on the activitiesand achievementsof the company

for the perioud from 1/1/2016 to 31/12/2016

1 6

A N N U A L R E P O R T

COMPLETED PROJECTS

SERVICE & PUBLIC UTILITY PROJECTS

Attameer International CarAuction

Commercial Administrative Building

Attameer Meat and Vegetable Market

Cold And Freezing Stores

Attameer Vegetable and FruitWholesale Market

Attameer Public Transportation Center

Attameer Riyadh Hills Attameer Sunrise Cities Attameer Technical Services City

REAL ESTATE PROJECTS

COMMERCIAL CENTERS

Attameer Wholesale Center

Attameer Plaza II

Attameer Riyadh Market

Attameer Plaza I

PROJECTS-UNDER EXECUTION

PROJECTS-UNDER STUDY AND DESIGN

Otaiqah Central Market

Commercial - Residential And Administrative Strip Center

Attameer Public TransportCenter Development Project

Master Plan to Develop Dhahira Area

Refrigeration and Freezing Stores (3)

Custodian of the Two Holy Mosques

King Salman Bin Abdulaziz

His Royal Highness

Prince Muhammad Bin NaifBin Abdulaziz

Crown Prince, Deputy PremeirMinister of Interior

His Royal Highness

Prince Faisal Bin Bandar Bin Abdulaziz

Governor of Riyadh Region Honorary President of the Board

of Directors

His Royal Highness

Prince MuhammadBin Salman Bin Abdulaziz

Deputy Crown PrinceThe Second Deputy Premeir

Minister Of Defense

Otaiqah Central Market

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Dr. Ali Bin Abdulaziz AlkhudairiMember

Eng0 Ibrahim Bin Muhammad Al-Sultam Chairman

Dr. Tami Bin Hudaif AlbugmiVice Chairman

Mr. Ebraheem Bin Fahad Al AssafMember

Eng. Ali Bin Abdullah AlhassoonMember - CEO

Eng. Nasir Bin Saad Al ArifiMember

Mansur Bin Abdullah AlzeerMember

Dr. Nasser Bin Ali AlzilfawiMember

BOARDOF

DIRECTORS

Cold And Freezing Stores

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# Ststement Pages No

1 Contents 9

2 Board of Director’s Report 11

3 Auditor’s Report 42

4 Financial Statements 43

5 Notes to the Financial Statements 46

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THE BOARD OF DIRECTORS’ REPORT TOTHE SHAREHOLDERS OF ARRIYADH DEVELOPMENT

COMPANY ON THE COMPANY’S WORKS AND ACCOMPLISHMENTS FOR THE PERIOD

From 1/1/2016 to 31/12/2016

Respective Shareholders Greetings,The board of directors of Arriyadh Development Co. is pleased to present its annual report to the company general assembly, reviewing in brief the accomplishments made during the period from 1/1/2016 to 31/12/2016 in addition to the financial position list, income list, money use sources, the company’s accounts auditor report and commitment by the company to the principle of transparency and disclosure in the Saudi Capital Market regulation for that period.

Company OverviewThe company was incorporated as a national joint stock company per the Royal Decree No. (M/2) dated 9/2/1414H with capital of SR 1,000,000,000 Saudi Riyals One Billion, in order to participate in developing the Riyadh central area and to fulfill investment aspirations all over the Kingdom. The Company is working for accomplishment of its shareholders’ aspirations by investment in the service and public interest projects in participations with the government and private sector and investment in all types of real estate planning and development .

Company’s VisionTo be a leading company in the field of real estate development and public interest service projects.

Company’s MissionParticipation in meeting the society>s needs of various real estate products (residential, commercial, office, recreational, hotel, etc.) at the highest level of planning and technical quality and contribution to providing the public interest services at the best quality and know-how.

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Company’s StrategyThe Company>s board of directors has approved in its fourth meeting «seventh session» convened on 24/11/2013 the strategic plan of the company extending till 2020. The most important initiatives for accomplishment of the strategic plan included restructuring of Arriyadh Development Co. to be transformed into a holding company. The top management concentrates on strategic planning, business development, investment and financing, providing the Company>s projects at present and in the future to be separated in subsidiaries gradually, in a way each of them shall perform the operational tasks independently, besides the possibility of entering into strategic joint ventures with third parties pursuant to the conditions serving the Company>s interests. The strategic plan initiatives included conducting feasibility studies for all new projects of the Company, whether residential, commercial, office, recreational or hotel projects.

Geographic ScopeAt present the company>s projects are concentrated in Riyadh city. However, the company>s bylaws allow the Company to invest in all parts of the Kingdom.

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The ProjectsFirst : Projects Under Execution

1- Etaika Central Market Development Project:The Company signed on 25/11/2013 a contract for development of Etaika Central Market with a national company. The contract value is more than SR 242 million. The execution period is 24 months and the market area is 186,000 sq. meter. The project includes more than 660 shops for the activities of palm dates, honey, dairies, poultry, eggs, supplies, fish and meat and 660 vegetable and fruit shops and 33 and the number (87) , an administrative office commercial exhibitions for various activities besides the offices allocated for the Company’s management and more than 2500 car parking. The project includes a yard for multiple purposes of seasonal festivals and celebrations, truck parking and parking for the employees. The market is provided with shaded passageways to protect shoppers from sun and facilitate their movement inside the market. The Company shall finance this project from its own resources. has been the completion of the first phase, which constitute about 70% of the market space is expected that the work of the second phase of the project completed during the second quarter of 2017.

Second: Project Under Study and Design1- Commercial, Residential and Administrative Strip:Located at the southern elevation of the Development Fruit and Vegetable Wholesale Market, on a street of width 30 meter. The project area is 12,000 sq. meter.

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2- Refrigeration and Freezing Stores (3):The project is located to the south of Tameer Public Transportation Center – Azizia – Riyadh, of area 30,000 sq. meter. It consists of refrigeration and freezing stores including all services needed such as the infra structure, parking, administrative offices, buffets and truck parking.

3- Developing Tameer Public Transport Center Project:On 23/12/1434H corresponding to 28/10/2013 the Company signed the minutes of meeting with Arriyadh Development Authority to use the piece of land located to the north of the Tameer Public Transport Center on the southern ring road, of area 18,000 sq. meter as a station for the trains and buses. The Projects and Planning Center at Arriyadh Development Authority shall construct a building consisting of the ground floor and three floors without costs on the Company. The ground floor will be allocated for various commercial and service shops, for the Company to serve the station. The first floor and second floor will be car parking for use by King Abdulaziz Project for Public Transport in Riyadh city, which will be managed by Arriyadh Development Authority. The third floor will be used by the Company as commercial and administrative shops for serving the station. The project’s work completion is expected to synchronize with completion of King Adulaziz Public Transportation Project at the city of Riyadh.

4- Project of Master Plan for Developing Dhahira Area: The project includes preparation of the master plan and economic feasibility study for developing Dhahira area in the Riyadh city center. The Australian consultant Urbis JHD has prepared and presented economic feasibility study and reports of the project’s fifth (final) stage.

Members of Development Alliance: Arriyadh• Development Co.General• Organization of Social Insurance.Al• Meaiklia Commercial Center Saudi Company Saudi• Real Estate Company Dar• Al Arkan Company Solidair• Saudi Company FAS• Saudi Company

Recently MOU was signed with Solidair International Company to introduce changes to the plan based on the comemnts received from the Saudi Tourism and Antiquities Authority and Arriyadh City Development Authority besides comments received from some members of the development alliance. The plan was submitted and is still under study by Arriyadh Development Authority.

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Operational Aspects Attameer Wholesale Center:The center is located in the central area of Riyadh city on King Fahad road in the Government Palace area on a plot owned by the Company of area 104,475 sq. meter. The center is characterized by its diversified activities through more than 1000 rental residential, office and commercial units including supplies for men, women and children, accessories perfumes, food stuff, mobile telephone deices, etc.

Attameer Plaza Center (1):The center is located in the Riyadh city center on King Fahad road on a plot owned by the Company, of area 1200 sq. meter, including 19 shops for the accessories and food stuffs activities as complementary activities to Tameer wholesale center activity.

Attameer Plaza Center (2):The center is located in Riyadh city center on three main streets (Al Meqaibra street, Imam Mohammed Ibn Saudi Street and Al Sabala Street) on a plot owned by the Company, of area 5000 sq. meter. It includes 83 shops specialized in the activities (men clothes, perfumes, Ouds, food material and sweets).

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Attameer Plaza Project 3):The center is located in the center of the city of Riyadh on King Fahd road on the land area of 7,000 square meters, the project includes the 110 stores 38 administrative office, in addition to provide a number of services and parking, the project is the expansion and extension of the Center for reconstruction sentence Deira district in the area of the palace of the rule in the center of the city of Riyadh.

Attameer International Car Auction: The auction is located northeast of Riyadh city on the road to Riyadh and Dammam in the sand on land owned by the company with an area of 241,495M2, the auction offers services to customers as a neutral intermediary to sell cars through a work environment an integrated (password, securing businesses, car rental companies hire, a supermarket,..etc.). Already on 11/12/2014m company founded the Arab Gulf auctions parking limited liability company by 50% to Riyadh for reconstruction and 50% of Saeed Mohamed Al Bassami with capital of $million riyals to take over the administration and operation of the auction through tenant Riyadh company for reconstruction, but filtered on 31/12/2016m, based on the willingness of the parties and achieving the desired objectives, note that the company of any financial burdens as a result.

