In a significant development, the Ras Al Khaimah government has elevated its ownership of RAK Properties from 5% to 34%, marking a strategic move to bolster the emirate’s top real estate player.

During the company’s annual general meeting on March 20, shareholders approved a substantial capital increase through the issuance of 920 million new shares, each with a nominal value of Dh1. This capital infusion, totaling Dh920 million, solidifies the Government of Ras Al Khaimah’s position as a key stakeholder, increasing its ownership to approximately 34% post-issuance, pending approval from the Securities and Commodities Authority.

Read this also : UAE to Invest $953 Million in Housing for Citizens in Abu Dhabi

Sameh Muhtadi, CEO of RAK Properties, emphasized the significance of this decision, stating, “The decision to augment our capital and enhance the Government of Ras Al Khaimah’s stake underscores the confidence in our long-term growth strategy. This strategic alignment not only strengthens our financial foundation but also aligns us closely with the emirate’s developmental objectives.”

Read this also : Completion of First 920 Homes Marks Milestone in Sharjah’s Aljada Megaproject by Arada

Muhtadi further highlighted the government’s support through an in-kind contribution of land at reduced rates, facilitating access to prime real estate and diversifying the company’s landbank. This initiative is pivotal for expansion and future developments, ensuring a sustainable pipeline of projects to meet the evolving needs of the community and market in Ras Al Khaimah.

Additionally, the annual general meeting approved the distribution of cash dividends totaling Dh60 million, equivalent to three percent of the capital, and bonus shares worth Dh80 million, or 4% of the company’s capital, to shareholders.

Read this also :

Muhtadi expressed gratitude for shareholders’ trust and confidence, citing the company’s robust financial performance in 2023, which saw Dh2.8 billion in sales and a notable increase in net profits. He affirmed RAK Properties’ commitment to delivering continued financial growth and success, backed by the strategic oversight of the newly elected board, comprising seasoned professionals poised to navigate the evolving real estate landscape in Ras Al Khaimah.