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.P Holding Board of Directors Report
Mazaya Holding Company KSCP (Holding) For the Fiscal Year Ended on 31/12/2023
Sisters and Brothers
Our valuable shareholders
May peace and blessings of Allah be upon you,
We would like to welcome you again in our first meeting for the new year, and pray to Allah the Almighty to grant us and you all goodness and success, and for the next stage in Al Mazaya Company journey to be a transformation stage towards new horizons through which we look forward to raising the business standard of the Company on all the administrative, operational and financial scales.
Our valuable audience:
During the year 2023, Al Mazaya Holding Company witnessed various events which impacted the Company’s results of operations during the year, for which we were able, with the blessings of Almighty Allah to find strategic solutions consistent with those conditions and addressed some of them, whereby we came out with the required operational success in 2023. Further, we were able to secure the liquidity requirements and preserve the strength it’s the Company’s financial position and its cash flows as well, with full determination to meet the Company’s financial obligations towards all banks, contractors, and suppliers in order to prepare the Company for a new launch for the upcoming years.
Ladies and Gentlemen:
In this respect, we are pleased to present the annual report of your Company for the fiscal year ended on 31 December 2023 to you, in which we will, present a quick summary of the most significant achievements of the Company on the operational and fiscal levels.
During 2023, and with the blessings of Allah the Almighty, Al Mazaya Company had achieved total operational revenues of almost KD 15.92 million by the end of 2023 compared to KD 15.69 million in 2022 due to the sales and lease operations of the Company during the year. Revenues from rental operations had amounted to KD 12.61 million by the end of 2023 compared to KD 11.59 million in 2022, with an increase of almost 9% which resulted in gross profits from rental operations of KD 10.55 million by the end of 2023 compared to KD 9.64 million in 2022 with an increase of almost 9%. Furthermore, the Company had achieved operational profits of almost KD 7.53 million compared to operational losses in 2022 amounted to (KD 3.98) million, resulting in a significant improvement of almost 289% compared to last year. Despite this success and growth on the operational level, the exit from the Company’s investment in the Republic of Turkey had resulted in the reclassification of the foreign currency translation losses from the foreign operations which relates to the disposed subsidiary in the Republic of Turkey in addition to the goodwill impairment related to another subsidiary had resulted mainly in total non-recurring losses of almost (KD 24.84) million by the end of 2023. It is worth noting that the aforesaid reclassification did not have any impact on the shareholders equity or the book value per share. As for the financial position, Al Mazaya Company holds strong assets amounting to KD 164.45 million by the end of 2023, comprised mainly of real estate and operational assets which supports the Company’s targets and future plans to improve and promote the Company’s financial position in response to the challenges faced by the Company in this respect.
Dear shareholders:
In this respect, and according to the corporate governance rules and regulations, the board of directors of Al Mazaya Holding Company declares and undertakes the integrity, impartiality and credibility of the financial statements and all the reports presented to the shareholders, and that they include all the Company financial aspects, including operational details and results.
Sisters and brothers:
I would like to present to you a number of the Company’s achievements on the ground during 2023, which were the outcome of the preset action plan which enabled the Company to achieve the targeted operational results, as the Company was able to significantly reduce its liabilities towards banks during 2023through the repayment of more than KD 30 million to those banks, which resulted in the reduction of more than 31% of the Company’s total bank debts towards banks in one year as compared to the Company’s total bank debts by the end of 2022. This is expected to have a valuable positive impact on the reduction of the finance cost for Al Mazaya Company during the upcoming years. In addition, the Company promoted its relationships with the banks and investors, as it had successfully reprofiled some of its bank facilities with the main banks with locally and abroad, with better terms and conditions that shall serve the Company’s strategic goals in the forthcoming years.
The Company was also keen to distribute interim dividends to the Company shareholders as bonus shares from treasury shares by 2% despite the significant challenges in 2023 in that respect, thanks to the support and confidence of its shareholders.
The Company had successfully implemented the swap of the “Rights to purchase real estate properties” owned by a subsidiary which were previously acquired from the main developer of one of its projects by other high quality real estate assets in (Jabel Ali Palms) project in the United Arab Emirates, with total value of approximately KD 8.3 million. Also, the Company had finalized the termination and settlement of the sale transaction of a subsidiary to the Group, which had resulted in realizing a partial profit from that transaction of KD 400,000 during the year 2023.
Furthermore, Al Mazaya Company has implemented most of the procedures related to the merger by amalgamation with Dubai First Real Estate Development Company during the year 2023 through the relevant board of directors and general assembly meetings (both ordinary and extraordinary), coordination and constant follow up with the related regulatory authorities to obtain all the required approvals and consents in that regard. To achieve that, the Company had relied fully on its internal team for implementing and following up all the merger procedures and coordination with the regulatory authorities, without the need to appoint external consultants for that purpose, except for external consultants that are officially required by the regulatory authorities in this respect. This leads to the reduction of the related costs for the Company without impairing the required speed and efficiency in finalizing those required procedure
Finally, those achievements by Al Mazaya Company fostered the balance of the cash flows during the last year and increased the operational profits, and enabled the preparation for a new stage consistent with the inputs for the upcoming years according to sound, well planned, and practical basis.
Dear shareholders:
At the end, I would like to express on behalf of myself and the members of the board of directors my sincere gratitude and appreciation for your great and continuous support to the board of directors, and extend my warm gratitude and appreciation to you, our valuable shareholders, for your confidence in us. I would also like to extend my appreciation to every member of Al Mazaya’s team for their sincere efforts exerted for raising the Company’s standard and its brand in order to reach higher levels and achieve all our planned targets, with the will of Allah the Almighty.
