The Fifth Annual Report

Transcription

1 The Fifth Annual Report

2 ... آية رقم )1( - سورة املائدة Sharq - Khalid bin Al Waleed St. - Al Dhow Tower - Behind Arraya Complex Floors ( ) - P.O. Box Safat, Kuwait Tel: (+965) Fax: (+965) Al Imtiaz Investment Company (K.S.C) Closed C.R Dated 11 April 2005 Paid - up capital K.D 113,361,735 info@alimtiaz.com

3 His Highness Sheikh Sabah Al-Ahmed Al-Jaber Al-Sabah Amir of the State of Kuwait His Highness Sheikh Nawaf Al-Ahmed Al-Jaber Al-Sabah Crown Prince His Highness Sheikh Nasser Al-Muhamed Al-Ahmad Al-Sabah Prime Minister

4 CONTENTS Board of Directors...6 Audit Committee...6 Fatwa and Shariah Control Board...7 Executive Management...7 External Auditors...7 Board of Directors Report...8 Economic Abstract Key Financial Indicators Fatwa and Shariah Control Board Report Independent Auditor s Report Consolidated Financial Statements... 28

5 The Annual Report 2010 Board of Directors Fatwa and Shariah Control Board Dr. Essam Khalaf Al-Enezi Chairman, Fatwa and Sharia Supervision Panel Dr. Nazeem M. Al-Mesbah Member Dr. Khaled Shojaa Al-Otaibi Member Dr. Ibrahim Abdullah Al-Sabaii Member Dr. Naif Mohammad Al-Ajami Member Ghanim Bin Saad Al-Saad Chairman Mr. Ali Ahmad Al-Zubaid Deputy Chairman & Managing Director Executive Management Mr. Ali Ahmad Al-Zubaid Deputy Chairman & Managing Director Mr. Salman Marzook AL-Alwan Member Dr. Khalid Bin Ibrahim Al-Sulaiti Member Dr. Khaled Muhammad Boodai Member Mr. Abdul Rahman M. Zaman General Manager Mr. Mahmoud A. Al-Zubaid Deputy General Manager Dr. Abdullah H. Al-Mohaisen Assistant General Manager Mr. Salem A. Al-Ibrahim Assistant General Manager Mr. Ahmed R. El-Gharbawi Assistant General Manager Mr. Fawwaz Khalid Yousef Al-Marzook Member Mr. Mohammad Bin Abdulaziz Al-Saad Member Mr. Mohammad Barrak AL-Mutair Member Mr. Amr Diaa Rashed Chief Financial Officer Audit Committee External Auditors Independent Auditors Dr. Khaled Mohammad Boodai Dr. Shuaib A. Shuaib Qais M. Al-Nisf Chairman INTERNATIONAL Dr. Khaled Ibrahim Al-Sulaiti Member Mr. Salman Marzook Al-Alwan Member P.O Box: 2115, Safat Kuwait T F AL NISF & PARTNERS Qais Al-Nisf, Licence No. 38 A, Moore Stephens Al-Nisf & Partners Member firm of Moore Stephens International P.O. Box 25578, Safat 13116, Kuwait

