Stock RAK Ras Al Khaimah skyline
Operating profit jumped 141 per cent over a year ago to Dh172.2 million. Image Credit: Virendra Saklani/Gulf News

RAK Properties posted a 282 per cent rise in net profit to Dh105.17 million in the third quarter of 2023, as the launch of new projects drove a 137 per cent growth in revenue to Dh685.56 million.

The Ras Al Khaimah-based property developer attributed the strong set of results to "continued robust demand" for its "newly released residential mixed-use projects". During the quarter, it experienced "intensified demand for its projects in both Abu Dhabi and Ras Al Khaimah, underscoring the strong interest in the company's offerings."

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Our focus this year has been on bringing to life our vision for Mina Al Arab as the leading lifestyle destination in Ras Al Khaimah. Our performance this quarter reflects the speed with which we are able to deliver on our development roll out plan

- Sameh Muhtadi, CEO of RAK Properties

"The opening of the 5-star Anantara Resort & SPA end of this year will add considerable additional appeal to our overall hospitality offering on Mina Al Arab, and our recurring revenue streams," Muhtadi further added. "As we continue our growth trajectory, Nikki Beach Resort & Spa Ras Al Khaimah which was announced earlier represents a pivotal component of RAK Properties’ expansive master plan for Mina Al Arab."

Additionally, third-quarter operating profit jumped 141 per cent over a year ago to Dh172.2 million, and sales was Dh1.5 billion for first nine months of fiscal 2023.

Sales boom

All units released at the Julphar Residence apartment building on Reem Island in Abu Dhabi were sold out, and over 94 per cent of sold units have been handed over, the company said.

The developer added that the construction of an additional 89 luxury villas and townhouses at Marbella Villa Phase 2, Mina Al Arab is progressing, and sales have exceeded 90 per cent. "Bayviews, Hayat Island, Mina Al Arab, the sale of two residential towers, consisting of 344 apartments, was launched at the end of the second quarter, selling out within a few hours. Construction is planned to commence in December," the company said.

The sale of four residential towers comprising 678 apartments at Cape Hayat, Hayat Island, Mina Al Arab, was launched in the end of the quarter, but the financial contribution of Cape Hayat has not been recorded in the third quarter results, it noted.

Also, RAK Properties and Nikki Beach Global partnered to open its first and exclusive branded hotel resort in Mina Al Arab, Ras Al Khaimah.