RAK government raises stake in realtor
The Government of Ras Al Khaimah has increased its stake in RAK Properties from five per cent to 34 per cent, it was announced on Tuesday.
The decision was taken at the company's annual general meeting held on March 20, a statement said. Shareholders approved a significant capital increase with the issuance of 920 million new shares, each with a nominal value of Dh1, effectively raising the company's capital by Dh920 million. This move welcomes the Government of Ras Al Khaimah as a strategic shareholder, thereby increasing its stake in the company from five per cent to approximately 34 per cent post-issuance, pending approval from Securities and Commodities Authority.
Sameh Muhtadi, CEO of RAK Properties, said: “The decision to increase our capital and enhance the Government of Ras Al Khaimah's stake in RAK Properties is a strong testament to the confidence placed in our vision and long-term growth plan. This strategic move not only fortifies our balance sheet but aligns us even closer with the Emirate's developmental goals. “With the government's support, we have an agreement on in-kind contribution of land at reduced prices; thus, enhancing access to prime real estate, paving the way for diversifying our landbank, essential for our expansion and fuelling future developments. This ensures a sustainable pipeline of projects that will contribute to meeting the growing needs of the community and the market in Ras Al Khaimah.”
The AGM also approved the distribution of cash dividends equivalent to three per cent of the capital, amounting to Dh60,000,000 at three fils per share. Shareholders will also benefit from bonus shares of four per cent of the company's capital, amounting to Dh80,000,000.
Muhtadi said: “Our remarkable financial results in 2023, where we realised Dh2.8 billion in sales and a significant uptick in net profits, has allowed us to reward shareholders with a dividend. The confidence placed by the shareholders in RAK Properties is greatly valued, we're committed to ensuring that this trust is met with continued financial growth and success. Going forward, our continued success will be backed by the strategic oversight of our newly elected board, who bring together a wealth of expertise.”