these communities are located within 10-15km radius of the Al Naeem Mall. As I

walked through these localities, I observed that it has a 50-50 % population of locals &

expatriates.

50%

30%

20%

Al Hamra Population

Western or European Locals & Arabs Asians


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AL NAEEM MALL OVERVIEW

Al Naeem Mall is located in the New Nakheel Area which is with in 5 minutes walking distance

from Manar Mall (approx. 0.5 km) & 10 minutes from RAK Mall (approx. 1.2 km). The mall is

going to open in the 1st quarter of 2015 as per Mr. Fadi (General Manager).

Al Naeem Mall

Area of Mall 53,000 sqmt.

No.of Floors 4

No.of Car Parking 1,500

No.of shops expected 200

Expected foot fall/day 20,000-25,000

Anchor Brands:

As per the Mr. Fadi Mjahed, there are 8 Anchor Stores that are already signed with the mall.

They are:

1. Magic Planet

2. Fitness time (Health Club)

3. Cinemax

4. Spinneys – As per the security of the mall, after 18 months Spinneys closed again

because of customer complaints regarding the unhygienic condition due to mall

construction.

5. Sharaf DG

All these above mentioned outlets are yet to open. In my visit to the mall, I have seen only 2

shops which were open, one is Cannon Retail Shop which had a monthly sale of 70,000 AED in

the month of November as informed by the staffs & the other is a Pharmacy Shop.

Some of the Anchor Brands in retails like Nike, Sun & Sand Kids, Lifestyle, Mothercare,

Giordano, Pure Gold, Gloria Jeans and in food services like Papparoti, Starbucks, KFC,

McDonalds, Hardees, Subway are still under discussions with mall.

As per my observation I do not see McDonalds & KFC opening their outlets in Al Naeem Mall

because they already have 3 & 2 branches near the mall, one each in Manar Mall & RAK Mall

and one McDonalds on the street between these malls.

Catchment Area:

The primary areas are Khuzam, Al Nakheel, Qusaidat, Uraibi, Juwais, Kharran, Digdaga all of

which are located within 10-15km radius of the mall.


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Surroundings of Al Naeem Mall:

1. Backside is facing the sea

2. Hilton Hotel on the left hand side of the mall.

3. Etisalat Tower on the right hand side.

4. RAK properties & Public Library are also located on the right hand side of the mall.

5. If we move little more on the right hand side we get the Manar Mall.

Delivery Potential:

As per my observation we cannot start deliveries in the mall because in the Al Nakheel area and

the above mentioned catchment areas, there are lots of small restaurants doing deliveries to these

residencies. Also in the Manar Mall all the restaurants are doing deliveries.

Al Hamra Mall Overview

Al Hamra Mall is located in the free zone Ras-al-Khaimah opened on December 2008.

Al Hamra Mall

Area of Mall 26,000 sqmt.

No.of Floors 2

No.of Car Parking 600

No.of shops 120

Foot fall/day 18,000-22,000

Anchor Brands:

The anchor brands that are already opened in the mall are:

1. VOX Cinemas

2. Funville

3. Spinneys

4. Adidas

5. Pan Emirates

6. Life Style

7. Hour Choice

8. Al Ansari

9. Sun & San Sports


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Catchment Area:

The Mall is surrounded by 5 hotels situated within a 5 minute radius including:

1. The Waldorf Astoria

2. Banyan Tree Beach Resort

3. Hilton Al Hamra Golf & Beach Resort

4. Hilton Al Hamra Residence

5. Al Hamra Village

6. Al Hamra Marina

7. Industrial Area

8. Mini Al Arab

Mall footfall:

Since the opening of the Mall expansion on the 12th October 2013 which includes VOX

Cinemas and Fun Ville Entertainment Centre, the footfall increased by a significant 50% and

keeps increasing month-on-month. Below chart shows the foot fall trend of the mall:

Month 2013 2014

January 254,329 368,609

February 226,222 332,939

March 296,888 406,896

April 319,272 418,746

May 273,324 448,422

June 274,037 521,700

July 244,854 568,212

August 315,114 652,860

September 282,043 557,678

October 394,221 718,419

November 395,106 528,653

December 386,549 -

45% 47% 37% 31% 64% 90% 132% 107%

98% 82%

34%

-

Foot Fall 2014 vs 2013


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Al Hamra Mall Food Court Restaurants:

Below are the names of the restaurant located in the food court along with their approximate sale

figures:

Restaurants Weekdays Sales Weekends Sales

Burger King 3,000 3,500

The Noodles Room 2,500 3,000

Subway 3,000 3,500

Papa Johns 3,000 3,300

Frooty 1,500 2,100

Chinese Connection 3,000 3,400

Golden Crown Indian Hut 2,000 2,500

Lebanon Express 2,200 2,700

Texas Chicken 3,000 3,400

Oliva 2,800 3,300

Below table shows the delivery sales for each outlet:

Restaurants Delivery Sales

Burger King 150 - 250 dhms

The Noodles Room 100 - 150 dhms

Subway 100 - 150 dhms

Papa Johns 200 - 300 dhms

Frooty No Deliveries

Chinese Connection 300 - 400 dhms

Golden Crown Indian Hut 200 - 300 dhms

Lebanon Express 150 - 200 dhms

Texas Chicken 150 - 200 dhms

Oliva 100 - 150 dhms

All the above figures are gathered from one staff of Chinese Connection, Mr. Gokul Bhandari

(052 – 8531576) who has a good rapport with all the delivery riders working there. The salary of

the delivery riders ranges from 2200 dhms – 2500 dhms.

Rasl Al Khaima Project

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