PLACE IN PLACE 2019 FIND YOUR FIND YOUR ABU DHABI ANNUAL REPORT ANNUAL

Aldar Annual Report 2019

116 82 80 62 56 52 50 26 22 18 15 12 10 8 4 2 Contents Island. now Beach Raha and Reem Al Saadiyat Al Island, livework, destinations Those visit. include and Yas Island, delivering destinations desirable where communities can of urbanisation enhance the UAE’s the and by city capital continued it has to shape established, Since was Aldar region. East Middle wider the Arab and Emirates known United the in most well of one the developments, itis iconic its through and, Dhabi Abu in estate developer, owner and manager real PJSC leading Properties the is Aldar 76 GOVERNANCE STRATEGIC REPORT

Board of Directors’ Report Directors’ of Board Corporate Governance Report Executive Management Directors of Board Sustainability Risk Management Review Financial KPIs Operational Review Strategy Our Overview Market Dhabi? Abu Why CEO’s Statement Statement Chairman’s At aGlance Highlights of 2019 HighlightsFinancial 184 130 128 127 126 125 124 118 FINANCIAL STATEMENTSFINANCIAL Supplementary InformationSupplementary Statements Financial Consolidated the to Notes Flows of Cash Consolidated Statement Equity in of Changes Consolidated Statement of Comprehensive Income Consolidated Statement Statement Consolidated Income Position of Financial Consolidated Statement Independent Auditors’ Report

Aldar Annual Report 2019 1 2 Strategic Report (2018: 2.6 BILLION) AED 4.0bn AED Off-plan development sales BILLION) (2018: 6.3 AED AED 7.1bn Revenue Highlights Financial HIGHLIGHTS FINANCIAL 2015 4.6 2016 6.2 2017 6.2 2018 6.3 2019 7.1 (2018: BILLION) 39 AED AED 41bn Total assets (2018: 2.6 BILLION) AED AED 2.8bn profit Gross

2015 2.2 2016 2.6 2017 2.7 2018 2.6 2019 2.8 (2018: AED 1.6 BILLION) (2018: 1.6 AED 1.7bn AED Net operating income from recurring revenue assets (2018: BILLION) 1.9 AED AED 1.9bn Net profit developers. master of one region's the and market capitalisation, recognised most listed is largest the real group byAldar estate Dhabi in Abu 2015 2.6 2016 2.8 2017 2.0 2018 1.9 2019 1.9 (2018: 24FILS) 24 fils Earnings per share (2018: 14.0FILS) fils 14.5 Dividend per share 2015 10.0 2016 11.0 2017 12.0 2018 14.0 2019 14.5

Aldar Annual Report 2019 3 4 Strategic Report and potential employment in the future. the in employment potential and provide opportunities for learning, knowledge transfer, to together closer academia and industry bring to together work will organisations two The leaders. future develop to UAE university with partners Aldar 1.6bn AED reach sales Alreeman Total 2019. January in launch public at out sold fully Alreeman Alreeman. of Unprecedented demand following the public launch of 2019Highlights FEBRUARY JANUARY DEMAND DEMAND UNPRECEDENTED FUTURE LEADERS FUTURE DEVELOPING

asset managementasset portfolio. Aldar’s to million 100 AED of (NOI) income operating net annualised an add will transaction non-cash The deal. billion 1.2 AED in centre Airways Etihad and Plaza Etihad of ownership full acquired Investments Aldar FEBRUARY OWNERSHIP FULL to unlock value and recycle capital. recycle and value unlock to assets revenue recurring stable mature, its of one monetises Investments Aldar 6.6%. of yield implied an achieving million, 289 AED for tower Murjan Al of Sale MARCH TOWER AL MURJAN OF SALE

of Alreeman, Aldar launched Alreeman II. Alreeman launched Aldar Alreeman, of success the day. Following launch on sales in million 420 AED generates II Alreeman destination. retail prime Ain’s Al as position Mall’s Jimi Al secures and asset retail largest second Aldar’s to (GLA) area leasable gross sqm 30,000 adds renovation and expansion million 400 AED new The JUNE MARCH LAUNCH SALES LAUNCH 420MILLION AED OPENING EXPANSION MALL JIMI AL can acquire freehold title on land within investment zones. zones. investment within land on title freehold acquire can Abu Dhabi Government announces that foreign nationals locations. Dhabi Abu prime across plots land enabled demonstrating the demand for high-quality, infrastructure Dhabi, Abu Cityscape at Lea of launch Successful sales. in million 400 AED over generating Cityscape during out sells Lea APRIL LEA SELLS OUT SELLS LEA across our retail portfolio. retail our across brands new bring to is deal The group. Apparel with portfolio retail its across stores 23 for deal major finalises Aldar JUNE 23 NEW STORES NEW 23 ANNOUNCED

Aldar Annual Report 2019 5 6 Strategic Report and key infrastructure works at Saadiyat Island. Island. Saadiyat at works key infrastructure and free-zone entertainment and media twofour54 new the Falah, Al at development housing national a new The deal includes three major development projects; 2019 (continued) of Highlights accounting for 71% of the final allocation. final the 71% of for accounting investors global with oversubscribed, times six than more was It issuer. Dhabi-based Abu an by offering sukuk 10-year first the issued Aldar the highest non-government rating in the region, rating, credit Investments’ by Aldar Supported OCTOBER JULY DHABI GOVERNMENT GOVERNMENT DHABI AWARDED BY ABU DEVELOPMENT BILLION 5 AED MILLION SUKUK SUKUK MILLION 500 US$ RAISES SUCCESSFULLY INVESTMENTS ALDAR

of all nationalities. of all nationalities. infrastructure enabled land plots open to buyers 306 features community million 722 AED The reaches AED 120 million. million. 120 AED reaches Watan Al Sandooq to Total contribution across its development inventory. portfolio discounts off’ ‘one of 10 days with event promotional major first its announces Aldar OCTOBER SEPTEMBER SEPTEMBER 10 10 ON SAADIYATON ISLAND COMMUNITY LAND FIRST RESIDENTIAL ALDAR’SMARKS SAADIYAT RESERVE SANDOOQ AL WATAN TO 36 MILLION AED ALDAR CONTRIBUTES PERFECT THE

and in the communities where Aldar operates. Aldar where communities the in and environment economy, the on impact apositive has it that ensure and business does it way the improve to efforts Company’s the on focuses report The UAE economy. the within value unlock to strategy sustainability procurement new anchor to programme ICV NOVEMBER NOVEMBER (ICV) PROGRAMME IN-COUNTRY VALUE PROCUREMENT ITS NEW ALDAR ESTABLISHED COMPANY (ADNOC), NATIONAL OIL WITH DHABI ABU IN COLLABORATION REPORT SUSTAINABILITY INAUGURAL LAUNCHES ALDAR

and Mina Zayed. Zayed. Mina and Island Saadiyat in land enabled infrastructure for Dhabi Abu of Government the with deal aswap in exchanged Island Lulu and East Beach Raha Al saw which A move Island. Saadiyat on District Culture Dhabi’s Abu of heart the in destination landmark 8billion AED an project, Grove Saadiyat the launched Office, Executive Dhabi Abu the of Chairman and Council Executive Dhabi Abu the of Member Zayed, Bin Mohammed Bin Khalid Sheik DECEMBER NOVEMBER OF ABU DHABI ABU OF GOVERNMENT THE WITH DEAL SWAPA LAND ALDAR ANNOUNCES SAADIYAT GROVE DEVELOPMENT, ITS MOST ICONIC ALDAR ANNOUNCES

Aldar Annual Report 2019 7 8 Strategic Report around our residential developments. convenient community-focused retail located the and Mall, Jimi Al and Yas Mall as such retail, destination both addresses that Dhabi Abu within footprint retail asubstantial developed has Aldar tenants. corporate and individual of amix to leased which across is Dhabi, Abu residential portfolio owns also a business significant management asset developments on payment plans to buyers. The actively launches off-plan in-demand residential through its development business, where it Aldar predominantly sells residential property business. management asset our of value the maximising through and bank land our of monetisation shareholder value through the development and long-term create to market estate real Dhabi Abu the of knowledge and experience our We use At aGlance RETAIL RESIDENTIAL OUR MARKETS STRATEGYOUR BUSINESS STRUCTURE BUSINESS ESTATE GROUP REAL LEADING DEVELOPMENT MANAGEMENT ALDAR Abu Dhabi in 2018. in Dhabi Abu World, Bros. Warner of opening the included recently most which Dhabi, Abu of centre entertainment and leisure the as Yas of Island activation continued and airport the to proximity their from benefit that Yas on Island hotels of cluster aunique owns Aldar atenant. as Dhabi Abu to exposure Government of the significant a has and islands Dhabi Abu across located tenants. The commercial is portfolio principally top-tier attracts that portfolio office commercial A Grade predominantly ahigh-quality, acquired years, recent more in and, developed has Aldar HOTELS COMMERCIAL ASSET MANAGEMENT page 18. page on more Read page 22. on more Read OVERVIEW MARKET STRATEGY OUR Development Management and Asset Management. Development Asset Management and of Group areactivities the split into areas, main two The portfolio. real property estate diversified and where of it owns Dhabi, bank Abu land asignificant within Emirate the are based activities primary Aldar’s KEY KEY DESTINATIONS Nareel Island under development. were residential units 8,000 2019, afurther 31 at December As acrossresidential units Emirate. the completed approximately 26,000 has inception, since and, Dhabi Abu within developer largest the is Aldar DEVELOPMENT MANAGEMENT Khalidiya village Khalidiya Alghadeer Sdeirah, Seih Reflection Meera Reem Central Park Boutik Gate Arc The and Towers Gate The Shams BOUTIK Towers &Sky Sun The Bridges AL AIN

Mina Zayed Zayed Mina Remal Mall Mall Jimi Al Shabhat Plaza Village Oyoun Al

Worldtrade Center Abu Dhabi and Rashid Bin Mohammed Burj Al Bateen Park Bateen Al AL REEM ISLAND

Baniyas Towers

Al Mamoura

Al Gurm Al ISLAND SAADIYAT

Mangroves Anantara Eastern

Daman House

International Tower

North Park North Jawaher Saadiyat retail Saadiyat Saadiyat district cooling assets Club Golf Beach Saadiyat Club Beach Saadiyat Cranleigh Abu Dhabi Grove Saadiyat Saadiyat Reserve Mamsha Al Saaiyat retail, commercial and hotels. and commercial retail, residential, classes; asset real estate main four across split predominantly is portfolio The Dhabi. Abu within all assets, of billion 20 AED of managementasset portfolio adiverse manages and owns Aldar ASSET MANAGEMENT AL RAHA AL RAHA BEACH

Al Rayyana Al Nakhl Al Sas Club Golf Dhabi Westin Abu

Al Hadeel Al Al Bandar Zeina Al Al Muneera Etihad Plaza HQ Building Retail Community Beach Raha Al

Al Merief Plaza Raha Al

ISLAND YAS Lea Ansam Mayan Water’s Edge Acres Yas Yas West Alreeman ii ii Alreeman Alreeman Motor World IKEA page 26. page on more Read REVIEW OPERATIONAL Yas Plaza Hotels Yas Plaza ACE Hardware Mall Yas Yas WHotel Links Yas

Aldar Annual Report 2019 9 10 Strategic Report its global reputation. strengthen and appeal Dhabi’s Abu grow to continue will attractions other and parks entertainment museums, world-class truly of array abroader in investment continued Emirate’s the Dhabi, Abu Louvre the and site historical Hosn Al Qasr the as such attractions cultural leading to home Already gaining several prestigious accolades for tourism. destination, diverse culturally and tolerant safe, apremium, as emerged has Dhabi Abu tandem, In Report. Business’ 2019 ‘Doing Bank’s World the in worldwide 12th rank to places 23 up moving Dhabi Abu in have translated years, two last the over introduced policies Government other and 21 Ghadan Emirate. the in roots of Abu Dhabi, have strengthening started their businesses, the who unique understand proposition and investors Incentivised immediate. was community and economy the on impact 2019,of the January in effect into came 21, Ghadan programme, As the AED 50 billion socio-economic accelerator progress. continuing Emirate’s the to contributing in role active an played has Aldar and in live and visit work, invest, to destination class aworld as status its elevating towards strides major several took Dhabi 2019, Abu In year our 15th sincemarks inception. year for aremarkable on Aldar, which It gives great me to pleasure report ValuedDear Shareholder, Statement Chairman’s GROWTH LONG-TERM SUSTAINABLE

we are excited to share with the world. the with share to excited are we experience aunique is away –this walk ashort just are which museums, all see to able be will visitors project, this of middle in Standing Dhabi. Abu of landscape urban the transform to set is Museum, Guggenheim the and Museum National Zayed the as such landmarks cultural prominent future and Dhabi Abu Louvre connects that project use amixed- Grove, Saadiyat investors. and businesses tourists, for destination apremier as Island the of shareholders. It will also enhance the attractiveness its for value long-term further create to Aldar allow will mandate, infrastructure 2 billion AED awarded anewly- with along Grove, Saadiyat and Reserve Saadiyat Saadiyat, Al Mamsha through beachfront the of development The Island. the on land prime of majority the owns today which Aldar, for opportunity locations, represents exciting a particularly sought-after most Dhabi’s Abu of one Saadiyat, zones. these in purchase they properties and land of freehold the own to non-Emiratis allow 2019 to in introduced law game-changing the in included zones investment are –both destinations Yas Island and Island Saadiyat high-value the on developments future and current focusing is Company The Dhabi. Abu avibrant of abeneficiary and to acontributor both is investor, Aldar and developer estate real main Emirate’s the As

the year to prepare for the next fifty years and and years fifty next the for prepare to year the as 2020 dedicated UAE has The diversification. Government continues to on focus economic efforts the as boost afurther get will and 2020 into carry will sentiment market in uplift the ahead, Looking 2019. for share per fils 14.5 of distribution dividend acash proposed has Board Our growth. dividend uninterrupted of year another in reflected to delivering exceptional shareholder value is operational performance in 2019. Our commitment and financial robust deliver to us enabled which momentum growth maintaining and excellence operational maximising on focused strategy Our macroeconomic conditions. and cycle market the of stages varying through are able to protect and enhance shareholder value we that ensure will and ahead years the in growth of engine amajor be will It acquisitions. accretive yield- through portfolio its expand to and assets, to create at value existing opportunity significant has Investments Aldar market, asset a maturing from Benefitting thrive. to continues Investments, Aldar arm, management asset grow,to our As our development management arm continues

Chairman Mohamed KhalifaH.E. Al Mubarak all. you Ithank team, management executive and Board the of behalf on and base, support solid this of because possible only are achievements Our employees. our of dedication and passion the our shareholders, the loyalty of our customers and of trust unwavering the leadership, Nation’s our of guidance and endorsement the for grateful We are plan. this supporting in role active an play to proud is Aldar –and openness and dynamism sustainability, on afocus planning, careful requires This media. of economy, education, infrastructure, health and areas the in leaps giants make to efforts coordinate performance in 2019.” in performance deliver robust and operational financial to us enabled which momentum growth operational excellence and maintaining maximising strategy on “Our focused

Aldar Annual Report 2019 11 12 Strategic Report Saudi Arabia and Egypt. and Arabia Saudi as such markets promising other in partnerships through as well as Dhabi, Abu of market home our in growth for opportunities new of advantage take to placed well very is business development The andlifestyle cultural destination. high-end and hub business aregional as emergence Dhabi’s Abu to central is which District, Cultural Saadiyat the in position prime Aldar’s enhanced from well-developed infrastructure. The transaction benefit will which Island, Saadiyat and Yas Island our development business on key locations such as of focus strategic the 2019, supported December in Government Dhabi Abu the with exchange land The handover phase. Jawaher and Yas Acres entering the customer- Saaiyat, Al Mamsha with pipeline, development our across progress strong making while launches, new of by aseries driven 53%, up billion, 4.0 AED of sales development record 2019, reported we In businesses. our across expansion further drive to capital surplus significant creates bank land valuable planned development of the Company’s diverse and solid dividends to shareholders. In parallel, well- of delivery consistent for foundation the is assets Aldar’s of portfolio mature, income-generating and development. investment property of balance optimal an through income stable and growth deliver to designed model, business robust our from benefitting is Company The to prepare for continued in coming growth the years. market transactions cycles, while major conducting to create ability an demonstrating through value in 2019, producedAldar astrong performance Statement CEO’s GROWTH FOR PRIMED

was six times oversubscribed. oversubscribed. times six was sukuk 10-year million $500 its when October, in confidence from international institutional investors of vote astrong received Investments Aldar portfolio. asset unique and large this of quality the reflecting 89%, approximately at resilient remained occupancy Average capital. reallocate and value realise to Aldar Tower allowed Murjan Al of sale the while extension, Mall Jimi Al the and Centre Airways Etihad Plaza, Etihad of additions accretive value by the driven was growth This billion. 1.7 AED 6% to increased business, management, which includes the Aldar Investments asset from income operating 2019, net In yield-accretive acquisitions. through diversify and expand to opportunity significant sees business the and in importance gaining is profit, gross the to 60% contributing now is which business, investment property billion 20 AED our Investments, Aldar Meanwhile, 60% Aldar Investments' contribution to gross profit

inaugural Sustainability Report that Report documents inaugural Sustainability an by launching framework arobust establishing in step first important an 2019, took we In technologies. industry property new and smart of use the and processes building to materials, and architecture action on every element of our operations - from taking and reconsidering mean will That footprint. carbon our reduce and communities our support to sustainability, on by example lead to determined We are ambitions. growth and development Emirate’s the serve we Dhabi, Abu in company property leading the As stakeholders. our all of trust the retain to are we if crucial is manner sustainable a in business conducting that recognise We also standards. reporting improved by instituting transparency enhance and practice, best with structures and decision-making processes comply governance a as driver for success, ensuring robust We have emphasised expansion. and pillars: customer centricity, operational excellence three on focuses creation value for strategy Aldar’s 22,000. over to years two last Academies tripled has student numbers in the properties under management, while Aldar 15,000 has now Provis, business, solutions management estate real Our performance. financial our to contributors significant becoming are and well developing also are businesses adjacent Aldar’s SUSTAINABILITY INTEGRAL TO STRATEGY INTEGRAL SUSTAINABILITY

Chief Executive Officer Dhiyebi Al Talal results. optimal achieve to deployment of our financial resources and expertise the for path aclear have we set and leaders, visionary Dhabi’s by Abu driven being is that transformation economic well-planned and exciting the of shareholder value. The Company is at the centre significant create to capacity Aldar’s in confident I am in. live and invest abusiness, up set to place attractive more even an Emirate the making are reforms, visa and regulatory including policies, business-friendly of a range of infrastructure and other development. Meanwhile, 5billion AED manage to contracts of award Aldar’s by evidenced as economy, real the into filter to starting is programme stimulus fiscal A wide-ranging to stimulate business activity. starting is agenda pro-growth Government’s the when atime at equilibrium approaching is market the and years, recent in managed well been has Supply acorner. turning is market estate real Dhabi Abu the that signs clear see now we and cycle, economic the in adownturn during years recent in resilient highly remained has Aldar best-practice metrics. against ourselves measuring and targets setting efforts, its up step to continue will Company The intentions. and initiatives Aldar’s POSITIVE MARKET DYNAMICS

Aldar Annual Report 2019 13 14 Strategic Report (2018: 6%) 8% Abu Dhabi world oil reserves best the of one has Dhabi Abu headwinds. economic navigate and adapt to it allowing funds wealth sovereign of form the in reserves fiscal strong its to thanks approach agile and aflexible has Dhabi Abu by 2020. 3.7 million reach to expected is and people million 2017 3.0 to and 2008 between by 80% increased population the estimates 2019. S&P in capita per $87,000 about at Ratings Global by S&P estimated world, the in levels capita per GDP highest the of one maintains GDP. Dhabi Abu Dhabi’s Abu of half around up makes and reserves gas world’s the of 5% and reserves oil world’s the of 8% holds Emirate The in to city. thriving alarge Dhabi and Abu transformed populationwith relatively and growth high income, has million people. Rapid development coupled urbanisation, and emirate populous second most inUAE the close with to three is UAE’s the of Dhabi Abu island-city and the capital federal 700 on coastline, kilometres Gulf of territory country’s Arabian Emirates Unitedthe Arab (UAE). Occupying over 80% of the of is largest the seven the Dhabi Abu emirates that make up Dhabi? Why Abu WHERE WE OPERATE OPERATE WE WHERE LEADING CITIES LEADING WORLD’S THE OF INVESTING IN ONE

government efficiency. for second and efficiency, business for globally first UAE ranked The worldwide. fifth and region MENA the in overall first UAE ranked 2019, the Index Competitiveness World IMD the to According S&P. to GDP, to according 7% only of debt Government low and 281% of GDP to assets foreign sovereign substantial with world, the in highest the of one is position fiscal Dhabi’s Abu strengths. external and fiscal Emirate’s the on outlook astable with by Moody's, Aa2 and Fitch and by S&P AA rated been having region, the in ratings credit (2018: 3%) 5% Abu Dhabi world gas reserves

Aldar Annual Report 2019 15 16 Strategic Report the Emirate’s development. sustainable ensure and plan overall the deliver to monitored continuously are which programmes 83 out sets strategically the sectors, blueprint important five across goals 25 With vision. its achieve to growth Emirate’s the guide to ablueprint 2030, Vision Dhabi Abu the is transformation this Leading expansion. Emirate’s the in role agreater play to continue will and economy Dhabi Abu today’s of elements integral are tourism manufacturing, banking and finance, aviation and estate, Real future. economic and political social, Emirate’s the of framework the form to intended are which pillars, policy nine across vision its support to development to create a knowledge-driven economy is currently investing heavily in innovation and Government The source. revenue major the as gas its economy away from its dependence on oil and diversify to is strategy long-term Emirate’s The (continued) Dhabi? Why Abu

for tourists and residents alike. cater that sectors, retail and aviation transport, the to alift provide and Airport International Dhabi Abu through flying passengers of numbers rising the serve will Terminal Midfield new The revenue streams. non-hydrocarbon diversify further and Emirate the into tourism drive to continue will – that Dhabi Abu Louvre The example –for Island Saadiyat –and park theme World Bros. Warner example – for Yas Island both on attractions of anumber are There market. estate real the into positively feed plan Dhabi Abu the support which initiatives the of Many to average 2.5% through 2019-22 (S&P) 2019-22 through 2.5% average to expected is Growth Bank), (UAE Central 2019 in 2.9% reach to estimated is growth GDP Real (2018: 1.9%) 2.9%

based countries in the Middle East. East. Middle the in countries based knowledge and liberal most the of one of capital operating environment and its reputation the as transparent comparatively Emirate’s the given invest, and work live, to destination attractive an prudent approach to investment, Abu Dhabi remains amore and oil of price current the given moderate to expected is growth While economy. its diversify to which from base asolid provided has reserves its utilise successfully to ability its industry, hydrocarbon its of depth the for renowned is Dhabi Abu While section. Overview Market the see information further For years. ten last the over developers and investors by both raised concerns the of many addresses and Emirate the into investment more attracting towards step apositive is law new The sector. estate real dynamic yet afair create to serves that regulations imposing market by enhancing standards industry and property professional and transparent a more create to aims which 2016, in Law, introduced Estate Real Dhabi Abu the is evolution this Key to tenants. and landlords both protecting at aimed regulation of introduction by the supported decade, last the over matured has market property Dhabi’s Abu world. the in cities liveable most the of one as status Dhabi’s Abu cementing further Island, Reem Al and Beach Raha Al Yas Island, include that destinations the development of various world class and iconic for responsible was It Dhabi. Abu of diversification and maturity growth, the in role apivotal plays Aldar Index 2019”Index World Competitiveness IMD the in region MENA “UAE ranked the first in AED 931bn Nominal GDP in 2018 1.1% Bank) (UAE Central 2019 in growth GDP real Non-hydrocarbon ABU DHABI DIVERSIFYING AND SHAPING IN ROLE ALDAR’S

4.9% (SCAD) 2018 in GDP nominal of 4.9% up made activities estate Real 4.6% (ADDED) 5years past the over 4.6% of rate growth annual compound Abu Dhabi real estate activities experienced 70% (S&P) 2016 and 2008 between growth Population

Aldar Annual Report 2019 17 18 Strategic Report in 2020 and AED 11 billion in 2021. 2021. in billion 11 AED and 2020 in billion 20 2019, AED in billion 19 AED of spending pledged has Government the 21, Ghadan of living within the Emirate. Since the announcement of standard overall the improve and expenditure employment growth, increase consumer foster participation, sector private and SMEs of growth promote to is aim Its liveability. and investment, society, knowledge and innovation and business pillars: strategic four across activities on focuses programme The economy. period and build a sustainable knowledge-based 2019-2021 the over growth stimulate to designed package fiscal billion 50 AED an is 21 Ghadan remains the key driver of GDP, with the Government Government the GDP, of with key driver the remains industry hydrocarbon the strategy, UAE’s economic the of forefront the at is diversification Whilst long-term economic growth. Emirate’s the enhance to and (SMEs) enterprises sized medium and small of development the support to aims that 21’, ‘Tomorrow aprogramme as English to translates 21’, which ‘Ghadan included has This (FDI). investment direct foreign and growth economic announcements and legislative changes to support fiscal of aseries made has Government Dhabi Abu the years, several past the Over Overview Market GHADAN 21 to expect in 2020to expect beyond. and what on outlook an and provides performance overview an sector on hospitality. residential, and classes: This section retail,asset office predominantlyAldar operates within Dhabi’s Abu four real main estate

expatriates to become long-term residents. encouraging of goal the with legislations, visa to Cabinet of Ministers announced amendments the country’s future GDP. Furthermore, the UAE in 2018, in which could uplift provide a significant petrochemicals and mid-stream into strategy investment proposed (ADNOC) Company’s Oil National Dhabi Abu approved also Council Petroleum Supreme by 2030. The bpd 5million and 2020 by bpd 4million 2018 to in (bpd) day per barrels 3million approximately from capacity production oil increase to commitment its announcing towards economic diversification. towards diversification. economic journey Dhabi’s Abu supporting 5years, next the over workforce the into jobs skilled highly 600 bring to projected is deal The ecosystem. tech the into forward leap ahuge marks agreement The ambitions. tech Dhabi’s Abu cement further and promote to initiative 21 aGhadan of part forms Dhabi Abu in headquarters regional its establish to by SenseTime A decision study Case innovation and entrepreneurial success. enabler, completes the ecosystem, creating an environment for business the ADGM, region. the in innovation tech for point a focal create to network investment its leverage will Fund Vision SoftBank the while partner, technology aglobal as role acentral play will Microsoft 71, Hub leading Company Investment Mubadala With transformational businesses in the region. establish and scale build develop, entrepreneurs and start-ups help to is mission Its (ADGM). Markets Global Dhabi Abu and SoftBank Microsoft, Mubadala, between partnerships comprises which framework, 21 Ghadan the under initiative an is 71 Hub study Case HEADQUARTERS DHABI ABU IN TO ESTABLISH ITS REGIONAL AGREEMENT WITH SENSETIME STARTUPSTO SUPPORT 71’ ‘HUB HUB TECH 520AED MILLION

UAE enterprises based for foreign investors. of ownership company 100% of introduction the through participation societal expatriate greater promote to aims also legislation the Moreover, 10 to years. up of periods visa extended from benefit to groups all with entrepreneurs, pioneers, medical practitioners and industry including verticals, value high specific targeting at aimed legislation with 2018, November in announced were visas long-term of award the for Provisions refining and petrochemicals complex in the Ruwais Ruwais the in complex petrochemicals and refining plan will development support of the world’s largest The Council. Petroleum Supreme by the approved been has which plan, expenditure capital 5-year billion 486 AED an of announcement the following growth significant of aperiod for set is ADNOC AMENDMENTS TO VISA LEGISLATION VISA TO AMENDMENTS INVESTMENT STRATEGY INVESTMENT &PETROCHEMICALS PETROLEUM

and into the wider economy. chains supply through filter to expected effect amultiplier with growth, long-term supporting key to is sector by 2030. The bpd 5 million by and 2020 bpd 4million around to capacity production oil boost and Dhabi Abu of region scientists and specialised talent based within the UAE. the within based talent specialised and scientists accredited highly UAE or the in invested 10 AED of million aminimum with investors at aimed is category visa 10-year The levels. university and school high at students outstanding and invested 500,000 AED of capital a minimum with entrepreneurs 5million, AED over of value investment an with investors estate real at aimed is category visa 5-year The home. long-term UAE their the make and roots their deepen to people more by encouraging society, UAE of fabric the of part remain expatriates ensuring at aimed visas long-term announced Government UAE Federal the 2018, In study Case YEAR AND GOLDEN VISAS IN THE UAE THE IN VISAS GOLDEN AND YEAR 5-YEAR, 10- OF INTRODUCTION THE

Aldar Annual Report 2019 19 20 Strategic Report continued rate of declines likely to slow. slow. to likely declines of rate continued face to likely prices sales and rental with supply, new of completion amid levels wider market is seeing rising vacancy the portfolio, managed Aldar’s within 89% at healthy remain rates occupancy Whilst locations. zone key investment around focused be to continue will units residential new of supply near-term The Island. Saadiyat and Yas Island Beach, Raha Al Island, Reem Al as such communities, planned master in were units delivered of majority The 261,000. approximately to stock total bringing units, 4,000 of delivery the saw market residential Dhabi Abu 2019, the During residential developments. newer to 'flight-to-quality' continued by a supported market, wider the 2019, outperforming in rates rental (LfL) like-for-like in decline a5% saw portfolio Aldar’s residential management asset improved management of supply. developer space that resulted has bysupported consolidation in the residential, for strong relatively remain market. Overall supply-demand dynamics the of bottoming apotential signalling year, the of course the over slowed declines value sales and rental residential 2019, but in trends deflationary The market continued to experience Residential market supply units) (‘000 (continued) Overview Market and hospitality real estate segments during 2019 and provides an outlook for the coming years. coming the for outlook an provides 2019 and during segments estate real hospitality and office retail, residential, Dhabi’s Abu of performance the of overview an provides section This OUTLOOK RESIDENTIAL 2015 246 2016 249 Current Supply 2017 252 2018 257 2019 261 2020 273 11 Supply Future 2021 285 13 workplace strategy. strategy. workplace in changes wider and work, contract short-term in increase an to due traction gaining are which environments, working flexible and space office fitted smaller for demand of pockets new are there tenant demand remains However, soft. as rates occupancy and rents market wider for downside further be to likely still is there 2020-21, in delivery for set 0.24 around with million sqm significant, not is pipeline office future the Whilst year. the during rates like-for-like in decline a3% 2019, of with end the at as occupancy a92% sustained space, A Grade the in positioned predominantly is which portfolio, commercial Aldar’s significantly. B stock differ Grade and A Grade prime between rates Vacancy 2019. 31 at December as GLA of sqm million 3.8 around at steady remaining accommodation office of amount total the 2019, with during completions office commercial limited were There (million sqm GLA) Office sqm market supply (million OUTLOOK COMMERCIAL 2015 3.3 2016 3.5 Current Supply 2017 3.5 2018 3.7 2019 3.8 2020 0.11 3.9 Supply Future 2021 0.13 4.0 struggle to compete with the destination. the with compete to struggle will that assets retail older across more felt be to likely is however, this sector, retail the to pressure further add to set is supply New Island. Reem Al on Mall completion of the super-regional Reem predominantly driven by the anticipated is which 2022, of end by the delivered be to set space retail new of GLA sqm 420,000 approximately is There creation. elements that generate destination towards formats retail traditional more away from move to and proposition, retail their re-think to landlords forcing entertainment outlets remains strong, F&B and for However,UAE. demand the in felt being also is trend this and e-commerce, of penetration growing the to adjusting are globally retailers Fashion ahead of the prevailing market rate. well 89%, at occupancy maintaining portfolio retail Aldar’s with destinations, retail quality high for demand strong remains there drop, this Despite Mall. Yas at experienced 9% of declines rental like-for-like into translated this portfolio, retail Aldar’s In prevails. market tenant’s a as increasing incentives landlord with have generally weakened during 2019, malls retail primary within Rents activity. sales lower from have suffered retailers Dhabi’s Abu consumer, squeezed already an and sentiment consumer weaker With 2019. 31 at December as GLA sqm million 2.8 around to stock retail overall brought which GLA, sqm million 0.14 with CentralMaryah Mall, a super-regional mall Al of completion the 2019 saw deliveries, supply new limited of aperiod Following (million sqm GLA) sqm (million supply market Retail OUTLOOK RETAIL 2015 2.6

2016 2.6 Current Supply 2017 2.6 2018 2.7 2019 2.8 2020 0.10 2.9 Supply Future 0.32 2021 3.2 recovering from a low point in the market. the in point alow from recovering is sector the albeit 2021, and 2020 during strongly grow to continue to sector hospitality the expect we aresult, As Museum. National Zayed the as such investments cultural and airport new the includes This economy. oil-based an from away move and diversification drive help to sector tourism the in heavily investing is Dhabi Abu of Government The market. the to keys new 2,000 approximately bring will which areas, Island Saadiyat and Peninsula Marina the in rooms new comprises 2021 and 2020 for pipeline hospitality Dhabi’s Abu approximately 30,000. at stable relatively remained keys of number total The closed. hotels two while 2019, during market the to delivered property new major one only with market, the entering supply new limited Performance also was by supported profits. and revenues stronger into translated which growth, occupancy and (ADR) rate daily average strong witnessed keys, hotel 2,900 over Aldar’s hotel which portfolio, includes Emirate. the into and conferences that brought visitors various other entertainment, sporting, and ADIPEC UFC, Olympics, Special 1, Formula included which calendar, events active by an 2019, supported during class asset estate real performing top Aldar’s was sector hotel The Hotel market supply (‘000 keys) supply market Hotel OUTLOOK HOSPITALITY 2015 27 2016 27 Current Supply 2017 28 2018 30 2019 30 2020 31 1 Supply Future

2021 32

1 Abu Dhabi prime rental clock Source: JLL Source: RT C H RS ACCELERATING GROWTH RENTAL SLOWING GROWTH RENTAL Hotel Commercial

Retail Residential Q4 2018 Q4 2019 Q4 H RS C C RS RT H RT BOTTOMING BOTTOMING FALLING RENTS RENTS RENTS RENTS OUT

Aldar Annual Report 2019 21 22 Strategic Report in everything we do. we everything in sustainability, quality, technology and innovation by embedding first customers our Place and value for our customers and shareholders. and manager that creates memorable experiences developer estate real regional aleading Become strategic intent and commitment to stakeholders. our of cornerstone the form for. These stands Aldar Vision brings aspirations, a desire to uphold the values commitmentand to stakeholders. of form cornerstone our strategic the These intent for. what our and DNA weour Mission defines stand visionOur demonstrates what we to aim achieve, while Strategy Our OUR MISSION OUR VISION STRATEGIES AND INNOVATIVE INVESTMENTS THROUGH SOUND RETURNS SUSTAINABLE boundaries, to achieve our mutual objectives. objectives. mutual our achieve to boundaries, across together, work we team, one We are do. we everything in beyond and above by going ourselves We differentiate committed. and dynamic responsive, We are dignity. and inclusiveness respect, with everyone treat and diversity We value customer journey. We engage and deliver an exceptional COLLABORATIVE INNOVATIVE AGILE &DIVERSE INCLUSIVE CUSTOMER CENTRIC OUR VALUES

FINANCIAL HORIZON FINANCIAL OUR STRATEGIC THEMES STRATEGIC OUR PROPOSITION CUSTOMER VALUE FIND OUT MORE ON THE NEXT PAGE NEXT THE ON MORE OUT FIND SHAREHOLDER REAL ESTATE ESTATE REAL COMPANY… FINANCIAL MAXIMISE MAXIMISE HORIZON WE ARE A A ARE WE TRUSTED TRUSTED VALUE

… THAT CREATES CREATES THAT … EXPERIENCES… GROW PROFITS PROFITS GROW GROWTH AND AND GROWTH AND ENHANCE AND ENHANCE OPERATIONAL MEMORABLE MEMORABLE EXPANSION EXCELLENCE MARGINS

& DIGITAL TRANSFORMATION PEOPLE, INNOVATION … WHICH YIELD YIELD … WHICH SUSTAINABLE SUSTAINABLE CENTRICITY AND DRIVE DRIVE AND RETURNS. CUSTOMER GROWTH EXPAND EXPAND

Aldar Annual Report 2019 23 24 Strategic Report Our Strategy (continued) STRATEGIC THEMES STRATEGIC and improving efficiencies. improvingand efficiencies. our shareholders by continually growing our portfolio for returns financial maximum drive to is objective Our in an effective and efficient manner. efficient and effective an in budget, and manage our and investments assets within and time on developments our deliver we that ensure to efficiency chain supply and processes operational optimising through agility achieve to Aims customer experience. our customers and delivering exceptional engaging through trust creates that proposition Encompasses our corporate customer value and innovative marketing strategies. turnaround developments on quality and acquisitions; quicker markets; new into growth sustainable through assets our of value the increase to Aims and adopt disruptive technology. an innovativenurture andcreative culture; Attract and maintain high performing talent; talent; performing high maintain and Attract FINANCIAL HORIZON OPERATIONAL EXCELLENCE OPERATIONAL CENTRICITY CUSTOMER GROWTH AND EXPANSION GROWTH AND DIGITAL TRANSFORMATION PEOPLE, INNOVATION AND

• • • • • • • • • • • • • • • • • • • • • • STRATEGIC OBJECTIVES STRATEGIC • • • • • • • • • • • • • • • • • • • • • • Maximise shareholderMaximise value. Grow profits and enhance margins. enhance and profits Grow Expand and drive sustainable growth. sustainable drive and Expand and agreed quality. budget within time, on delivered are projects our Ensure Maximise and unlock the potential of our assets. our of potential the unlock and Maximise Optimise our processes and strengthen our value chain. Embed environment and quality in all aspects of the business. the of aspects all in quality and environment Embed Drive value and synergy through investment. through synergy and value Drive Engage customers and end users in all aspects of the business. the of aspects all in users end and customers Engage Deliver exceptional customer experiences. and unified marketing. unified and programmes loyalty through intimacy customer Create Integrate and promote social and environmental sustainability. environmental and social promote and Integrate Explore and invest in regional/international expansion. Grow our local portfolio in a sustainable and agile manner. agile and asustainable in portfolio local our Grow Ensure optimal utilization and growth ratios of our assets. our of ratios growth and utilization optimal Ensure Actively engage with our key stakeholders to drive growth. drive to key stakeholders our with engage Actively Leverage data for more informed decision making. of the business. aspects all in technology leading and disruptive Deploy Empower and embed innovation in all aspects of the business. the of aspects all in innovation embed and Empower Attract and retain high-performing talent. high-performing retain and Attract Develop and engage our people. Nurture an innovativeNurture creative and culture.

• • • • • • • 2019 ACHIEVEMENTS • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • growth on 2018 (14.0 fils per share). per fils 2018 (14.0 on growth a4% representing share, per fils 14.5 of adividend recommended Board issuer. Dhabi-based Abu by an offering sukuk public 10-year ever first the Launched future earnings. on visibility providing billion, 4.4 AED to backlog revenue development Grew respectively. 13.3% and 38.0% at businesses management development and management asset for policies financial within well maintained debt Gross 6%. up billion, 1.7 AED Highest ever net operating income (NOI) from recurring income assets of of assets income recurring from (NOI) income operating net ever Highest 53%. up billion, 4.0 AED of sales development record Achieved (+4%). profit net and (+14%), (+5%) revenue profit across gross delivered growth financial Headline Implemented operating model enhancements across the business. level agreements excellence. and service service the improving processes, centre operations network and permit work across contractors 300+ and tenants 1,000+ for workflows the Automated operations. &Treasury Finance in Automation Process Robotic Implemented portfolio. properties investment across 89% at maintained occupancy Average function. sustainability aprocurement of Establishment policy. welfare workers and programme ICV our of Establishment business. the across sustainability Establishment of a to department sustainability develop, govern and enable pillars: people, community, environment and economy. Issuing Aldar’s 2018 and inaugurating Report our sustainability Sustainability Aldar. of owners community all to available made services these of 80% than More services. all with implemented portal customer Agile feedback. understand and insights gain experience, customer overall improve to customers our of voice the report and analyse gather, to Qualtrics implemented Successfully customer experience and engagement. landowners, and automated development service processes, improving our Implemented a self-service for customer developers third-party portal and post sales services and general queries. customers with buying or renting, accessing their portfolio of investments, investments, of portfolio their accessing renting, or buying with customers assist can that 'Zeina' chatbot based AI with enabled App Customer Aldar Aldar Academies tripled student numbers to 22,000 over last two two last over 22,000 to numbers student tripled Academies Aldar hub. commercial anew of development and infrastructure housing, national across Dhabi Abu of Government by the projects development of billion 5.0 AED awarded was Aldar Dhabi. Abu of landscape urban the transform to Grove, Saadiyat project, 8billion AED Launched Centre. Airways Etihad and Plaza Etihad of Acquisition consolidate development focus on key destinations including Saadiyat Island to Aldar enabled Dhabi Abu of Government the with swap land Strategic Khidmah and Provis transformation drove revenue and profit growth. profit and revenue drove transformation Provis and Khidmah years. academic successors for critical roles throughout the organisation. rigorousUndertook succession assessment process to identify potential ideas. innovation employee 192 of out 12 in Invested SMEs. support and innovation foster to Partnered with Hub 71, MITEF, UAEU, Techstars, TAMM/ADDA MITEF, StartAD UAEU, Techstars, 71, and Hub with Partnered technology. state-of-the-art using services smart estate real create to avision with Pass' 'UAE adopt UAE to the in developer property First employee app. Aldar the through digitised were self-services employee of 70% than More

2020 PLANS • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • with 2019. 2019. with line in sales, development in Target billion 4.0 AED across adjacent businesses. across adjacent businesses. growth and additions by 2019 asset driven assets, revenue recurring from NOI billion Target 1.8 AED development management businesses. and management asset both for policies financial with line in levels debt gross Maintain development management businesses. performance of both asset management and Recommend a dividend on based underlying welfare policy. workers and programme ICV our Launch Process Automation across the business. the across Automation Process Implement process through efficiency Robotic effectiveness of our internal processes. processes. internal our of effectiveness and agility ensure to functions 19 across 21+ workflows than more improve and Revisit our portfolio. across Programme Loyalty Aldar’s Launch Implement our Energy Monitoring Programme. more centric services and products. deliver and customers our from insights Drive our portfolio. platforms/services. fulfilment and facing customer our all enhancing and Streamlining Implement our sustainability programme across programme sustainability our Implement Ensure regional business presence. Execute our international sales strategy. Execute on acquisition transactions. acquisition on Execute Drive more growth in our adjacencies. our in growth more Drive capital funds. capital venture proptech global leading with Partner Digitise our innovation management platform. design and delivery of our developments. enabled digitally on focused programme BIM &Construction)/ Design (Virtual VDC Delivering decision making. decision informed and insights intelligent smarter drive to platform analytics and data big Implement develop and retain our people. Implement a strategy to continuously engage,

STRATEGIC THEMES STRATEGIC in an effective and efficient manner. efficient and effective an in budget, and manage our and investments assets within and time on developments our deliver we that ensure to efficiency chain supply and processes operational optimising through agility achieve to Aims improvingand efficiencies. our shareholders by continually growing our portfolio for returns financial maximum drive to is objective Our and adopt disruptive technology. an innovativenurture andcreative culture; talent; performing high maintain and Attract and innovative marketing strategies. turnaround developments on quality and acquisitions; quicker markets; new into growth sustainable through assets our of value the increase to Aims customer experience. our customers and delivering exceptional engaging through trust creates that proposition Encompasses our corporate customer value OPERATIONAL EXCELLENCE OPERATIONAL FINANCIAL HORIZON DIGITAL TRANSFORMATION PEOPLE, INNOVATION AND EXPANSION GROWTH AND CENTRICITY CUSTOMER

• • • • • • • • • • • • • • • • • • • • • • STRATEGIC OBJECTIVES STRATEGIC • • • • • • • • • • • • • • • • • • • • • • Ensure our projects are delivered on time, within budget budget within time, on delivered are projects our Ensure growth. sustainable drive and Expand margins. enhance and profits Grow shareholderMaximise value. Nurture an innovativeNurture andcreative culture. Develop and engage our people. talent. high-performing retain and Attract business. the of aspects all in innovation embed and Empower of the business. investment. through synergy and value Drive business. the of aspects all in quality and environment Embed Optimise our processes and strengthen our value chain. assets. our of potential the unlock and Maximise and agreed quality. Deploy disruptive and leading technology in all aspects aspects all in technology leading and disruptive Deploy Leverage data for more informed decision making. growth. drive to key stakeholders our with engage Actively assets. our of ratios growth and utilization optimal Ensure manner. agile and asustainable in portfolio local our Grow Explore and invest in regional/international expansion. sustainability. environmental and social promote and Integrate marketing. unified and programmes loyalty through intimacy customer Create Deliver exceptional customer experiences. business. the of aspects all in users end and customers Engage

2019 ACHIEVEMENTS • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • successors for critical roles throughout the organisation. rigorousUndertook succession assessment process to identify potential ideas. innovation employee 192 of out 12 in Invested SMEs. support and innovation foster to TAMM/ADDA MITEF, StartAD UAEU, Techstars, 71, and Hub with Partnered technology. state-of-the-art using services smart estate real create to avision with Pass' 'UAE adopt UAE to the in developer property First employee app. Aldar the through digitised were self-services employee of 70% than More growth. profit and revenue drove transformation Provis and Khidmah years. academic two last over 22,000 to numbers student tripled Academies Aldar hub. commercial anew of development and infrastructure housing, national across Dhabi Abu of Government by the projects development of billion 5.0 AED awarded was Aldar Dhabi. Abu of landscape urban the transform to Grove, Saadiyat project, 8billion AED Launched Centre. Airways Etihad and Plaza Etihad of Acquisition consolidate development focus on key destinations including Saadiyat Island to Aldar enabled Dhabi Abu of Government the with swap land Strategic pillars: people, community, environment and economy. Issuing Aldar’s 2018 and inaugurating Report our sustainability Sustainability Aldar. of owners community all to available made services these of 80% than More services. all with implemented portal customer Agile feedback. understand and insights gain experience, customer overall improve to customers our of voice the report and analyse gather, to Qualtrics implemented Successfully customer experience and engagement. landowners, and automated development service processes, improving our Implemented a self-service for customer developers third-party portal and post sales services and general queries. investments, of portfolio their accessing renting, or buying with customers assist can that 'Zeina' chatbot based AI with enabled App Customer Aldar Implemented operating model enhancements across the business. level agreements excellence. and service service the improving processes, centre operations network and permit work across contractors 300+ and tenants 1,000+ for workflows the Automated operations. &Treasury Finance in Automation Process Robotic Implemented portfolio. properties investment across 89% at maintained occupancy Average function. sustainability aprocurement of Establishment policy. welfare workers and programme ICV our of Establishment business. the across sustainability Establishment of a to department sustainability develop, govern and enable share). per fils 2018 (14.0 on growth a4% representing share, per fils 14.5 of adividend recommended Board issuer. Dhabi-based Abu by an offering sukuk public 10-year ever first the Launched future earnings. on visibility providing billion, 4.4 AED to backlog revenue development Grew respectively. 13.3% and 38.0% at businesses management development and management asset for policies financial within well maintained debt Gross 6%. up billion, 1.7 AED of assets income recurring from (NOI) income operating net ever Highest 53%. up billion, 4.0 AED of sales development record Achieved (+4%). profit net and (+14%), (+5%) revenue profit across gross delivered growth financial Headline Read more on page 50. page on more Read INDICATORS PERFORMANCE KEY Read more on page 56. page on more Read RISK MANAGEMENT

