Press Release

For immediate release Kuwait, 22 March 2010
Al Mazaya Holding has announced its results for the year ended 31 December 2009. Profits reached KD 30.8 million, including operational profits of KD 12.2 million and other income of KD 18.6 million, while provisions totaled KD 16.8 million. Net profit was KD 5.2 million, after taking into account cutbacks in spending, and earnings per share amounting to 11.46 fils. Due to the ongoing economic challenges in the region, and in the Dubai markets – where Al Mazaya has numerous investments and projects – in particular, the firm was forced to carry over allotments from the year ended 31 December 2009 to support its performance in 2010. The announcement of the results followed a Board of Directors meeting held at the company’s headquarters yesterday afternoon (22 March 2010, 1:00 pm), led by Al Mazaya Chairman, Rashid Yaqoob Al Nafisi. “Al Mazaya was able to reap reasonable profits due in large part to its to precautionary, well-thought out plans for 2009, which bore in mind the general economic climate and the recent developments in international markets,” said Al Nafisi, commenting on the results. “Al Mazaya’s total assets at the end of 2009 amounted to KD 363.7 million, while shareholders’ equity amounted to KD 166.2 million and bank debts reached KD 58.5 million, which represents 16% of total company assets and 35% of total shareholders’ equity,” he added. Al Nafisi went on to say that his company is doing its best to maintain profits for 2009, reaping operational revenues of KD 61.4 million and other income of KD 18.6 million, to reach total revenues of KD 80 million. He added that Al Mazaya’s current strategies revolve around completing and delivering projects currently under development. Completion rates for the company’s Kuwait projects are at 95%, with some projects having already been completed, including the 7 Zones in Al Shuwaikh Industrial Area, which is set for launch during the next few weeks. Al Mazaya has successfully completed the re-structuring of its assets and paying off all liabilities through its sales operations. Construction work on its Dubai projects is also progressing well, with completion ranging from 40% to 80%, as the company works on collecting the money from sales operations, in accordance with completion rates. In addition, Al Mazaya has successfully reacquired all previously sold residential and commercial units where owners were unable to pay their due amounts because of the financial crisis. These properties will contribute significantly to Al Mazaya’s assets and financial situation, and the company plans to add these assets to its profitable projects or projects available for sale. When asked about Al Mazaya’s plan to commence operation at its profitable projects in Kuwait, KSA and Dubai, which will provide Al Mazaya with financial support, starting 2010, Al Nafisi said that the company has completed five profitable projects in Kuwait, including Clover Clinic, Kuwait Business Town and 7 Zones, while in the UAE it is putting the final touches on the Business Avenue project, The Villa residential project, and its share of the Sky Gardens residential tower located at Dubai International Financial Centre. The company recently received permission from the Dubai Land Department to develop the Sky Gardens project as hotel apartments, a move from which Al Mazaya expects to high returns. According to Al Nafisi, Al Mazaya will also soon be launching Al Ma’thar Towers for lease in Riyadh, KSA. He said that Al Mazaya has set up an ambitious plan for 2010, which starts with inclusion of the KD 1.77 million profits already achieved from the sale of its share of the Al Ehsaa property in KSA, valued at KD 8.5 million, and which Al Mazaya will include it into Q1 2010 profits. Speaking of Al Mazaya’s future projects, Al Nafisi said that despite the cautious strategy the company is adopting for the present, Al Mazaya is still focused on opportunities contributing to its goals and strategies.