RAK Properties posts a net profit of Dhs379m for the year 2008

This profit represents a balanced result despite the current financial crisis and the specific challenges faced by the real estate sector in general and with particular emphasis on its effects on the last quarter of 2008.

The BOD at their meeting today, the 12th February 2009, mentioned that the company is enjoying a strong liquidity position which exceeds Dhs700m in cash and it is totally focused on completion of its current projects and enhance its revenue and profits through improved efficiencies for the year 2009.

Due to the current financial crunch and lack of credit in the capital markets to fuel its projects, the BOD proposed that the company continue to rely on its internal financial strengths and strong cash flows and that a dividend need not be distributed for the year 2008.

Mohammed Sultan Al Qadi, Managing Director & CEO of RAK Properties said, "The previous year was a difficult one with all asset classes showing a decline, especially the real estate sector which has witnessed unprecedented challenges due to the financial crisis which was imported to UAE by external factors. Despite all these negative traits, the company was able to achieve a good result."

Mr. Al Qadi expressed his confidence on the real estate showing a revival in the near future which will bode well for the emirate of Ras Al Khaimah where real estate is still in good demand due to the demand-supply inequality.

He concluded by saying that "We look forward to achieving sustainable growth this year and to continue to develop our projects in Ras Al Khaimah in line with the expectation of our stakeholders under the kind patronage of H.H. Sheikh Saqr Bin Mohamed Al Qasimi Member of the Supreme Council and Ruler of Ras Al Khaimah and under the close guidance and support from H.H. Sheikh Saud Bin Saqr Al Qasimi, Crown Prince and Deputy Ruler of Ras Al Khaimah."

It is worth mentioning that the company reported an EPS of Dhs0.19 and the total assets has increased to Dhs4,181,860,000 in 2008 against Dhs3,274,139,000 in 2007.