2020 PLANS • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • develop and retain our people. Implement a strategy to continuously engage, making. decision informed and insights intelligent smarter drive to platform analytics and data big Implement design and delivery of our developments. enabled digitally on focused programme BIM &Construction)/ Design (Virtual VDC Delivering Digitise our innovation management platform. funds. capital venture proptech global leading with Partner adjacencies. our in growth more Drive transactions. acquisition on Execute Execute our international sales strategy. Ensure regional business presence. our portfolio. across programme sustainability our Implement platforms/services. fulfilment and facing customer our all enhancing and Streamlining more centric services and products. deliver and customers our from insights Drive Implement our Energy Monitoring Programme. our portfolio. across Programme Loyalty Aldar’s Launch processes. internal our of effectiveness and agility ensure to functions 19 across 21+ workflows than more improve and Revisit business. the across Automation Process Implement process through efficiency Robotic welfare policy. workers and programme ICV our Launch development management businesses. performance of both asset management and Recommend a dividend on based underlying development management businesses. and management asset both for policies financial with line in levels debt gross Maintain across adjacent businesses. growth and additions by 2019 asset driven assets, revenue recurring from NOI billion Target 1.8 AED 2019. with line in sales, development in Target billion 4.0 AED

Aldar Annual Report 2019 25 26 Strategic Report Group’s financial performance. that overall the contribute of and businesses these to performance the Within each overseas. and are business severallocally core segments both to growth, pursue opportunity thata group maximises structure (AM). This point,Company journey withthe is adopting at inflection an businesses; development management management (DM) asset and developer into centred operating model, adiversified core around two evolved has business Aldar’s years, from 15 apure playOver past the Review Operational EVOLUTION OF OUR OPERATING MODEL MODEL OPERATING DIVERSIFIED destination, focus on Masterplan new new Masterplan infrastructure One businessOne 2005-2012 developer' 'Pure play'Pure structure structure business to diversify diversify to business investment into AM Split operations Delivery of key Delivery conglomerate' destinations, revenue mix 2013-2017 'Growing 'Growing independence, focus on efficiency and and efficiency on performance led performance led 'New operating'New Two business business Two Split AM and 2018-2019 DM, greaterDM, structure structure model'

capital ownership at ownership at capital independence and independence and the business level business the 'Growth focused' Greater business Group structure structure Group BEYOND 2019 free-zone. entertainment and media twofour54 new the as such infrastructure, national housing and strategic assets as such projects captures mandate This projects. estate real external manage project to Dhabi, Abu of Government the predominantly parties, third with development management business works closely the bank, land own Aldar’s developing to Further build-to-lease development. through ambitions growth their of some deliver to business management asset the with closely works focused on off-plan residential development but also is model business The city. the of growth the support to land developing strategically through bank land its of activation the on focused is business This Dhabi. Abu in owners bank land largest the of one is Aldar DEVELOPMENT MANAGEMENT DEVELOPMENT PROPERTY DEVELOPMENT MANAGEMENT DEVELOPMENT MANAGEMENT DEVELOPMENT DEVELOPMENT MANAGEMENT PROPERTY PROPERTY ALDAR

and asset management businesses. highlights across the development management operating the at look acloser takes section This cooling and construction sectors. management, facilities management, district property education, the within key businesses the management asset business includes several of part forms that segment, This management. two principle businesses, development and asset Aldar’s of offering broader the support and parallel in work that businesses strategic several owns Aldar entertainment and leisure destination. Dhabi’s Abu Yas Island, around anchored are which assets leisure and hotel of aportfolio owns Aldar conditions. market current reflect values by independent a third-party valuer to ensure their valued externally are assets these year Each income. of the asset management business’s net operating 80% over just contribute assets these Collectively income. arental collect and tenants to leased are assets These properties. commercial and residential Investment properties collectively holds Aldar’s retail, ADJACENT BUSINESSES HOSPITALITY PROPERTIES INVESTMENT ASSET MANAGEMENT ASSET ASSET MANAGEMENT ASSET HOSPITALITY INVESTMENT INVESTMENT PROPERTIES BUSINESSES ADJACENT ADJACENT

Aldar Annual Report 2019 27 28 Strategic Report on Yason Island new twofour54 media free-zone works development and of the national housing, infrastructure Government of Abu Dhabi across awards 5billion fromAED the up up business revenue gross and profit 2019 development management comprising Four development launches project Island Saadiyat focus key on destinations, including to consolidateAldar development Government enabling of Dhabi Abu Strategic 2018) (+53% versus AED 4.0 billion HIGHLIGHTS 2019 development development management. third-party and management today business are off-plan residential property across of principal development activities the The Dhabi. Abu of iconic most the destinations development and projects created has Aldar some years, 15 Over past the business. the ofSince inception, Aldar’s at development heart been the has Operational Review (continued) MANAGEMENT DEVELOPMENT 27% and land swap 1,506 units 4% development sales development sales respectively respectively with the with the

currently construction under 83% flows cash giving visibility further on future billion 4.4 Increased revenue backlog to AED awards made over 2019 Over District Cultural Island Saadiyat within the a Announcement of Saadiyat Grove, located mixed-use development located sold across all projects in contract contract in 3billion AED as at as 31 December 2019,

real estate cycle. Over the past five years, Aldar has has Aldar years, five past the Over cycle. estate real the through product residential of range a broad offer to Aldar allowed has bank land diversified This Dubai. with border the on Sdeirah Seih includes which region, mainland Dhabi Abu broader the in and locations onIsland, established Abu Island Dhabi Saadiyat and Island Reem Al on Dhabi Abu Shams Yas Island, as such key destinations from ranging Dhabi, Abu of Emirate the across stretches bank land The development. of stages various at land of sqm 70 million approximately of portfolio a diverse comprises bank land 2019, Aldar’s 31 at December As future. the in well Company the serve will and generation value of adriver be to creating Abu Dhabi’s key destinations continues destination. Aldar’s exceptional experience in the for vision aclear out sets that a masterplan creating and infrastructure developing land, raw taking from stems model business original Aldar’s 2019 Buyer demographics LAND BANKLAND 12% 3% 3% 4% 78% Other Asia Europe UAE Middle East

of products on offer to end-users and investors. and end-users to offer on products of range the widen and risk spread to destinations key co-develop to developers third-party attract to programme active an pursued has Aldar bank, land own its developing to addition In world. the in of the leading destination developers masterplan one as position its cement further to Zayed, Mina and Island Saadiyat include that destinations new acquired Aldar recently, Most Yas Island. and Island Reem Al Beach, Raha Al of locations Dhabi. These developments include the important thesupporting long-term development of Abu in instrumental are that destinations strategic for the long-term vision and development of responsible is Aldar developer, amaster as role its In of the market. 19 development projects catering to key segments across units residential off-plan 9,000 over launched AED 4.0bn AED Development sales DESTINATION DEVELOPMENT 2015 3.0 2016 3.5 2017 3.5 2018 2.6 2019 4.0

Aldar Annual Report 2019 29 30 Strategic Report in the heart of the Cultural District. Cultural the of heart the in development a mixed-use Grove, Saadiyat of launch by the complemented be soon will this and market the to options residential new 2019, bringing in developments Jawaher and Saadiyat Al Mamsha the both delivered Aldar Abu Dhabi. University York New and Dhabi Abu Cranleigh Nursery, Redwood The including offerings, educational world-class hosts also island The lifestyle. discerning a offers which Dhabi, Abu in address aprestigious is island the club, beach and course agolf hotels, 5-star several to home beachfront, a pristine With UAE Pavilion. the and Saadiyat Al Manarat centre, culture and art built purpose- the to home also is area The winners. prize by Pritzker designed –all Dhabi Abu Guggenheim The and Museum National Zayed Dhabi, Saadiyat’s vibrant Cultural District will bring together The Louvre Abu Saadiyat Marina District. and District Beach Saadiyat District, Cultural Saadiyat areas, main philosophy and low-density The masterplan. island is home to three sensitive environmentally an around created and sqkm 27 spanning development business. Saadiyat Island is a premier island destination, Aldar’s of heart the at sits now Island 2019, Saadiyat late in Dhabi Abu of Government the with swap land the 2018 and in (TDIC) Company &Investment Tourism Development from land of acquisition the Following region’s largest international store. department shopping destination with over 400 international brands and the premier Dhabi’s Abu is island, the of centre the at sits which Yas Mall, asset, retail flagship Aldar’s keys. 2,000 to close for accounting hotels Yas W and complex Yas Plaza the with Yas on Island, located is portfolio hotel Aldar’s of majority the perspective, management asset an From 2022. in completion scheduled its following Yas Island onto workers permanent 10,000 approximately bring will that free-zone entertainment and media twofour54 new the developing also is Aldar years. coming the in population island’s the increase significantly will which development, under units 3,000 than more has currently and customers to units residential 2,000 nearly delivered has To Aldar date, businesses. management asset and management development the for strategy Aldar’s to central remains Yas Island decade. past the over Dhabi Abu in witnessed growth tourism the supporting in role important an played has attractions these of delivery The arenas. concert and retail marinas, courses, golf parks, theme 1circuit, a Formula includes that hub entertainment and leisure class aworld develop to was Company’s inception. The original concept masterplan behind Yas Island the since strategy development Aldar’s of centre the at been has Yas Island Operational Review (continued) SAADIYAT ISLAND ISLAND YAS DEVELOPMENT MANAGEMENT CONTINUED

ISLAND SAADIYAT ISLAND YAS Lea Ansam Mayan Water’s Edge Acres Yas Yas West

Jawaher IKEA Saadiyat retail Saadiyat assets cooling district Saadiyat Club Golf Beach Saadiyat Club Beach Saadiyat Cranleigh Abu Dhabi Grove Saadiyat Saadiyat Reserve Mamsha Al Saaiyat Yas Plaza Hotels Yas Plaza ACE Hardware Mall Yas Yas WHotel Links Yas fountains. This is a destination that offers something for everyone. everyone. for something offers that adestination is This fountains. water peaceful and lawns landscaped choices, dining of abundance an through guests and residents to ambience awelcoming offers also Beach Raha Al pools. swimming and outlets retail clubhouse, exclusive an including facilities of array an with developments mixed-use and residential all are precincts diverse These Zeina. Al and Muneera Al Hadeel, Al Bandar, – Al next the from distinct one each landmarks, flagship four contains Beach Raha Al units, Aldar completed 3,000 over Accommodating Dubai. and Dhabi Abu linking highway main the to next located conveniently also is Beach Raha Al beachfront, natural of sqm million 5.2 Incorporating entertainment and public amenities. cultural, commercial, residential, premium of amix is Beach Raha Al handovernext on the island will be The Bridges development. 2019, Aldar’s in Meera, product, residential positioned mid-market first Aldar’s of completion Towers. Following &Sky Sun and Arc The Towers and Gate The includes Island Reem Al on community planned master- Aldar’s Park. Central Reem Towers and &Sky Towers, Sun Gate Key amenities include Repton School, Sorbonne University, Boutik Mall, surroundings. its and city the of views breathtaking with setting abeautiful in living capital in best very the offers island The Airport. International Dhabi Abu from drive a20-minute only is and bridges by five Island Maryah on centre financial new the and city Dhabi Abu of centre traditional the to connected closely is Island Reem Al KEY AL BEACH RAHA SHAMS ABU DHABI, AL ISLAND REEM DM ASSETS AM ASSETS

BEACH REEM Meera Reflection Reem Central Park Boutik Gate Arc The and Towers Gate The Shams BOUTIK Towers &Sky Sun The Bridges BEACH AL RAHA

Community Retail Community Beach Raha Al Plaza Raha Al HQ Building Hadeel Al Al Bandar Zeina Al Al Muneera

Aldar Annual Report 2019 31 32 Strategic Report 83% Sold units under development 6,509 Total units launched 13,910 mn) (AED value sales Total 5,388 Total sold units under development today. is it what Aldar making in role instrumental an played has it Aldar, for destination development active an longer no is Beach Raha Al land plotsenabled on Island. Saadiyat While investment infrastructure- with required significant that Beach Raha Al within located opportunities Government, Aldar exchanged its longer-term land Dhabi Abu the with swap land the of part As Operational Review (continued) DEVELOPMENT MANAGEMENT CONTINUED half of 2020. of half first the in market the to launched be to expected is Grove Saadiyat completion. on together museums three all connect will that Island Saadiyat of district a mixed-use development located within the cultural Grove, Saadiyat announced Aldar November, late In 4billion. AED of sales development 2019’s to achieving significantly market contributed and by the received well extremely were developments enabled land plots for villa development. All four infrastructure- located, well offering on focused predominantly projects These Reserve. Saadiyat and Lea II, Alreeman Alreeman, market: the to developments new four launched 2019, Aldar During sold. been had 83% residential units under development, of which 7,000 to close had 2019, Aldar 31 December at As bank. land diverse Aldar’s of activation off-plan residential development property through Aldar’s core development business is focused on 76% Aldar of buyers time first to 2019 in sold Units Buyer nationalities PROPERTY DEVELOPMENT DEVELOPMENT PROPERTY 17% 6% 4% 4% 1% 69% Other American Europe Asia MENA UAE

a fee-only basis. basis. a fee-only on recognised be will project infrastructure the whilst development the with associated costs and revenue full the recognise will Aldar where contracts fixed-price on based are two first The Island. Saadiyat on works infrastructure key remaining and Yas on Island free-zone entertainment and media anew scheme, housing anational develop to billion development management projects AED worth 5 major three awarded was 2019, Aldar In procurement know how. Company’s development capabilities and the utilising projects, scale large for tender to parties third with closely works Aldar business, management asset the through lease to assets off-plan residential development and developing through bank land own its developing to Further DEVELOPMENT MANAGEMENT Location Land Type Location Land Type Location Land Type TWOFOUR54 AL FALAH INFRASTRUCTURE INFRASTRUCTURE SAADIYAT Investment zone Investment Media free-zone Falah Al zone Non-investment National housing Saadiyat Island Island Saadiyat zone Investment Infrastructure work Yas Island 2015 2016

2017 +50% increase following 2017 awards guidance profit gross segmental DM

AED mn 2016-18 100 2019-21E 150

Aldar Annual Report 2019 33 34 Strategic Report risk and widens the array of products for end-users and investors. and for widens arrayrisk the end-users and of products this vision reducesto support our long-term destination development developers in Bringing development third-party and banks. of land these developer, master the As is responsible Aldar for long-term the vision Operational Review (continued) DEVELOPMENT PIPELINE Sold as at 31 Dec 2019: 2019: 31 at Dec as Sold 2019: 31 at Dec as Sold Land: Land: Land: Type: Type: Units launched: launched: Units launched: Units Location: Location: Location: AL HADEEL ANSAM Prime residential apartments Prime residential apartments Investment zone Investment zone Investment Al Raha Beach Raha Al Yas Island 233 547

98% 96%

Sold as at 31 Dec 2019: 2019: 31 at Dec as Sold Sold as at 31 Dec 2019: 2019: 31 at Dec as Sold Land: Land: Type: Land: development Type: Units launched: launched: Units Units launched: launched: Units Location: Location: Location: AL MERIEF ISLAND NAREEL Land plotsLand for villa development Exclusive land plots for villa Non-investment zone Non-investment zone HANDED OVERHANDED Nareel Island Khalifa City Khalifa

161 281 50% 96%

Sold as at 31 Dec 2019: 2019: 31 at Dec as Sold Sold as at 31 Dec 2019: 2019: 31 at Dec as Sold Land: Land: Land: Land: Type: Type: Units launched: launched: Units Units launched: launched: Units Location: Location: Location: Location: WEST YAS WEST MEERA Villa development Residential apartments Investment zone Investment Investment zone Investment Yas Island Al Reem Island Reem Al 1,017 408

91% 94%

Sold as at 31 Dec 2019: 2019: 31 at Dec as Sold 2019: 31 at Dec as Sold Land: Land: Land: Type: Type: Units launched: launched: Units launched: Units Location: Location: Location: MAMSHA AL SAAIYATMAMSHA JAWAHER Beachfront residential apartments residential Beachfront Golf-view villas and townhouses Investment zone Investment zone Investment COMMENCED HANDOVER COMMENCED Saadiyat Island Saadiyat Island Saadiyat 461 83

45% 88%

Sold as at 31 Dec 2019: 2019: 31 at Dec as Sold Sold as at 31 Dec 2019: 2019: 31 at Dec as Sold Land: Land: Land: Land: Type: Type: Units launched: launched: Units Units launched: launched: Units Location: Location: Location: Location: MAYAN YAS ACRES YAS EXPECTEDCOMPLETION: 2020 Prime residential apartments Villa and townhouse development Investment zone Investment Investment zone Investment Yas Island Yas Island 512 652

82% 93%

Aldar Annual Report 2019 35 36 Strategic Report Operational Review (continued) DEVELOPMENT PIPELINE CONTINUED PIPELINE DEVELOPMENT Sold as at 31 Dec 2019: 2019: 31 at Dec as Sold 2019: 31 at Dec as Sold Land: Land: Land: Type: Type: Units launched: launched: Units Units launched: launched: Units Location: Location: Location: Location: WATER’S EDGE THE BRIDGES EXPECTEDCOMPLETION: 2020/21 Mid-market residential apartments Mid-market residential apartments Investment zone Investment Investment zone Investment Al Reem Island Reem Al Yas Island 1,236 636 97% 96%

Sold as at 31 Dec 2019: 2019: 31 at Dec as Sold Sold as at 31 Dec 2019: 2019: 31 at Dec as Sold Land: Land: Land: Land: Type: Type: Units launched: launched: Units Units launched: launched: Units Location: Location: Location: Location: ALGHADEER REFLECTION EXPECTEDCOMPLETION: 2021 Residential land plots Residential land Mid-market residential apartments Investment zone Investment Investment zone Investment Seih Sdeirah Seih Al Reem Island Reem Al 707 192

60% 79%

Sold as at 31 Dec 2019: 2019: 31 at Dec as Sold 2019: 31 at Dec as Sold Land: Land: Land: Type: Type: Units launched: launched: Units launched: Units Location: Location: Location: ALREEMAN II ALREEMAN ALREEMAN Mid-market residential apartments plots Mid-market residential land Non-Investment Zone zone Investment Al Shamkha Al Shamka 557 1,012 85% 90%

EXPECTEDCOMPLETION: 2021 Sold as at 31 Dec 2019: 2019: 31 at Dec as Sold Sold as at 31 Dec 2019: 2019: 31 at Dec as Sold Land: Land: Land: Land: Type: Type: Units launched: launched: Units Units launched: launched: Units Location: Location: Location: Location: SAADIYAT RESERVE LEA Residential land plots Residential land Residential land plots Residential land Investment zone Investment Investment zone Investment Saadiyat Island Saadiyat Yas Island 223 238 49% 87%

Aldar Annual Report 2019 37 38 Strategic Report 7% Recurring revenues traditional structure under Aldar. the than cost lower at debt long-term raise efficiently to able is it as Aldar for value significant into translates This region. the in corporate anon-government for rating credit highest the and Baa2, of rating PJSC) credit Properties (Aldar company parent the than higher notch one rating, credit aBaa1 achieved which Investments, Aldar for rating credit astandalone was structure, new the from benefit immediate One region. the in ownership estate real for platform efficient most the create to was entity new this for basis The Investment LLC Properties ('Aldar Investments'). Aldar subsidiary, owned a100% into assets estate real rental long-term the out carved Aldar 2018, In offering. Aldar’s tobusinesses support that is complemented by portfolio several keyasset adjacent is management business focused adiverse on asset Aldar’s Operational Review (continued) AED 3.4BILLION TO GROWTH MANAGEMENT ASSET

6% Net operating income AED 1.7BILLION TO GROWTH

79 Assets across 4 sectors FY 2019 revenue split by sector split revenue 2019 FY 89% Occupancy across investment properties portfolio 2.1mn (sqm) (GLA) area leasable Gross 18.5bn (GAV) (AED) value asset Gross ALDAR OVERVIEW MANAGEMENT ASSET 28% 21% 14% 17% 20%

Adjacent Hospitality Commercial Retail Residential businesses Gross debt (loan-to-value ratio (LTV)) ratio (loan-to-value debt Gross 75% portfolio across hospitality Occupancy years 4.7 (WAULT) Portfolio weighted average lease unexpired term 38% FY 2019 NOI split by sector by sector split NOI 2019 FY 25% 7% 11% 29% 29% Adjacent Hospitality Commercial Retail Residential businesses

Aldar Annual Report 2019 39 40 Strategic Report Q2 2019 Q2 in acquired assets JV Etihad 49% Bulk leases LfL 5% Rental declines 829,282 units) (5,620 assets 12 across GLA Sqm Operational Review (continued) RESIDENTIAL HIGHLIGHTS RESIDENTIAL RESIDENTIAL ASSET MANAGEMENTASSET CONTINUED

85% Gross profit margins years 6.1 WAULT 88% Occupancy Al Murjan Tower Murjan Al in sold Q2 2019 The Bridges and Water’s Edge will also expand expand also will Edge Water’s and Bridges The portfolio. the to units 1,110 over add and portfolio the of growth further drive will that development under are projects further 2019, two 31 at December As villas. bedroom plus four and four large to apartments studio from ranging units high-quality of array awide includes it as spectrum demographic abroad to appeal portfolio our Tower. in units Murjan Al of Today, residential the sales by the offset partly Plaza, Etihad 789-unit of acquisition the with supported further was 2019, this In portfolio. the to units 3,000 approximately adding Towers, collectively Gate The and Rayyana Al 2014, in completions major two following years five last the over grown has significantly residential portfolio The Island. Reem Al and mainland Dhabi Abu between positioned units of aconcentration with Dhabi, Abu within located are units residential the of All facilities. developments featuring excellent amenities and across 5,620includes high-quality residential units 12 The residential management asset portfolio Unit type split Unit type RESIDENTIAL ASSETRESIDENTIAL BREAKDOWN 19% 16% 32% 8% 5% 84% 36% 4-bed 3-bed 2-bed 1-bed Studio Villa Apartments

capacity on Yas on Island. capacity increasing also latter the with product rental targeted mid-income ahigh-quality provide to offering Aldar’s Lease type split these leases typically range from 3 to 30 years. years. 30 3to from range typically leases these tenants, bulk For leases. 12-months rolling on done are tenants individual for terms Typical basis. long-term abulk, on leased are units residential the 49% of that fact by the supported is This 2019. 31 at December as years WAULT 6.1 at stands ADNOC Schools Aldar Academies ofDepartment Education and Knowledge LLC Estate Real Assistance and Defense Conseil International Services LLC Dhabi Abu Clinic Cleveland Tenant Location TOP TENANTS RESIDENTIAL RESIDENTIAL LEASE TERMS AND DURATION AND TERMS LEASE RESIDENTIAL 34% 51% 7% 8% 49% 52% Individual Bulk Other Dhabi Abu Al Reem Island Reem Al Abu Island Dhabi mainland % of Rent % of 10-15% 10-15%

<5% <5% <5%

Aldar Annual Report 2019 41 42 Strategic Report Type split 8,000 Plaza Etihad of by acquisition portfolio to added GLA Sqm 30,000 2019 Q2 in opened Mall Jimi Al to extension GLA Sqm LfL 9% Rental declines 485,060 units) retail (1,236 assets 32 across GLA Sqm Operational Review (continued) RETAIL ASSET BREAKDOWN RETAIL HIGHLIGHTS RETAIL ASSET MANAGEMENTASSET CONTINUED 35% 20% 45% Community Destination Big box Big

70% Gross profit margins years 3.7 WAULT 89% Trading occupancy Location split Location 27% 18% 2% 55% Community Island Yas Saadiyat Island Saadiyat Al Ain and occupancy stands at 88% as at 31 December 2019. 31 at December as 88% at stands occupancy and operations of years six completed now has mall The mall. super-regional first the as offering retail Dhabi Abu the lifted Yas 2014, Mall November in Opened World Bros. Warner and World Ferrari as such island, the on offerings entertainment and leisure key the of proximity close within Yas of Island, centre the in located is Yas Mall portfolio. management asset and retail the in asset flagship the is Yas Mall asset. that to GLA sqm 30,000 adding Mall, Jimi Al to renovation and expansion million 400 aAED 2019, delivered we In Mall. Jimi Al and Yas Mall assets, retail largest two Aldar’s residential communities. Destination retail includes Aldar’s of many around based retail, convenience The community retail predominantly includes on-site leisureand offering. which provides a much broader retail, entertainment supermarkets and restaurants, and destination retail, key residents such which as retail, offers amenities community between split is strategy retail The Ain. Al and area metropolitan Dhabi Abu the within assets 32 across (GLA) area leasable gross sqm 485,060 includes portfolio retail Our YAS MALL

range from 3 to 5 years to 7 to 10 years respectively. respectively. 10 7to years to 5 years 3to from range tenants anchor and shops line for terms lease Typical 2019. 31 at December as WAULT 3.7 at years stands Fucom LLC Allied Enterprise Llc &Mohamad Hamad Group Retail Landmark LLC Co International Dareen Tenant Tenant split TOP 5 RETAIL TENANTS DURATION AND TERMS LEASE RETAIL Al-Futtaim Company 22% 19% 4% 8%

47% F&B Anchor Major space Line shop space Large % of Rent % of 10-15% <5% <5% <5% <5%

Aldar Annual Report 2019 43 44 Strategic Report 63% government related entities Leases with Government of Abu Dhabi and LfL 3% Rental declines 318,074 assets 15 across GLA Sqm Operational Review (continued) COMMERCIAL HIGHLIGHTS COMMERCIAL COMMERCIAL ASSET MANAGEMENTASSET CONTINUED 89% Gross profit margins years4.8 WAULT 92% Occupancy small and large entities. large and small for 10 5to years 5or 3to from range structures lease government and government related entities. Typical to contracts term long on leased is space commercial the of 63% that fact by the supported is This 2019. 31 at December as years WAULT 4.8 at stands Tower 2017. in International GLA sqm 39,000 of acquisition the 2019 and Q2 in Centre Airways Etihad is portfolio the to additions recent most The relationships tenants. with long-term build and space commercial high-quality maintain to is strategy portfolio asset commercial Aldar’s market. tenant office commercial Dhabi Abu the of representative is which entities, related long-term basis to government and government- a on leased predominantly is portfolio office The within Island. Abu Dhabi spaces Aoffice Grade on focused predominantly 318,074 GLA, sqm includes portfolio office Our Type split Tenant split AND DURATION TERMS LEASE OFFICE COMMERCIAL ASSET BREAKDOWNCOMMERCIAL 37% 27% 18% 63% 54% Other Corporate (GRE) Government Grade B Grade A Grade and others EntityReporting

Etihad Airways Location split Location The Department of Urban Planning Planning Urban of Department The Mubadala Development Company National Health Insurance Company ofDepartment Economic Development Tenant +18,000 of Etihad Airways Centre by addition 2019 Q2 in portfolio to added GLA Sqm TOP 5 TENANTS COMMERCIAL and Municipalities (DPMO) Municipalities and 10% 12% 57% 21% Other

Al Reem Island Reem Al Abu Island Dhabi Beach Raha Al % of Rent % of 15-20% 5-10% 5-10% 5-10% <5%

Aldar Annual Report 2019 45 46 Strategic Report Hospitality revenueHospitality split by keys type Hotel 70% Yas on Island Keys located LfL 5% ADR growth 436,313 keys) (2,930 assets 11 across GLA Sqm Operational Review (continued) HOSPITALITY ASSET BREAKDOWN BREAKDOWN ASSET HOSPITALITY HIGHLIGHTS HOSPITALITY HOSPITALITY ASSET MANAGEMENTASSET CONTINUED 45% 16% 11% 42% 30% 55% Serviced 3-star 4-star 5-star F&B and other rates Room 18% Gross profit margins 4 club abeach and courses Complimentary leisure assets including golf 75% Occupancy Location split by keys split Location 13% 10% 77% Other Abu Island Dhabi Yas Island through hotel management agreements to manage Instead, it employs reputable international operators properties. hotel its of five operate not does Aldar to achieve this strategy. promotion, working alongside the relevant partners and events major through island the of activation continued on focused remains strategy core our Yas on Island, located keys hotel our of 77% With apartments. serviced and rooms offerings including 5-star, 4-star and 3-star hotel product of range abroad includes portfolio hotel The Dhabi. Abu across apartments serviced and hotels 11 across 2,930 keys includes portfolio hotels Our to terminate. terminate. to notice to subject automatically, reduced or option either at the management company's or operator's extended be can typically and years, 20 to 15 from ranging terms have initial operators or companies Aldar’s agreements with its hotel management management to experts oversee these assets. a hotel management platform comprising hotel created has Aldar whereby agreements, franchise through model afranchise on operated are Island, Yas on Yas at Plaza, together clustered are which properties, apartment serviced and hotels other five Aldar’s assets. these of operation day-to-day the HOSPITALITY LEASE TERMS AND DURATION AND TERMS LEASE HOSPITALITY

Aldar Annual Report 2019 47 48 Strategic Report academic years driving revenue and profit growth. profit and revenue driving years academic two last in students c.22,000 to numbers In total, Aldar Academies tripled has student Academies management in 2017. of ADNOC schools, that were brought under Aldar year that complement further the management 2019/20 the academic for Academies by Aldar managed being are schools charter new five School, Rayanna Al to addition In Dhabi. Abu for model school charter the have championed to region the in group academic only the been has Academies Aldar recently more expansion, organic to Further features. and the remaining 'Very with Good' outstanding (ADEK) and with many schools rated 'Outstanding' as ofDhabi Department Education and Knowledge Abu by the licensed is Academies Aldar UAE. the for adapted curriculums American and Baccalaureate of schools, delivering the English, International network largest the with Dhabi Abu of Emirate the in leading operator and provider of private education the is Academies Aldar Aldar. of subsidiary owned awholly is Academies') LLC ('Aldar Academies Aldar value to Group.value the complementbusinesses core Aldar’s in skill bring significant set and ownership, it owns of anumber strategic adjacent These businesses. management’s coreIn addition to asset of business real estate Operational Review (continued) EDUCATION ADJACENT BUSINESSES ASSET MANAGEMENTASSET CONTINUED 2015

2016

2017 +23% Revenue 2019 FY

AED mn 2018 379 2015 2019 465 2016 2017 +80% profit Gross 2019 FY

AED mn 2018 54 2019 98 Saadiyat Island assets. key new from requirements by capacity driven medium-term the in growth steady sees which income, astable provide 2018 and in acquisition asset TDIC the of part as acquired were assets The key assets. other and Dhabi Abu Louvre Dhabi, Abu NYU hotels, service that Dhabi Abu in Island Saadiyat on plants cooling district two owns Aldar retail facility management solutions. and commercial domestic, on specifically focused remains Khidmah whilst services consultancy and management property leasing, and sales on focused specifically is Provis business. management asset the in role asignificant play they Aldar, from managed independently are Khidmah and Provis Whilst of these strategic investments. ownership and control full (40%) take to business the in stake minority the acquire to amove followed This name). Khidmah the (retaining management facilities and Provis) (named management property two, into business management facilities and properties the separated Aldar 2018, In management of its portfolio. asset operational the support to Khidmah, properties and facilities management business, aleading developed has Aldar decade, past the Over DISTRICT COOLING DISTRICT MANAGEMENT FACILITIES AND PROPERTIES 2015 2015

2016 2016

2017 2017 +10% Revenue 2019 FY +48% Revenue 2019 FY

AED mn AED mn 2018 2018 368 57 2015 2015 2019 2019 405 85 2016 2016 2017 2017 +80% profit Gross 2019 FY +54% profit Gross 2019 FY

AED mn AED mn 2018 2018 27 8 2019 2019 42 41

Aldar Annual Report 2019 49 50 Strategic Report (2018: BILLION) 1.9 AED AED 1.9bn bn) (AED profit Net BILLION) (2018: 6.3 AED AED 7.1bn bn) (AED Revenue KPIs OUR SUCCESS OUR MEASURING 2015 2015 4.6 2.6 2016 2016 6.2 2.8 2017 2017 2.0 6.2 2018 2018 6.3 1.9 2019 2019 1.9 7.1 (2018: 2.6 BILLION) AED 4.0bn AED Development sales (AED bn) (2018: 2.6 BILLION) AED AED 2.8bn bn) (AED profit Gross 2015 2015 3.0 2.2 2016 2016 2.6 3.5 2017 2017 3.5 2.7 2018 2018 2.6 2.6 2019 2019 4.0 2.8 (2018: 90%) 89% Investment properties occupancy (%) BILLION) (2018: 1.6 AED 1.7bn AED bn) (AED NOI AM 2015 2015 1.5 96 2016 2016 1.6 93 2017 2017 1.6 91 2018 2018 1.6 90 2019 2019 1.7 89 (2018: 73%) 75% (%) occupancy Hospitality (2018: 14FILS) 14.5 Dividend per share (fils) 2015 2015 10.0 79 2016 2016 11.0 77 2017 2017 12.0 78 2018 2018 14.0 73 2019 2019 14.5 75

Aldar Annual Report 2019 51 52 Strategic Report DM revenue based on progress of completion of progress on based revenue DM construction of stages various at projects of pipeline development a diverse from benefits 2019. Aldar in profit gross of 1billion AED over of year consecutive afourth posting performance, apositive deliver to Our development management business continues the distinctive nature of these businesses. underline to guidance and policies disclosure, our enhanced have we progressively years several Over development management and management. asset model, with two major, platforms: complementary The Company operates a straight-forward business and 4% respectively. 5% of income, net and profit gross in increases solid and revenue in growth 17% recorded Company The in growth 2020 beyond. and further of strategic initiatives designed to generate in 2019 achieved and progress anumber on performance producedAldar astrong financial Review Financial 0% Revenue recognised 100% Saadiyat Reserve Alreeman II Lea Launch date development Launched for sale Reflection Alreeman Tender contract and early works Alghadeer Water’s Edge construction Yas Acres Time stage Main

The Bridges Mayan AED 1bn DM gross profits delivered higher or 1billion AED of year consecutive Fourth up 5% from a year earlier. ayear from 5% up billion, 4.4 AED at stood backlog revenue contracted 2019, the 31 at December As inventory. completed and land from sales and projects third-party managing from income by fee supplemented coming years. This revenue primary driver is the over revenues future on visibility providing projects development launched newly with lifecycle construction project the over sales off-plan on that development fuel property revenue recognition Final stagesof construction Al Saaiyat Mamsha Jawaher Handover Meera West Yas Al Merief Nareel Island Al Hadeel Ansam c.2-2.5 years page 28. page on more Read Management Development

AED 0.5 billion in new Q42019.” in in development billion sales 0.5 AED Perfect 10“The event –a10-day event generated that Reserve development. Saadiyat the launched and handover to key projects development we performance as advanced these development, driver an was important of 2019 under projects several and plots land Island Saadiyat which acquisition, included TDIC asset strategic The 10' campaign. Perfect 'The included development and nearing completion, which sales strategy for existing inventory under aproactive and launches successful highly by four driven was This 2018. from 53% up billion, 4.0 AED arecord 2019 reached during sales Development 4.4bn AED 2019 Dec 31 at as backlog sales Development 50% 2019-2022 over year per million 150 AED to guidance profit segmental DM in % increase million. 100 AED previous the from year per million 150 AED to guidance profit standalone segment’s this to adjustment upward an have driven and franchise, Aldar’s of capability the to testament were awards These Yas Island. on free-zone acommercial and housing national infrastructure, of development the manage to Dhabi Abu of Government the from projects of worth billion 5 AED for awards tender received 2019, Aldar In basis. afixed-price on or fee management a fixed for third-parties to services provide to capabilities leverages Aldar’s development and procurement complemented by a management franchise, which the development management business. It is by generated profit the of proportion a high This core development property drives activity

(government-related entity) in the region. non-GRE any for highest –the Moody’s from Baa1 of rating acredit achieved business that 2018, in Investments Aldar subsidiary owned 100% our into assets estate real long-term all of transfer the Following region. the in ownership estate real for platform efficient most the be to believe we which platform, our of diversification sector and scale unique the to acredit is resilience and growth This challenging environment. a despite robust remained streams income our that ensured portfolio unique this of diversity and quality the residential, and retail as such segments, key in rates like-for-like our on pressure continued saw we While assets. operating TDIC acquired the of impact full-year the and extension Mall Jimi Al the of additions including the Etihad JV the opening assets, operating income, by supported recent asset net in 6% growth 2019, with in performance aresilient achieved business management asset Our 4billion. AED at guidance sales development our have we maintained such, As market. that addresses under-served segments of the opportunities for well designed, thoughtful product, new assess to continue will we 2020, In years. coming the in estate real for demand create will macro-economicimportant drivers emerging that see we and Dhabi, Abu within dynamic supply constructive amore in resulted has decade last the Consolidation among Abu Dhabi developers over developmentits cycle. within is project each where demonstrates opposite chart the in illustrated as pipeline andSaaiyat Jawaher This projects. development predominantly driven by the Mamsha Meera, Al was 2019, this In customers. to handovers of stream aconsistent having to projects new launching solely from shifted has business this years, currently under development. Over the two past projects all across sold 83% is and units residential Our development pipeline now includes over 6,500 83% % sold across all developments launched for sale

Aldar Annual Report 2019 53 54 Strategic Report region at Baa1.” region corporate non-GRE in the rating a for credit highest “Aldar Investment has the 1.7bn AED date to achieved income operating net Highest (continued) Review Financial and development management businesses. debt policy levels for both management asset the within well levels debt gross maintaining and businesses both across inflows cash operating strong remains solid. The Group continues to generate 2019 31 at December as position financial Our billion. 1.8 AED at 2020 for guidance income operating net our set have we such As Provis. and Khidmah Academies, Aldar businesses, key adjacent our across growth as well 2019, as early in opened that extension Mall Jimi Al and acquisition asset Etihad the of impact year full by the driven business, management asset our from growth see to expect we 2020, In viaand acquisitions. development to hold investment in the portfolio through business this expand to opportunities attractive see we and strategy growth Aldar’s of core the at remain will Dhabi Abu globally. economies ‘AA’ rated remaining few the of one Dhabi, Abu in a unique of portfolio income-generating real estate and education segments. represents The portfolio hotel across office, residential, retail, the diversified assets, estate real high-quality in billion 20 AED to close owns now business management asset The future growth. drive to reinvestment for and dividends attractive deliver to flows cash strong of generation the for better priced, longer duration bullet debt, allowing Aldar Investments subsequently successfully raised

8th Eighth consecutive progressive dividend declared Prudent capital management and governance in place upon handover of developments. business development the from profit cash realised management business plus a 20-40% pay-out on asset the from flow cash free distributable on pay-out a65-80% on based is policy dividend The phase. handover into moving projects development from profits cash of realisation the and dividend, proposed total the of 80% approximately of our management asset business, which generated performance resilient by the supported was increase This billion. 1.14 AED of pay-out total proposed a with share, per fils 14.5 2019 to for dividend in a4% increase recommended has Board The management businesses. the management asset and development onbased the underlying performance of both visibility on shareholder returns. This pay-out is and transparency provides policy dividend Our billion. 3.4 AED of facilities debt undrawn existing through liquidity strong has and funded well remains Group The escrow. in billion 0.8 AED and cash restricted billion 2.3 AED cash, free is billion 2.6 AED 2019, which of 31 at December as 5.7 billion AED at stood cash Gross (As at 31 Dec 19) Dec 31 at (As Debt policy policy Debt

100% owned 100% (BAA1 – MOODY'S) – (BAA1 MANAGEMENT INVESTMENTS INVESTMENTS 35-40% LTV ALDAR (38.0%) ASSET ALDAR PROPERTIES PJSC ALDAR PROPERTIES

DEVELOPMENT MANAGEMENT <25% LTV LTV <25% (13.3%) development. sustainable towards commitment our reaffirms and and constructive engagement with our stakeholders towards step greatera significant transparency marks report this Launching tomorrow. of needs the with today of needs the by balancing achieved best is shareholders our all for value creating and respectfully ourselves by conducting that believe we because culture performance astrong driving to committed We are environment. and community people, economy, –the pillars key sustainability four our across performance our improve to seek we as Aldar for akey priority is Sustainability Report. Sustainability first our 2019, launched we In Dividend policy (fils) Dividend policy 2011 0 POLICY 2019 DIVIDEND: 14.5 FILS PER SHARE PER FILS 14.5 DIVIDEND: 2019 2012 6.0 METHODOLOGY/KEY DRIVERS 2013 7.0

13% CAGR (2012-2019) 2014 9.0 2015 10.0 PAY-OUT FACTOR 2016 11.0 RANGE 2017 12.0 2018 14.0

2019

14.5

Distribute free cashflow Chief Financial & Sustainability Officer Fewer Greg maturities. debt term near as well as facilities credit committed undrawn and cash free over with position, AEDliquidity 5 billion unrestricted acomfortable maintain we and position debt conservative and sheet balance We have arobust strength. of aposition from period challenging this entering is Aldar business, our have on will virus the impact the assess to soon too is it While Organisation. Health World the as such guided by UAE authorities and global organisations closely, situation, the monitor to We continue our employees, communities and customers. of safety and health the remains priority Our pandemic. aglobal become to escalate quickly Covid-19 saw we 2020 of months few first the In Asset Management Maintenance capex Interest expense Net operating income less: Overheads business 65-80% ~80% + Management business Upon completion Development of development Realised profit and handover 20-40% ~30%

page 62. page on more Read Report Sustainability

Aldar Annual Report 2019 55 56 Strategic Report strengthen risk management. solid foundation this on to build to continuous improvement and will persist in believe firmly management and Board Aldar’s Company. the across function the improve to helped has which periodically, convened are committees mandated various the of meetings The updated. and reviewedplace, which are periodically in documents &Procedure Policy and Charter ERM aBoard-approved has Aldar appetite. risk agreed the matches risk the until plans mitigation on progress and updates for owners risk with up continuously monitors, liaises and follows team ERM The mandates. and criteria pre-defined to according committees to hierarchical are different escalated plans mitigation relevant their with risks to prioritise The its importance. identified matrix likelihood and impact an through assessed and identified is risk Each a top-down approach. while enterprise-wide risks rely on unit-specific forused business risks, Primarily, a bottom-up approach is activities. ERM robust with market the in companies other against benchmarks and practices best of reviews It regularly comprehensive conducts plans for existing and emerging risks. control place in put and assess identify, to units business Company’s the helping for responsible is team ERM A dedicated from achieving strategic objectives. its thatrisks have potential the to Company hinder the (ERM) to management ensure of all function effective Enterprise established Risk an Management has Aldar Risk Management RISK MANAGEMENT RISK

Risk management procedure RECEIVE & REVIEW RISKS FROM FUNCTIONS FROM RISKS & REVIEW RECEIVE SUBMIT FINAL PRESENTATION TO RMC & MC RMC TO PRESENTATION FINAL SUBMIT RISK ASSESSMENT AND PRIORITISATION INITIATE RISK MANAGEMENT EXERCISE MANAGEMENT RISK INITIATE Key risks with mitigationplansare presented by risk owners Risks tolerance appetite (Critical, High,Medium, Low) Present criticalrisks to AC for review andapproval ENGAGE WITH RISK OWNERS RISK WITH ENGAGE Validate the risks with the respective heads Agree onmitigationplansand time frame Risk Matrix of Impact vs. Likelihood Impact on the organisation for review andapproval Risk Management Plan Likelihood of occurring Departmental Risks Adjacency Risks Project Risks

Committee AC = Audit Committee Management =Executive MC Committee Management =Risk RMC Document Decision Process • • • • four categories: following the into classified are Risks COSO foundation. its enterprise risk as management framework using widely-acceptedadapted model, business the to its RiskAldar’s Management Framework is highly linked and • • • • estate-related laws and regulations. compliance with applicable real and reporting of reliability the to Reporting & Compliance: Risks related flow. cash and earnings Company’s the on impact Financial: resources. of use efficient and effective performance, customers, and the Operational: objectives. strategic Company’s the on impact have adirect Strategic: Risk Management Framework Company level and mitigation and functional Identification, Identification, Identification, a business unit a business mitigation and and mitigation assessment Bottom-up Top-down assessment, of risk at at risk of of risk at at risk of oversight level Risks that can have a direct have adirect can that Risks High-level risks that can Risks related to to related Risks

Risk Governance ownership Risk committees Three level

relevant committees. owners and periodically to report risk the with liaise continuously team ERM The hierarchy. level risk with line in Committee Audit the to thereafter and the Executive Management Committee to presented are risks These thresholds. defined certain to according Committee to be considered by the Risk Management updates and risks the raise team, ERM the through units, business The reporting. of levels three specifies Charter ERM Aldar’s STRUCTURE THREE LEVEL COMMITTEE • • • risk owners Business units and • • • Board • • • • Committee (RMC) Risk Management • • • • • • • • • • timely mitigation plans and effective Ensure Monitor the risks risks assess and Identify Agrees on the entity’s risk appetite risk entity’s the on Agrees framework ERM Approves management risk effective towards culture and tone the Sets to the MC the to and recommendations Approves deliverables mitigation plans of progress and effectiveness Monitors the mitigation plans assessments and risks along with relevant Reviews the presented Framework Management Develops Risk

• • • • • Committee (MC) Executive Management • • • • • to the AC the to recommendations Makes requisite effectiveness for operational plans treatment in controls internal Reviews and endorses emerging risks and principal of in identification Assists plans mitigation proposed the and plans action Evaluates the existing critical risks Reviews high and

Level A Level B Level C follows: as is hierarchy level risk per as mechanism reporting periodic The

Management Committee Risk to Report Risks of Levels All Management Committee Executive to Report High & Critical Risks Committee toReport Audit Critical Risks • • • Committee (AC) Audit • • • the AC’s annual report AC’s annual the of part as Board the to Provides key highlights functioning of the RMC Monitors the effective Reviews critical risks

Aldar Annual Report 2019 57 58 Strategic Report Risk Level Principal risks heat map map heat risks Principal Risk Management (continued) PRINCIPAL RISKS Low Medium High Critical LIKELIHOOD Low (1) Unlikely (2) Possible (3) Likely (4) Certain (5) Insignificant (1) 1 to 3 1 to 9 4 to 10 16 to 25 to 20 Score Minor (2) IMPACT • • • • Mitigation Plan Requirement • • • • Moderate (3) Not mandatory as risks can be tolerated be can risks as mandatory Not tolerated be can risks as <6 rated risks for mandatory Not a case-by-case basis on assessed ≥8 are rated Risks Mandatory for all risks Major (4)

Severe (5) • • • • Recommended Actions • • • • Tolerate (Accept) Terminate Transfer Treat (Reduce)

Information systems and cyber threat safety and Health Talent retention Dhabi Abu of Emirate Geographical concentration in the Market cyclicality After mitigation plans Before mitigation plans

of Abu Dhabi Dhabi of Abu Emirate in the concentration 2. Geographical cyclicality 1. Market Strategic: Risk The High-level risks that can have a direct impact on the Company’s strategic objectives. strategic Company’s the on impact have adirect can that risks High-level

• Consequences • • • Consequences • Risk Analysis • • • • • returns for shareholders. objectives to deliver sustainable strategic its achieve and grow constrain Aldar’s ability to ability Aldar’s constrain single market will potentially a as Dhabi Abu to Exposure Dhabi. Abu in operating only concentrationGeographical from rating. credit and valuations,asset debt/capital flows, cash revenue, sales on Potential negative impact portfolio. and performance of asset launching of new developments Potential negative impact on changing market conditions. regional and local to respond effectively to Aldar for Ability

