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New Rival to Dubai Emerges as Billionaire’s Paradise

Perched atop the RAK International Corporate Centre, Ras Al Khaimah (RAK) showcases its ongoing transformation into an enticing destination for high net worth individuals. As foreign tycoons gaze out, they witness a landscape in flux—a long stretch of desert to the north and opulent luxury villas adorning the picturesque coast of the Persian Gulf to the west. However, it is the ambitious plans for a $3.9 billion gaming resort by Las Vegas-based Wynn Resorts Ltd. that truly captures attention.

Located just 45 minutes away from Dubai’s international airport, RAK, a northern territory of the United Arab Emirates, has traditionally been recognized for its majestic mountain peaks and ceramics industry. Nevertheless, the emirate is now actively rebranding itself as an alluring haven for the wealthy.

Under the guidance of Sheikh Saud, who obtained his education in Michigan, RAK is implementing a comprehensive foreign direct investment strategy that attracts prestigious five-star hotels, industrialists, and intrepid tourists from countries as diverse as Russia and the Czech Republic. While the Wynn Resort project promises to provide a substantial boost, RAK’s efforts extend beyond it and successfully captivate affluent executives from various sectors.

Immigration consultants and advisers foresee RAK benefiting from the United Arab Emirates’s citizenship-by-investment program, which aims to attract more prosperous individuals to the emirate. Simultaneously, RAK is developing a new free zone dedicated to digital and virtual asset companies. With RAK ICC already overseeing the registration and incorporation of tens of thousands of foreign firms, the emirate has already established a reputation for its business-friendly environment.

Furthermore, RAK has unveiled plans for a super-yacht storage facility, as well as endeavors to establish itself as a prominent yacht manufacturing hub. Industry insiders reveal that one Polish yacht maker, boasting renowned customers like tennis star Rafael Nadal and Formula One champion Fernando Alonso, intends to invest €30 million ($33 million) to produce luxury catamarans in RAK.

“Some now like to call it the Las Vegas of the Gulf, but ultimately RAK should be RAK as it has plenty to shape its direction,” remarks Izzat Dajani, former senior banker at Goldman Sachs and founding CEO of the Ras Al Khaimah Investment and Development Office—the emirate’s sovereign wealth fund. He emphasizes the government’s multifaceted approach, focusing on financial returns, societal benefits, and cultural advancements.

Despite RAK’s grand aspirations, the emirate faces several obstacles. As one of the smaller emirates in the UAE, RAK’s plans appear outsized in comparison. Vast expanses of the desert city still retain a ghostly ambiance, reminiscent of unfulfilled promises. Past disappointments include the cancellation of a $1 billion soccer-themed resort in 2013 when the project’s organizer defaulted on payments.

However, RAK has achieved notable progress. Last year, the emirate set a record with over 1.1 million overnight visitors—an impressive 16% increase from the previous year—alongside a 40% surge in foreign tourists. Notably, Russia ranks among the top markets for RAK, aided by direct flights between the UAE and Russia. Additionally, significant numbers of visitors hail from Kazakhstan and the UK.

The United Arab Emirates’s citizenship program, which enables select foreign investors and specialists to be nominated for citizenship, has further bolstered RAK’s prospects, particularly as other nations scale back their own citizenship-by-investment programs.

Central to RAK’s grand vision is its ruler, Sheikh Saud, whose innovative policies continually push boundaries and explore new avenues for growth. Knight Frank, in a report focusing on high net worth individuals, acknowledges RAK’s ambitious plans to position itself as a desirable alternative to Dubai.

While the planned Wynn resort undeniably adds a touch of allure to RAK, Faisal Durrani, Head of Middle East Research at Knight Frank, highlights the ongoing uncertainties surrounding its operation. Gambling remains prohibited under Sharia law, posing a challenge for casinos. Although the UAE currently prohibits casinos, discussions surrounding potential policy changes have been taking place.

As RAK presses ahead with its multifaceted initiatives, the emirate aims to quadruple its annual tourist numbers by 2030 and increase its population by a quarter million, reaching 650,000 from the current 400,000—an ambitious goal, yet still a fraction of the UAE’s total population of over 9 million.

Undeterred by challenges and setbacks, RAK is steadfast in its pursuit of becoming an unrivaled destination for the wealthy, offering a unique blend of luxury, business opportunities, and cultural experiences. With a dynamic and forward-thinking leadership at the helm, Ras Al Khaimah aspires to carve its own distinctive path in the global landscape.

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