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Mon 8 Aug 2011 06:34 PM

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RAK Properties sees H1 net profit fall by 28.6%

Firm's CEO remains upbeat, says handovers in first half of the year have boosted investor confidence

RAK Properties sees H1 net profit fall by 28.6%
RAK Tower on Reem Island in Abu Dhabi

RAK Properties, Ras Al Khaimah's biggest property developer, on Monday posted a net profit of AED68.66m in the first half of 2011, down 28.6 percent on the same period last year.

The company said its total sales revenue for the first six months of the year increased by AED18.52m compared with the corresponding period of last year.

Mohamed Sultan Al Qadi, managing director and CEO of RAK Properties, said he was upbeat on the development of real estate in the UAE.

He added that he was pleased with the company's achievements in the first half of 2011, most notably with the handover of Julphar Towers in Ras Al Khaimah, RAK Tower in Reem Island in Abu Dhabi and Precinct Five of Mina Al Arab in Ras Al Khaimah.

He said: "These handovers have further enhanced the position of the company and helped boosting the confidence of the stakeholders."

Al Qadi anticipated a constant revenue stream for the company for the rest of 2011 with the number of units being handed over in its key projects.

He added: "With the handover of these three projects, we are bringing to the table of our stakeholders an added value as far as their investments in our residential and business units are concerned."

RAK Properties has handed over 213 villas of Precinct Five of its flagship development Mina Al Arab and RAK Tower in Reem Island in Abu Dhabi, the company said in a statement.

In April, Fitch Ratings said that Ras Al Khaimah's (RAK) public finances were in good order and assigned it a stable outlook.

"Ras Al Khaimah has significantly bolstered its creditworthiness over the past year," said Richard Fox, Head of Middle East and Africa Sovereign Ratings at Fitch.

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