RAK Properties delivers robust third quarter results driven by strategic project developments and continued growth

• Gross Profit increase by 46% to AED 342 million
• Profit before tax increase by 27% to AED 133 million
• Partnership with the Commercial Bank of Dubai to secure AED 2 billion financing facility to fuel ambitious growth plans in Mina Al Arab and commitment to developing green buildings
• Final phase of QDM releases following successful launch of project during 2024 and rapid sell-out of released units

Ras Al Khaimah, UAE: RAK Properties (ADX: RAKPROP), Ras Al Khaimah’s leading publicly listed property developer, has released its consolidated financial results for the third quarter of 2024, showcasing consistent financial growth and strategic advancements.

RAK Properties recorded remarkable growth across metrics, including a 30% year-on-year increase in revenue to AED 891 million. This growth is a testament to the successful execution of the company’s strategic vision for Mina Al Arab and the diverse appeal of its project portfolio across residential, commercial, and hospitality projects, which continue to attract robust interest from both investors and end-users.

The increase in profit before tax and gross profit, both by 27% and 46% respectively compared to last year, reflects RAK Properties’ operational efficiencies, as well as its continued progress across all projects and investment in development pipeline to cater to Ras Al Khaimah’s growing market demand.

Abdulaziz Abdullah Al Zaabi, Chairman of RAK Properties, said: “Our third quarter results reaffirm the strength of our business model and the effectiveness of our strategic vision. We take pride in maintaining this growth trajectory, which reflects the dedication and efforts of our team in positioning Ras Al Khaimah as a premier destination. We remain confident in our capacity to adapt to market dynamics and capitalise on emerging opportunities, while collaborating closely with the Government of Ras Al Khaimah to enhance the quality of life within the Emirate. We are deeply committed to our shareholders, partners, and customers, and we extend our gratitude for their continued trust and support.”

Sameh Muhtadi, CEO of RAK Properties, commented: “We are pleased to report strong growth across key financial metrics in the third quarter of 2024. This success is driven by continued progress across our portfolio, enhanced operational efficiencies, and the growing appeal of Ras Al Khaimah’s market, highlighting the strength of our brand and diverse offerings.  As the leading community developer in the Emirate, we are committed to delivering projects that exemplify the highest standards of urban island living, as demonstrated by our flagship Mina Al Arab development. Looking ahead, we will remain focused on delivering exceptional value to our stakeholders and enhancing our community offerings.”

Q3 2024 Key Financial Highlights:

• Revenue increased by 30% to AED 891 million at Q3 2024 vs AED 686 million for the same period last year.
• Profit before tax increased by 27% to AED 133 million at Q3 2024 vs AED 105 million for the same period last year.
• Total Assets increased to 20% to AED 7.74 billion as at Q3 2024 vs AED 6.46 billion as at 31 December 2023.
• Total Equity stood at AED 5.34 billion as at Q3 2024 vs AED 4.30 billion as at 31 December 2023

Development Highlights

Residential:

1. Bay Residence, Hayat Island, Mina Al Arab, Ras Al Khaimah – Beach front residential buildings.
   1. Construction of these 2 towers is progressing as per the development plan.
   2. All 324 units within the two towers have been fully sold out.

1. Bay Residence Phase 2, Hayat Island, Mina Al Arab, Ras Al Khaimah – Beach front residential buildings.
   1. All 324 units within the 2 towers located next to Intercontinental Hotel Ras Al Khaimah has been successfully sold. Handover is scheduled for the first half of next year.
   2. Construction of these 2 towers is progressing as per the development plan.

1. Gateway Residence 2, Hayat Island, Mina Al Arab, Ras Al Khaimah – Residential building.
   1. Construction of this 8-storey tower at the entrance of Hayat Island is progressing well as planned.
   2.  All 146 apartments in this tower have been fully sold out.

1. Marbella Villa Phase 2, Mina Al Arab, Ras Al Khaimah – Luxury Villas and Townhouses.
   1. Construction of these additional 89 villas and townhouses is on track for early handover.

1. Bayviews, Hayat Island, Mina Al Arab, Ras Al Khaimah – Residential Buildings.
   1. Construction of these 2 towers commenced at the end of 2023.
   2. All 344 apartments within the 2 towers sold out within few hours of the launch.

