Al Mazaya Holding purchases its Shares to support Share Market Value

This step is aimed at boosting the market value of the Al Mazaya share, due to correctional movements in the financial markets. The decision to go ahead with the repurchase follows the introduction of a law where that allows companies to repurchase a maximum of 10% of their total shares.

Eng. Khalid Esbaitah, Managing Director and CEO of Al Mazaya Holding, said:

"Al Mazaya has succeeded in achieving high revenues with its investments over the past several years, as indicated beyond all doubt by the financial results for the first half of 2008, and will be shown once again upon release of the financial results for the first nine months of the year, which will be announced in the near future. We are confident that the repurchase of these shares is a viable option and a strategic move that will support the company's future growth, especially since we have every reason to expect that revenues will continue to soar. We know that exchange prices for Al Mazaya shares don't reflect their true value, particularly since the company's profits are active revenues resulting from profitable investments and the development of major projects. These projects have helped grow substantial profits in the past and continue to do so today because of the fact that they are active profits."

Esbaitah explained that the company's projects and investments have been rolled out per a carefully devised five year plan and that these investments are now beginning to bear fruit as the current projects are reaching advanced stages of development. The DIFC-based Sky Gardens residential project, for example, has contributed significantly to the firm's success, having been sold to Amlak at a profit of AED 999 million, Dhs652m of which went to Al Mazaya. The company intends to include Dhs361m of this amount in the current year's budget, while the remaining Dhs291m will be allocated to next year's budget.

He pointed out that the company's profits for this year will include those from other projects. Among these is Queue Point at Al Liwan, a Dhs2.1bn project aimed at the middle income market. The project is already 90% sold and is expected to yield a return of Dhs694m. Construction of the Queue Point project is already underway and scheduled for handover by the end of 2009. The profits for this project will therefore be included in the firm's 2009 financial results. Other projects include the Business Avenue Towers and the Icon Towers residential project in the Jumeirah Development, which have already sold out, with profits to be included in the 2008 and 2009 financial results. Construction of the Icon Towers is complete, while substantial progress has been made on the Business Avenue Towers.

Esbaitah went on to say that Al Mazaya has further expanded its operations and increased its real estate assets in Dubai with its acquisition of the flagship Al Mazaya tower, an iconic, state of the art, 60 storey office tower on Sheikh Zayed Road, as well as a 28 storey building in Downtown Jebel Ali, which is set to attract financial institutions and prominent companies. Both projects are to be utilized for long term investment in the rental market, with an expected annual ROI of over 12%.

Al Mazaya has also sought to increase its Kuwaiti assets, retaining one luxurious tower under development in Kuwait Business Town, and its two landmark projects in Kuwait's Shuwaikh Industrial Area, namely the Seven Zones and Mazaya Health Clinic projects.

According to Esbaitah, Al Mazaya's strategic plan is based upon sophisticated calculations that guarantee continuous, balanced growth of shareholders' profits with minimal risk to the company. The company has developed a significant and diverse portfolio of mega projects that will ensure stable returns for a minimum of five years.