RAK Properties will pay a dividend despite falling sales and board objections, after shareholders pressured management, the chief executive said yesterday.
The company, the main developer in Ras al Khaimah, reported its first-quarter earnings fell nearly 39% to Dh70 million (US$19m) compared with the same period last year. It attributed the drop to a lack of sales in the reporting period.
'In general, property buying has come to a halt and we did not achieve any sales during the first three months of 2009,' said Mohammed al Qadi, the chief executive of RAK Property.
But al Qadi said a dividend would be paid. 'The dividends were not recommended by us as a board and as a management, and we objected to it but our shareholders put us under pressure. When they saw that we had cash, they voted for it.'