AJ Jaganathan

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• AJ Jaganathan
• Director RAKEEN DEVELOPMENT
• Bangalore, India
• 22nd October 2008

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UAE Real Estate

• Unprecedented growth, actively sustained by real
  demand from well diversified service sectors
• Most actively sought after destination in the
  GCC, and, the wider region covered by a 6 hour
  air journey radius
• Not left to vagaries of unregulated growth.
  Developers, Local Authorities, Mortgage Lenders
  and Investors (retail institutional) subjected
  to framework rules and regulations to underpin
  sustainability of growth, safety of investment
  and return on investment
• The various emirates of the UAE have actively
  encouraged business development to lead economic
  growth rather than isolated real estate
  development

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Sustainability of Value

• A range of business sectors have chosen to home
  in on various emirates, including Ras Al Khaimah
• Sectors include hospitality and airlines (incl.
  hub engg. bases MRO) financial services
  health care incl. advanced diagnostics pre and
  post surgical care print, online and broadcast
  media MICE marketing and advertising theme
  parks, studios, film production post
  production broader education training light
  and medium engg., etc.
• Pursuit of higher education research through
  the Higher Colleges of Education, delivering an
  excellent quality of higher education to about
  18,000 national students who in turn contribute
  to the strong national annual recruiting base for
  new business

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Key Predicators

• National population represents 18-20 of total
  population
• Much like the rest of the GCC, has attracted
  inorganic growth, i.e., foreign workers. However,
  UAE has increasingly attracted expatriate workers
  from higher income groups
• Higher income groups have sought long term
  incumbency of a family home, the tipping point
  for expatriate home buying. Freehold ownership,
  mortgage finance, residency permits enabled
  strength of base
• As this continued, increasing numbers of diverse
  expatriates (from circa 137 nations) have made
  UAE their home, to work, holiday, save, and most
  of all to garner value in a best-of-two-worlds,
  tax free environment

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Current Situation

• Undeniably, the UAE is a stable economy, well
  diversified with various economic growth and
  value sectors related to on off-shore petroleum
  production, wide ranging services, and light,
  medium and heavy engg. / mfg. Strong GDP growth
  sustained by budget surpluses, sovereign funds
• The global financial crises will have an impact,
  but this is likely to be minimal short term,
  because the UAE has a well capitalized and
  robustly regulated banking system, stable
  currency, and despite falling oil prices,
  reliable expectation of long term budget
  surpluses even if/when oil prices eventually
  reach supply-demand equilibrium
• The UAE federal structure caters homogenously for
  all the seven emirates, and although each of them
  function with autonomy, they are strongly unified
  economically politically

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Ras Al Khaimahthe opportunity

• Visionary leadership supported by an efficient
  entrepreneurial administration which is
  completely investor friendly
• Unique in the UAE as the only emirate that offers
  the most diversified destination. Geographic
  diversity (salubrious mountain resorts in the
  midst of arid desert climatic conditions),
  industrial investment opportunities, services,
  residential mix, retail, industry, full fledged
  port facilities
• Local real estate market is well regulated. As a
  value proposition, RAK today is somewhat equal to
  Dubai a decade ago. This offers a unique
  investment opportunity

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Ras Al Khaimahthe destination

• Real estate assets values are expected to grow
  because of increased demand and also because of
  relative catch-up value in comparison with
  neighbors
• Deficit in residential and commercial properties
  thereby affording excellent investment
  opportunities for developers
• Rapid increase in tourist inflow has made
  shortfall in hotel rooms very apparent. Existing
  hotel rooms enjoy occupancy REVPAR levels
  exceeding that of neighboring emirates
• Foreign ownership has long been in existence from
  pre-federation days, and as such the culture of
  expatriate freehold real estate is deep rooted in
  terms of entitlement acceptance/compliance

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RAKEEN

• Private joint stock company (PJSC) established
  under Emiri Decree on April 26, 2006. Authorized
  capital is AED 3 billion paid up AED 390 million
• Strong shareholders comprise Govt. of Ras Al
  Khaimah (through RAK Investment Authority), RAK
  Airways and RAK Properties (publicly quoted local
  developer)
• Master developer as well as an owner / investor
  of unprecedented iconic projects, both locally in
  RAK and internationally. Undertake project
  management. Varied palette of offerings
  residential, commercial and retail mainland and
  island waterfront, stand alone and on mixed use
  bases. Operate internationally multi cultural
  employee base

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