Ladies and Gentlemen, our valuable shareholders

May The Peace, Blessings, And Mercy Of God Be upon you.

I’m pleased to meet you again through this annual report to assess our past year’s performance and highlight the most significant accomplishments achieved by the Company in 2023, which would have never been achieved without your valuable confidence and support which constitute the backbone of our outputs and sustainability. Your constant support to Al Mazaya Company is the prime driver to continue our progress and improve our output.

Today, we are keen to establish stable foundations that will raise the aspirations towards the future through the strategic vision of the Company’s board of directors, aimed at fostering and diversifying our real estate investments within new sectors, markets and tools, with solid steps towards development, prosperity and growth, armed with administrative and operational work standards based on transparency, credibility and sustainability.

Valuable brothers and sisters:

In light of the constant changes witnessed by the Company as well as local and international markets, we are primarily keen to boost the Company’s revenues from its fixed income sources to support its performance in the markets where it operates. With the help of Allah, we were able, despite the year’s losses resulting primarily from exiting the Company’s investment in the Republic of Turkey, which led to the re-classification of the foreign currency translation losses from the foreign operations accounted for previously during the past years which relates to the disposed subsidiary in the Republic of Turkey in addition to the goodwill impairment related to another subsidiary during the year, despite that, we were able to maintain the accelerated pace in the Company’s operational revenues resulting from the rental operations through diligent achievement of high occupancy rates for the Company’s income generating projects in order to maintain the Company’s business model, which includes a well diversified real estate portfolio in terms of geographical distribution and their different types of returns as well. We were also able, thanks to Allah Almighty, to secure the necessary liquidity through operational activities and preserve the strength of the Company’s financial solvency.

My brothers and sisters:

Based on that, I’m pleased to present to you the most significant achievements of the Company in 2023, which include some of the Company’s accomplishments by its various sectors and subsidiaries:

• With the help and blessings from Allah Almighty, the Company was able to maintain its standard and unique operational performance during this year, as it has achieved an increase in the gross profit by 11%, which amounted to almost one million Kuwaiti dinar derived primarily from an increase in the net rent by 9%, which amounts to almost KD 900,000.
• On the banks’ level, with the blessings and help of Allah, the Company had accomplished an outstanding achievement by reducing its debts towards its lending banks by approximately 30 million Kuwaiti dinar, which represents more than 31% of the Company’s total bank debts at the beginning of the year.
• The Company had succeeded in reprofiling its bank facilities with its key banks locally and abroad, with better terms and conditions that shall serve the Company’s strategic objectives for the next years.
• The Company also succeeded to maintain high liquidity levels during the year in parallel with the significant repayment of the Company’s bank debts during the year, as the Company’s cash balances had increased by approximately 49% compared to the past year.
• Within a record time, the Company was able to implement more than 90% of the merger by amalgamation procedures with Dubai First Real Estate Development Company in 2023, through the relevant (ordinary and extraordinary) general assembly meetings, coordination and constant follow up with the related regulatory bodies and accelerating the process of obtaining all the necessary approvals and consents in that regard. It is noteworthy that all the merger procedures were carried out through the Company’s internal departments and teams without the need of external consultants for that purpose except for those external consultants that are officially required by the regulatory bodies in this respect, which had led to reducing the related costs for the Company without any impact on the required quality and efficiency to complete such procedures properly.
• The Company had finalized the sale of Ritim Istanbul Company (a subsidiary in Turkey) during this year, which saved the Company from incurring more negative impact due to the devaluation of the Turkish currency and hyperinflation impact of the Turkish economy.
• Implementing the swap of the “Rights to purchase properties” owned by a subsidiary with other high quality real estate assets in one of the largest projects in Dubai, UAE, with an approximate value of KD 8.3 million.
• The Company succeeded to distribute interim dividends to the Company’s shareholders as bonus shares from the treasury shares by 2%.
• Termination and settlement of the sale transaction of Kuwaiti Saudi Company through its subsidiary, which had resulted in realizing a partial profit of KD 400,000.

Ladies and gentlemen:

At the end, I would like to extend my warm gratitude to the chairman and members of the board of directors of Al Mazaya Holding Company for their support and continuous trust and to extend my praise and appreciation to the whole team of the Company for their dedication and constant efforts. Further, I would like to extend all appreciation and gratitude to the shareholders of Al Mazaya Holding Company and all our partners for their trust as well. We promise you to continue working for achieving the awaited growth for Al Mazaya Company and maintain the shareholders’ rights and contribute to the progress and development of your Company towards the best, with the will of Allah, to achieve Al Mazaya’s vision that aims at leadership and creativity in introducing unique products to achieve the objectives and aspirations of our valuable shareholders and clients. Peace, blessings and mercy of Allah upon you.

Engineer Ibrahim Abdul Rahman Al-Saqabi

Group Chief Executive Officer