RAK Properties' first-quarter net income down 84% as revenues drop

Developer to deliver Gateway Residence and Julphar Residence projects this year

United Arab Emirates - Abu Dhabi - April 22 - 2009 :  People in front of a scale model of Mina Al Arab project at RAK Properties showroom during Cityscape Abu Dhabi in Abu Dhabi National Exhibition Centre. ( Jaime Puebla / The National ) *** Local Caption ***  JP41 CITYSCAPE AD.jpg
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RAK Properties posted an 84 per cent plunge in first-quarter net profits as revenues dropped.

Net profit in the three months ending March 31 reached Dh4 million compared with Dh24.6m in the same period a year ago, RAK Properties said in a filing to the Abu Dhabi stock exchange on Sunday. First-quarter revenue fell to Dh45.8m compared with Dh58.6m in the prior-year period.

The company did not provide a reason for the drop in revenue.

RAK Properties said it expects to deliver its Gateway Residence and Julphar Residence this year.

Construction of its Marbella Villas, a project of 205 luxury townhouses and villas in Mina Al Arab in Ras Al Khaimah, is in progress, the developer said.

Earlier this month, RAK Properties awarded a contract to Al Ali Construction and Development to build its Dh500 million Marbella Villas project.

Anantara Hotel and Resort and InterContinental Hotel and Resort in Mina Al Arab are also under construction.

The company expects to tap the sukuk markets from this year and raise additional bank financing as it continues to deliver its 2.79-million-square-metre Mina Al Arab coastal project in RAK, Samuel Sidiqi, RAK Properties' chief executive, told The National in October.

The emirate of RAK is experiencing a tourist boom thanks in part to its fast-growing reputation as an adventure sports hotspot.

RAK is home to the ToroVerde zip line, officially the longest in the world at 2.83km, which attracts sports and adventure tourists.

Other than the steep, rocky Jebel Jais terrain, RAK is known for its unspoilt beaches, colourful marine life, nature trails, observation decks overlooking the Hajar Mountains, desert activities and golf courses.