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Attameer Public Transport Center:The center is located south of Riyadh City adjacent to the Center for reconstruction of public transport in Riyadh from the east and consists of a commercial building residential, the project involves 31 shops and apartments up to 128 apartment, in addition to free parking and a number of other services and facilities, and the project area of 5,000 square meters...

Project For Construction Of Commercial And Residential Center At Tameer Public Transport Center: The Company signed on 25/11/2013 a contract for building a commercial and residential center located near the public transport center in Riyadh with a national company. The contract value is more than SR 26 million and execution period is 18 months. The project includes construction of 33 shops and 134 residential flats besides car parking and other services and utilities. The project area is 5000 sq. meter. The Company shall finance this project from its own resources.

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Attameer Fruit and Vegetable Wholesale Market: The market is located to south of Riyadh city on the southern ring road to rear side of Riyadh Tameer market at Azizia quarter on a piece of land owned by the Company, of area 299,226 sq. meter . the market provides services to farmers as sellers, and buyers as traders and consumers.

Riyadh Attameer Market, Refrigeration And Freezing Stores And The New Commercial Building: The market is divided into three segments:

Riyadh Tameer Market: The market is located in Riyadh city on the southern ring road t Azizia quarter on a plot owned by the Company, of area 24,377 sq. meter. The markey includes (155) rental units (offices, shops). The dominating activity of the market is specialization in palm dates trade.

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Refrigeration and Freezing StoresThe refrigeration and freezing stores are located in Azizia quieter south of Riyadh city, near Tameer Fruit & Vegetable Wholesale Market, on a piece of land owned by the Company of area 27,864 sq. meter . the project includes 56 units, characterized by flexible temperature control (refrigeration and freezing) (+5 to -20 O C. We started renting in the 3rd quarter of the year 2013.

The New Commercial Building Located on Hayer road in Riyadh city, Azizia quarter on a plot owned by the Company, of area 2,000 sq. meter. The project includes 26 rental units (offices and shops) for diversified activities. Renting started in the 4th quarter of 2013.

Attameer Meat And Vegetable Market At Bat’haThe market is located in Riyadh city center on both King Abdulaziz and Tareq Ibn Ziyad roads on a piece of land leased from Riyadh province Municipality, of area 13,691 sq. meter. The market is characterized by customer stability as a specialized market in selling meat, fish and vegetables.

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Subsidiaries

The Company’s name Equity capital ownership percentage Activity Place

operations Place of

incorporation

Arabian Gulf Auctions for cars

1.000.000 RS 50% Wholesale and retail trade in

auto parts and accessories Saudi Arabia

Riyadh Saudi Arabia

Riyadh

Company Properties First: Lands Owned by the Company, on which facilities are constructed:

Department/Center Area Sq. Meter

Attameer Fruit and Vegetable Market 299,226 sq. meter Attameer International Car Auction 241,495 sq. meterAttameer Public Transportation Center 148,303 sq. meterAttameer Wholesale Center 104,475 sq. meterRiyadh Attameer Market 24,377 sq. meterAttameer Plaza Center (1) 1,200 sq. meterRefrigeration and Freezing Stores 27,864 sq. meter Attameer Plaza Center (2) 5,000 sq. meterAttameer Plaza Center (3) 7,000 sq. meterTotal 858,940 sq. meter

Second: Developed Lands Owned by the Company:Department/Center Area Sq. Meter

Shorooq cities lands and technical service city lands (common – sales not completed*) 176,670 sq. meter

Technical services city lands 118,320 sq. meter Azizia area lands 40,952 sq. meter Government Palace lands 39,963 sq, meter Telal Riyadh lands 22,965 sq. meter Land Thumama 2,081,400 sq. meter Total 2,480,270 sq. meter

* For Shorooq cities lands and technical service city lands, sales started not yet completed.

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Public Relations and Shareholders Relations

The Public Relations is seeking introduction with the Company’s existing projects and extending bridges for communication with the Company’s shareholders and customers through the media channels, covering the Company’s internal and external activities.

Administrative, Technical and Financial Affairs

Human Resources Human capital is the basis of evolution and development process God has entrusted with the task of building land , So the interest in this element comes in the list of priorities for all organizations. If the perception of the human element must be centered on the considered investment , So it has been careful and focus on filling operational vacancies company competencies and qualified personnel in the centers and markets, especially in Central vintage market , which recently joined the markets and centers of the company as well as the strengthening of international automotive Riyadh certain competencies auction to keep pace with the evolution in his career and development.

Information Technology Interests of the company to keep pace with new technologies and the development and accelerate the performance has made IT management application and use of Google applications (Google Apps) In administrative work and reduce the use of paper. A quantum leap in the company ‘s real estate system as happened So that it is able to distribute the revenue and ages of debt As reflected in the performance monitoring also helps management in decision - making. And I saw the rest of the night Alchg systems (reconstruction center for public transport system - and the system of reconstruction market for phrase fruit and vegetables - The auction system reconstruction of Q Aarat) developed markedly and additions commensurate with the operational requirements And increased control.

Financial Results The company achieved total revenues for the fiscal year ended 31.12.2016 amounted •(1.246.381.030) riyals, an increase from the 2015 amount of 191%.The Company expenses reached (SR 970,571,080).•Net profit of the Company reached before deduction of Zakat (SR 275,809,950).•Zakat allocation for the year 2015 reached (SR 13,543,074).•equity share of non-controlling interest in the net profits of the subsidiary (494.560) riyals.•An amount of (SR 26,177,232 ) was transferred to the general reserve which is equivalent to •(10%) of the Company’s net profits after deduction of Zakat.

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Effect of Operational Activities on Company Works

Statement OperationActivity Lease Activity Land Activity Common Assets

& Liabilities Total

For the year ending on 31 December 2016

Total Assets 304.853.109 1.186.303.823 24.170.859 1.130.558.779 2.645.886.570

Total Liabilities 34.839.557 83.878.462 52.773.878 579.178.535 750.670.432

Operation Revenues 152.854.249 90.728.536 992.181.041 - 1.235.763.826

Operation Costs 28.374.605 21.241.729 888.499.977 - 938.116.311

Total Income 124.479.644 69.486.807 103.681.064 - 297.647.515

For the year ending on 31 December 2015

Total Assets 441.185.009 1.002.858.458 899.438.126 229.992.325 2.573.473.918

Total Liabilities 38.725.025 65.247.083 476.652.749 114.878.536 695.503.393

Operation Revenues 136.667.169 92.362.868 196.277.036 - 425.307.073

Operation Costs 27.964.401 22.077.378 41.785.272 - 91.827.051

Total Income 108.702.768 70.285.491 154.491.764 - 333.480.022

Comparative Analytic Presentation of Operation Results

StatementActual Data Actual Data

Difference R.S Difference % 2016 2015

Operation Revenues 1.235.763.826 425.307.073 810.456.753 191%

Operation Costs 938.116.311 91.827.051 - 846.289.260 - 922%

Total Profit 297.647.515 333.480.022 35.832.507 - 11%

Administrative & Marketing Expenses 19.643.769 34.585.938 - 3.520.015 - 22%

Operation Profit 278.003.746 298.894.084 - 39.352.522 - 12%

There is a decrease in the overall profit of the company amounted 11% drop in operating profit rate of 12% due : - Low undeveloped land sales during 2016 compared to 2015.

Regulatory Due Payments Statement

Statement 2016 2015

Legal Zakat 13.543.074 7.883.087

GOSI 1.033.814 853.018

Chamber of Commerce & Industry 13.208 5.200

Capital Market - Tadawul 400.000 400.000

Total 14.990.096 9.141.305

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Financial Statements for the Last Five Years Balance Sheet as of 31 December

(in Million Riyals)

Statement 2016consolidated

2015consolidated 2014 2013 2012

Total Assets 2645.89 2573.47 2355.91 1858.78 1717,67

Total Liabilities 750.67 695.50 646.91 176.37 183,46property rights Non-controling interests 0.26 -0.24 - - -

Total Equities of Shareholders 1894.96 1878.21 1709.00 1682.41 1534,21

Income Statement for the fiscalyears ending on 31 December

(in Million Riyals)

Statement 2016consolidated

2015consolidated 2014 2013 2012

Operation revenue 1235.76 425.31 251.29 355.85 347.41

Other revenues 10.62 2.68 17.89 5.51 4,78

Total revenues 1246.38 427.99 269.18 361.36 352,19

Operation Costs 938.12 91.83 62.77 93.03 97,17

Other profit & revenue 308.26 336.16 206.41 268.33 255,02

Total Expenses 46 42.46 17.04 18.64 26,08

Net profit before of minority interests 262.26 293.70 189.37 249.69 228,94

the share of Non-controling interests of minority interests 0.49- 0.73 - - -

Net profit 261.77 294.43 189.37 249.69 228,94

Operation profit 297.65 333.48 176.13 250.38 234.33

Cash flow Statement for the fiscal years ending on 31 December

(in Million Riyals)

Statement 2016consolidated

2015consolidated 2014 2013 2012

Cash flows from operation activity 216.43 221.66 177.10 156.41 162.12

Cash flows from investment activity 108.86- 54.46 465.93- 57.26- 21.39

Cash flows from finance activity 234.68- 131.57- 295.84 99.96- 186.57-

been returning some numbers in comparison tab to conform to the presentation for the current year.

