Al-Rashdan: Abyaar Continues to Implement a Series of Successful Projects

  • 04 May, 2017
  • Kuwait

The Chairman of Abyaar Real Estate Development Company Marzouq Al-Rashdan stressed that the company has succeeded in 2016 to repay its debt of 2 million Kuwaiti Dinars, which led to a decline in creditors of Islamic financing from 43.6 million dinars in 2015 to 40.4 million dinars in 2015.

Al-Rashdan stated during the General Assembly Meeting that was held yesterday, with an attendance rate of 64.89% that Abyaar’s efforts are currently concentrated towards carrying forward the implementations of the company's projects. In order to deliver projects within the time schedule. He added that Abyaar has worked on meeting its promises for 2016 in which it has achieved tangible success and was able to decrease its debts.

In his speech during the General Assembly, Al-Rashdan emphasized that Abyaar was keen on fulfilling its 2014 promises and obligations during the year of 2015. In which he presented the most significant achievements that took place during 2015:

The company's achievements in multiple real estate projects

  • Hilliana Tower Project: Abyaar has attained a major achievement in this year as the Hilliana residential tower has been completed. Hilliana tower consists of 28 stories and is situated in Sufouh, Dubai. Abyaar is currently completing the delivery of its residential units to customers, after the buildings has been equipped and furnished. This in return reflects the company's commitment to its clients and all relevant organizations, and it consolidates the company's reputation in the Real-Estate field.


  • Olgana Tower Project: Abyaar is currently developing and completing this dynamic project that consists of 42 stories. Olgana tower is adjacent to Hilliana tower, and it is currently 55% completed. Abyaar is pursuing to complete all the concrete work of the project at the end of the third quarter in 2016, with an intent to finalize the construction of the building entirely in the second quarter of 2017.


  • IMPZ: Currently, Abyaar is preparing floor plans for the project in coordination with the consulting offices. This coordination will be followed by the completion of the procedures of the specialized government entities. In order to attain the best prices; in which bidding procedures had begun and the construction will begin in 2017.

Abyaar’s Financial Obligations:

The company has been committed to the restructuring plan of its liabilities during the fiscal year of 2016 and fulfilling the payment of its liabilities to a number of local and Arabian Gulf banks totaling to 3.15 million Kuwaiti Dinars. Thus, the company is committed to all its contracts with creditor parties without compromising any of its obligations.


Shareholders’ Equity:

Abyaar witnessed a decrease in equity amounted to 4.4 million dinars, and a decline rate of 4.58% in the fiscal year 2016. This was due to the loss of provisions on the project “Port Ghalib” after the decline in the rate of the Egyptian pound following the decision of the Egyptian monetary authorities to float the currency. This decrease is also attributed to some investments, in the company’s efforts to avoid future losses. This resulted in a negative impact on the book value of the share, which amounted to 83 fils at a loss of four fils for the fiscal year 2015. In the 2016 fiscal year, Abyaar’s losses amounted to 21.7 thousand Kuwaiti Dinar, a rate of 0.02 fils per share.


Creditors and Expenses:
Abyaar has paid the due amounts of 3.9 million KD to the contractors and consultants working on the company's projects, resulting in a decrease in creditors and short-term due expenses.


The General Expenses:
The company reduced staff costs by KD 142,000, a decline rate of 19%. Other administrative and general expenses decreased by KD 143 thousand, a decline rate of 22%. The cost of financing decreased by KD 51 thousand, a decline rate of 3%, which led to a decrease of 336.5 Thousand Kuwaiti Dinars, which signifies a decline rate of 44% from the fiscal year 2015.


The General Assembly:

The General Assembly approved all the items listed on the agenda, including the Chairman’s report in addition to the reports of the Fatwa, auditors and corporate governance comities. In addition, the General Assembly agreed not to distribute dividends to shareholders for the fiscal year ending in 31/ 12/ 2016, as well as not giving the board members a financial reward for the fiscal year ending in 31/ 12/ 2016 in addition to provide the Board of Directors a clearance of their legal, financial and managerial decisions for the fiscal year ending in 31/12/2016.