Release Date: 13 February 2024

• Revenue for FY2023 soars to AED 1004.89 million, signalling a meteoric rise from the previous year’s AED 408.22 million.
• Property sales in 2023 reached AED 2.8 billion, primarily driven by new project launches and a marked increase on the AED 511m figure in FY2022.
• Net Profit for the fiscal year reaches an impressive AED 201.82 million, marking a significant uptick from AED 30.79 million in FY2022.
• Total comprehensive income and Total Equity show robust growth, highlighting the company’s fortified financial health and market confidence.

RAK Properties PJSC (ADX: RAKPROP), Ras Al Khaimah’s pioneering publicly listed property developer, has today disclosed an exceptional financial performance for the fiscal year ended 31 December 2023. The landmark year has seen the company shatter previous records, with significant growth in revenue and net profit, signalling a vigorous demand for its property and hospitality ventures.

FY2023 financial highlights:

• Revenue surged to AED 1004.89 million, dwarfing last year’s AED 408.22 million.
• Net Profit propelled to AED 201.82 million, a substantial rise from AED 30.79 million in the prior year.
• Total comprehensive income rose to AED 181.98 million, an increase from AED 20.97 million.
• Total Assets grew to AED 6.46 billion, while Total Equity reached AED 4.30 billion, demonstrating the company’s enduring strength and growth.

Development achievements for FY2023 include the full sell-out of high-profile residential projects such as Julphar Residence, Bay Residence Phases 1 and 2, and several others. RAK Properties also fortified its hospitality segment, celebrating the success of the Intercontinental Ras Al Khaimah Mina Al Arab Resort and SPA and the inauguration of the Anantara Mina Al Arab Hotel and Resort.

Sameh Muhtadi, CEO of RAK Properties, remarked, “2023 has been a year of ‘take-off’ for RAK Properties, where our advance was marked by a strategic rebranding and a stellar financial performance. Our unwavering commitment to excellence and strategic growth initiatives have placed us at the forefront of Ras Al Khaimah’s luxury lifestyle offerings. The overwhelming success in residential sales and the acclaim of our hospitality properties are a testament to our brand’s strength and market resonance.

“Looking forward, we remain committed to bringing luxury living to RAK—defining high standards and delighting customers with more than they desire. Our strategy of masterplan-led development and the unique mix of comfort, convenience, glamour, and entertainment that we offer is a blueprint for the emirate. We will continue to actively pursue strategic partnerships with renowned brands [while scouting for new land acquisitions] to fuel future development projects, and an expansion of our luxury offerings. Thanks to Ras Al Khaimah’s visionary leadership and progressive policies, the emirate is looking forward to an exciting tomorrow.”

The year ahead promises continued strategic expansion, with the joint venture with Ellington Properties and the introduction of the Nikki Beach Resort set to enrich the company’s luxury offerings and enhance the allure of Mina Al Arab.

Development Update

In 2023, RAK Properties experienced a surge in demand for its developments Ras Al Khaimah and Abu Dhabi, which combined with the strong performance of its hospitality offering, highlights sizable market attraction to the company’s portfolio.

Residential:

1. The launch and sale of all 266 apartments in Julphar Residence on Reem Island, Abu Dhabi, were met with an overwhelmingly positive market response, successfully selling out.

 

2. Construction is on schedule for the two beachfront residential towers of Bay Residence Phase 1 on Hayat Island in Mina Al Arab, Ras Al Khaimah, and both have been fully sold out.

 

3. The launch and complete sale of all 324 apartments in the two beachfront residential towers of Bay Residence Phase 2 on Hayat Island, Mina Al Arab, Ras Al Khaimah, occurred in Q1 2023, with construction progressing according to the development plan.

 

4. The latest beachfront residential addition, Nasim Lofts at Bay Residence on Hayat Island, Mina Al Arab, Ras Al Khaimah, has been launched with sales currently underway.

 

5. The 146 apartments of the Gateway Residence 2 on Hayat Island, Mina Al Arab, Ras Al Khaimah, have been fully sold out, with construction proceeding according to the development plan.

 

6. The Marbella Villa Phase 2 in Mina Al Arab, Ras Al Khaimah, featuring 89 luxury villas and townhouses, launched sales in Q1 2023 with 90% already sold, and construction is advancing as scheduled.

 

7. Bayviews on Hayat Island, Mina Al Arab, Ras Al Khaimah, experienced a rapid sell-out of its 344 apartments across two towers at the end of Q2 2023, with construction beginning in Q4 2023.

 

8. Cape Hayat on Hayat Island, Mina Al Arab, Ras Al Khaimah, launched the sale of its 678 apartments in four towers at the end of Q3 2023, selling over 80% by the year’s end, and commenced construction by the end of 2023.

 

9. RAK Properties launched its latest masterpiece “Quattro Del Mar Project”, nestled in a prime location of Hayat Island, Mina Al Arab. Quattro Del Mar comprises of 4 towers and promises an integrated lifestyle hub with entertainment and world-class facilities.

Hospitality:

1. In 2023, the Intercontinental Ras Al Khaimah Mina Al Arab Resort and SPA outperformed its competition set in both occupancy and financial results, completing its first full year of operation.

 

2. The Anantara Mina Al Arab Hotel and Resort, a second five-star luxury establishment in Ras Al Khaimah with 174 keys, commenced operations in January 2024, following the close of the financial year.

 

Strategic Partnerships:

1. During the year RAK Properties and Ellington Properties entered into a JV to develop a premium waterfront residential project in Hayat Island. The partnership marks Ellington Properties’ entry into the emirate and the first joint residential apartment project which will bring a new perspective to exclusive waterfront living.
2. RAK Properties partners with Nikki Beach Global to open first branded resort in Mina Al Arab, Ras Al Khaimah