Media Centre

Emaar the Economic City has announced that the company held its extraordinary general assembly meeting in the By La Sun Hotel in king Abdullah Economic City on 24-04-2017 corresponding to 27-07-1438 at 18:30.Where the percentage of attendance 62.69% all resolutions of the meeting are as following:

1. Approval over the Board of Director’s Report for the financial year ending on December 31, 2016 A.D.
2. Approval over the Company’s Financial Statements for the financial year ending on December 31, 2016 A.D.
3. Approval over the Financial Auditor’s report for the financial year ending on December 31, 2016 A.D.
4. Approval over related parties transactions and contracts residing in the renewal of the lease contract of offices located in the industrial valley area, along with the Ports Development Company, the Board members of which are the Group’s Board Member H.E. the Engineer Khalid Al-Molhem, the CEO and MD Member Mr. Fahd Al-Rasheed, and the Deputy CEO Mr. Ahmad Linjawi, as the value of those contracts and transactions amounts to 850 Riyals per meter. This is in addition to the renewal of the relevant license for the coming year, knowing that the value of the said transactions for the previous year amounted to 2,106,320 SAR (Two Million One Hundred and Six Thousand, Three Hundred and Twenty), to include the lease amount, the services invoices, the facility and the recovered insurance amount for all rents.
5. Approval over related parties transactions and contracts residing in the continuance of a developmental lease contract for a period of 25 years starting from September 2014 A.D. of an industrial plot in the industrial valley, the area of which is 106,100 square meter, along with Dallah Trading Group that is managed by Mr. Abdullah Saleh Kamel the Vice Chairman. This is in addition to the renewal of the relevant license for the coming year, knowing that the value of the said transactions for the previous year amounted to 1,167,100 SAR (One Million One Hundred Sixty Seven Thousand and One Hundred), to include the lease amount and the services invoices.
6. Approval over related parties transactions and contracts residing in the continuance of a lease contract for a period of 20 years starting from January 2012 A.D. of an industrial plot for the Saudi Airlines Catering Company, the Board Members of which are each of Mr. Fahd bin Abdulmohsin Al-Rasheed and Mr. Abdullah bin Jameel Taibah. This is in addition to the renewal of the relevant license for the coming year, knowing that the value of the said transactions for the previous year amounted to 1,047,603 SAR (One Million and Forty Seven Thousand Six Hundred and Three), as lease and service fees as well as benefits invoices.
7. Approval over related parties transactions and contracts residing in the continuance of a lease contract for a period of 20 years starting from September 2013 A.D. of an industrial plot for Petromin Oil Company, the Board Members of which are Mr. Fahd Abdulmohsin Al-Rasheed. This is in addition to the renewal of the relevant license for the coming year, knowing that the value of the said transactions for the previous year amounted to 1,351,777 SAR (One Million Three Hundred Fifty One Thousand Seven Hundred and Seventy Seven), as lease and service fees. The Contract has been signed two years ago with the Red Sea Company and has been transferred during the year 2016 A.D., to Petromin Oil Company.
8. Approval over related parties transactions and contracts residing in the continuance of a lease contract for a period of 15 years starting from September 2014 A.D. of an industrial plot for the Namariq Company, in which the Board Member Mr. Mohammed bin Yusuf Naghi owns an 80% share. This is in addition to the renewal of the relevant license for the coming year, knowing that the value of the said transactions for the previous year amounted to 1,374,000 SAR (One Million Three Hundred and Seventy Four Thousand), as lease and service fees, as well as benefits invoices.
9. Approval over related parties transactions and contracts residing in the sale contract of an industrial plot in the year 2012 A.D. for the CIGALAH Trading Company, a company owned by the brother of Emaar’s Board Member Mr. Mohammed Yusuf Naghi, for an amount of 25,000,000 SAR (Twenty Five Million). This is in addition to the renewal of the relevant license for the coming year for services provision, knowing that the value of the said transactions for the previous year amounted to 31,250 SAR (Thirty One Thousand Two Hundred and Fifty) as service fees.
10. Approval over related parties transactions and contracts residing in the sale contract of an industrial plot in the year 2012 A.D. for the CIGALAH Farma Warehouse – a branch of CIHALAH Trading Company, owned by the brother of Emaar’s Board Member Mr. Mohammed Yusuf Naghi, for an amount of 14,605,000 SAR (Fourteen Million Six Hundred and Five Thousand). This is in addition to the renewal of the relevant license for the coming year for services provision, knowing that the value of the said transactions for the previous year amounted to 2,161,850 SAR (Two Million One Hundred Sixty One Thousand Eight Hundred and Fifty) in return for the delivery of services based on the contract.
