April 23, 2024

RAK Properties AGM Approves Strategic Government Partnership

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Sameh Muhtadi, CEO of RAK Properties. Image Courtesy: RAK Properties

RAK Properties PJSC (ADX: RAKPROP), Ras Al Khaimah’s pioneering publicly listed property developer, has successfully concluded its Annual General Meeting (AGM) held on 20 March 2024. Industry sources added that with a robust shareholder turnout, all proposed resolutions were supported, directing confidence in the company’s strategic direction and governance, following what has been a remarkable year.  

Sameh Muhtadi, CEO of RAK Properties, remarked, “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.”

Welcoming the successful outcomes of the AGM, Mr Muhtadi stated, “Our remarkable financial results in 2023, where we realized AED 2.8 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, and 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.” 

Industry sources added that notably, shareholders had approved a significant capital increase with the issuance of 920 million new shares, each with a nominal value of one dirham, effectively upping the company’s capital by AED 920 million. This initiative welcomes the Government of Ras Al Khaimah as a strategic shareholder, thereby surging its stake in the company from 5% to approximately 34% post-issuance, pending approval from the Securities and Commodities Authority.   

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