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Other Investments The company carried out various investment operations including:

The investment company’s liquidity in the Islamic Murabaha funds in accordance with the 1. contracts were approved legally.Contribute to Tabuk Cement Company at a cost of (600,000 rials) to the number of 12,000 2. shares (now amounted to 77.142 shares after the retail and distribution of profits in the image of shares).-Investing in shares is managed by a licensed financial institution portfolio under the approved 3. portfolio management agreements by the Capital Market Authority, at a cost of SR 50 million.Investment in Saudi hospitality heritage (Saudi closed joint stock company) the number of shares 4. million shares with a total value of 20 million riyals and 8% of the share capital, the company has to pay 5 million Saudi riyals down of its stake in this investment.Investment in Riyadh Tameer Real Estate Fund at Al-Inma Investment Company (a closed real 5. estate development fund licensed by Capital Market Authority and in accordance with legal standards and controls and established as special offer as per article 4-b-4 of investment funds regulations), with 5730 units and cost of (SR 573.000.000) and participation percentage of (69.38%) of total units from which the fund capital formed.Investment in Al-Mubarak Trade Fund at Arab National Investment Company (an open fund 6. licensed by Capital Market Authority as per decision number 4-36-2007) and in accordance with legal standards and controls with 22.761.991 units and cost of (SR 455.000.000).

Retained Profits The balance of retained profits as of 31/12/2016 reached 334.604.974 SAR

Remuneration of Directors & Executive Committee

The remuneration for attending the meetings of the board and the committees thereof reached 249.000 SAR

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Corporate Governance Responding to the demands of capital market authority, its regulatory bylaws and in order that the company apply the best practices of disclosure and transparency , the company discloses the following to its respectful shareholders:

1- The applicable and the inapplicable provisions of corporate governance bylaw

& relevant reasons: The following schedule details the company compliance with Saudi corporate governance bylaw issued by Capital Market Authority.

No. Article number as per the corporate governance bylaw

Fully compliant

Partially compliant Incompliant Cause of

Incompliance

1 General rights of shareholders √

2(4) : Facilitating the shareholders practice of their rights and their attainment of information

√

3 (5) : shareholders rights concerning general meetings √

4 (6) : Voting Rights √

Clause (b) cumulative voting – it has been rejected after voting in the general meeting(D)

5 (7) : shareholders rights of share profits √

6 (8) : disclosure Policies & Processes √

7 (9) : Disclosure in the board report √

8 (10) : Main Functions of the board of directors √

9 (11) : Board Responsibilities √

10 (12) : Board Composition √

11 (13) : Board Committees & Their Independence √

12 (14) : Audit Committee √

13 (15): Nomination & Remuneration Committee √

14 (16) : Board meetings & agenda √

15 (17): directors Remunerations & Compensations √

16 (18): Directors’ Conflict of Interest √

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2- Ranking the directors, the number of meetings duringthe year, the record of attendance, the names of the stocking

companies of which board the directors are acting as directors:

Seventh session, which ended on 24.06.2016 AD

No. Director’s Name Ranking Stocking Companies Of

Which Board The Directors Are Acting As Directors

1 Eng. Ibrahim Mohammad Al Sultan Riyadh Municipality Representative

Chairman Independent Non-Executive N/A

2 Eng. Ali Abdullah Al Hassoun Executive Alahsaa Development Co.

3 Dr. Tami Hadif Al Baqami Independent Non-Executive Alahsaa Development Co.

4 Mr. Mansour Abdullah Al Zeir Independent Non-Executive N/A

5 Dr. Nasser Ali Al-Zlfawi Independent Non-Executive N/A

6 Dr. Abdulaziz Hamad Al MashaAl

Independent Non-Executive N/A

7 Dr. Ali Abdulaziz Al Khudairi Independent Non-Executive N/A

8 Eng. Meshari Nasser Alshithri Independent Non-Executive N/A

9 Mr. Fawaz Hamad Alfawaz Independent Non-Executive Umm Al-Qura Cement Company

The board of directors held (1) meetings from 01/01/2016 to 24/06/2016

No. Director’s Name 1st Meeting17/01/2016

Attendance %

1 Eng. Ibrahim Mohammad Al Sultan Riyadh Municipality Representative Attendant 100%

2 Eng. Ali Abdullah Al Hassoun Attendant 100%

3 Dr. Tami Hadif Al Baqami Attendant 100%

4 Mr. Mansour Abdullah Al Zeir Attendant 100%

5 Dr. Nasser Ali Al-Thilfawi Attendant 100%

6 Dr. Abdulaziz Hamad Al Mashaal Non- Attendant 0%

7 Dr. Ali Abdulaziz Al Khudairi Attendant 100%

8 Eng. Meshari Nasser AlShithri Attendant 100%

9 Mr. Fawaz Hamad AlFawaz Attendant 100%

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Eighth session, which began on 25/06/2016

No. Director’s Name Ranking Stocking Companies Of Which Board The

Directors Are Acting As Directors

1 Eng. Ibrahim Mohammad Al Sultan Riyadh Municipality Representative

Chairman Independent Non-Executive N/A

2 Eng. Ali Abdullah Al Hassoun Executive N/A

3 Dr. Tami Hadif Al Baqami Independent Non-Executive N/A

4 Mr. Mansour Abdullah Al Zeir Independent Non-Executive N/A

5 Dr. Nasser Ali Al-Zlfawi Independent Non-Executive N/A

6 Dr. Abdulaziz Hamad Al Mashaal

Independent Non-Executive N/A

7 Dr. Ali Abdulaziz Al Khudairi Independent Non-Executive N/A

8 Mr. Ibrahim Fahad Al Assaf Independent Non-Executive Musharaka

9 Eng. Nasser Saad Alarifi Independent Non-Executive Odzala

The board of directors held (1) meetings from 25/06/2016 to 31/12/2016

No. Director’s Name 1st Meeting30/6/2016

2nd Meeting31/07/2016

3rd Meeting17/10/2016

4th Meeting25/12/2016

Attendance %

1 Eng. Ibrahim Mohammad Al Sultan Riyadh Municipality Representative Attendant Non-

Attendant Attendant Attendant 75%

2 Eng. Ali Abdullah Al Hassoun Attendant Attendant Attendant Attendant 100%

3 Dr. Tami Hadif Al Baqami Attendant Attendant Attendant Attendant 100%

4 Mr. Mansour Abdullah Al Zeir Attendant Attendant Attendant Attendant 100%

5 Dr. Nasser Ali Al-Zlfawi AttendanT Attendant Attendant Attendant 100%

6 Dr. Abdulaziz Hamad Al Mashaal Attendant Attendant Attendant Attendant 100%

7 Dr. Ali Abdulaziz Al Khudairi Attendant Attendant Attendant Attendant 100%

8 Mr. Ibrahim Fahad Al Assaf Attendant Non- Attendant Attendant Attendant 75%

9 Eng. Nasser Saad Alarifi Attendant Attendant Attendant Attendant 100%

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3- Interests & Equities of Directors,Senior Executives & Their Wives & Minors:

Interests & Equities of Directors

Session seventh, which ended on 24 /06/ 2016 m

M member name The first period 01 / 01 / 2016 m The ratio Last period

24 / 06 / 2016 m The ratio

Eng. Ibrahim bin Mohammed Sultan Representative of the Riyadh Municipality

municipality subjective0.039999%

municipality subjective0.039999% 26.666

shares 26.666 shares

26.666 shares

26.666 shares

2 Eng. Ali bin Abdullah Al Hassoun 28.133 shares 0.0210997% 28.133 shares 0.0210997%

3 Dr. Tami Ben Hdev Buqami 6.666 shares 0.0049995% 6.666 shares 0.0049995%

4 Mr. Mansour bin Abdullah Al- Zeer 4547 shares 0.0034102% 4547 shares 0.0034102%

5 Dr. Nasser Ali Al-Zlfawi 1.333 shares 0.0009997% 1.333 shares 0.0009997%

6 Dr. Abdul Aziz bin Hamad Almashaal 1,000 shares 0.00075% 1,000 shares 0.00075%

7 Dr. Ali bin Abdul Aziz Al - Khudairi 18.666 shares 0.013995% 18.666 shares 0.013995%

8 Eng. Mishari Nasser Shathri 1,467 shares 0.0011002% 1,467 shares 0.0011002%

9 Mr. Fawwaz Hamad al - Fawwaz 1.333 shares 0.0009997% 1.333 shares 0.0009997% Session eighth , which began on 25 /06/ 2016 m

M member name Beginning of period 25 / 06 / 2016 m The ratio Last period

31/12/ 2016 m The ratio

1 Eng.Ibrahim bin Mohammed Sultan Representative of the Riyadh Municipality

municipality subjective0.04%

municipality subjective0.04% 26.666

shares 26.666 shares

26.666 shares

26.666 shares

2 Eng. Ali bin Abdullah Al Hassoun 28.133 shares 0.0210997% 28.133 shares 0.0210997%

3 Dr. Tami Ben Hdev Buqami 6.666 shares 0.0049995% 6.666 shares 0.0049995%

4 Mr. Mansour bin Abdullah Al- Zeer 4547 shares 0.0034102% 4547 shares 0.0034102%

5 Dr. Nasser bin Ali Zlfawi 1.333 shares 0.0009997% 1.333 shares 0.0009997%

6 Dr. Ali bin Abdul Aziz Al - Khudairi 18.666 shares 0.013995% 18.666 shares 0.013995%

7 Eng. Nasser bin Saad al - Arifi 640 .000 shares 0. 48 % 10,000 shares 0.0075000%

8 Mr. Ibrahim bin Fahd Al - Assaf 1 .000 shares 0. 0 0075 00 % 1 .000 shares 0. 0 0075

00 %

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Key Executives Interests & Equities

The name Job title The first period 01/01/ 2016 m The ratio Last period

31/12/ 2016 m The ratio

Eng. Ali bin Abdullah Al Hassoun chief executive officer 28.133 shares 0.021% 28.133 shares 0.021%

Mr. Jibreen bin Abdullah al - Jibreen Administrative and Financial Director There is no - - -

Mr. Fayez bin Abdullah Al Ahmari Head of Legal Unit 6.400 shares 0.005% 26.400 shares 0. 019 %

Mr. Mamdouh Ahmed Shehata Farag Director of Finance Department There is no - There is no -

Mr. Mahmoud Ahmed Ahmed Projects and Maintenance Manager There is no - There is no -

4- Board Committees Competencies Executive Committee

Brief Description of Committee Tasks :Studying the executive plans , the operation policies and developing the company projects besides approving consultation studies, systems and researches for projects and work programs in addition to performing any works or assignments assigned by the board of directors.

