02
Dear Shareholders
Peace, Mercy and Blessings of Allah be upon you,
Another year has passed, and still Al Mazaya Holding Company is
considered one of the most prominent companies within the local and
GCC real estate sector, across the Gulf and in the media and on the ground.
We see its presence through analyses of the market and the different
reports that show the company’s results, and while the atmosphere of
‘recovery’ still controls the regional situation, we feel confident in our
ability to forecast the future, based on our accurate records of the present
as well as the past.
Stability in the real estate market is not an easy issue - especially in the
Gulf, which witnessed the highest levels of boom as well as the bust of
the financial crisis. Building the company internally is an integral part
of our overall strategy, which is as important as any real estate project.
Stability needs a determined attitude and accurate decision making, and
this regard building the company from inside is the most important issue.
Just like any other major real estate company in the region, Al Mazaya
Holding faced many challenges as result of the financial crisis. However,
it was able to successfully overcome this crisis through market research,
and flexibility to the developed projects and the vicissitudes of the
market in the region. The high confidence of our shareholders have also
consistently allowed us to apply our strategies effectively and successfully,
as can be seen manifested in our durability as well as short-term success.
Meanwhile, Al Mazaya holding has committed to a number of studied
successful strategies, which have had a major impact in resolving
numerous issues. The company undertook restructuring its administrative
department, and has also committed to breaking up some of its
intermeshed investments, has seen the exit of a number of the projects,
completion of other projects, settling outstanding payments, collecting
late payments, and has been able to meet its obligations to the official
authorities and investors, in projects such as Business Avenue, The Villa in
Dubai, the portfolio of Jumeriah Lakes Towers, the exit from the Al Madar
fund. In addition the company also received the opportunity to acquire a
share of the Oman Development Company. All these actions contributed
to achieving impressive results at the end of the last fiscal year.
Dear brothers and sisters , I am really impressed and I welcome this new
year with great hope. I assure you that the company is able to live up to
your expectations and to deliver the desired successes. We have strong
strategic plans that can proceed toward attracting successful projects and
expansions in line with the market situation in the region. Currently, the
company owns real estate assets with a total value of KD 221.1 million as
of December 31 2012, compared with a total value of KD252.1 million
in 2011. Shareholders’ equity amounted to KD83.3 million in 2012 as
compared with KD81.6 million in 2011.
Al Mazaya Holding announced its financial results for the year 2012,
making operational revenues of KD35.7 million as compared with
KD88.2 million in 2011.
Message from the Chairman
Rashid Yaqoub Al Nafisi
The total amount of liabilities to creditors was decreased to less than
half from KD36.3 million to KD17.4 million. The company achieved a
net profit of KD291 thousand in 2012, compared to KD15.84 million
loss in 2011, shifting losses to profitability. This success in generating
profit can be attributed to implementing a strategy of developing income
generating projects, which helped increase total operational profits, with
77% increase in rental revenues from KD1.6 million in 2011 to KD2.8
million in 2012. The total amount owed to banks was 49.41 in 2012,
compared with KD53.97 million in 2011. This represents 24.4% of the
total company’s assets.
We are sure that a ‘safe haven’ investment destination requires several
factors to be in play, and all the official authorities and other parties in
the country are seeking to see Kuwait and the region as a strong global
investment interface. They are doing this through issuing protective
legislation for the investment process, providing various facilities,
strengthening the durability of the financial sector, and establishing future
projects, starting from infrastructure projects, which doesn’t share the
limits of others sectors such as education, health and others, dependent
as they are on private projects.
Real estate, as you all know, has a main role in the cultural growth of the
contemporary world, as the growth of real estate drives transportation,
energy, construction, contracting, employment, engineering consultancy,
banking and finance, tourism, infrastructure, and others. However, the
opportunity of real estate sector growth varies according to the level of
these sectors’ contribution within it.
In conclusion, I can confirm that in 2013 Al Mazaya Holding will
continue to be as strong as before and has its next steps fixed based
on its strong internal and external foundations, especially the Board of
Directors, the distinguished executive management, and professional
engineers, technicians and all other officers of the company. It’s also very
clear that our shareholders play a major role in supporting the company
to achieve all the success it can in order to be the most prominent and
effective company in the region.
I wish you all a year full of peace, harmony, prosperity, and success.
Thank you,
Rashid Yaqoub Al Nafisi
Chairman
Rashid Yaqoub Al Nafisi
Chairman
