Chairman Letter

It has been five years since the inception of Al-Riyada Finance & Investment Company, a thrilling experience indeed with many rewarding moments, and satisfying achievements. Though it was challenging to start a financing vehicle in the year of the biggest global financial crisis in history, when finance channels were tightened and major players in the finance industry began defaulting, we have succeeded in obtaining the finance for seven commercial real estate projects in the State of Kuwait during the past six years with a total market value of KD 228 million; The Gate Mall, Al-Liwan Mall, The Village Dinning Complex, Divonne Dining Complex, The lake Dining complex, Al-Ardiya Industrial Area, and Crystal Mall 2.

Since the inception of Al- Riyada, we achieved a 27% accumulated growth in return on Equity (ROE), a total book value of the investments amounting to KD 14,9 million, and a market value of KD 19,8 million.The key to our success is simply innovation!

While commercial developments were limited to the conventional commercial districts in Kuwait, we explored the untapped opportunities in new areas in southern Kuwait, introducing new retail and dining concepts to an audience of young and educated locals and expats in an under-supplied high population density neighborhood.

Not only we provide integrated corporate finance solutions to new projects, we also developed a credit portfolio by helping clients to restructure their existing debt with total amount of KD 120 million. Additionally, we continue to extend our full support to our clients in exiting projects with the maximum returns. Exited projects include Divonne Dinning Complex, The Village Dinning Complex, and Al-Liwan Mall.

It would be my pleasure to share with you more information on the financial analysis of Al-Riyada Finance and investment Company performance (2008-2013) via this link http://62.150.69.195/alriyada/AlRiyada/Content.aspx?id=15&lang=en

During our first years, we realized the importance of building a solid regulatory foundation in developing a resilient and sustainable business model. Therefore we prepared the proper policies, procedures and internal structures, in accordance with the resolutions and regulations of the Central Bank of Kuwait and the Capital Markets Authority. In this regard, we pride that our company is in good standing, and has never received warnings and citations from The Central Bank of Kuwait. Additionally, Al-Riyada is audited by a Shar’ia Committee representing “Legitimate Audit House”.

Towards the future, we aspire to position “Riyada” regionally as a one-stop gateway for diverse and innovative Sharia compliant finance solutions, with added value offerings to shareholders, clients, business partners, employees, and the communities we operate in.

In conclusion, I would like to express my gratitude to our Shareholders, Investors, and Clients for their trust and support, and all of our partners for working with us so efficiently. I would also like to thank the regulatory bodies represented by the Central Bank of Kuwait (CBK), Capital Markets Authority (CMA) and Ministry of Commerce and Industries for their cooperation.

Muhannad M. Al-Sane

Chairman & Chief Executive Officer