Al Mazaya Holding Company is the result of an idea for investment taken to its logical conclusion. Thinking big, creating high value and earning, as well as growing and maintaining the trust of big-time investors in the Kuwaiti market and abroad, have been the hallmark of Al Mazaya. We provide a wide range of real estate products and services across the spectrum, from purchasing, apportionment and developing of large areas in select zones to offering ready-to-use residential and commercial spaces.
Al Mazaya Holding Co (K.S.C) a leading property firm in the region.
Rashid Yaqoub Al Nafisi
Dear Brothers and Sisters,
My warmest greetings to you all…
I welcome you all to our first meeting in the New Year, 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 optimize 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 estate markets hit by serious difficulties, by selling our assets, reducing operations and optimizing administrative costs. 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.
The prominent commercial brand of Al Mazaya Holding carries great weight in the real estate industry after the company has successfully left a strong imprint through its distinguished projects at the local and international levels over the past sixteen years, during which the company has made resounding successes in a number of Arab countries and Turkey thanks to the credentials it boasts and which qualify the company to access any real estate market worldwide, through an integrated business model and highly qualified administrative teams in addition to an impressive portfolio of distinguished real estate projects.
Ladies and Gentlemen,
In this regard, it’s our sincere pleasure to present you with the annual report of your company for the fiscal year ended on December 31, 2019, in which, as is the case always, we present a quick summary of the key milestones at the operating and financial levels. Al Mazaya Holding - thanks to Almighty Allah – achieved a total operating revenues of about KWD 27.86 million by the end of 2019 compared to KWD 22.06 million at the end of 2018, driven by successful sales and leasing operations which resulted in leasing revenues of KWD 8.73 million by the end of 2019 compared to KWD 8.38 million in 2018. The company secured KWD 7.02 million in leasing profits by the end of 2019 compared to KWD 6.75 million in 2018. Sales revenues increased by nearly 40% to KWD 19.08 million in 2019 from KWD 13.58 million in 2018, which demonstrates the company’s resounding success in addressing the markets affected by the current conditions. However, the increased sales amidst the drop in real estate prices in the aforementioned affected markets triggered total losses of KWD 8.77 million by the end of 2019.
Al Mazaya Company has solid assets of KWD 229.34 million by the end of 2019 compared to KWD 225.62 million in 2018, while total ownership rights dropped to KWD 92.98 million by the end of 2019 from KWD 104.12 million in 2018. In accordance with the Corporate Governance Rules, Al Mazaya Holding Board of Directors acknowledges and guarantees the integrity and authenticity of the company's financial statements along with all the reports submitted to
Shareholders that include the company's financial profile, data and operating results.
Brothers and Sisters
Allow me to review the achievements made by the company during the past year, thanks to an integrated business plan that included three tenets, which enabled us to achieve the aspired financial and operating results. The first tenet is to reduce the company’s presence in the real estate markets affected by the current difficulties. The company was able to sell the majority of the units of the Q-Zone project in the Dubai land, which consists of 328 apartments, after the full completion of the project, in addition to selling 110 apartments in Q-Point and Q-Line. In Istanbul, the company succeeded in selling 50 apartments in the Ritim Istanbul Project. The company also sold 23 apartments at Mazaya Residence in the Sultanate of Oman, thus managing to reduce its economic exposure in the Dubai and Turkey markets.
The second tenet is restructuring and the company's debt. Al Mazaya has succeeded in fulfilling all the company's financial obligations for banks and contractors. We have been determined to achieve the best financial results by reaching convenient agreements with our lenders to schedule current, medium and long-term debt. The third tenet is enhancing the company’s operations by raising occupancy rates in the projects under leasing while completing the projects under development in addition to launching new projects in the medical sector. The company has succeeded in achieving a 100% occupancy rate in its current medical projects, including Clover Medical Centre in Jabriya, the Wara Hospital in Sabah Al-Salem and Mazaya Clinic 3 in Bneid Al-Qar. Up to 98% and 90% occupancy rates have been achieved in Al Mazaya Towers in Kuwait City and the Sky Gardens in the Dubai International Financial Centre, respectively. A 100% occupancy rate was achieved in the Indigo despite the challenges besetting the UAE real estate market; the company also maintained an occupancy rate of 60% in the Ritim Istanbul, in addition to a 100% occupancy rate in the Mazaya Logistics in Bahrain and an average occupancy rate of 70% in its projects in Saudi Arabia.
The company has been able to maximize gains from its projects in the healthcare sector in a manner that ensures the optimal utilization of available and income-generating opportunities, by introducing new projects in the medical sector in 2019, including the “Mazaya Clinic 4” and “Mazaya Clinic 5” projects, both of which are complimentary to the Al Mazaya Clinic Series, which are specialized in this important and vital sector that secures significant returns for the company.
We’ve succeeded in completing Al Mazaya’s underdevelopment projects, creating a solid ground for the company to rise again in the coming year without any financial or logistical obligations towards all the markets in which it operates. Finally, we can safely say that the well-thought-out strategies adopted by Al Mazaya have cemented the financial position of the company and will ensure balanced cash flows during the current year. We will adhere to our precautionary measures and well-calculated steps to survive the rapid geopolitical and economic challenges surrounding the Middle East region, as well as tirelessly continue to work to establish a new stage that meets the growing demands of the coming years.
In conclusion, I would like to extend my sincere thanks and gratitude to all of you for your support as well as my appreciation to all those who’ve contributed to the company's prestigious status, remarkable achievements and coveted branding. Many thanks to all our Board members, and our colleagues in Al Mazaya Holding!
May God's peace, mercy and blessings be upon you all!