RAK Properties Sees 19% Revenue Growth to $166.1 Million on Strong Sales
RAK Properties has reported a strong financial performance for the first half of 2024, achieving a 19% increase in revenue, which reached AED610 million ($166.1 million). This growth was primarily driven by heightened demand across its comprehensive property portfolio, spanning residential, commercial, and hospitality sectors. The company’s ability to cater to diverse market needs has been instrumental in driving this revenue surge.
In addition to revenue growth, the company recorded a substantial rise in gross profit, which climbed 40% year-on-year to AED228 million ($62.1 million). This marked improvement from AED163 million ($44.4 million) in the same period last year highlights the company’s enhanced operational efficiency and effective cost management. Profit before tax also experienced an 11% increase, totaling AED98 million ($26.7 million), reflecting the company’s solid financial footing.
Asset Expansion and Strategic Government Involvement
The company’s total assets saw a notable increase, growing to AED7.79 billion ($2.12 billion) by the end of the first half of 2024, up from AED6.46 billion ($1.76 billion) at the end of the previous year. This expansion in assets underscores the company’s ongoing investment in its property portfolio and the overall growth of its business operations.
A key development during this period was the increase in the Government of Ras Al Khaimah’s stake in the company to 34%. This strategic move signals strong governmental support and confidence in the company’s long-term growth prospects. The increased stake also reflects the government’s commitment to fostering the growth of the real estate sector in the region.
Strategic Outlook and Future Growth Plans
The leadership team at RAK Properties emphasized the sustained growth achieved in the first half of 2024, driven by robust demand across its varied property offerings. The company’s strong presence in the market has been further reinforced by the growing global interest in its properties, particularly within the hospitality sector, which has shown exceptional performance.
Looking forward, RAK Properties remains confident in its ability to continue delivering strong financial results. The company has several new projects in the pipeline, which are expected to drive future growth and further strengthen its market position. The leadership highlighted that the momentum from the first half of the year, combined with the increased government stake and proactive approach to capitalizing on emerging market opportunities, positions the company well for continued success.
With a clear focus on leveraging the solid fundamentals of Ras Al Khaimah, RAK Properties is poised to sustain its growth trajectory, delivering value to stakeholders and contributing to the region’s economic development. The outlook for the remainder of the year and beyond remains positive, with the company set to build on its achievements and explore new avenues for growth.
Reference: Arabian Business
