Kuwait- Abyaar's net profit surges 95% 

(MENAFN - Khaleej Times) Kuwait based Real Estate Development Company Abyaar, has announced its net profits of KD24,325,232 for the first nine months of 2008, compared to KD12,491,217 for the corresponding period last year, thus representing an increase of 95 per cent.

The company anticipates raising its capital by 100 per cent during 2008, after receiving the necessary approval from its General Assembly.

Abyaar's Board of Directors has recommended a capital increase of 100 per cent, to be open to current shareholders at a rate of 100 fils, and an issue premium of 25 fils per share. Through this move, which was supported by the company's main shareholders holding 65 per cent of shares ownership, Abyaar aims to finance its expansions and current projects, according to a Press release.

"Abyaar has a clear plan for expansion, and has made actual expansions in the region from its starting point in Dubai. Value of the company's projects amounts to Dh25 billion approximately, 85 per cent of which are under construction, thus boosting the confidence of our shareholders and investors, and proving our commitment by completing work on schedule," said Marzooq Al Rashdan, Vice-President and Managing Director of Abyaar.

According to a Press release, the company's earnings per share rose to 50.14 fils for the first nine months of 2008, compared to 25.87 fils for the same period of last year. Al Rashdan said that the profits achieved by Abyaar for the first nine months of 2008 are actual profits, stressing the company's commitment to the values of integrity and transparency, and noting that those who are monitoring Abyaar's activities, would realise that the results and profits announced are operational.

Al Rashdan noted that Abyaar's financial policy for determining profits is based on the actual delivery of completed projects, in line with the latest

International Accounting Standards (IASs), and that Abyaar's profits during 2008 generated from completed projects are actual profits, as IASs have been implemented in Abyaar's finances for some time now, and accordingly, future profits will not be affected.

Abyaar's total assets at book value amounted to KD230 million, while assets at "conservative" market value amounted to KD480 million. Abyaar's loans and liabilities make up 30 per cent of total assets, which is a small percentage according to the norms of the real estate development sector.

Al Rashdan disclosed that Abyaar has benefited significantly from the issue of Dubai's new mortgage law, as the company acquired a plot in Dubai.

"We have great confidence in the real estate market, and believe that the region represents the safest and most stable market for many capitals, despite the current financial crisis," he noted.