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ANNUAL REPORT
2015
At the operational level, the company was able, by the grace of Allah, to achieve a high sale rate in terms of its
projects and properties offered for sale, such as its projects in the United Arab Emirates and the Republic of Turkey.
The company has also managed to increase its revenues from rental activities, which accounted for 96% of the
company’s total operating profit.
At the financial level, the company was able, by the grace of Allah, to achieve impressive financial results, with a
157.6% increase in the gross profit generated from operating activities amounting to KWD16.14 million in 2015,
compared to KWD6.27 million in 2014.
I am also pleased to inform you about the company’s latest achievements in terms of credit facilities. Al Mazaya was
able to convert 100% of its loans into Islamic financing, as well as reducing the cost of financing and converting all
its loans from short term to medium and long term, which demonstrates the company’s solid financial position and
its credibility in the market.
Dear Shareholders,
Please allow me to present the most important achievements made by Al Mazaya Holding throughout 2015. They
are as follows:
• Al Mazaya acquired a commercial tower in Riyadh, KSA through a subsidiary company. The tower, situated in the
Al-Olia area, was acquired for KWD10.5m and has an annual investment yield of up to 9%.
• Through its Al Mazaya Real Estate Development subsidiary, Al Mazaya purchased a plot of land located in Kuwait
city, Sharq area worth KWD 8m. The master plan and concept of the project is currently being developed and an
engineering firm will be appointed to commence the design and licensing works.
• Al Mazaya has awarded construction works for its 17-storey medical facility in Sabah Al-Salem, Kuwait, to a
leading contractor. Drilling and piling works on the 2,000 square meter project commenced in preparation for the
structure works, which will take 20 months to complete.
• Al Mazaya advanced the progress at Ritim Istanbul project (a joint venture project with Dumankaya Real-Estate),
with over 70% of the units sold. The project is 85% complete and the handover of the project is expected next April.
• Al Mazaya continued its extensive marketing campaigns to sell Queue Point units in Dubai. The project is 82%
complete and 80% sold, and the handover of the project is expected end of 2016.
• Al Mazaya completed the Logistics Services Project in Bahrain and started operation on the project. The current
occupancy rate is 45%.
• Al Mazaya awarded construction works for the Mazaya Residence project in Al-Mawaleh, Al Seeb Governorate in
Muscat, Oman to a leading contractor. The project extends over an area of 23,193 m² and is expected for completion
in 24 months.
• Al Mazaya achieved 35% completion of the first phase of the Queue Line residential project, which consists of
four new buildings in Dubai Land, Dubai. Construction works are progressing to hand over the project by the end
of 2016.
• Al-Mazaya boosted the income generated from the existing fully occupied projects by renewing lease contracts
and increasing rates to reflect the current market prices, as well as the quality services provided by the Property
Management Department. This step helped increase the operating revenue generated from leasing operations.
• NBK Capital estimated the fair value of Al Mazaya stock at 165 fils, after taking all the precautionary measures of
the evaluation standards into consideration, and following an in-depth study of the company’s projects and balance sheet.
Ladies and Gentlemen,
Al Mazaya is currently studying many investment opportunities in the markets in which it operates, particularly in
the GCC and Turkey, which are the most appropriate avenues for the company’s expansion strategy. Al Mazaya has
gained great confidence in these markets following its proven track record of completed real estate projects. The
company’s growth in these markets will entail many strategic partnerships and joint ventures with elite investors to
achieve the highest returns that serve the interest of the company and investors alike.
May Peace, Mercy and the Blessings of Allah be upon you.
Group CEO
Eng. Ibrahim A. Al Soqabi
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