Committee Members & Number of Meetings in 2015 : Session seventh , which ended 24/06/ 2016 m

M Committee members Number of meetings

1 Eng. Ali bin Abdullah Al Hassoun “Chairman of the Committee“

- 2 Dr. Abdulaziz Bin Hamad Al Mashaal “Member“

3 Mr. A. Mansour bin Abdullah Al- Zeer “ member “

4 Eng. Mishari Bin Nasser Shathri “ member “

Session eighth, which began 25 /06/ 2016 m

M Committee members Number of meetings

1 Eng. Ali bin Abdullah Al Hassoun “Chairman of the Committee“

3 2 Dr. Nasser bin Saad al-Arifi, “Deputy Chairman of the Committee“

3 Mr. Mansour bin Abdullah Al- Zeer “ member “

Commission review A brief description of the tasks : Supervise the Internal Audit Department of the company : in order to ensure its effectiveness in the implementation of the business and the tasks set for them by the Board of Directors .

The study of the internal control system and the development of a written report and its •recommendations on the matter . Study the internal audit reports and follow up the implementation of corrective actions •for the notes contained therein . Recommendation of the Governing Council to appoint a accountants to lawyers and •

32 2 0 1 6

their dismissal and determine their fees, and taken into account when recommending appointments to ensure their independence . Follow the work of Chartered Accountants , and the adoption of any work outside the •scope of audit work assigned to them while they work review . Study audit plans with the chartered accountant and express Mlhozadtha them . •Study Notes chartered accountant on the financial statements and follow up on what •was in the will . Study and preliminary annual financial statements before submission to the Board of •Directors and opinion , and in that recommendation . Study of accounting policies and to express an opinion and recommendation of the •

Governing Council in the matter . Committee members and the number of meetings for the year 2016 AD : Session seventh , which ended on 24/06/ 2016 m

M Committee members Number of meetings

1 Dr. Tami Ben Hdev Buqami “Chairman of the Committee“

2 2 Mr. Fawaz bin Hamad al - Fawwaz “member“

3 Dr. Ali bin Abdulaziz Al - Khudairi “ member “

Session eighth , which began on 25 /06/ 2016 m

M Committee members Number of meetings

1 Dr. Ali bin Abdulaziz Al-Khudairi, “Chairman of the Committee“

3 2 Mr. Ibrahim bin Fahd Al-Assaf “Deputy Chairman of the Committee“

3 Dr. Tami Ben Hdev Buqami “member“

332 0 1 6

Committee Nomination and Remuneration A brief description of the functions of the Commission : Recommendation of the Governing Council candidacy for membership of the Board in accordance with approved policies and standards , taking into account not to nominate any person previously convicted of a crime involving moral turpitude and Secretariat.

Annual audit required for the needs of the right skills for membership of the Board of •Directors and prepare a description of the capabilities and qualifications required for membership of the Board of Directors . A review of the structure of the Board of Directors and make recommendations •regarding changes that can be made . To identify weaknesses and strengths in the Board of Directors, and the proposal dealt •with in accordance with the company ‘s interest . On an annual basis to make sure the independence of independent members and the •absence of any conflict of interest if the member is a member of the Board of Directors of another company . Develop clear policies for the compensation and remuneration of the Board of Directors •and senior executives, and taken into account when setting those policies using criteria linked to performance .

Organizing Policy of administrative board members and determination mechanism:The council approved the regulation which was prepared as per laws and legislations issued by concerned authorities as the following below:

Article (44) of the company basic regulations stated that (taking into consideration what 1. other relevant rules require) annual net profits of the company should be distributed after deduction of all general expenses and other costs, included Zakat legally imposed, as below:(A)- (10%) of net profits should set aside as a regular reserve, normal general assembly has the right to stop this procedure when the above mentioned reserve reaches 30% of the paid capital.(B)-After that the rest will be distributed to shareholders as first payment that equivalent (5%) of the paid capital.(C)-(5%) will be specified as reward for members of directors board taking into account decisions or instructions issued by concerned authorities in this regard, then the rest should be distributed to shareholders as an addition portion of profits.Committee of nominations and rewards should recommend the administrative board 2. with a mechanism to calculate amount of annual reward for each member.The administrative board submits recommendation of committee of nominations and 3. rewards to general assembly for approval.The reward should be equitable and suitable with duties and responsibilities of the 4. member.Reward worth must be adequate with number of meetings attended by the member 5. during the fiscal year.A member of administrative board deserves to obtain a reward of (SR2000) for each 6. meetings of the administrative board or its emerging committees.Reward can be different between members of administrative board according to 7. attending of meetings.Reward should be sufficient and reasonable and its maximum limit must not exceed 8. (500.000) as per paragraph (2) from article (76) of companies law.Members of administrative board are not authorized to vote in meeting of general 9. assembly on article of rewards related to members of administrative council.

34 2 0 1 6

Committee members and the number of meetings for the year 2016 AD : Session seventh , which ended on 24/06/ 2016 m

M Committee members Number of meetings

1 Dr. Ali bin Abdulaziz Al-Khudairi, “Chairman of the Committee“

2 2 Eng. Ali bin Abdullah Al Hassoun “member“

3 Dr. Tami Ben Hdev Buqami “member“

4 Dr. Nasser Bin Ali Al-Zlfawi “member“ Session eighth , which began on 25 /06/ 2016 m

M Committee members Number of meetings

1 Dr. Nasser bin Ali Zlfawi “Chairman of the Committee“

12 Dr. Ali bin Abdulaziz Al-Khudairi, “Deputy Chairman of the Committee“

3 Eng. Ali bin Abdullah Al Hassoun “ member “

Investment Committee A brief description of the functions of the Commission : The Committee on Investment tasks proposal and examine investment opportunities and make recommendations to the Council around a no management and supervision of the stages of preparation of economic feasibility study of the projects .

Committee members and the number of meetings for the year 2016 AD : Session seventh , which ended on 24/06/ 2016 m

M Committee members Number of meetings

1 Dr. Abdul Aziz Bin Hamad Almashaal “Chairman Of The Committee“

2 2 Eng . Ali bin Abdullah Al Hassoun “member“

3 Mr. Fawaz bin Hamad al - Fawwaz “member“

4 Mr. Mansour bin Abdullah Al-Zeer “member“

Session eighth , which began on 25 /06/ 2016 m

M Committee members Number of meetings

1 Mr. Mansour bin Abdullah Al- Zeer “Chairman of the Committee“

12 Dr. Tami Ben Hdev Buqami “Deputy Chairman of the Committee“

3 Eng. Ali bin Abdullah Al Hassoun “member“

352 0 1 6

5- Remuneration & Compensation: Five of Senior Executives who

received the highest remunerations and compensations including CEO

(director) and the Financial manager

(Independent) Non-Executive

Directors

Executive Directors Statement M

5.302.288-3.185.938Salaries & Compensation 1

78.000240.000718.000Allowances 2

200.0001.600.000200.000Regular & Annual Remuneration 3

1.276.931-793.125Incentive Plans4

---Any other compensation or benefit paid monthly or annually 5

6- Results of Annual Auditfor the efficiency of internal audit processes

The external auditor tasks include reviewing the final financial data of the company besides the assessment of the internal audit system including the accounting system from the theoretical and the applied aspects; the company provides a report about the weaknesses of the system and the ways adopted to handle them in addition to enabling the auditor to review the reports of the internal audit unit for the related period. The internal audit unit under the supervision of audit committee will carry out continuous financial, operational and technological processes to verify the efficiency of the internal audit systems in terms of protecting the company assets in addition to the assessment of work risks and measuring the sufficiency of performance; the internal audit unit will submit quarterly regular reports to the audit committee, including the results of internal audit assessment. The annual report of the audit committee asserted the effectiveness and the quality of internal audit processes and it revealed no essential weakness during the year 2016 G.

Board ResolutionsThe• accounts records have been duly developed accounting to the accounting standards issued by the Saudi commission of chartered accountants. There• is no doubt to be mentioned concerning the company ability to continue its operation. The• internal audit system has been developed on sound bases and it has been carried out perfectly.

DisclosuresTadawul website was• announced on 17/12/2014 and obtained long term finance of (SR 450.000.000) from Al-Inma Bank and duration of finance is five years started on 17/12/2014, permission period for the first and second year, the value of first installment is 150 million Saudi riyal which will be due in December 2017. The • company declares that none of the directors, the chief executive officer, the financial director or a related person, has any direct or indirect interest in the works which are carried out for the company. Moreover, all the directors have no subscription in any loan; the company does not guarantee any director for any loan or commitment. There are no contracts • with any parties related to the board of directors, the chief executive office, his deputy, the financial manager or anyone of their relatives. The company has no knowledge about any • arrangements of agreements under which a director or a senior executive has transferred any salary or compensation.