6 The Annual Report 2010 Board of Directors Report Praise be to Allah, the Lord of the universe, and peace and blessings of Allah be upon our Prophet, Muhammad, his companion and those following his path until the Day of Judgment Dear shareholders of AlImtiaz Investment Company, It is with great pleasure that the Board of Directors welcomes you to the fifth meeting of the ordinary General Assembly meeting. The purpose of this meeting is to present the fifth annual report ending on 31st December 2010 as well as review the consolidated financial statements of AlImtiaz Investment Company Group, the independent auditors reports, the Fatwa and Shari a Control Board report, and the most important financial indicators concerning the company s business results, together with a summary of the most prominent local, regional and global economic developments. Praise be to Allah: the company is moving forward despite two very difficult years as part of the repercussions the financial crisis that continues to affect economies around the world. The implications and consequences of this crisis still have their toll on the investment sector, financial institutions and businesses in the region. AlImtiaz Investment Company has risen to the challenge: not only has the company managed to overcome the worst repercussions of the current financial crisis during the past seventy years but also has managed, as one of the few local and regional companies, to lay a strong stable foundation for its operations year after year. In fact, we are proud to say that AlImtiaz Investment Company has become a leader of distinction in its field. The year 2009 was a pivotal year. As a shareholder, your early support combined with decisions taken by the General Assembly in response to recommendations by the Board of Directors and the executive management focused on immediate restructuring. In addition, your approval for a public offering to increase the capital by approximately 50% directly affected the company s positive performance in the crisis year but also supported its negotiating capabilities especially with banks and other financial institutions. The results were significant. The company developed a distinguished portfolio of solvent assets without artificial inflation as per the company records. This unprecedented lead was accomplished with the support of its shareholders, Board of Directors and executive management as well as the operating technical and advisory teams. This financial portfolio produced several deliverables: it made the assets attractive, and at the same time, enabled the company to sell some assets to repay debts and avail itself of financial liquidity despite financial scarcity combined with the reluctance of investors to buy, or invest. Long-term planning has been paramount since the company laid its foundations many years ago. Restructuring and repaying debts within this financial crisis has been crucial for the company in all its planning efforts and transactions. The Board of Directors took other equally important steps: it sought out new working models, new paths and directions for the period after the crisis. Based on these new models, goals and decisions, the company developed a new strategy and effective role for AlImtiaz Investment Company with its group of subsidiaries and affiliates. The real change took place in London, England in November 2010 with the company s first strategic conference. Dear shareholders, This important conference laid the foundation for the post-financial crisis stage, a stage which demanded institutional commitment to abandon high risk investments of potential quick profits and returns on investment, and concentrate instead on real medium- and long-term investments. This commitment achieved balance, integration and harmony between the wider AlImtiaz Investment Company itself and its group of subsidiary and associate companies. The new business model and vision calls for first core corporate values and principles: a respect for the company s system of values based on an even greater commitment to governance, good management, transparency of work, honesty, and commitment to quality as well as the principle of reward and punishment. All these principles remain central to Shari a values and teachings that are the foundation stone of the principles of team work. Prior to this, AlImtiaz Investment Company took important steps to adopt a new business model, which was accomplished by the end of On the one hand, the company reduced debts to equity ratio from 2.5 to 1 by the end of 2009 to reach 0.60 to 1 by the end of Even the Central Bank of Kuwait requirements dictates a maximum ratio of 2 to 1 by mid On the other hand, the company s group leadership adopted a flexible parent company model whereby a group of seven subsidiary and associate companies specialize in an active, operating, and producing economic sector within the wider forecast of active sectors past the crisis. Under the new vision, the company leadership endeavors to achieve effective interaction between all of its companies with a coordinated vision under the leadership of the parent company. From 2011 onwards, each subsidiary of the group is aware that it is part of an integrated self-sustaining system, and it is to become a profit center supporting - and not a burden to - the company s performance (parent company). Dear shareholders, It is also important to review the results of the year ending 31st December Let it be clear: overcoming the repercussions of the financial crisis, and preparing for the future was not an acceptable position to explain bad performance in the present, and will not be acceptable in the future. That being said the results of the last year were encouraging. Success was the result of sustained company efforts not only in 2010 but also since its inception five years ago in April During 2010, the company accomplished the highest net profit, and therefore, it accomplished a return on assets average of 8.1% and a return on the average paid capital of 36.8%. Equity increased about 28.2%. The best performance in the year was to overcome the repercussions of the past times and prepared for the future which took concentrated effort and orchestrated endeavors. In addition the return on shareholders equity reached 20.1%; this positive development also took place with an important reduction in risk levels. Simultaneously, the company increased the internal finances of its operations and investments by increasing equity from KD million by the end of 2009 to KD million by the end of Total external debts were reduced from KD million in 2009 to KD million by the end of In effect, the company repaid KD 304 million during the height of the financial crisis when liquidity and financing feeds were scarce. Based on these financial results, the Board of Directors is pleased to recommend that the General Assembly distributes cash dividends of 10% from the capital as of 31st December 2010 (i.e. 10 fils per share). Dear shareholders, We are determined to proceed ahead: this is our clear vision. In cooperation with the executive management, the Board of Directors within AlImtiaz Investment Company is committed to achieving our goals with devotion and due diligence. Our goals continue to include achieving net profits, supporting our shareholders wealth, and strengthening the company presence within the context of the business and finance sector in the State of Kuwait and the wider region. In 2011, we are working to list the company on the Kuwait Stock Exchange. We are building a company for the coming generations who aspire to leadership: we believe we present the best model of investment companies in Kuwait and the region especially within the Islamic financial investment sector in which we operate. We believe that there are chances in life which cannot be repeated. We are now at the forefront of this trend that rises as a strategic goal for us and therefore ask all our shareholders, investors, Board of Directors, executive management and employees to take this strategic opportunity and work hard to seize and gain it. In conclusion, we reiterate that our achievements could not have been accomplished without the guidance and benefaction of Allah. We should bear in mind the shareholders support, especially the strategic shareholder and ally (Barwa Real Estate Company) and its unwavering support. In this context, we thank the esteemed Assembly for your support and confidence which is a source of appreciation and pride. We also thank the dedicated scholars, head, and members of Fatwa and Shari a Control Board in the company as well as the executive management team especially the General Manager and all our fellow employees for their commitment, dedication and loyalty. We pray to Allah the Almighty to bless our efforts and grant us success in our endeavors to promote the company, to bring real added value to our country s national economy, to protect our homeland under the wise leadership of His Highness the Amir - may Allah protect him - and His Highness the Crown Prince, to support the government in its efforts to achieve economic prosperity and well-being for the Kuwaiti people, and to help us for the good of the country and the benefit of its people. We thank you for your presence and participation. May peace and blessings of Allah be upon you. 8 9

