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00:00I think that the operating profits were stronger and stronger than expected, and greater than
00:08the operating profits for the first quarter of 2023.
00:13The main change was in the adjustment of some expenditures and buildings in matters related
00:22to real estate.
00:24There was a reduction in the value of real estate in the first quarter of 2023.
00:32It was not available in the first quarter of 2024, but I expect that in the next four
00:41quarters, God willing, there will be an increase in the value of real estate for real estate
00:50companies.
00:51Do you expect that, Mr. Khaled, there will be a reduction in the value of real estate
00:58in the second quarter of 2023?
01:01No, no.
01:02Partially, in the second, third, and fourth quarters, God willing, before the end of
01:07the year, I expect that there will be some projects that have moved to, in order to
01:15reduce the value of real estate.
01:18I am sure that this will be a region that will be very difficult to deal with.
01:23But I expect that the level of the project will increase and progress and that the financial
01:30situation would improve.
01:31I am sure that financial and economic conditions of the region will improve.
01:34I expect that the final profit will be 40%.
01:37I expect that by the end of the year it will reach 65% or 70%.
01:42We are still talking about the increase in expenses and the desire to finance.
01:49Today, how does the company deal with these procedures and how do you manage these conditions
01:55for the company's financial standards?
01:58Of course, we are trying to reduce the loan, and I think that compared to the first quarter
02:07or at the end of the year, 2023, we have reduced the loan.
02:12We have reduced the loan and the expenses and the financing from the banks.
02:18But this is a global interest rate that we cannot control.
02:23So, as soon as we reverse the situation, the company's profits will be better and the
02:30cost of the loan will be less, so it will positively affect the profit levels.
02:38You mentioned at the beginning of your speech the issue of taxes.
02:45This is an important part.
02:47It is true.
02:48It is growing and increasing with the increase in expenses.
02:51There are several commitments that have been made to the companies that contribute to the
02:56financial system.
02:57For example, through government initiatives, especially the companies' obligations to
03:04manage the money, to wash the money, to comply, and so on.
03:14All of this is true.
03:16There is a big increase in the cost of the employees.
03:21Of course, the company has a big investment plan in this area.
03:28It has 40 civil employees during the past year and this year, and the efforts continue.
03:37So, there will be an increase in the number of employees and an increase in the cost.
03:45I think that the economic conditions in general are strong, especially that today the Dubai
03:55Assembly announced the expansion of Dubai's government at Al Maktoum airport and the
04:03construction of infrastructure.
04:05This will have a big positive impact on the company from both sides, from the real estate
04:12sector, and also from the industrial companies, which are mostly building materials and
04:18Al Maktoum airport, which is about 15 km away from the Dubai Assembly.
04:26So, there will be benefits in several aspects, including real estate, building materials,
04:41and there are increases in the rents in the Dubai Assembly, especially in employees'
04:47homes, workers' homes, apartments, logistic centers, warehouses, and so on.
04:58So, all of this has a positive impact.
05:00I expect that over the next 8 to 10 years, this area will see a big growth, and I expect
05:07that the benefit of the Dubai Investment Group from this development will be positive to a
05:13large extent.
05:14Okay.
05:15You may have pointed out, Mr. Khaled, these expansions today, and specifically the balance
05:19with the existing projects today in the UAE.
05:23The investment portfolio, the components, I mean, the direction today for the Dubai
05:29Investment Company towards the segments, or the development of the residential segments
05:33in the UAE, and the big focus with it.
05:35We are talking about rising prices.
05:37This will also be a positive thing for you in the near future, because today's reports
05:42indicate that the prices will continue even over the long term for the real estate sector
05:47in general.
05:50Yes, all studies and economic schedules for real estate projects change every day.
05:57We are talking about a project and an economic schedule about three months ago.
06:03Today, drawings and so on are being submitted to the relevant authorities to approve the
06:09establishment of this project.
06:11Over the past three months, there has been an increase in prices, almost 15 to 20 percent,
06:17compared to the prices that we set at the beginning of the project, at the beginning
06:21of the economic schedule study.
06:24I think this increase will continue.
06:27Of course, the company is built on several sides and in several Emirates, and I expect
06:32that these prices confirm the certainty of increasing prices, whether for the developer,
06:40the investor, or the so-called end-user.
06:45Mr. Khaled, in your answer, you indicated that you have reduced your expenses from banks.
06:50How much did you reduce for these bank loans?
06:56I think it is around 400 to 450 million.
07:01Compared to last year?
07:03Of course, it is running.
07:05I don't know the exact amount, but I expect it is within this amount.
07:15We are waiting for initiatives to reduce interest rates, which will positively affect the market.
07:24As I mentioned, in 2023, the company may have paid more than 400 million dinars
07:33in bank benefits on its assets.
07:40Therefore, the big attempt is to reduce some of the debts,
07:45especially if we put a high-strategic plan for acquisitions and withdrawals.
07:51I think this will have a positive impact on income and operating profits.
08:00At this point, you pointed out the issue of acquisitions and withdrawals.
08:04Mr. Khaled, what about acquisitions and withdrawals?
08:13Yes, of course, there are acquisitions and withdrawals.
08:23There are withdrawals in the financial reserve, the real estate reserve,
08:29or the industrial reserve.
08:31There are plans, and they have been evaluated.
08:35Now, the Executive Council is waiting to choose which companies
08:40to withdraw through direct sales or through initial issuance
08:46to certain companies in the Dubai market.
08:50How many companies do you expect to withdraw from, Mr. Khaled?
08:54It will be clear in the third quarter,
08:59and I will be able to talk about it in detail.
09:04Is there a study of the number of companies you expect to withdraw from?
09:11Yes, there is a study.
09:13This study is about choosing which companies to withdraw from.
09:18There are specific dates.
09:21This study was carried out.
09:24At the beginning of 2023, I said that there were initiatives
09:28by the company to evaluate the reserve,
09:32which has about 38 companies.
09:36I think some of these companies have been in the reserve for a long time.
09:40They are profitable companies.
09:42I expect that the situation in the market today
09:46will allow us to move to the issue of issuance in the Dubai financial market.
09:52Of course, the study will be carried out by the Executive Council
09:57to choose which companies are not supposed to go to the market
10:03or register in the market.
10:05We hope to have at least one company before the end of 2024.