Operating Profit Grows 3.6% in the First Half of 2016

Kuwait - August 5, 2016

United Real Estate Company (URC)(KSE: URC), Kuwait's leading real estate development and property services company, announced its results for the first half of 2016, recording a revenues growth of 11% compared to the same period last year, exceeding KD 32 million for the six-month period. Operating profit also rose by 3.6%.

URC announced that thecompany's net profit for the six-month period was KD 3 million with earnings per share of 2.8 fils, compared to a net profit of KD 3.65 million in the same period last year. The change was attributed toa slight drop in non-operational profits. In the same period total assets rose 2.8% to KD 570 million.

Despite challenging market conditions, URC's performancefor the period was in line with its targets. URCentered 2016 strongly and have remained committed to implementing long-term strategic objectives, posting solid returns and establishing the catalyst for future growth.The company will continue to deliver creative projects that drive value for customers and yield steady returns for our valued investors.

Mr. Ahmad Kasem, Acting Chief Executive Officer, URC, said: "In the first half of 2016 we have completed the master plans for a number of new projects in Egypt and Morocco. These projects will spur the company's overall growth and profitability for the future, and help to achieve our long-term business and strategic goals."

Mr. Kasem stated that there were a number of opportunities emerging across the GCC from the current market conditions and the company has been positioning itself to take advantage of them. We have focused on implementing greater efficiency in our operations and aligned our project budgets to strategic long term sustainability across different market conditions. "URC's diverse portfolio across retail, commercial, leisure, integrated mixed use resorts and residential developments and services has positioned the company to achieve balanced growth in the GCC and MENA region, in addition to strengthening its assets in Kuwait."

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About URC
United Real Estate Company (URC) is one of the MENA region's leading  real estate developers, with total assets of KD 569.5 million (US$ 1.89 Billion) as of June 30, 2016. Headquartered in Kuwait, URC was founded in 1973 and was listed on the Kuwait Stock Exchange in 1984. 

URC primarily operates in the Middle East and North Africa (MENA) region through a number of operational subsidiaries and investments arms.  The company's portfolio includes retail complexes, hotels, resorts, residential buildings, high rise office buildings, as well as mixed use developments. Operational assets include, KIPCO Tower, Marina Hotel and Marina Mall in Kuwait as well as Salalah Gardens Mall & Residences in Oman. Regionally, URC is developing Abdali Mall in Jordan, Raouche View at 1090 in Lebanon, Aswar Residences in Egypt, Junoot Resort in Oman and Assoufid in Morocco.

URC's majority shareholder is KIPCO Group, one of the biggest holding companies in the Middle East and North Africa, with consolidated assets of US$ 33 billion as at 30 June 2016. The Group has significant ownership interests in over 60 companies operating across 24 countries. The group's main business sectors are financial services, media, real estate and manufacturing. Through its core companies, subsidiaries and affiliates, KIPCO also has interests in the education and medical sectors.

Further Information
Nora Zehery        
Assistant Vice President - Corporate Communications
United Real Estate Company
n.zehery@urc.com.kw
T +965 2295 3500 Ext. 3672

© Press Release 2016