11. Approval over related parties transactions and contracts residing in a lease contract for a period of 20 years starting from February 2016 A.D. of an industrial plot for the Sakala Farma for medicines – a branch of CIGALAH Trading Company, owned by the brother of Emaar’s Board Member Mr. Mohammed Yusuf Naghi. This is in addition to the renewal of the relevant license for the coming year, knowing that the value of the said transactions for the previous year amounted to 464,769 SAR (Four Hundred Sixty Four Thousand Seven Hundred Sixty Nine), to include the lease and service fees.
12. Approval over related parties transactions residing in the amendment of the value amounting to 350,497 SAR (Three Hundred Fifty Thousand Four Hundred and Ninety Seven) for construction and electrical services contract with Naghi Marine Co, the Board Member of which is Mr. Mohammed Yusuf Naghi. This is in addition to the renewal of the relevant license for the coming year, knowing that the value of the said transactions for the previous year amounted to 2,094,772 SAR (Two Million Ninety Four Thousand Seven Hundred and Seventy Two) in return for the execution of works in accordance with the contract.
13. Approval over related parties transactions and contracts residing in a construction and electrical services contract starting from November 2015 A.D., and the amendment of the contract in September 2016 A.D. with Naghi Marine Co, the Board Member of which is Mr. Mohammed Yusuf Naghi, as the total value of the contract has reached 975,960 SAR (Nine Hundred Seventy Five Thousand Nine Hundred and Sixty). This is in addition to the renewal of the relevant license for the coming year.
14. Approval over related parties transactions and contracts residing in a contract for the execution of infrastructure works inside Al Murooj Plan (GC5) starting from October 2016 A.D., amounting to (32,500,000 SAR) (Thirty Two Million and Five Hundred Thousand) with an amendment to the contract amounting to (2,597,125 SAR) (Two Million Five Hundred and Ninety Seven Thousand One Hundred and Twenty Five), with ARSAMCO, in which the Board Member Mr. Mohammed bin Yusuf Naghi owns an 80% share. This is in addition to the renewal of the relevant license for the coming year, knowing that the value of the said transactions for the previous year amounted to (3,250,000 SAR) (Three Million Two Hundred and Fifty Thousand), in return for a payment, in accordance with the terms of the contract.
15. Approval over related parties transactions and contracts residing in a contract for the execution of infrastructure works inside Al Murooj Plan (TH3) starting from January 2017 A.D., amounting to 18,800,000 SAR (Eighteen Million and Eight Hundred Thousand) with ARSAMCO, in which the Board Member Mr. Mohammed bin Yusuf Naghi owns an 80% share. This is in addition to the renewal of the relevant license for the coming year.
16. Approval over related parties transactions and contracts residing in a prior license for the coming year to purchase raw material from the Ports Development Company the Board Members of which are each of the Group’s Board Member H.E. the Engineer Khalid Al-Molhem, the CEO and MD Member H.E. Mr. Fahd Al-Rasheed, and the Deputy CEO Mr. Ahmad Linjawi, at a price of ten SAR per cubic meter. These materials are used in cutting and filling works in King Abdullah Economic City, in addition to the requirements of rain and floods drainage. Also, the company expects to purchase around 10 cubic meters of these materials during the two coming years.
17. Approval over related parties transactions and contracts residing in a consulting services contract based on the demand between the Company and Turner Engineering Consultancy, in which Emaar Properties company, the Chairman of the Board who is H.E. Mr. Mohammed Alabbar, owns a big share. This is in addition to the renewal of the relevant license for the coming year, knowing that the value of the said transactions for the previous year amounted to 27,717,198 SAR (Twenty Seven Million Seven Hundred Seventeen Thousand One Hundred and Ninety Eight) in return for services invoices for the previous years.
18. Approval over related parties transactions and contracts residing in the supply of TV screens from Yusuf Naghi United Company in which the Board Member Mr. Mohammed bin Yusuf Naghi owns a 20% share. This is in addition to the renewal of the relevant license for the coming year, knowing that the value of the said transactions for the previous year amounted to 114,483 SAR (One Hundred Fourteen Thousand Four Hundred and Eighty Three) against the supply of TV screens in return for the prevailing commercial prices.