Treatment Plan • • by: it mitigating steadily is and operations of concentration geographical of risk inherent the realises Company The • • • • • Asset Portfolio • • • • Developments Projects plan: treatment risk the implementing actively also is Company The updating. needs it if or appropriate still is strategy the ensure to held are discussions and basis aregular on strategy Group’s the of review the through risk market mitigates Board The • • • • • • • • • • • capability to expand the investor pool. investor the expand to capability marketing and sales international and regional Developing Cooperation Council markets. Gulf in UAE and wider the within ventures joint Entering asset classes and introduction of loyalty programmes. programmes. loyalty of introduction and classes asset across cross-selling through experience customer Enhancing initiatives. saving energy and audit energy through saving cost to leading initiatives Sustainability visibility and de-risk residential revenue portfolio streams. Continued focus on corporate deals to provide long term revenue optimisation, sustainable pricing and innovative re-purposing. category and zoning assets; retail in strategy merchandising Full initiatives. marketing targeted and leasing proactive through performance trading their improving and selection tenant on focus Combined lands. enabled via infrastructure opportunity any on capitalise to readiness market Enhanced diversification. Product exposure. flow cash reduce to phases in projects Launch to anticipate customer preferences. place in are plans business appropriate and accurate Ensure

Aldar Annual Report 2019 59 60 Strategic Report Cyber Threat Systems and 5. Information safety 4. Health and retention 3. Talent Operational: Risk The Risk Management (continued) PRINCIPAL CONTINUED RISKS Risks related to performance, customers, and the effective and efficient use of resources. of use efficient and effective the and customers, performance, to related Risks • Consequences: • • Consequences • • Consequences • Risk Analysis • • • • • • adequately protected from from protected adequately not are assets digital If internet. the over actors malicious weaknesses are exploited by control and vulnerabilities System fines. and suit civil delays, project to due implication financial consequential with internationally and locally brand and vision Company’s Potentially material impact on incident. Health) and Safety Serious OSH (Occupational business plan. the deliver to ability Company’s Potentially a negative impact on the right skills and experience. with employees of pool talented a retain and attract to Ability and loss of reputation. of loss and losses financial operations, business of disruption to lead can this threats, cyber

Treatment Plan • • • • • • • • below: tasks the to limited not but undertakes unit The function. IT andassess strengthen the security and compliance readiness of its The information & Security Compliance function continues to • • • • • safety strategy and implementation plan: and health integrated and acomprehensive has Company The • • • • • encompasses: The People and Performance strategy and treatment plan • • • • • • • • • • • • • • • • • • and mitigate system weakness. Vulnerability management programme in place to identify place. in programme Organisation-wide mandatory security awareness training basis. regular on tested and reviewed place, in plan and strategy recovery Disaster control, in place to correlate security events and trigger alerts. monitoringSecurity system, including Data Loss Prevention exfiltration. data and phishing ransomware, malware, as such threats targeted mitigate and block identify, proactively to place in controls Security DNS learning. machine and intelligence artificial on based threats cyber mitigate and detect to deployed Protection Threat Advanced vulnerabilities. known from threats mitigate to reviewed regularly and implemented controls Baseline Security annually. Auditors Lead by the conducted is audit surveillance 2017. in 27001 ISO certification 27001 ISO DT achieved Publishing OSH to prevent alerts incident. (EHSMS) and regulatory requirements. EHS (Environment, Health and Safety) Management System OSH/ Company’s the communicating and updating campaigns, OSH and training by conducting awareness staff Raising inspections. periodic and meeting OSH meeting, committee audit, OSH external and internal i.e. programme, monitoring OSH the of implementation effective an for teams project and Environment) & Safety Health, (Quality, QHSE between integration Proactive practices. safest promote and ensure to trends analyse and learnt lesson develop assets, of portfolio the and projects the across performance monitor to statistics OSH monthly Produce standards. by their abide and Policy OSH Aldar with comply Centre), Health and Safety Occupational Dhabi (Abu OSHAD with All PMCs, consultants and principal contractors must register potential gaps. identify to work' to place 'Great survey annual by conducting Proactively identifying employee’s satisfaction parameter People and Performance policy and practices. for improvement of areas critical identify to interviews Exit improvements. for areas identify to annually Organisation-wide Employee Satisfaction Survey conducted potential personnel. high for programmes path career and planning Succession critical personnel. of retention assist to programme incentive term Long

Aldar Annual Report 2019 61 62 Strategic Report environmental, social and governance issues and the tackling and by identifying region, the across practices sustainable for model arole be to We strive short-term returns. long-term economic and social value rather than pursuing on focus overarching our reflecting Company, our of aspect every across a priority is it that ensuring and business its of core the at sustainability embedding to committed is Aldar future. the in success greater even for benchmarks new 2019, providing during pillars sustainability four our of each across progress in our activities, engagement and reporting significant report to proud are we 2018, in journey reporting sustainability our of launch the Following communities,people, economy environment. and built positive the on welegacy have impact our on we create as diverse stakeholders, asustainable waythe we engaging our with and business do remains focusedAldar continuously on improving Sustainability BETTER FUTURE BETTER ASHAPING to shape a better future for all our stakeholders. stakeholders. our all for future abetter shape to communities, customers and shareholders, in order environmental and commercial conditions for our social, of balance right the create to responsibility and manager, we and embrace understand our owner developer, estate real regional a leading As we operate. where for our nation and strengthening the communities impact on the environment, creating economic value our reducing also while practices, business our of success. It is a key driver for continuous improvement our to fundamental as transformation sustainability proactive and strategic ongoing our We view our stakeholders. and Company our to most matter that opportunities Page 72. Page 68. Page 66. Page 64. Page ENVIRONMENT PEOPLE COMMUNITIES ECONOMY this strategy through a wide range of of range awide through strategy this We execute framework. and strategy in place a comprehensive sustainability have we put objectives, sustainability and business own our achieve to order in and ambition, overarching this With Nahyan. Al Sultan bin Zayed Sheikh Highness His of legacy great the upholds and vision its fulfils Emirate the as Dhabi, Abu of growth the supporting while UAE, the across people of millions of lives the in force apositive be to proud is Aldar Our sustainability strategy and framework in everything we do. we everything in technology and innovation sustainability, quality, by embedding first customers our Place shareholders. customers and our for value and memorable experiences creates that manager and developer estate real regional aleading Become MISSION OUR VISION OUR

maximise stakeholdermaximise value through: we how into sustainability Integrate STRATEGY BUSINESS

our four sustainability pillars are: pillars sustainability four our shared value to all our stakeholders our competitive advantages and deliver maintain we ensure to strategy, business our into integrated Fully our corporate vision. to achieving while contributing areas material across impact our increase progressively to aview with collaboration with relevant stakeholders, in initiatives, and programmes integrated PEOPLE, INNOVATION AND DIGITAL TRANSFORMATION to drive growth. growth. drive to our key stakeholders Actively engage with Growth and expansion sustainability. social and environmental promote and Integrate Customer centricity business. the of aspects all in quality and environment Embed Operational excellence

forward with passion and purpose. purpose. and passion with forward continue driving our agenda sustainability to positioned well are Aldar pillars, four these across change positive drive to resources and focus time, our applying By • • • • • • • • for more details. 82 page on key to topics refer Please best-practice governance Robust risk management and Governance FRAMEWORK SUSTAINABILITY OUR Environment People Community Economy environmental footprint our minimise to Innovative solutions Environment places work our of all in Supportive environment People life of Maximise the quality Community creation value and growth Sustainable Economy

Aldar Annual Report 2019 63 64 Strategic Report for Proposals (RFPs)tenders. Proposals for are written into our supplier contracts and Requests model ethics business our of criteria the and chain, supply our along link every to extend values Aldar’s future. the into and day each them to promises our on deliver effectively more to customers our with engage we how improve and explore to We continue competitors. our from out stand to us helping and time over built them with relationships lasting creating difference, of points our of one be to continues focus customer This first. customers our put always have we Company, our of days early the From governance for decades to come. environmentally positive development and strong operations and our ability to sustain employment, our of sustainability long-term the ensure and efficiently, we will our maximise shareholder value capital economic and human our managing By efficiency. and innovation, sustainability of foundations solid the upon built be must it seek, we diversification and growth the achieve will that model business afuture-proofed deliver and develop to order in that believe we At Aldar, growing practices. business distributions derived from sustainable investors.and We strive to provide secure, with our shareholders communities, employees,customers, supply chain, shareholders ourto Company, on everyone depends who including our contributions and are vital economicOur sustainability (continued)Sustainability SUPPLY CHAIN OUR ACROSS SUSTAINABILITY EMBEDDING TRUST AND BUILDING CUSTOMER RELATIONSHIPS SUSTAINING AN INNOVATIVE VALUE CHAIN ECONOMY the best sustainability ideas and suggestions. evaluate and implement, whenever possible, capture, to order in targets, sustainability mutual on insights achieving and ideas welcomed suppliers’ and chain, supply our across dialogue interactive and open an maintained Weeconomy. also local the boost and businesses local promote to programme ICV our developing 2019, began we In projects. our all in criteria sustainability Aldar’s enforcing for mechanism aformal with aspects, social and environment both by including enhancing supplier selection and evaluation criteria also We are large. at society and community the for impact apositive creating at aimed in our contracts, purchase orders and work orders, of and social sustainability- impact-related clauses inclusion the in evident is This process. contracting consideration throughout our design, tendering and into taken being increasingly is Sustainability licenses. commercial Dhabi-based Abu held suppliers our of 2019, of 99% As vendors. registered Government directives to prioritise Abu Dhabi- Dhabi Abu with compliance in spend, local improving and supporting to committed we 2018, In

performance reviews. performance participation counting towards employee representation of knowledge and skills, with abalanced ensure to Teams built are ideas. Ibtikar successful implementing teams project the stakeholders. Any employee is then welcome to join and business our facing key issues address that ideas challenge invites all employees to submit innovative yearly This direction. and growth future Aldar’s in role active an play to employees our encourages Programme Innovation Ibtikar Our innovation. employee homegrown propels that a culture foster also we partnerships, and ideas external through innovation in investing to addition In services. and processes operational excellence to developing new products, achieving and experience customer improving from small, and big challenges to solutions innovative allsupport our employees and suppliers to find and encourage We actively environment. the on that our support priorities, and minimise our impact technologies in invest business, do to ways efficient more find to continue we as strategies, sustainability and business our of centre the at is Innovation FOSTERING INNOVATION AT EVERY LEVEL AT INNOVATION EVERY FOSTERING • • • • COMMITMENTS SUSTAINABILITY OUR ECONOMIC • • • • In-Country Value. In-Country and economy local the SMEs, Support Foster innovation. satisfaction. customer Increase operations (innovation and optimisation). day-to-day our into sustainability Embed

Aldar Annual Report 2019 65 66 Strategic Report brings our total contribution to AED 120 million. Watan Al Sandooq to contribution year’s This responsibility corporate leader in the community. contribution our reflects commitment to be a socially The UAE. the of people the all for future abright and promoting sustainable development, a decent life with charged fund national the Watan, Al Sandooq to million 36 AED contributed 2019, Aldar During Initiative. Watan Al Sandooq the and Dhabi Abu Games World Olympics Special the including events, CSR major of arange in participants Management Board were proud and visible Executive CEO and Our environment. the on impact apositive creating whilst alike visitors and residents of lives the –enriching communities and destinations operations, business our across activities CSR 100 over out carried 2019, Aldar During thrive. and prosper can they so nurtured and supported are communities inclusive and diverse our which in afuture shape help to influence our use to We aim communities. our in everyone of experiences and lives daily the enrich destinations, empower the generation, next and vibrant build we business, a responsible As life. of quality high and lifestyle asustainable ensure and inclusion promote to activities CSR and initiatives members through interactive campaigns, educational community our with engage we To life. of end, this quality improve and together everyone bring to communities our with closely work we At Aldar, forby everyone lifestyles within them. encouraging sustainable of buildings the not themselves also but through just sustainability the change, of sustainable catalysts play work powerful and be learn, –can multi-faceted environments –where citizens, residents visitors live, and Healthy, of These communities our business. dynamic are at heart the (continued)Sustainability SANDOOQ AL WATAN IMPACT SOCIAL APOSITIVE CREATING SHAPING SUSTAINABLESHAPING COMMUNITIES COMMUNITY

and humanitarian event in the world. the in event humanitarian and sporting largest the as history 2019 made Dhabi Abu Games World Olympics Special the Forces, SupremeDeputy Commander of the UAE Armed and Dhabi Abu of Prince Crown Nahyan, Al Zayed Bin Mohamed Sheikh Highness His of patronage the under region, MENA the in time first the for Held 2019. Dhabi Abu Games World Olympics Special the of Partner Official an be to up signed Aldar UAE capital, the in held Games MENA IX Olympics Special recent the of Partner Official an as role our on Building SPECIAL OLYMPICSSPECIAL • • • • COMMITMENTS SUSTAINABILITY OUR COMMUNITY • • • • campaigns on recycling and sustainability. and recycling on campaigns Promote community awareness through Watan). Al (i.e. Sandooq funds community and NGOs Support our communities. through education of quality the Enhance inclusivity. promote and Develop communities diversity that support

sustainability issues with thesustainability wider community. full potential, and sharing our knowledge on their reach to workforce our enabling citizens, empowering the generation next to become global learning, of standard international an with children –providing approach aholistic We have taken our customers and diverse stakeholders. to Academies Aldar our in learners young the from business, our through reach we everyone in future sustainable amore create to means and knowledge the instil to resources and position our use to aim we such, As all. for future sustainable a more key unlocking to the is education that We believe operations. day-to-day into pillars sustainability our embedding and workforce our across sustainability promoting for responsible are who Champions throughout the business, Sustainability Company’s operations. The Council appointed the within sustainability of implementation the lead and integration the on advise to launched was Council Sustainability 2019, Aldar’s In changes in their communities. positive while making experiences professional and programme to encourage students to gain personal Our Aldar Academies also developed a volunteering adifference. make to employees our empowering while workplace, the beyond and within giving of aculture promote to aims Policy This community. local the to back give to Company the across from staff all encourages that Policy We developed an updated internal Volunteering Company time. on causes worthy for volunteer to opportunity the on volunteering by providing our employees with focus our year, enhanced we This Aldar. to important been always has community the to back Giving UAE. Olympics Special the with partnership strategic our continuing to forward look we and us, with strongly –resonates people all of inclusion and acceptance by fostering world abetter create – to movement Olympics Special the of message The Games. the support to volunteers recruited and event, the about awareness create to malls and We also engaged with our communities, schools sites. accommodation as and events for venues as Games, the throughout akey role played assets Through the sponsorship, our venues and hospitality LEADING IN LEARNING AND DEVELOPMENT DEVELOPMENT AND LEARNING IN LEADING SUSTAINABILITYENSURING GOVERNANCE ENCOURAGING VOLUNTEERING

our Company, economy and nation. of success the to –contributing positions new experience and encouragement to excel in their university graduates, giving them the training, recent hire We also career. fulfilling and rewarding a launch and passion their find them help to employment, giving them invaluable experiences in steps first important gain to graduates recent These mutually-beneficial programmes enable generationnext of leaders and entrepreneurs. committed to cultivating and empowering the are we programmes, internship our Through today. world the facing innovative solutions to many of the problems develop to tools necessary the with citizens equip also but life of quality improve only not can Education’,‘Quality whereby a good education 4 SDG with aligned are efforts Aldar’s Agenda. 2030 UN the of part as (SDGs), Goals Development Sustainable the achieving to committed UAE is the Nations, United the of amember as broadly, More Academies. Aldar our through achieving to contribute to proud are we which by 2021, achieved be to goals of aseries set has it innovation, and technology science, and justice, and equality responsibility, and citizenship as such values knowledge-based global society. around Based innovative education system for a competitive, an of concept the developed further has Plan 2017-2021 Strategic Education’s of UAE Ministry and knowledge-based economy. In addition, the innovative diversified, amore become to journey another strategic stepping-stone in the national Strategy, 2020 UAE Education the through education on focus nation’s our with line in is This EMPOWERING THE NEXT GENERATION

Aldar Annual Report 2019 67 68 Strategic Report responsibilities in the Company. and roles their to relevant training external to inductions. All our employees are also entitled (WIN);Initiative department-specific Network and Women our of part as training, equality gender procedures; and policies HR relevant of introduction an functions; and units business Aldar’s on speed to up them brings which programme, induction amandatory in part take staff new All Aldar. at day first employee’s each from begins commitment This diverse developmental needs. system for identifying and meeting our employees’ our Learning & Development Policy defines our oursupport commitment to employee development, To Company. our of success the to possible as much opportunities to empower them to contribute as training providing employees, our of one every of success and growth the to committed We are engage and empower our colleagues. that platforms and policies programmes, through success, collective and individual their in invest to continue we So, potential. full their achieve to staff environment that empowers every member of our working supportive and diverse fair, inclusive, a creating of importance the We understand work. to places healthiest and safest the of one Aldar make towards our employees very seriously, striving to responsibilities our We prosper. take and develop to path career their of stage every at and organisation our across people our supporting region, the in choice of employer an be to seek we At Aldar, exceed to and goals. meet these expertise and their combinedapplying creativity, determination what achieve, our Company can should and then and journey,sustainability continuously for bar raising the are lifeblood the of people Our our and business (continued)Sustainability OF OUR PEOPLE PEOPLE OUR OF SKILLS AND KNOWLEDGE THE IN INVESTING ENRICHING THE LIVES OF OUR PEOPLE OUR OF LIVES THE ENRICHING PEOPLE

of areas within facilities and property management. property and facilities within areas of range awide to exposure interns gives programme the Emiratisation, and acquisition talent in efforts broad &Khidmah’s Provis of Part 2018. in launched aprogramme through internships, six-month to three- for youth Emirati on take we &Khidmah, At Provis UAE national undergraduate students. work placement and internship opportunities for development planning process. We also provide career amandatory through as well as leave, study and scholarships to eligibility exclusive through development of our UAE national employees the We promote Policy. &Development Learning our in embedded also is workforce our in nationals UAE retaining and attracting to commitment Our 27%. 2019 achieved in and campaign, Tawteen by the set requirements legal the beyond go to We strive in employment, in particularly the private sector. UAE of nationals number the increase to campaign UAE’s Tawteen the supporting 2018, during talent Emirati attract to continued environment inclusive and culture corporate brand, strong Our development opportunities. and exposure further them give to subsidiaries our of boards the on talent Emirati for seats provide we topriority UAE nationals who meet our criteria, and gives Policy Staffing Our agenda. nationalisation Government’s our with line in employees, Emirati retaining our career-driven, committed and talented and developing attracting, in emphasis particular put and workforce our of member every We value EMPOWERING OUR LOCAL TALENT TALENT LOCAL OUR EMPOWERING

Aldar Annual Report 2019 69 70 Strategic Report 376 employees representing over 35 nationalities. 2019, of had we As creativity. and innovation greater bringing in plays it key role the including organisation, our across has it impact positive the and diversity We champion sustainability. and success Aldar’s to vital both are inclusion and diversity Employee tolerated. be not will and commitment to equal employment opportunity our hinders that discrimination of aform is intent, of regardless and form any in Harassment, harassment through our whistleblower programme. of instances report to contractors and consultants encourage all Aldar employees, directors, officers, We also relatives. their as well as colleagues, our of harassment prohibit that guidelines behavioural provides Conduct Business of Code Our responsibilities. and roles respective their to relevant performance and skills behavioural and technical the on based promotion, and employment assessment, of terms in equally and professionally employees and applicants all We treat challenge. regional and anational address to recruitment atargeted is which workforce, Emirati our increasing of objective our affect not does commitment This by UAE. the ratified Organization, Convention of 1958 of the International Labour Discrimination (Employment and Occupation) the with line in nationality, or gender religion, race, of regardless candidates, all for employment opportunity equal in believe strongly we At Aldar, Sustainability (continued)Sustainability SUPPORTING DIVERSITY AND INCLUSION PROMOTING EQUAL OPPORTUNITY ENRICHING THE LIVES OF OUR PEOPLE CONTINUED PEOPLE OUR OF LIVES THE ENRICHING

the Network’s focus and initiatives. initiatives. and focus Network’s the who are collectively responsible for determining organisation, the of areas all across working women exceptional of group diverse and adynamic of up made is WIN Company. the within balance gender achieve to and women Aldar of representation balanced amore fast-track will that initiatives equality implement to is agenda WIN’s diversity. and inclusion to commitment wider our with line in Company, our across women the all support to created was (WIN) Network Initiative Women’s The stakeholders. internal of arange of guidance and support the potential and organisational support change, with career full their unlock to aplatform by providing youth, Company’s our empower to created was thisSupporting vision, the Aldar Youth Council future. abetter build to skills their applying and youth nation’s the developing at aimed movement a UAE have spearheaded the of leaders the nation, sustainable amore for vision their with line In across several sectors. guaranteed them equal employment opportunities and force labour our into determination of people have we integrated units, retail our in addition, In of 47 nationalities. men 73% and women 27% of composed currently is workforce Khidmah’s community. our of diversity the reflects positively that aworkforce building while inclusive and fair is that aworkplace create to commitment our out setting Policy, Diversity aWorkforce launched we &Khidmah, At Provis WOMEN’S INITIATIVE NETWORK YOUTH COUNCIL

communications and evaluation. evaluation. and communications operations, for goals health and safety clear outlining communities, and staff outsourced consultants, assets, sites, construction offices, including operations, our of areas all covers Policy The including through employee performance reviews. units and employees are continually measured, business our all which against standard the defining while area, vital this in improvement continuous for objectives main our out sets Policy OSH Our business. do we way the components into one coherent system that governs management (OSH) Health and Safety Occupational our integrate to us enables that tool management a (OSHAD-SF, 2017), Framework System Health and Safety Occupational Dhabi Abu the with line in practices (H&S) Safety and Health operate we To end, this contractors. and employees our all of wellbeing and health the promotes that environment working asafe providing to committed We are excellence. business achieve to culture inclusive and diverse our support and people our empower help will DIB The groups. diverse our of potential the unleashes and that embraces differences, celebrates uniqueness aculture build to (DIB) Board &Inclusion a Diversity and gender within our organisation, we introduced race culture, talent, of variety huge the Reflecting POLICY OCCUPATIONAL SAFETY AND HEALTH (OSH) SAFETY AND HEALTH ENSURING BOARD & INCLUSION DIVERSITY • • • • • COMMITMENTS SUSTAINABILITY PEOPLEOUR • • • • • of employees. 100% to training sustainability Provide welfare. and safety worker Ensure wellbeing.and health inclusion, diversity, Promote our people. Look after, develop, engage and reward sustainability. and innovation of aculture Foster

vendor list. prequalified our from removal their to lead may Non-compliance of a vendor to our requirements amenities. sports and entertainment and food, adequate accommodation, drinking water and sites, remote to transport of means adequate equipment, aid first and insurance medical of when prequalifying vendors, including the provision We consider a wide range of worker welfare criteria more. and facilities, sanitary areas, rest designated on on Workplace General Amenities, with requirements 8.0 (CoP) Practice of Code and requirements OSHAD include laws Law. UAE OSH UAE Labour the and Management System, all applicable UAE OSH laws, OSH and Policy OSH our in set standards the with prequalification procedure that includes compliance We are also implementing a vendor selection Law. UAE Labour the and Ethics of Code own our of requirements the within operating are workers all that ensure we site, On lifecycle. project’s each of stages all through procurement from runs welfare worker on focus our workforce, project our of wellbeing and safety To the ensure WORKER'S WELFARE POLICY

Aldar Annual Report 2019 71 72 Strategic Report to future generations. of environment the is our greatest responsibility over time, in recognition that our stewardship ofimprove of our use resources efficiency the We to aim reduce our environmental and impact (continued)Sustainability PROTECTING OUR ENVIRONMENT OUR PROTECTING ENVIRONMENT • • • • • • • categories: seven – across environmental, economic, cultural and social – pillars four to relation in performance potential aproject’s rating for requirements detailed and guidance provides Estidama Park. Bateen Al and Park Water Yas Island Yas Mall, for 2011, in approvals rating Estidama receive UAE to the in developer first the have been to proud We are requirement. rating 1Pearl mandatory the least at 2010, achieving in Dhabi Abu of Council Executive by the mandated was it since developments Dhabi Abu our all for We have certifications Estidama therefore applied operational performance. and construction design, our enhance to process asystematic and tools multi-criteria providing in beneficial are They objectives. sustainability and strategic its achieve to business our helping in certifications formal of value the We recognise portfolio. our across that improve energy, water and management waste consumption, to investing in innovative technologies of opportunities to reduce energy and water most the making and developments new our for requirements rating sustainability stringent the meeting from range can approach responsible This throughout its lifecycle. asset each of impact environmental the manage we that and core, its at users its of wellbeing and health the has asset each that sure make we portfolio, our operating and managing building, planning, In centres. retail focused community- and destinations retail world-class leadingneighbourhoods, educational establishments, madeassets up of iconic developments, residential of portfolio have adiverse to proud are we At Aldar, AND RATINGS AND ACHIEVING OUR ENVIRONMENTAL OBJECTIVES • • • • • • • Innovative practice Innovative practice Stewarding materials Resourceful energy Precious water Liveable communities or buildings Natural systems Development process

and effective protection of the environment. environment. the of protection effective and activities work of management safe the enforce and enhance to designed is EHSMS Our properties. commercial and schools residential communities, employees, and suppliers partners across our our all for EHSMS Aldar the launched we 2018, In on the environment and all our stakeholder groups. operations our of impact negative any minimise and benefits the enhance to order in performance EHS our improve continuously to We work 2018. in Yason Island project Ansam our including rating, a2Pearl achieve to requirements minimum mandatory the exceeded In addition, some of our developments have • • • • • • process included: Estidama the underwent that projects our 2018, In (PCRS) System Rating Community Pearl (PVRS) System Rating Villa Pearl (PBRS) System Rating Building Pearl • • requirements: Estidama with line in projects our categorise which ratings, Gold and Silver Bronze, Aldar the We have developed requirements. Estidama and procedures development own our with line in are Our commitments sustainability for developments HEALTH AND SAFETY MANAGEMENT ENVIRONMENT, TO PRACTICES BEST APPLYING • • • • • • • • Yas Island Zone IB, Water’s Edge – PBRS –PBRS Edge Water’s IB, Zone Yas Island –PBRS Accommodation Staff RA, Yas Island –PBRS Showroom Car E3, Yas Island Tower B–PBRS Reflections Tower A–PBRS Reflections &PVRS 2–PCRS Phase Ghadeer Al baseline. interior water usage reduction from Estidama 15% minimum 901-2007 baseline; ASHRAE from reduction energy 15% minimum (PVRS); Villa 2Pearl baseline Estidama from reduction usage water interior 35% minimum 901-2007 baseline; ASHRAE from reduction energy 22% Minimum – (PBRS) Building =2Pearl Silver/Gold Aldar baseline. Estidama from reduction usage water interior 3% minimum baseline; Estidama from reduction energy 5% minimum (PVRS); Villa 1Pearl baseline Estidama from reduction use water 14% interior minimum baseline; 901-2007 ASHRAE from reduction energy 12% –Minimum (PBRS) Building =1Pearl Bronze Aldar

Aldar Annual Report 2019 73 74 Strategic Report • • • • established: This cycles. project industry construction long mitigating and certification incorporating lessons through learned Estidama chain, supply our across sustainability promote to Implementation Plan–Procurement (SSIP-P) in 2014 Strategy Sustainability Aldar the We launched contractors. third-party by our or by us directly managed whether assets, our all to apply EHSMS, our under stated requirements, The 31000). (ISO standards management risk and 19011); (ISO standards auditing 9001); (ISO standards quality as such standards, other of requirements 18001); OHSAS and 14001 (ISO standards EHS international relevant the of key features the incorporates It risk. and safety health, environment, the regarding EHSMS) (AD System Management Safety and Health Environmental Dhabi Abu the of standards high the with complies EHSMS Our (continued)Sustainability ENHANCING SUPPLYENHANCING CHAIN SUSTAINABILITY AND COMMITMENTS TO LIFE BRINGING OUR SUSTAINABILITY STRATEGIES PROTECTING OUR ENVIRONMENT CONTINUED ENVIRONMENT PROTECTING OUR • • • • to construction. design from projects for strategy Transition process. procurement established our with line in and Estidama to related strategies Service of our standard specifications. part as contractors all for procedure Reporting RFPs our all in included be to services design Pearl 2 1and Estidama for Service of Scope Standard

our developed land is dedicated to open spaces. open to dedicated is land developed our 21% over of average, enjoy. to On everyone for environments natural provide and needs community address to located and designed carefully are parks public and areas green spaces, open These visitors. and residents of wellbeing and happiness spaces and facilities to enhance the health, Every one of our developments includes dedicated impacts. social and evaluating our suppliers’ negative environmental for mechanism aformal with along department, Procurement the within function a sustainability build to working are we and criteria, environmental against of suppliers number increasing an year, screen we Each processes. contracting prominent role within our design, tendering and more even an taken has sustainability then, Since DEVELOPING GREEN SPACES • • • • • • COMMITMENTS SUSTAINABILITY ENVIRONMENTAL OUR • • • • • • and waste. recycling for projects pilot Implement Protect biodiversity. do. we everything in environment the on impact Avoid negative (CDP). Project Disclosure Carbon the with line in reporting to Commit andwaste energy. Management System (EMS) for water, Develop a comprehensive Environment assets. our across neutral carbon Become

and requirements. requirements. and standards applicable all exceed or meet to plans develop and projects our of assessments consultants to thorough undertake environmental environmental regional leading with We partner federal environmental and standards requirements. design, construction or operation abide by local and under projects our All value. biodiversity high of areas as designated areas protected environmentally EAD to relation in out them havewe mapped Beach, Raha Al and Island Reem Al Yas Island, Island, Saadiyat including key destinations, our across biodiversity the protect and understand To better development and ensure community protection. environmental awareness, facilitate sustainable raise that initiatives prioritise we To this, achieve ecosystems. marine and desert Dhabi’s Abu of biodiversity and groundwater quality, air the enhance and protect to guidelines EAD’s with aligned We are communities. our all within life and environment natural the protect to work we consultants, external expert of help the with activities, our in practices best international integrating and thorough environmentalundertaking assessments By requirements. EAD these possible, wherever exceeding or meeting, to committed is Aldar Dhabi. Abu across projects infrastructure management practices for development and private entities to promote environmentally sound and public all for conduct of standards clear place in put has (EAD) Dhabi –Abu Agency Environment The PROMOTING AND PROTECTING BIODIVERSITY

future generations. of benefit the for thriving and secure remains it that ensure to possible everything do to continue heritage is among our key priorities, and we will cultural and environmental Emirate’s the Preserving markets. produce local and projects farming community for area farm the preserved we by. aresult, As abide to contractors environmental management plans for our detailed place in putting including began, work construction the before vicinity the in wildlife protect to measures developed we field, the in experts the boundaries of the development. With leading within located Farms Zayed Sheikh the of heritage cultural the consideration into took which 2, Phase Another example is our for masterplan Al Ghadeer park. apublic with them replacing area, construction the from plots residential 23 of removal the 2017, in Plan included which Management aMangrove implemented and established we mangroves, these To protect habitat. natural protected of 150,703 sqm covers it Area Protected Mangrove the within Located environment. natural Dhabi’s Abu protecting to commitment Our West Yas development exemplifies our

Aldar Annual Report 2019 75 76 Governance Eastern University, USA. University, Eastern economics and political science from North in specialisation Dual aholds is Mubarak Al H.E. Co. Development Estate &Real Investment Jazeera Al Investment Company, Media Zone Authority and Qattara Al Group, Airways Etihad of member aBoard is Mubarak Al H.E. that, to addition In LLC. Academies &Aldar Company Nation Image L.L.C, Company, Miral Management Properties Assets Chairman of Tourism Development & Investment the as well as Dhabi &Tourism Abu of Culture of Department the of Chairman the is Mubarak Al H.E. Dhabi. Abu of Emirate the of Council Executive the of aMember is Mubarak Al H.E. region. MENA the in finance and investment on focusing London, in Capital Barclays bank investment and corporate the with worked Mubarak Al H.E. Aldar, joining to Prior organisation. within the Management and Facilities Management units &Asset Property &Leasing, Sales fast-growing the of that as well as businesses operational Aldar’s of development the to integral been has Mubarak Al H.E. Aldar. at Officer Management Chief and Portfolio Chief Executive Officer was he that, to prior and PSJC Properties Aldar of Chairman is Mubarak Al Khalifa Mohamed H.E. Board of Directors of Board CHAIRMAN AL MUBARAK HE KHALIFA MOHAMED Service from Georgetown University, USA. University, Georgetown from Service Foreign in Degree Science of aBachelor and USA, University, Harvard from Policy Public in Degree governmental consultant. Waleed holds a Master’s and acommercial as &Company McKinsey Manager. roles Past also include working with Project aSenior as Bureau Program Offsets UAE the with worked Waleed Mubadala, joining the Abu Dhabi 2030 Economic Vision. Prior to behind architects principal the of one was Waleed (Masdar), and InvestCorp Bank, Bahrain. Company Energy Future Dhabi Abu Petroleum, Emirates Investment Authority, Mubadala Market, Global Dhabi Abu of member aboard and Properties Aldar of Chairman Vice the also is He States. United the in Clinic Cleveland of Trustees of Board the of aMember is and Dhabi Abu Clinic Cleveland of Chairman as serves currently He objectives. business with line in are they ensure to investments and projects proposed all review and guidelines investment policies, establish investment company’s the develop to mandated is which member of Mubadala’s Investment Committee, a is Waleed portfolios. investment capital and Mubadala’s healthcare, real estate & infrastructure, leads and platform &Infrastructure Investments Alternative the of Officer Executive Chief also is He efficiently. coordinating are while ensuring that the company’s four platforms level group the at projects special and portfolio investment broad company’s the of oversight strategic has Muhairi Al Mokarrab Al CEO, Waleed Group Deputy As Company. Investment Mubadala CEO of Group Deputy the is Muhairi Al Mr. Waleed VICE CHAIRMAN CHAIRMAN VICE AL MUHAIRI MR. WALEED ALMOKARRAB AHMED Management Program at Harvard Business School. Business Harvard at Program Management alsohas successfully completed the General She America. of States United the in Pennsylvania Economics from School, The Wharton University of in Science of aBachelor holds Ghobash Ms. TakafulNational Co. “Watania”. and Bank Hilal Al Dhabi, Abu of Bank National of boards the on served also has she Previously, AD. Invest of Chairman Vice is and Bank Development Emirates “Etisalat”, Co Group Telecommunications Emirates of Directors of Board the of amember as serves currently Ghobash Ms. private team. equity the of amember was she whereby East Middle HSBC in professional investment an as worked she Council, the joining to Prior Council. Investment Dhabi Abu the at Department Situations Special Global the in Director is Ghobash Mariam Ms. BOARD MEMBER MEMBER BOARD SAEED GHOBASH MARIAM SAEED AHMED Portland State University, Portland, Oregon, USA. Oregon, Portland, University, State Portland Administration (Information Systems) from Mansour holds a Bachelor of Science in Business &gas. oil and finance aerospace, real-estate, infrastructure, healthcare, including sectors of anumber to exposed was He Group. UAE Offsets the with years three spent Mansour 2004, in Mubadala joining to Prior PJSC. Terminals Dhabi Abu PJSC and Finance Dhabi Abu LLC, Finance Dunia PJSC, Capital Waha of Boards the on served Mansour 10 years, last the Over PJSC. Maritime Energy Gulf LLC and FZ Investments Healthcare Arabian Anglo PJSC, Properties Aldar of member aboard as serves Mansour initiatives. strategic other as well as financing debt standalone raising on assets related Mubadala of anumber supported and advised has been exited with a profit. Additionally, Mansour company LeasePlan Corporation. The latter has management fleet Dutch the in stake Mubadala’s financing and Technics SR operator Overhaul and acquisition of Zurich Maintenance, based Repair leveraged buyout debt financing for the number of other transactions, including the a supported also Mansour field. Finance Project the in publications by leading awards numerous won deals Both 2009. July in Project Dolphin multi-tranche $4.1 billion debt financing for the the funding and closing on efforts the led also He 2012. February in bonds project 21' Dolphin billion $1.3 the closing in team the led He transactions. award-winning financing closing numerous and negotiating in role instrumental an played has Throughout his career with Mubadala, Mansour $40bn. circa of management under assets OMV, with and Petroleum Mubadala Chemicals, Nova Borealis, CEPSA, as such companies which include investments in prime global assets, platform’s to pertaining matters financial all on Platform the of Executives Senior and CEO the appraising and advising around revolve Company (Mubadala). His prime responsibilities Investment Mubadala in Platform Petrochemicals & Petroleum the for CFO the is Mansour BOARD MEMBER MEMBER BOARD MULLA AL MOHAMED MANSOUR

Aldar Annual Report 2019 77 78 Governance University, USA. Columbia from Law in SJD and University Princeton from Politics in aBA holds Mr. Edelman and Festival. Fisher House Foundation and Tribeca Film Institute the Fund, Heroes Fallen Intrepid The Foundation, Robinson Jackie the of boards the on also is He Dhabi. Abu of Government the of arm investment strategic the Mubadala, and Companies Related The Partners, Estate Real Grove to advisor an is He transactions. developments, corporate mergers and acquisitions large complex international real estate on practice his concentrates Mr.Trust. Edelman Trust,Mortgage AMD and Equity Commonwealth Blackstone of Board the on is Mr. Edelman Board of Directors (continued) Directors of Board BOARD MEMBER MEMBER BOARD EDELMAN LEE MARTIN accounting from UAE University. from accounting in degree Bachelor’s and USA University, Operations Management from California State and -Production Science in Degree Bachelor’s a UAE, Sharjah, of University from administration business in degree aMaster’s holds Mr. Falasi Al Company. Investment Rayan Al of Chairman the also was He fields. trading and finance estate, real industrial, the in companies of numbers other large as well as Bank, Commercial International The PJSC and Estate Real Sorouh of member Board a is He Group. the of audit internal the of director of role the on took and Department Private the at term his after Group Royal joined Mr. Falasi Al inactivities that capacity. allsupervised the operations department’s He Nahyan. Al Sultan Bin Zayed Sheikh of operations of department the Private Department the of under-secretary as worked Mr. Falasi Al Group. Royal the of Committee Audit the of aMember and LLC Risco of Directors of Board the of member a also is He 2009. since Properties Hydra of Officer Executive Chief been has and sector estate real the in experience extensive has Mr. Falasi Al BOARD MEMBER MEMBER BOARD FALASI AL SULAYEM ABDULLA SAEED ALI from the Canadian University, UAE. UAE. University, Canadian the from also holds a Master’s in Business Administration and UAE, Dubai, in University American the from Engineering Civil in agraduate is Ameri Al Eng. LLC. Properties Hydra LLC Co. and Investment Solutions Building Materials Co. LLC, Al-Jazeera Technical Reem Al LLC, Group Management Asset Eltizam Company LLC, Royal Development Company LLC, Holding Company LLC, Tamouh Investments of International Holding Company PJSC, Mina Member aBoard and Group Royal the at Counsel Investment International Chief the is Ameri Al Eng. Trojan Holding, and Aldar at role his to addition In employees. 25,000 over of ateam to base asmall from expanding resulted which in Company has the subsidiaries, its and company holding the both of strategy growth the leads he role this In Trojan of Holding. Director Managing and Board the of Chairman Vice as role of appointments which among others includes his Directors in November 2015 adding to a portfolio of Board Properties Aldar the joined Ameri Al Eng. management. and growth business of fields the in as experience from the well as construction industry significant brings Ameri Al Salem Hamad Eng. BOARD MEMBER MEMBER BOARD HAMAD SALEM AL MOHAMED AMERI

Aldar Annual Report 2019 79 80 Governance Executive Management the University of Melbourne, Australia. Melbourne, of University the Electrical Engineering (Honors) from of Talal agraduate is Hospitality. & Hotels Aldar and Academies Management, Al Aldar Jazira Capital, including Abu Dhabi Motorsports companies several of boards the on serves currently and Aldar at positions senior several held He 2013. in Sorouh Management since the merger with Asset of Director Executive and ofposition Chief Development Officer Aldar having previously held the at Officer Executive Chief Talal the is OFFICER EXECUTIVE CHIEF TALAL AL DHIYEBI

from London Business School, UK. holder and holds a in M.Sc. Finance aCFA is Charter Mr. Busaibe Equities. Manager focusing on European aPortfolio as worked he where (ADIA), the Abu Dhabi Investment Authority at years seven spent he that, to Prior Abu Dhabi Investment Company. –the AD Invest at Equities Private formerly Senior Vice President of was and GCC, the in sectors estate real and equity private the on focused Properties, an investment company CEO Arady of as served that to prior SENAAT of and CFO the recently most public companies in Abu Dhabi. He was and private several at roles profile high of anumber held having investment, and finance of fields the in experience of years 15 over has Mr. Busaibe OFFICER INVESTMENT CHIEF BUSAIBE SALEH JASSEM

and its subsidiary businesses. subsidiary its and Aldar, both within growth sustainable will facilitate team management innovation. Our new enterprise risk of aculture embed and performance enhance future, the for Aldar position to work teams &Innovation Strategy and Transformation Digital Aldar’s governance. and community, people, environment, with an emphasis on the economy, making the business more sustainable on focus wide acompany is there that ensures department sustainability Aldar’s dedicated report, sustainability first Company’s the launching of 2019 ahead in up set been Having Risk Management. Strategy & Innovation and Enterprise Sustainability, Transformation, Digital Corporate Finance, Treasury, Finance, including, remit abroad for Officer, Greg Fewer is responsible &Sustainability Financial Chief As SUSTAINABILITY OFFICER CHIEFFINANCIAL & GREG FEWER

of England and Wales in 2008. in Wales and England of Court Supreme the of aSolicitor as and 2002, in Queensland of Court Supreme the of aSolicitor as admitted was and Queensland University of Technology, from both Laws, of Bachelor a and Arts, of aBachelor holds Brett Chance. Clifford and Jaques, Hickey Mallesons Lawyers, Stephen Lawyers, Macrossans namely; UK, the and Australia native his both in Firms Law in career his of decade first the Development Company, having spent Mubadala at Counsel Legal Senior was Brett Aldar, joining to Prior corporate activities and transactions. important most Company’s the of many in role akey leadership played has Brett lawyer, focused commercially strategic legal and regulatory issues. A respective teams with regards to Senior Management and their Directors, of Board the to advisor an as is role his of Akey aspect environment. regulatory local the with compliance in proceed they that ensuring business activities of the Company, all facilitates he role this In 2012. since held has he positions Properties, Aldar at Secretary Company and isBrett Scrymgeour Counsel General COMPANY SECRETARY AND COUNSEL GENERAL SCRYMGEOUR BRETT Aldar Academies. of Directors of Board the of Technology. She is also a member of Colleges Higher the from Graduate of Business Administration a is Bayan organization. the of success term long the support to necessary and the administrative infrastructure and continue to develop HR services talent, retain and motivate manage, as well as strategy, and people between abilities lie in strengthening the link Her building. team of record a strong an innovative, motivational leader with improve corporate performance. She is and objectives business its achieve to company the helping Professional, aCIPD is Bayan Benefits. and Budget forecasting and Compensation Transformation, Employee Relations, Performance Management, Talent development, Talent Acquisition, change and Organizational Management - Leading organizational Management with in expertise Change HR Operational and Strategic in extensive knowledge and experience government Bayan sectors. has experience in the private and of 20years over with professional HR An accomplished and results oriented EXECUTIVE DIRECTOR EXECUTIVE PERFORMANCE AND PEOPLE BAYAN HASSAN AL HOSANI

Aldar Annual Report 2019 81 82 Governance 1. Company’s policy, requirements and aspirations. the develop to order in amended, as companies, commercial on (20) 2015 of No. Law Federal the as well as Exchange, Securities Dhabi Abu and Authority Commodities and Securities the by both set standards and principles the of application the consideration into takes framework governance Company’s The company. stock joint apublic as operate PJSC shall Properties Aldar which through framework the define Association of Articles Company’s the and governance of levels highest the represent Shareholders operates. Company the which in communities the as well as shareholders, into taking account its for the interests of Company all the of stakeholders, including its employees, value the suppliers, customers, business partners, enhancing continuously to committed is Directors of Board The growth. long-term and sustainable Company’s the of cornerstones the of one as system governance astrong of existence the considers Directors of Board The Executive Management and employees. Directors, of Board Company’s the among synergy and efforts joint demonstrates clearly and rules, governance of application proper and optimal the on keenness Company’s the reflects which Report, Governance aCorporate issues annually Company The companies. stock joint public of governance and discipline corporate of (7/RM) standards No. 2016 the of on Authority Commodities and Securities the of Chairman the of decision the to adhere to committed is Company) the or PJSC (Aldar Properties Aldar governance system: Company’s the of application the from resulting key elements and framework governance the illustrates diagram following The environment. business changing and controls regulatory the with consistency its ensure to necessary) (where elements its amends and framework governance the reviews periodically Directors of Board the system, governance the of the of application effectiveness the measure to efforts monitoring constant of context the In implementation. effective its ensuring and framework governance the of development and preparation the was system governance effective an implementing in step first The Exchange. Securities Dhabi Abu and Authority Commodities and Securities the by both defined conduct professional of codes and requirements legislative the with consistent are objectives Company’s the that emphasis the with businesses, Company’s the managing in management Company’s the of effectiveness the ensuring for responsible also are They aspirations. and expectations shareholders’ with line in are objectives Company’s the that ensuring for shareholders the to accountable is Directors of Board The For the year ended 31For year the 2019 ended December Corporate Governance Report INTRODUCTION

GOVERNANCE APPLICATION IN ALDAR PROPERTIES ALDAR IN APPLICATION PROPERTIES GOVERNANCE Remuneration Committee Executive Committee Executive Nomination and SECURITIES AND COMMODITIES AUTHORITY AND ABU DHABI SECURITIES EXCHANGE EXCHANGE SECURITIES DHABI ABU AND AUTHORITY COMMODITIES AND SECURITIES

Executive Management Board of Directors Board Shareholders Internal Control Management Audit Committee Audit Auditor • • • • • • include: System Control Internal the of key elements The effectively. system this of continuity the ensuring in participation their to contributing System, Control Internal the of importance the of aware fully employees all makes that away such in business Company’s the of regulations and rules the set has Company the of Directors of Board The 1.2 • • • • • • following: the include elements which Committees, its and Board the of framework and responsibilities objectives, the for framework overall the define that regulations of aset include level Board at Company of governance the of Key elements 1.3 • • • • follows: as Management Executive the of tasks and responsibilities objectives, the for framework overall the define that regulations of aset include level Management Executive the at governance of key elements the Authority, of Table Delegations of the to addition In practically. operations daily of needs the meeting and practices international best the of application the shareholders, of interests the of protection the consideration into taking Company, the of business and affairs the manage to authority have the shall Management Executive The Directors. of Board by the developed plan business the with accordance in business day-to-day its conduct and strategy Company’s the implement shall Management Executive The 1.1 of Directors, Executive Management, Internal Control System Board of and Compliance levels the at Officer. elements governance the of overview an is following The field. this in standards international highest the of application the and systems, these of controls and requirements regulatory and legal the consideration into taking Company, the in governance of systems and standards of application the regarding reviews periodic performs Directors of Board The Management, and the Internal Control System. Executive Directors, of Board including: levels, different involves system governance the of application the above, indicated As • • • • • • • • • • • • • • • • Continuous market disclosure. Continuous Whistleblower Policy. Company’s Social Responsibility. Shareholders of the Company and the Assembly. General auditorExternal and the Internal Control Department. and divisional levels. departmental all at works and activities Company’s the regulate that regulations and charters policies, of approval and Development Table of Delegations of Authority was conducted by the Board of Directors at its meeting No. (05/2018) held on 14 2018. May on (05/2018) No. held meeting its at Directors of Board by the conducted was Authority of Table Delegations of the of review comprehensive last The requirements. business Company’s the to according it amends and reviews periodically Directors of Board the Authority, of Table Delegations of the of effectiveness and efficiency To the Company. by the ensure exercised activities and works the of conduct optimal by the characterised environment working organised an of creation the to contributes which and extent, fullest the to tasks and duties their perform to delegated are Members Management Executive all which through atool is Authority of Table Delegations of The elements. complementary important other the of one as Authority of Table Delegations of the implemented and developed has Directors of Board The Authority. of Table Delegations of Conduct. Business of Code Committee. Executive the of Charter ofCharter the Nomination and Remuneration Committee. Committee. Audit the of Charter Directors. of Board the of Charter Code of Business Conduct. Business of Code ofCharter the Risk Management Committee. ofCharter the Tender Committee. ofCharter the Management Committee.

