Press Release

Statement the first nine months of the year 2011 the first nine months of the year 2012 Commenting on the results, Chief Executive Officer Eng. Nayef Al Awadi said, “Al Mazaya has managed to surmount a critical phase in the history of the region and the world since late 2008, and overcome a great many of difficulties encountered during that difficult stage to record a steady growth during the first nine months of 2012.” The Company relied on its performance and the new strategy recently initiated by Al Mazaya. The strategy is based on generating revenues from a number of highly lucrative projects set to enter the market during the current year, as well as getting returns from real estate developments, and selling previously completed real estate units. Management and Revenue Al Awadi added that under the volatile circumstances and the change of local and regional markets trends, Al Mazaya managed to keep pace with the rapid changes and fluctuations, by utilising its 100% completed projects and taking advantage of the rent returns to reap the rewards of the long boom. This helped them to benefit from the achievements of this period by efficiently acquiring strategic assets with constant rents and payoff which in turn allowed the company to achieve steady growth and gain lucrative revenue and profit for shareholders and investors alike. Commenting on the analysis of the company’s profits during the current year and the coming years, he said, “Actual and expected returns are different in nature between sales transactions to profit-generating projects in real estate, as rent revenue is less in nature, this type of revenue does however offer steadiness and ongoing growth that support the rights of stakeholders and reduce risk of unstable markets. Although the fairlay large income of sales transactions generate good returns, once completed they do not produce assets on which the company can depend in times of crisis like the markets have been experiencing. EXCHANGE- EXIT -LIABILITIES Nayef Al Awadi stressed that the current year constituted a combination of legal exits, exchanges and settlements of the company’s obligations as well as the delivery of projects in preparation for anew and promising future, pointing out that the stability of the company’s balance sheet and cash flow were two main goals for the company during 2012. On this issue, Al Awadhi said that the company has managed to exit from real estate portfolios such as the “Dubai land portfolio” consisting of 492 housing plots in the United Arab Emirates, which the company developed and sold. Al Mazaya recently exit from this portfolio creating liquidity worth AED 49 million. The company has also managed to exit from the Jumeirah Lakes Towers portfolio, which Al Mazaya had developed during the construction of Tower AA1, selling the towers’ units and exiting from the portfolio with cash estimated at 51 million dirham. With the exit deal, Al Mazaya has the right to acquire an office space with an area of 11,231 square feet. The company plans to sell the plot at a later stage, and finally exit from the Madart Fund Portfolio, which was founded in 2007 by one of Al Mazaya’s subsidiaries, aimed at investing in the real estate market in the United Arab Emirates. The leading real estate company also succeeded in achieving ownership of a large number of real estate assets in the UAE, through a solution and liquidation of this partnership, resulting in the reclassification of the assets and liabilities, leaving no direct impact on the returns statement. LEGAL EXITS Al Mazaya Holding has also been able to solve legal disputes pertaining to the previous contracting with the Emirati “Limitless” company when the latter sold 9 land plots in “Jebel Ali” Downtown for the amount of Dirham 34.7 million, from which Al Mazaya paid almost 19.6 million dinars of the total amount which The 19.6 million has been forfeited for the benefit of “Limitless”. The reason was attributed to Al Mazaya’s failure to pay the agreed upon amount on time. Judgment from the Dubai International Arbitration Company has issued its judgment according to which “Limitless” shall pay to Al Mazaya the sum of AED 5 million including an interest rate of 9% as of 2009 and until the full amount is paid, while Al Mazaya is committed to pay to “Limitless” the amount of AED 3.6 million with interest rate of 12%, based on this ruling. This will not result in any losses or material damage on the financial position of Al Mazaya due to the allocations that have been taken in advance by the company. The financial impact is limited to a profit Estimated at AED 2.8 million, which is equivalent to KD 210 thousand.