Al Mazaya recommends distribution of 68 fils per share as revenues for 2008 financial year

Earlier, the company had announced returns of Dhs721m during the first nine months of the year, which resulted in a payout of 130 fils per share.

Al Mazaya Chairman, Rashid Al Nafisi, said that these returns show the company's financial and operational stability, despite the economic fluctuations that have befallen the region and the world due to the global financial crisis.

"Al Mazaya was able to maintain a steady growth of returns, and sustain shareholders rights, keeping their interests in line with the company's current and future strategic plans. The company worked hard to execute its projects and plans according to financial plans, with no loans or financial obligations. This has allowed the company to maintain its assets and cash flow, rendering it safe from the crisis that has affected other companies in the region,"

said Al Nafisi.

Al Nafisi noted that at a meeting of Board Members discussed the company's current financial situation and assessed its current assets and its commitment to completing its projects. They determined that Al Mazaya's financial situation is solid, and has not been significantly affected by the fluctuation of property prices in the region. Al Nafisi went on to say that all of the company's assets are allocated to projects that are under development, which have been completely sold out. Work on these projects is funded by the yields attained through sales, in addition to other investments.

Board Members also discussed the cash flow table of the company, and concluded that the company is able to fulfill all of its financial obligations. This led Board Members to recommend the distribution of revenues to Al Mazaya shareholders.

The Board of Directors reviewed the book value of Al Mazaya shares, which was at 533 fils per share as of September 2008, compared to the current market value of 425 fils per share. Currently, stocks are being exchanged below their book value, which is considered to be a golden opportunity and a source of attraction for investors. As such, Al Mazaya has bought treasury stocks of 9.2%. Al Mazaya believes that this investment is sound and profitable in the short, medium and long term.

Al Mazaya's profits for the coming financial years of 2009 and 2010 were also discussed during the meeting. Al Nafisi said that Al Mazaya's projected profits for these two years are based on in-depth studies and on the development of current projects. Part of these profits has already been counted in 2008, while the remaining profit is to be transferred to the 2009 and 2010 budgets, in line with the delivery schedule of the company's current projects. Al Nafisi added that revenues from profitable projects, which are fundamental to Al Mazaya, will be added to the company's profits.

According to Al Nafisi, Al Mazaya is making strategic plans to avoid being impacted by any economic fluctuations that could arise in the region. The company is currently employing all of its human resources to conduct extensive studies concerning the financial and property markets.