19. Approval over related parties transactions and contracts residing in the continuance of a lease contract for free of a commercial shop the area of which is 925 square meter for a period of 5 years starting from February 2013 A.D. for SABB bank, the Board Member of which is Emaar Economic City’s Board Member H.E. The Engineer Khalid bin Abdullah Al-Molhem. This is in addition to the renewal of the relevant license for the coming year, knowing that the value of the said transactions for the previous year amounted to 391,580 SAR (Three Hundred Ninety One Thousand Five Hundred and Eighty), as service fees.
20. Approval over related parties transactions and contracts residing in the continuance of a lease contract of a commercial shop the area of which is 146 square meter in Beach building (1) for a period of 5 years starting from April 2013 A.D. for Lina Food Snack Company, in which First Degree Relatives of the Board Member H.E. The Engineer Khalid bin Abdullah Al-Molhem own an 80% share. This is in addition to the renewal of the relevant license for the coming year, knowing that the value of the said transactions amounted to 99,000 SAR (Ninety Nine Thousand), as lease and service fees.
21. Approval over related parties transactions and contracts residing in a management and services contract for a period of 10 years starting from January 2013 A.D. with Al Khozama Management Company, the Board Member of which is Mr. Abdulrahman Alrowaita. This is in addition to the renewal of the relevant license for the coming year, knowing that the value of the said transactions amounted to 2,145,996 SAR (Two Million One Hundred Forty Five and Nine Hundred Ninety Six), in return for a percentage from the revenues as administrative and marketing fees and a percentage from the operating profits as motivational returns in accordance with the terms of the contract.
22. Approval over related parties transactions and contracts residing in a management and services contract for a period of five years starting from November 2016 A.D. through one of Emaar, the Economic City’s subsidiaries (Real Estate Economic Management and Operation Co Ltd), in order to operate the hotel apartments (The Views) with Al Khozama Management Company, the Board Member of which is Mr. Abdulrahman Alrowaita. This is in addition to the renewal of the relevant license for the coming year, in return for a percentage from the revenues as administrative and marketing fees and a percentage from the operating profits as motivational returns.
23. Approval over related parties transactions and contracts residing in a prior license for the coming year in order to continue to provide the services of Halwani Brothers Co., the Board Member of which is Mr. Abdulrahman Alrowaita, and which has previously purchased an industrial plot in the year 2013 A.D., as the he value of the said transactions for the previous year amounted to 37,145 SAR (Thirty Seven Thousand One Hundred and Forty Five), as service fees in accordance with the contract.
24. Approval over related parties transactions and contracts residing in the continuance of a lease contract for commercial offices for a period of 5 years starting from November 2014 A.D. with the Okaz Press and Publishing Establishment, the Chairman of the Board of which is Mr. Abdullah Saleh Kamel. This is in addition to the renewal of the relevant license for the coming year, knowing that the value of the said transactions amounted to 426,600 SAR (Four Hundred Twenty Six Thousand and Six Hundred), as rental fees, service fees and recovered insurance amount.

25. Approval over the selection of an External Auditor Earnest &young from among the candidates by the Audit Committee, in order to review the financial statements of the financial year 2017 A.D., and the determination of his fees.

26. Approval over the acquittal of the Board Members for the financial year ending on December 31, 2016 A.D.

27. Approval over the amendment of the Company’s Articles of Association, in compliance with the new corporate law and Form No. (4) Issued by virtue of the Ministerial Decision No. (18379) dated 01/06/1437AH .

28. Approval over the formation of the Audit Committee and the adoption of the update to the selection rules of its members in addition to the determination of its tasks, its action controls and the remunerations of its members for the current session (2017 A.D. – 2020 A.D.) knowing that the candidates are H.E. the Engineer Khalid Al-Molhem (an independent Board Member), Dr. Faisal Mubarak (an independent Board Member), Mr. Alaa Jabri (External Member with an experience in the financial and accounting affairs).

29. Approval over the disbursement of an amount of (3,462,466) (Three Million Four Hundred Sixty Two Thousand Four Hundred and Sixty Six Saudi Riyals) as rewards and compensations to the Board members in return for the membership and management in the Company’s Board of Directors for the period from January 1, 2016 A.D. until December 31, 2016 A.D.

God bless.