Ras Al Khaimah / Emirates Business
RAK Properties PJSC, Ras Al Khaimah’s largest property developer listed on the Abu Dhabi Stock Exchange, revealed continued growth and increased profit margins in 2016 following 12 months of key announcements and operational achievements.
The company, which has been leading the residential and commercial development of Ras Al Khaimah while rolling out a series of additional projects across the United Arab Emirates, revealed its end-of-year financial results following a board meeting earlier this week. RAK Properties achieved revenues in excess of AED 390 million in 2016, a year-on-year increase of 5.98 per cent on the 2015 revenues of AED 368 million.
The reported 2016 results reveal a 9.38 per cent increase in net operating profits compared to the 2015 â€“ up to AED175 million from AED160 million in 2015. As of December 31 2016, RAK Propertiesâ€™ total assets are valued at AED 4.99 billion, an increase of 5.05 per cent on the 4.75 billion of total assets reported in 2015.
Commenting on the results, Managing Director and CEO Mohammed Sultan Al Qadi, said: â€œLast year presented a number of achievements for RAK Properties, including the announcement of further developments within Mina Al Arab.
We have already started this year on a strong footing with further hand overs and launches expected, 2017 promises greater success for RAK Properties, with a long term plan to launch projects worth AED 5 billion until 2021.â€
RAK Properties formally handed over the second phase of Flamingo Villas in October, two months ahead of schedule, marking a further milestone delivery within Ras Al Khaimahâ€™s Mina Al Arab community.
Following the announcement of several international hotel brands choosing Mina Al Arab for their first forays in Ras Al Khaimah, this year has already witnessed progress on enabling work at the 306-key Anantara Mina Al Arab, Ras Al Khaimah, as well as the enabling works contract for the 350-key InterContinental Ras Al Khaimah Mina Al Arab Resort in being awarded.
Forming a key part of the developmentâ€™s hospitality portfolio, these two properties are envisioned to generate sustainable and recurring income on a long term basis.
Throughout 2017, RAK Properties is expected to announce additional residential, hospitality and retail projects to further its growth, each timed and developed upon the real estate market outlook, funding options, demand and supply parameters.