Peace, Blessings and Mercy of God upon You,
We welcome you, our Valuable Shareholders, in this renewing meeting each year in order to review together the Company's operations achieved on the ground and the financial results recorded during the past year 2020, which was undoubtedly a year full of challenges in light of the extraordinary conditions which conditions which prevailed in the entire world as a result of the outspread of the novel corona epidemic.
At the beginning, and on behalf of myself, I would to extend my warm gratitude to Members of the Board of Directors, Executive Managers, Administrators, Professionals and all the Company's Personnel for their sincere efforts and indefinite faithfulness in order to overcome this difficult period during the past year and its challenges.
During the past year, the world markets witnessed a regression and significant recession which imposed itself on all the functions and activities of all the countries and world economies, as a result of the rapid and constant outspread of the corona epidemic, escorted with significant precautionary and protective procedures adopted by the world governments to protect their peoples against the rapid spread of this epidemic. This has negatively reflected on all the markets and activities in all economic sectors, as a result of the abstention of a large sector of users from investment and using many of the tools of such activities.
Certainly, the real estate sector was not remote from these events. On the contrary, it was directly affected since the beginnings of the crisis, especially with the beginning of the complete and partial lockdown procedures adopted by many of the world countries. This has affected the investors and users of the real estate units, particularly the commercial and investment units, in a significant negative manner, which in turn resulted in the regression of selling, leasing and real estate development operations significantly as a result of this crisis, which is still casting its shadows on all the sectors yet.
Dear Brothers and Sisters,,,
Dubai First Real Estate Development Company was keen to interact with this crisis since its beginnings in order to safeguard its incomes resulting from the real estate operations, particularly in order to maintain the tenants base of its properties to ensure the stability of the constant liquidity resulting from the rental revenues, in addition to the reduction of its operational expenditures and other expenses in order to promote its cash liquidity to fulfill its obligations towards its creditors and stabilize the Company's financial position.
As the year 2020 was full of challenges on the regional and international levels, this has certainly affected the financial results of the economic sectors and their operating companies. Dubai First Real Estate Development Company has realized operational revenues which resulted primarily from the leasing operations of its real estate portfolio by the value amounting to 2.35 Million Kuwaiti Dinars, and net profit for the Company Shareholders by the amount of 222 Thousand Kuwaiti Dinars, whereby the share profit amounted to 0.22 fils by the end of 2020.
Today, we presenting to you the annual report of your Company for the fiscal year ended on 31 December 2020, which comprises a precise detail of the financial results achieved by the Company during the past fiscal year, which, thanks to God, ended in achieving net profits despite all the negative circumstances that accompanied the pandemic that shook the world during the year 2020, leading to the bankruptcy of many companies and the loss of jobs for millions of persons worldwide.
Dubai First Real Estate Development Company currently owns strong assets which amounted to the value of almost 87 Million Kuwaiti Dinars. The Company's assets are distributed to Kuwait, United Arab Emirates and the Kingdom of Saudi Arabia. Meanwhile, the value of the Company Shareholders' Equities amounted to approximately 74 Million Kuwaiti Dinars by the end of 2020, which does not represent a significant change in comparison with 2019. Further, the Company's liabilities dropped by almost 17% to amount to nearly 8 Million Kuwaiti Dinars by the end of 2020 compared with almost 9.5 Million Kuwaiti Dinars by the end of 2019, after the Company's success in fulfilling all its liabilities towards its creditors during the year, which contributed in promoting its financial position during the year and reducing the negative effect of the corona virus pandemic during the year very significantly.
In this respect and according to the corporate governance rules, the board of directors of Dubai First Company declares and undertakes the soundness, integrity and credibility of the financial statements and all the reports submitted to the Shareholders, which include all the Company's financial aspects such as the operational details and results.
As you are aware, Dubai First Real Estate Development Company looks forward to upgrading its operations, boosting its real estate portfolio and preserving the stability of its financial position during the repercussions of this pandemic which is still casting its shadows on the world yet through its various waves. We are also working to move the Company forward towards overcoming this crisis to deal with the next new development challenges as far as possible from the risk factors after the end of this pandemic, God willing, for the benefit of all the Company's Shareholders.
Finally, I would like to express my sincere gratitude to everyone who participated or contributed in achieving this success, despite these difficult conditions and great challenges. We appeal to the Almighty God to eliminate this epidemic which affected the world and to facilitate the paths of goodness for all of us. We pledge to you to enhance the performance of First Dubai Real Estate Development Company to reach the highest levels at the local and regional levels in the coming years.
Peace, Mercy and Blessings of God upon You.