A’ayan Leasing and Investment Company

Climate Impact & Sustainability Data (2016, 2019, 2023)

The Company has complied with Capital Market Authority’s requirements and instructions in respect of corporate governance. In line with these instructions, the Company has prepared the necessary policies and procedures, formed the required committees and accordingly disclosed all required information.
The Company was able to meet all standards and rules for implementing corporate governance and prepared a detailed report in accordance with the requirements of the Capital Markets Authority. The report on corporate governance was included in the Company's Annual Report for 2016.

The continued economic and political conditions in the region and their adverse impact on the markets. These conditions resulted in the Company’s inability to implement the Plan agreed upon with creditors due to poor liquidity and sharp decline in prices.
Significant liquidity concerns due to global, regional and local liquidity and credit deterioration.

The Company has been able to reduce the liabilities to creditors from KD 333 million to KD 160 million by the end of 2016.
Management strive to diversify funding sources and assets are managed with liquidity in mind, maintaining a healthy balance of cash, cash equivalents, and readily marketable securities.
Submitted a petition to reschedule the remaining portion of its debts in implementation of the restructuring plan.

Provides medical insurance advantages to its employees and their families according to their job grades, as well as sports programs for employees.

Continued compliance with regulatory frameworks and the application of effective and proactive internal controls.
Prepared reports to meet all standards and rules related to the implementation of corporate governance.
Established an independent unit for risk management.
Formed a board risk committee to assist the board in carrying out its key role.
Set an internal control system that provides reasonable assurance of effective and appropriate controls.

Rising political and economic tensions and events that affected investor confidence.
Rejection of the Company’s final settlement request for financial restructuring of its debt by the Financial Stability Court.
Deterioration of the financial position of Abyaar Real Estate Development Company (an associate).
Decline in the rental values of investment properties and demand for residential units due to high supply and low demand.

Challenged the court ruling for cassation.
Impaired the value of net investment in Abyaar.
Liaising with creditors to strengthen their support and pursue a final settlement of outstanding debt.
Developed a new strategy for A’ayan Kuwait Auto Company focusing on sustainability, customer service, and technological transformation.
Introduced modern online services to accelerate transactions and make things easier for customers.
Launched marketing campaigns to attract new customer segments.

Frameworks Used: IFRS

Third-party Assurance: Ernst & Young- Al-Aiban, Al-Osaimi & Partners – Bader Adel Al Abduljader

Various sports activities for employees and healthy meal services for employees and their families.
Sensitive lighting and water outlet systems to rationalize consumption and preserve the environment.

Global economic challenges including inflation, the Russian-Ukrainian war, and the Gaza conflict impacting supply chains and raw material prices.

Implemented a strategy to rebuild the balance in the company’s assets, carefully studied expansion of the leasing sector, and converted low-income generating assets with assets of better yield.