Honorary Chairman Message

It gives me great pleasure to extend to you my heartfelt congratulations, praying to the Almighty Allah to accept from us and from you our good deeds, and to bestow upon us all continued prosperity, blessings, and grace.

We also ask Allah to safeguard our beloved nation and the Gulf countries, to uphold the blessing of security and stability, and to lift from us all hardship and affliction through His mercy and kindness. We further reiterate our deep appreciation for the tremendous efforts exerted by the State’s institutions and various authorities, under the leadership of His Highness the Amir—may Allah protect and preserve him—in maintaining the nation’s security and stability and safeguarding the well‑being of citizens and residents alike. We pray to Almighty Allah to grant the martyrs of our nation his vast mercy and to grant them the highest ranks in Paradise.

It is our pleasure to present to you the annual report of your company for the fiscal year ended 31 December 2025. Thanks to the grace of Allah, Mazaya achieved total operating revenues of approximately KD 11.88 million by the end of 2025, driven by the company’s sales and leasing activities. Revenues from leasing operations reached KD 11.27 million, resulting in leasing profits amounting to KD 9.02 million by year‑end. In addition, the company achieved operating profits of KD 5.92 million.

With respect to the financial position, Mazaya maintains a solid asset base valued at KD 126.95 million as of the end of 2025, the majority of which is composed of real estate and operating assets. This strong foundation supports the company’s future plans to enhance and strengthen its financial position in response to current challenges. Total liabilities amounted to KD 79.85 million, while shareholders’ equity stood at KD 47.10 million.

In accordance with corporate governance principles, the Board of Directors of Mazaya Holding affirms and pledges the accuracy, integrity, and reliability of the financial statements and all reports presented to shareholders, confirming that they fully reflect the company’s financial position and operational results.

I would like to present some of the Company’s achievements and the progress we made over the past year, as well as the steps we have taken to materialize the business plan which we laid down.

Within the framework of credit facilities management, the company continued to improve its financing structure by reducing its bank debt during 2025, bringing the total down to KD 42.2 million by year‑end. This effort enhances the company’s financial structure and strengthens its ability to consider new investments and projects based on a balanced financing model—supporting Mazaya’s strategic vision and future developmental plans. These repayments and the restructuring of existing facilities also resulted in significant savings in financing costs, which decreased to KD 2.9 million compared to KD 3.8 million in 2024—a reduction of 23%. This represents meaningful savings that strengthen the company’s cash flows and support its strategy of restructuring its financial obligations.

The company also reinforced its financial position by achieving cash liquidity of KD 3.48 million by the end of 2025, reflecting its ability to manage cash resources efficiently and flexibly in a dynamic operating environment.

Regarding operational performance and expense control, the company achieved notable efficiency in managing expenditures. Administrative, general, selling, and marketing expenses amounted to KD 2.59 million, compared to KD 2.71 million in 2024.

In terms of profitability, Mazaya recorded net profits of KD 1.73 million—exceeding the net profit of the previous year by approximately KD 516 thousand, an increase of more than 40%. The company also adopted a stable dividend distribution policy for 2025, distributing bonus shares from treasury shares without increasing the company’s capital, in line with a well‑structured plan for treasury share management to enhance shareholder equity. The company distributed a 2.5% treasury share dividend for the second quarter of 2025 and recommended an additional 2.5% for the fourth quarter, bringing the total proposed distribution to 5% for the year, pending approval at the General Assembly.

At the end of my statement, on my own behalf and on behalf of the Board of Directors of Al Mazaya Holding Company, I would like to extend our sincere gratitude and appreciation to our esteemed shareholders for their valued trust and continuous support, which remain the driving force behind our journey of growth and achievement. I also express my heartfelt thanks and appreciation to the Mazaya team for their ongoing dedication and hard work.

With confidence, we look forward to a new phase filled with opportunities and challenges—one in which we aim to achieve further success and elevate the company to even greater horizons, with Allah willing. May Allah grant us success.

Peace, prayers and blessings of Allah upon you.