7 The Annual Report 2010 Economic Abstract Performance of the World, Regional and Domestic Economies Global Economy In 2009, according to the International Monetary Fund (IMF) figures, the global economy achieved its first negative real growth since the end of World War II, yet it was better than expected. The world s economy lost approximately 0.6% of its volume, much less, by comparison, than the Great Depression of the 1930s during the twentieth century. Negative performance resulted from a large negative growth of up to 3.2% of the industrialized world s economies (OECD), the volume of which is 69% in U.S. dollars of the world s economy. Importantly the emerging and developing economies achieved a positive growth accounting for 31.6% of the world s economy. The IMF forecasts that the global economy is likely to achieve a high positive growth of 4.8% in This means that the global economy is undergoing a faster recovery than expected, with strong support, for the first time, from emerging and developing economies whose estimated growth is about 7.1% compared to the growth of developed economies with 2.7%. China and India rank first as emerging economies. In 2009, when the current financial crisis began, the Chinese economy achieved a high positive growth rate of about 9.1%. The International Monetary Fund expects that China is likely to achieve a growth rate of 10.5% in 2010, the year in which the Chinese economy became the world s second largest. In 2009, India also achieved a positive rate of growth, estimated at 9.7%. This means that, in 2010, the average growth of these two economies would be four times larger than the growth rate of developed economies. The financial crisis helped transfer the world s economic power to the East. These global economic moved in 2009 and 2010, the two years following the crisis, can be interpreted differently. During these two years, the world saw the development of new specific features that usually take place over centuries. The first feature is seen in the role of both emerging and developing economies providing aid to the ailing global economy to overcome the crisis, which had been a unique role of the developed economies. The second feature is the disparity of the time taken to overcome the repercussions of the financial crisis. While the US and some European countries applied quantitative easing printing currency to support economic growth, China, in turn, began to experience inflationary pressure, and began to apply contractionary monetary policies to control its economy, despite the fact that the world s economies overlap in the era of globalization. The third feature was the impact of the crisis in accelerating growth in the East and its very high growth rates, compared to the West with its declining slower growth. This helped to quickly transfer economic power to the East, making both China and India, the first and second largest world economies by the third decade of this century. Regarding performance during 2010, the Fund s initial figures indicate that all the regional economies have positive growth, in the same order; the lowest was Kuwait of about 2.3%, UAE 2.4%, Saudi Arabia 3.4%, Bahrain 4%, and Oman 4.7%. Having a similar growth difference as that of the emerging and developed economies, the Qatari economy is expected to grow about 16%, four times the growth of its regional peers. Thus Qatari s economic growth could be the world highest. A quick return to positive growth in the Gulf region as well as a return to the high growth rates of the main emerging economies such as China, India, and Brazil may have increased inflationary pressure, especially the high increase of raw materials prices such as oil and food products. IMF figures indicate that the inflation rates in Saudi Arabia reached 5.5% in 2010, and will remain as high as % in 2011, relatively high in Oman of approximately 4.4% and 3.5% for the same period respectively, and in Kuwait 4.1% and 3.6% respectively. The inflation rate will be under control in UAE and Bahrain, ranging between 2% and 2.6% for 2010 and 2011 respectively. It is worth noting that the inflation rate remains low in Qatar despite the strong economic growth estimated at 1% in 2010, increasing to 3% or more in Generally speaking, these positive growth rates in 2010, ranging between 4.4% and 4.7% in four out of six countries in 2011, and 3.2% for UAE, and 18.6% for Qatar, reinforce positive growth trends, and are expected to control inflation except for little concern in Saudi Arabia. The region has overcome the repercussions of the crisis, early. Most economic support resulted from a fast recovery of the global economy, specifically from the markets for stronger demand on energy as well as the new giant economies of India and China. Despite the crisis of Europe sovereign debt in the second half of 2010, the continuing concern about the level of U.S. growth, the continued high unemployment, the budget deficit, and the trade deficit, the International Monetary Fund adjusted its forecast upwards in 2011 concerning the growth of the overall world economy to approximately 4.2%, and then continuing higher until Economic disparity continues to be less between the growth of the economies of the East and West, but it still ranges between 2.5 to 3 times in favor of the East, which means that economic power continues to accelerate in the transfer to the East. Regional Economy The International Monetary Fund latest report - October 2010 indicates that the crisis had lesser impact on the countries of the Gulf region. Four out of six countries achieved a positive growth in 2009, the year the financial crisis began. Saudi Arabia, whose volume of economy is about 43.6% of the regional economies, achieved the lowest positive growth rates estimated to be approximately 0.6%, whereas the Qatari economy achieved the highest rate of 8.6%, the Omani economy 3.6%, and the Bahraini 3.2%. Despite the fact that Kuwait has the third largest economy in the region, it bucked the growth trend by achieving a high negative growth of up to -4.8%. Similar to Kuwait, UAE, the second largest economy of the region, achieved a negative growth of -2.5%. This means that the three largest economies in the region were the most affected by the financial crisis

