Al Mazaya profits KD13,046,148

The financial data was released following a meeting of the board of directors, chaired by Al Mazaya Chairman, Rashid Al Nafisi, in the presence of Eng. Khalid Esbaitah, Vice Chairman and CEO of Al Mazaya, and board members Omar Al Quoka, Fahad Al Ibrahim and Nasser Al Attar.

The earnings per share of 31.86 fils, compared to 67.36 fils in 2007, was recorded. Company assets reached KD359,520,059 compared to KD250,654,566 in 2007, and shareholders' equity reached KD155,478,678 against KD99,324,919 in 2007.

Al Mazaya had to review the cash dividend recommended by the board at the end of the third quarter of 2008, when profits of over KD55m had already been achieved, before the economic changes that befell the region could hit profit rates.

The board of directors discussed the proposed plan for 2009, which included a host of highly rewarding projects currently under development.

"The recent economical complications have led us to come up with a successful plan to protect our company now, and in the future. We have decided to take up precautionary and preventative decisions that may sound harsh, but which will ultimately help keep the company stable, and which will sustain the assets and cash flow necessary to complete ongoing and future projects,"

said Al Nafisi during the board's meeting.

Added Al Nafisi: "The first 9 months of 2008 were simply outstanding for Al Mazaya regarding performance, profits and results, while the last quarter witnessed a major setback, which led us to insert maximum allocations in 2008's end results, including assets, plot prices and even debtors who couldn't pay their dues, in order to protect Al Mazaya's profits for 2009, and to ensure a clean, debt-free budget."

Al Nafisi went on to say that Al Mazaya is going ahead with the development of its ongoing projects, and plans to deliver them to their owners within the scheduled timeline.

Furthermore, Al Mazaya is currently preparing to launch two of its profitable projects - 7 Zones and Clover Clinic. Development progress at 7 Zones is 100% complete and is scheduled to launch in August, while progress at Clover Clinic has exceeded 40%.

Al Nafisi noted that Al Mazaya is currently adopting new preventative policies, which requires careful selection and a slowdown in expansion plans. Al Nafisi said that all of Al Mazaya's properties are carefully selected on prime locations, but that the current decline in prices in the property sector has made the company take precautionary measures that will render the company and its projects safe from current and future market fluctuations."

He further noted that Al Mazaya will not be affected by debtors not paying outstanding amounts, as measures were put in place initially that assured strong documentation and contractual obligations to protect Al Mazaya from market variability. "This policy, along with the careful decisions, solid strategies, and valuable assets of the company, are considered strong points for Al Mazaya."