Naif Al Awadi inherited one of the most unenviable positions in the region when he became the chief executive of Al Mazaya Holding in June. The company's latest earnings statement reveals the difficulty of the task ahead in turning around the company's fortunes.
The Kuwaiti property development and investment company reported a loss of 2.1 million Kuwaiti dinars for the second quarter, its fourth consecutive quarter of losses. The company has turned a profit in five out of the past 11 quarters, and its latest income statement does not make light reading. A collapse in property sales to 35,800 dinars, from 7.5m dinars last year, resulted in sharply decreased revenue for the company.
Investment income more than halved, and losses from joint ventures widened by more than five times to 367,000 dinars. Meanwhile, the company's share of profits from its associates also turned negative, resulting in losses of 134,000 dinars.
A 10 per cent decrease in expenses to 1.5m dinars was one of few positive points. Alongside substantial investments in the company's native Kuwait, Al Mazaya was heavily invested in Dubailand, where a number of property buyers have defaulted after property values fell and grand plans for amusement parks were drastically scaled back.
The company's stock, currently trading at 60 fils a share, has now lost half of its value since the start of the year. Al Mazaya's stock rose 9.09 per cent yesterday following the release of earnings, though despite the rally it has substantially lagged Kuwait's stock market index since the start of the year.
There may be a bright side. Efforts to rejuvenate the Kuwaiti economy, intended to fend off political unrest, may soon start to pay off for the country's property companies, said Majed Azzam, a property analyst at AlembicHC.
"Transactions have picked up significantly, and definitely there's a fundamental recovery in Kuwait," he said. The company has also benefited from an improvement in the property market in Lebanon.
ghunter@thenational.ae
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UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
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Esperance de Tunis 1 Guadalajara 1
(Esperance won 6-5 on penalties)
Esperance: Belaili 38’
Guadalajara: Sandoval 5’
In Search of Mary Shelley: The Girl Who Wrote Frankenstein
By Fiona Sampson
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If you go...
Fly from Dubai or Abu Dhabi to Chiang Mai in Thailand, via Bangkok, before taking a five-hour bus ride across the Laos border to Huay Xai. The land border crossing at Huay Xai is a well-trodden route, meaning entry is swift, though travellers should be aware of visa requirements for both countries.
Flights from Dubai start at Dh4,000 return with Emirates, while Etihad flights from Abu Dhabi start at Dh2,000. Local buses can be booked in Chiang Mai from around Dh50
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- Cancer is the second-leading cause of death worldwide, after cardiovascular diseases
- About one in five men and one in six women will develop cancer in their lifetime
- By 2040, global cancer cases are on track to reach 30 million
- 70 per cent of cancer deaths occur in low and middle-income countries
- This rate is expected to increase to 75 per cent by 2030
- At least one third of common cancers are preventable
- Genetic mutations play a role in 5 per cent to 10 per cent of cancers
- Up to 3.7 million lives could be saved annually by implementing the right health
strategies
- The total annual economic cost of cancer is $1.16 trillion
