RAK Properties income surges as revenue more than doubled amid recovery

The developer of Mina Al Arab master development in Ras Al Khaimah is set to launch new projects this year

A model of Mina Al Arab project. RAK Properties is completing the master development in phases. Pawan Singh/The National.

RAK Properties reported a 77 per cent rise in 2021 full-year net income as revenue more than doubled amid a continued recovery in the UAE's property market.

Net profit for the 12-month period to the end of December climbed to Dh201.47 million ($55m) up from Dh113.5m in the same period a year earlier, RAK Properties said in a statement to the Abu Dhabi Securities Exchange, where its shares are traded.

Full-year revenue surged to more than Dh515m at the end of the reporting period, up from Dh243.5 in 2020.

The developer of Dh10-billion Mina Al Arab master development in Ras Al Khaimah is set to launch new projects and has made significant progress in delivering its hospitality projects.

The InterContinental Mina Al Arab Resort is expected to open soon, while the construction on Anantara Mina Al Arab Hotel and Resort project is progressing according to the development plan.

“These two premium assets will add significant value to the revenue stream and strengthen balance sheet,” RAK Properties acting chief executive, Mohammed Al Tair, said.

The property market in the UAE, the second-biggest Arab economy, has made a strong recovery from the pandemic-induced slowdown amid business and social reforms and government stimulus measures to support economy.

Pent-up demand and improved investor sentiment have also helped to drive property sales. New initiatives, such as visas for retirees and the expansion of the 10-year golden visa programme, are expected to further support the property market, industry experts say.

RAK Properties said it started handing over villas and town houses in its Marbella Villas project in Mina Al Arab, while The Julphar Residence project on Reem Island in Abu Dhabi, which includes 266 apartments, will also be delivered to customers soon.

With regards to upcoming projects, RAK Properties’ Bay Residence has reached tendering stage, while it has awarded construction contract for its Gateway Residence 2 development in Mina Al Arab.

Marbella Extension project on Hayat Island in the emirate is at design stage.

In November, the company said it plans to launch a number of residential projects in 2022 to boost its property portfolio as it is registering higher demand from buyers.

“The new projects will have 500 to 600 apartments as well as 100 additional villas,” Mr Al Tair said at the time.