FOR several years, the Northern Emirates of the UAE had been a silent spectator to the property boom that made Dubai and Abu Dhabi world-class addresses for homes and offices.

While the two bigger emirates were progressing ahead with landmark projects that redefined engineering, architectural and construction techniques, the other five were content to continue with the traditional property development mechanism.
More than innovation and spectacle, the Northern Emirates focused on meeting the needs of a large middle-class population, several of them seeking solace in the lower rents vis-à-vis Dubai and Abu Dhabi. A large pool of workers, who were finding the rents in Dubai unbearably high for their meagre middle-class income, was resorting to Sharjah, Ajman and Umm Al Quwain for their residential needs.
With current prices of properties in Ajman being merely a third of Dubai-based investments, Ajman has emerged as one of the fastest developing real estate hubs in the Northern Emirates and has recently unveiled a number of mega-projects including the 12 million sq m Al Zorah City, which involves a total investment of Dh220 billion ($60 billion), Dh3.5 billion Eye of Ajman, Dh3 billion Ajman Uptown, Dh2.7 billion Ajman One and Dh2 billion Goldcrest Smart City.
Fujairah and Ras Al Khaimah, too, have evolved as growth centres, with focused initiatives at energising the economy. The freehold era was making the Dubai property sector an overnight success, and it only made business sense for others to follow although to varying degrees of success.
The key to Dubai’s property market success was the robust economic fundamentals and felt-need that backed it, and quite fittingly, the Northern Emirates also focused on building new growth engines. The success of free zones, for one, has been a huge driver of growth for Sharjah, Ajman, Ras Al Khaimah and Fujairah.
Sharjah continues to lay emphasis on industrial development, and already accounts for about 48 per cent of the UAE’s industrial output, according to Oxford Business Group. This growth was achieved through 11 industrial zones spread over 26 sq km.
With 99-year leasehold in place and foreign ownership offered to all GCC nationals, Sharjah has also embarked on modern residential projects with the $5 billion Nujoom Islands, already much sought-after by investors.
Ras Al Khaimah has been making concerted efforts to boost its tourism sector with the result that tourist arrivals have increased by reportedly 40 per cent in the past two years. The economy is poised to grow 15 per cent this year, with the Ras Al Khaimah Investment Authority as a prime driver, poised to attract investments of over $15 billion. Ras Al Khaimah is also leading in the property front with projects of over $8 billion announced, launched and in various stages of construction.
Umm Al Quwain has the added attraction of a desirable tourist destination with untouched beauty that was appealing to leading developers like Emaar Properties, which has unveiled a pioneering marina project in the emirate – the $3.3 billion Umm Al Quwain Marina. Another key project in Umm Al Quwain is the $8 billion Al Salam City, a mixed-use project.

Promising potential
According to recent statistics, the Northern Emirates accounted for about 18 per cent of the GDP of the UAE and supports 34 per cent of the population. Sharjah accounts for the highest population – 28 per cent, followed by Ajman and Ras Al Khaimah with seven per cent; Fujairah (four per cent) and Umm Al Quwain (one per cent).
According to the Oxford Business Group report 2008, “Though the Northern Emirates have only 34 per cent of the UAE’s population, they have 39 per cent of the country’s housing units. Sharjah and Ajman have benefited from the rise in demand for property in Dubai by providing reasonably-priced over-flow accommodation for Dubai’s workforce. However, the increasing demand has consequently driven up rents and property prices in Sharjah and Ajman as well.”
Alongside the growth of the residential sector, commercial, retail and hospitality real estate is also cutting deep inroads in the Northern Emirates. Industrial projects such as the RAK Financial City by Rakeen and the $2 billion Emirates Industrial City are poised to scale up the commercial prospects of the Northern Emirates.
Commensurate with the tourism growth, there are several initiatives to boost hotel capacity. Some of the upcoming projects include the Jebel Jais Resort and Mina Al Arab in Ras Al Khaimah; Moevenpick Hotel in Ajman; Kempinski’s Fujairah Resort; Robinson Club and Fujairah Dana and Fujairah Paradise in Fujairah.
