At its Annual General Meeting, RAK Properties, Ras Al Khaimah’s publicly-listed property developer, approved an increase in its capital by US $250mn and bolstered the ownership stake currently held by government.
The shareholders approved the significant capital increase with the issuance of 920 million new shares, each with a nominal value of AED1. This move effectively welcomed the Government of Ras Al Khaimah as a strategic shareholder, increasing its stake in the company from 5% to approximately 34% 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.”
“Our remarkable financial results in 2023, where we realised $762.4mn 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, and we’re committed to ensuring that this trust is met with continued financial growth and success.”
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Source: ME Construction News
