Ras Al Khaimah is developing one million square feet of Grade A office space to attract multinational firms, capitalizing on a severe shortage and record-high rents in Dubai and Riyadh. The project, led by developer Marjan, is part of the new RAK Central business district.
Ras Al Khaimah is strategically positioning itself to attract multinational corporations by developing five Grade A office towers, as a shortage of premium workspace grips major regional hubs like Dubai and Riyadh.
Marjan, the emirate’s master developer, is constructing the new commercial properties as part of its RAK Central masterplan. The project is set to deliver approximately one million square feet of premium office space, aimed at both expanding local businesses and international firms looking for a foothold in the region.
The initiative comes as demand for high-end offices in Dubai and Riyadh continues to outstrip supply. In Dubai, vacancy in prime locations has plummeted to just 1.7%, with rents increasing by over 20% year-on-year. Similarly, Riyadh’s Grade A office occupancy has hit 98% following its successful Regional Headquarters programme, which has attracted over 600 global companies.
“We build Grade A office space because we have RAK businesses that want to move in, and they are growing,” said Tariq Bsharat, Group Chief Strategy and Business Development Officer at Marjan. “But then we also have multinationals that, when they’re now looking at the UAE, they’re looking at where they should start, and Ras Al Khaimah is becoming more and more interesting. You have to build it for them to make it an option.”
The leasing for the new office towers will be managed by JLL in partnership with the Ras Al Khaimah Economic Zone (RAKEZ), which has seen its own rapid expansion, registering 13,000 new businesses in 2024 alone.
Bsharat acknowledged that RAK stands to benefit from the market pressures elsewhere. “As office is in limited supply in other emirates and pricing is going through the roof, we’ll see the benefit of that as well,” he stated, clarifying that the primary driver was meeting the emirate’s own growing needs.
This development is part of a broader strategy to diversify Ras Al Khaimah’s economy. Recently, Marjan and RAK Hospitality Holding merged to form a single entity to streamline the delivery of large-scale projects. The RAK Central district is designed to be a comprehensive hub, integrating residential, commercial, and lifestyle facilities to support the influx of new companies.
With the region experiencing surging demand for corporate real estate, Ras Al Khaimah’s move to offer new supply, combined with lower operating costs and modern infrastructure, positions it as a competitive alternative for global firms.
“It’s about building for the future,” Bsharat concluded. “As the region’s major markets tighten, we want Ras Al Khaimah to be ready for what comes next.”
