Al Mazaya Holding Started Conservative Policy in 2017
Al Mazaya Holding pre-qualified in 2017 for six new PPP investment opportunities to develop and operate residential and labour cities
-Completed the development of a world-class medical building in Sabah Al Salem, which has totally been rented out to leading doctors in Kuwait
-Developed and delivered four projects in Dubai in 2017 with total sales of 480 flats
-Acquired two plots of lands for over 800 residential units in the Liwan, Dubailand
-Completed concept design stage at its new project in Al Sharq area in Kuwait (Mazaya Downtown) and licensing has been entrusted to a leading local company in Kuwait
-Completing up to 65% of construction work at Al Mazaya Residence project in Oman, selling more than 40% of first phase units
KWD 7.22 million
Earnings per Share
Total Operating Revenues
KWD 60.83 million
Sales Revenues by end of 2017
KWD 7.60 million
Rental Revenues by end of 2017
KWD 229.81 million
Total Assets by end of 2017
KWD 119.11 million
Total Stockholders' Rights by end of 2017
Al Mazaya Holding yesterday held its ordinary General Assembly Meeting for the year 2017 at Al Mazaya Tower 1 in Al Mirqab-Sharq located within its three-tower compound in the heart of Kuwait City with an attendance record of 78.09%.
The meeting was opened by Mr. Rashid Yaqoub Al Nafisi, Board Chairman of Al Mazaya Holding, in the presence of Group's shareholders, members of the Board of Directors and Group CEO Eng. Ibrahim Abdulrahman Al Saqabi, along with the representative of the Ministry of Commerce and Industry, the Audit Offices, heads of the Company's various sectors and a number of investors and media professionals from Kuwait and other GCC states.
The meeting began with a three-section video highlighting the company's history, objectives, and finally the Group’s 2017 performance and achievements. The presentation echoes the Group's policy by keeping its shareholders informed of its plans and achievements during the past year in a smooth and comprehensive way through real still photographs and video footages of all its projects.
Addressing the meeting, Rashid Yaqoub Al Nafisi, Board Chairman of Al Mazaya Holding, reviewed the Group’s 2017 achievements, including the key milestones that translate Al Mazaya’s ambitious strategy.
“During the last year we signed a new investment contract for managing the company’s third project in the medical sector after the success it has achieved 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 Labour Camp Project in South Jahra,” Al Nafisi informed the attendees.
With regards to the 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, he said.
“Al Mazaya developed and delivered four projects in Dubai in 2017, and also acquired two plots of lands as part of the Q-Zone II project, located in the Liwan, Dubailand. Design and execution work already started in the project. The company completed the concept design stage at its new project in Al Sharq area in Kuwait (Mazaya Downtown).”
Al Nafisi informed, “Al Mazaya has achieved tangible progress at Al Mazaya Residence project in Oman. We also continued selling and renting of the Ritim Istanbul Development. Al Mazaya Logistics project in Bahrain Investment Wharf has been totally rented out with a 100% occupancy rate. Al Mazaya Holding continued its rental operations at its commercial towers in Al Olia and Al Ma'dhar areas in Riyadh.”
Reviewing the company’s financial results for 2017, Al Nafisi said, “In 2017, Al Mazaya posted KWD 7.22 million in net profits, with earnings per share reaching 11.60 fils, continuing to boost its operating performance thanks to an intensive focus on a robust operating plan based on a well-integrated strategy and a strict timeframe that boosted the company’s total operating revenues to KWD 68.61 million by the end of the year, showing an increase of 24.36% compared to 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 revenues by the end of 2016, showing a growth of 27.22%, with rental revenues increasing 6.80% to KWD 7.60 million by the end of 2017 compared to KWD 7.11 million rental revenues for the same period in 2016. The company's vision of expansion and tapping into new markets, which started several years ago, fructified into increasing 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.”
He affirmed that Al Mazaya is fully committed to enforcing modern auditing and sound corporate governance standards, calculating all essential allocations with full transparency and disclosure in a way that gives Group’s investors unrestricted access to the company's financial data, workings and operations.
