Title: Announcement regarding issuance of Disciplinary Board Resolution No. (50/2024 Disciplinary Board) (44/2024 Authority) and imposition of a fine against: 1- Dar Al Thuraya Real Estate Company, 2- Chairman of the Board of Directors and Vice Chairman of the Board of Directors, 3- (3) Members of the Board of Directors 4- Former CEO of the Company for violating the rules of Listing, and Corporate Governance

Announcement regarding issuance of Disciplinary Board Resolution No. (50/2024 Disciplinary Board) (44/2024 Authority) and imposition of a fine against: 1- Dar Al Thuraya Real Estate Company, 2- Chairman of the Board of Directors and Vice Chairman of the Board of Directors, 3- (3) Members of the Board of Directors 4- Former CEO of the Company for violating the rules of Listing, and Corporate Governance

For the following reasons:

First: Dar Al Thuraya Real Estate Company violated the provision of Article (1-14) of Module Twelve (Listing Rules) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:

It was proven to the CMA , through reviewing the financial statements of Dar Al Thuraya Real Estate Company for the year ending 31/12/2023, that it repeatedly failed to implement International Accounting Standard No. "IAS40" on "Investment Properties", as the Company listed a property worth KWD 1,575,000 (one million five hundred and seventy-five thousand Kuwaiti dinars) under the item "Investment Properties" attained through real estate financing that was not settled directly between the Company or its subsidiaries, as the real estate financing is settled between the financing party and a related party (a major shareholder in the Parent Company), as the revenues and obligations related to the aforementioned property are received and deducted through the bank account of the related party.

Second: Members of the Board of Directors of Dar Al Thuraya Real Estate Company that are:

1. Chairman of the Board of Directors of Dar Al Thuraya Real Estate Company.
2. Vice Chairman of the Board of Directors of Dar Al Thuraya Real Estate Company.
3. Member of the Board of Directors of Dar Al Thuraya Real Estate Company.
4. Member of the Board of Directors of Dar Al Thuraya Real Estate Company.
5. Member of the Board of Directors of Dar Al Thuraya Real Estate Company.

It was proven to the CMA their violation of the provision of Item (5) of Article (3-7) of Module Fifteen (Corporate Governance) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:

The Board of Directors of the Company repeatedly failed to perform their duties regarding Dar Al Thuraya Real Estate Company’s failure to apply International Accounting Standard No. “IAS40” on “Investment Properties”, as the Company included a property worth KWD 1,575,000 (one million five hundred and seventy-five thousand Kuwaiti Dinars) under “Investment Properties” attained through real estate financing that was not settled directly between the Company or its subsidiaries, as the real estate financing was settled between the financing party and a related party (a major shareholder in the Parent Company), and that the revenues and obligations related to the aforementioned property are received and deducted from the bank account of the related party.

Third: Former CEO of Dar Al Thuraya Real Estate Company.

It was proven the violation of the provisions of Item (4) of Article (3-10) of Module Fifteen (Corporate Governance) of the Executive Bylaws of Law No. 7 of 2010 and its amendments:

For repeatedly failing to perform his duties regarding Dar Al Thuraya Real Estate Company’s failure to apply International Accounting Standard No. “IAS40” on “Investment Properties”, as the Company listed a property worth KWD 1,575,000 (one million five hundred and seventy-five thousand Kuwaiti Dinars) listed under “Investment Properties” attained through real estate financing that was not settled directly between the Company or its subsidiaries, as the real estate financing is settled between the financing party and a related party (a major shareholder in the Parent Company), and that the revenues and obligations related to the aforementioned property are received and deducted through the bank account of the related party.

The Resolution included the infliction of the following penalty: -

"First: Levying a fine against Dar Al Thuraya Real Estate Company in an amount of KWD 10000 (ten thousand Dinars) for the attributed violation.

Second: Levying a fine against Members of the Board of Directors of Dar Al Thuraya Real Estate Company that are:

1. Chairman of the Board of Directors of Dar Al Thuraya Real Estate Company.
2. Vice Chairman of the Board of Directors of Dar Al Thuraya Real Estate Company.
3. Member of the Board of Directors of Dar Al Thuraya Real Estate Company.
4. Member of the Board of Directors of Dar Al Thuraya Real Estate Company.
5. Member of the Board of Directors of Dar Al Thuraya Real Estate Company.
6. Former CEO of Dar Al Thuraya Real Estate Company.

in an amount of KWD 2000 (two thousand Dinars) on each one of them for the attributed violation.”

In this regard, the CMA emphasizes the implementation of CMA Law and its Executive Bylaws on all persons dealing in securities activities, and urges them to comply with these Laws in order to promote investors' confidence, create a sound investment environment, and implement the Law according to the principles of fairness, transparency, and integrity in line with the best international practice.