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AL-MAZAYA HOLDING COMPANY - K.S.C. (PUBLIC) AND ITS SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2023
(All amounts are in Kuwaiti Dinar)

Consistent with others in the industry, the Group monitors capital on the basis of the gearing ratio. This ratio is
calculated as net debt divided by total capital. Net debt is calculated as total debt facilities less cash and cash
equivalents, and term deposits. Total capital is calculated as ‘equity’ as shown in the consolidated statement of
financial position plus net debt.

For the purpose of capital risk management, the total capital resources consist of the following components:

June 30, December 31,
2023 2022 June 30,
(Audited) (Audited) 2022
Islamic bank facilities 85,017,716 95,792,606 99,270,567
Less: Cash and cash equivalents (11,486,615) (6,357,880) (4,826,087)
Less: Term deposits (1,218,000) - -
Net debts 72,313,101 89,434,726 94,444,480
Total equity 56,858,756 63,136,511 77,073,956
Total capital resources 129,171,857 152,571,237 171,518,436

Gearing Ratio 55.98% 58.62% 55.06%

31. Significant events
During the period ended June 30, 2023, and according to the Parent Company’s Board of Directors meeting held on
March 22, 2023, a preliminary agreement was reached between Al Mazaya Holding Company - K.S.C.P. (Parent
Company) and First Dubai Real Estate Development Company - K.S.C.P. (Subsidiary) regarding their intention to
study a Merger by Amalgamation, where Al Mazaya Holding Company - K.S.C.P. will be the “Merging” company and
First Dubai Real Estate Development Company - K.S.C.P. will be the “Merged” company. Both companies are currently
in process of completing the related studies in that regard.

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