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00:00 I think that the operating profits were stronger than expected and greater than the operating profits for the first quarter of 2023.
00:12 The main change was in the adjustment of some expenditures and buildings in the subject of real estate.
00:23 The adjustment of real estate was in the first quarter of 2023, but it was not available in the first quarter of 2024.
00:37 But I expect that in the next four quarters, God willing, there will be some increase in the real estate value of real estate projects,
00:48 especially that real estate companies are registered in the sales.
00:55 I expect that Mr. Khaled will be in the second quarter results for these assessments.
01:00 I expect that there will be some projects that have been moved to take income.
01:15 The percentage of achievements should be greater.
01:19 Most of the projects that are in progress, the percentage of achievements is 40%.
01:23 I expect that by the end of the year it will reach 65% or 70%.
01:27 Therefore, the income will be automatically taken and the profits will be taken in the general income,
01:34 and this will positively affect the final profits and the operating profits.
01:40 Mr. Khaled, according to the financial standard, we still have the increase in expenses and the demand for financing.
01:49 How is the company dealing with these procedures and adjusting these standards for the financial standards of the company?
02:00 We are trying to reduce the loans, and I think that in the first quarter, or at the end of the year 2023,
02:10 the loans and the financing of the banks have decreased.
02:18 But this is a global interest rate that we cannot control.
02:22 Therefore, when we reverse this, the profits of the company will be better and the cost of the loan will be less.
02:32 This will positively affect the levels of profits.
02:37 You mentioned at the beginning of your speech the issue of taxes.
02:45 This is an important part.
02:47 Yes, and this is a part of the issue.
02:53 There are several commitments that have been made to the companies in general, through government initiatives,
03:00 especially the company's obligations in the management of money, money laundering, compliance, etc.
03:14 All of this is a big increase in the cost of employees.
03:20 The company has a big plan to settle in this field.
03:28 Forty civil servants have been reinstated during the past year, and the efforts continue.
03:37 There will be an increase in the number of employees and an increase in the cost.
03:43 But I think that the economic conditions in general are strong,
03:51 especially that today the Dubai Investment Association announced that the government of Dubai will expand at Al Maktoum airport
04:02 and start the construction of the infrastructure.
04:05 This will have a positive impact on the company from both sides, from the real estate side and from the industrial side.
04:15 Most of the building materials and the Al Maktoum airport are located 15 km away from the Dubai Investment Association.
04:27 This will benefit from several aspects, including the construction of the infrastructure,
04:40 and the increase in the rents in the Dubai Investment Association, especially in the residences of employees,
05:00 apartments, logistic centers, warehouses, and so on.
05:03 This area will see a big development, and I expect that the Dubai Investment Association's benefit from this development will be positive.
05:14 You have pointed out these expansions today, and in particular, the balance with the existing projects in the UAE.
05:23 The investment capital, the components, and the focus today on the development of the residential class,
05:34 and we are talking about the price increase, this will be a positive thing for you in the near future,
05:41 because today's reports indicate that the price increase will continue even over the long term for the real estate sector in general.
05:49 Yes, all the studies and economic schedules for real estate projects change every day.
05:56 We are talking about a project and an economic schedule that was about three months ago.
06:03 Today, drawings and so on are being submitted to the relevant parties to approve the construction of this project.
06:11 During the last three months, there has been an increase in prices, about 15-20%.
06:18 In terms of the prices we set at the beginning of the project, at the beginning of the study, we brought the economists.
06:24 I think this increase will continue.
06:27 Of course, the company is built on several sides and in several buildings,
06:32 and I expect that these prices will confirm the certainty of increasing prices, whether for developers, investors, or what is called end users.
06:44 Mr. Khaled, in your answer, you indicated that you have reduced your bank loans.
06:50 How much was the amount you reduced for these bank loans?
06:56 I think it was between 400 and 450 million.
07:02 Compared to last year?
07:04 I don't know the exact amount, but I think it was within this amount.
07:15 We are waiting for initiatives to reduce interest rates, which will positively affect the market.
07:24 As I mentioned, in 2023, the company may have paid more than 400 million dirhams in interest rates to banks on its own.
07:39 Therefore, the big attempt is to reduce some of the loans,
07:45 especially when we put a high-strategy for the issue of acquisitions and exports.
07:50 I think this will positively affect the income and operating profits.
07:59 At this point, you mentioned the issue of acquisitions and exports.
08:03 Is there a new future plan for Mr. Khaled regarding new acquisitions for the company and what it faces from exports?
08:12 Yes, of course, there are acquisitions and there is talk at a high level of the company's existence in acquisitions on some companies.
08:22 There is an export, of course, whether it is in the financial or real or industrial reserve.
08:30 There are plans that are proposed and there are assessments.
08:34 Now, the Executive Council is waiting to choose which companies are supposed to be exported through direct sales or through initial exports to some companies at a certain rate in the Dubai financial market.
08:50 How many companies are you expecting to export, Mr. Khaled?
08:54 It is clear that in the third quarter, there will be a certain assessment and I can talk about it at a high level.
09:04 Is there a study of the number of companies that are expected to be exported?
09:10 Yes, the study has been completed.
09:12 This study is about choosing which companies to go to first.
09:17 There are specific dates and this study has been completed.
09:24 I promised to do a study in early 2022.
09:27 I said that there are initiatives of the company to evaluate the existing reserve, which is about 38 companies.
09:36 I think that some of them are in the reserve for a while, some are exported.
09:42 I expect that today, the market conditions will allow us to move towards the issue of exports in the Dubai financial market.
09:52 Of course, the study will be carried out by the Executive Council to choose which companies are not supposed to be exported or registered in the market.
