RAK Properties plans to launch new projects on Hayat Island located in its Dh10 billion Mina Al Arab master development in Ras Al Khaimah. Photo: RAK Properties
RAK Properties plans to launch new projects on Hayat Island located in its Dh10 billion Mina Al Arab master development in Ras Al Khaimah. Photo: RAK Properties
RAK Properties plans to launch new projects on Hayat Island located in its Dh10 billion Mina Al Arab master development in Ras Al Khaimah. Photo: RAK Properties
RAK Properties plans to launch new projects on Hayat Island located in its Dh10 billion Mina Al Arab master development in Ras Al Khaimah. Photo: RAK Properties

RAK Properties plans projects worth billions amid strong demand


Fareed Rahman
  • English
  • Arabic

RAK Properties plans to launch four new residential projects and a hotel project in Ras Al Khaimah this year and aims to surpass last year’s profitability on the back of higher sales, its chief executive has said.

The value of the projects will be “in the billions of dirhams”, Sameh Al Muhtadi told The National in an interview.

The new projects consisting of branded apartments and villas will be built at the company’s Dh10 billion ($2.72 billion) Mina Al Arab master development off the coast of Ras Al Khaimah.

RAK Properties has unveiled three new residential projects with close to 900 units so far this year with the residences at one of its developments, Bayviews, selling out within a few hours of being launched earlier this year.

“There’s tremendous demand in Ras Al Khaimah,” said Mr Al Muhtadi.

“I think people realise the value to be had, they realise the potential of returns on their investments and we are seeing the appetite to invest in Ras Al Khaimah grow on a daily basis.”

The new projects will be financed through a mix of debt and equity and the company has a “very robust balance sheet and we have very healthy liquidity”.

“A lot of the financing comes from off-plan sales, but we have lines of credit with multiple banks if need be,” Mr Al Muhtadi said.

It also has plans to raise money through bonds as it continues to focus on developing new projects.

“That's one of the considerations but that's down the road as needed. That might be because we have a very strong development plan ahead of us. This is something that we may require in mid-25 [2025].”

There’s tremendous demand for property in Ras Al Khaimah, according to Sameh Al Muhtadi, chief executive of RAK Properties. Photo: RAK Properties
There’s tremendous demand for property in Ras Al Khaimah, according to Sameh Al Muhtadi, chief executive of RAK Properties. Photo: RAK Properties

The UAE’s property market rebounded strongly from the coronavirus pandemic with property transaction numbers increasing across the country.

Pent-up demand and improved investor sentiment as well as new initiatives, such as visas for retirees and the expansion of the 10-year golden visa programme, have helped to drive property sales up.

Both Dubai and Abu Dhabi recorded higher sales this year amid strong demand from buyers as the UAE economy expanded at its fastest pace in more than a decade, accelerating 7.9 per cent in 2022.

Dubai’s off-plan sales surged more than 100 per cent annually in May to Dh14 billion with the total number of off-plan units sold during the month rising more than 100 per cent to 5,476, EFG Hermes said in a report this month.

Abu Dhabi recorded 5,472 real estate transactions worth Dh27.9 billion in the first quarter of 2023, according to the latest data from the Department of Municipalities and Transport.

The value of the deals in the emirate more than doubled during the three-month period to the end of March while the volume of transactions, which include property sales and mortgages, rose by 66 per cent.

RAK Properties had set a target of Dh1 billion in sales for 2023 and achieved the target “two weeks back”, with sales of property to international investors including Russians, Chinese and Germans as well as UAE citizens, Mr Al Muhtadi said.

“The speed with which we are developing, rolling out and constructing … is helping us tremendously.”

“Investors when they see the route of progress that we are achieving on site, encouraged them to invest in the properties that we are offering.”

The company’s profit and revenue in 2023 will exceed that of last year amid the launch of new projects and growth in sales, he added.

In 2022, RAK Properties reported Dh408.2 million in revenue and the net profit during the period reached Dh30.7 million.

The company’s first-quarter net profit rose 46 per cent year-on-year to Dh44.5 million as revenue during the period more than doubled to Dh258.5 million.

“I am hoping that we are going to have a multiple of last year's profitability,” Mr Al Muhtadi said.

The Mina Al Arab development in Ras Al Khaimah. Satish Kumar / The National
The Mina Al Arab development in Ras Al Khaimah. Satish Kumar / The National

The company has a land bank both in Dubai and Abu Dhabi and will look “at potential partnerships, co-development in those Emirates as well” to start projects.

