RAK Properties' Q2 profit almost doubles on Wynn Resorts boost
RAK Properties on Thursday reported an almost doubling of net income in the second quarter amid strong demand.
The Abu Dhabi-listed company's net profit after tax for three months to the end of June climbed to Dh92.6 million ($25.2 million), with revenue rising 26 per cent to Dh404.5 million, according to its financial statement on the Abu Dhabi Securities Exchange.
The company recorded Dh1.5 billion in sales in the first half of the year and is on target to achieve Dh3 billion for the full year, Sameh Muhtadi, chief executive of RAK Properties, told The National.
'There's tremendous international interest in what we're offering to the market,' Mr Muhtadi said. 'I had committed to [Dh]5 billion worth of launches in 2025 and we're smack on target there.'
The UAE property market continues to rebound strongly from the Covid-driven slowdown, on the back of government initiatives such as the expansion of the 10-year golden visa programme and residency permits for retired and remote workers.
The overall growth in the economy amid non-oil sector expansion is also supporting the growth of the property sector.
RAK Properties has launched new projects this year including Armani Beach Residences in partnership with fashion designer Giorgio Armani, Anantara apartments and villas, Mirasol and Enta.
It plans to launch more projects for the rest of the year amid higher demand from buyers.
'We have a significant pipeline … will be bringing to market a lot of new projects,' Mr Muhtadi said. The company has sold more than 2,000 units to buyers from Europe, CIS countries, India and UAE residents this year, he added, with the Wynn Resorts development a major 'catalyst' in boosting sales.
'For people interested in short-term rentals and decent yield on their investments, Wynn is the major catalyst,' he said.
The $3.9 billion Wynn Al Marjan Island, the UAE's first gaming resort, is set to open in early 2027.
Being developed by Las Vegas-based hotel operator Wynn Resorts, the 1,500-room resort is expected to boost the tourism potential of the emirate and attract more investment in property in Ras Al Khaimah.
Developers including Abu Dhabi's Aldar Properties, Dubai Investments, Dar Global and Damac Properties are lining up new projects in Ras Al Khaimah amid anticipation of higher demand on Wynn Resorts.
The residential stock in Ras Al Khaimah is projected to double by the end of 2030, with more than 11,000 units scheduled for completion, based on the supply from launches up to the end of 2024, according to a recent Savills report.
'We anticipate continued interest, continued growth. Wynn will open in April 27, so we're approaching that big event, and I think that is going to attract a lot of attention the rest of this year and all of 2026," Mr Muhtadi said.
Expanding to other emirates
The company is also looking to expand outside Ras Al Khaimah with a new project worth about Dh220 million in Dubai South this year near Al Maktoum International Airport, as well as a new project in Abu Dhabi by the end of next year.
It also acquired 2 million square feet of land in Al Marjan Island in Ras Al Khaimah for development by the end of this year, with 22 to 24 projects planned, Mr Muhtadi said
Future growth
RAK Properties aims to achieve 25 per cent annual growth in both revenue and profit for 2025 when compared to the previous year, on the back of new launches and strong demand for property in the northern emirate.
'Our strategy is built around continued growth of revenue, continued growth of profit, our results have been better than we had anticipated and we're hopeful that the momentum will continue. Our objective is never to go below a 25 per cent growth year-on-year on all fronts,' Mr Muhtadi said.
Last year, the company reported about Dh281 million in net profit after tax and Dh1.4 billion in revenue, with the growth momentum expected to continue this year, he added.
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