Managing Director’s Report
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I would like to begin by expressing my sincere gratitude to H.H. Sheikh Khalifa Bin Zayed Al Nahyan, the President of the UAE, for his ongoing leadership and support. My grateful thanks are also due to H.H. Sheikh Mohammed Bin Zayed Al Nahyan, the Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, for his guidance and encouragement. My special appreciation is due to our Chairman, H.H. Sheikh Tahnoon Bin Zayed Al Nahyan, for the wise direction and the strategies he has provided to protect Reem Investments and its shareholders’ interests from the global economic difficulties that have emerged during the past years.With turbulence in European financial markets during 2010 and the shortage of confidence in the banking system and concern over sovereign debt, Reem Investments has applied a conservative policy to achieve favourable results and to promote investor confidence. This was underlined by our performance in the real estate sector where Reem Developers established a niche as a lifestyle master developer. We achieved this by focusing on healthy lifestyle themes in our developments, making the Dome at Rawdhat Abu Dhabi a beacon of our commitment to establish a vital sporting community in the region.This initiative was given fresh momentum in August 2010, when Reem Investments partnered with Manchester United Soccer Schools to run exclusive programmes for children and teenagers for two years. The first programme, launched at the venue two months later, attracted 225 children from 33 nationalities. By December, the youngsters had the benefit of a new Clubhouse and an additional full-size football pitch.The success of the Dome at Rawdhat Abu Dhabi is highlighted by the fact that in 2010 the indoor and outdoor pitches were booked for 7,613 hours, and the facility currently hosts more than 12,000 footballers and their families each month. For 2011, we hope to build a similar facility at Najmat Abu Dhabi, Reem Island, to cater to the lifestyle needs of those living and working on the island.
In 2010, Reem Developers also gave priority to its infrastructure works in Rawdhat and Najmat Abu Dhabi. In April, we successfully completed the infrastructure works in Rawdhat. By the end of the year, we had completed 90% of Phase 1 infrastructure works at Najmat Abu Dhabi and had also started Phase 2 infrastructure works, which included the beaches at Najmat. As a result of the successful execution of these projects and infrastructure, we issued 63 Design NOCs, out of which nine had started construction in Najmat Abu Dhabi. In Rawdhat Abu Dhabi, we issued 20 Design NOCs out of which five had started construction. Furthermore, we collected AED 609 million in payments from clients who had secured plots in our projects. On the investment front, we maintained a conservative approach, resisting opportunities presented by companies and developers who continued to expect unrealistic prices. In 2010, the investment team contributed AED 49.6 million to the group income through the sale and realization of its investments. Moving forward in 2011, the investment team will examine and exploit new areas such as healthcare, education, water and waste management, food and agriculture, and logistics in order to diversify its income streams. As in previous years, Reem Investments ensured that our operational efficiencies were maximized while costs were kept under control. Using a team of 40 staff to manage our wide-ranging real estate and investment portfolios, we kept general and administrative expenses 12.8% below budget. H.E. Abdulhamid Saeed Managing Director |