Deyaar Development : 2023 Integrated Annual Report

Integrated Annual Report 2023

TABLE OF CONTENTS

Deyaar: Where Possibilities Begin 5

About the Report: Where the Future Begins 6

Chairman's Message 10

CEO's Message 12

Milestones 18

DISCLAIMER:

Awards and Recognition 20

Chapter

ONE

Business Review: Making the Best Possible 28

Chapter

TWO

Environmental, Social, and Governance 40

Chapter

THREE

Governance Report 62

Chapter

FOUR

Financial Statement 94

The English version is a translation of the original in Arabic. In case of a discrepancy, the Arabic original will prevail.

Financial and Non- inancial Reporting

The report extends beyond inancial reporting and includes non- inancial performance, opportunities, risks, and outcomes associated with Deyaar's key stakeholders, which have an impact on its ability to create sustainable value.

Deyaar's Integrated Annual Report covers the company's activities, as well as all of its subsidiaries. Additionally, it includes our materiality matrix that encompasses Deyaar's framework and key stakeholder groups as a long-term focus for the organisation through which relevant ESG considerations are adapted according to the evolution of both internal business needs and the external environment.

Targeted Readers

This report is primarily intended to address the information requirements of long-term investors (our shareholders and prospective investors). We also present information relevant to the way we create value for other key stakeholders, including our sta , clients, regulators, and society.

Where the Future Begins

Forward-looking StatementsReporting Period

Operating Businesses

This report provides material information relating to our strategy and business model, operating context, stakeholder interests, performance, prospects, and governance, covering the year 1 January 2023 to 31 December 2023.

The report covers Deyaar's primary activities, business verticals, and key support areas.

This report may contain published inancial information, or information obtained from sources believed to be reliable, forward-looking statements based on numbers or estimates or assumptions that are subject to change including statements regarding our intent, belief, or current expectations with respect to Deyaar's businesses and operations, market conditions, results of operation and inancial condition, speci ic provisions, and risk management practices. Readers are cautioned not to place undue reliance on these forward-looking statements. Deyaar does not undertake any obligation to publicly release the result of any revisions to these forward-looking statements to re lect events or circumstances after the date hereof to re lect the occurrence of unanticipated events. While due care has been used in the preparation of forecast information, actual results may vary in a materially positive or negative manner. Forecasts and hypothetical examples are subject to uncertainty and contingencies outside Deyaar's control. Past performance is not a reliable indication of future performance.

06Deyaar Integrated Annual Report 2023

2023:

A Glance into Potential and Possibilities

In 2023, The Deyaar Group was placed on the list of the Top 100 Real Estate Brokers and Developers of the World. It was a recognition of the Group's commitment to create harmonious life spaces that make it possible for people to realise their potential without being at odds with nature.

In 21 years of its existence, Deyaar projects have come to be icons of luxury and comfort. The group's footprint spans Business Bay, Dubai Marina, Al Barsha, Dubai International Financial Centre (DIFC), Jumeirah Lake Towers, Dubai Production City, Dubai Silicon Oasis, Al Barsha South, Dubai Science Park, and Al Barsha Heights.

Deyaar is known for adding value to the built environment through a business portfolio that covers these verticals: Deyaar Development, property management, facilities management, community management, hospitality, and asset management. This breadth gives it the advantage of a more rounded perspective of the UAE's real estate industry and also raises its stature in the industry.

09

Chairman's

Message

Our commitment to delivering high-quality projects on time and within budget has garnered a strong reputation for reliability and excellence. This has led to increased customer trust and loyalty.

On behalf of the Board of Directors of Deyaar Development, I am pleased to present the Annual Integrated Report and the audited Financial Statements for Deyaar for the year ended 31 December 2023. It has been a transformative period for our company, as we have entered a new era of resilience and performance.

Financial Performance

Deyaar's strong inancial performance in 2023 is a testament to our business momentum and strategic endeavors. We have witnessed signi icant growth in revenues and net pro it, with revenues reaching AED 1,254 million, an increase of 56% compared to the previous year. Our pro it has also soared, with a remarkable increase of 206% to reach AED 441 million.

These results re lect our commitment to reinvest resources back into the business and capitalize on the opportunities presented in the market.

Accelerated Growth and Strategic Priorities

In 2023, Deyaar has entered a phase of accelerated growth, solidifying our position as one of the real estate players in the market. This achievement is a result of our strategic initiatives, strong market presence, and dedication to providing life experiences that meet the needs and the expectations. Our focus extends beyond just the

properties we develop- we prioritize investing in our projects and amenities to create exceptional living environments.

Our accelerated growth is driven by several factors. Firstly, our deep understanding of the market dynamics and trends allows us to identify and capitalize on opportunities. Furthermore, our commitment to delivering high-quality projects on time and within budget has garnered a strong reputation for reliability and excellence. This has led to increased customer trust and loyalty.

