First Dubai English Q1 31-03-2021

FIRST DUBAI REAL ESTATE DEVELOPMENT COMPANY – K.S.C. (PUBLIC) AND ITS SUBSIDIARIES NOTES TO INTERIM CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED) MARCH 31, 2021 (All amounts are in Kuwaiti Dinars) 11 March 31, 2020 Level 1 Level 2 Level 3 Total Financial assets at fair value through profit or loss 1,266,917 - 124,679 1,391,596 Financial assets at fair value through other comprehensive income - 902,225 4,244,890 5,147,115 Investment properties - 17,145,388 51,084,851 68,230,239 Total 1,266,917 18,047,613 55,454,420 74,768,950 There were no transfers between Level 1, Level 2 and Level 3 during the period. 10. Impact of COVID-19 The recent outbreak of the coronavirus (“COVID-19”) across various geographies globally, which was declared a pandemic by the World Health Organization, has caused disruption to business and economic activities. The fiscal and monetary authorities around the world, including Kuwait, have announced various support measures across the globe to counter the possible adverse implications of COVID-19. The Group has taken several measures to manage its risk associated with the pandemic, including identification of the most vulnerable sectors primarily affected and placing added measures to ensure a high level of scrutiny. The uncertainties caused by COVID-19 required the Group to consider the impact of volatility in the forward-looking macro-economic factors in order to manage the credit risk and liquidity risk and to determine the impact of COVID-19 consequences on the fair value measurement of financial and non-financial instruments in order to reflect that impact in the consolidated financial statements since the pandemic outbreak and till the accompanied interim consolidated financial information date. The Group has performed an assessment on its ability to continue as a going concern considering current economic conditions and all available information about future risks and uncertainties. The projections have been prepared to cover the Group’s future performance, capital and liquidity requirements. The impact of COVID-19 may continue to evolve, but currently, the projections show that the Group has the required resources to continue in operations on a going concern, such position that remains significantly unaffected and unchanged since December 31, 2020. As a result, those interim consolidated financial information have been prepared on a going concern basis. The Group had concluded that no material adjustments are required for liabilities and other assets as of the accompanied interim consolidated financial information. The management will need to carefully consider the measurement and recognition requirements for impairment losses on the Group's assets in the future, as the extent and duration of the economic impact of those events remains uncertain, since it depends on future developments that cannot be accurately predicted at this time, such as the rate of virus spread, the effectiveness of the containment measures taken and the trends and effectiveness of approved vaccinations by governmental authorities across the world. Given the ongoing uncertainty for the related economic impact, a reliable estimate of the impact cannot be currently made, but it may affect financial statements in future periods. The impact’s magnitude and amount may vary according to the extent and period during which those events are expected to end along with their effects.