Work started in May on construction of the La Hoya Business Village, comprising more than 500,000 sq ft of office space

On a man-made island off the coastline, construction has begun on the first phase of a multi-phased, multi-billion pound development designed to bring a touch of Monaco and Cannes to Ras Al-Khaimah. La Hoya Bay is a £400 million Mediterranean-style waterfront residential and leisure project to be built in six phases on Al Marjan Island. The £88 million first phase, currently under way, consists of 1,100 freehold studio, one, two and three bedroom apartments and on-site leisure amenities that will offer a Riviera lifestyle in the heart of the Middle East.

The developer behind La Hoya Bay Residence is Khoie Properties, which in March launched its second project on the island, the La Hoya Bay Business Village, a £74 million commercial development. Further projects for a marina, luxury hotels and apartments are currently at the design stage.

Frank Khoie, the company’s Chairman and Chief Executive Officer, and founder of its parent, Khoie Group, believes the emirate has huge potential for growth and describes it as the next “hot spot” of the region. His company is committed to investing almost £1 billion in Ras Al-Khaimah by 2010. Over the next five years, he expects to see at least 200,000 people migrating to the emirate.

Khoie Group, initially an engineering company involved in the design of industrial projects from electronics to machine tools, is now an amalgamation of several companies with global interests built up over the last 32 years. Khoie Properties was established in 2005.

Mr Khoie acknowledges that the inspiration for the company’s involvement in Ras Al-Khaimah came from Dubai, where palm style island developments with luxurious waterfront resort homes have proved hugely popular – not least with buyers from Europe.

FRANK KHOIE Chairman and CEO of Khoie Properties

“When I was in Dubai in 2001, I realised there was a huge opportunity,” he says. “We had done property development in Singapore, we had done property development in Los Angeles, and I have always been interested in it. From 2001 onwards, we saw huge opportunities in the quality of funds coming here and the potential of expanding into property development as freehold laws permitted us to buy and develop projects. Of course, as an entrepreneurial organisation we looked for niche markets and niche developments, and the niche we found was Ras Al-Khaimah.”

The first phase of the company’s Al Marjan Island project, set amid white sand beaches and lush green landscapes, is due to be completed in July next year. Covering an area of just over 15 million sq ft, it will include 725 resort-styled apartments, three swimming pools, tennis courts, restaurants and shopping facilities.

“RAK is focusing more on resort-style developments rather than high-rise buildings,” explains Mr Khoie. “They have learnt a lesson from Dubai; it is easy to build huge buildings but it is difficult to manage them. They create a level of crowding that is not necessarily attractive for tourists. Of course, Dubai is now becoming a financial and banking corporate headquarters, but in Ras Al-Khaimah we believe that we should not move to imitate New York, and should avoid a crowded community – especially with the beautiful beaches and the blue water we have.

“Tourists need a place where they can come and relax. For this reason, His Highness Sheikh Saoud is particularly interested in keeping RAK fairly low key in terms of development. The focus is on resorts, golf courses, and polo clubs, and there is a great emphasis on yachting and water sports. Very few projects are going to include high-rise buildings; all our projects will be resort style.”

Construction started in May on Khoie Properties’ £74 million project, La Hoya Bay Business Village. Located in Ras Al-Khaimah’s free zone area, the freehold commercial development will extend over 500,000 square feet. The seven-storey building will offer fully furnished and ready-to-occupy office space ranging from 40 square feet to 10,000 square feet. Amenities will include corporate and special event planning and organising, IT and telecom services, tours and travel arrangements, virtual office services, video-conferencing, and on-site clinic and child care. Construction started in May.

Following this, the company plans to develop La Hoya Bay Regency Hotel Apartments. Designed for guest investors, the 500 luxurious apartments “with top class service like a hotel, and where one can live for any amount of time. The rest of the property we will rent to tourists.” After this, the company will be launching another 800 apartments, which will be called La Hoya Bay Pelican. “La Hoya Bay will be keeping us very busy for the next 3 to 5 years,” adds Mr Khoie.

British investors are high on the list of potential purchasers. “At the of top of our list is Britain. Next is Germany, and after Germany comes Holland. Many of them are buying. There is also the Iranian elite who would like to live and invest here. The UAE is surrounded by 2 billion people who find the quality of life here attractive to set up and start a business.

“The British in general are extremely bullish about the UAE. They have historical relationships with the UAE establishment. UK businesses have major developments here in terms of property and technology, from management to construction. The British run many key areas of management here. They also love to come to the beach and have either a second home or an investment abroad. The weather, location,a tax-free and development friendly environment and generally pro-UK spirit here is always an assurance. If I were British, I would invest here.”

Within the next five to 10 years, Mr Khoie plans to establish a finance company to provide mortgage financing to potential buyers. Another priority is to establish Khoie Holdings by 2008 or 2009, and list on the London Stock Exchange, as well as the Dubai Stock Exchange.