“This is something that we are studying very closely for next year but we have a very significant pipeline of projects in Ras Al Khaimah for this year and we are very focused on that,” he added.

It has already completed one project called Julphar Residence in Abu Dhabi and has started handing over homes to customers.

Mr Al Muhtadi expects interest rates to reduce next year and that will further encourage investors to boost investments in the property sector.

“Interest rates are close to having peaked and are going to get better and interest on mortgages might reduce. I see that as a positive indication.”

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  • Technology expert in robotics and automation: Dh20,000 to Dh40,000 
  • Energy engineer: Dh25,000 to Dh30,000 
  • Production engineer: Dh30,000 to Dh40,000 
  • Data-driven supply chain management professional: Dh30,000 to Dh50,000 
  • HR leader: Dh40,000 to Dh60,000 
  • Engineering leader: Dh30,000 to Dh55,000 
  • Project manager: Dh55,000 to Dh65,000 
  • Senior reservoir engineer: Dh40,000 to Dh55,000 
  • Senior drilling engineer: Dh38,000 to Dh46,000 
  • Senior process engineer: Dh28,000 to Dh38,000 
  • Senior maintenance engineer: Dh22,000 to Dh34,000 
  • Field engineer: Dh6,500 to Dh7,500
  • Field supervisor: Dh9,000 to Dh12,000
  • Field operator: Dh5,000 to Dh7,000
Ultra processed foods

- Carbonated drinks, sweet or savoury packaged snacks, confectionery, mass-produced packaged breads and buns 

- margarines and spreads; cookies, biscuits, pastries, cakes, and cake mixes, breakfast cereals, cereal and energy bars;

- energy drinks, milk drinks, fruit yoghurts and fruit drinks, cocoa drinks, meat and chicken extracts and instant sauces

- infant formulas and follow-on milks, health and slimming products such as powdered or fortified meal and dish substitutes,

- many ready-to-heat products including pre-prepared pies and pasta and pizza dishes, poultry and fish nuggets and sticks, sausages, burgers, hot dogs, and other reconstituted meat products, powdered and packaged instant soups, noodles and desserts.

SHAITTAN
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3EVikas%20Bahl%3Cbr%3E%3Cstrong%3EStarring%3A%20%3C%2Fstrong%3EAjay%20Devgn%2C%20R.%20Madhavan%2C%20Jyothika%2C%20Janaki%20Bodiwala%3Cbr%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E3%2F5%3C%2Fp%3E%0A
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Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley

Director: Rupert Wyatt

Rating: 3/5

Key changes

Commission caps

For life insurance products with a savings component, Peter Hodgins of Clyde & Co said different caps apply to the saving and protection elements:

• For the saving component, a cap of 4.5 per cent of the annualised premium per year (which may not exceed 90 per cent of the annualised premium over the policy term). 

• On the protection component, there is a cap  of 10 per cent of the annualised premium per year (which may not exceed 160 per cent of the annualised premium over the policy term).

• Indemnity commission, the amount of commission that can be advanced to a product salesperson, can be 50 per cent of the annualised premium for the first year or 50 per cent of the total commissions on the policy calculated. 

• The remaining commission after deduction of the indemnity commission is paid equally over the premium payment term.

• For pure protection products, which only offer a life insurance component, the maximum commission will be 10 per cent of the annualised premium multiplied by the length of the policy in years.

Disclosure

Customers must now be provided with a full illustration of the product they are buying to ensure they understand the potential returns on savings products as well as the effects of any charges. There is also a “free-look” period of 30 days, where insurers must provide a full refund if the buyer wishes to cancel the policy.

“The illustration should provide for at least two scenarios to illustrate the performance of the product,” said Mr Hodgins. “All illustrations are required to be signed by the customer.”

Another illustration must outline surrender charges to ensure they understand the costs of exiting a fixed-term product early.

Illustrations must also be kept updatedand insurers must provide information on the top five investment funds available annually, including at least five years' performance data.

“This may be segregated based on the risk appetite of the customer (in which case, the top five funds for each segment must be provided),” said Mr Hodgins.

Product providers must also disclose the ratio of protection benefit to savings benefits. If a protection benefit ratio is less than 10 per cent "the product must carry a warning stating that it has limited or no protection benefit" Mr Hodgins added.

