UDC Chairman Turki bin Mohammed Al Khater (left) and UDC President and Chief Executive Officer and Member of The Board Ibrahim Jassim Al Othman
Doha: United Development Company (UDC), a leading Qatari public shareholding company and the master developer of The Pearl and Gewan Islands, held its ordinary and extraordinary electronic general assembly meetings which were chaired by UDC Chairman Turki bin Mohammed Al Khater.
During the ordinary meeting, the Assembly approved the distribution of cash dividends of QR194,747m, equivalent to 5.5 percent of share par value, as well as UDC’s financial statements for the year ending December 31, 2021 along with the appointment of ‘Ernst & Young’ as the Company’s external auditor for 2022.
With regards to UDC’s new Board of Directors, three seats were allocated to the General Retirement & Social Insurance Authority and the Assembly further elected new Board Members for the next 3 years’ term (from 2022 to 2024) as follows: Ali Hussein Alfardan, Sheikh Faisal bin Fahad Al Thani, Ibrahim Jassim Al Othman, Abdullaziz Mohammed Al-Mana, Abdulrahman Saad Al Shathri, Hassan Abdulla Al-Hammadi. For its part, the extraordinary general assembly meeting approved the proposed amendment of the Company’s Articles of Association to comply with Company Law Amendments mentioned in Law No (8) for the year 2021.
Presenting UDC’s 2021 financial results, Turki bin Mohammed Al Khater, said: “The Company has achieved a net profit of QR356m and total revenues of QR2bn. The net profit attributable to equity shareholders stood at QR326m with basic earnings per share of QR .092”.
Al Khater added: “Our unwavering commitment to project delivery and future project developments have underlined our sustainable financial results for 2021. In line with our business plan to create new opportunities and revenue sources over the long term, UDC increased its ownership in Qatar Cool to 91.06 percent which enhances our investment portfolio, in addition to our ongoing development activities at The Pearl and Gewan Islands which cover vital residential and commercial projects.”
Al Khater further said: “These developments deliver more than just premium residential properties, but also malls, hospitality and entertainment experiences as well as public services and facilities to further complement our assets and create integrated communities that attract a growing number of investors, residents and visitors and spearhead UDC’s growth year on year.”
Concluding his statement, Al Khater said: “Thus, the proposed dividends for the year 2021 are in line with value of the real-estate projects that the Company is developing and cash out flow that will be spent on these projects during the year 2022 in accordance with the UDC’s five-year business plan.”
Ibrahim Jassim Al Othman, UDC President and Chief Executive Officer and Member of The Board, said: “2021 marked another successful year where we completed outstanding new projects at The Pearl Island, most notably The Pearl Commercial Showrooms, Al Mutahidah Towers and Giardino Gardens Compound, and made significant progress on the development of Gewan Island, as well as introduced vital new services and facilities to our community. These achievements therefore will serve as our stepping stones to a ‘landmark’ 2022”.
Al Othman added: “In 2021, residential occupancy at The Pearl Island reached an all-time high with 52,000 residents and 34 million visitors. This stability in occupancy rates has therefore contributed to achieving recurring revenues from residential and retail leasing, in addition to the sale of residential units and plots in 2021”.
Al Othman indicated that retail leasing witnessed an increase of 58 percent in new leased retail space in 2021 compared to 2020 and the opening of 53 new retail brands at The Pearl Island, a 90 percent increase from 2020. In Gewan Island, UDC launched retail properties for lease and succeeded in leasing 3,000 sqm covering 19 brands.
Residential occupancy further thrived with 316 new rental contracts signed for UDC properties including 37 villas in the new Giardino Gardens Compound. A lease contract was also signed with the Supreme Committee for Delivery & Legacy for 318 residential units to be used in the 2022 FIFA World Cup.
UDC further succeeded in achieving returns from the sale of residential properties including 110 units in Al Mutahidah Towers at The Pearl Island as well as 14 villa plots and 36 apartments in Crystal Residence at Gewan Island.
Al-Othman pointed out that UDC is committed to its strategy of creating more investment opportunities, building on its achievements, and reducing risks by taking advantage of the commercial and investment opportunities offered by The Pearl and Gewan Islands.
In this context, UDC achieved major strides in the development of Gewan Island in 2021, reaching an overall 52 percent, with the completion of marine works as well as all Gewan Bridge construction works. Substantial progress of 61 percent was also made on Crystal Residence buildings, simultaneously with the achievement of enabling works related to Corinthia Gewan Island Qatar Hotel and Beach Club and construction commencement of private villas.
UDC has also accelerated development works all over The Pearl Island, and as such Al Mutahidah Towers have been fully completed and handed over to owners and residents.
In the past year, UDC has equally made remarkable progress in developing Giardino Gardens, as The Pearl Island’s first gated villa compound, with the completion of 60 out of 80 villas and is also on schedule with the development of its three Floresta Garden compounds comprising 115 villas, where construction works are being completed. The Pearl International Hospital is set to open in the fourth quarter of 2022.
Highlighting the Company’s plans and prospects for 2022, Al Othman said: “The fundamental development phases achieved in 2021 through diligent and disciplined execution, will enable UDC to pursue its growth journey in 2022, and achieve excellence in project delivery.”
