RAK firm to start projects worth Dh2bn
RAK Properties will launch six new projects in the UAE worth Dh2 billion in the next 10 months. The company plans to build two residential buildings in Dubai, two in Abu Dhabi and two mixed-use properties in Ras Al Khaimah.
“The property market in Dubai – especially the residential sector – is booming,” RAK Properties’ Managing Director and CEO Mohamed Sultan Al Qadi told Emirates Business. “With the six new projects our investment portfolio will increase from the present Dh13bn to Dh15bn. We will be increasing our level of investment to Dh50bn in the next 10 years.”
The firm has announced the first phase of its international expansion plans. Al Qadi, speaking at the International Property Show in Dubai, said the company was focusing on developing residential, commercial and hospitality projects in Morocco, Egypt and Sudan.
“We conducted several studies before launching internationally. It was quite easy to understand the laws and regulations of the Arab countries. Our plans include building hotels, shopping malls and commercial and residential buildings. We are still finalising how much land we will acquire.”
The Moroccan projects will be in Marrakech and Rabat and the one in Sudan in Khartoum. The location for the Egyptian project has not yet been decided.
“We are looking towards further global growth,” said Al Qadi. “We are in advanced talks with officials in several countries. Our next stops will be Georgia, Tanzania and Iraqi Kurdistan. We have been doing a lot of groundwork to study these markets and are working with our partners to identify growth opportunities that have minimal risk. According to reports there is high demand for both office and residential buildings in Kurdistan.”
RAK Properties recently reported net profits of Dh496 million for its second financial year, which ended on December 31, 2007. The firm achieved sales worth Dh1,083m – an increase of 288 per cent compared to 2006.
Meanwhile, RAK Properties has sold 80 per cent of Julfar Towers, a Dh500m office-cum-residential development 4km north of Ras Al Khaimah. The project, which was launched in February 2006, features twin 43-storey towers.
Al Qadi said all the phases of the Dh10bn Mina Al Arab resort launched so far had sold out. It was announced in May 2006.
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