Ras Al Khaimah’s ‘haunted’ multi-million-dirham palace put up for sale

For decades, people in Ras Al Khaimah shared stories about an abandoned palace perched on a hill.

Rumours circulated of ghosts, strange noises and faces appearing in its windows. The stories persisted for so long that Al Qasimi Palace eventually became known as the “haunted palace of Ras Al Khaimah”.

Now, one of the UAE’s most distinctive properties is attracting interest from international investors.

The sprawling residence, originally built for the late Sheikh Abdulaziz bin Humaid Al Qasimi, is back on the market with a multimillion-dirham asking price.

The four-storey property has 35 rooms and an impressive collection of antique furniture, artworks and historical artefacts. According to Abu Bakr Siddiq, a luxury property consultant at Mehar Properties and the palace’s sales agent, construction began in 1975 and was completed 10 years later, in 1985.

The palace’s location may be as valuable as its history. It is about a 30-minute drive from Wynn Al Marjan Island, meaning the building, once surrounded by desert, now stands close to one of the main hubs driving Ras Al Khaimah’s tourism and property boom.

Global Investors Show Interest in Ras Al Khaimah Palace

Sadiq said inquiries from prospective buyers in Gulf countries, India and the UK came in almost immediately after a promotional video of the property went viral online.

Some see the building as a grand private residence, while others view it as an opportunity to establish a boutique hotel, themed tourist destination or redevelopment project near Al Marjan Island.

“People interested in Al Marjan Island and Wynn are aware of Ras Al Khaimah’s growth,” Sadiq told Arabian Business.

He added that several prospective buyers had discussed converting the existing building into a hotel that could use the longstanding stories and rumours surrounding the palace as part of its identity.

Others have proposed demolishing the existing building and using the land for a new commercial and tourism development.

For a developer, this presents a distinct choice: erase the palace’s past or turn it into a tourist attraction.

“Many European and American tourists enjoy these types of hotels,” Sadiq said of the possibility of preserving the palace and reopening it as a themed boutique hotel.

Inside the ‘Haunted’ Palace

Behind the building’s grand marble façade lies an interior blending Islamic, Moroccan, Persian and Indian design.

The palace’s rooms feature antique furniture, large murals, animal sculptures and European crystal chandeliers. A glass pyramid at the top of the building also channels daylight into the palace.

The furniture and objects inside the palace are not automatically included in the property sale. However, the seller is prepared to negotiate a complete package with a buyer who wants to preserve the palace with nearly all its contents.

Siddiq said the collection includes more than 50 pieces of furniture and decorative objects from Morocco and elsewhere, although it has yet to be formally valued.

The property’s vast scale and distinctive interior design have made it one of Ras Al Khaimah’s best-known buildings, while also helping fuel the stories surrounding it.

Siddiq, however, rejects those claims.

“It is not actually haunted,” he said.

He added that he had entered the building many times and had never encountered anything unusual. According to him, the origins of the legend are simpler than people might imagine.

When construction of the palace was completed, it stood in an area that was largely desert. It later remained unused, and the combination of isolation, darkness and an empty royal residence gave rise to the rumours.

“Everyone thinks this place is haunted, but no one has ever experienced anything of the sort,” Siddiq said. “Ask them what evidence they have, and they say, ‘I heard it from someone.’”

From Abandoned Building to Museum

A new chapter for the palace began in 2019, when businessman and art collector Tariq Ahmed Al Sharhan bought it from the late sheikh’s heirs, restored the building and opened its doors to visitors.

Known as the “Palace of Mystery,” the property has operated as a private museum, with visitors able to tour its interior for AED75, or about $20.

The tourist attraction is expected to remain open to the public while the sale process continues.

The restoration brought more people through the palace doors but did not entirely dispel its long-standing legend. Its reputation as a “haunted palace” is now both a challenge and a commercial advantage. Some buyers remain wary, while others see it as offering a ready-made identity for a tourism project that no conventional hotel could replicate.

Siddiq believes financial value will ultimately outweigh the ghost stories. He said ultra-luxury apartments and penthouses on Al Marjan Island can command prices in the tens of millions of dirhams, while the palace offers a large plot, a well-known building and a location close to the emirate’s most significant tourism development.

Until a final buyer signs the deal, the palace will continue to welcome curious visitors.

After that, its future could be as a home, a hotel or simply a highly valuable parcel of land.

The only certainty is that one of Ras Al Khaimah’s most enduring mysteries is now up for sale.