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In the heart of the United Arab Emirates, Ras Al Khaimah stands out as a beacon of economic growth and development. At the forefront of this progress is RAK Properties, a pioneering publicly listed property developer that has recently concluded its Annual General Meeting (AGM) on March 20, 2024. This event marks a significant milestone in the company’s journey, signaling a resounding vote of confidence from its shareholders and setting the stage for continued success and innovation in the region’s real estate landscape.
Capital Increase and Strategic Partnerships:
One of the standout decisions made at the AGM was the approval of a substantial capital increase, with the issuance of 920 million new shares, each with a nominal value of one dirham. This move not only bolsters RAK Properties’ financial position but also solidifies its strategic partnerships, particularly with the Government of Ras Al Khaimah. Following the issuance, the Government’s stake in the company is set to increase from 5% to approximately 34%, subject to approval from the Securities and Commodities Authority.
Visionary Leadership:
Under the astute leadership of CEO Sameh Muhtadi, RAK Properties continues to chart a course of growth and innovation. Muhtadi’s vision for the company goes beyond mere profitability; it encompasses a commitment to long-term sustainability and alignment with the developmental goals of Ras Al Khaimah. The decision to increase capital and welcome the Government as a strategic shareholder reflects this vision, paving the way for mutually beneficial collaborations and ensuring the company’s continued success in the years to come.
Strategic Expansion and Diversification:
Central to RAK Properties’ growth strategy is the expansion and diversification of its land bank. Through agreements with the government, the company has secured access to prime real estate at reduced prices, enabling it to enhance its portfolio and pursue ambitious development projects. This strategic move not only mitigates risks associated with land acquisition but also positions RAK Properties as a key player in meeting the evolving needs of the community and the market in Ras Al Khaimah.
Shareholder Value Creation:
At the core of RAK Properties’ operations is a commitment to creating value for its shareholders. The approval to distribute cash dividends and bonus shares at the AGM underscores this commitment, providing tangible returns to investors while reinvesting in the company’s growth trajectory. With a track record of strong financial performance, including AED 2.8 billion in sales and increased net profits in 2023, RAK Properties remains dedicated to delivering sustainable returns and maintaining the trust and confidence of its shareholders.
Diverse and Inclusive Governance:
In addition to financial matters, the AGM also saw important strides in governance, including the election of the Board of Directors. Notably, the appointment of Ms. Moza Mohammed Majid Salem Al Zaabi as the company’s first female board member signals a commitment to diversity and inclusivity in leadership. With a wealth of expertise and diverse perspectives, the newly elected board is poised to provide strategic oversight and guidance, ensuring that RAK Properties remains agile and responsive to the dynamic real estate sector in Ras Al Khaimah.
Looking Ahead:
As RAK Properties embarks on its next phase of growth and development, the company is well-positioned to capitalize on emerging opportunities and navigate challenges with confidence. With the unwavering support of its shareholders, strategic partnerships with the Government of Ras Al Khaimah, and visionary leadership at the helm, RAK Properties is poised to continue shaping the future of real estate in the region and driving sustainable economic growth for the benefit of all stakeholders.
Conclusion:
In conclusion, the successful conclusion of RAK Properties’ Annual General Meeting marks a significant milestone in the company’s journey, underscoring its position as a visionary leader in Ras Al Khaimah’s real estate sector. With strategic initiatives such as the capital increase, strategic partnerships, and diverse governance, RAK Properties is poised for continued success and growth in the years to come, delivering value to shareholders and contributing to the socio-economic development of Ras Al Khaimah and beyond.