36 2 0 1 6

The company has • no knowledge about any arrangements of agreements under which any a corporate shareholder has assigned its rights in the profits. There no other investments or provisions created for the interest • of anyone working for the company. The company had no • notification concerning any interest in the category of shares with voting rights and any change thereof during the last fiscal year. The company has no debt instruments transferable to shares • and any preemption rights, underwriting rights or similar rights. The • company has not issued any transfer rights or underwriting under debt instruments transferable to shares, any preemption rights, underwriting rights or similar rights. The company has not refunded, purchased or • precluded any refundable debt instruments . The distribution amount ( 173, • 333 , 333 ) Real dated 25 / 05 / 201 6 m for the company ‘s shareholders by ( 1.30 ) Real Thirty halalas per share per annual dividend for the period 01/ 01 / 2015 m up to 3 1 / 12 / 2015 m . The amount• of the distribution ( 66 , 666 , 666 .50 ) Real dated 28 / 08 /2016 m to the company ‘s shareholders by ( 0.50 ) Fifty halalas per share per dividend for the first half of 2016 m . During the meeting held on 02/11/2015, the company board of directors decided to participate • in the first Riyadh Tameer Real Estate Fund as per rules of capital market and relevant executive regulations which managed by Al-Inma Investment Co. according to its license issued by Capital Market Authority and in accordance with legal standards and controls, on 30/06/2016 the fund captured all the company portion in the land located northeast from Riyadh city and owned by the company with (85%) and portion of Adbar Company is (15%), portion of the company reached (SR 974.100.000) and the fund has paid the company (SR 401.100.00) and rest of value is (SR572.000.000) which represented participation of the company in this fund, that means with (69.38%) of units from which the fund capital consists.In its meeting held on 13/01/2017 board of directors recommended the next general assembly to • pay amount of (SR 106.666.666.40) as profits of the second half of the year 2016 for the company shareholders about (80 hallals) for each share.

The international criteria application planThe first stage: Determining the international criteria corresponding with the activity nature according to the international standards.

Comprehensive study of the company’s activity. 1. Studying the financial policies and the accountancy procedures of the company and highlighting 2. the acts in need for modification. Determining the differences between the Saudi criteria and the relevant international ones. 3. Determining the differences between measuring, presenting and clarifying. 4.

372 0 1 6

The second stage: Developing according to the international criteria requirements

Studying1. affectivity of the infrastructure of information technology through applying the international accountancy standards. Holding training workshops for defining the international2. accountancy standards for the whole of financial administration employees.

The third stage: The initial transformation of the international standards. Executing1. the international standards application through the available information and making the necessary compromises. Preparing the general structure of the financial2. lists according to the international standards.Preparing the necessary reconciliations3. for profits and intellectual property. Revising the financial lists 4. to ensure taking into consideration all the related criteria.

The fourth stage: ApplicationMaking sure that the financial disciplines, processes, 1. and policiesDeveloping action plan for applying the international criteria 2. which lead to changing the financial reports language in form and substance.Applying the international criteria on the financial reports, 3. systems and processes.Updating the financial policies and procedures according to the international criteria. 4.

Transition stages towards standardsof international accounting:

First stage:Transition plan was prepared to apply standards 1. of international accounting and to start implementation.Appointment of external 2. consultant for the company with experience and competence in application of international accounting standards.Formation of internal team responsible for 3. transition plan and implementation in order to apply standards of international accounting.The company has not faced any great difficulties 4. in transition process to apply standards of international accounting.

Second stage:The company ended to determine required amendments to apply 1. standards of international accounting.The company ended preparation of accounting 2. policies which go with standards of international accounting and approved by the administrative board on 25/12/2016.Preparation of open balances 3. for the year 2016 was ended as per standards of international accounting.Preparation of first financial statements draft for the 4. first quarter of 2016 was ended as per standards of international accounting which enable to smooth transition towards standards of international accounting from beginning of first quarter of 2017.

38 2 0 1 6

Risks Facing The Company 5. The risks indicated hereunder do not include all the risks that might face the company, there 6. may be additional risks and they are not known to the company or the company may deem them unessential and they may hinder the company operations.

Fluctuation in the company processes and dependence on service projects

The company works depend on two main aspects: (1) public utility & service projects 2) commercial centers & real-estate projects. The revenue of such projects may be affected in the future by the extend of demand, which might result in adverse effect on the company financial position and operation results besides affecting the company activity in the service projects, which may change the demand of such projects in various seasons particularly in Riyadh and generally in the kingdom. However, the kingdom tended to projects providing miscellaneous services and commodities in the fields of transport, vehicles, vegetables, fruits, meats and commercial centers whose growth is positively related with the population growth.

Revenue Collection The sources of the company revenues constitute centers and markets and entail the collection by checks, the bank deposits and particularly the cash collection, however, the company faced such risks through preparing precise documentary courses and applying auto-systems besides electronic control systems to limit such risks.

Expansion Strategy Arriyadh development Co. has adopted five plan in the previous years and it has resulted in an unprecedented growth in the operation profits during the last five years; the company approved new projects in the two fields of public utility and real-estate development. The new projects of the company. The new projects of the company may be subject to fluctuations in the tastes of consumers and the volume of demand, which might affect adversely on the results of operational processes of the company and its financial position.

Company Works Progress Obstruction The company depends for its activity on the infrastructure of its projects which increases the confidence of the dealing parties. Necessary precautions have been processed to protect its properties from natural disasters or terroristic acts by applying the highest standards of safety through the regular maintenance and the exploitation of security protection. However, there is no guarantee for the company that its work progress will not be affected, even indirectly, by anyone of those hindrances.

SaudizationThe company has no risks because it is ranked in the premium domain as per the classification made by Ministry of Labor, however, there is nothing to guarantee the company ability to maintain the current percentage of Saudization; most importantly, the company has precise updated and documented regulations for all the practical assignments, besides the firm policy to circulate position, continuous training and Saudization.

392 0 1 6

Profit Distribution Policy As a general policy adopted in this concern, the board of directors recommends in the end of each fiscal year to distribute the net profits of the company after deducting the all general expenses and other costs including the legally applicable Zakat as indicated in article (44) of the company articles of association as follows:

10 % of the net profits will be withheld to compose the regulatory reserve; the ordinary general 1. meeting may stop such withholding if the said reserve becomes equal to half of the capital. An amount equal to 5 % of the paid up capital will be distributed to shareholders out of the 2. remaining profit. 5 % of the remaining profit will be provisioned as a remuneration to the directors, considering 3. relevant resolutions and instruction issued by the competent authorities; then the balance of profit will be distributed to the shareholders as additional dividends.

ConclusionWe take this opportunity to cite the support provided by the custodian of the two holy mosques King Salman Bin Abdulaziz Al Saud and the crown prince / Mohammed Bin nayef and the crown crown prince/Mohammed Bin Salman to the private sector. We further cite the contribution of HRH prince / Faisal Bin Bandar Bin Abdulaziz, vice-mayor Riyadh region for the efforts exerted through continuous guidance and follow up to serve the purposes stated in the company articles of association; We also thank you for replying this invitation and your confidence in the board of directors, furthermore, we thank all the employees of the company for their faithful efforts to improve the company performance and the growth of shareholders equities.

Directors of The Board

Attameer International Car Auction

42 2 0 1 6

CONSOLIDATED BALANCE SHEETAS OF DECEMBER 31, 2016

Note 2016SR

2015SR

ASSETS

CURRENT ASSETS

Cash and bank balances 5 78,022,093 205,128,616Accounts receivable, net 6 39,237,090 25,325,377Prepayments and other assets 7 14,476,368 16,240,249TOTAL CRRENT ASSETS 131,735,551 246,694,242NON-CURRENT ASSETS

Deferred financing charges, net 4 3,325,682 4,453,766Investments in securities available for sale, net 8 37,665,630 39,003,752Investments in funds available for sale, net 9 1,026,974,487 -Projects under constructions 10 229,307,331 1,043,304,634Real estate investments, net 11 1,215,901,292 1,238,837,693Property, plant and equipment, net 12 976,597 1,179,831TOTAL NON-CURRENT ASSETS 2,514,151,019 2,326,779,676TOTAL ASSETS 2,645,886,570 2,573,473,918LIABILITIES AND SHAREHOLDER’S EQUITYCURRENT LIABILITIES

Due to related party 16 4,099,442 4,124,442Dividends payable 17 57,810,422 52,312,012Long term loan – current portion 18 150,000,000 -Accounts payable 13 67,041,770 42,017,030Accrued expenses and other payables 14 80,717,113 90,030,274Deferred revenue 15 59,278,221 32,855,509Provision for Zakat and Tax 19 22,885,634 17,225,647TOTAL CURRENT LIABILITIES 441,832,602 238,564,914NON-CURRENT LIABILITIES

Long term loan 18 300,000,000 450,000,000End-of-service indemnities 8,837,830 6,938,479TOTAL NON-CURRENT LIABILITIES 308,837,830 456,938,479TOTAL LIABILITIES 750,670,432 695,503,393SHAREHOLDER’S EQUITY

Share capital 1 1,333,333,330 1,333,333,330Statutory reserve 20 229,723,891 203,546,659Retained earnings 334,604,974 340,809,890Unrealized (losses) gains from investments revaluation (2,704,245) 517,018TOTAL SHAREHOLDER’S EQUITY 1,894,957,950 1,878,206,897Non-controlling interest 258,188 (236,372)TOTAL LIABILITIES AND SHAREHOLDER’S EQUITY 2,645,886,570 2,573,473,918

The attached notes (1) to (31) form an integral part of these consolidated financial statements.

