Annual Report 2005
  • 01 Board of Directors
  • 02 Message to our Shareholders
  • 03 Consolidated Financial Statement

  • Sabih Taher Darwish Masri
    Chairman, Board of Directors

    Khaled Sabih Taher Masri
    Vice Chairman, Board of Directors
    (As of May 19th 2005 in succession of Ibrahim Abu Ragheb)

    Dr. Ahmed Saeed Al Sherif
    Member / Representing Libyan Arab Foreign Investment Company

    Yanal Kamal Jameel Bustami
    Member / Representing Social Security Corporation

    Osama Ismail Ahmed Dabbas
    Member / Representing Social Security Corporatio

    Moh’d Osama Jawdat Sha’sha’a
    Member / Representing Jordan Insurance Company

    Issam Halim Jerias Salfiti
    Member / Representing Union Bank for Savings & Investment

    Kamil Abdul Rahman Ibrahim Sadeddin
    Member / Representing  Al Massira Investment Company

    Abdul Rahman Bin Ali Bin Abdul Rahman Al Turki
    Member

    Yassin Khalil “Moh’d Yassin”  Talhouni
    Member

    Nafeth Saleh Odeh Mustafa
    Member

    Yazid Adnan Mustafa Mufti
    Member

    The Late Mus’ab Ahmad Elias Khorma
    Member/ Representing Cairo Amman Bank (The late Mus’ab Khorma was appointed to the board on  July 21st 2005 succeseding Ibrahim Abu Ragheb who resigned on May 4th 2005, The late Mus’ab Khorma was killed during the horrific attack on the Grand Hyatt Amman on Nov.9th 2005)

    Saleh Mohammed Abdul Baqi Refai
    General Manager

    Allied Accountants
    Auditors

    Ittqan Law Firm Co.
    Legal Advisor

  • The Board of Directors & I are delighted to welcome you to Zara Investment (Holding) Company’s 12th annual General Assembly. It is with great pleasure that we meet today to review the performance of your company over the past year. As you may recall within my last year’s message to the Shareholders I highlighted our positive outlook for the future insofar as your company is concerned. Whilst our operating income during 2004 covered 58% of the company’s depreciation cost, in 2005 we were able to achieve an operating income that fully covered the depreciation cost while showing a net profit of JD 2,010,135.

    The first ten months of Year 2005 showed an impressive increase of 47% in the hotels net operating profit in comparison with the same period for 2004. The barbaric attacks that hit three of the capital’s hotels, of which the Grand Hyatt Amman was one, caused a slow down in the growth rate for the reminder of the year. Inspite of the November 9th attack, the company’s total operating revenue for 2005 witnessed a growth of 18% totaling JD 48,486,683 compared with JD 40,995,111 in 2004. The operating profit witnessed an equally impressive growth 29% totaling JD 18,639,788 compared to JD 14,424,240 for 2004. The average occupancy rate for the company’s hotels increased from 61% in 2004 to 67% in 2005, while achieving an increase in the average room rate from JD 56 in 2004 to JD 64 in 2005. 

    The company’s investment and development activitiesfor 2005 comprised of the renovation and expansion of the Movenpick Resort and Spa Dead Sea beach front, Ayla residence at the Movenpick Resort Aqaba, outlets at the Grand Hyatt Amman, and block C at the Hotel Intercontinental Jordan.

    Further more the company is constructing Zara car park that will serve Grand Hyatt Amman complex. In addition to the above, the comapny has began constructing the Zara Hotel at Tala Bay as well as developing the master plan for Ras Al-Yamaniya Project in Aqaba.

    Finally, the Board of Directors and I would like to take this opportunity to extend our gratitude and endless appreciation for the tireless efforts and dedication of the staff of the company as well as that of its subsidiaries.

    Furthermore, I would like to assure you that we shall begin the year 2006 with continued zealousness and a sense of responsibility that shall keep on permeating your company driving it forward into additional success and prosperity.

    Sabih Masri
    Chairman of the Board

  • To the shareholders of Zara Investment Company (Holding Company)
    Amman - Jordan

    We have audited the accompanying consolidated balance sheet of Zara Investment Company (Holding Company) as of December 31, 2005, and the related consolidated statements of income, changes in equity and cash flows for the year then ended.  These consolidated financial statements are the responsibility of the Company's Board of Directors.  Our responsibility is to express an opinion on these consolidated financial statements based on our audit.

    We conducted our audit in accordance with International Standards on Auditing.  Those

    Standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall consolidated financial statements presentation.  We believe that our audit provides a reasonable basis for our opinion.

    In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of Zara Investment Company (Holding Company) as of December 31, 2005, and the results of its operations and its cash flows for the year then ended in accordance with International Financial Reporting Standards.

    The Company maintains proper books of account and the accompanying financial statements and financial information presented by the Board of Director’s report are in agreement therewith.

    Amman – Jordan
    April 2, 2006

    Allied Accountants