RAK Properties has announced that its profits for 2024 will be reinvested into upcoming real estate projects in Ras Al Khaimah.

During its Annual General Meeting (AGM), shareholders approved all agenda items, including the company’s financial statements for the year ending December 31, 2024. The meeting reaffirmed RAK Properties’ commitment to long-term growth, driven by strategic project acceleration and the positive momentum in Ras Al Khaimah’s real estate sector.

Focus on Growth Over Dividends

Instead of distributing dividends this year, the company will prioritize reinvesting profits into high-potential developments. This approach aims to enhance sustainable returns and solidify its market position for the next decade.

With strong backing from the Ras Al Khaimah government, this reinvestment strategy ensures financial stability and supports large-scale projects like the flagship Mina masterplan. These efforts are designed to create thriving communities and maximize long-term value for shareholders.

Leadership Perspectives

Abdulaziz Abdullah Al Zaabi, Chairman of RAK Properties, highlighted the company’s impressive financial performance, crediting it to a clear vision and growing investor confidence in Ras Al Khaimah’s real estate market. He emphasized the Emirate’s expanding economy, government support, and its appeal as a global destination for tourism, investment, and premium waterfront living.

CEO Sameh Muhtadi echoed this sentiment, noting that 2024 marked a period of strategic planning and execution, laying the groundwork for transformative growth in 2025 and beyond. He reaffirmed the company’s commitment to reinvesting in new projects, enhancing asset value, and capitalizing on emerging opportunities across the region.

Record Financial Performance

RAK Properties reported a strong financial year in 2024:

• Revenue surged by 40% to AED1.4 billion ($381.2 million) from AED1 billion ($272 million) in 2023.
• Profit before tax grew by 52%, reaching AED308 million ($84 million) compared to AED202 million ($55 million) the previous year.
• Net profit increased by 39% to AED281 million ($76.5 million), up from AED202 million ($55 million) in 2023.

The company’s balance sheet remains robust, with total assets rising 24% to AED8.01 billion ($2.2 billion), supported by a land commitment from the Ras Al Khaimah government. Equity also increased to AED5.53 billion ($1.5 billion) from AED4.3 billion ($1.2 billion) in 2023.

Key AGM Resolutions

During the AGM, shareholders approved several key decisions, including:

• Approval of the financial and external auditor reports for 2024.
• Reinvestment of 2024 profits instead of issuing dividends.
• Board of Directors’ compensation and financial responsibilities.
• Reappointment of the external auditor for 2025.
• Allocation of AED1.2 million ($327,000) for community service contributions.

Future Expansion Plans

Looking ahead to 2025, RAK Properties is set to accelerate its development pipeline. The year kicked off with the successful launch of Mirasol, a resort-style residential project in Mina, which saw its first phase sell out rapidly.

Additionally, the company introduced SKAI, a dual-tower residential complex in the Harbour District, and unveiled plans for the Four Seasons Resort and Residences Ras Al Khaimah. This luxury destination will include 150 rooms, suites, and villas, along with approximately 130 private residences.

Beyond Mina, RAK Properties is focusing on landbank expansion to fuel long-term growth. Developments such as the Beach District and other strategic acquisitions will extend the company’s project pipeline over the next 10 to 15 years, ensuring diversification across residential, hospitality, and mixed-use sectors.

This strategic reinvestment plan reinforces RAK Properties’ role in shaping Ras Al Khaimah’s future as a leading real estate and tourism destination.