Ladies and Gentlemen, Our Dear Shareholders

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

I am pleased to renew the meeting with you. As accustomed every year, I thank you for your continuous support, which is the prime driver for Mazaya to follow up the progress, and as we are used to meet together through this annual report to evaluate the performance of the past year and highlight the most important achievements of the Company in the year 2022, which would not have been achieved without your precious trust, which forms the backbone of our output and our continuity.

The year 2022 was the year of challenges and difficult choices that we were able to keep up with by following conservative strategies and policies drawn up by the Board of Directors in light of the major changes witnessed in the real estate markets in which we operate.

Today, we are keen to establish solid foundations that transcend our future aspirations through our strategic vision aimed at enhancing and diversifying our real estate investments within new sectors, markets and tools, according to a steady path towards progress, prosperity and growth, armed with administrative and operational work standards based on transparency, credibility and sustainability.

Dear Brothers and Sisters,

In light of these changes, we were keen to enhance the Company's revenues from its fixed incomes to support its performance in the markets in which it operates. We were able, with God's help, to maintain a stable pace in the Company's operating revenues resulting from leasing operations, with a tense pursuit towards achieving high occupancy rates in the Company's income-generating projects and increasing its direct and indirect revenues to maintain the Company's business model, which includes a diversified portfolio of geographically distributed assets on the one hand, and assets that depend on the quality of different returns on the other hand.

My Brothers and Sisters:

The Company has exerted significant effort to maximize the benefit from its expertise and the projects under its umbrella within the healthcare sector, in a way that enhances the optimal utilization of the available and income-generating opportunities, as the Company has entered into a new project without the need to inject large capitals, similar to “Mazaya 8” project, as a continuation of the series of Al Mazaya projects specialized in this important and vital medical real estate sector, and working to achieve meaningful returns for the Company.

On this basis, I am pleased to present to you a review of the most important achievements of the Company for the year 2022, which included some of the Company’s achievements in its various sectors and its subsidiaries during the year 2022:

 Praise be to God Almighty, the Company was able to maintain a record and distinguished operational performance during this year, as it achieved an increase in the total operating profit by 11%, equivalent to one million Kuwaiti dinars.

• Further, the Company managed to raise net rents by 24%, equivalent to 1.7 Million Kuwaiti Dinar.

• Mazaya has increased rental income from its existing and fully occupied projects by renewing lease contracts with clients at an increase rate that is in line with the current market prices and services provided by the Real Estate Department in the Company, which reflected in the increase in operational revenues resulting from leasing operations.

• The Company has extended investment contracts for some medical clinic towers for an additional five years, which is expected to improve the Company's future cash flows and profits.

• As for new projects, Mazaya Company has fostered its real estate portfolio by concluding an investment contract during the year 2022 for a new and distinctive medical tower project in Sabah Al-Salem area, which is expected to be received at the beginning of this year. This is in addition to the continuation of the expansion and achievements in the medical sector through Medcell Medical Company (subsidiary) and its various operations.

• At the level of banks, the Company was able to reschedule some banking facilities with local and foreign banks, fully pay the facilities owed to a bank in the United Arab Emirates and reduce the coverage ratios of banking facilities with both Warba Bank and Kuwait International Bank.

• Further, the Company was able, through its subsidiaries in the United Arab Emirates, to reduce the costs of building repairs to be restored by 1.7 Million Kuwaiti Dinar.

• On the other hand, and in line with the Company's business plan and strategic objectives, the Company was able, through its subsidiaries, to exit some assets in the United Arab Emirates and conclude exchange contracts for lands that are not developable with others that are capable of development, which will benefit the Company, God willing.

However, due to the real estate valuations that were made for some of the Company's real estate in foreign markets, which resulted in unrealized losses amounting to 6.3% of the value of the Company's assets, these losses directly affected the income statement for this year and, accordingly, the Company's financial results.

Ladies and Gentlemen:

At the end of my statement, I extend my sincere thanks to the Chairman and members of the Board of Directors of Mazaya Holding Company for their unlimited support. I’m also pleased to extend my gratitude and appreciation to all the executive teams in the Company for their dedication and relentless efforts for leading, implementing and fulfilling the Company’s business with creativity and leadership, and for their permanent compliance with Mazaya’s mission and vision.

In the hope of meeting you next year, God willing. I repeat my thanks for your trust in us. We also promise to continue working towards achieving the expected growth of Mazaya Company, preserving the rights of shareholders, and contributing to the progress and development of your Company for the better, God willing.

Peace, Blessings and Mercy of God be upon you. 

Ibrahim Abdul Rahman Al-Soqabi

Group Chief Executive Officer