GOVERNANCE ELEMENTS RELATED TO THE INTERNAL CONTROL SYSTEM GOVERNANCE ELEMENTS RELATED TO THE BOARD OF DIRECTORS OF BOARD THE TO RELATED ELEMENTS GOVERNANCE GOVERNANCE ELEMENTS RELATED TO THE EXECUTIVE MANAGEMENT

Aldar Annual Report 2019 83 84 Governance as of 31 December 2019: 31 of December as capital share Company’s the in children) and spouses (their relatives first-degree their and Directors by the owned securities and shares the shows table following the Directors, of Board by the made disclosures the of light the in and foregoing, the on Based projects. future and current assets, shares, its in invest and projects Company’s the study and consider any undisclosed material information. This enhances the of confidence of aresult investors as them and shareholders, and encourages them to affect may further that aharm remove to or interest personal for information internal undisclosed any use to prohibited also are they opportunities, equal of principles the of adoption the on based disclosures and declarations timely their to addition In Company. the of securities and shares the in tradings and transactions their controlling regulations and rules with compliance of necessity and importance the in believes firmly Company) the of insiders and employees all with (along Directors of Board The Mr. Waleed Ahmed Salem Mubarak Al Khalifa Mohamed H.E. Name 2. 31For year the 2019 ended December Corporate Governance (continued) Report Mr. Hamad Salem Mohammed Mohammed Salem Mr. Hamad Mrs. Mariam Saeed Ahmed Ghobash Ahmed Saeed Mariam Mrs. Mr. Mansour Mohamed Al Mulla Sulayem Al Falasi Al Sulayem Abdullah Mr. Saeed Ali the meetings held during 2019 according to the requirements and business interests of the Company. the of interests business and requirements the to 2019 according during held meetings the during Committee Executive its and Directors of Board by the Table Delegations of the on items the to conducted were revisions and amendments partial some addition, In 14 2018. May on (05/2018) No. held meeting its at Directors of Board by the approved was which Authority, of Table Delegations of the to conducted was review material and Acomprehensive operations. and activities its in changes developments, its to regard with Company the within requirements work of dynamics and management risk control, of level the between suitability and balance ensure to review periodic to subject is turn in which Authority, of Table Delegations of the in documented be shall mandates These term. three-year arenewable for regard, this in authority specific its with accordance in Officer, Executive Chief the to Company the of management day-to-day the of tasks delegated also Directors of Board The regulations. and charters relevant their to according operate which below), stated as Committee, Executive Committee, Remuneration and Nomination Committee, (Audit Committees its to authorities its of some delegated has Board The Company. the in applied controls and management the supervising and controlling framework, governance the of effectiveness the monitoring for responsible is Directors of Board The affairs. business Company’s the supervise to is Directors of Board the of role The Edelman Lee Mr. Martin 3. Al Moqarrab Al Mehairy Al Moqarrab Al Al-Amerii

TRANSACTIONS AND TRADINGS OF THE COMPANY’S DIRECTORS AND THEIR DIRECT RELATIVES IN THE THE IN RELATIVES DIRECT THEIR AND DIRECTORS COMPANY’S THE OF TRADINGS AND TRANSACTIONS BOARD OF DIRECTORS COMPANY’S SHARES DURING 2019

Chairman of Board of Directors of Board of Chairman Vice-Chairman of the Board the of Vice-Chairman Position/Relationship Member Member Member Member Member Shares owned 31 December 100,000 431,466 211,580 (Share) 1,275 2019 as of of as – – – by first-degree relatives in the the in relatives Shares owned capital of the the of capital (Relation Company 314,560 “Wife”) (Share) – – – – – – Transactions Total Sales (Share) – – – – – – – Total Purchases Transactions (Share)

– – – – – – – • • • • • • • • • • • • the same time, such matters exceed the limits of the power vested in the Executive Management of the Company. the of Management Executive the in vested power the of limits the exceed matters such time, same the At sensitivity. by high characterised and nature astrategic of are which companies), stock joint public of governance and discipline institutional of 2016 standards of on (7) No. Authority Commodities and Securities of Chairman the of decision the and amended, as companies, commercial (02) concerning No. 2015 of Law Federal Association, of Articles its Association, of Memorandum Company’s the in stipulated responsibilities and duties the to addition (in control its under matters of alist set Board The 3.2 • • • • • responsibilities: and tasks following the has Chairman the particular, In Company. the of Management Executive the with works continuously He Management. Executive the and Board the between akey link considered be shall Board the of Chairman the and effectively, duties and responsibilities his out carries he that ensuring and Board the leading for responsible be shall Board the of Chairman 2019. The March 20 on held was that meeting Assembly General the in shareholders by the issued decision the with accordance in was and Company, the of Directors of Board the of formation and re-election of process the 2019, following March 20 on (02/2019) No. held meeting its at decision Directors’ of Board the to according PJSC Properties Aldar of Directors of Board the of Chairman of position the undertakes Mubarak Al Khalifa Mohamed H.E. 3.1 SUCH MATTERS INCLUDE: • • • • • • • • • • • • • • • • • recommendation issued by the Audit Committee). a (upon auditor external the of appointment the on Assembly General Annual the to recommendations Providing Audit Management. Internal of Director Rapporteur, Company Officer, Compliance Officer, Executive Chief of: each dismissal or Appointment and Commodities Authority, in coordination with the Nomination Securities and Remuneration the Committee. with accordance in Directors of Board the of Members the appointing and nominating of process the Monitoring knowledgeability and transparency. competitiveness, efficiency, of degree by ahigh characterised is which market, exchange the in listed securities Company’s the in trade to able generally are investors the that ensuring and shareholders to information accurate and timely Providing regard. this in appropriateness of the administrative management plans, in coordination the with the and Nomination and Remuneration resources such of Committee adequacy the ensure to policy resource administrative the of appropriateness the Monitoring Management. Executive by the proposed policies expenditure and investments major for proposals of Approval Monitoring the appropriateness and effectiveness of the risk management and governance framework of the Company. policies. and statements financial and plans business sheets, balance of follow-up and Adoption Company. the of controls and procedures policies, necessary the of implementation and Development Enhancement of the Company’s culture and core values ​​ values core and culture Company’s the of Enhancement them. in vested tasks the of Management Executive by the exercise the up following and operations Company’s the of control and Supervision plans. and policies strategic Company’s the of review and Development Facilitating the effective contribution of the Board’s Non-Executive Directors, and creating constructive relationships between the executive and non-executive between members. relationships constructive creating and Directors, Non-Executive Board’s the of contribution effective the Facilitating of Directors. Board the to views their communicate and shareholders with communication effective ensure to actions Taking appropriate interests. Company’s the of achievement the ensures that amanner in managed is Board the that ensure to order in participate effectively and fully to Directors all Encouraging under his supervision. Secretary Company the to or Director aparticular to responsibility such assign to authority the has Chairman The agenda. the in included be to proposes Control Internal of Director or Officer Compliance Secretary, Company Management, Executive Directors, the issues any account into taking Directors, of Board the of meetings all of agendas of adoption and Development time. on issues proper key and all discusses and responsibilities its fulfils effectively, works Board the that Ensuring CHAIRMAN

COMPETENCIES OF THE BOARD OF DIRECTORS OF BOARD THE OF COMPETENCIES as the ideal destination for job-seekers. for destination ideal the as

Aldar Annual Report 2019 85 86 Governance • • Notes: Edelman Lee Mr. Martin Falasi Al Sulayem Abdullah Mr. Saeed Ali Ghobash Ahmed Saeed Mariam Mrs. Mr. Mansour Mohamed Al Mulla Mr. Hamad Salem Mohammed Al-Ameri Mr. Waleed Ahmed Salem Al Moqarrab Al Mehairy Mubarak Al Khalifa Mohamed H.E. Members Member: each for appointment of year and The following shows table the classification of the Board’s Member (executive/non-executive/independent/non-independent) independency. of capacity the in adecline or defect any finds Board the if account into taken be shall procedures relevant the and emergence of relationships that the may and arise on independent which members, interests of may lead to conflict a breach the of Accordingly, independency, shall be reported companies. stock joint public of governance and discipline institutional of standards (7/RM) No. 2016 of on Authority Commodities and Securities the of Chairman the of decision the to according Committee, independence of each Member is annually, assessed which falls under the responsibilities of the Nomination and Remuneration All Members of the Board are independent. The Board adopted has a policy on the independency of under Members, which the Directors. of Board by the approved Directors of Board the of Charter the and companies, stock joint public of governance and discipline institutional of 2016of standards on (7) No. Authority Commodities and Securities of Chairman the of decision the to according Company the of establishment the since members independent the of mostly consisted Directors of Board the of membership the that noted be should it regard, this In • • • • • Notes: 7 6 5 4 3 2 1 SN namely: Members, seven includes currently Properties Aldar of Directors of Board The 3.3 3. 31For year the 2019 ended December Corporate Governance (continued) Report

Mr. Waleed Ahmed Salem Al Moqarrab Al Mehairy was elected as a Vice-Chairman by the Board of Directors at its meeting No. (02/2019) held on on held (02/2019) No. meeting its at 20 March Directors of Board the by aVice-Chairman as elected was Mehairy Al 2019. March Moqarrab 20 Al on held Salem (02/2019) No. Ahmed Mr. meeting Waleed its at Directors of Board the by aChairman as elected was Mubarak Al Khalifa Mohamed H.E. the as elected was Vice-Chairman, Mehairy Al and this was made, by secret Moqarrab Al voting. Salem Ahmed Mr. 2019, Waleed March 20 on held (02/2019) No. Meeting Directors’ of Board the During March 20 on held (02/2019) No. meeting its at voting. decision secret by 2019, Directors’ of Board the of virtue by aChairman as elected was Mubarak Al Khalifa Mohamed H.E. Al Falasi, Member, and Mr. Mohamed Haji Al Khoori, Member, and Mr. Lee Martin Edelman, Member. Mohamed Salem Mr. Hamad and Vice-Chairman, Al Second Ameri, Member, and Mr. Mehairi, Al Mansour Mohamed Al Mulla, Member, Muqarrab Al and Mr. Salem Ahmed Khalifa Mohamed Al Ahmed Mehairi, Member, Mr. Waleed and and Mr. Mr. Abubaker and Ali Saeed Abdullah Sulayem Vice-Chairman, Chairman, First Mubarak, Al Khoori, Al Siddiq Khalifa Mohamed H.E. namely: members, nine included Directors of Board Company’s the 2019, March 20 to Up 2019. March 20 on held of meeting shareholders the Assembly by issued General the in decision the to Company the according members seven to members nine from reduced been has Directors Company’s the of number The the of meeting Assembly General 2019. the by March 20 on issued held decision Company the with accordance in responsibilities and duties its assumed Directors of Board current The

BOARD OF DIRECTORS DIRECTORS OF BOARD FORMATION OF THE BOARD OF DIRECTORS 2019. Members Mr. Martin Lee Edelman Lee Mr. Martin Falasi Al Sulayem Abdullah Mr. Saeed Ali Ghobash Ahmed Saeed Mariam Mrs. Mr. Mansour Mohamed Al Mulla Mr. Hamad Salem Mohammed Al-Ameri Mr. Waleed Ahmed Salem Al Moqarrab Al Mehairy Mubarak Al Khalifa Mohamed H.E. (CONTINUED) Member Member Member Member Member Board the of Vice-Chairman Directors of Board of Chairman Position Position Member Member Member Member Member Board the of Vice-Chairman Directors of Board the of Chairman Independent Yes Yes Yes Yes Yes Yes Yes Status Executive No No No No No No No Appointment Year of of Year 2019 2013 2016 2015 2017 2011 2011

(Member) Edelman Lee Mr. Martin (Member) Sulayem Al Falasi Abdullah Mr. Saeed Ali (Member) Ghobash Mrs. Mariam Saeed Ahmed • Note: (Member) Al Mulla Mr. Mansour Mohamed Al Ameri (Member) Mohamed Salem Mr. Hamad Board) the of (Vice-Chairman AlMoqarrab Mehairy Mr. Waleed Ahmed Salem Al (Chairman) Mubarak Al Khalifa Mohamed H.E. Member 2019: 31 of December as bodies, commercial and economic governmental, supervisory, the in positions current their and companies, and bodies public other in Members Board’s the of membership the shows table following The 3.4 This information is based on the disclosures made by the Board’s Members as on 31 December 2019. December 31 on as Members Board’s the by made disclosures the on based is information This

MEMBERSHIP OF THE DIRECTORS IN OTHER COMPANIES AND CORPORATIONS AND COMPANIES OTHER IN DIRECTORS THE OF MEMBERSHIP

Gulf Energy Maritime (GEM) P.S.C. (GEM) Maritime Energy Gulf LLC Company Petroleum Mubadala Company OMV Mubadala Investment Company PJSC Group Royal L.L.C. Properties Hydra Risco L.L.C Zayed University Bank Development Emirates “Etisalat” PSC Corporation Telecommunications Emirates AD” “Invest Company Invest Dhabi Abu Council Investment Dhabi Abu Mubadala Investment Company P.J.S.C L.L.C. Co. Investment Solutions Technical Al-Jazeera L.L.C. Co. Materials Building Reem Al L.L.C. Group Management Asset Eltizam Royal Development Company L.L.C. L.L.C. Company Tamouh Investments L.L.C. Company Holding Mina International Holdings Company P.J.S.C Trojan Holding Emirates Investment Authority Company Dhabi Tamkeen Abu Investcorp Bank L.L.C. Company Tamouh Investments Mubadala Petroleum Market Global Dhabi Abu –USA Hospital Clinic Cleveland Dhabi –Abu Hospital Clinic Cleveland PJSC Company Capital Waha Mubadala Investment Company P.J.S.C Co. Development Estate &Real Investment Jazeera Al Media Zone Authority Company Investment Qattara Al Image Nation Company Group Airways Etihad Tourism Development & Investment Company Miral Management Properties Assets L.L.C. Dhabi &Tourism –Abu Culture of Department Dhabi Abu of Council Executive Company/Body Member of the Board of Directors of Board the of Member Directors of Board the of Member Directors of Board the of Member Adviser Member of the Audit Committee Chief Executive Officer Directors of Board the of Member Member of the University Council Directors of Board the of Member Directors of Board the of Member Board the of Vice-Chairman Special Global the in Director Position Chief Financial Officer of Petroleum Petroleum of Officer Financial Chief Directors of Board the of Member Directors of Board the of Member Directors of Board the of Member Directors of Board the of Member Directors of Board the of Member Directors of Board the of Member Directors of Board the of Member Director Managing and Vice-Chairman Directors of Board the of Member Directors of Board the of Member Directors of Board the of Member Directors of Board the of Member Directors of Board the of Member Directors of Board the of Member Trustees of Board the of Member Chairman Directors of Board the of Chairman & Infrastructure Sector Alternative Investments Sector the of Officer Executive Chief and Officer Executive Chief Deputy Group’s Directors of Board the of Member Directors of Board the of Member Directors of Board the of Member Chairman Directors of Board the of Member Chairman Chairman Chairman Council Executive the of Member & Petrochemicals Sector & Petrochemicals Opportunities Department Opportunities

Aldar Annual Report 2019 87 88 Governance Al Moqarrab Al Mehairy Al Moqarrab Al Mr. Waleed Ahmed Salem on 20 March 2019. March 20 on held Assembly General the at shareholders Company’s by the issued decision the with accordance in Directors of Board Company’s the of formation and re-election for procedures and process the through Directors, of Board Company’s the to Ghobash Ahmed Saeed Mariam Mrs. of joining the in represented member), (one woman one includes Directors of Board the formation, current its In 3.5 Edelman Lee Mr. Martin Al Mubarak Khalifa Mohamed H.E. Members Members: Board’s the of experiences and qualifications educational the shows table following The sector. estate real the in particularly management, and business in experiences have vast Members all Directors, of Board the of Charter the to According 3.4 3. 31For year the 2019 ended December Corporate Governance (continued) Report Sulayem Al Falasi Al Sulayem Abdullah Mr. Saeed Ali Ahmed Ghobash Mrs. Mariam Saeed Mulla Al Mohamed Mr. Mansour Mohamed Al Ameri Salem Mr. Hamad

BOARD OF DIRECTORS DIRECTORS OF BOARD FEMALE REPRESENTATION ON THE BOARD OF DIRECTORS DURING 2019 DURING DIRECTORS OF BOARD THE ON REPRESENTATION FEMALE CORPORATIONS AND COMPANIES OTHER IN DIRECTORS THE OF MEMBERSHIP

- - Educational Qualifications ------

University, USA. Georgetown from Affairs International in Science of Bachelor USA. University, Harvard from Government and Administration ina Business specialisation with Policy Public of Master from Princeton University, USA. University, Princeton from Science Political in Bachelor Columbia University, USA. from Science Legal in PhD USA. University, Eastern North from science political and economics in specialisation Dual UAE University. from Accounting of Bachelor State University,California USA. and Operations Management from –Production Science of Bachelor Sharjah. of University the from MBA of America. States United the in University State Pennsylvania from Wharton, from Bachelor’s degree in Economics Oregon, USA. University, State Portland from Administration Business of Bachelor (AUD). Dubai in University American the from Engineering Civil of Bachelor University. Canadian the from MBA (CONTINUED)

18+ (in years) (in and management offield business period in the Experience 46+ 12+ 23+ 12+ 20+ 15+

       Real Estate and

Constructions (CONTINUED)     Oil, Energy and Facilities Experience Field       Banks, Finance and Insurance  Telecommunications

Government and        nonprofit, public and other organizations Healthcare and  Pharmaceutical Industries  Media • • • • • • follows: as costs other and expenses general all of deduction after distributed are Company the of profits annual net The profits. net of method distribution the defines Association of Articles (48) the of Article Directors.” of Board by the omission or default to due not imposed were fines such that knew it if fines such deduct to not entitled be shall Assembly General The Board. the of remunerations the from deducted be shall year fiscal ended the during Association of Articles Company’s the or Law the of Directors of Board by the violations to due Company the on imposed Fines aDirectors. as duties normal his above Company the serve to works additional performs or efforts special makes Committee, any in works Member such if Members its of any to Directors of Board the by determined salary monthly or remunerations or fees expenses, additional pay may Company year. The fiscal the for profits such 10% of exceed not shall it that provided Company, the of profit net the of apercentage be shall Directors the of remunerations “The that: provides Properties Aldar of Association of Articles (28) the of Article 3.7 Directors. as functions their with associated issues core and developments sector business, major regarding Company the outside and inside specialists from information periodic receive also Directors The meetings. Board’s the during Management Executive the by communicated developments latest the with them provide as well as responsibilities, their perform properly can Directors the that so activities, its and Company the regarding information comprehensive with Directors the provide would that communication of means and tools all provided has Company the addition, In sites. Company’s the to visits field conduct to and management the from information comprehensive obtain to aims which programme, orientation this joined Directors new The Directors. as defined are responsibilities and duties rights, their which during programme, orientation an to subject are Directors new The 3.8 Committees. its or Board by the determined as Company by the borne be shall consultations external such of cost The Committees. its or Board the with consultation after interests of non-conflict on based consultation external independent an seek to entitled be shall Director each Directors, of Board the of Charter the to According 3.6 • • • • • • of Aldar Properties PJSC for the year 2018. year PJSC the for Properties Aldar of Report Governance Corporate the in disclosed was which detail the per 2018 as year the during Directors of Board the from emanating Committees the of meetings the attending for fees the includes amount This million 16,075,000.00 AED to amounted 2018 31 December ending year fiscal the for Directors of Board Company’s the of Members by the received remuneration total 2019, the March 20 on held meeting its at Company the of Assembly General by the issued decision the on Based 2018 year the for Directors of Board the of members the of remuneration Total Assembly. General by the approved and Directors of Board by the proposed distributions profit of and/or decisions policy the with accordance in shareholders the to profits quarterly or semi-annual annual, distribute may Company The Board. by the determined as reserve optional an of establishment the for allocated or year next the to out carried shareholders, the to distributed be shall thereof part any or profit net the of remainder The reserve. legal and depreciation both deducting after ended year financial the of profit net 10% the of exceed not shall remunerations such that provided annually, Assembly General by the determined be to aremuneration receive shall Directors The years. subsequent of profits from claimed be not may profits such distribution, for enough not are ayear in profits net the if that provided reserve, legal the of deduction after shareholders the to distributed be to profit net the of percentage the determine shall Assembly General The distribution. for enough profits net achieve not does Company the when years the in shareholders the to profits distribute to used be may excess such capital, paid-up Company’s the of 50% exceeded reserve the If shareholders. the to distributed be not may reserve legal The resumed. be shall deduction the decreased, reserve the If capital. paid-up Company’s the of 50% to amounts reserve total the when stopped be shall deduction This reserve. legal the to allocated and deducted be Ten (10%) shall percent

REMUNERATIONS OF THE DIRECTORS AND ALLOWANCES OF ATTENDANCE AT THE MEETINGS OF THE BOARD BOARD THE OF AT MEETINGS THE ATTENDANCE OF ALLOWANCES AND DIRECTORS THE OF REMUNERATIONS ORIENTATION PROGRAMME ELIGIBILITY TO OBTAIN AN INDEPENDENT CONSULTATION INDEPENDENT AN OBTAIN TO ELIGIBILITY AND ITS COMMITTEES

Aldar Annual Report 2019 89 90 Governance necessary decisions thereon. The following table shows the dates of these meetings: these of dates the shows table following The thereon. decisions necessary the take to and Company the to related matters operational and strategic discuss 2019 to during (5) meetings five held Board The 3.9 • • • 05/2019 04/2019 03/2019 02/2019 01/2019 Meeting Mr. Martin Lee Edelman Lee Mr. Martin Falasi Al Abdullah Mr. Saeed Ali Ghobash Ahmed Saeed Mariam Mrs. Mr. Mansour Mohamed Al Mulla Mr. Hamad Salem Mohammed Al-Ameri Mr. Waleed Ahmed Salem Al Moqarrab Al Mehairy Mubarak Al Khalifa Mohamed E. H. Director follows: as was meetings above-mentioned the of Attendance · Note: 3.8 3. 31For year the 2019 ended December Corporate Governance (continued) Report · · · · Notes:

• • •

The Board of Directors did not receive any additional allowances or salaries during the year 2019. year the during salaries or allowances additional any receive not did Directors of Board The 2019 year the during reasons their and attendance allowances Committees’ the than other received has Board the of amember that fees additional or salaries Allowances, 2020. March in held be to intended meeting its at Assembly General by the it regarding issued is adecision as soon as updated report the and disclosed be will it and thereof, respect in issued been has recommendation no and yet determined been not has It 2019 for Committees its and Board the of meetings the at attendance of Allowances 2020. March in meeting its at Assembly General by the issued is adecision as soon as updated report the and disclosed be will it and issued, been not has arecommendation and determined be to yet has It 2019. for Directors the of remunerations proposed Total Board by circulation (see clause 3.10 which explains that). explains which 3.10 clause (see circulation by Board submit to and matters operational and strategic recommendation discuss to 2019 thereon to the Board during (See clause 6.3 for more meetings (5) information five on the Executive held Committee). In addition, some Committee decisions were by passed the Executive the meetings, Board’s the to addition In The attendance of the Directors at these meetings is represented by their personal attendance. according to the Company’s Memorandum of Association and Articles of Association, and in line with the applicable laws and regulations in this regard. this in regulations and laws applicable the with line in and Association, of Articles and Association of meeting each of Memorandum beginning the at Company’s account the to into taken according and considered are meetings some for Directors the by submitted attendance for apologies All Assembly General the in 2019. March 20 on shareholders held was which Company’s the by meeting issued decision the on based Directors of Board Company’s of the Board joined she as Company’s time, the of that at aMember not was Directors she as (01/2019), No. meeting Board Company’s the attend not did Ghobash Ahmed Saeed Mariam Mrs. Board Company’s the of amember as tenure his of Directors. during (01/2019) No. meeting Directors of Board Company’s the attended Al-Khoury Siddiq Baker Mr. Abu

MEETINGS OF THE BOARD OF DIRECTORS OF BOARD THE OF MEETINGS REMUNERATIONS OF THE DIRECTORS AND ALLOWANCES OF ATTENDANCE AT THE MEETINGS OF THE BOARD BOARD THE OF AT MEETINGS THE ATTENDANCE OF ALLOWANCES AND DIRECTORS THE OF REMUNERATIONS BOARD OF DIRECTORS DIRECTORS OF BOARD AND ITS COMMITTEES COMMITTEES ITS AND (CONTINUED) (CONTINUED)

Date 11 November 2019 2019 7 August 2019 May 13 2019 March 20 2019 February 13 Meeting Meeting 01/2019

      02/2019 Meeting Meeting       – 03/2019 Meeting Meeting       -

04/2019 Meeting Meeting       – 05/2019 Meeting Meeting        No. of personal attendances 4 4 3 5 5 5 5 The following diagram represents the Company’s organisational structure: organisational Company’s the represents diagram following The Committee. relevant by the continuously reviewed is which markets, with interaction and transparency disclosure, of level a high ensure to and interaction, management and coordination of level ahigh ensure to order in levels divisional and departmental all at structure organisational effective and efficient an implementing and developing been has Properties Aldar inception, its Since 4.1 4. ControlledBanks by the Government of Abu Dhabi & Major shareholder Ventures Joint and projects Financing A main shareholder Dhabi Abu of Government The Related party 3.10 The following table shows the transactions done with related parties during 2019: during parties related with done transactions the shows table following The 3.11 • • • • where: companies, stock joint public of governance and discipline institutional of (7/RM) No. 2016 standards of on Authority Commodities and Securities the of Chairman the of decision the and Association of Articles (24) Company’s the of Article in stipulated controls relevant the consideration into taking by circulation, (4) four resolutions passed Directors of Board 2019, the During • • • •

which explains that). 3.9 clause (see with complied been has Associations of Articles Company’s the in specified meetings Board’s the of number minimum the Therefore, Directors. of Board the of ameeting as considered be not shall by circulation resolutions passed The meeting. such of minutes the in included be to Board the of meeting next the at presented were and by majority, writing in approved were Board by the passed resolutions The approval. and review for documents, necessary all with writing, in resolutions the given have been Directors The emergency. considered are passed were resolutions the which for cases the that agreed Directors of Board the of majority The

Internal Control

Department ORGANISATIONAL STRUCTURE OF THE COMPANY ORGANISATIONAL STRUCTURE AND EXECUTIVE MANAGEMENT BUSINESS TRANSACTIONS WITH PARTIES RELATED TRANSACTIONS BUSINESS RESOLUTIONS PASSED BY CIRCULATION Executive Committee Executive Audit Committee Audit Nomination and Remuneration Committee Board of Directors Board Chief Executive Chief Executive Development Management Chairman Officer transaction the of (type) Nature Interest Costs Interest Income Interest Finance Income Finance Income Revenue Revenue Investments Asset and Asset and Administration Administration (in AED thousand) AED (in Transaction value Finance, and IR and 1,770,831 176,910 36,530 45,786 8,982 7,553

Aldar Annual Report 2019 91 92 Governance Chief Investment Officer Chief Officer Financial • • • • • • • • • Team: Management Executive the of members the and Officer Executive Chief the to Directors of Board by the assigned responsibilities and duties the are Following years. (3) renewable three is Officer Executive Chief the in vested duties and responsibilities of validity The delegation. such of powers the determines which requirements legal and Authority of Table Delegations of Board, the of policies current the to according Team, Management Executive the to duties his of some delegate may Officer Executive Chief The Authority. of Delegations Table of the under thereto granted authorities the to according Board, by the approved and discussed expenses and income operating of budget the and plan operational the of framework the within act to authority the has Officer Executive Chief The Deputy Chief Executive Officer Executive Chief Deputy Chief Executive Officer Position 4. 31For year the 2019 ended December Corporate Governance (continued) Report 4.3 (F) (E) (D) (C) (B) (A) Notes: remunerations received during 2019: and salaries dates, appointment their Team, and Management Executive the of Members the shows table following The weekly. meetings its holds Committee this as Company, the of activities and operations all up follow shall Committee Management the reason, any for Officer Executive Chief the of absence the in that noted be should It Team directly. Management Executive the with meets periodically Officer Executive Chief The Company. the of framework plan strategic the with line in issues, key business and Company the of operations day-to-day the managing for responsible are They plan. strategic approved the within and Directors, of Board by the specified authorities their to according work divisions) and departments its of Officers Executive and Officer Executive Chief the Team includes (which Management Executive The 4.2 A. • • • • • • • • • attention to it and take the necessary decisions. necessary the take and it to attention Board’s the draw to matters, essential are which or nature, sensitive or strategic of matters in Directors of Board the Consulting performance. their supervising and tasks, management daily their in Management Executive the of Members the Directing regard. this in amendments necessary the making and Company, the of structure organisational the of review Periodic other practices. and contracts bids, its to related matters the including Company, the in integrity and Conduct, Business of Code culture, institutional of establishment and departments, and divisions Company’s the between integration and coordination Ensuring decide. to right the reserves Directors of Board the which on matters the consideration into taking affairs, daily and operations of Management Directors. of Board by the approved policies and plans business strategies, the with line in Company the of Management management. day-to-day and operations strategies, performance of development the on Directors of Board the to recommendations Putting shareholders, customers and employees. its towards Company the of responsibilities the account into taking operations, and projects Company’s the of Development the Company to customers, suppliers, shareholders, financial institutions, employees and media. about information comprehensive and adequate of provision the including Company, the of management integrated Providing

LEADERSHIP, STRATEGY BUSINESS AND MANAGEMENT The position of the Chief Development Management Officer remained through the year 2019. year the through remained 2019. June 30 Officer from as Management position this from Development Chief the of resignation his position The submitted he until Company the with position his hold to continued Officer Executive Chief date. Deputy that The until Company the with Officer Executive (01/2018) No. Operations Chief meeting the its at was he as 2018, decision January 28 on Directors’ of held Board the to according 2018 January 28 on position his occupied Officer Executive Chief Deputy The date. that until Company the of Officer Development (06/2017) No. Chief the meeting was 2017, he its at as November 12 decision on held Directors’ of Board the to 2017 according November 12 on position his RSU. occupied 296,524 Officer Officer: Executive Chief Investment The Chief 374,017 RSU, Officer: Financial Chief RSU, 935,463 Officer: of Executive aperiod Chief over vest follows: will as RSUs years four applicable where plan, incentive aLong-term of part are Team members Management Executive eligible The plan incentive Long-term the per as vesting criteria. year relevant the in vested that units RSU of value the on based figures combined are AED in amounts The

RESPONSIBILITIES AND AUTHORITIES OF EXECUTIVE MANAGEMENT TEAM MANAGEMENT EXECUTIVE OF AUTHORITIES AND RESPONSIBILITIES ORGANISATIONAL STRUCTURE AND EXECUTIVE MANAGEMENT EXECUTIVE MANAGEMENT TEAM 17 April 2016 17 April 1 November 2011 27 June 2013 (D) 2013 June 27 (C) 2006 April 15 Date of appointment Date 1,072,152.00 (E) 1,072,152.00 1,934,964.00 and allowances 2,712,564.00 2,216,316.00 Total salaries during 2019 (in AED) (in

3,895,500.00 (CONTINUED) 1,234,800.00 1,557,500.00 Short TermShort Incentives 2019 2019 N/A

Remunerations 401,383.00 629,077.00 559,947.00 during 2019 (in AED) (in 0.00 (A) or will be payable in cash for 2019 2019 for cash in remunerations

See Note (B) Note See See Note (B) Note See See Note (B) Note See in the future

Any other

Nil

(B)

the Committee from time to time as per the business requirements. business the per as time to time from Committee the to delegated competencies other and Authority, of Table Delegations of the in established standards and controls limits, the to according contracts, and assets of management projects, development of management the to related works commissioning and tenders of awarding the regarding recommendations necessary the making bidders, and providers service of lists and management purchase and contracts to related practices and activities the considering and up following in specialises Committee This • • follows: as are Committees These 2018. 14 November (07/2018) No. on held meeting its at Committees these of charters the all of review acomprehensive conducted Directors of Board The Committees. these of effectiveness and efficiency the ensure to Directors of Board by the reviewed charters periodically Such are etc. assessment, performance periodic and reporting action, of mechanism the function, responsibilities, powers, their appointment, their of way the and members their specifying charter aspecial to subject be shall Committees these of Each Company. the of operations and activities daily the on reflect positively which functions, Management Executive the enhance and support will that powers and authorities of aset them to delegated has Board Team. The Management Executive the of Members of anumber include which Committees, Management of anumber form to instructed Directors of Board the addition, In • • • • • • • • • • • B. C. • • • • • • • • • • • • • Tenders Committee: business the per as time to time from Committee the to delegated competencies other and projects, joint and subsidiaries the to related and issues, recommendations and opportunities related thereto, acquisitions and available Company investment by the matters opportunities, adopted process control investment the to addition in thereto, granted incentives and allowances privileges, and resources human of needs Company’s the as well as plans, environment business indicators, key performance and initiatives values vision, Company’s the plan, work Company, the of procedures and policies Authority, of Delegations Table of governance, of framework the to regard with necessary where Committees, and/or its Board the to recommendations necessary the issues and indicators key of performance achievement the ensures divisions, various of performance the up related including parties, customers, shareholders, investors, suppliers, employees, etc. In addition, it the of reviews interest and follows the ensures that amanner in out carried and exercised are they that and Directors, of Board by the adopted policies and charters the with comply activities operational and business practices, Company’s the that ensuring in specialises Committee This necessary. when and basis aweekly on held are Committee the of meetings Team. The Management Executive of Members the of anumber membership its in includes and Officer, Executive Chief by the chaired Committee: Management approval. for Directors of Board and/or the Committee Executive the Committee, Audit the to thereof submission and thereon recommendations and Verification of all investments and major expenditure of the Company’s and capital, development of appropriate proposals operations. and businesses its of results the and Company the of position financial fair and atrue reflect Company the of reports financial the that Ensuring Directors. of Board by the approval for Statement Financial annual of Development activity. Company’s the to related information administrative and financial of reliability and accuracy credibility, the Ensuring thereof. utilisation efficient the ensuring and Company, by the managed assets and funds Protecting system. financial and records data, of integrity the Ensuring Company. the of operations all of effectiveness cost and efficiency the Studying amended. as companies, commercial (02) on No. 2015 of Law Federal and Exchange, Securities Dhabi Abu Authority, Commodities and Securities the of requirements legal and legislative the with Compliance Directors. of Board by the adopted policies Effective application and management of all of essential risk aspects management, internal control and compliance, to support Risk management. Conduct. Business of Code the with employees by the compliance Ensuring

- - SUPERVISIONFINANCIAL AND ASSETS MANAGEMENT RISK MANAGEMENT AND INTERNAL CONTROL and when necessary basis aweekly on meetings its of number membership its holds Committee the and Team Company, the of Management Tender (B) Committee necessary. when and basis aweekly on held are Committee the of meetings Team. The Management Executive the of Tenders (A): Committee requirements. It is divided into two Committees as follows: as Committees two into divided is It is chaired by the General Legal Counsel, and it includes in its membership a number of the Executive Executive the of anumber membership its in includes it and Counsel, Legal General by the chaired is chaired by the Chief Executive Officer, and includes in its membership a number of the Members Members the of anumber membership its in includes and Officer, Executive Chief by the chaired ​, objectives, strategy, strategy, objectives,

Aldar Annual Report 2019 93 94 Governance 2 1 Company AdvisoryOther Works Service therefore charged fees 2019 and during auditor external by the provided services Other AED) (In 2019 31 December on ended year the for statements financial the for fees Total audit Company the of auditor external an as spent years of Number auditor partner of Name firm audit of Name 4. 31For year the 2019 ended December Corporate Governance (continued) Report 5. effectiveness. their ensuring and mechanisms work their reviewing for and Company, the in responsibilities their for responsibilities Committees’ such acknowledge Committees these of Members • • 4.3 5 4 3 AuditOther Works services: these for charged fees the 2019 and during auditor external by the provided services the shows table following The Fujairah. and Khaimah Al Ras Sharjah, Dubai, Dhabi, Abu in offices Touche has & Deloitte Company. the of Management Executive the and Directors of Board the from independently operates and Economy of Ministry by the accredited is It audit. of field the in experience extensive with firms audit external leading the of one as considered is &Touche 2019. Deloitte March 20 on held meeting its at Company the of Assembly General Ordinary by the issued adecision under 2019 31 December ending year fiscal the for Properties Aldar of auditor external an as appointed &Touche was (M.E.) Deloitte 6 follows: as services consultation accounting and financial received Properties 2019, Aldar during addition, In Total 7 during 2019. during Company the of statements financial and/or annual interim the regarding reservations any submit not did auditor Company’s The Total • •

(see clause 9.0 of this Report for more information on this Committee). this on information more for Report 9.0 this of clause (see necessary when and quarterly held are Committee the of meetings Team. The Management Executive of Members the of anumber membership its in includes it and Officer, Executive Chief by the chaired Committee: Risk Management requirements. business the per as time to time from Committee the to delegated competencies other and issues, liquidity Company, the of investments strategic and opportunities control, investment the to related issues on Authority) of Table Delegations of the to (according and/or recommendation approval review, the in specialises committee This necessary. when and basis aweekly on held are Committee the of meetings Team. The Management Executive Investment Committee:

UBS &Young Ernst JLL Ardent Advisory & Accounting LLC UAE Frank Knight CBRE PWC RESPONSIBILITIES AND AUTHORITIES OF EXECUTIVE MANAGEMENT TEAM TEAM MANAGEMENT EXECUTIVE OF AUTHORITIES AND RESPONSIBILITIES ORGANISATIONAL STRUCTURE AND EXECUTIVE MANAGEMENT EXTERNAL AUDITOREXTERNAL chaired by the Chief Executive Officer and includes in its membership a number of the Members of the the of Members the of anumber membership its in includes and Officer Executive Chief by the chaired Details and nature of the service the of nature and Details service the of nature and Details Financial Advisor Consulting and Advisory Services Audit Statements Financial Other Valuation Advisory Services Services Professional Consultancy Services &Consultancy Study Market Services &Advisory Procedures Upon Agreed Valuation Advisory Services Hospitality Market Assessment and Property Portfolio Review &VAT Review Portfolio Property and Assessment Market Hospitality Audit Services (CONTINUED) (CONTINUED) 894,000 year One George Najim &Deloitte Touche Amount (in AED) (in Amount

3,858,750 7,432,409 1,237,638 460,000 490,000

775,000 415,000 504,222 822,638 615,700 728,737 Amount Amount (in AED) (in

The following are the members of the Audit Committee: Audit the of members the are following The Management, the as Committee deems appropriate. Executive the of Members the of presence the without auditor, external the with meet also shall Committee The issues. main the of informed are Committee the of members the that ensure to Department Control Internal of Director the and Management Executive the with meetings periodic hold shall Committee the of Chairman the hand, other the On finance. and accounting in have experience shall members its of one least at and aspects, financial with familiar be shall Committee the of members all that requires Committee Audit the of charter The members. independent non-executive three of consists Committee Audit The governance. and management risk controls, internal of framework atight within efficiently, and effectively achieved are Company the of objectives main the that ensures Committee Audit The audits. external and internal and reporting financial policies, accounting Systems, Control Internal management, risk to respect with governance Company’s by the imposed responsibilities the of Directors of Board by the performance the to contributes Committee Audit The effectiveness. its ensuring and mechanism, work its of review his Company, the in system Committee’s the for responsibility his acknowledges Committee, Audit the of Chairman Al-Mulla, Muhammad Mr. Mansour • • • Notes: Ameri Al Mohamed Salem Mr. Hamad Falasi Al Sulayem Abdullah Mr. Saeed Ali Mr. Mansour Mohamed Al Mulla Audit Committee members 6.1 2019. March 20 on held meeting Assembly General the at Shareholders by the process election Directors of Board the 019, following March 20 on (02/2019)No. held meeting its at Committees these restructured Board the addition, In companies. stock joint public of governance and discipline corporate of (7/RM) standards No. 2016 the of on Authority Commodities and Securities the of Chairman the of decision the with responsibilities and functions their of harmony and compatibility the ensure to Committees all restructured Board The Committees. these of effectiveness and efficiency the ensure to amended and updated be to reviewed periodically are charters Committees The these of mechanism. reporting and framework structure, responsibilities, objectives, its defining acharter has Committee Each • • • Directors’ of Board the are following The decisions. its of implementation the ensure to them to responsibilities and powers delegated has and functions, its of implementation the to contribute to (3) Committees three formed has Directors of Board The 6. • • •

Executive Committee. Executive Nomination and Remuneration Committee. Committee. Audit Up to 20 March 2019, the Audit Committee consisted of the following: Mr. Mansour Mohammed Al Mulla as Chairman of the Committee, Mr. Ali Saeed Saeed Mr. Ali Committee, the of Al Falasi, Member and Mr. Chairman as Ahmed Khalifa Al-Muhairi, Mulla Member. Al Mohammed Mr. Mansour following: the of consisted Committee Audit the 2019, March 20 to Up meeting its at 2019. Committee Audit 7August on the of held (03/2019) No. decision the to pursuant Committee Audit the of Chairman as 2019. March 20 elected on was held (02/2019) Mulla No. Al meeting Mohamed its at Mr. Mansour Directors of Board the by issued decision the to pursuant restructured was Committee Audit The

AUDIT COMMITTEE BOARD OF DIRECTORS’ COMMITTEES Committees: Position Member Member Committee the of Chairman

Aldar Annual Report 2019 95 96 Governance • • • The Audit Committee’s Charter defines the responsibilities of the Audit Committee as follows: as Committee Audit the of responsibilities the defines Charter Committee’s Audit The 6.1 6. 31For year the 2019 ended December Corporate Governance (continued) Report C) B) A) • • •

– – – – – – – – – – – – – – – on: focusing and year the during work normal their of as part them reviewing quarterly), and semi-annual (annual, reports and statements financial Company’s the of integrity the Ensuring Exchange. Securities Dhabi Abu and Authority Commodities and Securities the to disclosure continuous of amechanism Ensuring approval. for Directors of Board the to thereon recommendations making and auditor, external the and Management Executive the with them discussing thereto, attention due paying statements, and reports financial quarterly and semi-annual annual, the in included be should or are that items unusual and significant any Considering

– – – – – – – – – – – – – – – AUDIT COMMITTEE assigned by the Board of Directors or through an initiative by the Committee upon the approval of the Board. the of approval the upon Committee by the initiative an through or Directors of Board by the assigned previously Company) the within cases fraud (including issues control internal on key audits the of results the Studying such of units strategic and operational the of systems control and security network databases, and records the by auditing strategies and policies such of effectiveness and efficiency of evaluation and follow-up strategies, working and policy its to Monitoring and following up the implementation of risk management framework and Internal Control Systems according procedures. and policies such of development the to contributes that amanner in effectively, mission its performing ensure to Management, Executive its with Company the of procedures and policies the reviewing and Discussing the of Systems Control Internal the of development the to contributes that amanner in tasks and mission its performing in efficiency and effectiveness its evaluating Management, Executive the with System Control Internal the Discussing effectiveness. and efficiency their assess to Systems, Control Internal Company’s the of review Periodic their fees, considering their resignation determining and termination applications. requirements, business the to according functions audit internal perform to party external any of Appointment INTERNAL CONTROL SYSTEM AND RISK MANAGEMENT Securities Exchange, and making recommendations to the Board of Directors in this regard. this in Directors of Board the to recommendations making and Exchange, Securities Dhabi Abu and Authority Commodities and Securities the to annually sent Report Governance Corporate the of Review Directors. of Board Company’s by the adopted and approved framework governance the with compliance management Company’s the of review periodic Regular relevant legal and legislative systems. the with compliance full ensuring and framework governance the of application internal the controlling and Supervising COMPANY’SGOVERNANCE reporting. financial to related requirements legal other and disclosure incorporation, of rules with Compliance Exchange. Securities Dhabi Abu and Authority Commodities and Securities by the established standards accounting with Compliance Presumption of business continuity. audit. the from resulting amendments Significant discretion. management’s the to subject are which aspects Highlighting practices. and policies accounting in changes Any REPORTS FINANCIAL BOARD OF DIRECTORS’ COMMITTEES Company. departments. (CONTINUED) (CONTINUED)

F) E) D) – – – – – – – – – – – – – – – – – – – – –

– – – – – – – – – – – – – – – – – – – – – Company. the of regulations and policies the to according Conduct, Business of Code the of violation or interests of conflict of cases Team, including Management Company’s the of integrity the affect that issues considering and investigating as well as matters, compliance on required) when Officer Compliance the or Counsel General the (and Management the from updates regular Obtaining – – – up: following and Reviewing systems. and regulations laws, applicable with compliance for procedures and practices of appropriateness the Reviewing Considering the appointment, resignation or dismissal of the Compliance Officer. Conduct. Business of Code the with compliance employees’ the Reviewing COMPLIANCE Committee. by the considered matters all on Directors of Board the to Reporting interest. of be may which issues outstanding no are there that ensure to ayear once least at Department Control Internal of Director the with Meeting the Company. Ensuring that the Internal Control adequate has Department employees and the appropriate and authority position within time. the on guidance and advice with him providing and Department Control Internal the of Director the of performance the evaluating and reporting, and follow-up planning, to regard with particularly any), (if auditor internal and Department Control Internal of functions of quality the of Evaluation responsibilities. its exercise to necessary information the obtaining in difficulty or work his of scope the on restrictions as such functions audit out carrying in encountered difficulties any on Department Control Internal the of Director the discussing and thereon, taken were actions necessary the and discussed and received have been Management Executive by the issued responses and suggestions and auditor received by the Company’s management responses thereon, ensuring the and that the findings and recommendations submitted Department by the Control internal Internal the of Director by the Committee the to submitted reports the Reviewing providers, their resignation or termination. audit internal the and Department Control Internal of Director the appointing and selecting of process the Considering plan. audit annual approving and reviewing Department, Control Internal the of framework the reviewing Department, Control Internal the of structure organisational and resources activities, the Reviewing DEPARTMENT CONTROL INTERNAL auditing approved the with compliance their account into taking audits, of effectiveness and scope nature, the Discussing ayear. once least at auditor external the with meet shall Committee The duties. its perform to order in Officer Financial Chief the and Management Executive the Directors, of Board Company’s the with Coordinating taken. be to steps the on recommendations making and actions take to necessary considers it which on issues identifying Directors of Board the to Development and application of the auditor external appointment policy, submission of the and report recommendations AUDITOR EXTERNAL and review and control of the efficiency of such management. such of efficiency the of control and review and control, internal manage to necessary resources of availability auditors, external and internal between coordination Ensuring work. the complete to needed information obtaining or work of scope the limit may that restrictions including audit, his during face may auditor external the that problems any Discussing provided thereon. timely were responses that and thereon, taken were actions necessary the that discussed, and reviewed have been they that ensuring and systems, control or accounts financial records, accounting the on Management Executive the or Directors of Board the to auditor by the raised questions essential any and plan work and mission auditor’s external the Reviewing regard. this in Directors of Board the to recommendations making and auditor external the of performance the Reviewing statements. financial the in applied policies accounting the of appropriateness the on auditor external the with Discussing standards. auditing approved the to according effectiveness its and audits of Monitoring and following up the independency and of objectivity the external auditor and discussing the nature and scope – – – Efforts made by the Company’s Management to ensure compliance with the Code of Business Conduct. Business of Code the with compliance ensure to Management Company’s by the made Efforts Company. the affect substantially may which systems, legal and legislative in updates and Developments systems). and regulations rules, internal (including activities Company’s the to related requirements legislative and legal other and requirements disclosure and inclusion with compliance of system follow-up the of Effectiveness standards.