432 0 1 6

CONSOLIDATED STATEMENT OF INCOMEFOR THE YEAR ENDED DECEMBER 31, 2016

Note 2016SR

2015SR

Revenue 21 1,235,763,826 425,307,073

Cost of revenue 22 (938,116,311) (91,827,051)

Gross profit 297,647,515 333,480,022

General and administrative expenses 23 (19,643,769) (16,123,754)

Net profit from main operations 278,003,746 317,356,268

Impairment of securities available for sale 8 - (18,462,184)

Finance expenses 18 (12,811,000) -

Other revenue 24 10,617,204 2,680,559

Net profit before zakat, tax and non- controlling interest 275,809,950 301,574,643

Zakat and tax 19 (13,543,074) (7,883,087)

Net profit before non- controlling interest 262,266,876 293,691,556

Non-controlling interest (494,560) 736,372

Net profit for the year 261,772,316 294,427,928

Earnings per share

Net profit from main operations 2.08 2.38

Net profit for the year 1.96 2.21

The attached notes (1) to (31) form an integral part of these consolidated financial statements.

44 2 0 1 6

CONSOLIDATED STATEMENT OF CASH FLOWSFOR THE YEAR ENDED DECEMBER 31, 2016

2016SR

2015SR

OPERATING ACTIVITIESNet profit for the year 261,772,316 294,427,928Adjustments to reconcile net profit with net cashprovided from operating activities:Depreciation 20,234,485 19,885,277Gain from sale of real estate investments (103,681,064) (154,491,764)Gain from sale of property, plant and equipment - (43,626)Provision for doubtful accounts 536,323 1,453,279Impairment of securities available for sale - 18,462,184Deferred financing expenses 1,128,084 1,121,919Expenses related to projects under constructions 1,445,000 -End-of-service indemnities formed 2,472,121 1,491,421Zakat and tax formed 13,543,074 7,883,087Operating assets and liabilities: Accounts receivable (14,448,035) 9,074,007Prepayments and other assets 1,763,882 1,601,723Accounts payable 25,024,740 6,204,627Accrued expenses and other payables (9,313,161) 20,103,990Cash from operations 200,477,765 227,174,052Due to related party (25,000) 4,124,442End-of-service indemnities paid (572,770) (883,451)Deferred revenue 26,422,712 (1,792,667)Zakat paid (7,883,087) (4,650,816)Net cash provided from operating activities 218,419,620 223,971,560INVESTING ACTIVITIESPurchase of investments in securities available for sale (857,628) (6,186,043)Purchase of investments in funds available for sale (455,000,000) -Purchase of property, plant and equipment (226,623) (856,680)Proceeds from sale of property, plant and equipment - 47,299Proceeds from sale of real estate investments 419,181,041 196,277,036Projects under construction (72,815,901) (136,007,889)Cash (used in) provided from investing activities (109,719,111) 53,273,723FINANCING ACTIVITIESNon-controlling interest 494,560 (236,372)Cash dividends (236,301,592) (132,459,946)Cash provided from financing activities (235,807,032) (132,696,318)Net (decrease) increase in cash and bank balances (127,106,523) 144,548,965Cash and bank balances at beginning of the year 205,128,616 60,579,651Cash and bank balances at end of the year 78,022,093 205,128,616Non-cash transactions Dividends payable 6,095,550 2,673,388Unrealized losses from investments in securities and funds available for sale 3,221,263 9,908,884Transferred from proceeds from sale of real estate investments to investments in funds available for sale 573,000,000 -Real estate additions from projects under construction 885,368,204 7,877,466

The attached notes (1) to (31) form an integral part of these consolidated financial statements.

452 0 1 6

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46 2 0 1 6

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT

FOR THE YEAR ENDED DECEMBER 31, 2016

1- ACTIVITIESArriyadh Development Co. is Saudi Joint Stock Company was founded according to the royal decree No. m/2 dated Safar 9, 1414H corresponding to July 28, 1993. The Company is registered in the Kingdom of Saudi Arabia under the Commercial Registration No. 1010124500, issued in Riyadh dated Thu Al-Qa’dah 29, 1414H (corresponding to May 10, 1994). The paid-up capital of the company 1,333,333,330 SR from 133,333,333 shares at a par value of 10 SR per share.

The principle activities of the company are to build up facilities, commercial and residential buildings, services building, public parks, tourism and residential compounds and sales or renting cash or installment, managing construction projects, build up commercial and industrial exhibition for renting or selling or managing and practicing all the necessary activities required to achieve the company objectives.The consolidated financial statements for the year ended in December 31,2016 contains the subsidiary financial statements as follow:

Subsidiary Company Origin Share capital Ownership percentage Inception year Main activity

Arabian Gulf Auctions Motor Company Riyadh 1,000,000 SR 50% 2015 Wholesale and retail trade of cars

spare parts and accessories

At 6/4/1436H (corresponding to January 26, 2015), Arriyadh Development Company and Saied Moahamed Al-Bassami Company established Arabian Gulf Auctions Motor Company (a Saudi limited liability company) with share capital 1,000,000 SR under the Commercial Registration No. 1010430118 issued in Riyadh dated 12/04/1436H (corresponding to 01/02/2015) with 50% share capital for each partner.

2- BASIS OF PREPARATION CONSOLIDATED FINANCIAL STATEMENTSThe accompanying consolidated financial statements have been prepared on the basis of historical cost in accordance with the accrual concept, and prepared in accordance with generally accepted accounting principles issued by Saudi Organization for Certified Public Accountants – SOCPA.

The accompanying consolidated financial statements have been prepared according to the consolidated financial reports standard issued by Saudi Organization for Certified Public Accountants – SOCPA on the basis of periods integration where each period form an integral part of the financial year. As a result, revenues, gains, and expenses of the period are recorded within the period.

The consolidated financial statements are presented in Saudi Riyals, which is the Company’s functional and presentation currency.

472 0 1 6

3- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESThe following is a summary of the significant accounting policies adopted by the company

Use of estimatesThe preparation of consolidated financial statements in accordance with the generally accepted accounting principles requires the use of estimates and assumptions that may affect the value of restricted assets and liabilities, and disclosure of potential assets and liabilities in the date of the consolidated financial statements, and the value of revenue and expenses were disclosure to the period of the consolidated financial statements preparation. Although these estimates and judgments are based on management’s best knowledge and events available to the management in the date of the consolidated financial statements, it is possible that actual final results differ from these estimates. These estimates and assumptions are reviewed on a continual basis and effects resulting from these accounting changes will be disclosed in the year and future period which are affected by it.

Basis of consolidated The accompanying consolidated financial statements include assets, liabilities and the results of operations and cash flows for the Company and its subsidiary (note 1). The subsidiary company is an entity controlled by the Company. The control is available when the Company can control the financial and operational policies of the entity in order to benefit from its activities. The potential voting rights currently exercised are taken into consideration to assess the control. The financial statements of the subsidiary are enrolled in the consolidated financial statements from the date of control. All significant intercompany transactions and balances have been eliminated at the date of the consolidated financial statements. Gains and losses from the Company’s internal transactions have been eliminated at the financial statements consolidation.

Cash and bank balances Cash and bank balances include cash balances, banking murabhat and other investments which can be liquidated in three months or less.

Investments in securities and funds available for sale Investments in securities and funds available for sales are reported in the accompanying consolidated financial statement at fair value in the non-current assets. Realized gains or losses on sale are recorded in the consolidated statement of income, and unrealized gains or losses are reported in the consolidated statement of shareholder’s equity section. Revenues from these investments are recorded upon the declaration of dividends distributions and the company decreases the current value for all investments and securities based on the permanent decrease in the value.

Investments in securities for trading are reported in the accompanying consolidated financial statement at market value in the current assets. Realized gains or losses on sale are recorded in the consolidated statement of income, and unrealized gains or losses are reported in the consolidated statement of income. Revenues from these investments are recorded upon the declaration of dividends distributions and the company decreases the current value for all investments and securities based on the permanent decrease in the value.

Accounts ReceivableAccounts receivable balance appear in the original invoices amount after deduction of doubtful provision against any amount inapplicable to being collected. An estimate for the doubtful receivable is made when the company cannot collect the balances and doubtful receivables are written-off when incurred. The provisions appear in the consolidated statement of income. Any subsequent recovery in the accounts receivable previously written-off is added to the revenue.

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Real estate investmentReal estate investments are recognized and represented in the buildings which are used for rental purposes or that are kept for long periods to achieve a financial return from the increase in market value below its cost net of accumulated depreciation, if any, there are no depreciation of lands, building depreciation is computed using the straight-line method over its estimated useful lives based on the following annual percentage rate.

Buildings 1.51 – 4%

Investments land include lands fully owned to the company and land shares with others, all recorded in the costs with addition to development expenses.

Property, plant and equipmentProperty and equipment are stated at cost net of accumulated depreciation. Expenditure on maintenance and repairs is expensed, while expenditure for betterment is capitalized. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Sold or disposed asset is deleted from the books at date of sale or disposal along with its accumulated depreciation. The percentage rates of depreciation are as follow:

# Description Percentage

1 Machinery and equipment 25%

2 Furniture and fixtures 25%

3 Motor vehicles 25%

Accounts payableLiabilities are recognized for amounts to be paid in the future for services, whether billed by the supplier or not.

