Press Release

The First Dubai Real Estate Development Company – a subsidiary of AL Mazaya Holding Company – signed an agreement with a local Islamic bank to renew credit limits in a foliate format. The loans mounting to 3.5 million Kuwaiti Dinars can be rescheduled so that the repayment of indebtedness can be done decreasingly over a period of five years starting from 2013 until 2017. The annual payments would be payable at the end of each year, and would include the amount of the profits.

Commenting on this agreement, the Engineer Ibrahim Saqabi- the vice chairman of First Dubai Real Estate- said that this step was aimed at reducing the profit rate and the cost of funding the company. This has resulted in lower financing expenses from the third quarter of the year 2013, in addition to short-term commitments (mounting to 3.5 million Kuwaiti Dinars) being turned into long –term ones. Thus all the commitments of the company become 100% long- term towards banks, which makes it compliant with Islamic Sharii’a.

He added that Dubai First is one of the foremost real estate companies which have proven their presence in the GCC Market even during the recent global crisis. The company has managed to overcome the crisis and move forward to the implementation and operation of its real estate projects in the Emirate of Dubai. The prime example is the “Sky Gardens” project consisting of an integrated residential and commercial tower that has been completed and has been furnished by the “Fendi Furniture Collection”. The company has sold nearly 50% of its project earlier, and retained the remaining percentage in order to rent them and achieve greater annual revenues which could exceed to 1.5 million Kuwaiti Dinars.

AL Saqabi pointed out that the company has other projects, including the Residential Villa in “Dubai Land” which consists of a number of residential villas. The company has fully succeeded in implementing and selling 90% of the project, thus achieving great revenues owing to the sale of property held for trading. The revenues have exceeded 2 million Kuwaiti Dinars and have been accounted in the financial statements for the first half of this year.

He also said that the company has a distinguished portfolio of properties in the United Arab Emirates, including residential and commercial land in the “Shams Abu Dhabi” project located in AL Reem Island, which the company, together with other investors, is planning now to re-develop. At the same time, the company is currently developing residential vouchers following the Middle Housing System in the Q-Point Project at Al Liwan Residential Complex in the Emirate of Dubai. Al Saqabi has also reaffirmed that Dubai First Company is steadily moving forward, especially after its success in the transition from loss to profitability over the past year. The Company is currently working on the preparation of a well-based working plan through which the company can develop new projects and engage in fruitful investments. He pointed out that the company has great assets mounting to 67 million Kuwaiti Dinars , compared to liabilities adding up to 13.5 million Dinars, especially after the company succeeded in taking large allocations exceeding 40 million Dinars, the matter which has resulted in ridding the budget of any financial implications.

It should be noted that First Dubai Real Estate Development is a closed shareholding company which was established on April 30, 2003. It is also listed on the Kuwait Stock Exchange, where the company operates in real estate development and investment, and advisory services.