Aldar Annual Report 2019 97 98 Governance The Audit Committee held five (5) meetings during 2019 as follows: 2019 as during (5) meetings five held Committee Audit The 2013. 6November on held (06/2013) No. meeting its at it approved turn in which regard, this in Directors of Board the to development and implementation of the relevant regulations the to up ensure followed their and effectiveness, submitted a recommendation violations, reporting of policy whistleblower the reviewed (04/2013), No. meeting its at Committee, Audit The Mr. Mansour Mohamed Al Mulla Member follows: as were attendees meetings’ above-mentioned The 05/2019 04/2019 03/2019 02/2019 01/2019 No. Meeting 6.1 6. 31For year the 2019 ended December Corporate Governance (continued) Report · · · · Note: Mr. Ali Saeed Abdullah Sulayem Al Falasi Al Sulayem Abdullah Mr. Saeed Ali Mr. Hamad Salem Al Ameri Al Salem Mr. Hamad H) G)

– – – – –

The attendance of the members at these meetings is represented by their personal attendance. meeting according to the Company’s Memorandum of Association and Articles of Association, and in line with the applicable laws and regulations in in regulations and laws applicable the with line in and this Association, of Articles and Association of each of Memorandum beginning the at Company’s account into the to taken and according meeting considered are meetings some for members Committee the by submitted attendance for apologies All Committee. this of restructuring number the meeting regarding its 2019 in March 20 on held Directors of was that Board (02/2019) Company’s the by issued decision the to pursuant Committee Audit the of amember Committee Audit became He the of time. that at amember yet not was he as (01/2019), No. meeting Committee Audit the attend not did 2019 Ameri Al March 20 on held Mohamed (02/2019) No. Salem Mr. meeting Hamad its at Directors of Board the by issued decision the to the pursuant where time, that at reconstituted was Committee the of committee amember as capacity his in (01/2019) No. meeting Committee Audit the attended Mehairi Al Khalifa Mr. Ahmed

– – – – – regard. AUDIT COMMITTEE and correcting any deviations therein. deviations any correcting and violations, reported the with dealing in management Company’s by the taken procedures investigation the Reviewing investigations. of impartiality and independency the ensure to violations such of investigations of procedures the up Following procedures. and policies such of reviews periodic conducting and violations, such internalreporting, control or other matters in secret, identifying the steps to conduct independent financial and the fair in investigations on violations potential any report to employees the enable that controls and procedures policies, of Development EMPLOYEES’ REPORTS AND DISCLOSURES Consideration of any other matters or subjects as directed by the Board of Directors in this regard. this in Directors of Board by the directed as subjects or matters other any of Consideration Company management. and auditors internal auditors, external Committee, Audit between: communication open and free of channels Creating OTHER RESPONSIBILITIES AND COMPETENCIES BOARD OF DIRECTORS’ COMMITTEES (CONTINUED) Position Chairman of of Chairman Member Member the Committee the (CONTINUED)

Meeting Meeting 01/2019   02/2019 Meeting Meeting   - Date 11 November 2019 2019 17 October 2019 7 August 2019 May 12 2019 February 12 03/2019 Meeting Meeting    04/2019 Meeting Meeting    05/2019 Meeting Meeting    attendances No. of

3 5 5

• • • • • • • • follows: as Committee the of responsibilities the defines Committee Remuneration and Nomination the of Charter The • • • Notes: Ghobash Ahmed Saeed Mariam Mrs. Mr. Mansour Mohamed Al Mulla Edelman Lee Mr. Martin Members of Nomination and Remuneration Committee The Nomination and Remuneration Committee includes the following Committee. the of members: competencies the within falling matters substantive the with familiar are Committee the of members the that ensure to Department, Resources Human of Director the and Management Executive the with meetings periodic holds Committee The Nomination and Remuneration Committee consists of three (3) independent non-executive The members. Chairman of the and opportunities facing the Company and the skills and challenges experience the needed in account the into future. taking Board, the of plans succession the on recommendations makes and practices, best reflect that The Nomination and Remuneration to Committee reports the Board on human resources management and compensation policies effectiveness. its of verification and mechanism, work its of review his Company, the in system Committee’s the for responsibility his acknowledges Committee, Remunerations and Nomination the of Chairman Edelman, Lee Mr. Martin 6.2 • • • • • • • • Any other competencies and functions determined by the Board of Directors from time to time. to time from Directors of Board by the determined functions and competencies other Any approval. for Directors of Board the to made be may that changes regarding recommendations making and Directors of Board the of structure the of Review Board. the of membership for required qualifications and capabilities the of adescription of preparation and Directors, of Board the of membership the for skills required the of Review regulations. and laws applicable the to according Directors of Board the for nomination for procedures the of follow-up and organisation Directors, of Board the for nomination of mechanism and policy the of approval and Development policy. training and resource human the review periodically and follow-up monitor, Development, of their selection. basis the and employees, and Management Executive Senior of level the at competencies of needs Company’s the Identifying Management are reasonable and proportionate to the performance of the Company. Executive Senior the to granted benefits and remunerations the that ensure shall Committee The annually. it reviewing and employees, and Directors the of salaries and incentives benefits, remunerations, of granting the for policy the of Development laws and regulations. applicable with accordance in regard this in actions necessary the take to Board the to matter the present shall it independence, Ensuring the independence of the independent If members. the Committee found that a member had lost the requirements for Up to 20 March 2019, the Nomination and Remuneration Committee consisted of the following: Mr. Martin Lee Edelman, Chairman, Mr. Mansour Mohamed Mohamed Mr. Mansour Chairman, Al-Mulla, Member Edelman, and Mr. Lee Muhammad Mr. Haji Martin Al-Khoury, Member. following: the of consisted Committee Remuneration and Nomination the 2019, March 20 to Up Committee the by 2019. March issued 11 on held decision (02/2019) the No. to meeting pursuant its at Committee &Remunerations Nominations the of Chairman the as elected was Edelman Lee Mr. Martin held (02/2019) No. meeting its at issued decision 2019. March 20 on Directors’ of Board the to pursuant reconstituted was Committee Remunerations and Nomination The

NOMINATION AND REMUNERATION COMMITTEE Member Member Committee the of Chairman Position

Aldar Annual Report 2019 99 100 Governance Mr. Mariam Saeed Ahmed Ghobash Ahmed Saeed Mr. Mariam Mr. Mansour Mohamed Al Mulla Edelman Lee Mr. Martin Member follows: as were attendees meetings’ above-mentioned The 02/2019 01/2019 No. Meeting follows: 2019 as during (3) meetings three held Committee Remuneration and Nomination the Therefore, Authority. Commodities and Securities the of regulations and laws applicable the with accordance in requirements legislative its fulfil to and responsibilities its perform to annually meeting one least at hold shall Committee Remuneration and Nomination the that decided Board the 2013, 1July on held (04/2013) No. meeting its at Directors of Board the of decision the on Based 6.2 6. 31For year the 2019 ended December Corporate Governance (continued) Report • • • Notes: Ghobash Ahmed Saeed Mariam Mrs. Ameri Al Mohamed Salem Mr. Hamad Mr. Waleed Ahmed Salem Al Moqarrab Al Mehairy Committee Executive the of Members members: following the includes Committee Executive The matters. substantive the with familiar are Committee the of members the that ensure to Management Executive the with meetings The Executive Committee consists of three (3) independent non-executive The members. Chairman of the Committee holds periodic performance. and projects for priorities sets and strategy Company’s the of control and assurance provides It Directors. of Board the in role advisory an plays Committee Executive The effectiveness. its of verification and mechanism, work its of review his Company, the in system Committee’s the for responsibility his acknowledges Committee, Executive the of Chairman Al-Mehairi, Al-Muqarrab Salem Ahmed Mr. Waleed 6.3 • • • Notes:

Up to 20 March 2019, the Executive Committee consisted of the following: Mr. Walid Ahmed Salem Al Muqrab Al Muhairi as Chairman, Mr. Abu Baker Siddiq Siddiq Baker Mr. Abu Chairman, as Al-Khoori, Member and Mr. Muhairi Al Hamad Salem Muhammad Al-Amiri, Muqrab Al member of the Committee. Salem Ahmed Mr. Walid following: the of consisted Committee Executive the 2019, March 20 to Up its at Committee the of 2019. decision 8April on the to held (01/2019) No. pursuant meeting Committee Executive the of Chairman as elected was 2019. March 20 Mehairy on Al held (02/2019) No. Moqarrab Al meeting Salem its at Ahmed Mr. Waleed Directors of Board the by issued decision the to pursuant reconstituted was Committee Executive The The Committee attendance of this of the Members at these meetings is represented restructuring by their the personal attendance. regarding 2019, March 20 on place Board took which Company’s (02/2019) No. the by issued meeting its at decision the to Directors of pursuant Committee Remunerations and Nomination the amember yet joined not she was as she as time, (01/2019) that at No. meeting Committee the of Committee Remunerations and Nomination the attend not did Ghobash Ahmed Saeed Mariam Mrs. its at 2019. Directors of March 20 on Board the held by was issued that (02/2019) No. decision the to meeting pursuant reconstituted was Committee Remunerations and Nomination the where time, that at Mr. Mohamed Haji Al-Khoori attended the Nomination and Remunerations Committee meeting No. (01/2019 in his capacity as a member of the Committee

NOMINATION AND REMUNERATION COMMITTEE BOARD OF DIRECTORS’ COMMITTEES EXECUTIVE COMMITTEE EXECUTIVE Position Member Member Committee the of Chairman (CONTINUED) (CONTINUED) Position Member Member Committee the of Chairman Date 11 November 2019 2019 February 13 Meeting Meeting 01/2019   02/2019 Meeting Meeting    attendances No. of 2 2 1

Mr. Waleed Ahmed Salem Member follows: as were attendees meetings’ above-mentioned The 05/2019 04/2019 03/2019 02/2019 01/2019 Meeting • • follows: as responsibilities its defines Committee Executive the of Charter The Mr. Hamad Salem Salem Mr. Hamad follows: 2019 as during (5) meetings five held Committee Executive The Mrs. Mariam Saeed • Note:

• • Al Moqarrab Al Mehairy Al Moqarrab Al Mohamed Al Ameri Ahmed Ghobash – – – – – review: and supervision of field the In – – – – In the field of investment strategy and policy adoption: The attendance of the Members at these meetings is represented by their personal attendance. – – – – – – – – – Review of the main objectives and key financial ratios established by the competent management Committees. management competent by the established ratios key financial and objectives main the of Review investments. of effects the of Review regard. this in recommendations appropriate making and capital, the increase to need the to related requirements of Review Monitoring the performance of investments and tenders. performance therein. of level the up following and projects, development the of indicators key of performance approval and Review Authority. Table Delegations of by the prescribed restrictions and limits the to according tenders substantial the to related tenders awarding and Department Procurement the of strategy the of Approval management. asset and projects development the of strategies and policies the of approval and Review Authority. of Table Delegations of the in prescribed restrictions and limits the to according projects development and investments to related decisions of Approval level. Company the at policies and strategy investment the of Supervision

Position Chairman of the Committee the of Chairman Member Member Meeting Meeting 01/2019    02/2019 Meeting Meeting    03/2019 Meeting Meeting    26 December 2019 26 December 2019 16 December 10 November 2019 2019 1 August 2019 8 April Date 04/2019 Meeting Meeting    05/2019 Meeting Meeting   

attendances No. of 5 5 5

Aldar Annual Report 2019 101 102 Governance 7.2.1 follows: as committee such of competencies and duties the identified Company the of Management the addition, In securities. and shares Company’s the in trading their and insiders of affairs the in specialized acommittee formed Company the of Management the companies, stock joint public of governance and discipline institutional of 2016 standards of on (7) No. Authority Commodities and Securities the of Chairman the of decision the of implementation In mechanism, and verification of its effectiveness. its of verification and mechanism, work its of review their Company, the in system Committee’s the for responsibility their acknowledge members Committee • • • members: following the includes Committee Trading Follow-up and Affairs Insider The 7.2 Exchange. Securities Dhabi Abu and Authority Commodities and by Securities prescribed requirements all to committed are and shares, Company’s the in trading their of disclosure for requirements the regarding commitments their of aware are Directors of Board the of Members The Estate. Real Sorouh and Properties Aldar between discussions and negotiations merge the in spent period the with conjunction in place took that period prohibition the as such subsidiaries, its or Company the of employees or Management Executive Directors, of Board the of Members are they whether allowed, is by insiders trading no which during imposed, be may period prohibition additional an addition, In shares. the of price trading the affect may which business, Company’s the of respect in information (undisclosed) unpublished of exploitation of apossibility is there that considers it if trading any restrict or prohibit to right the reserves Properties Aldar purchase). or (sale transaction the of type and value the of regardless trading, insider for Exchange Securities Dhabi Abu to applications their submitting before Department Market the inform shall subsidiaries the and Company the of employees and Management Executive Directors, of Board the of Members The Exchange. Securities Dhabi Abu and Authority Commodities and Securities the by imposed periods prohibition trading the during prohibited is shares Company’s the in by insiders trading policy, this Under plans. and projects operational and strategic Company’s the with 2019) line in November in was update latest (the website Exchange Securities Dhabi Abu the through it update to and insiders its of list the of review aperiodic conduct to committed fully is Company the that mentioning worth is It data. and information material to have access who employees all and Management Executive Directors, of Board the to applies policy This price. trading the on effect an has it if and Company the of business the to related information unpublished or undisclosed exploiting of possibility areasonable is there if trading prohibits policy This Properties. by Aldar issued securities the on limits sets and insiders, the of trades the to regulating controls the of abreakdown includes It market. financial the in price share Company’s the affect may that information have material they when obligations legal their fulfil to employees the and Directors of Board the enables policy This Exchange. Securities Dhabi Abu the of (5/2009) No. Bylaw and companies stock joint public of governance and discipline institutional of 2016 standards of on (7) No. Authority Commodities and Securities the of Chairman the of decision the with accordance in shares Company’s the in insiders of apolicy developed has Directors of Board The 7.1 7. 31For year the 2019 ended December Corporate Governance (continued) Report • • •

Head of Internal Control Department. Counsel.General Chief Officer. Financial

INSIDER AFFAIRS AND TRADING FOLLOW-UP COMMITTEE FOLLOW-UP TRADING AND AFFAIRS INSIDER AND SECURITIES AND SHARE COMPANY’S THE IN TRADING AND AFFAIRS INSIDER OF COMMITTEE FOLLOW-UP TRADING POLICY OF INSIDERS INSIDER AFFAIRS COMMITTEE, AND THE POLICY OF TRADES OF INSIDERS AND MEMBERS OF BOARD OF OF BOARD OF MEMBERS AND INSIDERS OF TRADES OF POLICY THE AND COMMITTEE, AFFAIRS INSIDER ITS DUTIES DIRECTORS IN THE COMPANY’S SHARES

standards of institutional discipline and governance of public joint stock companies. stock joint public of governance and discipline institutional of standards 2016 the of on (7) No. Authority Commodities and Securities of Chairman the of decision the under was step This measures. and policies internal other as well as decisions, and regulations laws, issued the with employees its and Company by the compliance ensuring for responsible is He Directors. of Board by the issued adecision of by virtue appointed been has Officer Compliance The 8.3 (CFE). Examiner Fraud Certified and (CIA) Auditor Internal Certified of certificates obtained and USA, the in Delaware of State by the (CPA) licensed Accountant Public aCertified is he addition, In Canada. Montreal, University, McGill from commerce in degree abachelor’s holds Najim Mr. that Haider noted be should It auditing. external and internal in experience of years 21 over has Najim Mr. Haider processes. governance and control internal Company’s the of efficiency and effectiveness adequacy, the ensure to Management Executive the advises he addition, In regularly. and independently reviews and audits internal conducts Najim Mr. 2013. Haider 6August on (05/2013) held No. meeting its at Directors of Board by the issued adecision to pursuant Najim by Mr. Haider headed is Department Control Internal The 8.2 responsibilities. and authorities its exercising in Directors of Board the on positively reflects thus and Department, this of effectiveness the increase to contributes which Authority, Commodities and Securities by the prescribed legislation and regulations the to according Board the to presented be shall authorisation such of results The regard. this in Directors of by Board the issued authorisation official an under Department Control Internal the for responsible functionally be to Committee Audit the delegated and authorised Directors of Board the addition, In Systems. Control Internal the and management risk the to regard with responsibility, its under fall that responsibilities governance of performance the to contribute to Department Control Internal the and Committee Audit the formed Board the addition, In efficiency. and effectiveness adequacy, its reviewing and System Control Internal Company’s the of supervision for responsible is Directors of Board the report, (3) this of clause in explained As 8.1 8. report. (2) this of clause to refer Please 7.3 ensuring continuous compliance with the applicable laws and regulations. Exchange, Securities Dhabi Abu the of e-services the through list insiders Company’s the of update continuous the ensure to Exchange Securities Dhabi Abu with coordinates and works continuously Committee the Furthermore, securities. Company’s the in by trading interest personal for information material or internal any exploit indirectly or directly to not need the and authorities relevant by the imposed periods prohibition trading the of them informing and subject, are they which to charters and policies organisational and internal the and them govern that procedures and controls the with them by educating them, among awareness raising and affairs insiders’ the managing in role effective and important an plays Committee The regulations. and laws applicable the with complies it that ensure to policy trading insider the reviewed Committee the addition, In responsibilities. and competencies its regulating and work its governing Charter the drafted and developed Committee 2019, the year the During • • • • • • • • competencies: and duties following the has Committee Trading Follow-Up and Affairs Insider The 7.2.2 • • • • • • • •

Any other competencies or tasks delegated to the Committee from time to time by the Management of the Company. the of Management by the time to time from Committee the to delegated tasks or competencies other Any time. on approval for Board the to thereto amendments any on recommendations raising and policy, trading insider the of review Periodic avoid any violations. and therewith compliance ensure to Exchange, Securities Dhabi Abu and Authority Commodities and Securities the by both prescribed rules and regulations the to according periods, prohibition trading the of them reminding and informing including securities, and shares Company’s the in trading their of awareness raising and insiders, the with communication Continuous occurs. it as soon as list such to updates any making and website, Exchange Securities Dhabi Abu the on insiders of list the of update continuous Ensuring Exchange. Securities Dhabi Abu and Authority Commodities and Securities the to statements and reports periodic of Submission Company. the of business the of requirements the to according lists and records such to required updates any on Management Executive the with consultation and update, continuous for insiders the of lists and records the of review Quarterly record. their maintaining and ownerships, and transactions insiders’ the of supervision and follow-up Management, insiders. the of disclosures subsequent and prior the includes also record The be considered insiders temporary as and those who have access may who to the Company’s internal persons information including prior to publication. details, and names insiders’ the includes that register integrated and aspecial of Development

COMPLIANCE OFFICER HEAD OF INTERNAL CONTROL DEPARTMENT BOARD OF DIRECTORS’ RESPONSIBILITY FOR THE INTERNAL CONTROL SYSTEM CONTROL INTERNAL THE FOR RESPONSIBILITY DIRECTORS’ OF BOARD INTERNAL CONTROL SYSTEM TRANSACTIONS AND TRADING OF THE MEMBERS OF THE BOARD OF DIRECTORS AND THEIR DIRECT RELATIVES RELATIVES DIRECT THEIR AND DIRECTORS OF BOARD THE OF MEMBERS THE OF TRADING AND TRANSACTIONS COMMITTEE THE OF COMPETENCIES AND DUTIES IN THE COMPANY’S SHARES DURING 2019 DURING SHARES COMPANY’S THE IN

Aldar Annual Report 2019 103 104 Governance • • • • follows: as is regard this in Department Control Internal the of role the disclosure, of means other any or statements financial annual the in disclosed issues or matters urgent issues, material certain faces Company the When Officer. Executive Chief the to accountable is he Administratively, Committee. Audit the to accountable is he Functionally, Directors. of Board the of Members the with directly communicates Department Control Internal of Head the duties, its of performance and activities its of implementation Department’s Control Internal the in independence of degree To ahigh achieved. ensure effectively are objectives Company’s the that guarantees providing as well as the Executive Management Team, and making it easier to Officer identify performance improvement Executive initiatives Chief the and business with development, interact distinctively to it allows and objectively, and independently operate to it enables which supervision, its under works above, mentioned as and, Committee Audit the to reports Department Control Internal The up with aspirations. its keeping and Company the of objectives the achieving to contributes and operates, Department Control Internal the which through mandate the is charter This companies. stock joint public of governance and discipline institutional of 2016 standards of on (7) No. Authority Commodities and Securities of Chairman the of decision the with accordance in Directors, of Board the and Committee Audit by the approved Charter by the governed are Department Control Internal the of responsibilities the that noted be also should It responsibilities. and functions duties, their of performance proper the to contribute to order in Committee, Executive the and Committee Audit the Directors, of Board the of role the enhancing to contributes and Directors of Board the of requirements the meets that control internal for environment ideal an providing as well as advice, reliable and independent objective, providing at aim which Company, the in control internal of principles and standards established has Directors of Board The 8.4 University. Emirates Arab United the at Law and Sharia of Faculty the from degree abachelor’s holds He years. 11 than more for discipline institutional and compliance legal, of field the in experience working has Abedalrahman Hatim Mr. 2013. Mohammad 6August on (05/2013) held No. meeting its at Directors of Board by the issued adecision of by virtue Officer Compliance as appointed was Abedalrahman Hatim Mr. Mohammad 8.3 9. thereof. respect in issued have been recommendations necessary the and Company, the across units business 26 auditable 2019, encompassing year the during Directors of Board the and Committee Audit the to 17 reports presented and prepared Department Control Internal the that regard this in noting worth is It thereof. respect in decisions appropriate the take to Directors of Board the to regard this in a recommendation submit and it discuss it, present to necessary) when (and regularly Committee Audit the to reports Department Control Internal reports. The its of efficiency and quality the affect may that influences or interference any without impartiality and integrity with duties its exercises department this where regulations, and laws applicable and standards audit internal the with reports accordance in its prepares and audit its conducts Department Control Internal The efficiency. and expertise with staff professional agreement, compliance, effectiveness, discipline, in efficiency performance and by productivity, and encourages qualified attracting characterised environment work ideal an creating to contributes which manner, constructive and effective an in Audit Committee, the of supervision direct the under it, to entrusted tasks and activities its out carries Department Control Internal The 8.5 Audit Committee and the Charter of the Risk Management Committee, approved and adopted at the above-mentioned meeting. above-mentioned the at adopted and approved Committee, Management Risk the of Charter the and Committee Audit the of Charter the in stated expressly as Committee, Audit the of subordinate functional be shall Committee Management Risk the which under 2013, 1July on held (04/2013) No. meeting its at Directors of Board by the issued adecision with accordance in management, risk to related duties and obligations its fulfilling in Directors of Board the of role the enhances the Committee udit addition, In efforts. and activities management risk of effectiveness and efficiency the regarding Directors of Board the to advice provides Committee The thereof. performance effective the of continuity the ensures and Company, the in management risk of framework the Committee, Audit the and Management Executive the with coordination direct in applies, Committee management policy, determining their risk tolerance, review risk the of of the effectiveness of approval risk for management. The Risk Management responsible is Directors of Board The regulations. and laws applicable the of violations of prevention the and Company, the of assets the stakeholders, the of rights the investments, shareholders’ protect to system management arisk providing to committed is Company The practice. management agood is management risk effective that considers Aldar 8. 31For year the 2019 ended December Corporate Governance (continued) Report • • • •

and issues such of development the on Committee Audit the and Directors of Board the to reports periodic of Submission matters. and issues such address to taken actions and steps of follow-up systematic Ensuring matters. and issues such of resolution and identification the to contribute to necessary) (as services advisory and advice Providing phases. planning audit the into matters and issues such of Inclusion

matters. COMPLIANCE OFFICER COMPLIANCE OFFICER INTERNAL CONTROL SYSTEM REPORTS ISSUED BY THE INTERNAL CONTROL DEPARTMENT OF THE COMPANY’S BOARD OF DIRECTORS. OF BOARD COMPANY’S THE OF DEPARTMENT CONTROL INTERNAL BY THE ISSUED REPORTS AND ACCOUNTS ANNUAL THE IN DISCLOSED PROBLEMS OR ISSUES MATERIAL WITH DEALINGS COMPANY’S RISK MANAGEMENT RISK REPORTS (CONTINUED) (CONTINUED)

• • • follows: as are functions whose committee, administrative an as serve to 2013 in established was Committee Management A Risk system. management risk the of components important most the of one is Properties Aldar of Policy Management Risk The Company. the of business and objectives strategic the with consistent are efforts management that ensures and risks, communicating and controlling assessing, of methods of consistency ensures system management risk The field. this in standards highest the to conform to them adapted and record, arisk developed standards, management risk special established has Committee Management Risk The their approval of these procedures and adhering to the timetable set by them in a manner that controls the this process. this the controls that amanner in by them set timetable the to adhering and procedures these of approval their obtaining election, the regarding Authority Commodities and Securities the with made been has coordination relevant addition, In website. Company’s the and website Exchange Securities Dhabi Abu the through CVs their and candidates the on published also was information and Board, the of membership for candidates their choosing in them helps that information important and basic obtain to shareholders allow that requirements and procedures necessary All PJSC. Properties Aldar of management the undertake shall 2019 who March 20 on held meeting Assembly General the during out carried 2019 was in Directors nominated the of election the shareholders, the with communicate effectively to keenness Company’s the of embodiment as and addition, In with shareholders. In addition, the auditor external discuss to shall attend the meeting Assembly General to meeting answer the any questions after present be to encouraged are members The time. available the during possible as subjects and many as issues discuss shall meeting the of chairman the and questions, ask to opportunity the given are attendees the meetings, the During meetings. the in participate to in an envelope sent by the Company to it the shareholders by fill to registered how on mail, in order to encourage many as instructions shareholders and possible as attorney of power of by aform accompanied is notice The meeting. this of agenda the on subjects the to addition in meeting, the of place and time the specifying meetings, the of notices receive shareholders The Directors. Executive and Directors of Board the with face-to-face meet to shareholders for opportunity primary the is Assembly General The Exchange. Securities Dhabi Abu and Authority Commodities and Securities the as such bodies by regulatory issued question official an to related are they unless rumours, or expectations market about comments any make not does Properties Aldar time. same the at or previously market the to disclosed was it unless disclosed be shall information no cases, such In information. necessary with them provide to investors and analysts with meetings holds Company the time, to time From • • • • or any other statements thereto: attributable disclosed, only the following position-holders are authorised to disclose information any the in public statements on behalf of the credibility Company, and transparency disclosure, of degree highest the apply to keen is Company the as addition, In Exchange. Securities Dhabi Abu and Authority Commodities and Securities the of requirements the to according disclosure and compliance continuous ensure to to, adhere to keen is and implement to directed Board the that actions the shows Company the of management by the adopted policy The manner. atimely in information accurate with market the in investors and shareholders all providing at aimed procedures and requirements related and standards governance corporate on based policy, disclosure amarket applies Company The 10. • • • also: Committee Management Risk 2019. The during meetings two held Committee The Management. Executive the of Members includes and Officer, Executive Chief by the presided is Committee This • • • • • • • • • • – – – – – – Development of the Company’s risk management framework, which includes: Considering the practices of mitigation of current risks. business. Company’s the face may that risks of assessment and Identification Company Secretary. Executive Management Team. Chief Executive Officer. Directors. of Board the of Members and Chairman record. risk Company’s the updated and Developed Strengthened the risk management framework and policies. Committee. Management Risk the of Charter the discussed and Reviewed

– – – – – – COMMUNICATION WITH SHAREHOLDERS Supervision, follow-up and reporting. Risk mitigation and management. Prioritisation of risks. Determining risk tolerance. record. Risk assessment. and Risk identification raised.

Aldar Annual Report 2019 105 106 Governance 13. mechanism. this to relating matters any investigate independently to measures appropriate takes Company the addition, In discrimination. to subjected being of fear without and wish), they (as data personal their disclosing without manner, confidential and aresponsible in concerns their express to employees allows mechanism disclosure This above. (6.1) (H) clause of paragraph in stated as policy, whistleblower the reviewed has 2013, 6November on held (04/2013) No. meeting its at Committee, Audit The investigations. the of confidentiality the ensure to as well as discrimination, or harassment persecution, to subjected being without conduct inappropriate any about concerns and fears their disclose to able are employees ensure to employees, for policy adisclosure developed has Company the Conduct, Business of Code the with accordance In 12. Conduct. Business of Code this approved and reviewed has 2013, 6 November on held (06/2013) No. meeting its at Directors, of Board the that noted be should It Directors. of Board by the approved and Company by the applied Conduct Business of Code Company’s the in summarised is conduct required The method. working their of part integrated an and employees, the and Directors of Board the for commitment and aduty is conduct ethical and Professional business. its conducting in regulations and laws applicable all consideration into taking conduct, legal and professional of standards highest the to adheres It ability. professional and dealings its in integrity projects, implementing in reputation its on depends Company the of success The 11. 31For year the 2019 ended December Corporate Governance (continued) Report 14. the and Chairman the before interest of aconflict to lead may that issue any raise to Directors the urges Company The developed. have been management interest of conflict to regard with laws with compliance for procedures of Aseries bodies. legislative and regulatory other and Authority Commodities and Securities by the issued regulations and laws decisions, the with accordance in Directors, of Board the of Charter the and Conduct Business of Code Association, of Articles Company’s the in contained guidelines general the to addition in necessary, whenever matters such on voting or of discussion in participating from refrain to and acts their in involved be may that interests of conflict any report to Executives Senior and Directors the requires Company The • following: the include activities These environment. its preserving and communities local of contribute to building the to efforts its of context the in events and activities of anumber in participated has Properties Aldar efforts. Properties’ Aldar strengthen effectively and focus to initiatives corporate and community into categorised been has responsibility Social • • • • • • aspects: following the on by focusing implemented is policy responsibility social Company’s The environment. working ideal an creating and efficiency operational improving risks, by reducing works, Company’s the to value adding and work the of effectiveness the improving decisions, better to lead turn in which of operations, its impact indirect and direct both understand to helping processes, operational and decision-making its into considerations social and environmental the integrates Properties Aldar purpose, this For operates. it which through environment the in legislation and regulations by the imposed responsibilities corporate and environmental social, all fulfilling at aims also Company The activities of the Company. the all in aspects economic and ethical environmental, social, the account into taking communities, other UAE of and local the community supporting and business of sustainability the by maintaining operates, it which in communities the and partners business Through its social responsibility, the Company aims to create a sustainable value for shareholders, employees, suppliers, customers, 15. 2019. 31 December ended year the during regulations the to respect with violations material any commit not did Company The • • • • • • • embodies the importance which Aldar gives to its social responsibility, and its pioneering role in encouraging national projects. national encouraging in role pioneering its and responsibility, social its to gives Aldar which importance the embodies also It Emirates. Arab United the of citizens all for future apromising and life adecent development, sustainable achieve to aims initiative 2019. This year the during Fund Al-Watan to support as million 36 AED provided has Properties Aldar Fund: Al-Watan operates. Company the which through communities local the in investing and –by supporting Community value. added and expertise with them –by providing Customers responsibility. social Company’s the enhance to providers service and suppliers experienced of agroup with –by working Suppliers environment. the on operations Company’s the of impact the of management –by the Environment environment. working ideal an –by creating Employees accountability. and Conduct Business of Code the –through Governance

Directors. EMPLOYEES DISCLOSURE MECHANISM CONDUCT BUSINESS OF CODE CONFLICT OF INTERESTS OF CONFLICT COMPANY’S SOCIAL RESPONSIBILITY VIOLATIONS COMMITTED BY THE COMPANY DURING 2019

• • • • • • • • • • • • • • • • • • • • • • • • • • • • the Company’s vision and enhancing its values, goals and culture, in a way that contributes to achieving business excellence. business achieving to contributes that away in culture, and goals values, its enhancing and vision Company’s the achieving supports This creativity. and talents all for allowing and equality, achieving and differences removing on based a culture building in represented vision and mission aclear has which Integration, and Equality for aCommittee launched has Company Properties,the Aldar within sexes and races cultures, talents, in disparity and difference the to due that, to addition In strategy. relevant the develop to agree collectively and it, to related activities main the and initiative, this of areas the define who Company, the of departments various the for working women of elite by adistinguished managed is initiative This environment. work the in balance gender achieving to contributes that equality of principle the promote to and Company, the for working employees female support to launched was initiative this and market, labour the in them integrate and women of position the enhance to aiming Women Initiative Network: departments. various its and level Company’s the enables that platform the from youth announcing concerned, parties the with cooperation through change substantive supporting and them, to available capabilities job the of awareness providing by home the of youth the empowering at aimed initiative an as launched was Youth Council Dar Al country. the for future abetter building in capabilities and skills their from benefit and segment, youth the develop to aims that initiative an create to endeavoured has Emirates Arab United the of leadership the country, asustainable Aldar building of Youth part Council: As society. and environment the preserve to order in consultants and experts external of use the and activities, Company’s the of all in standards and practices international highest the applying and assessments, environmental comprehensive conducting through constituents, its and society protecting and environment the serving to effectively more contributes that amanner in limits its exceed to sense broadest its in requirements these applies Company the and Authority, Environmental the of standards and requirements the meets always Al-Dar Dhabi. Abu of Emirate the throughout works infrastructure sector institutions aimed at promoting sound environmental management practices in all development projects and Protecting our society: sustainability. of field the in qualified are who personnel, experienced and qualified its of anumber PJSC selected Properties 2019, Aldar year Supporting and the promoting sustainability: During initiatives. Fund Watan Al and events East Middle Olympics Special including activities, key of social anumber to relation in responsibility the of part essential Team an were Management Executive the and Directors of Board Company’s the impacts, environmental positive creating besides Either, alike. visitors and residents of lives the enrich to aim which complexes, and destinations units, operational Company’s the through activities responsibility social Company’s the within activities 100 than more Investment in infrastructure: concerns. daily of belief the in management, Company’s the of life the of part essential an as employees Company’s the of hearts the in responsibility social of initiatives and values the of importance the establish and consolidate to them of by some approved was policy The society. in adifference making in participate to opportunity an employees Company the give and “giving” of culture the enhance to developed have been initiatives volunteer Therefore, work. community volunteer in employees its involve to looking is Properties Aldar division, Responsibility Social Corporate the establishing of framework the Within policy: Volunteering headquarters. Company’s the in located club health the in Company the for working employees female for programmes sports allocating to addition in energy, positive and work between abalance achieve to and fitness, and health public of interest the in employees, for programmes sports weekly organised Company Properties Aldar products. local sustainable displaying and bags fabric reusable by distributing consumption, plastic reduce to public the encourage to campaign awareness environm The Environment Agency of Abu Dhabi has developed a series of standards for all public and private private and public all for standards of aseries developed has Dhabi Abu of Agency Environment The Aldar Properties Company launched the “Women Initiative Network”, a distinct internal initiative initiative internal a distinct Network”, Initiative “Women the launched Company Properties Aldar During the two years of 2018 and 2019, Aldar Properties created a positive impact by carrying out out by carrying impact apositive created Properties 2019, Aldar 2018 of and years two the During of love for good and giving and and giving and good for love of

Aldar Annual Report 2019 107 108 Governance December 2019 June 2019 June November 2019 2019October September 2019 August 2019 July 2019 May 2019 May April 2019 March 2019 March February 2019February an overview of the Company’s share price at the end of each month of the year ended 31 December 2019: 31 December ended year the of month each of end the at price share Company’s the of overview an provides table following 2019. The 31 December ended year the during activity strong witnessed shares Company’s the Trading in 16.1 Date January 2019 16. 31For year the 2019 ended December Corporate Governance (continued) Report Source: Abu Dhabi Securities Exchange

THE COMPANY’S SHARE PERFORMANCE DURING 2019 DURING PERFORMANCE SHARE COMPANY’S THE INFORMATIONGENERAL Opening (AED) 2.09 2.30 2.24 2.35 2.35 1.89 1.58 1.82 1.56 2.18 1.78 1.78 1.79 Highest Highest (AED) 2.26 1.90 2.35 price 1.86 1.64 2.37 2.37 1.82 1.93 2.21 1.97 2.17 Lowest Lowest (AED) 2.08 2.07 price 1.50 1.86 1.98 1.43 1.63 1.70 2.15 2.15 1.76 1.76 Closing Closing (AED) 2.09 2.09 2.24 2.35 2.35 1.89 1.82 1.59 2.16 2.31 1.78 1.78 1.78 233,939,006 200,337,986 157,003,280 323,229,184 262,934,139 139,182,706 124,613,233 128,573,919 223,531,491 159,795,166 267,149,372 135,752,143 Quantity Quantity (share) 489,940,620.98 564,569,468.28 342,299,985.64 606,995,557.65 448,092,628.11 448,092,628.11 217,829,089.24 279,479,507.22 252,916,585.22 346,747,825.75 221,148,915.36 519,545,241.19 361,651,107.49 361,651,107.49 Value (AED) Value transactions 5,002 6,388 5,209 3,620 4,956 3,424 3,682 6,750 3,798 3,875 6,710 No. of 3,741 0.000 0.000 0.040 0.420 0.070 0.070 0.010 0.010 0.190 0.150 0.26 AED 0.18 Change 12.44 22.22 0.00 0.00 11.95 0.46 0.63 3.03 3.85 6.70 2.25 7.66 % real estate sector index during the year ended on 31 December 2019: 31 December on ended year the during index sector estate real the and index market general the with price share Company’s the of performance comparative the shows diagram following The as follows: (Local – Gulf – Arabic – Foreign) as of 31 December 2019: 31 of December as –Foreign) –Arabic –Gulf (Local follows: as The following shows table the distribution of shareholders’ ownership (Individuals – Companies – Governments), categorised Source: Abu Dhabi Securities Exchange Gulf Local Investor/Shareholder 16.3 Source: Bloomberg 16.2 Arabic Foreign Total -20 -10 40 60 30 50 20 10 0 Jan 19 Jan

COMPARATIVE PERFORMANCE OF ALDAR PROPERTIES’ SHARE PRICE WITH THE GENERAL MARKET INDEX AND AND INDEX MARKET GENERAL THE WITH PRICE SHARE PROPERTIES’ ALDAR OF PERFORMANCE COMPARATIVE – COMPANIES – GOVERNMENTS), CATEGORISED AS FOLLOWS: (LOCAL – GULF – ARABIC – FOREIGN) – ARABIC – GULF (LOCAL FOLLOWS: AS CATEGORISED – GOVERNMENTS), – COMPANIES 2019 (INDIVIDUALS DECEMBER 31 OF AS OWNERSHIP SHAREHOLDERS’ OF DISTRIBUTION OF STATEMENT SECTOR INDEX DURING 2019 DURING INDEX SECTOR Feb 19 Feb Mar 19 Mar Government Government Companies Individuals Government Customer type Individuals Companies Companies Individuals Government Individuals Companies Apr 19 Apr Aldar Properties May 19 May No. of shareholders Jun 19 Jun ADSMI Index ADSMI 45,888 42,779 Jul 19 Jul 604 454 999 794 160 62 14 19 0 2 1 No. of shares (share) shares of No. Aug 19 Aug 1,664,583,540 7,862,629,603 3,133,067,629 1,332,789,233 1,362,324,124 102,654,590 48,297,095 116,477,475 13,466,763 16,416,689 63,771,982 8,780,483 ADRE Index ADRE Sep 19 Sep 0 percentage in the capital as per the the per as capital Oct 19 Oct Ownership category 39.85% 16.95% 0.00% 17.33% 21.17% 1.48% 0.81% 0.21% 0.61% 0.17% 100% 0.11% 1.31% Nov 19 Nov 5,828,180,986 7,862,629,603 Shares (100%) Shares 1,815,535,225 146,360,927 72,552,465 Total shares Dec 19 Dec

Aldar Annual Report 2019 109 110 Governance Total More than 5,000,000 2019: 31 December of as capital Company’s the of 5% exceeds percentage ownership whose shareholders the shows table following The portfolio of assets, as well as the Company’s future expansion and growth prospects. growth and expansion future Company’s the as well as assets, of portfolio and projects performance, Company’s the in confidence the enhances that amanner in position, financial and projects Company’s the of knowledge and awareness enhance to levels, international and local at investors, potential and shareholders current with meetings of aseries conducted Department this of officials 2019, the In communication. of channels various through English, and Arabic both in smoothly, and easily Company the of information financial and technical the with them provide and customers with interact to ability and skills have the they addition, In authorities. relevant the of requirements legislative and legal relevant the with familiar and opportunities, and activities Company’s the of knowledge full relations, public and accounting business, of fields the in experience and qualifications required have the who management relationships investor in specialised officials appointed Company the Department, Relations Investor the of objectives and role the of realisation effective and efficient ensure to addition, In http://www.aldar.com/en/article/investor-relations/investor-relations-overview.html relations management. The investor of shareholders, investors, controls stakeholders and the and public can visit this website requirements through the following link: applicable Authority’s Commodities and Securities the with accordance in effectiveness and efficiency promote to website Relations’ Investor its updated and developed has Company the viewpoint, this From Management Senior the at structure efficient through markets with interaction and transparency disclosure, of level ahigh by ensuring reports submitted of quality the improves further It Company. the with communicate to ways best the of enforcement and awareness of the stakeholders and their understanding of the data on the performance of the Company through the application shareholders. It also and strengthens the Company’s investors investment relations and market analysts, of linkages, and enhances inquiries the knowledge and external the to response in quality and consistency the raising to contributes that amanner in Department, Relations Investor the of requirements secondary and primary the of fulfilment the through role its strengthened and Department Relations Investor the developed and stimulated 2017 –2019, has during Company, the regard, this in regulations and rules applicable the of application optimal the on keenness Properties’ Aldar of basis the on and companies, listed with relationships investor of controls the on Authority by the issued circular the and companies, stock joint public of governance and discipline institutional of (7/RM) No. standards on Authority Commodities and Securities the of Chairman the of decision the to According 16.4 16.6 Source: Abu Dhabi Securities Exchange From 500,000 to less than 5,000,000 50,000 than Less Shares ownership (Share) 16.5 Source: Abu Dhabi Securities Exchange LLC Investment Commercial Sariya Al Al Mamoura Diversified Global Holding Shareholder 16. 31For year the 2019 ended December Corporate Governance (continued) Report The following table shows the distribution of shareholders according to their ownership percentage as of 31 December 2019: 31 of December as percentage ownership their to according shareholders of distribution the shows table following The From 50,000 to less than 500,000 than less to 50,000 From

OVERVIEW OF SHAREHOLDERS WHOSE OWNERSHIP PERCENTAGE EXCEEDS 5% OF THE COMPANY’S CAPITAL CAPITAL COMPANY’S THE 5% OF EXCEEDS PERCENTAGE OWNERSHIP WHOSE SHAREHOLDERS OF OVERVIEW INFORMATION GENERAL CONTROLS OF INVESTORS RELATIONSHIPS WITH THE LISTED COMPANIES LISTED THE WITH RELATIONSHIPS INVESTORS OF CONTROLS 31 OF AS PERCENTAGE OWNERSHIP THEIR TO ACCORDING SHAREHOLDERS OF DISTRIBUTION OF STATEMENT AS OF 31 DECEMBER 2019 DECEMBER 31 OF AS

DECEMBER 2019 level. (CONTINUED) No. of shareholders 43,000 45,888 1,988 720 180 No. of owned shares owned of No. 2,339,464,326 7,862,629,603 1,093,142,703 6,301,677,185 595,944,021 120,132,986 347,676,729 No. of shares of No. Ownership percentage Owned percentage of the capital 80.14% 13.90%

4.42% 29.8% 100% 1.52% 7.6%

• • • follows: as are clauses These meeting. this at present shareholders by the approved unanimously have been which shareholders, by the decision a special requiring clauses three 2019 included March 21 on held meeting Assembly General Properties’ Aldar of agenda The company. stock joint the of meeting Assembly General the in represented shares the of three-quarters least at own who shareholders of vote by amajority issued decision the is: decision special the regulations, and laws applicable the with accordance In five million shares. shares. million five exceed not shall number specific such that provided shares of Remunerations Committee shall determine that specific number and Nomination the cases both in shares, of number specific or be nominated by one or more shareholders holding a Company the in shares of number aspecific only) purposes nomination (for hold to acandidate require may Committee Conditions specified by the Nomination and Remunerations nationals. Emirates Arab United be must Chairman, the including Directors, the of majority the cases, all in and Committee the conditions specified by the Nomination and Remunerations satisfy must membership Board for candidates The procedure. voting cumulative the using ballot asecret in Assembly General by the elected be shall who (9) Directors nine of composed Directors of by aBoard managed be shall Company The 16.7 Address Email Box P.O. Fax Telephone Contact Information officials Investor Relations Department officials: Department Relations Investor the of information contact and details the shows table following The • • • Association as follows, subject to obtaining the approval of the Competent Authority: Authority: Competent the of approval the obtaining to subject follows, as Association of Memorandum Company’s the of Company) the of Directors of Board 4–The (Chapter Directors) of (17 –Election Article the amend to and Members, (7) seven to (9) Members nine from Directors Company’s the of number the reduce to Agreeing Fund). (National Watan Al Sandooq support to million 36 AED of contribution its 2019 for 1October on Company by the announced was what which of important most the regard, this in requirements legal the with accordance in and it, to granted standards and powers the within community, the serve to contributions voluntary and money of amounts allocated and approved Directors of Board the Company, the of meeting Assembly General the at represented shares the of by consensus issued approval the on Based regard. this in companies commercial on (02) No. 2015 of Law Federal of provisions the to subject and service community of purposes the for made are contributions voluntary such that provided 2018), and (2017 and years fiscal the during achieved Company the of profit net average the of 2% exceed not shall contributions voluntary such that provided allocated, be will amounts such whom to entities the determine to Directors of Board the authorising 2019, and during Company by the contributions community voluntary of provision of Approval

SPECIAL DECISIONS TAKEN IN THE GENERAL ASSEMBLY MEETINGS OF SHAREHOLDERS DURING 2019, DURING SHAREHOLDERS OF MEETINGS ASSEMBLY GENERAL THE IN TAKEN DECISIONS SPECIAL AND ACTIONS TAKEN IN RESPECT THEREOF RESPECT IN TAKEN ACTIONS AND Article text before amendment before text Article Election of Directors of Election Article (17) Article

Aldar Properties Headquarters (ALDAR HQ)– Al Raha Beach – Abu Dhabi –Abu Beach Raha Al HQ)– (ALDAR Headquarters Properties Aldar [email protected] [email protected] Dhabi –Abu 51133 28105550 00971 28105866 00971 or 28105555 00971 or 28105624 00971 • • • •

Mr. Mohamed AMaazmi Mr. Mohamed Mr. Christopher Wilson

such specific number shall not exceed five million shares. shares. million five exceed not shall number specific such that provided shares of number specific that determine thecases Nomination and Remunerations Committee shall both in shares, of number aspecific holding shareholders more or by one nominated be or Company the in shares of to hold (for nomination purposes only) a specific number acandidate require may Committee Remunerations and Nomination by the specified Conditions nationals. Emirates Arab United be must Chairman, the including Directors, the of majority the cases, all in and Committee Remunerations and Nomination by the specified conditions the satisfy must membership Board for candidates The procedure. voting cumulative the using ballot asecret in Assembly General by the elected be shall who Directors (7) nine of composed Directors of by aBoard managed be shall Company The Article text after amendment after text Article Election of Directors of Election Article (17) Article