Zakat and tax provisionZakat is a company obligation and the estimated Zakat is provided within the accompanying consolidated financial statements and is charged to the consolidated statement of income, in accordance with Zakat standards issued by the Saudi Organization for Certified Public Accountants. As it is computed approximately in accordance with the accrual concept.The zakat charge is computed at end of the year according to the actual Saudis ownership based on adjusted net income or zakat base, whichever is higher. Tax is computed at end of the year according to the actual non-Saudis ownership based on adjusted net income according to the Regulations of the Department of Zakat and Income Tax (“DZIT“) in the Kingdom of Saudi Arabia. Any difference in the estimate is recorded when the final assessment is provided.

Borrowing costThe borrowing cost which belongs to assets that are still under progress are added to the value of the assets till it becomes ready for use or sale. Borrowing cost would be recorded in the period that came after the assets was ready as an expense belong to the period.

End-of-service indemnitiesEnd-of-service indemnities, required by Saudi Arabian Labor Law, are provided in the consolidated financial statements based on the employees’ length of service.

RevenueRevenue from investment in developed land held for sale is recognized after the completion of the sale process as well as revenue from sale of investments in contribution land (Under development) is recognized upon signing the sale contract and issuance of certificate for the new owner, and revenue from rentals and operating investments property is recognized when the term of lease or

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contract is completed or service rendered. Revenue is recognized over the lease term on straight-line basis and recorded for the financial period to which it relates. Other income is recorded when earned.

ExpensesExpenses by the company comprise of management and maintenance real estate expenses and their depreciations which are classified as direct costs, other expenses are classified as general and administrative expenses.

Earnings per shareEarnings per share was calculated based on the weighted average number of normal shares as at the end of the year.

Impairment of non-current assets At each consolidated balance sheet date, the Company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount. Impairment losses are recognized as an expense immediately.

Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (cash-generating unit) in prior years. A reversal of an impairment loss is recognized as income immediately.

Foreign currency transactionsForeign currency transactions are translated into Saudi Riyals at the rates of exchange prevailing at the time of the transaction. Monetary assets and liabilities denominated in foreign currencies at the consolidated balance sheet date are translated at the exchange rates prevailing at that date. Gains and losses from settlement and translation of foreign currency transactions are included in the consolidated statement of income.

4- DEFERRED FINANCING CHARGES, NETDeferred financing charges paid to the bank by deducting from the Company’s bank current account only once with an amount of SR 5,625,000 in advance as structuring fee facilities and are amortized over the useful life of the loan. The net balance of deferred financing charges as at December 31, 2016 is 3,325,682 SR (December 31, 2015: 4,453,766 SR).

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5- CASH AND BANK BALANCESCash and bank balances at December 31, represented as follows:

2016SR

2015SR

Investment murabha deposits 35,000,000 175,437,784

Cash at banks 43,022,093 29,690,832

Total 78,022,093 205,128,616

6- ACCOUNTS RECEIVABLE, NETAccounts receivable net balances at December 31, represented as follows:

2016SR

2015SR

Accounts receivable 50,317,984 35,931,310

Provision for doubtful accounts (11,080,894) (10,605,933)

Total 39,237,090 25,325,377

7- PREPAYMENTS AND OTHER ASSETSPrepayments and other assets at December 31, represented as follows:

2016SR

2015SR

Advances to suppliers 9,647,358 10,789,125Royalties 1,108,774 2,482,867Consultation fees 1,233,018 1,233,018Employees’ custodies and loans 981,477 697,967Insurance with others 255,697 255,697 Restricted bank balances for dividendsdistribution 215,652 207,675

Accrued deposit interests 208,389 -Others 826,003 573,900Total 14,476,368 16,240,249

8- INVESTMENTS IN SECURITIES AVAILABLE FOR SALE, NETInvestments in securities available for sale at December 31, represented as follows:

2016SR

2015SR

Investments in traded shares available for sale (8A) 32,665,630 34,003,752

Investments in non-traded shares available for sale(8B) 5,000,000 5,000,000

Total 37,665,630 39,003,752

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Investments in traded shares available for saleA)

2016SR

2015SR

Investments in securities available for sale 51,948,918 50,762,875

Additions during the year 857,628 1,186,043

Unrealized (losses) gains on investments revaluation (1,678,732) 517,018

51,127,814 52,465,936

Impairment of securities available for sale * (18,462,184) (18,462,184)

Total 32,665,630 34,003,752

* During the third and fourth quarter of 2015, the company formed an impairment for securities available for sale based on the management’s estimates.

Investments in non-traded shares available for saleB)The board of directors decided at its meeting held on January 15, 2015 to enter as a partner founder in Saudi Hospitality Heritage company (Closed Saudi Joint Stock Company) located in Riyadh, with 2,000,000 share at total value 20 million SR and 8% of the company’s capital. The company paid 5,000,000 SR as a payment for its investment share and the full amount will be financed from the company’s own resources. The investment is recorded at cost due to the difficulty in determining the fair value.

9- INVESTMENTS IN FUNDS AVAILABLE FOR SALE, NETInvestments in real estate fundsA)

The board of directors decided at its meeting held on November 2, 2015 to participate in a real estate investment fund established according to the financial market organization and related executive regulations managed by Al Inmaa Investment Company licensed from the Capital Market Authority. At June 30, 2016, the fund took control over the full share of the Company’s raw land located in north east of Riyadh, the Company owns 85% and Adeer Real Estate Company owns 15%. The Company’s share value is 974,100,000 SR, the fund paid 401,100,000 SR to the Company and the remaining 573,000,000 SR represents the Company’s contribution in Riyadh First Real Estate Development Fund which reached a market value of 571,717,397 SR as at December 31, 2016 (Note 11), the movement of the investments in real estate funds is as follows:

2016SR

2015SR

Balance at beginning of the year - -

Additions during the year 573,000,000 -

Unrealized losses from investments revaluation (1,282,603) -

Total 571,717,397 -

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Investments in funds available for saleB)During the fourth quarter in 2016, the Company’s management decided to invest in Al Mubarak for Trading Fund owned by Arabian National Investment Company (Open Fund) licensed from the Capital Market Authority which is compatible with legitimate standards and regulations at cost 455,000,000 SR which reached a market value of 455,257,090 SR as at December 31, 2016, the movement of the investments in funds available for sale is as follows:

2016SR

2015SR

Balance at beginning of the year - -

Additions during the year 455,000,000 -

Unrealized gains from investments revaluation 257,090 -

Total 455,257,090 -

10- PROJECTS UNDER CONSTRUCTION Projects under construction represent in:

OutaiqaMarket

Al-Zaheera development

project

Al-Thomama project

Othercontracts

& projectsTotal

As of December 31,2016:

Beginning of the year 127,424,380 1,426,570 872,135,494 42,318,190 1,043,304,634

Additions during the year 56,551,509 - 13,232,710 3,031,682 72,815,901

Transferred during the year (Note 11) - - (885,368,204) (1,445,000) (886,813,204)

End of the year 183,975,889 1,426,570 - 43,904,872 229,307,331

As of December 31, 2015:

Beginning of the year 51,798,511 1,426,570 847,770,075 14,179,055 915,174,211

Additions during the year 75,625,869 - 24,365,419 36,016,601 136,007,889

Transferred during the year - - - (7,877,466) (7,877,466)

End of the year 127,424,380 1,426,570 872,135,494 42,318,190 1,043,304,634

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11- REAL ESTATE INVESTMENTS, NETReal estate investments represent in:

LandsLands on which

buildings are constructed

Buildings Total

Cost

Beginning of the year 215,379,924 401,428,705 856,672,583 1,473,481,212

Additions during the year (Note 10) 885,368,204 - - 885,368,204

Disposals during the year * (888,499,977) - - (888,499,977)

End of the year 212,248,151 401,428,705 856,672,583 1,470,349,439

Accumulated depreciation

Beginning of the year - - 234,643,519 234,643,519

Charge for the year - - 19,804,628 19,804,628

Disposals during the year - - - -

End of the year - - 254,448,147 254,448,147

Net book value

December 31, 2016 212,248,151 401,428,705 602,224,436 1,215,901,292

December 31, 2015 215,379,924 401,428,705 622,029,064 1,238,837,693

* Disposals during the year are represented in sale of the Company’s share in the raw land located in north east of Riyadh and land pieces from Al-Shorouq (Note 9).

12- PROPERTY, PLANT AND EQUIPMENT, NETProperty, plant and equipment represent in:

Machinery and equipment

Furniture and fixtures Motor vehicles Total

Cost

Beginning of the year 8,574,734 4,753,573 1,577,620 14,905,927

Additions during the year 174,641 51,982 - 226,623

End of the year 8,749,375 4,805,555 1,577,620 15,132,550

Accumulated depreciation

Beginning of the year 7,934,853 4,728,931 1,062,312 13,726,096

Charge for the year 240,857 13,850 175,150 429,857

End of the year 8,175,710 4,742,781 1,237,462 14,155,953

Net book value

December 31, 2016 573,665 62,774 340,158 976,597

December 31, 2015 639,881 24,642 515,308 1,179,831

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13- ACCOUNTS PAYABLEAccounts payable at December 31, represented as follows:

2016SR

2015SR

* Accrued removed real estate 29,104,800 29,104,800

Accrued contributions Al-Shorouq land 23,264,318 -

Others 14,672,652 12,912,230

Total 67,041,770 42,017,030

* This amount represents accruals to real estate owners which was removed as per the decree order no. 4/B/2732 at 8/3/1412H and the owners did not demand their dues till December 31, 2016.

