Assembly Approves Agenda, Elects New Board of Directors

United Development Company (UDC)’s Ordinary General Assembly held yesterday, approved the distribution of cash dividends, representing 10% of share capital and equal to QR1 for each share.


During a meeting chaired by H.E. Mr. Turki bin Mohammed Al-Khater, UDC Chairman, the Assembly also approved UDC’s financial statements for the year ending December 31, 2018, and the appointment of KPMG as the Company's external auditor for 2019.


The meeting elected 6 new members to UDC’s Board of Directors, representing the private sector, for the period 2019 – 2021, who are as follows:


1. H.E. Sheikh Faisal bin Fahed Al Thani representing himself.
2. Mr. Ali Hussain Al-Fardan representing Al Fardan Holding.
3. Mr. Ibrahim Jassim Al-Othman representing himself.
4. Mr. Abdulaziz Mohamed Al-Mana representing himself.
5. Mr. Abdulrahman Abdullah Al-Abdulghani representing himself.
6. Mr. Abdulrahman Saad Al-Shathri representing himself.


While three seats have been allotted to board members representing the State of Qatar, which completes the number of the Company’s board members of nine, as follows:


1- H.E. Mr. Turki bin Mohammed Al-Khater, representing the Civil Fund of the General Retirement and Social Insurance Authority.
2- Mr. Mubarak Ali Mubarak Al-Nuaimi, representing the Civil Fund of the General Retirement and Social Insurance Authority.
3- Mr. Nasser Jaralla Al Marri, representing the Military Fund of the General Retirement and Social Insurance Authority.

The Extraordinary General Assembly also approved the amendment of the Company's Articles of Association as directed by the Qatar Financial Markets Authority to split shares, and authorized UDC’s Chairman to approve the amendment.


Elaborating on UDC’s 2018 activities and financial results, H.E. Mr. Al-Khater said: “The Company has achieved a net profit of QR 544 million and total revenues of QR 1.6 billion. The net profit attributable to shareholders of the parent Company was QR 501 million with basic earnings per share of QR 1.41”.


"The financial results achieved amid challenging circumstances demonstrate that UDC has embraced a viable business model that would enable the Company to sustain sound financial results during difficult times, given our flexibility to access diversified revenue streams from the sale of real estate and the rental of residential and commercial units”. Mr. Al-Khater added.


Mr. Al-Khater said UDC looks forward to completing its development projects in accordance with its future plans, which feature QR 5.5 billion worth of investments during the period 2019-2023, reflecting the Company's strong commitment to the development of sustainable projects in Qatar.


“UDC's business strategy will remain focused on creating opportunities and partnerships, achieving growth, minimizing risks and sustaining progress as we pursue discussions with concerned parties to launch new projects across Qatar”. H.E. Mr. Al-Khater stated.

Mr. Ibrahim Jassim Al-Othman, UDC President and Chief Executive Officer and Board Member, said 2018 marked another successful year for UDC with the achievement of good financial results and the completion of numerous developments projects across The Pearl-Qatar while enhancing customer experience for residents, visitors and retailers on the Island.


“The sound financial results for 2018 were driven primarily by a combination of the sale and lease of real estate properties, as well as cost efficiencies. Several cost optimization initiatives were implemented this year that resulted in UDC attaining more favorable terms for its supplies, and realizing other cost efficiencies”. Mr. Al-Othman explained.


“Recurring revenues from the rental of office, residential and commercial units have increased in 2018 as the number of residential properties under lease increased to reach 719 residential units, while the volume of office space under lease at UDC Tower reached to 21%. Meanwhile, the volume of retail areas under lease remains steady at 60%”. Mr. Al-Othman added.


UDC’s success was evident in the number of vehicles entering The Pearl-Qatar, which increased from 11 million in 2017 to 13 million in 2018.


"High quality development projects have been identified in line with our established strategy, and effective implementation will be critical to our success. Since UDC has successfully implemented similar projects, we will be capitalizing on our previous success to enhance efficiency in the development of new projects". Mr. Al-Othman noted.


UDC, the master developer of The Pearl-Qatar and Gewan Island, is a leading Qatari public shareholding company with a mission to identify and invest in long-term projects contributing to Qatar’s growth and providing good shareholder value.


Established in 1999, the Company was first listed on the Qatar Exchange in June 2003. It has an authorized share capital of QR 3.5 billion and total assets of QR 18.3 billion as at 31 December 2018.


UDC activities cover a multitude of vital investment sectors including real estate development, property management, infrastructure and utilities, maritime and hospitality related businesses.