RAK Government Elevates Ownership in Premier Real Estate Firm
The Government of Ras Al Khaimah has significantly increased its ownership stake in RAK Properties from five percent to approximately 34 percent, marking a strategic move aimed at bolstering the company's growth trajectory.
This decision was reached during the company's annual general meeting held on March 20, where shareholders voted in favor of a substantial capital increase. The issuance of 920 million new shares, each valued at Dh1, resulted in a total capital infusion of Dh920 million, effectively enhancing the company's financial standing.
Pending approval from the Securities and Commodities Authority, this development solidifies the government of Ras Al Khaimah's position as a key shareholder in RAK Properties. Sameh Muhtadi, CEO of RAK Properties, underscored the significance of this move, emphasizing the confidence placed in the company's vision and long-term growth strategy by the government.
Muhtadi highlighted the strategic alignment between RAK Properties and the developmental goals of Ras Al Khaimah, stating that the increased capital infusion not only strengthens the company's balance sheet but also underscores its commitment to contributing to the emirate's progress. Additionally, Muhtadi emphasized the benefits of the government's support, particularly in terms of in-kind contributions of land at reduced prices.
Through this agreement, RAK Properties gains access to prime real estate, which is crucial for diversifying its landbank and fueling future development endeavors. This strategic approach ensures a sustainable pipeline of projects that are geared towards meeting the evolving needs of both the local community and the broader real estate market in Ras Al Khaimah.
Overall, the decision to increase the government's stake in RAK Properties reflects a shared commitment to driving economic growth and development in Ras Al Khaimah while also positioning the company for long-term success and resilience in the real estate sector.