1. Porto Playa, Hayat Island, Mina Al Arab, Ras Al Khaimah – Residential building.
   1. Ellington Properties, in collaboration with RAK Properties, has commenced construction on Porto Playa, a waterfront residential development.
   2. This groundbreaking marks Ellington’s strategic expansion into Ras Al Khaimah.

1. Cape Hayat, Hayat Island, Mina Al Arab, Ras Al Khaimah – Residential Buildings.
   1. The sale of these 4 towers consisting of 678 apartments was launched last year. 89% of the project was sold as of Q3 2024.
   2. Project construction of these 4 towers commenced at the end of 2023 and is on track.

1. Quattro Del Mar, Hayat Island, Mina Al Arab, Ras Al Khaimah – Residential Buildings.
   1. The new project, featuring an integrated lifestyle hub with entertainment and world-class facilities, was launched at the beginning of this year. 70% of the launched inventory was sold as of Q3 2024.
   2. Piling has commenced for this project, with planned completion by the end 2026.

1. Granada II, Mina Al Arab, Ras Al Khaimah – townhouses.
   1. Phase 2 of Granada, consisting of 80 townhouses, was launched at the end of Q2 2024.
   2. The construction of the Granada extension project commenced, with planned completion in Q1 2026.

1. Edge, Raha Island, Mina Al Arab, Ras Al Khaimah – Residential Buildings.
   1. RAK Properties introduced a new luxury living experience in Raha Island with the launch of Edge, a yacht inspired waterfront residential tower comprising 237 units with a mix of studios, one-bedroom and two-bedroom apartments.
   2. Since its launch at the end of Q2 2024, 44% of the launched inventory has been sold as of Q3 2024.

1. NB Collection, Hayat Island, Mina Al Arab, Ras Al Khaimah – Exclusive beach front Villas.
   1. A bespoke collection of high-end beach front villas was introduced by RAK Properties and launched to the market at the end of Q2 2024.
   2. This collection consists of 11 high-end villas, with completion date expected at the end of 2026.

Hospitality:

1. Intercontinental Ras Al Khaimah Mina Al Arab Resort and SPA

The prestigious 351-key hotel situated on Hayat Island, Mina Al Arab, continues to demonstrate solid performance, achieving high occupancy rates and generating strong financial revenue.

1. Anantara Mina Al Arab Hotel and Resort, Ras Al Khaimah

The second 5 Star luxury hospitality asset with 174 keys opened its door and commenced operation on 02 January 2024. Results to date are ahead of targets.

Planned Projects:

1. RAK Properties partners with Nikki Beach Global to open first branded resort and beach club in Mina Al Arab, Ras Al Khaimah
2. RAK Properties has expanded its strategic partnership with IHG Hotels & Resorts with the introduction of Staybridge Suites at Mina Al Arab Hayat Island.
3. RAK Properties has expanded its partnership with Minor Hotels to introduce the upcoming Anantara Branded Residences, marking another significant milestone in RAK Properties’ vision to position Mina Al Arab as a leading global destination for luxury island living within a vibrant community hub.

About RAK Properties

Founded in 2005 under the visionary leadership of His Highness Sheikh Saud Bin Saqr Al Qasimi, Ruler of Ras Al Khaimah, RAK Properties is a leading real estate developer committed to producing exceptional and sustainable destinations. Specializing in contemporary and meticulously crafted communities, RAK Properties integrates excellence, innovation, and nature to create enriching lifestyles in alignment with the aspirations of tomorrow’s people.  

RAK Properties plays a pivotal role in achieving RAK Vision 2030, focusing on delivering economic, social, and environmental value, all aimed at enhancing lives and places, and contributing to the prosperous narrative of Ras Al Khaimah. 

Awards and recognitions

• Awarded ‘Developer of the Year’ 2023 by Construction Week Middle East. 
• Bay Views Residences won the ‘Best Residential Project’ at the Design Middle East Awards 2023, where the residential development was recognized as the region’s best design and architecture.  

Quattro Del Mar was awarded the Best Mixed-Used Project at the prestigious Pillars of Real Estate Awards 2024