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Tue 11 Feb 2014 06:31 PM

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RAK Properties posts $41m net profit in 2013

Real estate firm's chief says he expects performance to continue to improve this year

RAK Properties posts $41m net profit in 2013
(Photo for illustrative purposes only)

RAK Properties, Ras Al Khaimah's biggest property developer, on Tuesday announced net profit of AED151 million ($41.1 million) for 2013, slightly up on AED147 million posted in the previous year.

Mohammad Sultan Al Qadi, managing director and CEO, said he expected the company's performance to improve during 2014 amid the UAE's strong real estate sector growth.

The RAK Properties board also proposed a five percent cash dividend for the last year, which will be presented for ratification at an annual general meeting on March 6.

Al Qadi said: "We are satisfied with the company's performance in 2013 and we anticipate stronger performance in 2014. In 2013, we handed over 192 residential units, including villas, townhouses, apartments and commercial offices in Mina Al Arab and Julphar Tower in Ras Al Khaimah and RAK Tower in Reem Island in Abu Dhabi."

He said the company had seen a "noticeable increase" in the leasing of residential, offices and retail space, a trend that is expected to continue during 2014.

He added: "Real estate prices in the UAE are set to continue the rise in the coming period after the announcement of Expo 2020 bid win, and we expect that the property sector in Ras Al Khaimah will see a stable and sustainable growth in the long and short run."

In 2013, RAK Properties announced the Flamingo Villas project that comprises 104 sea-view villas located on the coastline in Mina Al Arab.

"Our operations have seen significant expansion in Abu Dhabi and Ras Al Khaimah. Moreover, the company successfully attracted investors from various classes and well-known brand names in all its developed and underdevelopment amenities," Al Qadi added.

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