Revenue Breaks Records
RAK Properties has hit an amazing milestone. They ended 2024 year with an AED1.4 billion ($381 million) revenue. This is a 40% increase from last year. It’s a clear indicator that the real estate market in Ras Al Khaimah is growing year by year.
Profits Take Off
Not just in revenue but also in profits, the company has seen a significant boost. Their profit before tax has seen a 52% increase to AED308 million ($84 million). This marks a big jump from AED202 million ($55 million) in 2023.
RAK Properties also did well in net profit. It went up 32% to AED280 million ($76 million). This growth shows the company’s ability to manage costs effectively while increasing revenue.
Expanding Asset Base
RAK Properties’ total assets have grown. They rose by 24% to AED8.01 billion ($2.2 billion) by the end of 2024. This boost in assets builds a solid base to grow and develop in the future.
Strong Equity Position
The company’s equity position has become much stronger. Total equity reached AED5.53 billion ($1.5 billion) at the end of 2024. This strong equity foundation gives RAK Properties the financial stability to take on big projects down the road.
Diverse Revenue Streams
RAK Properties doesn’t just sell properties. They’ve spread out their revenue sources. Money comes in from hotels, shops, and renting out places. This added AED261 million ($71 million) to their total cash flow. This mix-up of income sources helps to build a steady and tough money stream.
Leadership’s Perspective
Abdulaziz Abdullah Al Zaabi, chairman of RAK Properties, said he’s happy with how the company’s doing. He pointed out the big want for top-notch builds in Ras Al Khaimah. Al Zaabi also talked about how the company can spot what the market needs and make places people want.
CEO’s Insights
Sameh Muhtadi CEO of RAK Properties, talked about why the company did well. He said 2024 was a year to get ready for big growth in 2025. Muhtadi pointed to how Mirasol’s first part sold out. This was their first project in Mina in 2025. He saw this as proof that people want what they’re building.
Ambitious Project Pipeline
RAK Properties isn’t slowing down. They want to start about 12 projects worth AED5 billion ($1.36 billion) in Ras Al Khaimah in 2025. These projects will include villas and luxury apartments in the Mina main development.
Mirasol: A Look at What’s Coming
Mirasol stands out as one of the promising projects in the works. This seaside property will offer 339 units ranging from studios to apartments and duplexes. The company plans to hand over the keys in the first half of 2028, with unit prices averaging AED2,200 per square foot.
Funding the Next Steps
To back these big plans, RAK Properties has struck an AED 2 billion finance deal with the Commercial Bank of Dubai. This cash injection, along with their own funds, puts them in a strong position to bankroll their upcoming projects.
Why This Growth is Happening
Market Demands
The property market in Ras Al Khaimah continues to thrive. Apartment sale prices rose by 14% in the third quarter of 2024 compared to the year before. Al Hamra village experienced the biggest jump at 18%.
The Wynn Effect
The construction of the $3.9 billion Wynn Resorts in Ras Al Khaimah has an impact on increasing property demand. This huge project is three times larger than the Las Vegas resort, and draws interest and investment to the emirate.
Economic Growth
Ras Al Khaimah’s economy keeps growing, which helps the property market. More industries are opening every day. The emirate grants new licenses to companies setting up operations in the emirate. Fitch Ratings thinks RAK’s economy will grow by 6.2% in 2024 and 5% in 2025.
Meeting Market Needs
The Ras Al Khaimah property market has a big gap to fill. Right now, people want 40,000 new units. RAK Properties plans to build a lot, so it’s in a good spot to give people what they need.
International Appeal
RAK Properties’ developments appeal to buyers worldwide. In 2024, they made home sales to customers from Germany, the UK, France, the CIS countries, and the Levant region, along with local UAE buyers.
Welcoming Competition
The achievements of RAK Properties have drawn other developers to the emirate. Companies like Aldar Properties, Dubai Investments, Dar Global , and Damac Properties have also begun projects in Ras Al Khaimah. People see this increased competition as a good sign showing the market’s growing popularity.
Four Seasons Partnership
RAK Properties has joined forces with Four Seasons to build a high-end resort and private homes in Mina. This venture will have an impact on the area by providing about 150 rooms, suites, and villas, plus 130 private residences. This marks a big step forward for RAK Properties as it grows, and it will make Ras Al Khaimah even more attractive as a place for luxury stays.
Conclusion
RAK Properties’ strong financial results in 2024 mark just the start. The company has a solid lineup of projects and key partnerships, which gives it a good position to keep growing. If you’re considering investing or buying a home, you can see RAK Properties.
