Annual report eng.2019

Dear Brothers and Sisters, Valued Shareholders My warmest greetings to you all… I welcome you all to our first meeting in the NewYear, asking Almighty Allah to bless us all during the year 2020, which, we hope, will see a paradigm shift in Al Mazaya’s march towards brighter horizons. Across the year, we’ll be consistently seeking to optimise the company's work system performance at the various administrative, operating and financial levels in a way that keeps pace with the rapid and multi-faceted developments taking place all over the world. Ladies and Gentlemen, In 2019, Al Mazaya survived myriad challenges and difficulties which resulted from the drastic changes taking place in the real estate markets in which the company has been operating across the years, especially the UAE and Turkey - two countries that have been significantly hit by many geopolitical and economic woes, which have ultimately resulted in a lack of liquidity. The Emirate of Dubai, for example, has gone through major movements and shifts in relation to the supply and demand curves that manifested themselves in an oversupply of real estate units and led to a significant drop in prices. This is coupled with heated and growing competition between real estate developers, which forced property companies to introduce more competitive financing facilities. In Turkey, the currency fluctuation has played a major role in reducing the financial value of the sales and leasing transactions of the company’s projects there. However, thanks to Almighty Allah, we have been fully aware of these challenges since the beginning of the year. Therefore, the resilient efforts made by the members of the Board of Directors and the company's administrative and executive teams, fructified in a dynamic business plan, based on a number of strategic solutions to survive the besetting challenges in a way that enabled us to come up with moral and material successes at the end of that challenging year. The company’s 2019 Business Plan was founded on three main tenets through which Al Mazaya has sought to develop fundamental solutions to counter liquidity scarcity on the one hand and maintain its financial resilience on the other while continuing to fulfil its financial obligations for banks and all contractors and suppliers as well as prepare the company for a fresh start over the coming years. The first tenet of the company’s business plan has been to reduce our presence in the real estatemarkets hit by serious difficulties, by sellingour assets, reducingoperations andoptimizingadministrativecosts. The second tenet is restructuring the company’s current liabilities for companies and changing these obligations from short to long-term ones. The third tenet is strengthening the company's operations by terminating projects under development, increasing occupancy rates in projects under leasing and beefing up the company's revenues through managing new projects in the medical sector. CHAIRM AN MESSAGE OF ACHIEVEMENTS Mr. Rashid Al Nafisi Chairman