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00:00But first, we have the Arabian Chief Financial Officer at Riyadh, Mohamed Dalek Lab.
00:08Welcome, Mr. Mohamed, and thank you for being here.
00:11Let's start with the positive results for the company and the growth in revenues in the first quarter.
00:19What are the reasons and which sectors contributed to this growth?
00:25Welcome, Ms. Misa. May God grant you and the viewers happiness.
00:29Thank God, Ms. Misa, we are starting today to pick up the fruits of the company's strategy
00:35which was launched at the beginning of 2023.
00:38One of the most important pillars was how to have a consistent growth for the company's main business revenues.
00:47Thank God, the plans have been laid out and some major financial projects have been achieved in the company's markets and centers.
00:55Thank God, we were able to grow by about 13% in the first quarter compared to the previous year.
01:03Yes, we also see an increase in some of the services and rentals that were done in the first quarter.
01:13Mr. Mohamed, tell us about this increase. What is the type of increase and what are the services that you have increased?
01:22Indeed, during the past period, the infrastructure has been developed, the facilities and services have been improved,
01:29and the number of jobs has increased.
01:32Thank God, we were able to improve the customer experience by re-pricing these services in accordance with the services provided to them.
01:47Thank God, for example, Mr. Misa, today in the Attega market, the fruit and vegetable market has been developed,
01:55it has been improved, and a suitable infrastructure and experience has been provided for both customers and marketers.
02:02As a result, this was reflected in response to the prices of the services provided to them.
02:07Yes, will this increase continue until the end of 2024, do you expect?
02:13Indeed, of course, it is very important that the increases, and this was one of the most important factors in our strategy, be consistent.
02:22Today, all the increases that are made, God willing, will be repeated and with high quality and consistent.
02:28We also saw an increase in the revenues and profits of 7 million Riyals, Mr. Mohamed.
02:35Tell us about these revenues and profits, and how will they remain within the required level?
02:44Thank God, of course, the money available in the company has been exploited, for example,
02:51Also, through the increase in revenues, all the costs of the revenues that have been obtained from the customers have been reversed.
03:01Of course, as you know, Mr. Misa, today the interest rates are very high, and we are always happy with the exploitation of cash and the exploitation of examples.
03:16Yes, the size of the existing projects as a whole, Mr. Mohamed, how do they continue?
03:21As I noticed, you are also announcing the signing of agreements to develop educational associations during this period.
03:28How comprehensive are the projects and how many educational associations do you have within this portfolio of projects?
03:36Of course, a framework agreement was signed with MISC to develop schools.
03:43We will build schools in a built-to-suit system.
03:49Thank God, an agreement was also signed for the construction of the first school, God willing, in the neighborhood of Al-Malqa in northern Riyadh.
03:57We are now working with them on several schools, God willing, in different areas in the Kingdom of Saudi Arabia.
04:09This is for education, but as a whole, the projects are now under implementation.
04:13We have several projects, whether in the logistics sector, in the office sector, or in the commercial sector.
04:21We are now researching and preparing studies for them, and God willing, they will be announced as soon as they are completed.
04:30In the previous quarter, you had an exceptional income from the sale of some of your land, Mr. Mohamed.
04:38This raises questions. How much land do you have now?
04:42And how large are the developed lands in the company's plan?
04:46Of course, we have rich, unique, and distinctive lands distributed throughout Riyadh.
04:54Some of them are developed and some are not.
04:57Indeed, our strategy is that any land that is not developed will be removed, which will enhance the return to the contributors.
05:08During the past period, one of these lands was sold, and God willing, another land will be announced as soon as it is completed, God willing.
05:16Yes, so this year we can see this removal of some lands?
05:20It will be done, God willing.
05:22Okay, back to the expansion process. How is the expansion process now?
05:28Is it from private resources, or are you also resuming the acquisition process during this stage to complete the projects?
05:34Of course, our strategy, God willing, is that we intend to enter investments of more than 6 billion Riyals.
05:39Therefore, we will diversify the financing of these investments, some of which will be from the available funds, some of which will be with the participation of companies, and some of them, God willing, will be through the acquisition.
05:52Okay, so even if the financing cost is high, will you start with the acquisition option?
06:00Of course, it depends on the studies of the project. If it is a positive one, and it enhances the return to the contributors, it will be done, God willing.
06:09Yes, we have seen the latest company law, perhaps most companies have sought, Mr. Mohamed, the process of transforming regulatory reservations into permanent profits.
06:17Do you have this plan within the new company law, and also to enhance at least the distribution process to the contributors after this step?
06:27Currently, we are building the specializations as usual, there is no intention to transform them into permanent profits, but if the need arises, it will be done.
06:37And what is the distribution of profits?
06:41Of course, we have a policy in distributing profits, we continue to do so, so that we can balance the expansion in activities and also the distribution of profits to contributors.
06:56We wish you the best of luck, Mr. Mohamed Lecleb, you were first with us on CNBC Arabia, and you are the CEO of Al-Maliyah, a Riyadh construction company. Thank you very much.
07:08You are welcome, thank you.