In a recent development unveiled on Tuesday, the Ras Al Khaimah government has significantly increased its stake in RAK Properties, raising it from a modest 5% to a substantial 34%.

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This strategic decision was ratified during the company’s annual general meeting held on March 20. The shareholders greenlit a noteworthy capital augmentation by authorizing the issuance of 920 million new shares, each bearing a nominal value of Dh1. This capital infusion amounted to a substantial Dh920 million increase in the company’s capital. Consequently, pending approval from the Securities and Commodities Authority, the Government of Ras Al Khaimah is poised to emerge as a key strategic stakeholder, boosting its ownership in the company to approximately 34%.

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Sameh Muhtadi, the CEO of RAK Properties, expressed his confidence in the move, stating, “The decision to bolster our capital and augment the Government of Ras Al Khaimah’s stake in RAK Properties underscores the trust in our vision and long-term growth strategy. This strategic maneuver not only bolsters our financial position but also aligns us more closely with the developmental objectives of the emirate.”

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Muhtadi further elaborated on the benefits of the government’s increased involvement, highlighting agreements on in-kind contributions of land at reduced prices. This arrangement enhances access to prime real estate, facilitating the diversification of the company’s landbank and fueling future expansion efforts. These initiatives ensure a sustainable pipeline of projects aimed at addressing the evolving needs of the community and the market in Ras Al Khaimah.

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Moreover, during the AGM, the distribution of cash dividends amounting to Dh60,000,000, equivalent to three percent of the capital, was approved. Additionally, shareholders endorsed the allocation of bonus shares valued at Dh80,000,000,000, constituting 4% of the company’s capital.

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Muhtadi emphasized the company’s stellar financial performance in 2023, marked by Dh2.8 billion in sales and a significant surge in net profits. He expressed gratitude for the shareholders’ confidence and pledged to uphold it by ensuring continued financial growth and success. Moving forward, Muhtadi underscored the strategic oversight of the newly elected board, comprising seasoned professionals whose expertise will play a pivotal role in navigating the dynamic landscape of the real estate sector in Ras Al Khaimah.