Listen to this article  |
RAK Properties, Ras Al Khaimah’s leading publicly listed property developer, has released its consolidated financial results for the third quarter of 2024. The impressive results highlight significant growth in revenue, profit, and development pipeline, underscoring the company’s strong market positioning and its commitment to creating world-class communities in Ras Al Khaimah. These financial gains are reflective of RAK Properties’ strategic expansion across residential, commercial, and hospitality projects, particularly within its flagship development, Mina Al Arab.
Record-Breaking Revenue Growth in Q3 2024
RAK Properties reported an impressive 30% year-on-year increase in revenue for Q3 2024, reaching AED 891 million, a testament to its successful strategic approach and diversified project portfolio. The company’s growth is anchored in the strength of the Ras Al Khaimah market and its appeal to both local and international investors.
Operational Efficiencies Leading to Profit Growth
The quarter saw profit before tax rise by 27%, reaching AED 133 million. This increase highlights RAK Properties’ focus on operational efficiency and effective management of resources. Additionally, gross profit surged by 46%, further emphasizing the company’s commitment to maximizing shareholder value.
Abdulaziz Abdullah Al Zaabi, Chairman of RAK Properties, reaffirmed this commitment, stating, “Our third quarter results reaffirm the strength of our business model and the effectiveness of our strategic vision.” He credited the company’s growth trajectory to the dedication of its team and close collaboration with the Ras Al Khaimah government in enhancing the Emirate’s appeal as a premier destination.
Total Assets and Equity Showcase Robust Financial Health
As of Q3 2024, RAK Properties’ total assets increased by 20% to AED 7.74 billion, compared to AED 6.46 billion as of December 31, 2023. Total equity also rose significantly to AED 5.34 billion, reflecting the company’s strong financial footing and strategic positioning to capture future growth opportunities in the Ras Al Khaimah real estate market.
Residential Developments: Expanding Mina Al Arab’s Appeal
RAK Properties has made substantial strides in its residential projects across Hayat Island, Mina Al Arab. This includes fully sold-out towers and upcoming high-end villas, indicating strong market demand for well-planned waterfront living spaces.
Bay Residence Phase 1 & 2, Hayat Island, Mina Al Arab
- Construction Progress: The two towers in Bay Residence are progressing as per the development plan, with all 324 units fully sold out.
- Phase 2 Completion: Phase 2, located near Intercontinental Hotel Ras Al Khaimah, is on track for a handover in early 2025, adding another landmark to Mina Al Arab’s waterfront offerings.
Gateway Residence 2
- Positioned at the entrance of Hayat Island, this 8-storey residential tower has witnessed robust demand, with all 146 apartments sold. Construction remains on schedule, reflecting the project’s appeal and RAK Properties’ commitment to timely delivery.
Marbella Villa Phase 2
- Luxury Villas and Townhouses: This phase comprises 89 villas and townhouses, progressing well towards an early handover. The Marbella Villa series continues to attract buyers looking for exclusive luxury in a serene waterfront setting.
Bayviews Towers and Porto Playa
- Rapid Sales: Bayviews, consisting of 344 units, sold out within hours of its launch, highlighting RAK Properties’ ability to meet market demand.
- Ellington Partnership: The construction of Porto Playa, in partnership with Ellington Properties, marks Ellington’s entry into the Ras Al Khaimah market, underlining the region’s growing appeal.
Hospitality Ventures: Expanding Ras Al Khaimah’s Luxury Market
RAK Properties has strategically positioned itself within the hospitality sector, enhancing Ras Al Khaimah’s appeal as a luxury destination with two key assets.
Intercontinental Ras Al Khaimah Mina Al Arab Resort and Spa
This 351-key hotel continues to deliver strong financial returns, with high occupancy rates attributed to its unique offerings and beachfront location on Hayat Island. Its success is a testament to RAK Properties’ prowess in developing and managing premium hospitality assets.
Anantara Mina Al Arab Resort
The 174-key Anantara resort began operations on January 2, 2024, and has already outperformed financial expectations. Its success reflects the rising demand for five-star accommodations in Ras Al Khaimah, reinforcing RAK Properties’ leadership in hospitality developments.
Future Projects: Building for Tomorrow with Strategic Partnerships
RAK Properties has aligned itself with renowned global brands, further strengthening its brand presence and appeal.
Nikki Beach Resort and Beach Club
In partnership with Nikki Beach Global, RAK Properties will bring Ras Al Khaimah’s first branded resort and beach club to Mina Al Arab. This project will enhance Mina Al Arab’s status as a high-end lifestyle destination, catering to an elite clientele seeking luxury and exclusivity.
Staybridge Suites and Anantara Branded Residences
The expansion of RAK Properties’ strategic partnership with IHG Hotels & Resorts will see the introduction of Staybridge Suites at Hayat Island, providing luxurious extended-stay options for discerning guests. Additionally, the upcoming Anantara Branded Residences further solidifies Mina Al Arab’s reputation as a luxury hub, offering residents unparalleled access to resort-style living.
RAK Properties’ Vision: A Premier Destination for Waterfront Living
The Q3 2024 results showcase RAK Properties’ commitment to delivering a premium living experience in Ras Al Khaimah. Sameh Muhtadi, CEO of RAK Properties, stated, “As the leading community developer in the Emirate, we are committed to delivering projects that exemplify the highest standards of urban island living.”
RAK Properties’ flagship development, Mina Al Arab, stands as a testament to its ambition to create a vibrant community hub that offers a unique blend of residential, commercial, and leisure facilities. The company’s strategic partnerships and efficient project execution reinforce its dedication to shaping Ras Al Khaimah as a sought-after destination.
Conclusion
RAK Properties’ Q3 2024 financial performance and development achievements highlight the company’s ability to balance growth, strategic expansion, and community-focused living. The consolidated results underscore RAK Properties’ commitment to quality, operational excellence, and timely delivery across its projects, positioning it as a leader in the Ras Al Khaimah real estate market.
