Esteemed Mabanee shareholders,

On behalf of Members of the Board of Directors, I would like to express my sincere appreciation for the trust and support you have given us, which has always been our drive to exert our utmost to achieve the company’s goals and strategies.

Thanks to the company’s clear vision and its short and long-term strategies, I assure you that Mabanee has succeeded in overcoming many of the challenges posed by the global financial crisis and its repercussions on the local and regional economy throughout 2009. This was achieved through the adoption of a moderate expansion policy, and the continued execution of Phase III of "The Avenues".

For financial year ending December 2009, we achieved a 30% increase in leasing revenue. Furthermore, despite the extraordinary adverse conditions in the economy, the company succeeded in making net revenue of KD 15.3 million, compared to KD 6.2 million in 2008, at an increase of 146%, amounting to 33.36 fils per share against 13.57 fils per share in 2008.

Based on these positive results and the continued confidence in the company’s strategy, the Board of Directors decided to recommend distribution of 10% cash dividends and 10% bonus shares of the paid up capital as of December 31, 2009.

Launching Phase III of The Avenues

The Phase III launch ceremony, held in October 2009, was attended by and grabbed the attention of many prominent political and economic figures, who on their part underscored the importance of "The Avenues" as a mega development project through which the private sector is contributing to development, and realizing the vision of His Highness the Amir in transforming Kuwait into a financial and commercial center.

Phase III of "The Avenues" is the penultimate and is being executed at an estimated construction cost of up to KD 150 million (more than US$ 500 million). The project covers over 100,000 square meters, and is expected to take around two and a half years to complete.

Phase III … A New Concept in Shopping

Phase III includes six different areas, of which the first area is the continuation of Phase I & II which features retail stores, restaurants and a gold market. The second area will be home to a bazaar, an old Kuwaiti market with a traditional air, and the Suko District which will allow youth to express their ideas in its theaters and cafes.

The third area will hold the Grand Avenue, the backbone of the project that connects the different areas together. This will feature a wide and air conditioned street that stretches 24 meters across and 650 meters long, as well as a luxury mall that will group high-end international designer brands.

The marketing of Phase III will begin soon, both in the Kuwait and international markets, in order to attract a number of international brand names that will bring added value to The Avenues, especially now that Phase II is more than 90% operational.

Phase IV, the final phase of "The Avenues", the company is in process of working towards obtaining the required licensing from government authorities.

Our Human Resources

Mabanee continues to attract and develop national human resources through its recruitment policy. The company also adopts a policy of reliance on nationals in the management of The Avenues’ facilities. They have proven their efficiency in playing this role in an excellent way.

To conclude, on behalf of the Board of Directors, I would like to reiterate my appreciation to the shareholders for placing their confidence in us. I also like to thank Mabanee’s General Manager and all the employees of Mabanee for their continued contributions in achieving the goals and strategies of the company.

 

Mohammed Abdulaziz Al-Shaya
Chairman & Managing Director