8 The Annual Report 2010 Local Economy Al Dhow Tower After the relatively high contraction 4.8% of GDP in 2009, the year following the financial crisis, the GDP recovered positive growth in 2010 in the range of 2.3% according to International Monetary Fund estimates in October In the first place, support comes from the high price of Kuwaiti oil per barrel as well as approval of the fiscal year budget starting in April 2010, for 34.5% increase in spending, till the 5-year-plan is approved. Improvement has been represented in overcoming the negative inflation phase in oil prices, where the Kuwait Stock Exchange index added 25.5% to its value despite low market liquidity at about 42.6%. The real estate market liquidity increased, resulting in consistent rates of its main active units such as private housing and investment housing, whereas office activities still face some pressure. This pressure results mainly from little liquidity as banks still hesitate to issue new loans, while bank credit was stable at about 0.44%, i.e. less than the economic growth rate. Current bank loans are mostly extensions of existing loans. The oil sector stands alone in supporting growth. With the official stable rate of production at 2.2 mb/day in 2009 and 2010, the Kuwaiti oil barrel price increased from $60.3 US dollars in 2009 to $76.4 US dollars in 2010, a growth percentage of 26.7%. Considering this high increase in the oil prices, the general budget of the fiscal year ending in March 2011 is expected to achieve a surplus of KD 3 billion, with a similar surplus of the preceding year despite public spending increases estimated at KD billion. It is expected that the positive real growth will be enhanced in 2011 reaching 4.4% with stable oil prices of about $90 US dollars by the end of Public finance and current accounts continue to achieve high surpluses. Reducing construction spending and the logistical bottlenecks may increase the ability to carry out the 5-year plan projects higher than the present rates, and, as a result, this development will achieve real economic growth with rates higher than estimates of the current reality. These variables should contribute to reducing the banking sector s hesitation to carry out its main duties, i.e. lending, which Kuwait did not experience in