Aldar Annual Report 2019 111 112 Governance • • • facilities management and home maintenance. on focus to strategy company” a“service reorganise to astep in Emirates, Arab United the throughout clients to management properties of field the in solutions innovative and pioneering providing of aim the with “Provis”, of establishment the announced PJSC Properties Aldar destinations, exceptional provide to vision Company’s the of framework the within 2019, and February 25 On • experienced during the year 2019 Properties are the following: Aldar that events significant most the Among activity. management asset in growth steady the Likewise, sector. vital this to investors attracts and Dhabi Abu of Emirate the in market estate real the of regulation the to 2017, of contributes beginning the from effect into came which mid-2015, in announced law estate real new The Dhabi. Abu of Emirate the for law estate real new the of application actual the with along period, that during market the on put were that projects housing high-quality of lack the to due was this and Properties, by Aldar launched projects all in units housing of sales for demand asignificant 2019 witnessed year The 16.9 ofUniversity Technology, Australia. Queensland from Arts in degree bachelor’s and Law in degree abachelor’s holds He 17 years. approximately for compliance institutional and affairs legal the in experience has Scrymgeour Alexander Mr. 2013. Brett 1July on held (04/2013) No. meeting its at Directors of Board by the issued decision the of by virtue Rapporteur as appointed was Scrymgeour Alexander Mr. Brett decisions. and regulations laws, applicable the to according Directors, of Board the of Members as duties their in role effective an perform they that ensures that amanner in thereto, related requirements and information various of provision and Board the of Members the with communication continuous the to contributes he addition, In decisions. such of implementation optimal the ensure to Committees, its and Board by the issued decisions to relation in Company the of Departments different the between communication of coordination in role Rapporteur’s the as well as thereof, adoption and signature the for arranging minutes, their preparing meetings, the during and before Members the of coordination and organisation agenda, the organising meetings, scheduling from Committees, its and Board the of meetings the to relating issues and matters of coordination ongoing the and Committees its and Directors of Board the of work the organising in meetings Directors’ of Board the of Rapporteur by the played role the in believe Management Executive and Directors of Board its Properties, Aldar 16.8 decision is completed. this of execution and implementation actual the until Exchange Stock Dhabi Abu and Authority Commodities and Securities the of departments relevant the with made been has contact Also, Gazette. Official the in it publish and Association, of Articles the Company’s amend decision, this activate to necessary requirements legal and procedures the meet to measures necessary the commenced has Company the meeting, Assembly General Company’s the in represented shares unanimous by the issued approval the on Based 16.7 16. 31For year the 2019 ended December Corporate Governance (continued) Report • • • • assets from Etihad Airways last February 2019. February last Airways Etihad from assets estate real of acquisition the announced Company the after 2018, September in launch its LLC since Properties Investment Aldar for deal second the is this and million, 289 AED of avalue with Tower Dhabi Abu in Residential Murjan Al of deal sale the of completion the PJSC) announced Properties Aldar to PJSC (affiliated Company Investment Properties 2019, Aldar March 19 On Million 289 AED worth adeal Tower through Murjan Al sells Properties Investment Aldar dirhams. billion one than more becomes Ain Al in assets retail from properties Aldar of value total the and stores, 200 than more be shall Mall Jimi Al in shops of number total The Ain. Al in entertainment and shopping for destination first and preferred the to restaurants and brands 100 about add will which area, Park Retail the and Mall Jimi Al of expansion huge the of opening official the PJSC announced Properties 2019, Aldar March 13 On Dirhams. abillion to value total its bringing Mall, Jimi Al the of expansion huge the opens official Aldar each. 50% of rate the at Airways Etihad PJSC and Properties by Aldar owned jointly was acquisition this to prior blocks three the of ownership The 100%. of apercentage at complex headquarters its own fully will Airways Etihad transaction, this of framework the Within billion. 1.2 AED of avalue with PJSC, Airways Etihad with deal acommercial in Center Airways Etihad and Plaza Etihad of acquisition the PJSC) announced Properties Aldar to PJSC (affiliated Company Investment Properties 2019, Aldar February 27 On Aldar Investment fully acquires “Etihad Plaza” and “Etihad Airways Center” through a deal worth billion AED 1.2 “Aldar” launches new property management solutions in the United Arab Emirates

MATERIAL EVENTS EXPERIENCED BY THE COMPANY DURING 2019 DURING COMPANY BY THE EXPERIENCED EVENTS MATERIAL THEREOF DATE APPOINTMENT THE OF AND SECRETARY COMPANY THE 2019, DURING SHAREHOLDERS OF MEETINGS ASSEMBLY GENERAL THE IN TAKEN DECISIONS SPECIAL INFORMATION GENERAL AND ACTIONS TAKEN IN RESPECT THEREOF THEREOF RESPECT IN TAKEN ACTIONS AND (CONTINUED) (CONTINUED)

• • • • • • • • • • • • • • • • • • refinancing existing debts. existing refinancing of purpose the for used be will proceeds the and conditions, market to subject is issue this of result The 10 years. for dollars, US in denominated bonds issue 2019 to 10 October on East Middle the and Asia Europe, in investors income fixed with meetings of aseries held Company” Investment “Aldar owned fully the that PJSC announced Properties 2019, Aldar 9 October On “Aldar” holds meetings with fixed income investors to promote the issuance of “Aldar Investment” Bonds of rational leadership. guidance the with compliance in country, the in projects entrepreneurial innovative support to commitment Company’s the with line in is This million. 120 AED to fund the to contributions total the bringing projects, national finance to initiative the Fund, Watan Al to million 36 AED of support additional provided has it that PJSC announced Properties 2019, Aldar 1 On October Fund Watan Al of favour in million 36 AED contributes Estate Real Aldar Dhabi. Abu in areas investment the in system freehold the under land purchase to buyers foreign allowing laws 2019, new April in issued, government the since Island Saadiyat on launched be to project plot project first the Reserve is Saadiyat The nationalities. all of buyers for available construction, for infrastructure necessary the with equipped land of plots 306 includes and million, 722 AED is project the of value The Island. Saadiyat of heart the in plots residential sell to aiming project first its considered is which project, Reserve” “Saadiyat the PJSC launched Properties 2019, Aldar 8 On September Aldar Real Estate launches “Saadiyat Reserve” project Dhabi. Abu of Emirate the in destinations business thriving and centres commercial important most the and complexes, residential modern prominent most the of anumber host which District, Falah Al and Yas Island Island, Saadiyat include: that Emirate the in destinations major includes dirhams billion five of cost atotal at government Dhabi Abu of behalf on by Aldar executed be to projects selected The Dhabi. Abu in agencies government of anumber for projects infrastructure and economic social, three execute to selected PJSC was Properties Aldar tourism, and living investment, business, for world the in places best the of one as position Emirate’s the promote to vision Government’s Dhabi Abu the of framework the within 2019, and 10 July On Abu Dhabi government assigns Aldar Properties to execute projects worth AED 5 billion market. estate real Dhabi Abu to investment foreign attract and presence international boost to strategy Company’s the with line in comes partnership This India. in buyers and investors to Dhabi Abu in projects estate real attractive most and prominent most the display to services, estate real and consulting of field the in company Indian leading the Group”, Services Property “Anarock with partnership astrategic of conclusion the PJSC announced Properties 2019, Aldar June 25 On Group “Anarock” the with partnership astrategic through market Indian the enters Properties” “Aldar reasons. personal to 2019 due June 30 effective Company CEO the of Deputy the as position his from Ketbi Al Mr. of Saeed Fahd resignation the PJSC announced Properties 2019, Aldar June 19 On CEO Deputy Company’s the of Resignation Government. Dhabi Abu by the issued astatement to according investors, to deeds title property issuing to addition Law, in Freehold Dhabi Abu under areas investment designated the in registered be will units estate real decision, this with accordance In GCC countries. the and Emirates Arab United of citizens the to only restricted previously was ownership of right the that noted be should It Dhabi. Abu of Emirate the in areas investment in properties and land own to investors foreign all enabling of respect in adecision issued government Dhabi 2019, Abu 17 April On Dhabi Abu of Emirate the of areas investment the in investors by foreign land of ownership the allowing legislations New million. 400 AED to amounted sales with exhibition, Dhabi Abu Cityscape the during Yas Island of coast northern the on located Project Lea the of plots all of sale the PJSC announced Properties 2019, Aldar 16 April On Exhibition Cityscape the during Project Lea the of plots all sells

Aldar Annual Report 2019 113 114 Governance • • • • • 16.9 16. 31For year the 2019 ended December Corporate Governance (continued) Report • • • • • and various media outlets during 2019. during outlets media various and Market Securities Dhabi Abu Authority, Commodities and Securities the to disclosed have been events material other addition, In future. foreseen the for plans development strategic by Aldar’s covered not are that Island Dhabi Abu inside land of agroup to addition in LuluIsland, and Beach Raha Al of region western the in area asimilar with land of parcels acquire will Government Dhabi Abu while region, Zayed of Port the and Island Saadiyat of area cultural the between equally distributed metres, square million ​​ of area afloor with infrastructure with equipped aland acquire will Company the agreement, the to According consideration. any without Dhabi, Abu of Emirate the in land of parcels exchange will parties two the 2019, when December in started agreement the of implementation The priorities. strategic parties’ the with line in redistributed be shall development for land of parcels which PJSC under Properties Aldar with exchange to agreement an concluded Government Dhabi 2019, Abu December 25 On Abu Dhabi Government concludes a strategic agreement to exchange land with Aldar Properties 2022. in phase first the over hand to expected is and phases, in developed being is project The spaces. commercial and residential of system integrated an through Dhabi Abu in living of culture the enhances project The Company. CEO the of Mr. Dhibi” Al and PJSC, “Talal Properties Aldar of Directors of Board the of Chairman Mubarak, Al Khalifa Mohamed by H.E. tour the during accompanied was Highness His project. the of models design and plan main the on briefed was he which during Walk, Saadiyat the in Center, located Experience” Grove ‘Saadiyat interactive the in atour made Nahyan Al Zayed Bin Mohammed Bin Khalid Sheikh Highness His Dhabi. Abu capital, the in living ​​ of area an on 8billion, AED of value atotal with Properties by Aldar developed being is which Dhabi, Abu in Island Saadiyat of area cultural the of heart the in project Grove” “Saadiyat the launched Office, Executive Dhabi Abu the of Chairman and Dhabi Abu of Emirate the of Council Executive the of Member Nahyan, Al Zayed Bin Mohammed Bin Khalid Sheikh Highness 2019, His November 25 On ​​ of area an on 8billion AED of acost with developed project “Aldar” area, cultural the of heart the in destination integrated latest the Grove”, “Saadiyat launches Zayed Bin Mohammed Bin Khalid country. the in diversification and growth economic of process ongoing the to contribution Company’s the supports also programme new The UAE. the inside from services and goods of sources local identifying to addition in sector, private the within resource Emirati skilled for opportunities job new provide to parties two the between efforts cooperation enhancing at aims Understanding of Memorandum the programme, certification the launching to addition In (“ADIPEC”). Conference and Exhibition Petroleum International “Abu of Dhabi sidelines the on signed was companies ADNOC and Aldar between Understanding of Memorandum The him. protect God may Dubai, of Ruler and Minister Prime UAE and the of President Vice Maktoum, Al Rashid bin Mohammed Sheikh 2010 Highness in by His launched was which 2021, Agenda UAE National by the set priorities six the of one is which infrastructure, integrated and environment sustainable of practices best the by adopting commitment Company’s the with line in is partnership This strategy. procurement sustainable Company’s the promoting of aim the with certificates, ICV issue to programme new its launch to ADNOC, Company, Oil National Dhabi Abu with agreement apartnership signed has it that PJSC announced Properties 2019, Aldar November 13 On certificates Aldar Properties cooperates with ADNOC to implement its new programme for issuing local value-added enhancement prestigious Saadiyat Beach area. the in located complex gated exclusive an as considered also is project “Jawaher” The beach. the along facilities leisure and restaurants stores, retail many to access with beachfront the overlooking luxurious offers and District, Cultural Saadiyat the in destination amixed-use is Walk Saadiyat The “Jawaher”. and Walk” “Saadiyat are which Island, Saadiyat in projects development pioneering its of two of commencement handover phased the PJSC anno

GENERAL INFORMATION INFORMATION GENERAL MATERIAL EVENTS EXPERIENCED BY THE COMPANY DURING 2019 DURING COMPANY BY THE EXPERIENCED EVENTS MATERIAL 242 thousand square metres, and it is characterised by an integrated culture identity that enhances the style of of style the enhances that identity culture integrated by an characterised is it and metres, square 242 thousand (CONTINUED) 242 thousand square metres square thousand 242 (CONTINUED)

three three

and 2019: and 2017, years the 2018 for ratios Emiratisation Company’s the shows table following 2019. The the during percentage Emiratisation the raising in succeeded Company the that mentioning worth is it regard, this In leadership. Company’s the of stewardship the under Dhabi Abu of Emirate by the witnessed process development the support to contributes and resources, and capabilities Company’s the enhances that away in business, and projects progress, Company’s the supporting in role effective and a play fundamental who personnel qualified and experienced national, attracting to contributes that apolicy adopted has Properties Aldar • • • governmental and non-governmental entities) follows: as and companies (individuals, Dhabi Abu in customers estate real with coordination continuous and initiatives many adopting in role substantial and important an played Properties Aldar 2017), in initiated was what with 2019 line (in During sector. vital this in invest and work to capital and expertise professional of attractiveness the encourage and enhance to and operates, Company the which through sector estate real the of efficiency the enhance to environment investment competitive and a transparent and requirements of communities, customers, needs shareholders, investors the and meet stakeholders in general. would The Company that is keen to initiatives provide innovative and projects adopting of importance the in believes firmly Properties Aldar 16.11 ratio Emiratisation Year 16.10 • • • services by visiting this application and/or the Company’s website. Company’s and/or the application this by visiting services booking early provides Company the addition, In leasing. or sale for whether etc.), townhouses, lands, villas, (units, products estate real regarding information adequate and comprehensive by providing estate, real in investing in interested stakeholders and customers investors, shareholders, with communication of process the facilitates application This market. the into places and launches Company the that products and options all includes that application electronic adirect launched Properties Aldar application. this through anywhere from and possible as quickly as service necessary the obtain and process application the facilitate to Company, the within units business and departments other and affairs commercial and management sales evaluation, performance and management resources human to related requests their submit to them for easier it making employees the to related services all includes that application electronic asmart launched Properties Aldar leadership. Company’s by the adopted foundations and principles the on based prosperity and progress of wheel the push to contributes and institutions, and companies private and public between coordination and integration of degree ahigh achieves sector, vital this of efficiency the enhancing to contributes that amanner in Dhabi, Abu of Emirate the of Law Estate Real new the of application optimal the to contribute that foundations and procedures policies, of Development

EMIRATISATION PERCENTAGE IN THE COMPANY FOR THE YEARS 2017, 2019 AND 2018 YEARS THE FOR COMPANY THE IN PERCENTAGE EMIRATISATION PROJECTS AND INNOVATIVE INITIATIVES PERFORMED BY THE COMPANY DURING 2019 DURING COMPANY BY THE PERFORMED INITIATIVES INNOVATIVE AND PROJECTS and Remuneration Committee Chairman of the Nomination Nomination the of Chairman Mr. Martin Lee Edelman Lee Mr. Martin Approved by the Board of Directors at its meeting No. (02/2020) held on (02/2020) held No. meeting its at Directors of Board by the Approved

Mr. Mansour Mohammed Al-Mulla Approval of the Board of Directors of Board the of Approval H.E. Mohamed Khalifa Al Mubarak Al Khalifa Mohamed H.E. Chairman of the Audit Audit the of Chairman Chairman of the Board the of Chairman 12 February 2020 February 12 Committee Signature: 27.30% Internal Control Department 2017 Mr. Haider Najm Mr. Haider Director of the the of Director 28.20% 2018 27.00%

2019

Aldar Annual Report 2019 115 116 Governance 31 December 2019. 31 December ended year the for duties their with connection in auditor external the and management liability from release Directors The Ameri Al Mohamed Salem Hamad Eng. Edelman Lee Mr. Martin Ghobash Ahmed Saeed Mariam Ms. Mr. Mansour Mohamed Al Mulla Falasi Al Sulayem Abdulla Mr. Saeed Ali H.E. Waleed Ahmed Al Mokarrab Al Muhairi Mubarak Al Khalifa Mohamed H.E. statements. financial consolidated these of 11 page on presented have been Group the of results financial The courses. golf and club beach restaurants, operations, station cooling marinas, schools, hotels, of associated services for real estate. In addition, the Group is also engaged in development, construction, management and operation The Group is engaged in various businesses primarily the development, investment, sales, construction, leasing, management and 2019. 31 December ended year the for “Group”) the as to referred (together subsidiaries its and “Company”) (the PJSC Properties Aldar of statements financial consolidated audited the with together report their present Directors The 31For year the 2019 ended December Report Directors’ of Board RELEASE DIRECTORS RESULTSFINANCIAL PRINCIPAL ACTIVITIES Director Director Director Director Director Chairman Vice Chairman

Aldar Annual Report 2019 117 118 Financial Statements performed toperformed address those matters. we procedures audit the of asummary have included and identified we matters key audit the have we described pages, following the On Committee. Audit the with discussed were that and audit by our identified were that matters all of reflection comprehensive a not are they but Committee Audit the to matters key audit the year. We have communicated current the of statements financial consolidated the of audit our in significance most of were judgement, professional our in that, matters those are matters Key audit appropriate to provide a basis for our opinion. and sufficient is have we obtained evidence audit the that We believe Code. IESBA the and requirements these with accordance in responsibilities ethical other our have we fulfilled and Emirates, Arab United the in statements financial consolidated Group’s the of audit our to relevant are that requirements ethical other the with together Code) (IESBA Accountants Professional for Ethics of Codes Accountants’ for Board Standards Ethics International the with accordance in Group the of independent We are of report. our section statements financial consolidated the of audit the for responsibilities Auditor’s the in described further are standards those under responsibilities Our (ISAs). Auditing on Standards International with accordance in audit our We have conducted (IFRS). Standards Reporting Financial International with accordance in ended then year the for flows cash its and performance financial consolidated its 2019, and 31 at December as Group the of position In our opinion, the accompanying consolidated financial statements present fairly, in all material the respects, consolidated financial information. explanatory other and policies accounting significant of asummary and ended, then year the for flows cash of statement statement, consolidated statement of comprehensive income, income consolidated statement consolidated of the changes 2019 in and and equity consolidated 31 at December as position financial of statement consolidated the comprise which “Group”), the (together, subsidiaries its and “Company”) (the P.J.S.C Properties Aldar of statements financial consolidated the We have audited To PJSC of Properties Aldar Shareholders the Independent Auditor’s Report KEY AUDIT MATTERS AUDIT KEY BASIS FOR OPINION OPINION STATEMENTS FINANCIAL CONSOLIDATED THE OF AUDIT THE ON REPORT

forming our opinion thereon, and we do not provide a separate opinion on these matters. these on opinion aseparate provide not do we and thereon, opinion our forming in and awhole, as statements financial consolidated the of audit our of context the in addressed were matters key audit The Refer to note 12 for disclosures relating to this matter. this to relating disclosures for 12 note to Refer management in determining the net realisable value. by made estimates significant the and balance the of materiality quantitative the of because matter a key audit as sale for held land the of valuation We considered realisable value write down. anet recognises and value realisable net to values carrying the adjusts Group the value, realisable net its than higher is sale for held land of amount carrying the that event the In sale. for held land of portfolio Group’s the of value fair the determine to valuers external qualified professionally appointed Group The portfolio. the in land the of characteristic specific the and conditions market by prevailing influenced are which rates, discount and meter) square (per rates sales recoveries, cost costs, prices, site planning (including planning consent), build management in their assessment include forecast selling by used Key inputs exercise. valuation external on based date reporting each at out carried is sale for held land Group’s the of value realisable net the of assessment An and their net realisable values. land of plots certain of cost the between difference consolidated income statement which represents the in million 525 AED of aloss recognised Group The million). 2019 (2018: 3,806 AED 31 at December as million 4,797 AED to amounted sale for held land Group’s The sale for held land of value realisable Net Key audit matter audit Key

in accordance with the requirements of IAS 2 IAS of requirements the with accordance in performed was land of plots the of value realisable net the whether assessed and valuer external by the valued properties selected review to specialist valuation estate real internal our We involved Group. by the valuer the to provided data tested We sample sufficient. was work their of scope the that determine to Group the with engagement of terms their read and capabilities and competence valuer’s the We assessed by management. been considered for an assessment for net realisable value not had which land of plots any was there if We considered area. this in controls of implementation and design the We assessed accordance with the requirements of IFRSs. IFRSs. of requirements the with accordance in were they if determine to made disclosures the We assessed value. realisable net of determination the of accuracy arithmetical the We reperformed fair values. of determination the on impact their of extent the evaluate to assumptions on significant the analyses sensitivity We performed to the understand rationale behind the estimates made. parameters, we discussed these with the valuers and management Where we identified estimates that were outside acceptable How the matter was addressed in our audit our in addressed was matter the How Inventories .

Aldar Annual Report 2019 119 120 Financial Statements To PJSC of Properties Aldar Shareholders the (continued) Independent Auditor’s Report KEY AUDIT MATTERS MATTERS AUDIT KEY STATEMENTS FINANCIAL CONSOLIDATED THE OF AUDIT THE ON REPORT Refer to note 8 for disclosures relating to this matter. this to relating disclosures 8for note to Refer of investment property. value fair the determining in estimates significant make to management requires it and methodologies 3valuation level on based determined is value fair the as matter a key audit as properties investment of valuation the We have identified a fair value adjustment in its consolidated income statement. recognise will Group the amount, carrying its than lower or higher is asset estate areal of value fair the that event the In consolidated financial statements. the in misstatement amaterial to lead could value fair the determining in error or bias any as area this in focus audit specific warrants uncertainty estimation of significant existence The assumptions. of anumber on based is and area judgement asignificant is portfolio the of valuation The rates. discount and rates capitalisation rates, rental future to related assumptions and estimates significant make to management requires assets operating existing the on projections income and the assessment of the expected remaining holding period and analysis flows cash future undiscounted Group’s The valuation. of approach income using valuations external on based is properties investment these of value fair of determination The value. fair at properties investment its measures Group The million). (2018: 671 AED million consolidated income statement amounted to AED 375 the in recorded loss value fair net the and million) 16,408 2019 (2018: AED 31 at December as million 16,783 AED to The Group’s investment amounted portfolio property Valuation of investment properties Key audit matter audit Key (CONTINUED)

of IFRS 13 13 IFRS of in performed properties was accordance with the requirements by management and whether assessed the valuation of the internally and valuers by external valued properties selected review to specialist valuation estate real internal our We involved basis. sample a on Group, by the valuer the to provided data the We tested inreported the consolidated statement of financial position. amount the to report valuers the in valuation total the We agreed sufficient. was work their of scope the that determine to Group the with engagement of terms their read and capabilities and competence valuer’s the We assessed this area. in controls of implementation and design the We evaluated in accordance with the requirements of IFRSs. IFRSs. of requirements the with accordance in were they if determine to made disclosures the We assessed amounts. of recoverable determination the of accuracy arithmetical the We reperformed fair values. of determination the on impact their of extent the evaluate to assumptions on significant the analyses sensitivity We performed to the understand rationale behind the estimates made. parameters, we discussed these with the valuers and management Where we identified estimates that were outside acceptable How the matter was addressed in our audit our in addressed was matter the How Fair Value Measurement Value Fair (CONTINUED) .

to report in this regard. this in report to We have nothing fact. that report to required are we information, other this of misstatement amaterial is there that conclude we report, auditor’s this of date the to prior obtained we that information other the on have we performed work the on If, based misstated. materially be to appears otherwise or audit, the in obtained knowledge in doing so, consider whether the and, other information is information materially other inconsistent the read to is with the consolidated financial statements or our responsibility our statements, financial consolidated the of audit our with connection In thereon. conclusion assurance of form any express not will and not do we and information other the cover not does statements financial consolidated the on opinion Our thereon.report auditor’s our and statements financial consolidated the include not does information other The date. that after us to available made be to expected are which Report, Annual Group’s the and report, auditor’s this of date the to prior obtained we which Report, Directors’ of Board the comprises information other The information. other the for responsible are Directors of Board The 2019. February 13 on statements those on opinion unmodified an expressed who auditor by another audited 2018 were 31 December ended year the for Group the of statements financial consolidated The OTHER INFORMATION OTHER MATTER be recognized. be to revenue of amount the determining in made estimates Refer to note 4 for details about judgements applied and recognition. and judgements made in assessingthe timing of revenue of the assessment of satisfaction of performance obligations significance the to due matter akey audit as assessed was Revenue recognition development on property and sales period. reporting the of end the at as obligations performance of satisfaction of extent the to revenue proportionate performance obligations under the contract and recognises meet to required costs infrastructure and development total estimates Group the time, over recognised is revenue Where consolidated financial statements. the 4to Note 3.7 and Note in disclosed as contract the of life the during time any at completed performance to related payment for right enforceable an has Group the whether and use alternative no with asset estate a real created has Group the whether of aconsideration on based time in apoint at or time over revenue recognise to whether with customers fordevelopment property and sales, contracts its of each for assesses Group The made. be to estimates and applied be to judgements significant required Revenue recognition development on property and sales Revenue recognition for property development and sales Key audit matter audit Key

statements in this area against the requirements of IFRSs. of requirements the against area this in statements We the assessed disclosures made in the consolidated financial the underlyingunderstand reason. variances against the approved budgets were noted to where significant management with discussions held and budgets project of approval around governance the We evaluated recognised. be to revenue of amount the recalculated we projects, of For incurred. a significant costs the sample substantiate to basis, asample on invoices, supplier inspected We also incurred. costs total of apercentage as percentages completion projects’ the reviewed and developments estate real on-going significant for budgets cost project approved We examined documentation.supporting of inspection the through satisfied been had obligations performance resultant the extent what to We determined contracts. the in specified conditions and in accordance with the requirements of IFRS 15 15 IFRS of requirements the with accordance in time in apoint at or time over recognised be should revenue of performance obligations and their determination of whether development and management’s sales and assessed identification property for customers with contracts of asample We inspected measurement development for property and sales. and recognition revenue over Group by the established controls of We tested the design, implementation and operating effectiveness of development property and sales. respect in measurement and recognition revenue for Group the by implemented process the of understanding an We obtained Contracts with Customers with Contracts How the matter was addressed in our audit our in addressed was matter the How by making reference to the terms terms the to reference by making Revenue from from Revenue

Aldar Annual Report 2019 121 122 Financial Statements so would reasonably be expected to outweigh the public interest benefits of such communication. communication. such of benefits interest public the outweigh to expected be reasonably would so doing of consequences adverse the because report our in communicated be not should amatter that determine we circumstances, rare extremely in when, or matter the about disclosure public precludes regulation or law unless report auditors’ our in matters these We describe matters. key audit the therefore are and period current the of statements financial consolidated the of audit the in significance most of were that matters those determine we governance, with charged those with communicated matters the From to bear on our independence, and where applicable, related safeguards. thought be reasonably may that matters other and relationships all them with communicate to and independence, regarding requirements ethical relevant with have we complied that astatement with governance with charged those provide We also audit. our during identify we that control internal in deficiencies significant any including findings, audit significant and audit the of timing and scope planned the matters, other among regarding, governance with charged those with We communicate • • • • • • We also: audit. the throughout skepticism professional maintain and judgement professional exercise we ISAs, with accordance in audit an of part As consolidated financial statements. these of basis the on taken users of decisions economic the influence to expected be reasonably could they aggregate, the in or if, individually material considered are and error or fraud from arise can Misstatements exists. it when misstatement a material detect always will ISAs with accordance in conducted audit an that aguarantee not is but assurance, of level ahigh is assurance from material free misstatement, are whether due awhole to fraud as or error, and to statements issue an auditor’s that report financial includes our opinion. Reasonable consolidated the whether about assurance reasonable obtain to are objectives Our so. do to but alternative realistic have no or operations, cease to or Group the liquidate to intends either management unless accounting of basis concern going the using and concern going to related matters applicable, as disclosing, concern, going a as continue to ability Group’s the assessing for responsible is management statements, financial consolidated the preparing In error. or fraud to due whether misstatement, material from free are that statements financial consolidated of preparation the enable to necessary is determine management as control internal such for and (2) No. 2015, of Law UAE Federal the and Company the of association of articles the of provisions applicable the and Standards Reporting Financial International Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with reported. be must which standards, auditing the of terms in exists irregularity areportable whether consider and governance with charged those to matter the communicate to required be will we therein, misstatement amaterial is there that conclude we if Report, Annual Group’s the read will we When To PJSC of Properties Aldar Shareholders the (continued) Independent Auditor’s Report AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL CONSOLIDATED THE OF AUDIT THE FOR RESPONSIBILITIES AUDITOR’S FINANCIAL CONSOLIDATED THE FOR GOVERNANCE WITH CHARGED THOSE AND MANAGEMENT OF RESPONSIBILITIES STATEMENTS FINANCIAL CONSOLIDATED THE OF AUDIT THE ON REPORT • • • • • • performance of the group audit. We and remain solely responsible for our supervision audit opinion. direction, the for responsible We are statements. financial consolidated the on opinion an express to Group the within activities business or entities the of information financial the regarding evidence audit appropriate sufficient Obtain presentation; and fair achieves that amanner in events and transactions underlying the represent statements financial consolidated the whether Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and concern; agoing as continue to cease to Group the cause may conditions or events However, future report. auditors’ our of date the to up obtained evidence audit the on based are conclusions Our opinion. our modify to inadequate, are or, disclosures such if statements financial consolidated the in disclosures related the to report auditor’s our in attention draw to required are we exists, uncertainty amaterial that conclude we If concern. agoing as continue to ability Group’s the on doubt significant cast may that conditions or events to related exists uncertainty amaterial whether obtained, Conclude on the appropriateness of management’ use of the going concern basis of accounting on and based the audit evidence made by management; disclosures related and estimates accounting of reasonableness the and used policies accounting of appropriateness the Evaluate control; internal Group’s the of effectiveness the on opinion an expressing of purpose the for not but circumstances, the in appropriate are that procedures audit design to order in audit the to relevant control internal of understanding an Obtain from error, fraud as may involve resulting one collusion, for forgery, than higher intentional is omissions, fraud misrepresentations, from or the resulting override of internal control; misstatement amaterial detecting not of risk The opinion. our for abasis provide to appropriate and sufficient is that evidence audit obtain and risks, those to responsive procedures audit perform and design error, or fraud to due whether statements, financial consolidated the of misstatement material of risks the assess and Identify STATEMENTS (CONTINUED)

United Arab Emirates Dhabi Abu 2020 February 12 Registration No. 809 F. Najem Georges &Touche (M.E.) Deloitte • • • • • • • • that: report we (2) No. 2015, of Law UAE Federal by the required as Further, REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS REGULATORY AND LEGAL OTHER ON REPORT • • • • • • • • financial position as at 31 December 2019. 31 at December as position financial its or activities its affect materially would which Association of Articles and (2) Memorandum or, No. 2015 of Law its Federal UAE the of provisions applicable the of 2019 any 31 December ended year financial the during contravened has Company the that believe to us causes which attention our to come has nothing us to available made been has that information the on Based and year; the during made contributions social to relating disclosures the reflects 40 Note conducted; were they which under terms the and transactions party related to relating disclosures the reflects 35 Note 2019; 31 December ended year financial the during Group by the invested or purchased shares to relating disclosures the reflects 3.2 Note Group; the of records and account of books the with consistent is Report Directors’ of Board the in included information financial The account; of books proper maintained has Company The (2) No. 2015; of Law UAE Federal the of provisions applicable the with respects, material all in comply, and prepared have been statements financial consolidated The audit; our of purposes the for necessary considered we information the all We have obtained

Aldar Annual Report 2019 123 124 Financial Statements Total assets progress in work Development sale for held Land assets Current Total assets non-current Trade and other receivables instruments Derivative financial Total assets current balances bank and Cash Trade and other receivables Inventories (“FVTOCI”) income comprehensive other through value fair at assets Financial Lease liabilities Retentions payable borrowings Bank Non-convertible sukuk Non-current liabilities Company the of owners to attributable Equity earnings Retained Investment properties goodwill and assets Intangible Investment in associates and joint ventures joint and associates in Investment Bank borrowings Bank Non-convertible sukuk Current liabilities Total non-current liabilities instruments Derivative financial Employees benefits Total equity Non-controlling interests Investment revaluation reserve Property, plant and equipment Non-current assets ASSETS Cash flow hedging reserve hedging flow Cash reserve Statutory Share capital Equity LIABILITIES AND EQUITY At 31 2019 December Position of Financial Statement Consolidated statements. financial consolidated these of part integral an form notes accompanying The Chairman Mubarak Al Mohamed Total equity and liabilities Total liabilities Total current liabilities Trade and other payables Advances from customers Lease liabilities Retentions payable Officer Executive Chief Dhiyebi Al Talal Chief Financial Officer Financial Chief Fewer Greg Notes 20 20 23 22 22 10 18 18 14 19 19 13 16 15 12 21 17 17 17 17 11 11 8 6 9 7 20,972,396 20,294,327 24,837,506 24,951,250 41,266,723 41,266,723 16,782,476 13,057,604 16,315,473 3,504,590 7,409,950 5,686,242 4,796,967 8,905,523 2,546,972 7,862,630 4,407,417 1,052,786 6,211,360 6,125,214 3,628,113 3,931,315 604,694 238,926 260,210 AED ‘000 487,658 198,979 431,559 167,464 192,223 (33,482) 113,744 55,202 10,760 19,439 75,226 80,781 36,377 2019 – 16,408,303 24,235,830 38,543,705 38,543,705 24,063,168 21,710,064 14,307,875 16,833,641 5,489,050 12,163,947 5,070,445 3,806,071 4,865,481 7,862,630 3,600,971 5,014,607 6,740,337 2,473,374 7,567,538 1,810,140 3,931,315 AED ‘000 AED 399,002 409,493 304,702 430,703 469,144 362,276 358,512 993,531 150,710 172,662 198,117 34,729 70,547 14,024 99,195 96,116 5,802 21,811 2018 The accompanying notes form an integral part of these consolidated financial statements. financial consolidated these of part integral an form notes accompanying The share per earnings diluted and Basic Non-controlling interests Company the of Owners to: attributable year the for Profit year the for Profit Selling and marketing expenses Other income Finance costs income Finance write-downs of net properties, of exchange on Gain properties investment of disposal on Gain Gross profit Gross costs Direct Share of (loss)/profit from associates and joint ventures joint and associates from (loss)/profit of Share Fair value loss on investment properties, net properties, investment on loss value Fair equipment and plant property, of disposal on Gain venture joint of disposal on Gain General and administrative expenses administrative and General Revenue 31For year the 2019 ended December Consolidated Income Statement Others Provisions, impairments and write-downs, net write-downs, and impairments Provisions, Depreciation and amortisation costs Staff Notes 6,7 30 28 29 24 26 33 32 25 27 31 8 8 6 9 9 (4,378,237) 2,769,644 1,984,097 1,925,179 1,925,179 7,147,881 (268,550) (126,407) (109,522) (237,423) (349,719) 388,384 (152,675) (374,751) AED ‘000 258,387 (58,918) 84,087 22,964 23,856 (3,096) 0.252 2019 – (3,654,846) 1,854,864 1,854,864 1,855,808 6,286,533 2,631,687 (309,749) AED ‘000 AED (218,948) (671,046) (230,142) (139,235) (50,048) (85,440) 767,868 49,863 30,319 79,735 0.236 (944) 2018 – – –

Aldar Annual Report 2019 125 126 Financial Statements Items that may be reclassified subsequently to profit or loss: or profit to 9) (note venture joint of income comprehensive other of Share loss: 22) (note loss or profit to or subsequently reclassification of net hedges, flow cash under classified profit year the during to reclassified be instruments hedging on arising (loss)/gain value Fair may subsequently that Items reclassified 10) (note FVTOCI at as be designated instruments equity in investments not on loss value Fair will that Item Other comprehensive income: year the for Profit For the year ended 31For year the 2019 ended December Consolidated Statement of Comprehensive Income Other comprehensiveOther (loss)/income for the year upon loss or profit to reclassified venture ajoint of instruments hedging on arising loss Cumulative The accompanying notes form an integral part of these consolidated financial statements. financial consolidated these of part integral an form notes accompanying The Non-controlling interests Company the of Owners Total comprehensive income for the year attributable to: Total comprehensive income for the year derecognition (note 9) 1,875,106 1,816,188 1,816,188 1,925,179 (105,466) (108,991) AED ‘000 (58,918) (4,962) 1,717 (280) 2019 1,854,864 1,933,080 1,933,080 1,934,024 AED ‘000 AED 82,951 78,216 (9,355) 4,620 (944) 2018 – Profit for the year the for Profit The accompanying notes form an integral part of these consolidated financial statements. financial consolidated these of part integral an form notes accompanying The (i) Balance at 1 January 31For year the 2019 ended December in Equity of Changes Statement Consolidated Other comprehensiveOther Non-controlling Dividends paid for the the for paid Dividends Total comprehensive Balance at Profit for the year the for Profit Acquisition of Total comprehensive comprehensiveOther Dividends paid for the the for paid Dividends Balance at investment of Transfer 2018 income/(loss) subsidiary (notesubsidiary 5) a of acquisition on recognised interests year 2017 year year income/(loss) for the 31 December 2018 31 December interests interests non-controlling year (loss)/income for the loss year 2018 (note 34) 2018 (note year 31 December 2019 10) (note FVTOCI at as designated instruments equity in investments of disposal upon revaluation reserve 51,106 thousand thousand 51,106 AED to amounting equity. in acquired directly interests recognised is non-controlling the of value carrying and paid consideration shares 100% between holding Group the in difference The resulting 2018 investee. the of September 25 effective LLC (a subsidiary) Khidmah in shares 40% remaining of acquisition represent This (i) 7,862,630 7,862,630 7,862,630 AED ‘000 AED capital Share Share – – – – – – – – – – – 3,931,315 3,931,315 3,931,315 AED ‘000 AED Statutory Statutory reserve – – – – – – – – – – – AED ‘000 AED Cash flow Cash (104,029) (104,029) (33,482) hedging reserve (17,024) 70,547 87,571 87,571 – – – – – – – Investment revaluation AED ‘000 AED 44,084 19,439 (10,328) reserve 34,729 (4,962) (4,962) (9,355) (9,355) – – – – – – 13,057,604 11,200,549 12,163,947 1,855,808 1,855,808 (1,100,768) 1,984,097 1,984,097 AED ‘000 AED (943,516) Retained Retained earnings 10,328 51,106 – – – 24,837,506 the company 24,063,168 23,021,554 to owners of of owners to attributable attributable 1,855,808 (1,100,768) 1,984,097 1,934,024 1,875,106 AED ‘000 AED (943,516) (108,991) 78,216 51,106 Equity Equity – – controlling controlling AED ‘000 AED 113,744 interests 172,662 (58,918) (58,918) 213,611 (81,106) 41,101 Non- (944) (944) – – – – – 24,951,250 24,235,830 23,235,165 Total equity 1,854,864 1,933,080 (1,100,768) 1,816,188 1,925,179 AED ‘000 AED (943,516) (30,000) (108,991) 78,216 41,101 –

Aldar Annual Report 2019 127 128 Financial Statements Net cash generated from/(used in) operating activities paid benefits service of end Employees’ Cash generated from/(used in) operations Adjustments for: year the for Profit Operating activities Increase in development work in progress in work development in Increase Increase in trade and other receivables Movement in working capital: Operating cash flows before movements in working capital The accompanying notes form an integral part of these consolidated financial statements. financial consolidated these of part integral an form notes accompanying The (ii) (i) 31For year the 2019 ended December Flows of Cash Statement Consolidated Increase in inventories and land held for sale for held land and inventories in Increase Increase in trade and other payables customers from advances in Increase/(decrease) payable retentions in Increase Provisions/impairment (trade receivables and development work in progress) in work development and receivables (trade Provisions/impairment (Release)/provision for onerous contracts ventures joint and associates from profit of Share net properties, investment on loss value Fair Finance costs Dividend income Finance income Finance Depreciation and amortisation Gain on disposal of property, plant and equipment and plant property, of disposal on Gain net equipment, and plant property, on impairment of Reversal combinations business on gain purchase Bargain net accruals, of Reversal Provision for employees’ end of service benefits service of end employees’ for Provision to reclassified venture ajoint of instruments hedging on arising loss Cumulative properties investment of disposal on Gain Gain on exchange of properties, net of write-downs of net properties, of exchange on Gain Refer note 41 for details of non-cash transactions excluded from the consolidated statement of cash flows. cash of statement consolidated the from excluded transactions non-cash of details 41 for note Refer and land of acquisition the to relating thousand projects under 2,050,000 development AED of as part the acquisitions include 2018 from Tourism December 31 Development & ended Investment year Company the (note for 5). activities operating for outflows cash net The profit or loss upon derecognition (i) (i) (i)

Notes 6,7 28 28 29 32 10 10 31 21 21 8 8 9 6 (1,002,762) (1,002,762) 1,348,907 2,456,130 1,319,368 1,925,179 (388,384) (196,966) (878,199) 278,009 694,613 AED ‘000 150,709 349,719 125,382 (84,087) (22,964) (23,856) 374,751 (29,539) (29,186) (36,357) 39,154 (6,842) (1,400) 77,581 3,096 1,717 2019 – 1,854,864 (1,760,190) 2,729,536 (998,350) AED ‘000 AED (144,528) (107,388) 242,807 (98,008) 671,046 (107,578) 287,520 (132,791) (49,863) (22,507) (36,675) (79,735) 92,630 (70,713) 36,687 59,325 71,247 12,126 (5,415) 2018 – – – – The accompanying notes form an integral part of these consolidated financial statements. financial consolidated these of part integral an form notes accompanying The year the of end at equivalents cash and Cash year the of beginning at equivalents cash and Cash sukuk and borrowings bank of Repayments sukuk and borrowings bank from Proceeds swaps rate interest of settlement Partial Repayments of liabilities lease Financing activities Net cash from investing activities Net increase in cash and cash equivalents cash and cash in increase Net Net cash used in financing activities paid Dividends paid costs Finance Directors’ remuneration paid Acquisition of businesses, net of cash acquired cash of net businesses, of Acquisition Additions to investment properties assets intangible of Purchases equipment and plant property, of Purchases Investing activities Dividends receivedDividends received income Finance FVTOCI at assets financial in investment against received distributions Capital FVTOCI at assets financial in investment against made contributions call Capital balances bank restricted in Movement months three than greater of maturity original with deposits term in Movement asubsidiary in interests non-controlling of Acquisition FVTOCI at assets financial of disposal from Proceeds equipment and plant property, of disposal from Proceeds properties investment of disposal from Proceeds Acquisition of cash and cash equivalents cash and cash of Acquisition Notes 36.2 9,10 5.3 35 10 10 10 15 8 6 9 7 (1,742,500) (1,101,810) 1,394,358 2,329,149 2,290,112 (989,305) (338,937) (362,337) 586,456 (113,278) AED ‘000 895,754 (127,518) 565,691 295,215 113,682 (16,075) (42,011) 30,799 23,058 89,783 (77,121) 31,100 (6,422) (2,452) 7,605 2019 – – 2,408,578 (7,075,014) 1,394,358 8,171,250 (283,830) AED ‘000 AED (928,337) (945,618) (148,876) (732,277) (30,000) 916,907 (60,249) 733,715 477,451 125,541 (14,420) 58,466 (54,851) (94,170) 28,338 (19,279) 34,775 (4,064) 2018 – – – –

Aldar Annual Report 2019 129 130 Financial Statements 1 31For year the 2019 ended December Statements Financial Consolidated toNotes the 2 courses. golf and club beach restaurants, is also engaged in development, construction, management and operation of hotels, schools, cooling marinas, station operations, development, investment, sales, construction, leasing, management and associated the services for real estate. In addition, primarily the Group businesses various in engaged are “Group”) the as to referred (together subsidiaries its and Company The Company. the of 37.4% shares indirect an has subsidiaries owned wholly its through Company Investment 2019, Mubadala 31 of December As Exchange. Securities Dhabi Abu the on listed are shares ordinary Company’s The Dhabi. P.O. Abu is address 51133, Box office registered its and (UAE) Emirates Arab United the in domiciled is Company The 2005. February 23 dated Economy of UAE Minister by the issued (59) No. 2005 of Resolution by Ministerial declared was incorporation Company’s The 2004. October 12 dated Economy and Planning of Department Dhabi Abu the of (16) No. 2004 of by Decision approved was “Company”) (the pjsc Properties Aldar of establishment The 2.1 does not have any impact on the Group’s consolidated financial statements. financial consolidated Group’s the on impact have any not does amendment This applied. not is method equity the which to but venture joint or associate the in investment net the of part form that venture joint or associate an in interests long-term to Instruments 9Financial IFRS applies entity an that clarifies amendment The statements. financial consolidated Group’s the on impact have any not does amendment This • • 19) are: IAS to (Amendments Settlement or Curtailment Amendment, Plan in amendments The statements. financial consolidated Group’s the on impact have any not does amendment This payments. compensation negative of case the in even income) comprehensive other through value fair at model, business the on depending (or, cost amortised at measurement allow to order in rights termination 9regarding IFRS in requirements existing the Amends statements. financial consolidated Group’s the on impact have any not does Interpretation This • • • • considers: specifically It 12. IAS under treatments tax income over uncertainty is there and when credits rates, tax tax unused losses, tax unused bases, tax loss), (tax profit taxable of determination the addresses interpretation The statements: financial consolidated these in adopted 2019, have been 1January after or on beginning periods annual for effective became which interpretations, and IFRSs revised and new following The IN ASSOCIATES AND JOINT VENTURES JOINT AND ASSOCIATES IN INTERESTS LONG-TERM TO RELATING VENTURES JOINT AND ASSOCIATES IN INVESTMENTS 28 IAS IN AMENDMENTS A DEFINED BENEFIT PLAN AMENDMENT TO IAS 19 EMPLOYEE BENEFITS RELATING TO AMENDMENT, CURTAILMENT OR SETTLEMENT OF COMPENSATION NEGATIVE WITH FEATURES PREPAYMENT TO RELATING INSTRUMENTS 9 FINANCIAL IFRS IN AMENDMENTS TREATMENTS TAX INCOME OVER UNCERTAINTY 23 IFRIC • • • • • •

requirements regarding the on the asset ceiling. settlement or curtailment amendment, aplan of effect the clarify to included have been amendments addition, In and remeasurement; the for used assumptions the using determined are remeasurement the after period the for interest net the and cost service current the that mandatory now is it occurs, settlement or curtailment amendment, aplan If circumstances. and facts in changes of effect and rates; The tax and credits tax unused losses, tax unused bases, tax loss), (tax profit taxable of determination The Assumptions for authorities' taxation examinations; treatmentsWhether tax should be considered collectively;

GENERAL INFORMATIONGENERAL ADOPTION OF NEW INTERNATIONAL AND REVISED REPORTING STANDARDS FINANCIAL (“IFRS NEW AND AMENDED IFRS s THAT ARE EFFECTIVE FOR THE CURRENT YEAR CURRENT THE FOR EFFECTIVE THAT ARE s ”)

IFRSs that have been issued but are not yet effective: yet not are but issued have been that IFRSs revised and new following the applied not has Group the statements, financial consolidated these of authorisation of date At the in the process of determining the impact of these amendments on the Group’s consolidated financial statements. financial consolidated Group’s the on amendments these of impact the determining of process the in is Management statements. financial consolidated Group’s the on impact have amaterial will future the in amendments above the of adoption the that expect not do management Reform, Benchmark rate Interest to amendments the Except Amendments to IFRS 10 IFRS to Amendments 1) IAS to (Amendments Non-Current or Current as Liabilities of Classification 2.2 Group. the of statements financial consolidated the on impact have amaterial not did amendments these of application The • • • The amendments in in amendments The 7) IFRS and 39 IAS 9, IFRS to (Amendments Reform Benchmark Rate Interest standards. the and Framework Conceptual the in used definition the align and ‘material’ of definition the 8) clarify IAS 1and IAS to (Amendments Material of Definition in amendments The 3 IFRS to Amendment Framework Conceptual the of version adifferent to refer they where indicate to or framework the from quotes and to references to regard with pronouncements those update to SIC-32 and 22, IFRIC 20, IFRIC 19, IFRIC 12, IFRIC 37, 38, IAS IAS 34, IAS 8, IAS 1, IAS 14, IFRS 6, IFRS 3, IFRS 2, IFRS to –amendments Standards IFRS in Framework Conceptual the to References to Amendments IFRSs revised and New IFRS 17 IFRS reform. benchmark rate interest of aresult as altered be not will based are instrument hedging the from flows cash and flows cash hedged the which on benchmark rate interest the that assuming requirements accounting hedge certain apply to continue would entities that clarify investor to its associate or joint venture. joint or associate its to investor and Joint Ventures Joint and Amendments to IAS 1 and IAS 8 relating to to 8relating IAS 1and IAS to Amendments 3only. IFRS of examples illustrative the and guidance, application the terms, Defined A Appendix to changes 3) are IFRS to (Amendments aBusiness of Definition in amendments The ANNUAL IMPROVEMENTS TO IFRS TO IMPROVEMENTS ANNUAL • • • capitalisation rate on general borrowings. the calculating when generally borrows entity an that funds the of part becomes borrowing that sale, or use intended its for ready is asset related the after outstanding remains borrowing specific any if that clarify amendments –The 23 IAS profits. undistributed and distributed for rates tax different are there where situations with deals only that 52A paragraph away from paragraph the by moving dividends of consequences tax income all to apply recognised) are profits distributable generated that events or transactions the where dividends of consequences tax income the (to recognise 52B paragraph in requirements the that clarify amendments –The 12 IAS business. that in interests held previously remeasure not does entity the operation, ajoint is that abusiness of control joint obtains entity an when that clarify 11 IFRS to amendments The business. that in interests held previously remeasures it operation, ajoint is that abusiness of control obtains entity an when that 3clarify IFRS to amendments –The 11 IFRS 3and IFRS

NEW AND AMENDED IFRS Insurance Contracts Insurance (2011) relating to the treatment of the sale or contribution of assets from and and from assets of contribution or sale the of treatment the to relating (2011) Interest Rate Benchmark Reform Benchmark Rate Interest Business Combinations Business Consolidated Financial Statements Financial Consolidated s IN ISSUE BUT NOT YET EFFECTIVE AND NOT EARLY ADOPTED EARLY ADOPTED NOT AND EFFECTIVE YET NOT BUT ISSUE IN s 2015–2017CYCLE Definition of Material of Definition relating to definition of a business abusiness of definition to relating (Amendments to IFRS 9, IAS 39 and IFRS 7) 7) IFRS and 39 IAS 9, IFRS to (Amendments and IAS 28 IAS and Investments in Associates Associates in Investments

of the first annual reporting reporting annual first the of indefinitely. Adoption is still is on or after the beginning beginning the after or on is Business combinations for Business which acquisition the date Effective date deferred deferred date Effective period beginning on or after 1 January 2020 1January after beginning on or after or on beginning 1 January 2020 1 January 2020 1 January 1 January 2020 1 January 1 January 2022 1 January 1 January 2021 1 January annual periods Effective for

permitted.

