Ras Al Khaimah Government Boosts Stake in RAK Properties

RAK Properties appoints main contractor for Bay Residences project

Ras Al Khaimah government to raise stake in RAK Properties to 34% from 5%.
RAK master-developer confirms Dh920m rights issue, dividends

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In a strategic maneuver poised to reshape the landscape of Ras Al Khaimah’s real estate sector, the government has sanctioned a significant increase in its stake in RAK Properties. This decision comes alongside a substantial rights issue, injecting Dh920 million into the master-developer’s capital base. Such a move underscores not only the confidence in RAK Properties’ long-term vision but also the alignment with Ras Al Khaimah’s developmental aspirations.

RAK Properties: A Brief Overview

Established in 2005, RAK Properties has emerged as a pivotal player in the region’s real estate domain. With a commitment to excellence and innovation, the company has carved a niche for itself, spearheading groundbreaking projects that redefine urban living.

Strategic Capital Injection: Fuelling Growth and Expansion

Capital Infusion Dynamics: The decision to embark on a rights issue, issuing 920 million shares at Dh1 each, signifies a strategic maneuver aimed at bolstering RAK Properties’ financial prowess.

Government’s Enhanced Stake: A Testament to Confidence

Visionary Leadership: Under the stewardship of CEO Sameh Muhtadi, RAK Properties has garnered unwavering support from the Ras Al Khaimah government. The decision to augment the government’s stake from 5% to 34% epitomizes a symbiotic relationship geared towards mutual prosperity.

Strategic Alignment: By fortifying the balance sheet and enhancing the government’s involvement, RAK Properties aligns seamlessly with the emirate’s developmental agenda, ensuring a harmonious synergy between public and private interests.

In-Kind Contribution: Leveraging Prime Real Estate

Government Collaboration: The in-kind contribution of land at reduced prices underscores a collaborative effort between RAK Properties and the government. This strategic alliance facilitates access to prime real estate, thereby catalyzing the diversification of the company’s landbank.

Fueling Future Developments: The infusion of prime real estate assets paves the way for an expansive portfolio of projects, poised to address the burgeoning needs of Ras Al Khaimah’s community and real estate market.

Tangible Benefits for Shareholders

Dividend Disbursement: In a gesture of appreciation towards its shareholders, RAK Properties announces a cash dividend of 3% of the capital, amounting to Dh60 million at 3 fils per share.

Bonus Shares Allocation: In addition to cash dividends, shareholders stand to benefit from bonus shares equivalent to 4% of the company’s capital, totaling Dh80 million. This strategic allocation underscores RAK Properties’ commitment to maximizing shareholder value.

Board Diversity: Embracing Inclusivity– In a landmark move, RAK Properties appoints its first woman board member, Moza Mohammed Majid Salem Al Zaabi. This appointment not only symbolizes a commitment to gender diversity but also heralds a new era of inclusive governance.

Market Dynamics: Real Estate Resurgence in Ras Al Khaimah

Upward Trajectory: Against the backdrop of a buoyant real estate market, Ras Al Khaimah has emerged as a beacon of economic resilience. The surge in freehold launches and escalating property values underscore the emirate’s growing prominence as a real estate hotspot.

Hospitality Sector Boom: Complementing its real estate resurgence, Ras Al Khaimah’s hospitality sector has witnessed an unprecedented upturn. With a diverse array of offerings and unparalleled hospitality, the emirate cements its status as a preferred tourist destination in the Gulf region.

RAK Properties’ Ascendancy: Capitalizing on Ras Al Khaimah’s economic resurgence, RAK Properties registers a commendable performance, recording Dh2.8 billion in sales and a substantial increase in net profit in 2023. Such milestones underscore the company’s pivotal role in driving economic growth and prosperity.

FAQs (Frequently Asked Questions)

  • What is the significance of the Ras Al Khaimah government’s decision to increase its stake in RAK Properties?
  • The government’s enhanced stake reflects a vote of confidence in RAK Properties’ long-term vision and strategic direction, aligning seamlessly with Ras Al Khaimah’s developmental goals.
  • How does the rights issue impact RAK Properties’ financial position?
  • By injecting Dh920 million into its capital base through a rights issue, RAK Properties fortifies its financial prowess, paving the way for future growth and expansion initiatives.
  • What are the tangible benefits for RAK Properties’ shareholders?
  • Shareholders stand to benefit from cash dividends amounting to Dh60 million and bonus shares totaling Dh80 million, underscoring the company’s commitment to maximizing shareholder value.
  • What role does board diversity play in RAK Properties’ governance framework?
  • The appointment of Moza Mohammed Majid Salem Al Zaabi as the first woman board member exemplifies RAK Properties’ commitment to fostering inclusivity and diversity in its governance structure.
  • How has the real estate market in Ras Al Khaimah evolved in recent years?
  • Ras Al Khaimah’s real estate market has experienced a resurgence, marked by a surge in freehold launches, escalating property values, and sustained growth in the hospitality sector, reaffirming the emirate’s status as a preferred investment destination.
  • What sets RAK Properties apart in the competitive real estate landscape of Ras Al Khaimah?
  • RAK Properties’ unwavering commitment to excellence, strategic collaborations with the government, and pioneering projects underscore its leadership position in Ras Al Khaimah’s real estate domain, driving economic growth and prosperity.

In essence, the Ras Al Khaimah government’s decision to bolster its stake in RAK Properties heralds a new chapter of growth and prosperity for the emirate’s real estate sector. With a strategic infusion of capital, collaborative partnerships, and a commitment to shareholder value, RAK Properties is poised to chart new horizons and redefine urban living in Ras Al Khaimah and beyond.

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