Moreover, our strong inancial position and access to capital have provided us with the necessary resources to fuel our growth. This has allowed us to make strategic investments in talent acquisition, and marketing, further strengthening our competitive advantage.

As we solidify our position in the real estate market, we remain committed to exceeding customer expectations, fostering long-term partnerships, and contributing to the development of sustainable communities. Our accelerated growth not only bene its our company but also creates opportunities for economic development, and social advancement.

To further enhance our services, we have made signi icant investments in technology and digital transformation in property management, community management, and facilities management.

By embracing technology, we aim to provide our

services to customers around the clock, ensuring convenience and e iciency. Through digital platforms and automated systems, we are able to streamline processes, improve communication, and provide real-time updates to our customers. This allows them to access information, submit requests, and receive support anytime, anywhere.

Acknowledgement

Our success in 2023 would not have been possible without

the support of our shareholders.

We extend our sincere appreciation for their continued trust and con idence in our company. At Deyaar, we irmly believe that it is our responsibility to dreams of our investors and customers. Every decision we make is guided by this larger purpose, ensuring that we contribute positively to society and embrace human possibilities for now and into the future.

create structures that shape the

11

While the previous years were instrumental in proving our performance resilience and establishing our position in the market, this year represents a fresh start and a new phase of growth and opportunity.

creating luxurious, high-quality living spaces that harmonize with the natural beauty of the surroundings. The demand for this project was overwhelming, and it was sold out in a record time.

Note of Gratitude

I would like to express my heartfelt gratitude to our dedicated employees, whose talent and hard work have played a pivotal role in the ongoing success of our company.

The challenges of the past have provided us with valuable lessons and insights that have shaped our strategies and strengthened our resolve. We have utilized these experiences to re ine our operations, enhance our capabilities, and position ourselves for success in the ever-evolving real estate industry.

The Year of Transformation

Building upon the foundation laid in this year, 2024 will be the year of transformation for our company. It is a year where we will embrace change, innovation, and growth.

I also extend my appreciation to the Board of Directors for their valuable guidance and support. Their strategic insights and leadership have been crucial in navigating the challenges and seizing the opportunities that have come our way.

A Year of Delivery

We understand that delivering on our commitments requires agility, perseverance, and adaptability.

While 2022 was a year of reset, during which we took decisive actions to turn the page on the past, and set a transformation for the future, 2023 is the year of delivery.

We understand that delivering on our commitments requires agility, perseverance, and adaptability. In 2024, we will prioritize the needs and preferences of our customers and strive to exceed their expectations at every touchpoint.

In 2024, we will prioritize the needs and preferences of our customers and strive to exceed their expectations at every touchpoint.

We have set ambitious targets and are determined to meet and exceed them. We have reinvigorated our teams, streamlined our processes, and optimized our resources to ensure that we can execute our plans e ectively and e iciently.

Our transformation will focus on our internal culture and capabilities. We will foster a culture of continuous learning and collaboration.

We have launched remarkable projects, including Marcasa, an award-winning seafront residential project located in Dubai Maritime City. Marcasa represents a milestone achievement for us, as it embodies our commitment to excellence, innovation, and delivering exceptional value to our customers. This project showcases our expertise in

We remain committed to creating structures that shape dreams and embracing human possibilities. With the support of our shareholders, the dedication of our employees, and the guidance of our Board of Directors, we are poised to navigate the future with con idence and achieve even greater milestones.

The Board devotes all e orts and utilizes its expertise to improve the Company's performance as per the shareholders objectives. Such objectives are converted into actions and decisions which are closely monitored by the Board along with the Executive Management in a manner that ensures sustainability, value realization and pro itability to all stakeholders.

Non-Executive / Non-Independent

Non-Executive / Non-Independent

Banking, Real Estate, Finance,

Finance, Banking and Investments

Investments and Information Technology

Bachelor of Electrical Engineering from University of

Bachelor of Science with majors in Economics and Mathematics from Al Ain University, United Arab Emirates

Southern California; Master of Science in Finance and

Banking from University of Missouri, Kansas City, United

States of America, Doctorate in Business Administration

from Warwick Business School-UK

Appointed since 2008 (15 years)

The Board has set a speci ic governance framework to ensure the e ectiveness of the Board members in ful illing their duties toward the main objectives and facilitate their positive contribution. The Board has delegated some tasks and responsibilities to the Committees where each committee submits reports and recommendations to the Board in a responsible and transparent manner.

