In a strategic financial maneuver, the Government of Ras Al Khaimah has substantially increased its stake in RAK Properties, the emirate’s leading real estate company. The announcement, made this Tuesday, marks a significant shift in the emirate’s involvement in the real estate sector, raising its stake from a modest five percent to a commanding 34 percent.
This pivotal decision emerged during the company’s annual general meeting on March 20, signaling a new era in RAK Properties’ trajectory. Shareholders ratified a major capital injection involving the issuance of 920 million new shares, each valued at Dh1. This substantial increase in capital, amounting to Dh920 million, facilitates the government’s escalated stake in the company. This shift awaits final approval from the Securities and Commodities Authority, post which the Government of Ras Al Khaimah will emerge as a strategic shareholder.
Sameh Muhtadi, CEO of RAK Properties, expressed his optimism about the government’s increased involvement. He articulated that this decision reflects a deep-seated confidence in the company’s long-term vision and growth strategy. According to Muhtadi, this strategic alignment not only strengthens the company’s financial base but also syncs it more closely with the developmental ambitions of the emirate. He highlighted a key aspect of this partnership: an agreement for in-kind contributions of land at reduced prices, which will expand access to prime real estate and diversify the company’s landbank. This initiative is pivotal for RAK Properties’ expansion, fueling future development projects that cater to the community’s evolving needs and market demands in Ras Al Khaimah.
The annual general meeting also approved the distribution of cash dividends, amounting to three percent of the capital, equating to Dh60 million, or three fils per share. Additionally, shareholders are set to benefit from bonus shares totaling four percent of the company’s capital, representing Dh80 million.
RAK Properties’ impressive financial performance in 2023, boasting Dh2.8 billion in sales and a significant increase in net profits, enabled this rewarding of shareholders with dividends. Muhtadi emphasized the shareholders’ confidence in the company, underscoring a commitment to continuous financial growth and success. He welcomed the strategic guidance of the newly elected board, whose collective expertise is anticipated to be instrumental in navigating the evolving dynamics of the real estate sector in Ras Al Khaimah.
This development heralds a new chapter for RAK Properties, bolstered by the government’s increased stake and strategic partnership. It signifies a renewed focus on leveraging real estate as a key driver of economic growth and community development in the emirate, positioning Ras Al Khaimah for robust development in the years ahead.
