Page 6 - 2023 Auunal Report - EN

ANNUAL REPORT 2023 5

to another subsidiary had resulted mainly in total non-recurring losses of almost (KD 24.84) million by the end of 2023. It is worth
noting that the aforesaid reclassification did not have any impact on the shareholders equity or the book value per share. As for the
financial position, Al Mazaya Company holds strong assets amounting to KD 164.45 million by the end of 2023, comprised mainly
of real estate and operational assets which supports the Company’s targets and future plans to improve and promote the Company’s
financial position in response to the challenges faced by the Company in this respect.

Dear shareholders:
In this respect, and according to the corporate governance rules and regulations, the board of directors of Al Mazaya Holding Com-
pany declares and undertakes the integrity, impartiality and credibility of the financial statements and all the reports presented to the
shareholders, and that they include all the Company financial aspects, including operational details and results.

Sisters and brothers:
I would like to present to you a number of the Company’s achievements on the ground during 2023, which were the outcome of the
preset action plan which enabled the Company to achieve the targeted operational results, as the Company was able to significantly
reduce its liabilities towards banks during 2023through the repayment of more than KD 30 million to those banks, which resulted in
the reduction of more than 31% of the Company’s total bank debts towards banks in one year as compared to the Company’s total
bank debts by the end of 2022. This is expected to have a valuable positive impact on the reduction of the finance cost for Al Mazaya
Company during the upcoming years. In addition, the Company promoted its relationships with the banks and investors, as it had
successfully reprofiled some of its bank facilities with the main banks with locally and abroad, with better terms and conditions that
shall serve the Company’s strategic goals in the forthcoming years.

The Company was also keen to distribute interim dividends to the Company shareholders as bonus shares from treasury shares by 2%
despite the significant challenges in 2023 in that respect, thanks to the support and confidence of its shareholders.
The Company had successfully implemented the swap of the “Rights to purchase real estate properties” owned by a subsidiary which
were previously acquired from the main developer of one of its projects by other high quality real estate assets in (Jabel Ali Palms) proj-
ect in the United Arab Emirates, with total value of approximately KD 8.3 million. Also, the Company had finalized the termination
and settlement of the sale transaction of a subsidiary to the Group, which had resulted in realizing a partial profit from that transaction
of KD 400,000 during the year 2023.
Furthermore, Al Mazaya Company has implemented most of the procedures related to the merger by amalgamation with Dubai First
Real Estate Development Company during the year 2023 through the relevant board of directors and general assembly meetings (both
ordinary and extraordinary), coordination and constant follow up with the related regulatory authorities to obtain all the required
approvals and consents in that regard. To achieve that, the Company had relied fully on its internal team for implementing and follow-
ing up all the merger procedures and coordination with the regulatory authorities, without the need to appoint external consultants
for that purpose, except for external consultants that are officially required by the regulatory authorities in this respect. This leads to
the reduction of the related costs for the Company without impairing the required speed and efficiency in finalizing those required
procedures.
Finally, those achievements by Al Mazaya Company fostered the balance of the cash flows during the last year and increased the
operational profits, and enabled the preparation for a new stage consistent with the inputs for the upcoming years according to sound,
well planned, and practical basis.

Dear shareholders:
At the end, I would like to express on behalf of myself and the members of the board of directors my sincere gratitude and appreci-
ation for your great and continuous support to the board of directors, and extend my warm gratitude and appreciation to you, our
valuable shareholders, for your confidence in us. I would also like to extend my appreciation to every member of Al Mazaya’s team
for their sincere efforts exerted for raising the Company’s standard and its brand in order to reach higher levels and achieve all our
planned targets, with the will of Allah the Almighty.
I wish you and Al Mazaya Company continuous prosperity and success. May peace and blessings of Allah be upon you.