Malls are a fast-growing property sector in the Northern Emirates with the $109 million Dana Mall in Ajman scheduled to open shortly. The mixed-use developments in Sharjah and Ras Al Khaimah too will encompass several malls and community retail centres.

A touch of celebrity
While Dubai’s real estate sector has been thriving with celebrity endorsements, the Northern Emirates is not lagging behind. Most recently, Indian movie icon Shah Rukh Khan joined forces with TSA Group, a major player in the UAE real estate market, to launch the Dh8 billion Shah Rukh Khan Boulevard, a signature beachfront residential development in Ras Al Khaimah. Shah Rukh Khan Boulevard will be located on the $60 billion Dana Island, a project developed by master developer Rakeen.
Shah Rukh Khan Boulevard marks the first time that the Indian actor, regarded as the face of modern Indian cinema, has become associated with a property development (see separate article).

Projects
Here is an overview of some of the projects being developed in the Northern Emirates:
• Al Zorah: Billed as the largest development to be launched to date in Ajman, this self-contained, master-planned community is already said to be going full steam ahead with infrastructure work on the five major roads reaching an advanced stage. Known as Al Zorah, the project is being spearheaded by Al Zorah Development (Private) Company, a joint venture between the government of Ajman and Solidere International, one of the Mediterranean region’s largest and most successful master-plan developers (see separate article).
• Nujoom Islands: Being developed by Al Hanoo Holding Company, one of the leading real estate developers in the Middle East, this development is located on the Hamriya coastline in Sharjah on an area of more than 60 million sq ft. The project consists of 10 islands separated by large water channels surrounded by a waterfront mainland offering over 35 km of white sandy beaches (see separate article).
• Emirates Industrial City (EIC): Conceived as a model industrial city – the first of its kind in Sharjah, EIC is strategically and accessibly located adjacent to Al Saja’a-Al Khawaneej Road, five minutes away from Sharjah Airport, and serves the major seaports, airports and free zones in the UAE. The infrastructure of EIC has been built and developed in accordance with the latest international standards implemented in industrial parks. EIC is built over 8 million sq m of land and has eight sectors, two of which are dedicated for warehousing and logistics.
• Umm Al Quwain Marina: This $3.3 billion waterfront community along the shores of Khor Al Beidah, Umm Al Quwain’s natural lagoon, incorporates residential, retail and recreational facilities, sport and yacht clubs, waterfront resorts, boutique hotels, schools, community centres, open beaches, and landscapes with parks and trails. The project is being developed by Umm Al Quwain Marina, a joint venture between the government of Umm Al Quwain and Emaar Middle East.
Covering a land area of about 2,000 acres with 23 km of waterfront, Umm Al Quwain Marina will have six distinct zones namely: Town Centre Marina Zone; West Mainland Villa Zone; Mainland Townhouse Zone; East Mainland Villa Zone; Three Islands Villa Zone; and Exclusive Island Villa Zone.
All clusters will be held together by open spaces dotted with lakes. The total navigable water area, including the marina and a set of canals, is about 450 acres.
The masterplan envisages 6,000 villas and 2,000 townhouses. Exclusive villas will have facilities to allow owners to moor their boats by their door. An additional 1,200 resort- and hotel-rooms are also planned.
The first and second phase of residences in the Mistral community within Umm Al Quwain Marina has been launched. It comprises a series of Spanish and Portuguese-styled villas.
• Al Salam City: Tameer is developing the 220 million sq ft Al Salam City, which features luxury villas, luxury apartments, malls and shops, restaurants, mosques, schools, hotels, parks and office towers. Located on the Emirates Road, the integrated residential and commercial city will house over half a million residents and will include a number of prominent towers. Al Salam City will also include a unique, colossal shopping mall, which is to be built in a distinctive, architectural style.
