In the third quarter of 2023, RAK Properties reported a 282 percent increase in net profit to Dh105.17 million. This was fueled by the introduction of new projects, which resulted in a 137% increase in revenue to Dh685.56 million.
The Ras Al Khaimah-based property developer attributed the strong set of results to “continued robust demand” for its “newly released residential mixed-use projects”. During the quarter, it experienced “intensified demand for its projects in both Abu Dhabi and Ras Al Khaimah, underscoring the strong interest in the company’s offerings.”
“Our focus this year has been on bringing to life our vision for Mina Al Arab as the leading lifestyle destination in Ras Al Khaimah. Our performance this quarter reflects the speed with which we are able to deliver on our development rollout plan”– Sameh Muhtadi, CEO of RAK Properties
“The opening of the 5-star Anantara Resort & SPA end of this year will add considerable additional appeal to our overall hospitality offering on Mina Al Arab, and our occurring revenue streams,” Muhtadi further added. “As we continue our growth trajectory, Nikki Beach Resort & Spa Ras Al Khaimah which was announced earlier represents a pivotal component of RAK Properties’ expansive master plan for Mina Al Arab.”
Additionally, revenues for the first nine months of fiscal 2023 were Dh1.5 billion, while third-quarter operating profit increased by 141% from the same period last year to Dh172.2 million.
Sales boom
Over 94% of the sold units at the Julphar Residence apartment project on Reem Island in Abu Dhabi have been turned over, according to the firm, and all of the units that were released have been sold out.
The developer also mentioned that over 90% of the luxury villas and townhouses at Marbella Villa Phase 2, Mina Al Arab, have already been sold, and work on constructing an additional 89 of them is currently underway. “Bayviews, Hayat Island, Mina Al Arab, the sale of two residential towers, consisting of 344 apartments, was launched at the end of the second quarter, selling out within a few hours. Construction is planned to commence in December,” the company said.
The sale of four residential buildings totaling 678 units at Cape Hayat, Hayat Island, Mina Al Arab, began at the end of the quarter, but it was observed that Cape Hayat’s financial contribution had not yet been reflected in the results for the third quarter.
Additionally, RAK Properties and Nikki Beach Global collaborated to launch Mina Al Arab, Ras Al Khaimah’s first and only branded hotel resort.