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88 Pages·2017·5.04 MB·English

ANNUAL REPORT
2017

SALHIA REAL ESTATE COMPANY K.S.C.P. AND SUBSIDIARIES
2017
ANNUAL REPORT
H. H. SHAIKH
Sabah Al-Ahmad Al-Jaber Al-Sabah
The Amir of the State of Kuwait
H. H. SHAIKH
Nawaf Al-Ahmad Al-Jaber Al-Sabah
Crown Prince of the State of Kuwait
H. H. SHAIKH
Jaber Mubarak Al Hamad Al-Sabah
Prime Minister - State of Kuwait
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SALHIA REAL ESTATE COMPANY K.S.C.P. AND SUBSIDIARIES
2017
ANNUAL REPORT
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SALHIA REAL ESTATE COMPANY K.S.C.P. AND SUBSIDIARIES
2017
ANNUAL REPORT
CONTENTS
BOARD MEMBERS 5
CHAIRMAN’S STATEMENT 6
Report of The Board of Director 10
Corporate Governance Report 24
Internal Control report (ICR) 36
Auditing Committee Report 38
FINANCIAL STATEMENTS 41
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2017
ANNUAL REPORT
• The Company evaluates its assets by
independent professional appraiser in the G.C.C
and the European market ,The total Asset has Book Value Vs Fair Market Value Book Value
2017
been estimated fair market value KD576 Million Fair Value
(Book Value KD296 Million).
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• The Estimated fair market value for the total 4
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shareholders equity KD424 Million (Book Value 4
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KD144 Million). 9
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Total Asset Total Equity
Geographic Segment Assets
2017
Total Shareholders Equity
2008-2017
Europe
55,083,569
19%
Kuwait and GCC
241,252,732
81%
Total Asset to Total Equity Comparison
Total Asset
2008-2017
Total Equity
Europe
Kuwait and GCC
Gross Profit to Total Revenues Total Revenues
2008-2017 Gross profit
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2017
ANNUAL REPORT
BOARD
MEMBERS
GHAZI FAHAD ALNAFISI
Chairman
FAISAL ABDUL MOHSEN AL-KHATRASH
Vice Chairman
ANWAR ABDULAZIZ AL-USAIMI
Board Member & Chief Executive Officer
EXECUTIVE
ABDULAZIZ GHAZI ALNAFISI
Board Member & Deputy Chief Executive Officer MANAGEMENT
YOUSSEF ESSA AL-OTHMAN
ANWAR ABDULAZIZ AL-USAIMI
Board Member
Chief Executive Officer
ABDULRAHMAN ABDULAZIZ AL BABTAIN
ABDULAZIZ GHAZI ALNAFISI
Board Member
Deputy Chief Executive Officer – Investment
MARZOUK FAJHAN AL-MUTAIRI Group Head
Board Member
HANY A. ABDELNOUR
SAUD AHMAD FAISAL AL-ZABIN Finance, Accounting & HR Group Head
Board Member
BADER KHALIFAH AL-ADSANI
MOHAMMAD KHALIL AL-MUSAIBEEH Real Estate Management & Development Group Head
Board Secretary
MOHAMMAD KHALIL AL-MUSAIBEEH
Group Accounting Manager
NASSER BADER AL-GHANIM
Group Investment Manager
ABDULNASSER BADER ALTURKAIT
Group Information Technology Manager
ALI JASSIM ABUL
Group Human Resources & Administration
Deputy Manager
AHMED MAHMOUD AL-QURAISH
Project Property Development Manager
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SALHIA REAL ESTATE COMPANY K.S.C.P. AND SUBSIDIARIES
2017
ANNUAL REPORT
CHAIRMAN`S STATEMENT
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2016
CHAIRMAN’S STATEMENT
M/s Shareholders of Salhia Real Estate
Company
On behalf of myself and my colleague Members of financial position of the company, and the situation
the Board of Directors, I’m pleased to extend to was dealt with the utmost transparency and clarity,
you the best greetings and warm gratitude for your preserving the rights of shareholders.
confidence. I’m honored to present the annual report The company overcame the incident with great
and financial results of Salhia Real Estate Company success. Construction of the project was re-
for the fiscal year ending 31 December 2017. commenced in a relatively short period of time. In
The year 2017 was filled with many political and addition, Salhia was successful in completing several
economic events, locally and internationally. The lettings of commercial space with both local and
changing regional political climate has engendered international companies and institutions. The area
negative indicators and pessimistic views of the leased in the commercial complex is approximately
economy in the region. However, the rise in oil 31,000 m2 representing 43% of the total lettable
prices and the rise in global markets contributed to area.
the strengthening of the economy, sending a sense The company has also completed all financing
of optimism in the performance of markets and the required for the project, that is Shari’a compliant
advancement of the local and global economy. with several local banking institutions.
During the year, the company encountered a difficult With regard to the financial results of the fiscal
challenge, a fire occurred on the site of the Assima year for 2017, the Company realized a profit of
project on Friday 30th June 2017. The construction of 15.8 million Kuwaiti Dinars resulting in (earnings
the project had to stop temporarily but did not last per share of 32.15 fils), compared to profits of the
long. The company’s management coordinated with previous year 12.2 million Kuwaiti Dinar, (earnings
its consultants to assess the effects of the accident. per share 24.81 fils per share) an increase of 29%.
Thankfully, the fire did not have any impact on the The total assets of the company amounted to 296
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2016
Chairman’s statement
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