Peace, mercy and blessings of God.
We welcome you, our valued shareholders, to this renewed meeting each year, to review together the achievements on the ground in the Company’s operations and the financial results that were recorded during the past year 2021, which was undoubtedly a year full of challenges in light of the circumstances of the repercussions of the outbreak of the novel corona epidemic.
At the beginning, on my own behalf, I would like to extend my heartfelt gratitude to the members of the Board of Directors, executives, administrators, professionals and all employees of the Company for their sincere efforts and absolute dedication to overcome this period and its challenges.
During the year 2021, the negative impact of the repercussions of the corona epidemic continued with the continued decline and contraction of global markets and economies due to the repercussions of the corona crisis. The economic effects of the corona pandemic extended to the Middle East and the Arab Gulf. This was reflected in the real estate sector in particular, but the Company, thanks to God Almighty, sought to reduce these negative effects and was able with the efforts of its board of directors and team to preserve its strong assets and operational returns.
My Brothers and Sisters:
First Dubai Real Estate Development Company has been keen on continuing its interaction with the crisis and preserving its income from real estate operations, in particular preserving the base of its real estate tenants to ensure the stability of the continuous liquidity resulting from rental income as well as reducing its operating expenses and other expenses in order to enhance its cash flow to meetits obligations towards its creditors and stabilizing the financial position of the Company.
As the year 2021 was full of challenges at the regional and global scales, this certainly affected the financial results of the economic sectors and the companies operating in them. First Dubai Real Estate Development Company achieved operating income mainly from leasing operations for its real estate portfolio with a value of 1.1 million Kuwaiti Dinars and a net profit for shareholders of the Company whichamounted to 817 thousand Kuwaiti Dinars, with earnings per share of 0.82 fils by the end of 2021.
Today we are presenting to you the annual report of your Company for the fiscal year ending on December 31, 2021, which contains an accurate detail of the financial results achieved by the Company during the past fiscal year, which, thanks to God, ended in achieving a significant growth in the Company’s net profits despite all the negative circumstances that accompanied the pandemic, the consequences of which extended during 2021, as witnessed by the whole world.
During this year, the Company’s authorized, issued and paid up capital was reduced from KD 100,000,000 (one hundred million Kuwaiti Dinar) to KD 73,542,930 (seventy threemillion, five hundred forty two thousand, nine hundred and thirty Kuwaiti Dinar) by the amount of KD 26,457,070 by cancelling 264,570,700 shares of the Company’s shares with a face value of 100 fils per share as a result of the amortization of theaccumulated losses in order to improve the efficiency of the shareholders’ equities.
Dubai First Real Estate Development Company currently owns strong assets which amounted to the value of approximately 87 Million Kuwaiti Dinar. The Company’s assets are distributed in Kuwait, the United Arab Emirates and the Kingdom of Saudi Arabia. Meanwhile, the total equities amounted to almost 79 million Kuwaiti Dinar by the end of 2021, whereby the Company’s liabilities dropped by almost 3% to amount to approximately 7.7 million Kuwaiti Dinar by the end of 2020, after the Company’s success sin fulfilling all its obligations towards its creditors during the year, which contributed in strengthening its financial position during the year and reducing the negative impact of the repercussions of the corona pandemic during the year very significantly.
In this respect, and according to the corporate governance rules, the board of directors of Dubai First Company declares and undertakes the soundness, integrity and credibility of thefinancial statements and all the reports submitted to the shareholders, and that they include all the financial aspects of the Company including the operational details and results.
As you are aware, Dubai First Real Estate Development Company looks forward to upgrading its operations, fostering its real estate portfolio and maintaining the stability of its financial position during the repercussions of such pandemic, which still cast its shadows on the world with its different waves. We also workto advance with the Company forward to overcome this crisis in order to address the next new challenges to the growth, by being remote as much as possible from the risk factors after the elimination of such pandemic, God willing, for the benefit of all theCompany shareholders.
Finally, I would like to express my sincere gratitude to everyone who participated or contributed in achieving this success despite these difficult conditions and significant challenges. We appeal to God Almighty to lift the burden of this epidemic from all of us and facilitate the paths of goodness for all of us, and pledge to you to enhance the performance of First Dubai Real Estate Development Company to reach the highest levels at the local and regional scales in the coming years.
Peace, mercy and blessings of God.
Chairman of the Board of Directors