The government of RAK increases its share of ownership in RAK Properties

The government of Ras Al Khaimah has announced that it increased its share of ownership in RAK Properties from 5% to 34%. This decision was made during the company’s annual general meeting on March 20th. Shareholders approved the significant capital increase, resulting in the issuance of 920 million new shares with a nominal value of AED 1 (USD 0.27). This move will effectively raise the company’s capital by AED 920M (USD 250M). Pending approval from the Securities and Commodities Authority, the government of Ras Al Khaimah will become a strategic shareholder with a stake of approximately 34%.

Sameh Muhtadi, CEO of RAK Properties, expressed his confidence in this decision, stating that it demonstrates the trust placed in the company’s vision and long-term growth plan. He also highlighted the benefits of this move, including the government’s support in providing land at reduced prices, which will contribute to the company’s expansion and future developments. This strategic partnership will help RAK Properties to meet the Emirate’s developmental goals and the growing needs of both the community and the market in Ras Al Khaimah.

The general meeting of shareholders also approved the allocation of cash dividends equal to 3% of capital, totaling AED 60M (USD 16.3M) at a rate of three fils per share. Additionally, shareholders are set to receive bonus shares amounting to 4% of the company’s capital, totaling AED 80M (USD 22M).

Muhtadi expressed his gratitude for RAK Properties’ exceptional financial performance in 2023, which resulted in sales of AED 2.8B (USD 762M) and a significant increase in net profits. As a token of appreciation, the company decided to reward its shareholders with a dividend. The trust and confidence shown by the shareholders are highly valued, and RAK Properties is committed to ensuring continued financial growth and success. The newly elected board members will play a crucial role in guiding the company through the ever-changing real estate sector in Ras Al Khaimah; their collective experience is welcomed and will be instrumental in shaping the future of the company.