On behalf of my colleagues and myself, the Board of Directors of National Ranges Company, “Mayadeen”, takes great pride and pleasure in presenting you the company's annual report and the consolidated financial statement for the year 2007.
GCC economies, in 2007, witnessed a record growth, particularly with the increase of governments expenditure, in order to establish an attractive economic and investment infrastructure and environment, while the extraordinary financial results of most institutions contributed further to reinforce the investors' confidence in the GCC economies, and its ability to cope with the rapid developments regionally and internationally.
The unprecedented record global oil prices, no doubt, generated huge budget surpluses where GCC 2007 budgets reflected record surpluses providing the members the opportunity to accelerate and expand the expenditure on infrastructure projects. In addition to the GCC members' efforts to provide an attractive and safe environment for investments in the real estate market by issuing the right laws and legislations, collectively set the tone for the prosperity of the real estate market in the region.
Increase of Capital
As for Mayadeen financial performance, the company, in December 2006, successfully completed the increase of its capital to KD 100 million. During which Mayadeen reestablished it self to pursue ventures of dedicated efforts to fulfill its goals, where the real estate sector is considered the main feature and the priority choice for the company's future. In addition to the company's existent unique shooting activities as the company owns the most sophisticated Shooting Complex in the Middle East .
Striving to achieve the new vision and goal, Mayadeen initiated the execution of pioneer real estate development projects carefully scrutinized and selected in one of the largest and most prominent GCC real estate markets, namely, the United Arab Emirates and specifically in Abu Dhabi and Dubai . Such choice was a result of an in-depth analysis which resulted in identifying a major shortage of supply of residential and commercial real estate, complemented by the rapid increase in the population of the UAE confirming the continuous prosperity in this sector.
Mayadeen's exposure in the real estate market in the UAE is only the first step of implementing its strategic phases which would be followed by further expansion throughout the GCC and beyond to the entire Middle East markets seeking promising and feasible opportunities. All in the Board of Directors efforts to establish Mayadeen as one of the leading regional real estate companies.
2007 was distinct at all levels. National Ranges Company, “Mayadeen”, recorded excellent results and noticeable increase as the net profit reached KD 9,003,143 compared to KD 325,759 in 2006. While the earnings per share “EPS” for the year 2007 increased by 93% to 9 fils compared to 4.7 fils in 2006. The Company's assets recorded a total of KD 146, 916,534 with return on equity at 9% and return on assets of 6%.
I am immensely confident, on behalf of my colleagues and myself, the board of Directors, to assure you that 2007 results is only the beginning of further achievements that we strive to accomplish over the coming years.
In light of the 2007 financial results, I am pleased to inform you that the Board of Directors is recommending to the General Assembly to distribute cash dividend of 6% per share (6 fils/share) to the shareholders. We are assuring you that this recommendation proves that your company stands on solid and sound financial grounds and in particular being after the first year of the major capital increase. Hopping that you find our recommendation acceptable.
In conclusion, I would like to extend my profound appreciation for our esteemed shareholders for their valuable trust and continuous support which certainly has been a source of pride and motivation towards achieving the best results. I would also like to express my sincere gratitude to all the official bodies for their constant co operation and to all our employees for their devotion and contributions towards the achievement of Mayadeen's success.
Praying to our Almighty God to bestow upon our beloved country all means of stability, safety and security under the wise leadership of His Highness the Amir Sheikh Sabah Al Ahmed Al Jaber Al Sabah, His Highness the Crown Prince Sheikh Nawaf Al Ahmed Al Jaber Al Sabah and to guide them to lead our Nation towards continued success and prosperity.
Khalid Jassem Al Wazzan