Barwa Real Estate, which will continue to invest in development opportunities which will add further diversity to its portfolio, has prepared a multi-axes strategic plan as part of efforts to enhance its capability to generate free cash flows.
"Since 2023 will be an exceptional year, we have prepared a clear and carefully crafted strategic plan that outlines all the broad lines of action for us to follow. Accordingly, we will be working on several axes during 2023, which represent the fundamental pillars of the company’s directions during the next phase," HE Salah bin Ghanem al-Ali, chairman of Barwa, told shareholders at the annual general assembly meeting, which approved the 2022 results and the 17.5% cash dividend.
Elaborating on the multi-axes strategy, he said these consist of increasing revenues through leasing new real estate projects such as Madinatna and Argentinian Neighborhood; as well as conducting feasibility studies for many of its existing lands, either through sale or development for sale or development for lease.
In addition, the company would focus on cost optimisation, improving the brand image, and enhancing the efficiency of the institutional system, he said.
The company's operational portfolio is characterised by diversity, which enables it to confront any challenges facing the real estate market, according to him.
The portfolio now has more than 14,000 residential units and over 55,000 worker accommodation rooms, while the area of commercial shops, exhibitions, and offices has exceeded 330,000sq m, and more than 448,000sq m for workshops and warehouses.
Highlighting that one of the company's main goals is to develop a balanced real estate portfolio that faces the risks of market fluctuations, meets its needs, supports its development plans, and considers the corporate social responsibility; al-Ali said at the same time, this realty portfolio must add value to the company's assets, enhance their returns, and contribute to increasing sustainable returns for shareholders.
Barwa Real Estate has also made significant progress in developing Phase 3 of the Madinat Al Mawater project, which extends over an area of approximately 340,000sq m.
The group has completed all construction works for a centre dedicated to car services, as the first part of this phase.
The completion rate for the second part of Phase 3 has reached about 67%, and construction works for this phase will be completed during the third quarter of next year, he said.
The ordinary general assembly elected the seven-member board. They are Abdulla Hamad al-Atiyya, Faisal Abdulwahid Ali al-Hamadi, Ahmed Mohamed Tayeb, Nasser Sultan al-Hemaidi, Ahmed Khalid Abd Alaziz al-Ghanem al-Maadeed, Abdulrahman Mohamed al-Khayarin and Hamad Dashen Moeed al-Qahtani.