Aldar Annual Report 2019 131 132 Financial Statements Group are eliminated in full on consolidation. on full in eliminated are Group the of members between transactions to relating flows cash and expenses income, equity, liabilities, and assets intragroup All policies. accounting Group the with line into policies accounting their bring to subsidiaries of statements financial the to made are adjustments necessary, Where balance. deficit having interest non-controlling the in results this if even interests non-controlling the to and Company the of owners the to attributed are (OCI) income comprehensive other of component each and loss or Profit subsidiary. the control to ceases Company the when date the until control gains the consolidated income statement and consolidated in statement of other included comprehensive are year income the from the during of date when the Company disposed or acquired asubsidiary of expenses and income Specifically, subsidiary. the of control loses Company the when ceases and subsidiary the over control obtains Company the when begins asubsidiary of Consolidation • • • • power, it including: give to sufficient are investee an in rights voting Company's the not or whether assessing in circumstances and facts relevant all considers Company The unilaterally. investee the of activities relevant the direct to ability practical the it give to sufficient are rights voting the when investee the over power has it investee, an of rights voting the of amajority than less has Company the When above. listed control of elements three the of more or one to changes are there that indicate circumstances and facts if investee an controls it not or whether reassesses Company The • • • Company: the when achieved is Control subsidiaries. its and Company by the controlled entities and Company the of statements financial the incorporate statements financial consolidated The 3 31For year the 2019 ended December Notes to the Consolidated Financial Statements (continued) 3.1 3.1 3.2 indicated. otherwise when except thousand nearest the to rounded are values all and Group the of currency presentation and functional the is which (AED) UAE Dirhams in presented are statements financial consolidated These • • • follows: as described is which entirety, its in measurement value fair the to inputs the of significance the and observable are measurements value fair the to inputs the which to degree the on 3based 2or 1, level into categorised are measurements value fair purposes, reporting financial for addition, In date. measurement the at liability or asset the pricing when account into characteristics those take would participants market if liability or asset the of characteristics the account into takes Group the liability, or asset afinancial of value fair the estimating In technique. valuation another using estimated or observable directly is price that whether of regardless date, measurement the at participants market between transaction orderly an in aliability of transfer on paid or asset an of sale on received be would that price the is value Fair consideration given in the of exchange for value goods and services. fair the on based generally is cost Historical below. given polices accounting the in explained as period, reporting each of end the at values fair at instruments financial derivative of measurement and income comprehensive other through value fair at assets financial the of revaluation properties, investment of revaluation the for except basis cost historical the on prepared have been statements financial consolidated These (2) No. 2015. of Law Federal U.A.E. the of provisions applicable and (“IFRS”s) Standards Reporting Financial International with accordance in prepared have been statements financial consolidated These • • • • • • • • • •

relevant activities at the time that decisions need to be made, including voting patterns at previous shareholders’ meetings. meetings. shareholders’ previous at patterns voting including made, be to need decisions that time the at activities relevant the direct to ability current the have, not does or has, Company the that indicate that circumstances and facts additional any rights arising from other contractual arrangements; and parties; other or holders vote other Company, by the held rights voting potential holders; vote other the of holdings of dispersion and size the to relative rights voting of holding Company's the of size the returns. its affect to power its use to ability the has and investee; the with involvement its from returns variable to rights, has or exposed, is investee; the over power has Level 3 inputs are unobservable inputs for the asset or liability. or asset the for inputs unobservable are 3inputs Level directly or indirectly; and either liability, or asset the for observable are that 1, level within included prices quoted than other inputs, are 2inputs Level date; measurement the at access can entity the that liabilities or assets identical for markets active in (unadjusted) price quoted are 1input Level

BASIS OF CONSOLIDATION SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ACCOUNTING SIGNIFICANT OF SUMMARY STATEMENT OF COMPLIANCE AND BASIS OF PREPARATION OF BASIS AND COMPLIANCE OF STATEMENT

Provis Real Estate Management – Sole –Sole Management Estate Real Provis LLC Trade World Centre Dhabi Abu LLC Marinas Aldar LLC Hospitality and Hotels Aldar Aldar Commercial Property Property Commercial Aldar LLC Academies Aldar Aldar Education – Sole Proprietorship LLC LLC Company Infrastructure Raha Al LLC Services Estate Real Aldar LLC Mall Jimi Al LLC Property Gardens Raha Al ofName subsidiary are given subsidiaries of below: Company the significant Details venture. joint or associate an in investment an of recognition initial on cost the or applicable, 9when IFRS under accounting subsequent for recognition initial on value fair the as regarded is lost is control when date the at subsidiary former the in retained investment any of value fair The IFRS). by applicable required/permitted as equity of category another to transferred or loss or profit to (i.e. reclassified subsidiary the of liabilities or assets related the of disposed directly had Group the if as for accounted are subsidiary that to relation in income comprehensive other in recognised previously amounts All interests. non-controlling any and subsidiary the of liabilities less goodwill), (including assets the of amount carrying previous (ii) the and interest retained any of value fair the and received consideration the of value fair the of aggregate (i) the between difference the as calculated is loss or profit in recognised disposal on losses or gain the asubsidiary, of control losses Group the When Company. the of owners the to attributed and equity in directly recognised is received or paid consideration the of value fair the and adjusted are interest non-controlling the by which amount the between difference Any subsidiaries. the in interests relative their in changes the reflect to adjusted are interests non-controlling the and interests Group’s the of amount carrying The transactions. equity as for accounted are control of aloss in result not do that subsidiaries in interests Group’s the in Changes equity. in changes subsequent of share interests’ non-controlling the plus recognition initial at interests those of amount the is interests non-controlling of amount carrying the acquisition, to Subsequent value. fair at measured initially are interests non-controlling Other basis. acquisition-by-acquisition an on made is measurement of choice The assets. net identifiable acquiree’s the of value fair the of share proportionate interests’ non-controlling the at or value fair at measured be initially may shareholders that are present ownership interests non-controlling of entitling their interest holders to a Those proportionate share of therein. net upon liquidation assets equity Group’s the form separately identified are subsidiaries in interests Non-controlling Proprietorship LLCProprietorship Developments LLC (i)

(i) Ownership interest Ownership 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 2019 100% 100% 100% 100% 100% 100% 100% 100% 100% 2018 – – incorporation Country of Country UAE UAE UAE UAE UAE UAE UAE UAE UAE UAE UAE investment in, properties and related activities related and properties in, investment Development and management of, and and marine machinery clubs sports marinas, operating and Managing services hospitality and hotels providing of, entities management and in, Investment of buildings Ownership, management and development Principal activity Principal providing educational services entities of management and in, Investment Management and leasing of real estate real of leasing and Management providing educational services entities of management and in, Investment of properties Development, sale and management developmentProperty investment property Development and management of of properties Development, sale and management

Aldar Annual Report 2019 133 134 Financial Statements Provis Real Estate Brokers LLC Brokers Estate Real Provis 2) (No. Ltd. Sukuk Aldar SukukAldar Ltd. Saadiyat Accommodation Village LLC Cloud Spaces – Sole Proprietorship LLC is measured at fair value with the changes in fair value recognised in the consolidated income statement in accordance with IFRS 9. 9. IFRS with accordance in statement income consolidated the in recognised value fair in changes the with value fair at measured is Instruments, 9Financial IFRS of scope the within and instrument afinancial is that liability or asset an as classified consideration Contingent equity. within for accounted is settlement subsequent its and remeasured not is equity as classified consideration Contingent date. acquisition the at value fair at recognised be will acquirer by the transferred be to consideration contingent Any acquiree. by the contracts host in derivatives embedded of separation the includes This date. acquisition the at as conditions pertinent and circumstances economic terms, contractual the with accordance in and designation classification appropriate for assumed liabilities and assets financial the assesses it abusiness, acquires Group the When and included in incurred administrative as expenses. expensed are costs Acquisition-related assets. net identifiable acquiree’s the of share proportionate the at or value fair at acquiree the in interests non-controlling the measure to whether elects Group the combination, business each For acquiree. the in interests non-controlling any of amount the and value, fair date acquisition at measured is which transferred, consideration the of aggregate the as measured is acquisition an of cost The method. acquisition the using for accounted are business of Acquisition 3.3 (i) LLC Management Estate Real Seih Al LLC Investment Estate Real Liwa Tilal LLC Yas Links LLC Yas Hotel ofName subsidiary 3 31For year the 2019 ended December Notes to the Consolidated Financial Statements (continued) Seih Sdeirah Real Estate LLC Estate Real Sdeirah Seih are given subsidiaries of below: Company the significant Details 3.2 Saadiyat Grove – Sole Proprietorship LLC Proprietorship –Sole Grove Saadiyat LLC Cooling District Saadiyat LLC Cooling Saadiyat TDIC Education – Sole Proprietorship LLC –Sole &Beverage Food TDIC LLC Proprietorship –Sole Khidmah Aldar Investment Holding Restricted Limited LLC Properties Investment Aldar Pivot Engineering & General

Proprietorship LLCProprietorship Co. (WLL) Contracting These entities were incorporated by the Group during the year. the during Group the by incorporated were entities These

BUSINESS COMBINATIONS AND GOODWILL BASIS OF CONSOLIDATION POLICIES ACCOUNTING SIGNIFICANT OF SUMMARY (i)

(i) (CONTINUED) (i) (i) 65.2% 91.4% 91.4% Ownership interest Ownership 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 85% 2019 65.2% 91.4% 91.4% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 85% 2018 (CONTINUED) – – – – incorporation Country of Country Cayman Cayman Cayman Cayman Islands Islands UAE UAE UAE UAE UAE UAE UAE UAE UAE UAE UAE UAE UAE UAE UAE UAE UAE Accommodation village Funding company Real estate brokerage services management and lease estate Real Real estate Funding company Principal activity Principal Property, rental and management clubs golf and Ownership and management of golf courses of hotels Ownership, development and management real estate projects investment projects estate real estate; real of leasing and Management Cooling station operations Cooling station operations Educational activities estate real of leasing and Management management company asset vehicle, purpose proprietary Special of hotels operation the and assets estate real for services Investment, management and associated investment projects estate real management; and rental Property Restaurant management Engineering and general construction works

extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate or joint venture. joint or associate the of behalf on payments made or obligations constructive or legal incurred has Group the that extent the to only recognised are venture) joint or associate in investment net Group’s the of part form substance, in that, interests term long any includes (which venture joint or associate that in interest Group’s the of excess in venture joint or associate an of Losses venture. joint or associate the of subsidiaries the in interests non-controlling and loss or profit represents and profit operating outside statement income consolidated the of face the on shown is venture ajoint and associate an of loss or profit of share Group’s the of aggregate The investees. the in interest the of extent the to eliminated are investees the and Group the between transactions from resulting losses and gains Unrealised equity. in changes of statement consolidated the in applicable, when changes, any of share its recognises Group the ventures, joint or associates the of equity the in directly recognised achange been has there when addition, In income. comprehensive other Group’s the of part as presented is investees those of income comprehensive other in change Any ventures. joint and associates of operations of results the of share Group’s the reflects statement income consolidated The individually. impairment for tested not is and investment the of amount carrying the in included is venture joint the or associate the to relating Goodwill date. acquisition the since venture joint the of assets net of share Group's the in changes recognise to adjusted is investment the of amount is classified as held for sale, in which case it is accounted for under IFRS 5 IFRS under for accounted is it case which in sale, for held as classified is investment the when except method, equity the using for accounted are venture joint and associate its in investments Group’s The subsidiaries. over control determine to necessary those to similar are control joint or influence significant determining in made considerations The control. sharing parties the of consent unanimous require activities relevant the about decisions when only exists which arrangement, an of control of sharing agreed contractually the is control Joint arrangement. joint the of assets net the to have rights arrangement the of control have joint that parties the whereby arrangement joint of atype is venture A joint policies. those over control joint or control not is but investee the of decisions policy operating and financial the in participate to power the is influence Significant venture. ajoint in interest an nor asubsidiary neither is that influence significant has Group the which over entity an is associate An 3.4 date. acquisition the from year one exceed cannot period measurement However, the obtainable. not is information the that learns or date acquisition the of as existed that circumstances and facts the about information necessary the receives Group the as soon as ends period measurement The date. that of as recognised amounts the have affected would known, if that, date acquisition the at existed that and circumstances facts about obtained information new reflect to recognised, are liabilities or assets additional or period, measurement the during adjusted are amounts provisional Those incomplete. is accounting the which for items the for amounts provisional reports Group the occurs, combination the which in period reporting the of end by the incomplete is combination abusiness for accounting initial the If of. disposed were interest that if appropriate be would treatment such where statement income to reclassified are income comprehensive other in recognised been have previously that date acquisition the to prior acquiree the in interests from arising Amounts statement. income in any, if recognised is loss, or gain resulting the and control) obtains Group the when date (i.e. the date acquisition the at value fair to remeasured is acquiree the in interest equity held previously Group's the stages, in achieved is combination abusiness When disposal. on loss or profit of determination the in included is goodwill of amount attributable the unit, generating acash of disposal On units. those to assigned are acquiree the of liabilities or assets other whether of irrespective combination, the from benefit to expected are that units cash-generating Group’s the of each to allocated date, acquisition the from is, combination abusiness in acquired goodwill testing, impairment of purpose the For losses. impairment accumulated any less cost at measured is goodwill recognition, initial After annually. least at impairment for reviewed is but amortised not is Goodwill loss. or profit in recognised is gain the then transferred, consideration aggregate the over acquired assets net of value fair the of excess an in results still reassessment the If date. acquisition the at recognised be to amounts the measure to used procedures the reviews and assumed liabilities the of all and acquired assets the of all identified correctly has it whether re-assesses Group the transferred, consideration aggregate the of excess in is acquired assets net the of value fair the If assumed). liabilities and acquired assets identifiable net the over held interest previous any and interests non-controlling for recognised amount the and transferred consideration the of aggregate the of excess the (being cost at measured initially is Goodwill loss. or profit in recognised value fair in changes with date reporting each at value fair at measured 9is IFRS of scope the within not is that consideration contingent Other Operations

INVESTMENT IN ASSOCIATES AND JOINT VENTURES JOINT AND ASSOCIATES IN INVESTMENT . Under the equity method, the investment in an associate or a joint venture is initially recognised at cost. The carrying carrying The cost. at recognised initially is venture ajoint or associate an in investment the method, equity the . Under Non-current Assets Held for Sale and Discontinued Discontinued and Sale for Held Assets Non-current

Aldar Annual Report 2019 135 136 Financial Statements The Group classifies all other liabilities as non-current. as liabilities other all classifies Group The • • • • when: current is A liability non-current. as classified are assets other All • • • • is: it when asset An current is classification. current/non-current on based position financial of statement the in liabilities and assets presents Group The 3 31For year the 2019 ended December Notes to the Consolidated Financial Statements (continued) 3.6 party. athird to assets those resells it until losses and gains the of share its recognise not does Group the assets), of a purchase as (such operator ajoint is entity agroup which in operation ajoint with transacts entity agroup When operation. joint the in interests parties' other of extent the to only statements financial consolidated Group’s the in recognised are transactions the from resulting losses and profits and operation joint the to parties other with transaction the conducting considered is Group the assets), of contribution or asale as (such operator ajoint is entity agroup which in operation ajoint with transacts entity agroup When expenses. and revenues liabilities, assets, particular the to applicable IFRSs with accordance in operation ajoint in interest its to relating expenses and revenues liabilities, assets, the for accounts Group The • • • • • operation: ajoint in interest its to relation in recognises operator ajoint as Group the operations, joint under activities its undertakes entity agroup When control. sharing parties the of consent unanimous require activities relevant the about decisions when only exists which arrangement, an of control of sharing agreed contractually the is control Joint arrangement. the to relating liabilities, the for obligations and assets, the to have rights arrangement the of control have joint that parties the whereby arrangement ajoint is operation A joint 3.5 Group. by the retained not are that venture join or associate the in interest of extent the to only statements financial consolidated Group’s the in recognised are venture joint or associate the with transaction the from arising gain/(loss)) (unrealised loss and profit Group, the of venture ajoint or associate an with transacts entity aGroup When consolidated income statement. the in recognised is disposal from proceeds and investment retained the of value fair the and control joint or influence significant of loss upon venture joint or associate the of amount carrying the between difference Any value. fair its at investment retained any recognises and measures Group the venture, joint the over control joint or associate the over influence significant of loss Upon statement. income consolidated the in venture’ ajoint and associate an of profit of ‘Share within loss the recognises then and value, carrying its and venture joint or associate the of amount recoverable the between difference the as impairment of amount the calculates Group the evidence, such is there If impaired. is venture joint or associate the in investment the that evidence objective is there whether determines Group the date, reporting At each venture. joint or associate its in investment its on loss impairment an recognise to necessary is it whether determines Group the method, equity the of application After Group. the of those with line in policies accounting the bring to made are adjustments necessary, When Group. the as period reporting same the for prepared are venture joint or associate the of statements financial The 3.4 • • • • • • • • • • • • •

There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period reporting the after months twelve least at for liability the of settlement the defer to right unconditional no is There or period; reporting the after months twelve within settled be to due is It trading; of purpose the for primarily held is It cycle; operating normal the in settled be to expected is It reporting period the after months twelve least at for aliability settle to used or exchanged being from restricted unless equivalent cash or Cash or period; reporting the after months twelve within realised be to Expected trading; of purpose the for primarily Held cycle; operating normal the in consumed or sold be to intended or realised be to Expected its expenses, including its share of any expenses incurred jointly. incurred expenses any of share its including expenses, its and operation; joint by the output the of sale the from revenue the of share its operation; joint the from arising output the of share its of sale the from revenue its jointly; incurred liabilities any of share its including liabilities, its jointly; held assets any of share its including assets, its

CURRENT CLASSIFICATION VERSUS NON-CURRENT SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES POLICIES ACCOUNTING SIGNIFICANT OF SUMMARY INTEREST IN JOINT OPERATIONS INVESTMENT IN ASSOCIATES AND JOINT VENTURES VENTURES JOINT AND ASSOCIATES IN INVESTMENT (CONTINUED) (CONTINUED)

that is over the stay within the hotel, and at a point in time for other goods or services, when they have been delivered or rendered. or delivered have been they when services, or goods other for time in apoint at and hotel, the within stay the over is that rentals, room to relate they when time over fulfilled are obligations These prices. selling stand-alone their of representative are guests the to invoiced prices which for obligations, performance distinct are services) ancillary other and sales beverage and food rentals, room (including rendered services The hotels. the of guests from received revenues the all to corresponds revenue Hotel respect. this in principal as acts Group the as revenue in costs related the of gross included are receipts such other and charges Service recovered. contractually be can cost the which in period the in recognised is tenants to recharged cost from arising Income reliably. measured be can applicable, if costs, and revenue the and Group the to flow will benefits economic the that probable is it extent the to recognised is Revenue agent. or principal as acting is it if determine to criteria specific against arrangements revenue its assesses Group The duty. and taxes excluding and payment of terms defined contractually account into taking receivable, or received consideration the of value fair the at measured is Revenue liability. acontract to rise gives this recognised revenue of amount the exceeds acustomer from received consideration of amount the Where performance. by the earned consideration of amount the on asset acontract-based creates it services or goods promised the by delivering obligation aperformance satisfies Group the When performance obligation is satisfied. the which at time in point the at recognised is revenue met, not are conditions above the of one where obligations performance For • • • met: is criteria following the of one if time, over revenue recognises and obligation aperformance satisfies Group The Step 5 Step 4 Step 3 Step 2 Step 1 Step 15: IFRS in out set as model afive-step on based customers with contracts from revenue recognises Group The • • • • • • • sources: major following the from revenue recognises Group The acustomer. to service or aproduct of control transfers it when revenue recognises Group The parties. third of behalf on collected amounts excludes and acustomer with acontract in entitled be to expects Group the which to consideration the on based measured is Revenue amount. what at and revenue, recognise to when determine to model afive-step apply to required is Group the recognition, revenue of scope the within be to determined contracts For 3.7 HOSPITALITY REVENUE HOSPITALITY RECOVERABLESERVICE FROM AND CHARGES TENANT EXPENSES PROVISION OF SERVICES AND CONTRACTS CONSTRUCTION PROPERTIES, OF SALE FOR CUSTOMERS WITH CONTRACTS FROM REVENUE • • • • • • • • • • The customer simultaneously receives and consumes the benefits provided by the Group’s performance as the Group performs. Group the as performance Group’s by the provided benefits the consumes and receives simultaneously customer The enhanced. or created is asset the as controls customer the that asset an enhances or creates performance Group’s The date. to completed performance for payment to right enforceable an as has Group the and Group the to use alternate an with asset an create not does performance Group’s The Management fee school from income Fee assets cooling from Revenue businesses leisure from Income revenue Hospitality tenant from recoverable expenses and charges Service services of provision and contracts construction properties, of Sale

REVENUE RECOGNITION REVENUE

Recognise revenue when (or as) the Group satisfies a performance obligation. aperformance satisfies Group the (or as) when revenue Recognise performance obligation. each satisfying for exchange in entitled be to expects Group the which to consideration of amount the depicts that amount an in obligation performance each to price transaction the allocates Group the obligation, performance one than more has that acontract For contract: the in obligations performance the to price transaction the Allocate to transfer a good or service to the customer. the to service or agood transfer to Identify performance obligations in the contract: A performance obligation is a promise in a contract with a customer of third parties. third of behalf on collected amounts excluding acustomer, to services or goods promised transferring for exchange in entitled be to expects Group the which to consideration of amount the is price transaction The price: transaction the Determine enforceable rights and obligations and sets out the criteria for every contract that must be met. be must that contract every for criteria the out sets and obligations and rights enforceable creates that parties more or two between agreement an as defined is Acontract acustomer: with contract(s) Identify

Aldar Annual Report 2019 137 138 Financial Statements 3 31For year the 2019 ended December Notes to the Consolidated Financial Statements (continued) less accumulated depreciation and impairment losses. impairment and depreciation accumulated less cost at measured subsequently are They costs. direct initial any and received incentives lease any day, less commencement the before or at made payments lease liability, lease corresponding the of measurement initial the comprise right-of-use assets The • • • whenever: right-of-use asset) related the to adjustment acorresponding makes (and liability lease the remeasures Group The made. payments lease the reflect to amount carrying the by reducing and method) interest the effective (using liability lease the on interest reflect to amount carrying the by increasing measured subsequently is liability lease The position. financial of statement consolidated the in line aseparate as presented is liability lease The • • • • • comprise: liability lease the of measurement the in included payments Lease rate. borrowing incremental its uses Group the determined, readily be cannot rate this If lease. the in implicit rate the by using discounted date, commencement the at paid not are that payments lease the of value present the at measured initially is liability lease The consumed. are assets leased the from benefits economic which in pattern time the of representative more is basis systematic another unless lease the of term the over basis astraight-line on expense operating an as payments lease the recognises Group the leases, these For telephones). and furniture office of items small computers, personal and tablets as (such assets value low of leases and less) or months 12 of term alease with leases as (defined leases short-term for except lessee, the is it which in arrangements lease all to respect with liability lease acorresponding and asset aright-of-use recognises Group The contract. the of inception at alease, contains or is acontract whether assesses Group The 2016. 1January from effect with 16 “Leases” IFRS adopted early had Group The 3.8 fee. connection aone-time charged are customers addition, In rates. agreed at customer by the consumed are these as recognised is water chilled of consumption the of respect in revenue the whereas rate, fixed the at recognised is capacity contracted the of respect in revenue The agreements. the on based water chilled of supply for recognised is Revenue income. deferred as recorded are advance in received Tuition fees tuition. of period the over recognised is income Tuition fee received. is it when income as recognised is fee Registration rendered. are services or sold are goods the when point the at recognised is and marinas, and clubs beach courses, golf at provided services and sold goods from revenue comprises businesses leisure from Income 3.7 THE GROUP AS LESSEE AS GROUP THE ASSETS COOLING FROM REVENUE INCOME FROM SCHOOLS BUSINESSES LEISURE FROM INCOME • • • • • • • •

rate at the effective date of the modification. the of date effective the at rate discount arevised using payments lease revised the by discounting lease modified the of term lease the on based remeasured is liability lease the case which in lease, aseparate as for accounted not is modification lease the and modified is contract A lease used). is rate discount arevised case which in rate, interest afloating in achange to due is change payments lease the (unless rate discount unchanged an using payments lease revised the by discounting remeasured is liability lease the cases which in value, residual aguaranteed under payment expected in achange or rate or index an in changes to due change payments lease The rate. discount a revised using payments lease revised the by discounting remeasured is liability lease the case which in option, apurchase of exercise of assessment the in achange in resulting circumstances in change or event asignificant is there or changed has term lease The lease. the terminate to option an of exercise the reflects term lease the if lease, the terminating for penalties of Payments and options; the exercise to certain reasonably is lessee the if options, purchase of price exercise The guarantees; value residual under lessee by the payable be to expected amount The date; commencement the at rate or index the using measured initially rate, or index an on depend that payments lease Variable receivable; incentives lease any less payments), fixed in-substance (including payments lease Fixed LEASES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES POLICIES ACCOUNTING SIGNIFICANT OF SUMMARY REVENUE RECOGNITION REVENUE (CONTINUED) (CONTINUED)

contract to each the component. under consideration the allocate to 15 IFRS applies Group the components, non-lease and lease both includes acontract When investment in outstanding respect of the leases. net Group’s the on return of rate periodic aconstant reflect to as so periods accounting to allocated is income lease Finance leases. the in investment net Group’s the of amount the at receivables as recognised are lease finance under leases from Amounts term. lease the over basis astraight-line on recognised and asset leased the of amount carrying the to added are lease operating an arranging and negotiating in incurred costs direct Initial lease. relevant the of term the over basis astraight-line on recognised is leases operating from income Rental lease. head the from arising right-of-use asset the to by reference lease operating or finance as classified is lease sub- The contracts. separate two as sub-lease the and lease head the for accounts it lessor, intermediate an is Group the When leases. operating as classified are leases other All lease. finance as classified is contract the lessee, the to ownership of and rewards risks the all substantially transfers lease the of terms the Whenever leases. operating or finance as classified are alessor is Group the which for Leases properties. investment its of some to respect with alessor as arrangements lease into enters Group The consumed. are assets leased the from benefits economic which in pattern time the of representative more is basis systematic another unless lease the of terms the over basis line astraight on expense operating an as payments lease the recognise Group the leases, these For values. low of leases and less) or months 12 of term alease with leased as (defined leases for except lessor, the is it which in arrangements leases all to respect with contract lease the under liability lease acorresponding and aright-of-use asset recognises Group the date, commencement At the • • that: circumstances in change asignificant or event asignificant either of occurrence the upon option, atermination exercise to not or option, extension an exercise to certain reasonably is it whether reassesses Group the term, lease the of determination For policies. Group’s the with accordance in for accounted are components non-lease The not readily available, the Group estimates the stand-alone price, maximising the use of information. observable supplier, would charge an entity for asimilar or that lessor, component, the or a price similar the of component, separately. basis the on If price stand-alone an observable is determined is components non-lease and lease of price stand-alone relative The and the aggregate price stand-alone of the non-lease components. component lease the of price stand-alone relative the of basis the on component lease each to contract the in consideration the allocates Group the components, non-lease or lease additional more or one and component alease contains that acontract For loss. or profit in expenses” “Other line the in included are and occurs payments those triggers that condition or event the which in period the in expense an as recognised are payments related The right-of-use asset. the and liability lease the measurement the in included not are rate or index an on depend not do that rents Variable policy. Equipment’ and Plant ‘Property, the in described as loss impairment identified any for accounts and impaired is equipment and plant property, with associated aright-of-use asset whether determine to 36 IAS applies Group The position. financial of statement consolidated the in asset underlying the with along presented are right-of-use assets The lease. the of date commencement the at starts depreciation The asset. underlying the of life useful the over depreciated is right-of-use asset related the option, apurchase exercise to expects Group the that reflects right-of-use asset the of cost the or asset underlying the of ownership transfers alease If asset. underlying the of life useful and term lease of period shorter the over depreciated are Right-of-use assets lease. the of term the over amortised is and impairment and depreciation of net cost at carried is asset use of right equipment, and plant property, of definition the meet that assets For property. investment of THE GROUP AS LESSOR AS GROUP THE • • term, or not to exercise an option previously included in its determination of the lease term. lease the of determination its in included previously option an exercise to not or term, lease the of determination its in included previously not option an exercise to certain reasonably is Group the whether affects and Group; the of control the within is

Aldar Annual Report 2019 139 140 Financial Statements 3.12 derecognised. is asset the when statement income consolidated the in included is asset) the of amount carrying the and proceeds disposal net the between difference the as (calculated asset the of derecognition on arising loss or gain Any disposal. or use its from expected are benefits economic future no when or control) obtains recipient the date the (i.e., at disposal upon derecognised is equipment and plant property, of item An asset. underlying the of life useful the and term lease of period shorter the over depreciated are assets Right-of-used estimated its recoverable than greater amount. is amount carrying asset’s the if amount recoverable its to immediately down written is amount carrying asset’s An basis. aprospective on for accounted estimate in changes any of effect the with end, year each at reviewed are method depreciation and values residual lives, useful estimated The Freehold land is not depreciated. Leasehold improvements Motor vehicles Computers equipment Office Furniture fixtures and Labour camps Plants and machinery Buildings accounted in accordance with the Group’s policies. Group’s the with accordance in accounted is and category equipment and plant property, appropriate the to transferred is progress in work capital the use, intended for ready are assets the When policy. accounting Group’s the with accordance in capitalised costs borrowing assets, costs, qualifying for and staff related including property the of acquisition the to attributable costs direct all includes Cost loss. impairment any recognised less cost, at carried are purposes, administrative or supply production, for construction of course the in assets or Properties 3 31For year the 2019 ended December Notes to the Consolidated Financial Statements (continued) 3.10 retranslated. not are currency aforeign in cost historical of terms in measured are that items Non-monetary determined. was value fair the when date the at prevailing rates the at retranslated are currencies foreign in denominated are that value fair at carried items Non-monetary date. that at prevailing rates the at retranslated are currencies foreign in denominated items monetary period, reporting each of end At the transactions. the of dates the at prevailing exchange of rates the at recorded are currencies) (foreign AED than other currencies in Transactions 3.9 useful lives as follows: as lives useful estimated their over values residual their to cost assets’ the allocate to method straight-line the using calculated is Depreciation incurred. are they which in period the in statement income consolidated the to charged are expenses maintenance and repairs other All reliably. measured be can item the of cost the and Group the to flow will item the with associated benefits economic future that probable is it when only appropriate, as asset, aseparate as recognised or amount carrying asset’s the in included are costs Subsequent asset. the of acquisition the to attributable directly is that expenditure includes cost Historical losses. impairment accumulated and depreciation accumulated less cost historical at stated are equipment and plant Property, 3.11 incurred. are they which in period the in loss or profit in recognised are costs borrowing other All sale. or use intended their for ready substantially are assets the as time such until assets, those of cost the to added are sale, or use intended their for ready get to time of period asubstantial take that necessarily assets are which assets, qualifying of production or construction acquisition, the to attributable directly costs Borrowing

CAPITAL WORK IN PROGRESS IN WORK CAPITAL SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES POLICIES ACCOUNTING SIGNIFICANT OF SUMMARY FOREIGN CURRENCIES PROPERTY, PLANTAND EQUIPMENT COSTS BORROWING (CONTINUED) 20 –30 20 15 –20 15 5 –10

3 –4 3 –5 Years

4 3 5

to five years. five to three of aperiod normally is which lives useful estimated their over basis astraight-line on amortised are costs These software. specific the use to bring and acquire to incurred costs the of basis the on capitalised are licences software computer Acquired statement. income consolidated the in included is asset) the of amount carrying the and proceeds disposal net the between difference the as (calculated asset the of derecognition upon arising loss or gain Any disposal. or use its from expected are benefits economic future no when or control) obtains recipient the date the (i.e., at disposal upon derecognised is asset intangible An assets. intangible the of function the with consistent is that category expense the in statement income the in recognised is lives finite with assets intangible on expense amortisation The estimates. accounting in changes as treated are and appropriate, as method, or period amortisation the modify to considered are asset the in embodied benefits economic future of consumption of pattern expected the or life useful expected the in Changes period. reporting each of end the at least at reviewed are life afinite useful with asset intangible an for method amortisation the and period amortisation The impaired. be may asset intangible the that indication an is there whenever impairment for assessed and life economic useful the over basis astraight-line on charged is Amortisation losses. impairment accumulated and amortisation accumulated any less cost at carried are assets intangible recognition, initial Following goodwill. from separately recognised are and acquisition of date the at value fair their is combination abusiness in acquired assets intangible of cost The cost. at recognition initial on measured are separately acquired assets Intangible 3.17 sale. the make to necessary costs all estimated less land the of price selling estimated the represents value realisable Net land. the of works infrastructure the to attributable costs direct all and acquired land of cost the include Costs value. realisable net and cost of lower the at stated is sale for held Land 3.16 incurred. be to costs marketing and selling estimated all less price selling estimated the represents value realisable Net and comprises construction/ acquisition costs and other charges incurred in bringing inventory to method its present cost location average and condition. weighted the using calculated is Cost value. realisable net and cost of lower the at stated are Inventories Inventories comprise completed properties held for sale in the ordinary course of business and other operating inventories. 3.15 expenses. selling variable applicable and complete to costs estimated less business the of course ordinary the in price selling estimated the is value realisable Net policy. accounting Group’s the with accordance in capitalised costs borrowing assets, costs, staff qualifying for and direct including property the of construction and design the to attributable costs direct all comprises Cost value. realisable net or cost of lower the at stated is and sale for principally developed being property of consists progress in work Development 3.14 statement in the period of income derecognition. consolidated the in recognised is asset the of amount carrying the and proceeds disposal net the between difference The disposal. the from expected are benefits economic future no and use from withdrawn permanently are they when or control) obtains recipient the date the (i.e., at of disposed have been they when either derecognised are properties Investment properties. Upon completion of construction or development, is a transferred property from properties under development to completed use. in change of date the to up equipment and plant property, under stated policy the with accordance in property such for accounts Group the property, investment an becomes property occupied owner- If use. in change of date the at value fair the is accounting subsequent for cost deemed the property, owner-occupied to property investment from atransfer For use. in achange is there when only property investment (or to from) made are Transfers Committee. Standards Valuation International by the recommended models Fair values are determined on based annual valuations by performed accredited arise. independent external they valuers applying valuation which in period the in statement income consolidated the in included are properties investment of value fair the in changes from arising losses or Gains date. reporting the at conditions market reflects which value, fair at measured are properties investment recognition, initial to Subsequent costs. staff related including construction and design the to attributable costs direct all development under properties for and costs transaction including cost at initially measured are properties Investment property. investment as use future for developed held to earn rentals and/ or for appreciation capital and properties under development are properties being constructed or Investment properties comprise completed properties and properties under development. Completed properties are properties 3.13 COMPUTER SOFTWARE

INVENTORIES

INTANGIBLE ASSETS LAND HELD FOR SALE FOR HELD LAND DEVELOPMENT WORK IN PROGRESS IN WORK DEVELOPMENT PROPERTIES INVESTMENT

Aldar Annual Report 2019 141 142 Financial Statements 3 31For year the 2019 ended December Notes to the Consolidated Financial Statements (continued) 3.19 periods. future in reversed be cannot goodwill to relating losses Impairment recognised. is loss impairment an amount, carrying its than less is CGU the of amount recoverable the When relates. goodwill the CGUs) of which to (or CGU group each of amount recoverable the by assessing goodwill for determined is Impairment impaired. be may value carrying the that indicate circumstances when and annually impairment for tested is Goodwill years. prior in asset the for recognised been has which loss impairment the eliminates it that extent the to loss or profit in immediately recognised is loss impairment an of A reversal years. prior in unit) (or cash-generating asset the for recognised been loss impairment no had determined have been would that amount carrying the exceed not does amount carrying increased the that so but amount, recoverable its of estimate revised the to increased is unit) (or cash-generating asset the of amount carrying the reverses, subsequently loss impairment an Where loss. or profit in immediately recognised is loss impairment An amount. recoverable its to reduced is unit) (or cash-generating asset the of amount carrying the amount, carrying its than less be to estimated is unit) (or cash-generating asset an of amount recoverable the If allocated. are assets individual the which to CGUs Group’s the of each for separately prepared are which calculations, forecast and budgets detailed on calculation impairment its bases Group The used. is model valuation appropriate an identified, be can transactions such no If account. into taken are transactions market recent disposal, of costs less value fair determining In adjusted. been have not flows cash future of estimates the which for asset the to specific risks the and money of value time the of assessments market current reflects that rate discount apre-tax using value present their to discounted are flows cash future estimated the use, in value assessing In use. in value and disposal of costs less value fair of higher the is amount Recoverable impaired. be may asset the that period areporting of end the at indication an is there whenever and annually least at impairment for tested are life useful indefinite an with assets Intangible identified. be can basis allocation consistent and for areasonable which units cash-generating of group smallest the to allocated are they otherwise or units, cash-generating individual to allocated also are assets corporate identified, be can allocation of basis consistent and areasonable When belongs. asset the which to unit cash-generating the of amount recoverable the estimates Group the assets, other from independent are that flows cash generate not does asset the any). Where (if loss impairment the of extent the determine to estimated is asset the of amount recoverable the exists, indication such any If loss. impairment an have suffered assets those that indication any is there whether determine to assets intangible and equipment and plant property, its of amounts carrying the reviews Group the date, reporting At each 3.18 years. 29 to 22 of range the in is which lives, useful estimated their over cost the allocate to method straight-line the using calculated is 5). 2018 (note Amortisation 31 December ended year the represent long term non-cancellable contracts with customers for mainly the supply and of district cooling services which impairment were and acquired during amortisation accumulated less cost at carried are and life useful have afinite contracts Customer the increase in the provision due to the passage of time is recognised as a finance cost. cost. a finance as recognised is time of passage the to due provision the in increase the used, is discounting When liability. the to specific risks the appropriate, when reflects, that rate pre-tax acurrent using discounted are provisions material, is money of value time the of effect the If reimbursement. any of net statement income the in presented is aprovision to relating expense The certain. virtually is reimbursement the when only but asset, aseparate as recognised is reimbursement the contract, insurance an under example, for reimbursed, be to aprovision of all or some expects Group the When obligation. the surrounding uncertainties and risks the account into taking date, reporting the at obligation present the settle to required consideration the of estimate best the is aprovision as recognised amount The obligation. the of amount the of made be can estimate areliable and obligation the settle to required be will benefits economic embodying resources of outflow an that probable is it event, apast of aresult as constructive) or (legal obligation apresent has Group the when recognised are Provisions 3.20 policy. management cash Group’s the of part integral an considered are they as overdrafts bank outstanding of net value, in changes of risk insignificant an to subject are which less, or months three of amaturity with deposits short-term and hand on and banks at cash comprise equivalents cash and cash flows, cash of statement consolidated of purpose the For 3.17 CUSTOMER CONTRACTSCUSTOMER

IMPAIRMENT OF NON-FINANCIAL ASSETS INTANGIBLE ASSETS POLICIES ACCOUNTING SIGNIFICANT OF SUMMARY PROVISIONS CASH AND CASH EQUIVALENTS (CONTINUED) (CONTINUED)

3.23 payments. share-based equity-settled have any not does Group The statement. income consolidated the in recognised are held, investments in changes any of net value fair in changes with date, settlement the including and to up date reporting each at and date grant at initially measured is which value fair the at acquired, services the for recognised is aliability employees, to payments share-based cash-settled For 3.22 service. of period employees' the during loss or profit to charged are contributions such Security; Social and Pension for (2) no. 2000 of Law UAE Federal the with accordance in Authority Security Social and Pension UAE General the to employees UAE of national respect in made are contributions Pension liability. anon-current as disclosed is benefits service of end to relating provision the while liability, acurrent as disclosed is leave annual to relating accrual The date. reporting the to up service of period their Law, for Labour UAE with accordance in payable benefits the to equal least at is which policy, Group’s the with accordance in employees to due benefits service of end of amount full the for made also is Provision date. reporting the to up employees by eligible rendered services of aresult as passage leave and leave annual to entitlement employees’ for liability estimated for made is accrual An and the Group will comply with any attached conditions, where applicable. where conditions, attached any with comply will Group the and received be will land the that assurance reasonable is there where value nominal at recognised is Government by the granted Land rates. interest market prevailing on based loan the of value fair the and received proceeds between difference the as measured grant, agovernment as treated is interest of rate abelow-market at loan agovernment of benefit The receivable. become they which in period the in statement income consolidated the in recognised are costs related future no with group the to support financial immediate giving of purpose the for or incurred already expenses for compensation as receivable are that grants Government assets. related the of lives useful the over basis rational and asystematic on government grant deferred in the as consolidated statement of recognised are financial position and transferred to the assets consolidated income statement non-monetary acquire otherwise or construct purchase, should Group the that is condition primary whose grants government Specifically, compensate. to intended are grants the which for costs related the expenses as recognises Group the which in periods the over basis asystematic on statement income in recognised are grants Government received. be will grants the that and them to attaching conditions the with comply will Group the that assurance reasonable is there until recognised not are grants Government 3.21 5. IFRS of principles the with accordance in recognised income of amount cumulative less initially recognised amount the 37 and IAS with accordance in recognised be would that amount the of higher the at remeasured are liabilities contingent such periods, reporting subsequent of end At the date. acquisition the at value fair at measured initially are combination abusiness in acquired liabilities Contingent it. fulfil to failure from arising penalties or compensation any and it fulfilling of cost the of lower the is which contract, the from exiting of cost net least the reflect acontract under costs unavoidable The it. under received be to expected benefits economic the exceed contract the under obligations the meeting of contract) the has it because avoid cannot Group the that costs (i.e., the costs unavoidable the which under acontract is contract onerous An contract. that to dedicated assets on occurred has that loss impairment any recognises Group the established, is contract onerous an for provision aseparate However, before a provision. as measured and recognised are contracts onerous under obligations present the onerous, is that acontract has Group the If CONTINGENT LIABILITIES ACQUIRED IN A BUSINESS COMBINATION ONEROUS CONTRACTS

SHARE-BASEDPAYMENTS PROVISION FOR EMPLOYEES’ BENEFITS GOVERNMENT GRANTS

Aldar Annual Report 2019 143 144 Financial Statements 3 31For year the 2019 ended December Notes to the Consolidated Financial Statements (continued) distributed is added to the carrying amount of the sukuk. sukuk. the of amount carrying the to added is distributed profit the with difference any and instruments sukuk similar for issue, of time the at rate, profit market prevailing the applying by calculated is sukuk the to attributable profit The method. rate profit effective the using cost amortised at stated are sukuk The This generally category applies to interest-bearing statement. income loans and borrowings. consolidated the in costs finance as included is amortisation EIR The EIR. the of part integral an are that costs or fees and acquisition on premium or discount any account into by taking calculated is cost Amortised process. amortisation EIR the through as well as derecognised are liabilities the when loss or profit in recognised are losses and Gains method. (EIR) rate interest effective the using cost amortised at measured subsequently are borrowings and loans interest-bearing recognition, initial After • • either: because information, relevant more in results so doing when or permitted, when loss or profit through value fair at measured as liability afinancial designate irrevocably may Group the recognition, At initial • • • • for: except cost, amortised at measured subsequently and classified are liabilities financial All value in other comprehensive fair in income. changes subsequent present to loss or profit through value fair at measured be otherwise would that instruments equity in investments particular for recognition initial at election irrevocable an make may Group However, the income. comprehensive other through value fair at or cost amortised at measured is it unless loss, or profit through value fair at measured is asset A financial • • met: are conditions following the of both if income, comprehensive other through value fair at measured is asset A financial • • met: are conditions following the both if cost, amortised at measured is asset A financial assets. financial the of characteristics flow cash contractual the and assets financial the managing for model business Group’s the of basis the on value fair or cost amortised at measured subsequently be to required 9are IFRS of scope the under assets financial All of another entity. instrument equity or liability afinancial and entity one of asset afinancial to rise gives that contract any is instrument A financial 3.24 SUKUK LOANS AND BORROWINGS LIABILITIES FINANCIAL ASSETS FINANCIAL • • • • • • • • • •

internally on that basis to the entity's key management personnel. key management entity's the to basis that on internally provided is Group the about information and strategy, investment or management risk adocumented with accordance in value afair basis, on evaluated is performance its and managed is liabilities financial and assets financial or liabilities financial of a group different bases; or on them on losses and gains the recognising or liabilities or assets measuring from arise otherwise would that mismatch') 'an accounting as to referred (sometimes inconsistency recognition or ameasurement reduces significantly or eliminates it rate interest abelow-market at aloan provide to commitments financial guarantee contracts involvement approach applies continuing the when or derecognition for qualify not does asset afinancial of atransfer when arise that liabilities financial value fair at measured subsequently are liabilities, are that derivatives including liabilities, Such loss. or profit through value fair at liabilities financial interest on the principal amount and outstanding. principal of payments solely are that flows cash to dates specified on rise give asset financial the of terms contractual the selling financial assets; and and flows cash contractual collecting by both achieved is objective whose model abusiness within held is asset financial the interest on the principal amount and outstanding. principal of payments solely are that flows cash to dates specified on rise give asset financial the of terms contractual the flows; cash and contractual collect to order in assets financial hold to is objective whose model abusiness within held is asset financial the SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES POLICIES ACCOUNTING SIGNIFICANT OF SUMMARY FINANCIAL INSTRUMENTS FINANCIAL (CONTINUED)