I wish you and Al Mazaya Company continuous prosperity and success. May peace and blessings of Allah be upon you.
Rashid Yaccoub Al Nafisi
Chairman
Brothers & Sisters
Distinguished Shareholders
Peace, mercy & the blessings of God be upon you all!
Today we present you with an overview of the operational and financial results that we achieved in 2017. It was a successful year during which Al Mazaya Holding continued to grow its operating revenues. Demonstrating the company's resilience and ability to continue to evolve is in line with its ambitious strategy to lead the market domestically and regionally by securing diversified and balanced sources of income.
Al Mazaya Holding has established its leading position in the real estate market through its outstanding property projects and impressive achievements in the development, construction, sale and delivery of several projects throughout the year.
Today, we present you with the annual report of your company for the financial year ending on 31 December 2017. Our review features a detailed breakdown of the financial results and a glimpse of the achievements by the company during the past fiscal year.
Because your satisfaction and the satisfaction of our customers is our top priority, we assure you that Al Mazaya is committed to delivering premium products, projects and real estate services year after year. We attribute this success and our march of excellence to the trust you have placed in us to maintain Al Mazaya Holding's achievements, and to take further steps on the path to perfection.
My Fellow Shareholders,
Al Mazaya has a wide portfolio of real estate projects launched in line with international standards and criteria. Our top priority is our relationships with our investors that is governed by full transparency and disclosure, which provides our investors unrestricted access to the company's workings and operations.
Al Mazaya continues to strengthen its presence and competitiveness within the GCC and the Middle East through its active participation in real estate conferences and exhibitions to promote its brand and projects, reaching the largest segments of investors and customers.
Brothers & Sisters,
In 2017, Al Mazaya posted KWD 7.22 million in net profits, with earnings per share reaching 11.60 fils. We continued to boost operating performance thanks to an intensive focus on a robust operating plan that is based on a well-integrated strategy and a strict timeframe. The company’s total operating revenues increased to KWD 68.61million by the end of the year, which represents a growth of 24.36 % from KWD 55.17 million by the end of 2016. The group’s operational resilience is attributed to well-thought-out marketing and sales plans that secured sales revenues of KWD 60.83 million for 2017 against KWD 47.81 million by the end of 2016— a growth of 27.22 %. Rental revenues increased by 6.80% to KWD 7.60 million by the end of 2017 against KWD 7.11 million for the same period in 2016
The company's vision of expansion and tapping into new markets, which started several years ago, has increased our total assets to KWD 229.81 million at the end of 2017, with total stockholders' rights hitting KWD 119.11 million by the end of 2017.
The Board of Directors of Mazaya Holding consistently adheres to and recognizes the integrity and the credibility of the financial statements and the reports provided to the shareholders that covers the details of all the financial aspects and operating results of the company.
Valued Shareholders
Al Mazaya has been fully committed to apply the new accounting standards, calculating all essential provisions and selling all low-yield units on the back the company’s robust operational model. Its stable financial results from a determination to maximise its shareholders’rights, further strengthen its financial position, and protect the company’s budget against any future risks. This carefully-crafted and conservative approach has had its own bearing on the company’s net profit by the end of the year.
In a token of gratitude to its stockholders and a demonstration of our strong belief in recognising their contributions to the company’s growth, Al Mazaya Board of Director has recommended thedistribution of8 % of the par value of the stockin cash– equivalent to 8 fils per share to all shareholders in a move that reflects the robust financial position of the company and its resilient balance sheet as well as its balanced future outlook.
Noble Attendees
The year 2017 witnessed a series of achievements that we would like to present to you as they constitute quality projects that ideally fit within our ambitious strategy.
During the last year, we signed a new investment contract for managing the company’s third project in the medical sector after our previous success in the healthcare field.
Al Mazaya Holding was pre-qualified in 2017 for six new investment opportunities to develop and operate residential cities in Jaber and Sabah Al Ahmad areas for the Labor Camp Project in South Jahra.
With regards to our projects, the company has completed the development of a world-class medical building to serve as an individual health clinic in Sabah Al Salem. The project has totally been rented out to leading doctors in Kuwait.
Al Mazaya also developed and delivered four projects in Dubai in 2017, and acquired two plots of lands as part of the Q-Zone II project, located in theLiwan, Dubailand. Design and execution works have already startedfor the project. The company completed the concept design stage at its new project in Al Sharq area in Kuwait (Mazaya Downtown). Al Mazaya has achieved tangible progress for the Al Mazaya Residence project in Oman. We also continued the selling and renting of the Ritim Istanbul Development. Al Mazaya Logistics project in Bahrain Investment Wharf has been totally rented out at a 100% occupancy rate. Al Mazaya Holding continued its rental operations at its commercial towers in Al Olia and Al Maathar areas, Riyadh.
Noble Shareholders,
We assure you that Al Mazaya Holding is moving towards a bright future. We thank God the Almighty and the virtue of your support to us. We will continue to advance Al Mazaya towards universality through the planned expansion into new markets in the near future. We will continue to work diligently on the development of existing and new projects, as per our innovative plans and in accordance with our in-depth studies.
Finally, I would like to extend my thanks and gratitude to all those who have contributed to these results and successes. I also take this opportunity to express my deep thanks and appreciation to the members of the Board of Directors and to all our colleagues at the company for their efforts and dedication.
May God's peace and mercy be upon you,
Rashid Yaqoub Al Nafisi
Chairman