The project is planned to be executed in three phases, with each phase expected to cover five years and cost Dh10 billion.
The first phase of Al Salam City will include the development of the infrastructure of the whole city, including the “downtown” area, which will house a shopping mall – first of its kind in the Middle East and the fourth worldwide, after the US, Singapore and Australia. Another distinguishing feature of the mall will be a huge garden that will extend throughout the mall with water surfaces such as lakes and water falls, in addition to entertainment facilities, restaurants, cafes and retail stores.
• Al Marjan Island: Located 27 km southwest of Ras Al Khaimah town centre, the $1.8 billion Al Marjan Island is the first man-made island project to be developed in the emirate by Rakeen. The cluster of five coral-shaped islands extends over 2.7 million sq m. This incredible development will comprise waterfront homes, floating villas, hotels, resorts, sporting facilities and commercial areas.
Over two million pieces of natural rock were cautiously and carefully laid one at a time for building essential breakwaters, instead of utilising concrete ripraps that were considered visually unacceptable and naturally unwelcoming to marine life. This has generated home to marine life over more than 400,000 sq m of rock. The rocks will also, in the long term, attract coral life and help a reef formation.
The resort destination of Al Marjan Island – Bab Al Bahr offers a hotel of international standards, freehold apartments, time share apartments, retail and office space in a cosmopolitan setting. Residents at Bab Al Bahr will have a panoramic sea view and majestic landscaping that includes exotic gardens and open private beach fronts. The development also features a sprawling golf course, in addition to hotels and resorts, schools and hospitals of international repute.
• Dana Island: This project is being developed by Rakeen to accommodate several world-class hotels, and commercial and residential complexes. It extends 7 km into the sea, and is expected to create an estimated 53 km of new shoreline in Ras Al Khaimah. Dana Island’s design consists of a main stem in three parts and 10 leaf-shaped islands (see separate article).
• Gateway City: This development, slated for completion in 2012, will consist of five phases, extending over 400 million sq ft in Ras Al Khaimah. Phase One will consist of an integrated city to service, support and supplement the capital city of Ras Al Khaimah.
• RAK Financial City: Billed to become the new hub for the offshore financial operations of the regional business community, the RAK Financial City in Ras Al Khaimah will also enhance the cultural and social fabric of the emirate and become a major tourist attraction. This 750,000 sq m project valued at $800 million will include striking towers ranging from 30 to 65 floors, which will contain offices, residential apartments, hotels, commercial areas and related services.
• Goldcrest Smart City: Goldcrest Properties, a member of the Giga Group, is developing Smart City, a Dh2 billion freehold residential development comprising eight luxury residential towers in Ajman. The project is spread across 4.2 million sq ft along the Emirates Road. Smart City will offer more than 3,500 luxury apartments comprising studios, single-bedroom and double-bedroom units. The group said it will guarantee electricity to all investors in Smart City in conjunction with master developer Bonyan Investment Group. Smart City will be connected with LG HomNet, an intelligent home network solution that provides a convenient and secure lifestyle with the integration of digital home solutions. Residents will have access to health and fitness centres with swimming pools, squash courts, table tennis, billiards, nurseries, a landscaped podium and multi-function hall for parties.
• Ajman Uptown: This Dh3 billion community development, being developed by the UAE-based Sweet Homes, comprises seven commercial and residential towers, a hotel and hotel apartments, and villas and townhouses. Spanning over 4 million sq ft, Ajman Uptown comprises 1,504 villas and townhouses, and seven four-storey buildings
As part of its efforts to maximise the current boom in recreational and hospitality facilities in Ajman, Sweet Homes has also recently announced plans to develop Dh600 million hotel and serviced apartment complex within ‘Ajman Uptown’. The developer is currently negotiating with leading hotel operators for the management of the five-star hotel and luxury residential complex, which will further boost the emirate’s repute as an emerging real estate and tourism destination (see separate report).