Chairman’s Message

H.H. Sh Tahnoon Bin Zayed Al Nahyan Dear Shareholders,

On behalf of the Board of Directors of Reem Investments, I am pleased to present the Annual Report and audited statements for the year ended 31st December 2016.
2016 which was one of the most challenging years that impacted the global markets, began with the USA Federal Reserve’s decision to raise interest rates for the first time in almost ten years, followed by United Kingdom referendum mid of the year to leave the European Union and ended with the United States presidential election.
Although the drop in the oil prices had a material impact on the GCC economies, the region as a whole managed well. Out of all the GCC nations, UAE economy was the most resilient economy due to its diversified economic base where the services and industries were the major contributor to the GDP. Moreover, UAE government continuing with its prudent fiscal measures, announced mergers of government held institutions which, besides bringing cost synergies would also strengthen & expand the scale of operations for better global competiveness, thereby, benefitting the local economy as a whole. The year ended on a positive note with the successful agreement reached within OPEC and group of other producers to limit production, which stabilized the oil prices.
Against a backdrop of global and regional uncertainties, the real estate sector in the UAE witnessed sluggish demand levels in 2016. However, the outlook for the sector remains positive in the long-term on the back of the government’s commitment to infrastructure spending and development projects, and the UAE’s safe haven status making it a favorable destination to live in, invest and visit.
Working towards the goal of building a recurring revenue stream, the Company commenced construction on residential projects in Najmat and Rawdhat, which are expected to complete by 2018. The Company’s exclusive Nalaya villa community at Najmat has already been offered for leasing in the second half of 2016.
I am pleased to announce a profit of AED 216 million for the financial year ended 31 December 2016, representing an EPS of AED 2.79. As at 31st December 2016, based on the Net Assets of AED 5.29 billion the book value stood at AED 68 per share, reflecting an increase of nearly 4% over 2015.
In our constant endeavor to maximize our shareholders’ value, the Board of Directors’ is proposing a 14% cash dividend distribution to the shareholders, an increase of 16.67% over 2015 dividend payout based on the capital of AED 777.5 million
I would like to express my sincere gratitude to H.H. Sheikh Khalifa Bin Zayed Al Nahyan, President of the UAE, for his ongoing support and leadership. My sincere appreciation is also due to H.H. Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President, Prime Minister of the UAE and the Ruler of Dubai and H.H. Sheikh Mohammad Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, for their guidance and encouragement.
Please allow me also to convey my deepest appreciation to our shareholders for their continued confidence in us. I am also grateful to the Board of Directors for their invaluable inputs and pivotal role they have played in steering the Company towards continued growth in a challenging year. I would also like to commend the Management and the staff for their dedication and commitment.

H.H. Sh Tahnoon Bin Zayed Al Nahyan
Chairman

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