• CEO expresses hopeful outlook
• Strategies to protect business
• Emphasis on domestic investors

Ras Al Khaimah is feeling the impact of the Iran conflict, affecting one of the UAE’s vibrant real estate markets. A prominent developer is already adapting to this altered landscape.

Sameh Muhtadi, CEO of RAK Properties, has expressed a positive attitude about the future, discussing with AGBI the measures being implemented to shield the business.

In the previously quiet emirate, property sales surged over 150 percent from 2022 to 2025, propelled partly by the government’s initiative to establish a casino resort. Investors had been purchasing properties without seeing them in person, but that enthusiasm seems to have waned amid growing uncertainty in the Gulf region.

Project Announcements on Hold

“We have halted new project launches. We have assessed multiple scenarios and concluded that now is not the time to introduce new developments,” Muhtadi noted. “This decision makes sense. We have postponed them until May, believing that the situation will become clearer by that time.”

Previously, off-plan projects would sell out within hours, and simply being in proximity to the nation’s first legal casino was enticing enough for most buyers.

Next week, RAK Properties will invite bids for its Nikki Beach hotel and residential project, with the CEO indicating that project awards are still being distributed, albeit selectively. Marketing for the Marjan Beach project, branded as Lunara, has been temporarily suspended, according to Muhtadi.

For 2025, the state-supported real estate developer reported a 142 percent increase in sales compared to the previous year, reaching AED3.4 billion ($926 million).

Focusing on Local Market

In recent weeks, the company’s stock price has fallen by 41 percent. According to the CEO, international investors contribute to 70 percent of sales.

“If a downturn occurs, most individuals familiar with the UAE recognize this as a temporary setback. Demand from the local market will persist,” he stated.

One of the company’s significant strategies now involves a substantial landbank designated for family homes catering to UAE residents. Historically, the emirate’s approach focused primarily on upscale beachfront apartments favored by foreign investors, while townhouses and villa developments went unnoticed, as per Muhtadi’s observations.

“We are diversifying, which is a positive shift. Our branded apartments will still target the international market, but we will also cater to local needs,” he added.

RAK’s population is approximately 400,000, roughly one-tenth that of Dubai.

He clarified that plans for the family homes project began prior to the Iran conflict but are now more critical than ever.

Holding Prices Steady

Regarding pricing in the emirate, Muhtadi remarked that they “cannot drop lower,” noting that increasing construction costs and narrow profit margins would compel adjustments. “I foresee rising inflationary pressures affecting construction expenses. We must manage that. Regardless of how temporary it may be, any current tenders will reflect high potential risk,” he explained.

Reducing prices is not a favorable option, as it would complicate raising them again once stability returns, the CEO stated. Additionally, he noted that if competitors lower their prices, his company may have to reassess the premiums its properties can command. “If we observe that all developers in Ras Al Khaimah are pricing below us, we must evaluate the premiums our properties can sustain. At this moment, we do not intend to cut prices,” he expressed.

On average, RAK remains a more affordable property market than Dubai. In 2025, the average price for apartments was AED1,128 per square foot, while villas were AED1,166 per sq ft, according to recent data from CBRE.

In comparison, Dubai’s average prices were AED1,510 per square foot for apartments and AED1,480 for villas, based on figures collected by property analyst DXB Interact. However, certain high-end RAK apartments, particularly those close to the future casino, are pricier than comparable options in Dubai.

Contractor Agreements

In an environment where potential inflation is creating uncertainty, RAK Properties is establishing terms that dictate the pricing of materials, allowing contractors to renegotiate later.

“Rather than allowing contractors to make pricing assumptions, we will dictate terms. We will choose the most advantageous suppliers,” Muhtadi mentioned.

“This approach is not just delaying decisions, but the current timing for contracting is not ideal. With ongoing logistical complexities, contractors may overextend their budgets. That is not advantageous for us.”