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Kicking off a $1bn deal in THE UAE

April 11- 17, 2012
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Gulf Weekly Kicking off a $1bn deal in THE UAE

It’s a slightly surreal experience driving out to Al Marjan Island in Ras Al Khaimah (RAK), passing Ice Land, the latest themed waterpark, as the fake penguins gaze down from the towering iceberg that separates the desert dunes from the Arabian Sea, writes David Axtell.

Ras Al Khaimah reminds me of Budaiya 20 years ago, a pioneer town spawning single-storey terraced shops in which there is little that cannot be bought, made or mended – all within a single stretch.
 
Parked outside are gleaming SUVs that dwarf the rows of Indian Hero bicycles that remind you of the disparity between the decision-makers and the masses who make the region work.

Many of the phrases used in association with RAK are also reminiscent of terminology that has been used to describe Bahrain over the years – innovative, attractive, welcoming and hospitable. While traditionally this eastern emirate has relied on ceramics and cement factories, light industry and farming, more recently it has turned to gas and tourism.

It is with this in mind that the rulers of RAK welcomed Real Madrid to announce the launch of a new branded resort island, aiming to be officially opened in January 2015, joining the other 11,000 new companies opened in the last few years.

Costing $1 billion there is no surprise that there will be futuristic stadia and state-of-the art training facilities.

One of the more fascinating features will be a football pitch built on the coast with a crescent-shaped covered stand. While this initially brought mental images of trained dolphin ball-fetchers, the more practical aspect is a beautiful backdrop for concerts and dramatic productions.

The planners have coined the phrase ‘sportainment’ to encapsulate this combination between sport and entertainment that will form the bedrock of their aim to attract a portion of the estimated 300 million Real Madrid followers around the world.  Unbeknown to many, the organisation welcomes a number of sports, most notably basketball, another regional favourite.

I have mixed feelings as to whether RAK can attract tourists away from the glitz and glamour of Dubai. Certainly it is more authentic (or ‘real’!) with features ranging from mountains to mangrove swamps and salt marshes to swimming with turtles.
 
Away from the hustle and bustle it is already a favoured location for many global celebrities. Perhaps, I should refer to the mantra, ‘build it and they will come’. However, the promise of technology excites with the revolutionary ability to sit in a RAK stand while watching a 3D hologram image of Real Madrid beamed onto the pitch.

Two of the burning questions raised on the day were ‘why RAK’? and ‘how much will it cost Real Madrid’? There were also cautionary tales relating to Ferrari World, another pioneering enterprise that is allegedly cutting back on staff in the wake of lower than forecast results.

However, questions about the profitability of this specific venture are perhaps a little wide of the goal.
 
For RAK this is a flagship strategy to announce its arrival on the world stage, in much the same manner that F1 was used when Bahrain became the first country in the region to welcome motorsport to the Middle East.  According to the most cautious of reports, F1 and its entourage generates $400 million income for Bahrain every time it rolls into town. RAK will be hoping for similar results.

By way of example, in the days following the official announcement of this project at the Santiago Bernabeu, apparently over 27 million web pages contained comments relating to this vision.

The Ruler of Ras Al Khaimah, Shaikh Saud bin Saqr Al Qassimi, is fully supportive of the project and spoke about the shared vision with Real Madrid, particularly how they aim to attract one million visitors a year following completion.
RAK is welcoming the leading brand in world football which, according to surveys, has more supporters than any other club. 

Approximately half of their millions of followers are based in Asia. Spanish football is also, according to a recent article in GulfWeekly, the most popular league in the Middle East. With the distribution of television income in Spain heavily weighted in favour of Real and Barcelona they are virtually guaranteed European competition and further riches.
 
While not as well known for developing young players as their bitter rivals, the club’s continued strategy of lavishing millions of euros on the highest-profile players, ensures that RAK will benefit from the razzmatazz that accompanies every move.

Real Madrid will also benefit from a visionary government that will make the club the centrepoint of an investment quest away from other competitive academies in Dubai. 

The football giants also have a location that bridges their European and Asian fan bases (through the ceramics capital of the region to China) and, if they are able to deliver on their promises, they will be aiming to draw just a small percentage of the 50 million visitors that come through Dubai airport, only an hour’s drive away.

The UAE is also suffering from various escalating health problems. They are ranked second globally for diabetes with nearly 20 per cent of the population and second regionally for obesity with over 15 per cent of nationals being considered to be heavier than overweight. Smoking is also an endemic concern.

Bearing this in mind I was keen to discuss with Shaikh Mohammed and other members of the UAE Football Association, how this project could be used to promote healthier lifestyles.
 
They discussed their unified belief that all of the top clubs should extend their social footprint to promote well-being among the young.

Former star Emilio Butragueno, as sharp in his role as director of institutional relations as he was with his shooting, endorsed this view, stressing the importance of encompassing the local youth within this project.

Louis-Armand de Rouge, CEO of RAK Marjan Island Football, added that Real Madrid aims to develop the philosophy of encouraging children onto the park and into the classroom, believing that physical well-being and better education are mutually beneficial.
 
However, a cautionary tale from the Ice Land iceberg, on the balance between what is visible on the surface and the real  mass that lurks beneath.
 
At this stage the visionaries of RAK and Real Madrid should be applauded for a remarkable initiative that is in keeping with the Los Galacticos-era of the club’s president Florentino Perez.
 
Yet, the importance lies in the delivery – let’s hope the desired social footprint evolves for the benefit of all.







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