Dubai First Real Estate Development Company
Board of Directors Report
Dear Shareholders:
May the peace, blessings, and mercy of Allah be upon you..
We welcome you, our valued shareholders, to this renewed meeting every year, to review together what has been achieved in the Company’s operations, leading to the financial results recorded during the past year 2022. Undoubtedly, it was a year full of challenges in light of the current economic conditions.
First of all, on my own behalf, I would like to extend my sincere appreciation to the members of the Board of Directors, executives, administrators, professionals and all employees of the Company for their sincere efforts and absolute dedication in order to overcome that period and its challenges.
During 2022, the Company encountered significant challenges and difficulties resulting from the changes which emerged in the real estate markets in which it operates, particularly the UAE market, in addition to the significant changes in the interest rates which increased significantly several times during the past year, along with its consequences on the capital and real estate markets, through the increased cost of mortgages and low liquidity, which in turn affected negatively the property valuations in various markets.
My Brothers and Sisters:
First Dubai Real Estate Development Company was keen to continue maintaining its incomes resulting from the real estate operations, particularly preserving the tenants base of its properties to ensure the stability of continuous liquidity resulting from rental revenues to promote its cash liquidity and meet its obligations towards its creditors and to maintain stable financial position.
Dear Shareholders,
As the year 2022 was full of challenges both regionally and internationally, this has certainly affected the financial results of the economic sectors and the companies in which they operate. The aforesaid factors have negatively affected the Company’s results during the year through the drop in the value of its properties in the aforesaid markets, despite the significant increase in the Company’s operational revenues. First Dubai Real Estate Development Company realized operational revenues, which resulted mainly from the rental operations of its real estate portfolio that amounted to KD 2.25 Million, compared to KD 1.10 Million at the end of 2022. However, the drop in the real estate properties valuations incurred by the Company in the aforesaid markets resulted in a net loss by KD 4.84 Million by the end of 2022, which includes the unrealized losses resulting from the real estate properties valuation which amounted to KD 6.24 Million, which indicates the growth in the Company’s performance on the operational and realized profits levels shall those unrealized losses being disregarded.
Here we are today, presenting to you the annual report of your Company for the fiscal year ended on 31 December 2022, which comprises detailed financial results of the Company during the past fiscal year. .
Dear Shareholders:
First Dubai Real Estate Development Company currently owns total assets amounted to approximately KD 91.65 Million. The Company assets are distributed among Kuwait, United Arab Emirates, and Kingdom of Saudi Arabia, compared to KD 86.90 Million in 2021. Meanwhile, the total shareholders’ equity amounted to approximately KD 74.57 Million by the end of 2022..
Furthermore, First Dubai Group had successfully concluded an agreement with the main developer of the Waterfront project in Dubai (a project owned by its subsidiary), to exchange the land plots owned by that subsidiary in Dubai with better land plots as well as a credit note for acquisition rights of additional land plots in other districts of Dubai, as those plots are more distinct in terms of their location and ease of utilization or development as deemed fit to the Company. This will have a positive on the Company through the diversification of the sources of benefitting from such properties in order to enhance the Company’s financial position.
In this respect, and according to the corporate governance rules, the board of directors of First Dubai Company declares and undertakes the accuracy, integrity and credibility of the financial statements and all the reports submitted to the shareholders, and that they include all the Company’s financial aspects in terms of the operational details and results.
It is noted that First Dubai Real Estate Development Company aspires to advancing its operations, strengthening its real estate portfolio, and maintaining the stability of its financial position. We are also working to move the Company forward and face the new challenges to grow the Company and its activities as much as possible for the benefit of all the Company's shareholders.
Finally, I would like to express my sincere gratitude to everyone who participated or contributed in making this success despite the significant challenges. We pray to the Almighty Allah to facilitate the paths of goodness for all of us, and promise to promote the Company’s performance to achieve higher standards both locally and regionally during the forthcoming years.
May the peace, blessings, and mercy of Allah be upon you.
Louai Samy Al Ibrahim
Chairman