14- ACCRUED EXPENSES AND OTHER PAYABLESAccrued expenses and other payables at December 31, represented as follows:

2016SR

2015SR

Advances from lessee 16,651,786 26,385,527

Sundry payables 15,288,485 17,382,328

Insurance for others 12,988,144 10,827,541

Other provisions 14,142,172 14,542,172

Contractors retention 9,355,876 9,043,576

Accrued wages and other benefits 6,509,748 5,018,612

Accrued board of directors’ attendance allowance 81,000 102,000

Others 5,699,902 6,728,518

Total 80,717,113 90,030,274

15- DEFERRED REVENUEDeferred revenue is represented in the revenue from investment property rental contracts which does not belong to the year ended December 31,2016 amounting to 59,278,221 SR (December 31, 2015: 32,855,509 SR).

16- DUE TO RELATED PARTYDue to related party at December 31, represented as follows:

Name Relationship 2016SR

2015SR

Saied Mohamed Al-Bassami Company Partner in the subsidiary company 4,099,442 4,124,442

The major balances resulting from the transactions with the related party included in the • accompanying consolidated financial statements are financing transactions.

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17- DIVIDENDS PAYABLEThe balance in the consolidated financial statements represents the remaining balance for the amounts which are (declared in the common general assembly meeting) dividends distribution from previous years which the shareholders did not demand till December 31, 2016 amounting to 57,810,422 SR (December 31, 2015: 52,312,012 SR).

18- LONG-TERM LOAN AND CURRENT PORTIONOn December 17, 2014, the Company has signed a long-term financing agreement with the Al-Inmaa bank for the value of SR 450,000,000 for a period of 5 years from the signing date to finance the purchase of part of the raw land in the north-east of Riyadh city. During the year, the land was sold to Riyadh First Real Estate Development Fund. The agreement stated a two-year allowance period, the first installment amounting 150 million SR falls due in December 17,2017 which is classified in the current liabilities. An amount of SR 5,625,000 was paid as structuring fee facilities which was charged as deferred financing charges (Note 4) to be amortized over the useful life of the loan, in addition to financing expenses paid annually.

19- ZAKAT AND TAX PROVISION

(A)- Total zakat and tax provision, represented as follows:

2016SR

2015SR

Zakat provision Note (19B) 22,722,414 17,225,647

Tax provision Note (19C) 163,220 -

Total 22,885,634 17,225,647

(B)-Zakat provision at December 31, represented as follows:

2016SR

2015SR

Beginning of the year 17,225,647 13,993,376

Formed during the year 13,379,854 7,883,087

Paid during the year (7,883,087) (4,650,816)

End of the year 22,722,414 17,225,647

(C)-Tax provision for current shares owned by non-Saudis at December 31, represented asfollows:

2016SR

2015SR

Beginning of the year - -

Formed during the year 163,220 -

End of the year 163,220 -

(D)-The company has submitted all the Zakat declarations for the previous years up to 2015, and obtained the Zakat clearance up to 2006. The company objected on the Zakat clearance for the years 2005 and 2006 and they are waiting a reply from DZIT.

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20- STATUTORY RESERVEIn accordance with the Regulations for Companies and the Company’s Articles of Association in the Kingdom of Saudi Arabia, the Company established a statutory reserve by the appropriation of 10% of net income until the reserve equaled 30% of the share capital. This reserve is not available for dividend distribution.

21- REVENUERevenue for the years ended December 31, represented as follows:

2016SR

2015SR

Revenue from sale of investment lands 992,181,041 196,277,036

Operational revenue 152,854,249 136,667,168

Rental revenue 90,728,536 92,362,869

Total 1,235,763,826 425,307,073

22- COST OF REVENUECost of revenue for the years ended December 31, represented as follows:

2016SR

2015SR

Cost of revenue from sale of investment lands 888,499,977 41,785,272

Operational costs 28,374,606 27,964,400

Rental costs 21,241,728 22,077,379

Total 938,116,311 91,827,051

23- GENERAL AND ADMINISTRATIVE EXPENSESGeneral and administrative expenses for the years ended December 31, represented as follows:

2016SR

2015SR

Employees’ salaries and benefits 13,817,934 11,755,352

Provision for doubtful accounts 536,323 1,453,279

Maintenance 834,838 776,508

Marketing and advertising 389,790 582,464

Professional and consultation fees 589,744 520,000

Board of directors’ attendance allowance 249,000 291,000

Depreciation 264,482 244,532

Electricity and water 282,846 208,436

Bank charges 746,485 139,546

Service contracts 135,221 127,188

Others 1,797,106 25,449

Total 19,643,769 16,123,754

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24- OTHER INCOMEOther income for the years ended December 31, represented as follows:

2016SR

2015SR

Revenue from investment in shares and murabha 9,704,750 1,954,542

Revenue from Al-Adel project and Bin Haian building 714,366 617,201

Others 198,088 108,816

Total 10,617,204 2,680,559

25- CONTINGENT LIABILITIESThe company had as of December 31, 2016, capital commitments for supervision contracts and implementation of various development projects amounting to 107,758,998 SR (December 31, 2015: 148,309,304 SR).There is a legal suit on Al Shorouq land which is owned by the company based on the official deed at a book value of 31,850,931 SR and the net book value of buildings constructed on it amounted to 46,045,050 SR, such amounts are shown as a part of real estate investments. The judgement was issued to cancel the retention on the land, which gives the Company the right to sell. The Company is currently selling these lands and transferring the ownership as per this judgement.

26- DIVIDENDS DISTRIBUTIONThe usual general assembly agreed in its meeting held on 21/07/1437H (corresponding to 28/04/2016) on the recommendation of the board of directors to distribute 173,333,333 SR, which represents 13% of the capital in cash dividends for the year 2015 by (1.30 SR per share).The board of directors agreed in its meeting held on 26/10/1437H (corresponding to 31 July 2016) as per the resolution no. 8/2/8/2016 to distribute semi-annual cash dividends amounting 66,666,666 SR by (50 Halala per share).

27- SEGMENT INFORMATIONThe segment information is attributable to the Company’s activities and business as approved by Company’s management to be used as a basis for the financial reporting preparation and consistent with the internal reporting process. Transactions between the business segments are conducted as another parties’ transactions.

Segments’ assets, liabilities and the operational activities comprise items that are directly attributable to certain segment and items that can reasonably be allocated between various business segments. Unallocated items are included under joint assets and liabilities.

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The following summary financial information sector in Saudi Riyal as of 31 December 2016, 2015 respectively according to the nature of the activity:

Operating Leasing Sale of Contri-bution land

Joint assets and liabilities Total

As of December 31, 2016:

Total assets 304,853,109 1,186,303,823 24,170,859 1,130,558,779 2,645,886,570

Total liabilities 34,839,557 83,878,462 52,773,878 579,178,535 750,670,432

Revenue 152,854,249 90,728,536 992,181,041 - 1,235,763,826

Gross profit 124,479,644 69,486,807 103,681,064 - 297,647,515

As of December 31, 2015:

Total assets 441,185,009 1,002,858,458 899,438,126 229,992,325 2,573,473,918

Total liabilities 38,725,025 65,247,083 476,652,749 114,878,536 695,503,393

Revenue 136,667,168 92,362,869 196,277,036 - 425,307,073

Gross profit 108,702,768 70,285,490 154,491,764 - 333,480,022

28- FINANCIAL INSTRUMENTS AND RISK MANAGEMENTFinancial instruments carried in the consolidated balance sheet mainly consist of bank balance, accounts receivables, other assets, investments, accounts payable, accrued expenses and other non-current liabilities. Credit riskCredit risk is the risk that one party will fail to discharge an obligation and will cause the other party to incur a financial loss. The company seeks to reduce its credit risk with respect to customers by regular monitoring of outstanding receivables.

Liquidity riskLiquidity risk is the risk that the company will encounter difficulty in raising funds to meet commitments associated with financial instruments. Liquidity risk may result from an inability to sell a financial asset quickly at an amount close to its fair value. The company manages its liquidity risk by ensuring that the necessary funds are available when needed.

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Currency riskCurrency risk is the risk that the value of financial instruments will fluctuate due to changes in foreign exchange rates. The company’s main transactions are in Saudi Riyals. Management keeps monitoring the associated currency risk which is mostly not material.

Fair valueFair value is the amount for which an asset could be exchanged, or a liability settled between knowledgeable willing parties in an arm’s length transaction. As the Company’s financial statements are prepared under the historical cost convention, differences can arise between book value and fair value estimates. Management believes that the fair values of the Company’s financial assets and liabilities are not materially different from their carrying values.

29- GENERALThe figures in these consolidated financial statements are rounded to the nearest Saudi Riyal.

30- COMPARATIVE FIGURES Certain figures for the comparative year have been reclassified to conform with the presentation in the current year.

31- APPROVAL OF FINANCIAL STATEMENTS These consolidated financial statements have been approved by the board of directors on 24 Rabi Al-thani 1438H (corresponding to January 12, 2017). The board of directors recommended to the next general assembly which will be dated later to distribute cash dividends to shareholders for the second half of year 2016 by 80 Halala per share which represent 8% of the nominal value per share totaling SR 106,666,666. As the Company previously distributed cash dividends for the first half of year 2016 by 50 Halala per share, the total cash dividends distributed in year 2016 by SR 1 and 30 Halala per share amounting SR 173,333,333.

Attameer Plaza III