The Ras Al Khaimah government will be expanding its stake in RAK Properties to 34 percent, it was announced on Monday, from a 5 percent stake earlier.
The decision comes following an approval from the country’s Securities and Commodities Authority.
The government had during the March annual general meeting expressed interest in increasing its stake, subject to ADX approval.
“The first quarter kicked-off with shareholder approval of the issuance of 920 million shares for the Government of Ras Al Khaimah, thus increasing its stake from 5 percent to approximately 34 percent post-issuance as a strategic shareholder,” said RAK Properties chairman Abdulaziz Abdullah Al Zaabi earlier this year.
Following the increase in stake, he said: “The government’s strategic investment and increased stake in RAK Properties underscore their belief in our vision. This collaboration will not only provide us with the resources to accelerate our growth and innovation but also reinforces our commitment to bringing luxury living to RAK. Together, we are poised to drive forward transformative economic, social, and environmental projects that will benefit Ras Al Khaimah.”
Strong Q1
RAK Properties earned a revenue of AED289.81 million ($79 million) in Q1 2024, a 12 percent increase from AED258.58 million in the year-ago period, underpinned by the ongoing demand for new project launches in Mina Al Arab.
Profit before tax grew to AED45.54 million, up on the AED44.60 million recorded in the same period last year.
Meanwhile, growth of total assets continued, reaching AED6.68 billion in Q1 2024, up from AED6.46 billion as at the end of the previous quarter.
Sturdy annual results
In financial year 2023, revenue surged to AED1,004.89 million, dwarfing the previous year’s AED408.22 million. Net profit climbed to AED201.82 million, a substantial rise from AED30.79 million in the prior year, while total comprehensive income rose to AED181.98 million, an increase from AED20.97 million.
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