Sticking to project delivery deadlines has helped Abu Dhabi-listed RAK Properties maintain higher earnings despite a slowdown in region’s real estate sector, managing director and chief executive Mohammed Sultan Al Qadi tells Argaam in an exclusive interview. He pointed out that with Ras Al Khaimah targeting 1 million visitors by the end of 2018, their recent diversification into the hotel segment will help drive future growth.
Q: RAK Properties has seen higher income this year, despite a regional slowdown in the property market. What is your growth strategy?
A: The profits throughout the past nine months this year are indicative of the trust and credibility that we have sustained as a property developer. We have a very strong record of delivering on our promises and in recent cases have handed over projects ahead of schedule. This reliability and quality of product makes RAK Properties’ developments a strong and stable proposition for potential investors.
Q: Looking ahead to Q4, and further to 2017, what will drive the firm’s earnings?
A: We posted an increase in net profit of 187.9 percent for January to September 2016. We foresee growth to continue through the final three months of this year into 2017.
In October, we handed over the second phase of Flamingo Villas – two months ahead of schedule. We have also finalized the design for Anantara Mina Al Arab (Ras Al Khaimah). Additionally, the Mina Al Arab’s Bermuda Villas are expected to be handed over to owners in 2017. The partnership with the Minor Hotel Group for Ras Al Khaimah’s first Anantara property, in addition to working with IHG to bring InterContinental to the emirate is the beginning of RAK Properties efforts in expanding our hospitality portfolio.
We are also advancing with developments in other emirates. Abu Dhabi is an area of key interest and Julphar Residence will be completed in Q4 2018.
Q: Do you have expansion plans to develop properties outside of UAE? Any plans for Saudi Arabia?
A: We have a number of ongoing developments across the emirates and further expansion; however, we have no current plans to expand outside of the UAE at this time.
Q: What is your outlook for UAE’s real estate sector in 2017?
A: Ahead of 2020, projects across Dubai will begin to ramp up next year, stimulating growth across all segments. This will not only benefit Dubai’s real estate market, but also that of neighboring emirates. Ras Al Khaimah, for example, is targeting 1 million visitors by the end of 2018 and this provides a considerable need to increase the number of hotels available. This is an area that we have been developing. Most recently we signed an agreement with Jannah Hotels to operate a 100 hotel-apartment and 24-villa property, which is expected to open in December.
Write to Nadeshda Zareen at nadeshda.zareen@argaamplus.com
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