9 The Annual Report 2010 Key Financial Indicators 2010 Historical Movement for the Consolidated Financial Information for the Company since inception Million K.D Balance Sheet Financial Indicators Since Inception Till 2010 Million K.D Indicator Total Total revenues Net Profit attributable to the parent company s Shareholders Net profit before provisions Paid-Up Capital Total Equity attributable to the Parent Company s Shareholders Total Assets Return on Average Paid-Up Capital 42.0% 74.5% 52.8% 17.5% 36.9% - Return on Average Equity attributable to 33.7% 41.5% 29.1% 10.4% 20.1% - Parent Company s Shareholders Return on Average Assets 10.4% 8.3% 5.0% 2.4% 8.1% - Total Assets Total Liability Total Equity Income statement Million K.D Million K.D Total Assets & liabilities Total revenues Total Expenses & Provisions Net Profit attributable to parent company s shareholders Performance for the years ended 31 December 2009 / 2010 Million K.D Indicator Variances Growth Rate Total Revenues % Net Profit attributable to the Parent Company s Shareholders % Net Profit before Provisions % Paid-Up Capital % Total Equity attributable to the Parent Company s Shareholders % Total Liabilities (304.0) (68.1%) Total Assets (243.6) (38.6%) Return on Average Paid-Up Capital 17.5% 36.9% 19.4% 110.9% Return on Average Equity attributable to Parent Company s Shareholders 10.4% 20.1% 9.7% 93.3% Return on Average Assets 2.3% 8.1% 5.7% 237.5% Leverage (1.9) (76.0%) Earning Per Share - Fils % Total Asset Total Liabilities Total Assets of the company as of December 31, 2010 were KD Million (December 31, 2009 KD Million), decreased by 38.6% comparing to 2009 as a result of exits from some investments in order to settle some due liabilities Total liabilities decreased during December 31, 2010 to KD Million as a result of exits from some investments in order to settle our liabilities 14 15

10 The Annual Report 2010 Geographical Diversification of Investments as of December 31, 2010 Amounts (Million K.D ) Total liabilities Distribution Percentage % Kuwait 40.5% 83.3 Qatar 30.6% 27.5 Bahrain 10.1% 14.8 Other Gulf Countries 5.5% 36.2 Other Countries 13.3% Bahrain %10.1 Kuwait %40.5 Other Countries %13.3 Other Gulf Countries %5.5 Qatar %30.6 Million K.D Total Shareholders Equity The company s investments were distributed in different geographical countries and miscellaneous investments sectors in various economic sectors in order to reduce the risks that might result in focusing on a particular area or activity, however 40.5% & 30.6% of the company s investments are concentrated in Kuwait & Qatar respectivly which are considered the main markets of the company in the time being. Total Shareholders Equity attributable to Parent Company in December 31,2010 grew by 28.2% to be KD Million compared to KD Million in 2009 as a result of Capital increase by KD 2.8 Million and year net profit after excluding cash dividends of Paid-Up Capital since Inception Million K.D Sectors Diversification of Investments as of December 31, 2010 Amounts (Million K.D ) Sector Percentage % Real Estate & Infrastructure 63.9% 67.7 Finance & Investment 24.9% 30.6 Industry & Services 11.2% Industry Services & %11.2 Finance & Investment %24.9 Real Estate & Infrastructure % The company s capital increased from KD 36 Million at inception in 2005 to KD 43.5 Million during the year 2006 resulted from entering strategic shareholder (Barwa Real Estate Company). The company s capital increased to KD 45.7 Million after declaring bonus shares of 5% of Capital for the year ended December 31, Relating to sector diversification, The Company is concentrating in the real estate and infrastructure sector by 63.9%, and in order to reduce this risk, the company is now seeking to expand its activities in other sectors such as industries and services, although the returns from these sectors are slow and gradual, comparing to finance and real estate investments sectors. The company s capital increased to KD 65.1 Million including bonus shares of 10% for the year ended December 31, The company s capital increased to KD Million with increase of 70% including bonus shares of 20% for the year ended December 31, Paid up Capital increased by KD 2.8 Million due to applying third stage from the fourth year in stock option plan to reach total capital of KD Million by the end of

