Al Awadhi: Al Mazaya sees promising opportunities in the Omani real estate market in the areas of health, education and tourism

Kuwait: 24 April 2012: Al Mazaya Holding and Oman Housing Company has concluded the mid-March settlement agreement in which Al Mazaya acquired Plot number 186 in the Omani "Al Mawaleh" neighborhood of Muscat. The deal was signed by Rashid Yaqoub Al-Nafisi, Chairman of Al Mazaya Holding, and Sheikh Qais Bim Mistehil Al Meshani, chairman of Oman Housing Company.

The 23194 square metre land plot is allocated for commercial and residential use.

Both companies signed a joint venture agreement in August 2007 in which Al Mazaya Holding entered into a partnership with the Omani company, resulting in a real estate portfolio through which Al Mazaya Holding accrued dividends of 1.3 million Omani Riyals up until June 29, 2008

Under the recent settlement agreement, the two parties agreed that Al Mazaya holds 28% (6378 s-m) of the share of the Omani company in the "Al Mawaleh" land plot to the value of 931 thousand Riyals. Al Mazaya thus becomes 100% owner of the property providing that the value of the plot is to be settled from the portfolio dividend, due Al Mazaya.

Under the agreement, the remaining 370,900 OR is due for the benefit of Al Mazaya Holding.

Hence, Al Mazaya's share becomes 14.9% of the total value of the portfolio valued at 1.96 million OR.

2012 Plan

Commenting on this agreement, Eng. Nayef Mohammed Al Awadi, CEO of Al Mazaya Holding, said: "This move constitutes part of the Board of Directors' 2012 plan. It aims to resolve the outstanding real estate disputes, reach amicable solutions between Al Mazaya and other parties and reinvest the assets in a way that boosts access to risk-free new real estate projects in a meaningful way, with reasonable financial returns to be positively reflected on the financial position of the company."

"Al Mazaya's land plot at "Al Mawaleh" is a real prospect for a new real estate project, and a promising real estate investment due to its unmatched beauty and vital location. There are several ideas under study to decide which project can be implemented on this plot."

Oman Promising Real Estate Market

Driven by growing local and regional demand particularly from Saudis and Emiratis, Al Awadi pointed out that Al Mazaya sees promising opportunities in the Omani real estate market in the areas of health, education and tourism, as the country enjoys wonderful natural land and seascapes and a fine climate.

The mature nature of legislation and law in Oman constituted an additional incentive for Al Mazaya to acquire the "Al Mawaleh" plot and further increase the company's investments in the Sultanate. The regulation of real estate activities and the recently approved brokerage law reflect Oman's true aspiration to develop the real estate sector and attract further investments during the next few years, Al Mazaya's CEO concluded.

About Al Mazaya:
Al Mazaya Real Estate Development Co., listed on the Kuwait Stock Exchange and Dubai Financial Market, created a distinctive place for itself in the economic sector through the implementation of several major and vital projects across the region. The company provides comprehensive real estate services and products across various fields, including housing projects that include high class and deluxe villas, vertical flats and accommodation buildings, office buildings and the purchase and apportionment of large spaces in selected areas. The company's record includes a number of outstanding projects. In Kuwait this consists of, (but not exclusively): Al Maha Villas, 7 Zones, Al Roya, Clover Centre, and Kuwait Business Town. In Dubai their projects includes (but not exclusively): The Villa, Dubai Healthcare City, The Icon (1&2), Sky Gardens, Al Mazaya Business Avenue and Queue Point at Al Liwan, in addition to several other projects in Lebanon and Jordan. Al Mazaya Holding has conducted several feasibility studies for strategic investment in number of property markets and has investments in others such as KSA, Bahrain, Oman and Qatar, with the aim of achieving high returns.

For more information, please contact:
Serine Srouji
SAHARA Communications
Tel: +971 4 3298996
Fax: +971 4 3298995
Email: serin@saharagcc.com
www.saharagcc.com

© Press Release 2012