10:05 We hope that at least one company will be in the market before the end of 2024.
10:12 (Music)
10:24 Welcome back to our show.
10:26 We are back to talk about the closure of the UAE's embassy.
10:30 We welcome our guest, Wael Mahdi, the Director of the International Monetary Security Agency.
10:36 Welcome, Wael.
10:39 Let's talk about the closure of the meeting today and the pressure we have seen.
10:43 We have lost a new level for the Dubai financial market, 4100 points.
10:49 Today, can we talk more about the financial results with the knowledge that some sectors,
10:56 and we have talked about the consequences of the real estate construction before this talk,
11:02 and it came almost as expected and as we expected in terms of profits.
11:08 But the reaction of the share price has come as expected,
11:12 with the knowledge that the overall increase we have seen in the past period,
11:17 is it justified in your opinion?
11:22 Regarding the share price, I agree with you that it was exaggerated in some aspects,
11:30 because the results came very close to the expectations.
11:34 On the contrary, the construction results were better than expected and came up by 22%.
11:41 Let's agree that the results announced in 2023 were more likely to come better than this year's results.
11:55 Therefore, we see a clear decline in profits in some companies compared to the previous year.
12:00 Because what happened in 2023 was considered a drop in the financial results
12:06 and there was also a drop in financial distributions.
12:09 Therefore, when compared to the previous year, we find that there are clear differences or declines in most companies,
12:16 or at best, the companies that announced great results in 2023.
12:22 Therefore, the first quarter did not bring more profits or profit-making equations.
12:28 But in some companies, there were increases in profits.
12:31 As for the reaction of the share price, specifically the construction and development,
12:37 I think it does not agree with the results that were announced.
12:40 But on the other hand, I see that the geopolitical pressures in the region
12:47 are still being cast by their shadow on the psychology of investors, at least in my opinion.
12:53 There was some recovery in the past period, but with the increase in geopolitical tensions,
13:00 I think that the psychology of investors is heading towards exit.
13:05 There are news of financial results that increase this tension in some areas.
13:12 Also, the break in the technical points, like the Dubai market, has dropped to 4100.
13:22 The capital market is still close to 9000 points.
13:25 But the selling pressure is increasing with the break in these technical points,
13:30 which we must see the sales processes if they are not broken during the trading.
13:35 We have seen a quick trend in the markets, and specifically the trend we have seen in the trading levels in the two markets.
13:47 The selling pressure has affected the increasing of the trading rules in some areas, especially in the leading stocks.
13:56 For example, the trading was very close to 17 dirhams since two or more sessions.
14:02 Today, the share price has dropped to 40 dirhams.
14:06 There was a selling pressure on this share price.
14:10 Also, the first Abu Dhabi bank, and both shares have the same large amounts.
14:15 So, there was an increase in the trading sizes in the shadow of this trend.
14:21 This is for the capital market.
14:23 For the Dubai market, the trend was clear on the development and development of the business.
14:27 Also, both the leading banks, the UAE and the UAE, have a share price of 16.5 dirhams,
14:33 and only 20 fils since the session yesterday.
14:36 The Islamic Dubai Bank was also in a decline.
14:40 The selling pressure is increasing with the break in the technical points.
14:43 Also, I think that the financial results that were announced had a negative effect on some stocks,
14:52 but it was positive for some other stocks.
14:54 Thank you, Wael Mahdi. You are the managing director of the Financial Securities Insurance.
14:59 Thank you.
15:00 You are welcome.
15:28 In Kuwait, the profit of the Kuwaiti holding company, Kipco, increased 14% annually,
15:34 to 5,840,000 dinars in the first three months of the current year.
15:39 The operating will of the company increased 14% to about 352 million dinars
15:45 in the first quarter of the current year,
15:47 compared to more than 309 million dinars in the first quarter of 2023.
15:55 Today, the project is due to the decline,
15:58 and not to the decline with more than 1.5% of the market share under pressure.
16:03 In Kuwait, the profit of the Kuwaiti petrochemicals company, Bubyan,
16:07 increased 50% to 17,600,000 dinars in the financial year that ended on April 30, 2024.
16:15 In contrast, the profit of the company in the fourth quarter of its financial year,
16:19 Bubyan, increased 53% to 6,700,000 dinars.
16:25 Today, Bubyan Petrochemicals was on a strong profit this year,
16:31 up 15%.
16:33 The CEO of the Bahraini GFH Group, Hisham Al-Rayes,
16:38 pointed out in an interview with CNBC Arabia,
16:40 that the money that was collected through the boxes reached 250 million dollars in the first quarter.
16:47 There are approximately three main sectors,
16:49 investment, commercial banking, treasury, and direct investments.
16:59 In the first quarter, there was a strong contribution from investment
17:02 and a number of successful withdrawals,
17:05 and the inclusion of partners in partner companies,
17:09 which reflected in the profits that were supported by the bank's results in the first quarter.
17:15 In addition to the marketing of a group of boxes,
17:20 and fundraising for the boxes that were presented during the past period,
17:28 the amount of money reached 250 million dollars in the first quarter.
17:34 The withdrawal in the first quarter contributed strongly to the company's profits.
17:41 The group was listed in the Gulf Bank,
17:45 and the group received approximately 30 million dollars in profits.
17:53 Also, the inclusion of strategic partners in the commercial bank,
17:59 with 25% in ratings and marketing,
18:05 reflected well in the profits of the bank in the first quarter,
18:11 with approximately 30 million dollars.
18:13 We will meet you at the end of the segment "What happened in the market?"
18:21 You can follow us through social media and the website of CNBC Arabia.
18:27 Until next time, goodbye.
18:31 (Music)
18:44 [BLANK_AUDIO]