Consolidated Gross Operating Revenue of JD 78.2 Million

Consolidated Operating Profit of JD 21.5 Million

Consolidated Net Profit / (Loss) of JD (0.9) Million

Amman, Jordan (April 2012)

Zara Investment Holding Company (Zara) held its 18th General Assembly meeting on Wednesday April 25, 2012, at Hotel Intercontinental Jordan in Amman. The meeting was headed by the Chairman of the Board of Directors Mr. Sabih Masri. 

Mr. Masri opened the meeting by thanking the shareholders for attending and by welcoming Mr. Muath Rababa'a, representative of the Companies Controller and Mr. Bishr Bakr, Managing Partner of the company's external auditors Ernst & Young Jordan, and the attending press and media representatives.

Mr. Masri presented the consolidated financial results for the year 2011 of Zara and its subsidiaries. The chairman highlighted that the Company's consolidated gross operating revenue for 2011 reached JD 78.2 Million (approximately US $ 110 million), which represents a decline of 13% over the year 2010; consolidated operating profits reached JD 21.5 million, which represents a decline of 30% over 2010; and consolidated net loss reached JD 0.9 million.. 

Mr Masri pointed out that in 2011 and following years of continued growth in operating profits and revenues, Zara experienced one of the most tenuous years in its history.  The chairman also indicated that the challenges faced by Zara were due to various extraordinary factors of which the political turmoil in the whole Middle East region reigned supreme.

The meeting included a question and answer session by the shareholders.  A general discussion took place on the investments of the Company all over Jordan, to which the chairman explained that Zara is continuously seeking to maintain and enhance its leading presence and role in the Jordanian hospitality sector.  He also stated that the company is open to and welcomes opportunities for all investors, foreign and local,  interested in investing in Zara.

The chairman emphasized the significant contribution of Zara to the economy of Jordan in terms of revenue and employment.  Zara employs approximately 6% of the total direct employment in the tourism sector in Jordan in addition to its leading role in developing the local communities in which it operates.

Due to the expiry of the term of the current board of directors, the General Assembly elected members of the board for the new term extending from 2012 - 2016.

The ordinary meeting was concluded with the approval of the General Assembly of the Company's consolidated financial statements, as well as with the appointment of Ernst & Young as the Company's auditors for the year ending 31/12/2012. 

Zara also held an extraordinary General Assembly meeting in order to present the recommendation of the board of directors to raise the capital of Zara by JD 25 million/shares to become JD 150 million/shares.  The capital increase as presented was unanimously approved by the General Assembly.

-Ends-

About Zara Investment (Holding) Company:
Zara Investment Holding is a public Shareholding Company. Inspired by the growth potential of Jordan's tourism industry, Zara was established on May 10, 1994 by a group of independent investors, banks and investment companies. Zara's subscribed and paid in share capital as of December 31, 2008 consists of 125,000,000 shares, each having a par value of JD1.

The principal activity of the Company as a holding company is to manage its subsidiaries which operate in the tourism sector and which have built hotels in various parts of Jordan.

The hotel portfolio of Zara consists of seven 5-star hotels out of the 28 five-star hotels available in Jordan.

Other non-core activities of the company include owning and managing companies which serve the hospitality industry.

Today Zara Investment is the largest hospitality company in Jordan. It controls approximately 30% of the Hashemite Kingdom's total room inventory of 5-star hotels. Zara Investment is the largest employer in the 5-star hotel industry in Jordan. It employs approximately 30% of the total employees in the 5-star hotel industry in Jordan.

For more information, contact:
TRACCS Jordan
Maha Al-Rawashdeh
Tel: (+962) 6 5660542
Fax: (+962) 6 5660541
E-mail: jordan@traccs.net

© Press Release 2012