Mr. Abdullah Al Hamli

H.E. Hamad Buamim

Appointed in 2022 (2 years)

Chairman

Chief Advisor to the Board of Directors

Vice Chairman

of Dubai Islamic Bank PJSC

Chairman of National General Insurance (NGI) PJSC; Board Member of Dubai Islamic Bank PJSC

Chairman of Emirates REIT and Chairman

of Al Tanmyah Services LLC

A. Statement of the current Board formation:

Chairman of Dubai Multi Commodities Centre Authority (DMCC) and National General Insurance PJSC(NGI); Board Member of Economic Zones World (EZW); Board Member of Awqaf Dubai & Dubai Islamic Bank; Board Member and Partner of Advanced Media Trading LLC (AMT); Board Member of UAE Banks Federation (UBF); Board Member of International Hotel Investment PLC in Malta, Chairman of the Executive Committee of the Company

According to Federal Law No. (2) of 2015 on the Commercial Companies and Article No. (15) of the Company's Articles of Association, the Board was elected y the General Assembly for a subsequent term of three years on 27 April 2022.

Non-Executive / Independent

Non-Executive / Non-Independent

Investments, Real Estate and Brokerage

Real Estate, Trading, Banking, Accounting and Finance

The Board consists of nine Non-Executive Board members. The Board members are classi ied as Non-Executive (Non-Independent) or Non-Executive (Independent) according to the de inition of each category by the Authority. Noting that the Chairman of the Board and the majority of the Directors are citizens of the United Arab Emirates.

Diploma in Commerce and Economics

Master of Science in Accounting from Catholic

from Dubai Higher College of

University of America; accredited CPA from Virginia

Technology

State of Council of Accountants

Appointed in 2022 (2 years)

Appointed since 2009 (14 years)

Mr. Rashid Al Dabboos

Board Member

Experiences, quali ications, memberships and positions of the Board members in other joint stock companies and/or governmental companies are listed below:

Chief Executive O icer of Al Sharif & Al Daboos Trading Co. LLC and Deira Capital LLC; Member of the Executive Committee of the Company, Chairman of Deyaar Facilities Management

Mr. Mohamed Al Sharif

Board Member

Chief of International Business & Real Estate Investments at Dubai Islamic Bank PJSC

Vice Chairman in Tamweel and Member of the Audit Committee and Risk Committee of the Company

Non-Executive / Non-Independent

Non-Executive / Non-Independent

Non-Executive / Non-Independent

Real Estate, Banking, Information Technology and Finance

Banking, Marketing, Real Estate, Financing and Investments

Real Estate and Banking

Bachelor of Science in Accounting

Management from Mustansiriyah

Doctorate and Master's in Marketing and Bachelor in Islamic Banking and Insurance at American University of London; and Certi ied Islamic Banker (CeIB)

Bachelor of Business Administration from the University of United Arab Emirates

Appointed since 2010 (13 years)

University in Baghdad

Appointed since 2009 (14 years)

Appointed since 2009 (14 years)

Mr. Mohammed Al Nahdi

Mr. Adnan Chilwan

Group Chief Executive O icer of Dubai Islamic Bank PJSC

Board Member

Board Member in Tanmyah LLC; Member of the NRC, Audit and Risk Committee of the Company

Board Member

Mr. Obaid Nasser Lootah

Member of the NRC and Executive Committee of the Company

Member of the Board of Tamweel; Associate Fellow Member in Islamic Finance Professionals Board; and Member of the Executive Committee of the Company

Board Member

Non-Executive / Independent

Non-Executive / Independent

Real Estate, Financing and Operations

Banking and Corporate Treasury Management

Bachelor of Business Administration from

Master's Degree in International Business at Wollongong

California State University, United States

University Dubai, United Arab Emirates

of America

Appointed since 2019 (4 years)

Appointed since 2016 (7 years)

Chairman of the Audit Committee and Risk Committee and

Mr. Yasser Bin Zayed

General Manager at Dubai O ice; Board

Ms. Maryam Bin Fares

Member of the NRC of the Company

Board Member

member in Falcon Holding Ltd.;

Board Member

Chairman of the NRC and Member of the

Audit Committee and Risk Committee of

the Company

Experience

Quali ications

Period served as a Board Member from the date of irst electionTheir membership andpositions in any other joint-stock companiesTheir positions in any other important regulatory, government or commercial companies

17

January 2023

Hands over Mesk (ahead of schedule) and Noor Residential Districts (on schedule) to the Midtown Community

Milestones

Launches Jannat, its inal residential district in Midtown Community

May 2023

• • Reports increase in Q1 2023 pro its, exceeding AED 56 million

• • Expands hospitality portfolio with the launch of the luxurious Millennium Talia Residences, at Al Furjan, Dubai

July 2023

November 2023

• • Delivers pro it of AED 237.5 million for YTD Sep'2023, up 130% YOY

• • Breaks ground for award-winning seafront project Mar Casa