New Property Regulatory Authority Has Been Introduced In Ras Al Khaimah

The implementation of the escrow accounts law will be overseen by the Ras Al Khaimah Investment Authority (RAKIA). This will be done for all freehold development projects. This regulatory authority is similar to the one operating in Dubai and this new watchdog monitors the developments. There are several property developers who have already registered their projects with RAKIA. Moreover, the developers whose projects design concept gets approved can only register their project with the authority, which then allows them to open the escrow account with which they can start selling of their properties. Moreover, the RERA and RAKIA will send out a team of engineers in order to inspect the construction of the projects.

Yahia Kambris, the General Manager said: “The escrow account has been implemented to prevent mishandling of construction funds and ensure that investors' money is spent according to the master plan of the project.” He further added “The establishment of the new real estate watchdog is an important step in our efforts to safeguard and protect the interest of investors and reinforce the reputation of Ras Al Khaimah as an attractive and practical investment destination in the region.” There are developers which have already registered with RERA and RAKIA. These include: Blue Mirage real estate developer Pure Real Estate, Manazil Real Estate developing Marbella Bay, Select Group, Stallion Properties and many more.

Developer of the Quay, Yes Properties is currently involved in completing the registration process which will soon lead to opening of an escrow account. There are several banks which have also signed agreements with RERA to offer escrow accounts. Some of the banks which have signed agreements include Commercial Bank of Dubai, Bank of Baroda, Dubai Islamic Bank and Badr Al Islami-Mashreq. Thus, a new layer of protection is being made to real estate investors in the emirate.

RAKIA Maintains Strong Investor Interest

RAKIA is the Ras Al Khaimah Investment Authority which is a government body in Ras Al Khaimah. From January to May 2009, a total of 289 licenses have been issued to various businesses operating across various free zones within the emirate. These licenses were issued to a diverse range of businesses which includes commercial, consulting, trading, media, and industrial companies. This government body of Ras Al Khaimah further revealed that the economic diversification strategy of the emirate is on track.

Moreover, some newly approved businesses have also been added therefore, since 2006, Rakia has issued around 1983 licenses. 529 commercial companies are actually operating in the Rakia free zones reflecting 26 percent of the licenses issued by Rakia. The CEO of Rakia, Dr. Khater Massaad said: “With respect to the ongoing global economic challenges, we are very satisfied with the growth rate that we have achieved. The continued influx of foreign investors and the growing level of international interest in the emirate have been achieved primarily because of the proactive support of the government in terms of infrastructural development and establishing pro-investment policies.”

In 2006, this investment authority issued 10 trading licenses and last year the figure of licenses rose to 113. This year, Rakia is again expecting a positive growth rate in the trading sector. Moreover, the demand for warehousing facilities is also increasing thus; Rakia announced that ready warehouses are being constructed in an area of 186,000 square meters. The investment authority has also issued licenses to 450 consulting and service companies, 209 media companies and to 288 trading companies. Foreign investors in this emirate are also benefitted from 100 percent capital. Moreover, there are easy licensing procedures, easy availability of labour, excellent transportation facilities and a lot more.

Therefore, a vital role is being played by Rakia in nurturing the investment landscape for this emirate.