RAK Government Boosts Stake in Emirate’s Leading Realtor: Power Move

Government of Ras Al Khaimah Amplifies Support for RAK Properties

The Government of Ras Al Khaimah (RAK) has demonstrated its commitment to the growth and development of the emirate by increasing its stake in RAK Properties, a leading real estate developer in the region. This strategic move marks a significant milestone in the partnership between the government and the private sector, signaling a new era of collaboration and expansion.

Strategic Investment and Growth Plans

The decision to enhance its ownership in RAK Properties reflects RAK government’s confidence in the company’s vision and long-term growth strategy. By increasing its stake from five percent to approximately 34 percent, the government aims to strengthen RAK Properties’ financial position and support its ambitious expansion plans. This strategic investment will enable RAK Properties to capitalize on emerging opportunities in the real estate market and drive sustainable growth in the emirate.

Capital Increase and Stake Enhancement

At the company’s annual general meeting, shareholders approved a significant capital increase, paving the way for the issuance of 920 million new shares. With each share valued at Dh1, the capital increase amounts to Dh920 million, effectively bolstering RAK Properties’ financial resources. Following the issuance of new shares, the government’s stake in the company will rise to approximately 34 percent, subject to approval from the Securities and Commodities Authority.

RAK Government

Confidence in Vision and Long-term Goals

Sameh Muhtadi, CEO of RAK Properties, expressed gratitude for the government’s support and highlighted the importance of the strategic partnership in driving the company’s growth. He emphasized that the capital increase and stake enhancement demonstrate the government’s confidence in RAK Properties’ vision and long-term goals. Muhtadi also highlighted the agreement with the government on in-kind contributions of land at reduced prices, which will enable the company to diversify its land bank and fuel future developments.

The government’s increased stake in RAK Properties will not only strengthen the company’s financial position but also align its interests more closely with the emirate’s developmental goals. With access to prime real estate and robust support from the government, RAK Properties is well-positioned to capitalize on growth opportunities and deliver value to its shareholders. The company’s commitment to rewarding shareholders is evident through the distribution of cash dividends equivalent to three percent of the capital and bonus shares amounting to four percent of the company’s capital.

The RAK government’s decision to raise its stake in RAK Properties is a testament to the strength of the partnership between the public and private sectors in driving economic growth and prosperity in Ras Al Khaimah. By empowering RAK Properties with enhanced financial resources and support, the government is laying the foundation for sustainable development and continued success in the real estate sector.