11 The Annual Report 2010 Fils Average Earning Per Share (Fils) Dividends Fils Fils 49.7 Fils Fils Fils In December 31, 2010 the company achieved Average earning per share of 36.8 Fils per share compared to 16.9 Fils per share in % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Bonus Share Cash Dividend Total Dividends 30% 25% 20% 20% 20% 20% 10% 10% 10% 7% 7% 5% 0% 0% 0% In its first period ended December 31, 2006 the company achieved Net Profit of KD 16.8 Million or 42.0% on Average Paid-Up Capital, dividends declared were KD 10.9 Million as 25% on the share capital in December 31, 2006, classified as follows: 45% 40% 35% 30% 25% 20% 15% 10% 5% 0 Return on Average Equity 41.5% 33.7% 29.1% 20.1% 10.4% A) Cash dividends of 20% on share capital B) Bonus shares of 5% on share capital In second year ended December 31, 2007 the company achieved Net Profit of KD 30.5 Million or 74.5% on Average Paid- Up Capital, dividends declared were KD 13.7 Million as 30% on share capital in December 31, 2007, classified as follows: A) Cash dividends of 20% on share capital B) Bonus shares of 10% on share capital In third year ended December 31, 2008 the company achieved Net Profit of KD 29.2 Million or 52.8% on Average Paid- Up Capital, and dividends declared were KD 13 Million of bonus shares as 20% on share capital in December 31, Up to the year ended 2008, total dividends declared during the first period of the Board of Directors are KD 37.6 Million equivalent to 100% of total shareholders equity at the date of inception in 2005 classified as follows: A) Total cash dividends amounting to KD 17.8 Million. B) Free bonus shares at par value of KD 19.8 Million by issuing Million Shares to Shareholders. In the fifth year ended in December 2010 the company achieved profit of KD 41.3 Million or 36.9% on average paid-up capital, and the proposed dividends is KD 11 million which represent 10% to shareholders, this proposal is subject to General Assembly approval. Thus, the total dividends in the first five years amounted to KD 57 million. In December 31, 2009 the company achieved Return on Average Equity attributable to Parent Company Shareholders of 20.1% compared to 10.4% in 2009, with Growth Rate 93.3 %

12 The Annual Report 2010 Commitment to the standards of The Central Bank of Kuwait 16% 14% 12% 10% 8% 6% 4% 2% 0% Acid-Ratio 14.5% 10.0% 10.0% 10.0% 10.0% 5.6% 4.3% 2.4% Q.1 Q.2 Q.3 Q.4 Actual CBK (Minimum) 60% 50% 40% 30% 54.0% 50.0% External Debts 50.0% 50.0% 50.0% 32.4% 29.6% Fatwa and Shariah Control Board Report 20% 10% 0% Q.1 Q.2 Q.3 Q.4 1.8% Actual CBK (Maximum) 3.5 Leverage Q.1 Q.2 Q.3 Q.4 Actual CBK (Maximum) 20 21

13 Fatwa and Shariah Control Board Report Praise to Almighty Allah and Peace and blessings be upon prophet Mohamed, his family and companions Dear AlImtiaz Investment Company Shareholders, Peace and blessings be upon you all, In implementation to the assignment of fatwa and legal control entrusted to us by you, we have reviewed the contracts and transactions concluded by the company for the period from 1/1/2010 to 31/12/2010 AD. Our responsibility is limited to give an independent opinion on the extent the company s compliance with the provisions of Islamic Shariah provisions in its works and business activities. Pursuant to the legal auditing report referred by the Legal Control Department which conducted the audit according to the decisions passed by the Board in the light of the standards and controls of Islamic Financial Institutions Accounting and Auditing Society which require planning and enforcing the audit and revision procedures for securing all information, explanations and representations necessary to form a reasonable assurance that the company complies with the Islamic Shariah provisions, as we have clarified, we believe that the audit performed by the Department provides a proper basis to provide a fair opinion. It is to be noted that the liability of compliance to perform the contracts and transactions according to Islamic Shariah provisions, as we have clarified, lies with the Company s Management. In the light of the foregoing, the Board maintains the opinion that: 1. During the concerned period, the company has fulfilled its obligations towards the completion of contracts and transactions in compliance with Islamic Shariah provisions as set out in the opinions, guidelines and Shariah decisions taken by us during the specified period. We did not find any legal contraventions contrary to this opinion. 2. Zakat has been calculated in accordance with the principles approved by the Board. Consolidated Financial Statements We pray to Almighty Allah to bestow Peace and Blessings upon Prophet Mohamed, his family and companions. Dr. Essam Khalaf Al-Enezi (Chairman) Dr. Nazeem M. Al-Mesbah (Member) Dr. Khaled Shojaa Al-Otaibi (Member) For The Year Ended December 31, 2010 with Independent Auditor s Report INTERNATIONAL Dr. Ibrahim Abdullah Al-Sabaii (Member) Dr. Naif Mohammad Al-Ajami (Member) AL NISF & PARTNERS 22 23

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28 Al-Imtiaz Investment 52 53

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34 Financial Assets: Financial Liabilities: Financial Assets: Financial Liabilities: 64 65

35 Finished by the Grace of Allah The Fifth Annual Report 2010