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13 April 2024

Rak Properties profit rises 35.6% to Dh147m

By Staff

Net profit of Rak Properties in 2012 rose 35.6 per cent to reach Dh147 million compared to Dh108.4 million in 2011.

Mohammad Sultan Al Qadi, Managing Director and CEO of Rak Properties, expressed optimism that the real estate outlook for the year 2013 is promising. He also announced that the company has ambitious plans to develop a five-star hotel in Mina Al Arab as well as residential buildings in Abu Dhabi, subject to availability of finance at attractive terms.

The increase in profit for 2012 fiscal year came from increased demand for Rak Properties’ key projects, including Mina Al Arab, Julphar Towers and Rak Tower in Abu Dhabi as well as its early settlement of its Dh184 million loan with Ras Al Khaimah Investment and Development Office of Ras Al Khaimah Government. The positive results come at a time when the real estate industry in Ras Al Khaimah is witnessing overwhelming demand from investors, in the face of lucrative opportunities in shopping, retail and hospitality sectors.

Sales volumes in 2012 reached Dh596.3 million compared to previous year’s figure of Dh530.2 million, an increase of 12.5 per cent. Rak Properties board of directors has proposed a five per cent cash dividend for fiscal year ended December 31, 2012.

Al Qadi said: “In 2012, we handed over apartments in buildings constructed in the Lagoon Precinct (P2) as well as the balance units in the VILLA Precincts 4 & 5, Julphar Towers (Residence and Office), and Rak Tower in Abu Dhabi. The trading of residential, office units along with retail space gained momentum during 2012. The balance retail space is targeted to be leased in 2013.”

Al Qadi said that his company anticipates remarkable financial results for first quarter of 2013, based on its strong and ambitious plans for the coming period.