Barwa Real Estate Company will seek to gauge feasibility of new projects on its existing plots and boost its brand image in an attempt to increase revenue in 2022, Chairman Salah bin Ghanem Al Ali said while addressing the company’s ordinary general assembly held in Doha on Sunday.
The company will also seek to rationalise expenditures and enhance efficiency of the corporate system, he added.
“Since 2022 will be an exceptional year, we have prepared a clear strategic plan that has been precisely and carefully drawn up to outline all the guidelines of our business during 2022,” the chairman said.
During the general assembly, the Board of Directors’ report on the company’s activity and financial position was approved for the fiscal year ending December 31, 2021), in addition to the company’s future plan for 2022.
Besides, shareholders approved the company’s balance sheet and profit/loss statement, the auditor’s report, the corporate governance report, and the Sharia Supervisory Board Report. A new Shariah Supervisory Board for 2022 has also been appointed.
The assembly also approved the proposal of the board to distribute cash dividends of QR0.175 per share (17.5 percent of the nominal share value), and to absolving the chairman and members of the Board of Directors of any liability for the fiscal year ending December 31, 2021, determining their remuneration, appointing auditors for the 2022 fiscal year, and determining their fees.
The extraordinary general assembly meeting, which was scheduled to be held on the same day, was postponed to March 14 due to lack of quorum.
At the end of the meeting, Salah bin Ghanem Al Ali reviewed the BOD Report, which included a comprehensive overview of BREC’s activities, performance and consolidated financial statements for the year 2021, as well as its future plans.
In 2021, Barwa Real Estate Group managed to maintain its leadership in the field of real estate development, thanks to the tremendous efforts exerted by the members of the Board, the executive management and all employees and subsidiaries during the fiscal year 2021, despite the ongoing challenges and difficulties resulting from the repercussions of COVID-19 pandemic.
In terms of financial performance, Salah bin Ghanem Al Ali said that despite the decline in the net profit for 2021 compared to 2020, by QR96 million, as a result of the decrease in the value of some non-recurring items such as profits from the appraisal of investment properties and other revenues, which decline amounted to QR609 million. However, the group managed to compensate for this by increasing its operating profits from rents, service revenues and revenues from the sale of real estate, contracting activity and other operational activities by a value of QR409 million. This is a huge achievement, especially in light of the challenges the real estate market is witnessing.
“One of the main objectives of the Company is to develop a balanced real estate portfolio that faces the risk of fluctuations in the real estate market, meets its needs, supports the development plans of the State and takes into account the Corporate Social Responsibility (CSR); in a way that increases sustainable returns for shareholders.”
In a related context, CEO Abdullah Bin Jubara Al Rumaihi said, “Barwa Real Estate has efficiently and effectively continued its Business Strategy and has adopted carefully studied action plans, accompanied by an integrated package of procedures and measures that led the group to present a successful model in the face of the repercussions and side effects of the pandemic. At the same time, it contributed to the launch of new sustainable projects.”
Al Rumaihi emphasized that the workflow of the projects under construction runs as per the specified schedule.
Strategic partnership with government
Al-Rumaihi in the past year, the group has come a long way in its projects under development, as the construction works of the Madinatna and Barahat Al Janoub projects will be completed during the current year.
“Thus, Barwa Real Estate will play its role to contribute to meeting the needs of the FIFA World Cup 2022. The first step was executing a lease contract with the Supreme Committee for Delivery & Legacy, for the purpose of leasing all housing units in the Madinatna project, for a period of 6 months starting from 1 August 2022. It is expected that this contract will contribute in increasing the company’s operating income during the lease term,” he said.
Furthermore, he clarified that the group is continuing work as per the timeline on the Qatar Schools Project (Package 1) to develop 8 sustainable schools to be a true legacy for future generations. He pointed out that the completion rate in this project has reached advanced stages in preparation for its commissioning at the beginning of the 2022-2023 academic year.
Al-Rumaihi also stressed that these projects deepen the principle of Barwa’s strategic partnership with the government of the State of Qatar.
In 2022, the CEO said, Barwa has a “clear strategic plan” as Qatar witnesses a number of major events, the foremost of which is the Qatar FIFA World Cup 2022
“The purpose is to keep up with the needs of real estate market and stakeholders, with a focus on creating long-term value. Besides, we will put into practice our knowledge and experience more than ever before to reach the goals and objectives required to implement this plan, and fulfil our duties in supporting Qatar’s needs to achieve a successful hosting of FIFA World Cup 2020, in a way that enhances Barwa Real Estate’s role as a leading national group in the field of real estate development.”