Ras Al Khaimah Govt to Increase RAK Properties Stake to 34%

RAK Properties, a prominent master-developer, has received shareholder approval for a significant rights issue, injecting Dh920 million into its capital reserves. This capital infusion will be accomplished through the issuance of 920 million shares at Dh1 each.

Notably, the Ras Al Khaimah government intends to bolster its ownership in RAK Properties from 5% to approximately 34% following the rights issue, signaling a deeper alignment with the company's strategic objectives.

According to Sameh Muhtadi, the CEO of RAK Properties, this move underscores the confidence in the company's vision and long-term growth strategy. Muhtadi highlights the pivotal role of this capital enhancement in fortifying the company's financial standing while reinforcing its commitment to Ras Al Khaimah's developmental goals.

Furthermore, RAK Properties has secured government support through an agreement for the in-kind contribution of land at reduced prices. This strategic partnership will enable the company to diversify its land bank, facilitating future expansion and development initiatives crucial for meeting the region's evolving real estate demands.

In addition to the rights issue, RAK Properties announced the distribution of cash dividends equivalent to 3% of the capital, amounting to Dh60 million, at 3 fils per share. Shareholders will also benefit from bonus shares representing 4% of the company's capital, totaling Dh80 million.

Moreover, the company appointed its first female board member, Moza Mohammed Majid Salem Al Zaabi, reflecting its commitment to diversity and inclusivity in corporate governance.

The real estate market in Ras Al Khaimah has witnessed significant growth, characterized by a surge in freehold launches and escalating property values. This buoyant market sentiment has extended to the hospitality sector, reinforcing Ras Al Khaimah's stature as a premier tourist destination in the Gulf region.

RAK Properties has capitalized on these favorable market conditions, achieving Dh2.8 billion in sales and recording a notable increase in net profit in 2023. The company's commitment to shareholder value is evident through its robust financial performance and strategic initiatives aimed at sustaining growth and success in the dynamic real estate landscape of Ras Al Khaimah.

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