The Ras al-Khaimah (RAK) government has signed a heads of agreement with Jordan-based Saraya Holdingsand Arab Bank for the development of a $500 million new residential and tourist development on the emirate's coast. Known as Saraya Islands, the project is one of several new ambitious schemes planned in the emirate. Spread along three kilometres of coastline in the Jofar area, the development will feature 200 villas, several hotels, a golf course and a retail area, spread over 1 million square metres. The properties will be sold on a freehold basis to all nationalities, and will be serviced by the hotels.
The project will be developed by Saraya Islands Real Estate Development Company, a joint venture of the RAK Investment Development Office (IDO), Saraya Emiratesand Arab Bank. Construction is due to start next year, with all the work carried out by Saudi Oger, Saraya's sister company. The development's masterplanning and architecture has been completed by Oger's own in-house consultancy team. Construction is expected to be complete by 2010. Saraya Islands will be financed on a 60:40 debt/equity basis, with all three partners on the scheme participating in the equity portion. The debt element will be financed through a private placement later in 2006, with Arab Bank leading the syndication. Saraya is also developing the Saraya Aqaba project in Jordan, for which Oger is also the main contractor (MEED 22:7:05).
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