- Assess the broader economic impact of the government's increased stake in RAK Properties on the Ras Al Khaimah economy, including job creation, infrastructure development, tourism promotion, and overall socio-economic growth, contributing to the emirate's prosperity and competitiveness.
Ras Al Khaimah government to raise stake in RAK Properties to 34% from 5%
Dubai: The master-developer RAK Properties has won some timely financial muscle, with shareholders approving a rights issue and adding Dh920 million to its capital base. This will be done through issuing 920 million shares at Dh1 each.
Also, the Ras Al Khaimah government will raise its stake in the company from 5 per cent to around 34 per cent after the rights issue.
According to Sameh Muhtadi, CEO of RAK Properties, “The decision to increase our capital and enhance the Government of Ras Al Khaimah’s stake is a strong testament to the confidence placed in our vision and long-term growth plan. This strategic move not only fortifies our balance-sheet but aligns us even closer with the emirate’s developmental goals.
RAK Properties was founded in 2005.
Land at reduced price
“With the government’s support, we have an agreement on in-kind contribution of land at reduced prices, thus, enhancing access to prime real estate, paving the way for diversifying our landbank, essential for our expansion and fuelling future developments,” the CEO added. “This ensures a sustainable pipeline of projects that will contribute to meeting the growing needs of the community and the market in Ras Al Khaimah.”
The company will also distribute cash dividends of 3 per cent of the capital, amounting to Dh60 million at 3 fils per share.
Shareholders will also benefit from bonus shares of 4 per cent of the company’s capital, amounting to Dh80 million.
The company also got its first woman board member, Moza Mohammed Majid Salem Al Zaabi.
The real estate market in Ras Al Khaimah had been on a marked upturn, with a raft of freehold launches and steadily rising property values. It’s hospitality sector too has been on a sustained upturn, reaffirming the status of being one of the Gulf’s leading tourist spots.
RAK Properties has benefited from all of this, realising Dh2.8 billion in sales and with a sharp gain in 2023 net profit. This is now showing up in the payout to shareholders. “The confidence placed by the shareholders in RAK Properties is greatly valued, we’re committed to ensuring that this trust is met with continued financial growth and success,” said Muhtadi.
