UDC General Assembly Meeting approves formidable results for 2010

United Development Company (UDC), one of Qatar's leading public shareholding companies, held its Annual Ordinary Meeting and Extraordinary General Assembly Meeting (AGM) on Wednesday, February 16, 2010 at 6:00 PM. The meeting was held at The Four Seasons Hotel in West Bay.

The quorum was met in the presence of the majority of shareholders who approved the annual report and the 2010 financial results.

During the Ordinary general Meeting all motions proposed by the Board of Directors were adopted with respect to:

- Board of Director’s report on the company’s activities and its financial position for the financial year ending 31^st December 2010.

- Auditor’s report on the company’s accounts for the financial year ending 31 December 2010.

- Approval of the Company’s balance sheet and the profit and loss accounts for the financial year ending 31^st December 2010, and recommending the Board of Directors regarding the dividends (distribution of 20% bonus shares).

- The General Assembly released from liability All Members of the Board of Directors for the financial year ending 31 December 2010 and determined their remuneration.

- The General Assembly appointed KPMG as External Auditors for the financial year 2011 and approved their fees.

Whilst in the Extra-ordinary Meeting the following motions were adopted:

- Approval of the distribution of 26,812,500 bonus shares, representing 20% of the company’s capital, at a rate of two shares for every 10 shares held, in order to increase the Company’s capital to QR 1,608,750,000, and amending the company’s memorandum and articles of association accordingly and authorizing the Board of Directors to deal with the share fractions.

- Issuing convertible bonds not exceeding QR 1,072,500,000 (One Billion Seventy Two Million and Five Hundred Thousand Qatari Riyals) or equivalent in foreign currency, in private subscription the conditions of which shall be determined by the Board of Directors, and authorizing the Board of Directors to take all required measures.

The meeting was called to order by Hussein Al-Fardan, UDC Chairman who said: “2010 was, in so many ways, a pivotal year for UDC, for Qatar and indeed for the global economy. UDC’s performance and achievements continued to grow in both business and financial terms due to the hard work, diligence and passion of our employees, partners and associates. UDC continues to focus on transparency and responsible corporate governance, through the inspiration, guidance and encouragement of His Highness Sheikh Hamad Bin Khalifa Al Thani, the Emir of Qatar.”

“UDC has entered this new decade with renewed optimism. This will be in evidence throughout our company in 2011 as we complete new stages in our flagship development The Pearl-Qatar, embark on new business ventures, and continue to grow the presence and market share of our group companies.”

“The successes UDC has been able to achieve over the past twelve months vindicate the commitment to innovation and opportunistic investment that was applied throughout 2010. Our results continue to trend strongly upwards and represent the robust position the company finds itself in today,” said Khalil Sholy, UDC’s Managing Director and President.

“Across the UDC portfolio of projects and operations, results have been strong. Revenues for 2010 approached QR 1.2 billion despite continuing challenges in the global economic climate.  Most pleasing of all, our earnings per share rose from QR 3.77 in 2009 to QR 4.45 in 2010, a rise of 18%.  Net profits also climbed 18%, rising to QR 597 million versus QR 505.4 million in 2009.

Sholy confirmed UDC’s continuing commitment to consolidate the financial robustness of the Company in 2011 and in the years ahead. “With the well received selection of Qatar to host the FIFA World Cup in 2022 the Company is looking forward to steady growth across all sectors in 2011 and beyond. We remain committed to providing shareholders and partners with steady, measureable and consistent growth, mindful of national growth forecasts which we fully expect to be delivered under the wise stewardship of His Highness The Emir, Sheikh Hamad Bin Khalifa Al Thani”, Sholy said. 

2010 is the beginning of the second decade of operations at UDC and marks a turning point in the evolution of the Company.  The past year saw the Company achieve a number of significant milestones: 

The Pearl-Qatar is now an established and growing international community, and is known throughout Qatar as Doha’s ‘Riviera Arabia’. Built around a series of stunning ports and marinas, The Pearl-Qatar’s main Porto Arabia precinct is now a thriving, multi-cultural destination, replete with international hospitality and retail outlets.  In 2011 additional precincts are expected to open in Medina Centrale and Qanat Quartier.  These will add greater dynamism to the island as each offers dramatically different residential, lifestyle offerings to the development.

Medina Centrale precinct will be opened by the end of this year 2011, most of the built-up area residential apartments have been completed, and fully completed core and shell works for retail shops in all parts of the precinct.

Quanat Quartier precinct will be opened this year 2011, the residential units fully completed, and only the final touches and finishings are underway

Qatar Cool has opened the world largest District Cooling System plant at The Pearl-Qatar, and achieved international recognition winning two prestigious international awards in 2010, and the company also brought The International District Energy Association’s Fifth Middle Eastern Conference (Greener Buildings, Smarter Grid) to Qatar for the first time.  

Middle East Dredging Company (MEDCO), increased market share in UAE by winning a part of a contract ($ 260mn) for mixed dredging and civil engineering works to construct two artificial energy islands in Abu Dhabi, moreover, it has invested Euros 100 million into the purchase of ‘Al Jarraf’, a brand new Cutter Suction Dredger. In 2010 MEDCO also qualified for ISO 9001 and is hoping to achieve ISO 14001 qualification in 2011.

United Fashion Company (UFC) opened a further 22 outlets on TPQ including Santoni, Rene Caovilla, Etro, Calvin Klein Collection and Salvatore Ferragamo, among others.

Hospitality Development Company (HDC) added Pampano (Mexican), Tse Yang (Chinese) and Liza (French nouveau) to its list of hospitality venues.

Insure Plus was incorporated as a wholly owned UDC subsidiary in 2010 to fill a need in the Qatari insurance market for professional and competent agents and risk management consultants.

PragmaTech launched Crtl and snagR sales in 2010, listed in the Gilbane Group Report on Semantic Technologies, and completed more than 12 new projects for major international clients.