Kuwait: National Real Estate Company (NREC) held today its shareholders’ Annual Ordinary General Assembly Meeting (AGM) for the financial year ended 31 December 2022, with a quorum of 70.35%. The meeting took place electronically.

The Company’s shareholders approved all items on the AGM agenda, including the Board’s recommendation not to distribute any dividends for the financial year ended 31 December 2022.

The Company reported a net profit attributable to the owners of the Parent Company of KD 17.9 million and an EPS of 10.1 fils in 2022, compared to a net profit attributable to the owners of the Parent Company of KD 199.6 million and an EPS of 112.3 fils in 2021.

The Company’s operating revenue came in at KD 26.0 million for the year ended 31 December 2022, as compared to KD 32.5 million in 2021.

NREC Vice Chairman and Chief Executive Officer, Faisal Jamil Sultan Al-Essa, said: “The reason for the decline in profits in 2022 as compared to 2021 is the impact of an exceptional gain that arose from our associate company Agility's sale of the Global Integrated Logistics unit to DSV, in exchange for shares in DSV, during the financial year ended December 31, 2021.”

Landmark Projects

Reem Mall – Abu Dhabi

Sultan added: “I am pleased to announce that a major number of units are currently operating in Reem Mall.”

A $1.3 billion state-of-the-art project, situated on Reem Island, right in the heart of new Abu Dhabi, Reem Mall covers nearly 2.8 million square feet of leasable area and is destined to house around 450 of the finest international and local brands, as well as featuring around 85 restaurants and cafes and a range of family-focused entertainment offerings including Vox Cinemas, Carrefour Hypermarket, and the iconic Snow Abu Dhabi.

Reem Mall, the new hub for shopping, dining, and entertainment, also has one of the biggest snow parks in the world, and the largest car park in Abu Dhabi with 6,800 spaces.

Snow Park Updates

“Reem Mall’s snow park is expected to open during June 2023”, stated Sultan.

Covering a vast area of nearly 1,000 square meters, this indoor park presents an expansive collection of 12 rides and 17 attractions, ensuring an enchanting experience for its visitors. Maintaining a frosty temperature of minus 2ºC throughout, the park will immerse guests in a captivating winter ambiance.

A favorite destination in vibrant and thriving Abu Dhabi

Reem Mall is destined to be a favourite shopping mall in Abu Dhabi, which is positioning itself to be a family travel destination, and which is establishing itself as a prominent hub for real estate and retail activities.

“Abu Dhabi is experiencing a significant boom in both the real estate and retail sectors, showcasing a vibrant and thriving market, a substantial growth with numerous development projects and a flourishing retail sector”, stated Sultan.

“This will bring a multitude of benefits to Reem Mall and will support the island’s overall performance.”

Reem Island being under the jurisdiction of the Abu Dhabi Global Market (ADGM) as a free zone

Sultan said: “Reem Island has recently joined the Abu Dhabi Global Market (ADGM) as a free zone, bringing a host of advantages to Reem Mall and its operations, the most important of which is that it offers a business-friendly environment with simplified regulations and procedures, making it easier for Reem Mall’s overall operations.”

Grand Heights - Egypt

The development and delivery of residential units in Grand Heights continues to progress

The Company's residential project in Egypt, Grand Heights, has made significant progress in developing and delivering residential units. Grand Heights forms part of a more extensive parcel of land owned by NREC's subsidiary KUWADICO, and is presently being developed in different sections by three sub-developers. Covering an area of 3.8 million square meters, the project addresses the surging housing needs of the growing population in Cairo and its suburbs.

Sultan said: “The percentage of units sold across the whole project as of the end of 2022 was 74%.”

“During the year 2022, 157 new units were delivered to customers, bringing the total number of delivered units to 700”, added Sultan.

“In the year 2022, the Grand Heights' big family saw a noteworthy surge in its membership, with approximately 500 families joining the community.”

Short-term focus

Sultan added: “We remain focused on our goal of divesting certain assets, proceeds of which will be used towards the reduction of a major part of the Company’s debt obligations.”

“I would like to take the opportunity to express my gratitude to our shareholders for their support of the Company's strategy and to thank all our stakeholders for their continued trust and confidence in our Management team.”

Established in 1973 and listed in Boursa Kuwait, National Real Estate Company (NREC) is a real estate investment, development and property manager based in the Middle East and North Africa. The Company’s portfolio comprises a mix of retail, commercial and residential properties in the region. ENDS


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Mageda Abbas