Dear Shareholders
Peace, Mercy and Blessings of Allah be upon you,
Today, at the start of 2012, we meet here again to present the experiences
of the last year and the practical plans for the coming period. Please allow
me on behalf of myself and every member of the Al Mazaya Holding
team, both management and technical, to once again extend our thanks
and appreciation to you for the constant and unlimited support you gave
us over the previous periods. 2011 was a year of laying the groundwork
and preparing for a new phase of achievements to which we are strongly
looking forward. Al Mazaya was able to achieve a number of settlements
and exits with investors, including those who were defaulted or delayed
from paying off their obligations. This step by Al Mazaya helped lay the
foundation to conduct a number of deals and amendments that will serve
the interests of both the company and its investors.
We present with you, as we have in the past, the annual report of Al
Mazaya Holding (K.S.C) for the fiscal year ended on December 31, 2011.
The company was able to maintain performance stability and to achieve
and deliver most of its projects to the value of KD 68.8 million. This was
accompanied by a phase of negotiation with defaulted investors, therefore
adding financial burdens to the company and making it imperative to look
for new methods and ways to identify win-win solutions for all parties.
During 2011, despite the relative recovery in the real estate markets in
the GCC countries, the year was still a sensitive and difficult one in terms
of the big decisions, which the real estate companies had to make in
their markets. Al Mazaya’s commitment to its clients and shareholders
was clear throughout the year, as the company did not stop completing its
projects in Kuwait and the UAE, and managed to lease the largest part of
its revenue generating projects, ensuring steady returns for the company.
This can be considered as one of the most important achievements in
2011, and an objective that is expected to be reached to an even greater
extent in 2012.
In terms of results, the total assets amounted to KD 261.7 million, while
shareholders equity amounted to KD81.6 million, and bank debts
reached KD 53.97 million, which represents only 21% of total company
assets and 62% of total shareholders’ equity. Al Mazaya did everything in
its power to maintain its relative stability throughout 2011. Operational
revenues reached KD 87.7 million, other revenues were KD 520,000 and
the total revenues amounted to KD 88.2 million.
Message from the Chairman
Rashid Yaqoub Al Nafisi
The share value does not reveal the company’s true performance, or its
ability to develop and progress.
The company was able to restructure its real estate assets and pay off its
due financial obligations, as part of the plan of liquefying and exchanging
these assets.
In addition, Al Mazaya implemented its plan of revenue generating
projects and successfully operated its four mega revenue generating
projects in Kuwait, Dubai and the KSA. The company has annual returns
that are expected to continue for the new fiscal year.
The company is collecting all the revenue generated from sale transactions
in projects in accordance with rate of completion. The company is, also,
acquiring all the residential and office units that are already sold out but
where buyers are unable to pay due to impacts of global financial crisis.
The Emirate of Dubai has issued clear regulations for acquisition of these
assets. Acquisition will boost the company’s assets and financial results.
Al Mazaya has set a plan to list these assets in their revenue generating
projects or in the projects offered for sale.
It is worth mentioning that Al Mazaya was able to achieve significant
results with Mazaya Qatar as part of the management and development
contract signed with them. Al Mazaya culminated its success in this area
by the delivery of residential projects and providing five-year work plans,
including mega projects that include all the residential and commercial
sectors. This reflects positively on Al Mazaya Holding.
Despite all the changes in real estate markets, Al Mazaya is looking
for promising investment opportunities, be it a real estate projects
or transactions, investment in real estate portfolios, or other types of
investment.
Dear shareholders,
In conclusion, we renew our thanks and appreciation to you for your
confidence, and express our gratitude for your support throughout these
exceptional and extraordinary circumstances. We are looking forward to
even greater achievements that serve the interests of our company.
Thank you,
Rashid Yaqoub Al Nafisi
Chairman
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