Agenda of Al Mazaya General Assembly
Al Nafisi reviewed the rest of the assembly meeting agenda items for 2017, which have been fully approved. The attendees also approved the Internal Audit Report and the Corporate Governance Report for the financial year ended 31st December 2017.
They also listened to the auditor's report for the financial year ended 31st December and approved the Board of Directors' recommendations to distribute 8% of the par value of the stock in cash–equivalent to 8 fils per share to all shareholders registered until the date of the General Assembly meeting. He drives homes the fact that the company has kept a clean, violation-free sheet during the year.
The General Assembly approved a discharge of liabilities for the members of the Board of Directors, exonerating them of all legal claims for the financial year ended 31st December 2017.
Ibrahim Al Saqabi, Chief Executive Officer of the Group, said that over the last five years, “Al Mazaya has managed to maintain consistent growth in its operating revenues and financial results thanks to God Almighty. The year 2018 heralds a new era for the company to secure further phased growth that mitigates potential inflation-related risks in the future. Towards this end, the company in 2017 initiated new accounting standards that optimise financial allocations and meet the change in currency value on the markets in which it's operating in order to maintain a robust budget. This policy has resulted in a decline in the company's profits amid intensive operational mobility and strong operating revenue from sales and leasing transactions.”
He added that 2017 was "a challenging year, in which Al Mazaya was able to meet the rapid changes that had their own bearing on various economic sectors, especially the real estate platform in the various markets in which we operate. "The Group’s operational resilience is attributed to carefully crafted marketing and sales plans and sound decision-making at different administrative and executive levels," Al Saqabi affirmed.
He added that the company's ambitious vision for the future is reflected in its determination to enhance and diversify its investments within new sectors, while adopting new solutions and using novel tools to ensure sustained progress, prosperity and growth, and adhering to highest managerial and operational standards of transparency, credibility and sustainability.
Al Saqabi reviewed Al Mazaya Holding's achievements during the past year that, he said, "Add to the company's track record of success in various administrative, operational and financial levels, thanks to God Almighty and the unlimited support of the shareholders for the company's plans, projects and teams.”
-Al Mazay signed a new investment contract for managing its third project at the medical sector after the success it has achieved in this essential platform following its completed development of a world-class medical building to serve as an individual health clinic in Sabah Al Salem.
-Al Mazaya developed and delivered four projects in Dubai in 2017 hitting total sales of 480 apartments.
-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 have been entrusted to a leading local company in Kuwait: PACE, (an architecture, engineering and planning firm) to get the construction licence from state departments concerned.
-Completing up to 65% of the construction work at Al Mazaya Residence project in Oman. A large-scale marketing campaign has been implemented by the company for the project and resulted in selling more than 40% of the first phase units. Construction of the project’s 132-unit 2nd phase has already started.
-Continued selling and renting of 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 hitherto occupancy rate of 99% so far.
-Al Mazaya Holding continued its rental operations at its commercial towers in Saudi Arabia, achieving an occupancy rate of more than 71% in Al Olia Towers and 90% in Al Ma'dhar 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 that boasts the most robust and transparent corporate governance system for 2017.
-Applied VAT laws on its projects in the UAE and Saudi Arabia, by regulating its internal operations and dedicating a unit manned by qualified cadres in preparation for the application of the tax across all Gulf markets over the coming period.
Concluding, the CEO extended sincere thanks to the Chairman and Members of Al Mazaya Holding for their unlimited support. He also expressed his appreciation to the partners and shareholders of Al Mazaya and all the company’s partners for their dedication and tireless efforts in creatively leading, implementing and executing the company's operations, as well as for their staunch commitment to the mission and vision of Al Mazaya and the strategic plans set to achieve the goals and aspirations of its shareholders and valued customers.
Al Mazaya Holding Company
Al Mazaya is widely recognized as one of the most important and highly thought-of real estate development companies in the Middle East market, with numerous impressive projects. The company came about through a belief in the need for strong, rigorous investment in the region, and has prevailed in creating and maintaining the trust of large-scale investors in the Kuwaiti market and abroad.
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