It was revealed on Tuesday that the Ras Al Khaimah government had raised its ownership of RAK Properties from 5% to 34%.
According to a statement, the choice was made at the company’s annual general meeting on March 20. With the issuance of 920 million new shares, each with a nominal value of Dh1, shareholders approved a significant capital increase that increased the company’s capital by Dh920 million. With this move, the Government of Ras Al Khaimah is welcomed as a strategic shareholder and will increase its stake in the company from 5% to roughly 34% post-issuance, subject to the Securities and Commodities Authority’s approval.
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 distribution of cash dividends, which total Dh60,000,000 at three fils per share, or three percent of the capital, was also approved by the AGM. Bonus shares worth Dh80,000,000,000, or 4% of the company’s capital, will also be distributed to shareholders.
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. I welcome their collective experience which will be instrumental in guiding the company through the evolving landscape of the real estate sector in the Ras Al Khaimah.”