Ladies & Gentlemen,
Let the Peace, Mercy & the Blessings of God be Upon You All
Once again, we meet with you at the beginning of the calendar year to take pride in presenting the achievements made by your prestigious company: Al Mazaya Holding. Over the past year, we have had monumental success at the administrative, operational and financial levels. Our confidence in continuing these impressive achievements in 2018 are very high. Firstly, we offer thank to Allah the Almighty and to you for the ongoing support to our plans, operations and team members at all levels.
We are looking forward to further successes and accomplishments that translate our ambitious strategy. We will continue to diversify our investments across multiple sectors, while using innovative new tools that adhere to strictest standards of integrity, transparency, and sustainability.
Dear brothers and sisters,
Last year was a challenging one during which we were able to cope with rapid and multi-faceted challenges that have impacted the region's economic sectors. The real estate sector across the different markets we are working in was particularly affected.
While surviving such challenges, Al Mazaya has renewed its pioneering position as a first-class property developer. Our vision and well thought-out plans are the result of t a scientific and professional approach. Our experts have made sound decisions at various administrative and executive levels. From this perspective, I would like to present a number of the company's achievements during 2017.
Over the past five years, Al Mazaya Holding has managed to keep growing our operating revenues while shielding the company against future inflation-related risks. By ensuring the application of modern auditing criteria and addressing the impact of fluctuating currency values in our key markets, we are working to maintain a balanced budget. This approach has resulted in a decline in the company’s net profit on the back of intensive operating mobility and resilient operating revenues from sales and rental operations.
With this context in mind, I’d like to present the achievements of 2017:
We continued to boost the company’s operating performance through an intensive focus on a robust operating plan, a well-integrated strategy and a strict timeframe. This boosted the company’s total operating revenues to KWD 68.61million by the end of the year, an increase of 24.36% from KWD 55.17 million by the end of 2016. The Group’s operational resilience is attributed to a carefully-crafted marketing and sales plans. As a result, secured sales revenues of KWD 60.83 million for 2017 increased from KWD 47.81 million by the end of 2016, which represents a growth of 27.22 %. Rental revenues increased 6.80% to KWD 7.6 million by the end of 2017 against KWD 7.11 million for the same period in 2016.
Brothers & Sisters,
I have the pleasure of presenting you with even more achievements in 2017, which are as follows:
-Al Mazaya signed a new investment contract for managing its third project at the medical sector after the success it has achieved in this essential platform.
-Al Mazaya Holding is pre-qualified for new six investment opportunities to develop and operate residential cities in Jaber and Sabah Al Ahmad and for the Labor Camp Project in South Jahra.
-Al Mazaya has completed the development of a world-class medical building to serve as an individual health clinic in Sabah Al Salem. The project has been completely rented out to leading doctors in Kuwait.
-Al Mazaya developed and delivered four projects in Dubai in 2017, selling 480 flats
-Al Mazaya Holding acquired two plots of lands as part of the Q-Zone II project, located in the Liwan, Dubailand, with a capacity of 500 residential units for mid-income categories. Design and execution works already started in the project.
-Completion of the concept design stage at its new project in Al Sharq area in Kuwait (Mazaya Downtown) through Gensler, an integrated architecture, design, planning and consulting firm. The final design and architectural licensing has been entrusted to a leading local company in Kuwait, named PACE. This architecture, engineering and planning firm received the construction license from state departments concerned.
-Completing up to 50% of the construction work at Al Mazaya Residence project in the Al Seeb Province in the heart of the Omani capital, which is due for handover in Q2 of 2018. Construction work on the project’s foundation and basement that is spread over 6,614 square metres has been completed. The project’s first phase consists of 120 apartments and 28 shops. A large-scale marketing campaign has been implemented by the company for the project and resulted in selling 40% of the first phase units. Construction of the project’s 132-unit 2nd phase started and will be marketed soon.
- We have continued to sell and rent the Ritim Istanbul Development, which consists of 6 residential towers and a mall. A large number of the project’s residential units have been sold, with the mall’s occupancy reaching 55 per cent so far by a number of key regional and global brands.
-Al Mazaya Logistics project in Bahrain Investment Wharf has been totally rented out at a 100% occupancy rate. It represents an audacious business platform for logistics investments with a previous occupancy rate of 99 %.
-Al Mazaya Holding continued its rental operations at its commercial tower in Al Olia area, Riyadh, achieving an occupancy rate of more than 71% there and 90% at Al Maathar Towers.
-Al Mazaya Holding has been named among the top 50 companies listed on the Kuwaiti Stock Exchange by “Forbes Middle East”, a leading source for reliable business news and financial information. The announcement was made at the annual ceremony organised by the magazine under the patronage of Sheikh Mohammad Abdullah Al-Mubarak Al-Sabah, Minister of State for Cabinet Affairs.
-Al Mazaya Holding has been ranked among the top 10 out of 233 listed companies in Kuwait for the second consecutive year, boasting the most robust and transparent corporate governance system for 2017.
-We applied VAT laws on its projects in the UAE and Saudi Arabia, by regulating its internal operations and dedicating a unit manned by qualified experts in preparation for the application of the tax across all Gulf markets over the coming period.
Ladies & Gentlemen,
I would like to conclude by thanking the Chairman and Members of Al Mazaya Holding for their unlimited support. I would also like to extend my thanks and appreciation to the partners and shareholders of Al Mazaya and all our strategic partners. The success we have made has been the result of your dedication and tireless efforts in creatively leading, implementing and executing the company's operations. I would also like to thank them for their staunch commitment to the mission and vision of Al Mazaya and the strategic plans that have been set to achieve the goals and aspirations of our shareholders and valued customers.
Peace, mercy & the blessings of God be upon you all.....
Eng. Ibrahim Abdul Rahman Al Soqabi,
Group CEO of Al Mazaya Holding