RESULTS

Bantamweight title:
Vinicius de Oliveira (BRA) bt Xavier Alaoui (MAR)
(KO round 2)
Catchweight 68kg:
Sean Soriano (USA) bt Noad Lahat (ISR)
(TKO round 1)
Middleweight:
Denis Tiuliulin (RUS) bt Juscelino Ferreira (BRA)
(TKO round 1)
Lightweight:
Anas Siraj Mounir (MAR) bt Joachim Tollefsen (DEN)
(Unanimous decision)
Catchweight 68kg:
Austin Arnett (USA) bt Daniel Vega (MEX)
(TKO round 3)
Lightweight:
Carrington Banks (USA) bt Marcio Andrade (BRA)
(Unanimous decision)
Catchweight 58kg:
Corinne Laframboise (CAN) bt Malin Hermansson (SWE)
(Submission round 2)
Bantamweight:
Jalal Al Daaja (CAN) bt Juares Dea (CMR)
(Split decision)
Middleweight:
Mohamad Osseili (LEB) bt Ivan Slynko (UKR)
(TKO round 1)
Featherweight:
Tarun Grigoryan (ARM) bt Islam Makhamadjanov (UZB)
(Unanimous decision)
Catchweight 54kg:
Mariagiovanna Vai (ITA) bt Daniella Shutov (ISR)
(Submission round 1)
Middleweight:
Joan Arastey (ESP) bt Omran Chaaban (LEB)
(Unanimous decision)
Welterweight:
Bruno Carvalho (POR) bt Souhil Tahiri (ALG)
(TKO)

Cinco in numbers

Dh3.7 million

The estimated cost of Victoria Swarovski’s gem-encrusted Michael Cinco wedding gown

46

The number, in kilograms, that Swarovski’s wedding gown weighed.

1,000

The hours it took to create Cinco’s vermillion petal gown, as seen in his atelier [note, is the one he’s playing with in the corner of a room]

50

How many looks Cinco has created in a new collection to celebrate Ballet Philippines’ 50th birthday

3,000

The hours needed to create the butterfly gown worn by Aishwarya Rai to the 2018 Cannes Film Festival.

1.1 million

The number of followers that Michael Cinco’s Instagram account has garnered.

'The worst thing you can eat'

Trans fat is typically found in fried and baked goods, but you may be consuming more than you think.

Powdered coffee creamer, microwave popcorn and virtually anything processed with a crust is likely to contain it, as this guide from Mayo Clinic outlines: 

Baked goods - Most cakes, cookies, pie crusts and crackers contain shortening, which is usually made from partially hydrogenated vegetable oil. Ready-made frosting is another source of trans fat.

Snacks - Potato, corn and tortilla chips often contain trans fat. And while popcorn can be a healthy snack, many types of packaged or microwave popcorn use trans fat to help cook or flavour the popcorn.

Fried food - Foods that require deep frying — french fries, doughnuts and fried chicken — can contain trans fat from the oil used in the cooking process.

Refrigerator dough - Products such as canned biscuits and cinnamon rolls often contain trans fat, as do frozen pizza crusts.

Creamer and margarine - Nondairy coffee creamer and stick margarines also may contain partially hydrogenated vegetable oils.

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Various artists, Sony Music Turkey 

The specs

Engine: 6.2-litre supercharged V8

Power: 712hp at 6,100rpm

Torque: 881Nm at 4,800rpm

Transmission: 8-speed auto

Fuel consumption: 19.6 l/100km

Price: Dh380,000

On sale: now 

How to apply for a drone permit
  • Individuals must register on UAE Drone app or website using their UAE Pass
  • Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
  • Upload the training certificate from a centre accredited by the GCAA
  • Submit their request
What are the regulations?
  • Fly it within visual line of sight
  • Never over populated areas
  • Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
  • Users must avoid flying over restricted areas listed on the UAE Drone app
  • Only fly the drone during the day, and never at night
  • Should have a live feed of the drone flight
  • Drones must weigh 5 kg or less

Paris Can Wait
Dir: Eleanor Coppola
Starring: Alec Baldwin, Diane Lane, Arnaud Viard
Two stars

Lexus LX700h specs

Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor

Power: 464hp at 5,200rpm

Torque: 790Nm from 2,000-3,600rpm

Transmission: 10-speed auto

Fuel consumption: 11.7L/100km

On sale: Now

Price: From Dh590,000

Updated: June 28, 2023, 6:12 AM