An enormous luxury home development in Ras Al Khaimah (RAK) has been “suspended.” Saraya development were planning a $1.4 billion development across an island off the coast comprising 4 seperate developments interconnected through a series of “resort-style” roads and bridges – Al Boum, Al Marsa, Al Sahab, and Al Wahat -The project was intended to include several hundred waterfront villas, houses, serviced apartments and condominiums along with a theme park, and several resorts and hotels, taking up more than 1.1 million sqm. Sales have now been suspended and refunds made.
The Managing Director of the company, Omar Agha said that the suspension was “temporary,” and caused by combination of a lack of electricity and the financial crisis weakening demand for luxury homes in the region.
In the light of the financial crisis and issues pertaining to the availability of power in Ras Al Khaimah, Saraya’s board of directors opted to slowdown the project. We resolved to suspend sales until there was clarity on the way forward for us, especially in terms of time lines for handing over units. Before the financial crisis started, the project’s development plan was an aggressive one with completion planned on a fast track basis.
Unlike many developers in Dubai, Saraya is making a full refund of deposits to all investors, which is a positive step as far as I am concerned. There is a battle raging across Dubai currently between government owned developers and investors wanting refunds on canceled or delayed projects. Unfortunately for the smaller investors – the government also owns the legal system, and not one case has been won against a developer.