Hedge accounting requirements disclosed below applies to financial assets designated as hedged item. hedged as designated assets financial to applies below disclosed requirements accounting Hedge disclosedas below. income comprehensive other through value fair at and cost amortised at measured assets financial the on assessed is Impairment • • • at: classification its with accordance in asset afinancial measure shall entity an recognition, initial After liability. financial or asset issue or financial the of acquisition the to attributable directly are that costs transaction loss, or profit through value fair at not liability asset financial or afinancial of case the in minus, or plus value fair at measured are liabilities financial and assets financial recognition, At initial liability. shall financial any entity An reclassify not assets. financial affected all reclassifies it assets, financial managing for model business its changes Group the Where loss. or profit through value fair at as contract hybrid entire the designate shall it period, reporting financial asubsequent of end the at or acquisition at either separately derivative embedded the measure to unable is but host, its from derivative embedded an separate to required is it Where • • unless: loss or profit through value fair at as contract hybrid entire the designate may Group the 9, IFRS of scope the within asset afinancial not is host the and derivatives embedded more or one contains acontract Where • • • if: only if, and aderivative as for accounted and host the from separated is derivative embedded the 9, IFRS of scope the within asset afinancial not is that ahost contains contract ahybrid Where contract. hybrid entire the to applies assets financial the to relating impairment including measurement, and classification to relation in policy the 9, IFRS of scope the under asset afinancial is that ahost contains contract ahybrid Where SUBSEQUENT MEASUREMENT OF FINANCIAL ASSETS FINANCIAL OF MEASUREMENT SUBSEQUENT INITIAL MEASUREMENT LIABILITIES AND ASSETS FINANCIAL OF MEASUREMENT RECLASSIFICATION OF ASSETS FINANCIAL AND LIABILITIES FINANCIAL DERIVATIVES EMBEDDED • • • • • • • • fair value through profit or loss. or profit through value fair fair value through other comprehensive income less impairment; or impairment; less cost amortised amortised cost. its approximately for loan the prepay to holder the permits that aloan in embedded option aprepayment as such prohibited, is derivatives embedded the of separation that considered first is instrument hybrid asimilar when analysis no or little with clear is it or contract; by the required be would otherwise that flows cash the modify significantly not do derivatives embedded the separated). not is loss or profit through value fair at liability afinancial in embedded is that (i.e. aderivative loss or profit in recognised value fair in changes with value fair at measured not is contract hybrid the and aderivative; of definition the meet would derivative embedded the as terms same the with instrument a separate host; the of risks the economic characteristics and risks of the embedded derivative are not closely related to the economic characteristics and

Aldar Annual Report 2019 145 146 Financial Statements 3 31For year the 2019 ended December Notes to the Consolidated Financial Statements (continued) • • information reasonablehas and supportable to demonstrate that Group a the more lagging default unless criterion is more appropriate: collection, of doubtful highly are criteria following the of either meet that receivables that indicates experience historical as purposes management risk credit internal for default of event an constituting as following the considers Group The due. past becomes amount the before risk credit in increase significant identifying of capable are criteria the that ensure to appropriate as them revises and credit in risk increase asignificant been has there whether identify to used criteria the of effectiveness the monitors regularly Group The peras globally understood definition. grade’ ‘investment of rating credit external or internal an has it when risk credit have low to asset afinancial considers Group The • • • if: risk credit have low to determined is instrument Afinancial date. reporting the at risk credit have low to determined is instrument financial the if recognition initial since significantly increased not has instrument afinancial on risk credit the that assumes Group the foregoing, the Despite due, unless past the days Group information 30 reasonable has and supportable than that more demonstrates are otherwise. payments contractual when recognition initial since significantly increased has asset afinancial on risk credit the that presumes Group the assessment, above the of outcome the of Irrespective effort. or cost undue without available qualitative and information that is reasonable including quantitative and supportable, both historical experience and forward-looking information considers that Group is the assessment, this making In recognition. initial of date the at as instrument financial the on occurring adefault of risk the with period reporting the of end the at as instrument financial the on occurring adefault of risk compares the Group the recognition, initial since significantly increased has instrument afinancial on risk credit the whether assessing In occurring. default actual an or period reporting the of end the at credit-impaired being asset afinancial of evidence on of instead recognition initial since occurring adefault of risk or likelihood the in increases significant on based is recognised be ECL should lifetime whether of assessment The ECL. months 12 to equal amount an at instrument financial that for allowance loss the measures Group the recognition, initial since significantly increased not has instrument financial the on risk credit the hand, other If, the on recognition. initial since risk credit in increase asignificant been has there ECL when lifetime recognises Group the instruments, financial other all For ECL. lifetime to equal amount an at allowance loss the measures Group the approach, simplified the Under assets. contract and receivables lease receivables, trade on impairment the measuring for approach simplified the adopted has Group The • • • • • include: 9, IFRS of requirements impairment to subject assets financial The income. comprehensive other through value fair at measured and classified instruments equity and loss or profit through value fair as measured are that those than other assets, financial of classes all on recognised is losses credit expected for allowance A loss recognised. are losses credit before have occurred to event acredit for necessary not is It assets. financial the of recognition initial since risk credit in changes reflect to period reporting each of end the at losses credit expected those in changes and losses credit expected for accounts Group the model, loss credit expected the Under model. loss credit incurred an to opposed (“ECL”) as Loss model Credit Expected the applies Group the assets, financial of impairment the to relation In 3.24 IMPAIRMENT OF ASSETS FINANCIAL • • • • • • • • • • including the Group, in full. in Group, the including creditors, its pay to unlikely is debtor the that indicates sources external from obtained or internally developed information or counterparty; by the covenants financial of abreach is there when obligations. flow cash contractual its fulfil to borrower the of ability the reduce necessarily, not may, will term but longer the in conditions business and economic in changes adverse and term; near the in obligations flow cash contractual its meet to capacity astrong has borrower the default; of risk alow has instrument financial the loan commitments and financial guarantee contracts. contract assets; and receivables;lease trade receivables; debt investments subsequently measured at cost amortised or at fair value through other comprehensive income; SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES POLICIES ACCOUNTING SIGNIFICANT OF SUMMARY FINANCIAL INSTRUMENTS FINANCIAL (CONTINUED) (CONTINUED)

to apply hedge accounting and the risk management objective and strategy the for hedge. undertaking wishes it which to relationship hedge the documents and designates formally Group the relationship, ahedge of inception At the • • • as: classified are hedges accounting, hedge of purpose the For negative. is value fair the when liabilities financial as and positive is value fair the when assets financial as carried are Derivatives value. fair at remeasured subsequently are and into entered is contract aderivative which on date the on value fair at recognised initially are instruments financial derivative Such respectively. risks, rate interest its hedge to swaps, rate interest as such instruments, financial derivative uses Group The to realise the and assets settle the liabilities simultaneously. basis, anet on settle to intention an is there and amounts recognised the offset to right legal enforceable acurrently is position there if financial of statement consolidated the in reported is amount net the and offset are liabilities financial and assets Financial repay. to required be could Group the that consideration of amount maximum the and asset the of amount carrying original the of lower the at measured is asset transferred the over aguarantee of form the takes that involvement Continuing has Group the that obligations and rights the reflects that abasis on measured are liability associated the and asset transferred The liability. associated an recognises also Group the case, that In involvement. continuing its of extent the to asset transferred the recognise to continues Group the asset, the of control transferred nor asset, the of rewards and risks the of all substantially retained nor transferred neither has it When ownership. of rewards and risks the retained has it extent, what to if, and evaluates it arrangement, apass-through into entered has or asset an from flows cash receive to rights its transferred has Group the When • • when: position) financial of statement consolidated Group’s the from (i.e., removed derecognised primarily is assets) financial similar of agroup of part or asset afinancial of apart (or, applicable, where asset A financial credit risk characteristics. similar share to continue group each of constituents the ensure to by management reviewed regularly is grouping The loss. credit expected the of assessment the for grouped are instruments financial the available, be yet not may level instrument individual the at risk credit in increases significant of evidence where cases for cater to basis acollective on measured ECL is lifetime Where date. reporting the at amount carrying gross assets’ by the represented is this assets, financial for default at exposure the for As above. described as information by forward-looking adjusted data historical on based is default given loss and default of probability the of assessment The default. at exposure the and adefault) is there if loss the of magnitude (i.e. the default given loss default, of probability the of afunction is losses credit expected of measurement The HEDGING ARRANGEMENTS HEDGING OFOFFSETTING INSTRUMENTS FINANCIAL DERECOGNITION • • • • • Hedges of a net investment in a foreign operation. operation. aforeign in investment anet of Hedges commitment. firm unrecognised an in risk currency foreign the or transaction forecast probable ahighly or liability or asset arecognised with associated risk aparticular to attributable either is that flows cash in variability to exposure the hedging when hedges flow Cash commitment.firm unrecognised an or liability or asset arecognised of value fair the in changes to exposure the hedging when hedges value Fair asset. the of control transferred has but asset, the of rewards and risks the all substantially retained nor transferred neither has Group (b) or the asset, the of rewards and risks the all substantially transferred has Group (a) the either and arrangement a‘pass-through’ under party athird to delay material without full in flows cash received the pay to obligation an assumed has or asset the from flows cash receive to rights its transferred has Group The or have expired; asset the from flows cash receive to rights The retained. retained.

Aldar Annual Report 2019 147 148 Financial Statements 3 31For year the 2019 ended December Notes to the Consolidated Financial Statements (continued) 4 above. described as transaction underlying the of nature the on depending for accounted be must OCI accumulated in remaining amount any occurs, flow cash hedged the once discontinuation, After adjustment. a reclassification as loss or profit to reclassified immediately be will amount the occur. to Otherwise, expected still are flows cash future hedged the if OCI accumulated in remain must OCI in accumulated been has that amount the discontinued, is accounting hedge flow cash If item. hedged the of value fair in change cumulative the and instrument hedging the on loss or gain cumulative the of lower the to adjusted is reserve hedge flow cash The statement. income consolidated the in immediately recognised is portion ineffective any while reserve, hedge flow cash the in OCI in recognised is instrument hedging the on loss or gain the of portion effective The loss. or profit in recognised loss or gain acorresponding with liability or asset an as recognised is risk hedged the to attributable commitment firm the of value fair the in change cumulative subsequent the item, ahedged as designated is commitment firm unrecognised an When loss. or profit in immediately recognised is fair value unamortised the derecognised, is item hedged the If hedged. being risk the to attributable value fair its in changes for adjusted be to ceases item hedged the when than later no and exists adjustment an as soon as begin may amortisation EIR The method. EIR the using hedge the of term remaining the over loss or profit through amortised is value carrying to adjustment any cost, amortised at carried items to relating hedges value fair For expense. other as statement income consolidated the in recognised also is and item hedged the of value carrying the of part as recorded is hedged risk the to attributable item hedged the of value fair the in change The expense. other as statement income consolidated the in recognised is instrument ahedging of value fair the in change The 3.24 as determinedas by management. property of usage intended the particular, in and 40, IAS 16 and IAS 2, IAS in out set as properties of classification the for guidance plant and equipment held for and property sale. In making its judgement, management considered the detailed criteria and related criteria so that it can exercise develops Group that The judgement consistently sale. for in held accordance with the definitions of and/or property investment property, equipment property, and plant property, property, investment an as qualifies a property In the process of management properties, classifying made has various judgements. Judgement is needed to determine whether borrowing. such against security and term the for adjusted borrowing of cost historical and existing its to reference with rate borrowing incremental its determines Group The environment. economic similar in right-of-use assets the to value asimilar of asset an obtain to necessary funds the security, asimilar with and term, asimilar over borrow to pay have to would Group the that interest of rate the is rate borrowing Incremental rate. borrowing incremental its uses Group the determined, readily be cannot rate that If determined. readily be can rate that if lease, the in implicit rate interest the using discounted are payments lease The date. commencement the at payments lease unpaid the of value present the at liability lease the measures alessee, as Group, The statements. financial consolidated the in recognised amounts the on effect significant most have the that and policies accounting Group’s the applying of process the in have made management that separately), below presented are (which estimations involving those from apart judgments, critical the are following The periods. future and current both affects revision the if periods future and revision the of period the in or period that only affects revision the if revised is estimate the which in period the in recognised are estimates accounting to Revisions basis. ongoing an on reviewed are assumptions underlying and estimates The estimates. these from differ may results Actual relevant. be to considered are that factors other and experience historical on based are assumptions associated and estimates The sources. other from apparent readily not are that liabilities and assets of amounts carrying the about assumptions and estimates judgments, make to required is management 3, note in described are which policies, accounting Group’s the applying In CASH FLOW HEDGES FLOW CASH FAIR VALUE HEDGES CLASSIFICATION OF PROPERTIES LIABILITY LEASE OF MEASUREMENT INITIAL FOR USED RATE DISCOUNT POLICIES ACCOUNTING APPLYING IN JUDGMENT CRITICAL

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES POLICIES ACCOUNTING SIGNIFICANT OF SUMMARY FINANCIAL INSTRUMENTS FINANCIAL (CONTINUED) CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY ESTIMATION OF SOURCES KEY AND JUDGMENTS ACCOUNTING CRITICAL (CONTINUED)

a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are discussed below: financial next the within liabilities and assets of amounts carrying the to adjustment amaterial causing of risk a significant have that date, reporting the at uncertainty estimation of key sources other and future, the concerning key assumptions The outputs. produce to ability have the inputs, to applied when which processes integrated acquired has it whether determines Group the that requires 3which IFRS under business of definition the applies Group the assessment, this making In acquisition. asset an as for accounted is acquisition the abusiness, constitute not does acquisition an such Where businesses. more or one of control acquired has it whether and abusiness constitutes assumed liabilities and acquired assets the whether assess to judgement significant make to needs Group the Group, by the made acquisitions For customer. the to unit the of over handing the in impediments no are there and received substantially been has unit the for consideration the when generally is this assets estate real sell to contracts of case the In customer. the by consumed and received is provided being services the of benefits or customer the to transferred is assets the over control when recognised is revenue time, in apoint at satisfied are obligations performance that determines Group the where cases In amounts. consideration possible of arange in amount likely most single the to by reference determined is price transaction the whereby 15 IFRS in method amount” “most-likely the uses Group the consideration, variable of impact the determining In contract. the in consideration non-cash any and component financing significant any of existence the penalties, or discounts to due contract, the in consideration variable any of impact the assesses Group the judgement such making In customers. with contracts its of each of respect in price transaction the determine to required is Group The is satisfied. contract the under Group the of obligation performance the when determine to customers with contract each assesses Group the time, of apoint at recognised is revenue Where time. in apoint at recognised is revenue met, not are criteria above the Where • • • circumstances: following the in time over revenue recognises Group the regulations, and laws relevant of provisions the and customers with into entered contracts the on based that assessed has Group The revenue. recognising for method appropriate the determine to order in time in apoint at or time over satisfied are obligations performance whether determine to customers with contracts its of each assess to required is Group The • • as: substance commercial had and terms commercial on undertaken was transaction the that assessed Group the Equipment, and Plant 16 Property, IAS of requirements the with line In priorities. strategic parties’ the with line in resources land developable exchanges that a transaction in Group the with land of plots exchange to resolved Dhabi Abu of Government the of Council Executive year, the the during 32, Note in disclosed As KEY SOURCES OF ESTIMATION UNCERTAINTY ESTIMATION OF SOURCES KEY ASSET AN OR ABUSINESS IS ACQUISITION AN WHETHER IDENTIFYING CUSTOMERS WITH CONTRACTS IN CONTROL OF TRANSFER PRICES TRANSACTION OF DETERMINATION SATISFACTION OF PERFORMANCE OBLIGATIONS CUSTOMERS WITH CONTRACTS TO RELATION IN JUDGEMENTS EXCHANGE OF PROPERTIES • • • • • simultaneously receives and consumes the benefits provided by the Group’s performance as the Group performs. Group the as performance Group’s by the provided benefits the consumes and receives simultaneously where contracts are entered into to provide management services (property and facility management), the customer and enhanced; or created is asset the as controls customer the that asset an enhances or creates performance Group’s the customer), the for asset an (to construct construction for into entered are contracts where date; to completed performance for payment to right enforceable an has and Group the to use alternative an with asset an create not does Group the customers), to properties of (sale development for into entered are contracts where Island. Saadiyat particular in key destinations, their on focus landinfrastructure-enabled with high potential for development in the coming years, the as Group consolidate received development Group The future. foreseeable the in strategy development Group’s the of part not were Group by the given plots The and Island; Saadiyat on projects various the of developer master the is Group the that considering especially Yas Island, and Island Saadiyat of key destinations develop to priorities strategic Group’s the with line in are Group by the obtained land of plots Also, Group. by the received being properties than characteristics flow cash have different and locations different at are Group by the transferred being properties The

Aldar Annual Report 2019 149 150 Financial Statements unforeseen circumstances arising or during construction. build of style planning, site in changes to due estimated incorrectly be also may and conditions market with vary can costs judgement and uncertainty. Forecast selling prices have inherent due to of uncertainty changes in market element an conditions. Forecast build contain which of all etc., rates discount and meter) square (per rates sales recoveries, cost costs, build consent), planning (including planning site prices, selling forecast as such information property-specific account into take that techniques and methodologies valuation various using valuations external on based is sale for held land of value realisable net of determination The available. where transactions, market recent of light the in and advice external suitable taken having Group by the determined is NRV properties, certain For period. reporting the of end the at existing conditions market and plans development received, advances and completion of costs prices, sales to reference with assessed is NRV (NRV). value realisable net or cost of lower the at stated are progress in work development under classified properties and sale for held land Inventory, rates Capitalisation 4 31For year the 2019 ended December Notes to the Consolidated Financial Statements (continued) • • • include: mainly estimates these customers, the to obligation contractual meeting of cost the to addition In obligation. aperformance of satisfaction the to inputs or efforts the estimates Group the method, input the applying In earned. actually revenue of reference best the provides obligation, performance of satisfaction the to efforts Group’s the of basis the on recognition revenue requires which method, input the of use the that considers Group The time. over recognised is revenue where obligations performance to price transaction the allocating in method input the apply to elected has Group The The key assumptions used are as follows: as are used key assumptions The rates. capitalisation and yields rental future to related judgements and estimates significant make to management requires assets operating existing the on projections income and period holding remaining expected of assessment the and analysis flows cash future undiscounted Group’s The dates. valuation the at conditions market investment the reflect to rates appropriate at capitalised are streams rental future projected and agreements lease existing under receivable income the method, capitalisation income the Under reporting period. the of end the at existing conditions market local on based are estimates These profit. targeted and risk developer’s and rate return of internal targeted etc.), cost, financing and fees, professional associated and costs construction streams, revenue future rates, leasing and selling of (comprising assets from flows cash future as such estimates of use the requires method value residual The methods. These methods comprise the residual valuation value method and the recognised income capitalisation using method. experts valuation estate real by independent determined is properties investment of value fair The conditions. future of expectations and assumptions data, historical includes which of calculation the horizon, time agiven over default of likelihood the of estimate an is default of Probability ECL. measuring in akey input constitutes default of Probability enhancements. credit integral and collateral from flows cash account into taking receive, to expect would lender the that those and due flows cash contractual the between difference the on based is It default. on arising loss the of estimate an is default given Loss other. each affect will drivers these how and drivers economic different of movement future the for assumptions on based is which information, looking forward supportable and reasonable uses Group the ECL, measuring When instruments. financial its ECL for lifetime to equal amount an at allowance loss the measures Group The assets. financial the of recognition initial since risk credit in changes reflect to period reporting each of end the at losses credit expected those in changes and losses credit expected for accounts Group the model, loss credit expected the Under ECL model. the on based assets financial its of impairment the assesses Group The WORK IN PROGRESS IN WORK DEVELOPMENT AND SALE FOR HELD LAND INVENTORY, FOR VALUE REALISABLE NET OF ESTIMATION ALLOCATION OF TRANSACTION PRICE TO PERFORMANCE OBLIGATION IN CONTRACTS WITH CUSTOMERS UNCERTAINTY ESTIMATION OF SOURCES KEY FAIR VALUE OF INVESTMENT PROPERTIES AND INVESTMENT PROPERTIES UNDER DEVELOPMENT UNDER PROPERTIES INVESTMENT AND PROPERTIES INVESTMENT OF VALUE FAIR ALLOWANCE LOSS OF CALCULATION • • •

For services contracts, the time elapsed. time the contracts, services For and consultant; by project evaluated as works certified the contracts, construction For For development contracts, the cost of development and related infrastructure; CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY UNCERTAINTY ESTIMATION OF SOURCES KEY AND JUDGMENTS ACCOUNTING CRITICAL (CONTINUED) (CONTINUED) 5.5 –12.2 5.5 Range % Range

5.1.1 3. IFRS under “Business” of definition the met businesses operating The TDIC. from acquired below) 5.1.2 note in (listed businesses other and below) 5.1.1 in (listed entities legal certain of acquisition the included acquired, businesses operating the Agreement, the Under operating businesses and other assets for a total consideration AED 3,625,000 thousand as given below: given as thousand 3,625,000 AED consideration atotal for assets other and businesses operating companies, liability limited including assets, estate real of aportfolio acquire to (“TDIC”) Company &Investment Development Tourism with “Agreement”) (the agreement aframework signed Company the 2018, 31 December ended year the During 5 provided. already amount of excess in ventures joint and associates from receivables it’s and ventures joint and associates in investments its on required is impairment additional no that satisfied is Management statement. income in expense an as recognised is receivable or and/ investment of value carrying the and amount recoverable estimated the between difference The future. foreseeable the until and acquisition of date the from flows cash operating generate to ability and solvency liquidity, profitability, investee’s specific the of evaluation Management’s entails impaired, are associates and ventures joint in investments whether of determination This impairment. of indicators for associates and ventures joint in investments its reviews regularly Management review. its on based estimates previous from differ not do expectations year current that determined Management 38. IAS 16 and IAS with accordance in period reporting annual each of end the at assets intangible and equipment and plant property, of lives useful estimated and values residual the reviews Management impairment. probable any assess to amounts carrying the to compared are values present net The asset. the to specific risks the and money of value time the of assessment market current reflects that rates discount of arange using discounted and assets the of lives useful the over estimations and agreements contractual period, reporting the of end the at existing prices conditions, market recent to reference with determined are flows Cash method. Flow Cash underclassified property, plant and equipment is determined by an independent properties real hotel of estate valuation using expert value Discounted fair The consideration. under property the of value fair the account into takes which amount recoverable the by determining out carried is review impairment An loss. impairment an have suffered assets those that indication an is there when impairment for assessed are progress in work capital and equipment and plant property, under classified Properties Saadiyat Cooling LLC Cooling Saadiyat LLC Cooling District Saadiyat TDIC Education – Sole Proprietorship LLC LLC Proprietorship –Sole &Beverage Food TDIC Name 5.1 2018. 1May as determined been had acquired businesses operating the over control and assets of acquisition of date effective the on Agreement, the Based portfolio. its expand to capital deploy profitably to plan strategic Group’s the of apart is acquisition aforementioned The sectors. education and cooling district residential, retail, hospitality, across businesses and assets of comprised acquisition The Projects under development and lands assets other and 5.2) and 5.1 (Notes Businesses Operating IMPAIRMENT OF INVESTMENTS IN/RECEIVABLE FROM JOINT VENTURES AND ASSOCIATES AND VENTURES JOINT FROM IN/RECEIVABLE INVESTMENTS OF IMPAIRMENT ASSETS INTANGIBLE AND EQUIPMENT AND PLANT PROPERTY, OF LIVES USEFUL PROGRESS IN WORK CAPITAL AND EQUIPMENT AND PLANT PROPERTY, OF IMPAIRMENT

LEGAL ENTITIES ACQUIRED ENTITIES LEGAL OPERATING BUSINESSES BUSINESS COMBINATION 85% 100% 100% 100% Interest Ownership operation incorporation/ of Country UAE UAE UAE UAE Cooling station operations Cooling station operations Educational activities Restaurant management Principal activity 2,050,000 3,625,000 1,575,000 AED’000

Aldar Annual Report 2019 151 152 Financial Statements Gain on bargain purchase bargain on Gain Non-controlling interest value fair at assets net Total identifiable Total liabilities Trade and other payables Advances from customers Liabilities Total assets balances bank and Cash Trade and other receivables Inventories Investment properties The operating businesses acquired represent business combinations under IFRS 3 IFRS under combinations business represent acquired businesses operating The UAE. is businesses other the all of operation and incorporation of country The date. effective the from control acquired Group the Agreement, the per as businesses, operating above the For Marina and Retail Marina Bateen Al Marina and Retail Mangroves Eastern Club Golf Beach Saadiyat Club Golf Dhabi Abu &Spa Resort Golf Dhabi Abu Westin The &Spa Hotel Mangroves Eastern Club Beach Saadiyat Name 5.1.2 5.1 5 31For year the 2019 ended December Notes to the Consolidated Financial Statements (continued) (ii) (i) assets Intangible Property, plant and equipment Assets Goodwill Gain on bargain purchase, net of goodwill consideration Less: Purchase acquired assets net of share Group's 5.2 value. fair at assets net identifiable acquiree's the in interest its of share proportionate the at acquiree the in interest non-controlling the measure to elected Group The nature. by their assets of additions as classified and for accounted were assets remaining The 2018. 1May of as values, fair respective its at recognised been has combination, business of part forming assumed liabilities and acquired assets identifiable the accordingly, and accounting, of method acquisition the using for value of the non-controlling interest in one of the acquired entity, Saadiyat Cooling LLC were determined as follows: as determined LLC were Cooling Saadiyat entity, acquired the of one in interest non-controlling the of fair value the as well as Businesses, operating the of assumed liabilities and acquired assets identifiable the of values fair date Acquisition

This represent non-controlling interest in Saadiyat Cooling LLC which is measured at 15% of net assets at fair value. value. fair at assets net of 15% at measured is LLC which Cooling Saadiyat in interest non-controlling represent This cash future life. expected of useful value present remaining the on its over based generated be valued are will that that flows services cooling district of supply long the for represents customers with combination, contracts business of part as non-cancellable recognised term 7), (note thousand 179,809 AED of assets intangible identifiable acquired the of value fair The

OTHER BUSINESSES ACQUIRED OPERATING BUSINESSES BUSINESS COMBINATION ASSETS ACQUIRED AND LIABILITIES ASSUMED OF THE OPERATING BUSINESSES OPERATING THE OF ASSUMED LIABILITIES AND ACQUIRED ASSETS (iii)

(i) (ii) (iv) (CONTINUED) (CONTINUED) Retail units and marina and units Retail marina and units Retail club Golf club Golf Hotel services and hospitality Hotel services and hospitality club Beach Principal activity Business Combinations Business and have been accounted accounted have been and Notes 5.3 31 8 6 7 7 recognised on (1,070,376) 1,402,080 1,226,408 1,185,307 acquisition acquisition 179,809 Fair value value Fair AED '000 166,053 136,663 103,190 810,145 167,562 175,672 132,791 114,931 114,931 (17,860) (41,101) 6,220 8,110 date during the year ended 31 December 2018 and were included in general and administrative expenses. administrative and general in included were 2018 and 31 December ended year the during expensed were Businesses Operating of acquisition to relation in thousand 4,406 AED to amounted costs related Acquisition acquisition on outflow cash Net activities) operating from flows cash in (included Transaction of costs acquisition the activities) investing from flows cash in (included acquired cash of –net Business Operating of Acquisition 5.2) (note combination business on acquired cash Net 5) (note acquisition the for paid Cash 5.3 31). (Note Company the to transferred was thousand 60,942 AED of value afair with land of aplot whereby TDIC with settlement claim warranty into entered Company the Agreement, the with line 2019, in 31 December ended year the During changed. had estimates, the develop to used assumptions the or outcomes, of range the nor arrangement, consideration contingent the for recognised amount the 2019, neither 2018 and 31 of December As thousand. 60,990 AED of revenue probable and 9.7% of rate adiscount include Key assumptions 3inputs. level as to refers Measurement Value Fair 13 IFRS which market, the in observable not are that inputs significant on based is measurement value fair The approach. income an by applying estimated was thousand 60,990 AED of consideration contingent the of value fair The (iv) iii) The gain on bargain purchase is included in other income and arises from the difference between the fair value of the net assets acquired of the operating operating the of acquired assets net the of value fair the businesses, forming of part business combination between and consideration paid. difference the from arises and income other in included is purchase bargain on gain The is Goodwill only. segment synergies. management expected and asset to customers new allocated growth, sales the of largely comprises acquisition the from arising thousand 17,860 AED of Goodwill

ANALYSIS OF CASH FLOWS ON ACQUISITION OF OPERATING BUSINESSES OPERATING OF ACQUISITION ON FLOWS CASH OF ANALYSIS (1,065,000) (928,337) (932,743) AED '000 136,663 (4,406)

Aldar Annual Report 2019 153 154 Financial Statements

Notes to the Consolidated Financial Statements (continued)

For the year ended 31 December 2019

6 PROPERTY, PLANT AND EQUIPMENT

Furniture Plant Capital Land and Labour and and Office Motor Lease work in buildings camps fixtures machinery equipment Computers vehicles improvements progress Total AED ‘000 AED ‘000 AED ‘000 AED ‘000 AED ‘000 AED ‘000 AED ‘000 AED ‘000 AED ‘000 AED ‘000 Cost At 1 January 2018 6,226,911 1,654,047 698,963 – 86,850 139,222 5,693 16,204 47,284 8,875,174 Additions 3,059 – 31,477 14,243 7,773 14,572 840 146 22,060 94,170 Acquisition of subsidiaries (note 5) 447,220 – 2,054 293,259 7,365 373 – 53,654 6,220 810,145 Transfers from development work in progress (note 13) – – 2,148 – – – – – 1,070 3,218 Transfers to investment properties (note 8) – – – – – – – – (25,700) (25,700) Disposals (5,206) – (10,585) – (287) (924) (126) – – (17,128) At 1 January 2019 6,671,984 1,654,047 724,057 307,502 101,701 153,243 6,407 70,004 50,934 9,739,879 Additions 29,811 2,211 36,098 609 8,640 9,444 3,289 10,142 27,274 127,518 Transfers from investment properties (note 8) 10,737 – – – – – – – – 10,737 Disposals – (226,990) (13,148) (5,612) (2,515) (3,702) (1,251) (2,383) – (255,601) At 31 December 2019 6,712,532 1,429,268 747,007 302,499 107,826 158,985 8,445 77,763 78,208 9,622,533 Accumulated depreciation and impairment losses At 1 January 2018 3,529,101 1,619,933 591,687 – 75,695 108,688 5,495 13,634 – 5,944,233 Charge for the year 150,398 45 40,173 12,677 11,318 11,393 148 7,935 – 234,087 Impairment/(reversal) (note 28) (29,416) 6,909 – – – – – – – (22,507) Disposals (5,206) – (10,362) – (287) (924) (126) – – (16,905) At 1 January 2019 3,644,877 1,626,887 621,498 12,677 86,726 119,157 5,517 21,569 – 6,138,908 Charge for the year 165,908 2,942 43,788 19,070 11,593 9,567 712 12,113 – 265,693 Impairment/(reversal) (note 28) (36,787) 7,601 – – – – – – – (29,186) Derecognised on transfers to investment properties (note 8) (2,928) – – – – – – – – (2,928) Disposals – (226,984) (12,755) (5,487) (2,425) (3,646) (1,207) (2,040) – (254,544) At 31 December 2019 3,771,070 1,410,446 652,531 26,260 95,894 125,078 5,022 31,642 – 6,117,943 Carrying amount 31 December 2019 2,941,462 18,822 94,476 276,239 11,932 33,907 3,423 46,121 78,208 3,504,590 At 31 December 2018 3,027,107 27,160 102,559 294,825 14,975 34,086 890 48,435 50,934 3,600,971 7 • • analysis: sensitivity this on Based yield. exit and rate discount (RevPAR), and Room Available Per Revenue the on conducted been sensitivity has The equipment. and plant property, under classified properties hotel its all for analysis asensitivity conducted Group The 15.0%). to 10.01% of 7.3% of (2018: rate 10.25% (2018: 16.0% 9.0% to 7.0% to yield adiscount exit 9.0%) to and using method flow cash discounted the to by reference determined been has and valuer by independent determined sell to cost less value fair on based is assets relevant of value recoverable The conditions. market improved and switch franchise rebranding, the from resulting profitability and cashflows improved to relates mainly impairment of reversal The statement. income consolidated the in recorded been has which 28), (note thousand) (2018: 22,507 AED thousand 29,186 AED of impairment of reversal a net to led review The equipment. and plant property, its of value recoverable of areview out carried Group year, the the During 19. note under disclosed as borrowings bank against security as pledged are equipment and plant property, Certain extension or termination options on the lease. no are year. There the during right-of-use to assets additions no were There years. 30 is term lease average The thousand). 2,692 (2018: AED year the during right-of-use assets the against recorded was thousand 2,692 AED of charge Depreciation thousand). (2018: 74,476 AED thousand 71,784 AED of leases land to respect with right-of-use assets include equipment and plant Property, (2018: nil). thousand 22,964 AED of disposal on again in resulting equipment and plant property, sold Group year, the the During use. intended for ready when equipment and plant property, of category asset relevant the to transferred be will and date reporting the at progress under were which facilities leisure and hospitality of enhancement and development the on incurred cost the represent mainly progress in work Capital andGeneral administrative expenses At 1 January 2018 At 1January Cost costs Direct follows: as allocated been has year the for charge depreciation The Additions Disposals Acquisition of (note subsidiaries 5) Additions 2019 At 1January At 1 January 2018 At 1January Accumulated amortisation 2019 December At 31 Disposals year the for Charge At 31 December 2018 At 31 December 31 December 2019 Carrying amount 2019 December At 31 year the for Charge 2019 At 1January • •

whilst a decrease in the RevPAR by 10% would result in a similar decrease in the recoverable value. recoverable the in decrease asimilar in result RevPAR by 10% would the in adecrease whilst value, recoverable the in increase 11.4% or thousand 266,710 AED in result RevPAR by 10% would the in increase an the recoverable value; and in decrease 5.4% or 127,170 AED in thousand result would by 50bps yields exit and rates discount the in increase an whilst value, recoverable the in increase 6.1% or thousand 142,370 AED in result would by 50bps yields exit and rates discount the in a decrease INTANGIBLE ASSETS AND GOODWILL AED ‘000 Goodwill 17,860 17,860 17,860 17,860 17,860 – – – – – – – – – – 165,848 AED ‘000 179,809 Customer contracts 179,809 179,809 13,961 174,161 5,648 5,648 8,313 – – – – – – Computer 256,234 265,693 AED ‘000 AED ‘000 software 92,334 83,819 82,949 77,845 85,912 79,816 9,459 4,064 4,003 6,096 8,515 6,422 3,072 (1,101) (1,101) 2019 –

290,003 AED ‘000 AED ‘000 AED 192,223 234,087 283,581 221,422 197,669 97,780 85,464

82,949 198,117 77,845 12,665

4,064 12,316 6,422 8,720 (1,101) (1,101) Total 2018

Aldar Annual Report 2019 155 156 Financial Statements Additions as part of business business of part as Additions year the during Additions Balance at the beginning of the year the of beginning the at Balance Transfer from/(to): Transfer Disposals 8 for customer contracts or computer software. impairment of indication no was 2019, there 31 at December as and year the During amount. recoverable the exceed materially to goodwill the of value carrying the cause would akey assumption in change possible reasonably no that believes Group The • • • following assumptions: the on based was sell to costs less value fair of calculation The calculation. sell to cost less value afair using determined been has goodwill the of amount recoverable the and business leisure and hospitality its to relates Group by the recognised goodwill The impaired. be might goodwill that indications are there if frequently more or impairment, for annually goodwill tests Group The 7 31For year the 2019 ended December Notes to the Consolidated Financial Statements (continued) the year is as follows: as is year the Investment properties comprise completed properties and investment properties under development (IPUD). The movement during Balance at the end of the year the of end the at Balance Fair value (loss)/gain, net on these leases. options termination or extension no are There (2018: nil). 7,662 AED to thousand amounting right-of-use asset additional recorded Group the agreement, alease of scope the in change to year, due the During years. 25 is term lease average The thousand). 361,023 (2018: AED thousand 349,826 AED of land of plots of leases to respect with right-of-use assets include properties Investment (2018: nil). thousand 23,856 AED of gain anet realised and properties investment sold Group year, the the During Emirates. Arab United the in located are properties investment All • • •

combinations (note 5) Property, plant and equipment Inventories Development work in progress progress in work Development From properties under development sale for held Land rate of 2 to 4%. 2to of rate agrowth assumed and results future of expectation management and plan business 5year the on based is –this rate Growth and 12%; assumed and risks specific the of estimate reflect rates –discount rates Discount conditions; market future and performance past of expectations the on based were margins –gross margins Gross (note 6) (note (note 13) (note to completed properties (note 14) INVESTMENT PROPERTIES PROPERTIES INVESTMENT INTANGIBLE ASSETS AND GOODWILL

(271,080) 16,226,285 15,126,557 1,170,875 Completed Completed (246,639) properties AED ‘000 445,691 (13,665) 11,700 2,846 (CONTINUED) – – development 1,281,746 Properties Properties (205,635) (445,691) AED ‘000 (128,112) 2019 556,191 53,883 under – – – – – 16,408,303 16,408,303 16,782,476 1,224,758 (205,635) (271,080) (374,751) AED ‘000 (13,665) 11,700 2,846 2,846 Total – – 15,126,457 15,126,557 Completed (824,520) properties AED ‘000 AED 549,425 166,053 83,544 25,700 (102) – – – development 1,281,746 Properties Properties AED ‘000 AED 950,092 2018 182,852 153,474 (4,672) under – – – – – – 16,408,303 16,076,549 AED ‘000 AED (671,046) 166,053 732,277 83,544 25,700 (4,672) Total (102)

– – AED 344,360 thousand (2018: AED 341,482 thousand). thousand). (2018: 341,482 AED thousand 344,360 AED to amounted properties these to relating cost operating direct and thousand) (2018: 1,731,594 AED thousand 1,719,240 AED to amounted leases, operating under out leased is which of all properties, investment its from Group by the earned income rental The hierarchy. value fair the 3in Level under categorised are properties investment The value. the in increase an amplify would rate capitalisation the in adecrease with conjunction in rent in increase an Similarly, valuation. the on impact net no in resulting thus rate, capitalisation the in increase by an offset be may rent in increase an example, for inputs; unobservable noted two the between interrelationship by the affected be may valuation The conditions. by market determined generally are which inputs unobservable the between interrelationships are There factors. valuation multiple by using properties of value market fair the determining in valuers by professional derived carefully are rates capitalisation and rates Discount debt. long-term and term short of cost or rates borrowing to applied commonly as rates interest than different are rates capitalisation and rates discount that noted be should It • • on this analysis: sensitivity Based rates. rental and rates capitalisation the on conducted been has sensitivity The thousand. 13,508,960 AED of aggregate an value with portfolio property investment its in assets largest thirteen for analysis asensitivity conducted Group The used. assumptions key the 4for note to year. Refer the during techniques valuation the to change no been has 2019. There 31 December 2019 to 31 October from properties’ investment of values fair the to changes significant no have been there that believes 2019, management 31 at October as conducted been has valuation The method. capitalisation income the by using determined mainly were valuations The use. current their is properties the of use best and highest the properties, investment the of value fair the estimating In locations. relevant the at properties of valuation the in experience and qualifications have appropriate and carried out by independent valuers not connected with the Group. The valuers avaluation are of members of professional basis the valuers’ on at associations arrived are development under properties including properties investment the of values fair The 19. note under disclosed as borrowings bank against security as pledged are properties investment Certain • • whilst a decrease in the rental rates by 10% would result in AED 1,450,701 thousand or 10.7% decrease in the valuation. the in 10.7% decrease or thousand 1,450,701 AED in result by 10% would rates rental the in adecrease whilst valuation, the in increase 11.2% or thousand 1,515,658 AED an in result by 10% would rates rental the in increase an and valuation; the in decrease 6.2% thousand 833,480 AED in result would by 50bps rates capitalisation the in increase an whilst valuation, the in 7.6% or increase thousand 1,030,148 aAED in result would by 50bps rates capitalisation the in a decrease

Aldar Annual Report 2019 157 158 Financial Statements

Notes to the Consolidated Financial Statements (continued)

For the year ended 31 December 2019

9 INVESTMENT IN ASSOCIATES AND JOINT VENTURES

Allocated Share in to current underlying account of Share in net assets Share in the underlying at current Share in associate/ net assets at 1 January year’s hedging Dividends join 31 December Ownership Voting Place of 2019 profit/(loss) reserve received ventures Disposals 2019 interest power registration AED ‘000 AED ‘000 AED ‘000 AED ‘000 AED ‘000 AED ‘000 AED ‘000 INVESTEE Associates Abu Dhabi Finance PJSC 32% 32% Abu Dhabi 147,832 2,900 – (3,200) – – 147,532 Al Sdeirah Real Estate Investment LLC 30% 30% Abu Dhabi 36,652 (1,225) – (10,500) – – 24,927 Dimarco Electronic Systems LLC 34% 34% Abu Dhabi – – – – – – – Bunya Enterprises LLC 33% 33% Abu Dhabi – – – – – – – Iskandar Holdings Limited * 19% 19% Cayman Islands 6,086 – – – – – 6,086 190,570 1,675 – (13,700) – – 178,545 Joint ventures Aldar Besix LLC 51% 50% Abu Dhabi 16,313 75 – – – – 16,388 Al Raha International Integrated Facilities Management LLC (under liquidation) 50% 50% Abu Dhabi 21,497 (1,451) – (16,000) – – 4,046 Aldar Etihad Investment Properties LLC 50% 50% Abu Dhabi 579,524 3,533 (280) – – (582,777) – Aldar Etihad First Investment Properties LLC 50% 50% Abu Dhabi 85,815 1,189 – – – (87,004) – Aldar Etihad Development LLC 50% 50% Abu Dhabi 99,812 2,383 – – – (102,195) – Royal House LLC 50% 50% Abu Dhabi – (10,500) – – 10,500 – – Galaxy Building Materials LLC (under liquidation) 45% 50% Abu Dhabi – – – – – – – 802,961 (4,771) (280) (16,000) 10,500 (771,976) 20,434 993,531 (3,096) (280) (29,700) 10,500 (771,976) 198,979

* Iskandar Holdings Limited is classified as an associate of the Group although the Group owns a 19% ownership interest, as the Group has significant influence by virtue of its contractual right to appoint 2 out of 6 directors to the board of directors of the investee. Total (loss)/profit for the year the for Total (loss)/profit Total revenue ventures joint of assets net of share Group’s (liabilities)/assets Net Total liabilities As of 31 December 2019 and 31 December 2018, fair value of the contingent consideration amounted to nil. nil. to amounted consideration contingent the of value fair 2018, 31 December 2019 and 31 of December As investee. the of performance on based contingent is which compensation further to entitled is Group the agreement, the per As thousand. 30,319 AED of sale on again recognised and ventures joint in investments its of one sold Company the 2018, During thousand. 1,717 AED to amounting transaction the of date the at LLC as Properties Investment Etihad by Aldar recorded was that reserve hedging the loss or profit to recycled also has Group the transaction, above the of aresult As 507,601 AED to thousand. amounting entities acquired the in borrowings bank assumed also Group The thousand. 30,000 AED of asset additional an receive will Group the agreement, the per As thousand. 771,976 AED of method equity using for accounted ventures joint in investment of derecognition in resulted transaction above The • Total assets • whereby: transfer share to respect with agreement aframework into entered Company 2019, the 1March Effective venture. joint the from receivable Group’s the to applied was thousand) (2018: 10,826 AED thousand 10,500 AED to amounting shares ordinary in investment Group’s the of excess in method equity the using recognised loss accordingly, and, venture joint the in interest Group’s the of part is venture joint the of one from receivable amount its that considers Group The constructive obligation. or legal have any not does Group the as associates few from losses of share recognising discontinued has Group The associate an of loss of share Cumulative year the for associate an of loss of share unrecognised The Total revenue associates of assets net of share Group’s Net assets Total liabilities Total assets below: summarised is associates Group’s the of respect in information financial available Latest Latest available financial information in respect of the Group’s joint ventures is summarised below: summarised is ventures joint Group’s the of respect in information financial available Latest year the for Total profit SHARE OF LOSSES OF SHARE DISPOSAL OF JOINT VENTURES JOINT OF DISPOSAL RECEIVABLES THE AGAINST ADJUSTED LOSSES • • The Company sold its entire 50% ownership of Aldar Etihad Development LLC, a joint venture. ajoint LLC, Development Etihad Aldar of ownership 50% entire its sold Company The 2019; and 1March effective of business under IFRS 3 IFRS under business of definition the meet not did entities acquired The entities. these of capital share entire the holding in LLC resulting Properties Investment First Etihad Aldar LLC and Properties Investment Etihad Aldar of ownership 50% additional acquired Company The Business Combinations Business and hence the acquisitions have been accounted for as assets acquisitions acquisitions assets as for accounted have been acquisitions the hence and (1,461,122) 2,015,365 (148,764) (285,749) 554,243 AED ‘000 AED ‘000 AED ‘000 136,985 178,545 (23,650) (29,729) 93,849 93,849 20,434 35,540 (3,528) 4,980 2019 2019 2019 2,050,296 2,453,647 (1,456,112) (1,471,641) 982,006 AED ‘000 AED ‘000 AED AED ‘000 AED 307,560 802,961 594,184 190,570 104,731 (26,201) 84,785 23,041

(8,168) 2018 2018 2018

Aldar Annual Report 2019 159 160 Financial Statements 11 thousand. 6,012 AED to amounted year the for loss The earnings. retained to reclassified was thousand 10,328 AED of credit reserve revaluation Investment thousand. 30,799 AED of value afair having securities unquoted international in investments the sold Group year, the the During thousand). (2018: 5,415 AED thousand 1,400 AED to amounted investments these from received income year, dividend the During At 31 December Less: allowance for expected credit loss (note 11.8) (note loss credit expected for allowance Less: Others Disposal redemptionsCapital year the during revaluations on Loss Accrued interest Advances and prepayments 11.7) (note asset an construct to contracts on customer from due amounts Gross Additions Gross amounts due from customer on contracts for sale of properties (note 11.6) (note properties of sale for contracts on customer from due amounts Gross 11.5) (note ventures joint and associates from Due 11.4) (note Dhabi Abu of Government the from Receivables 11.3) (note finance project to relating Receivables At 1January securities UAE quoted in Investment Less: allowance for expected credit loss (note 11.8) (note loss credit expected for allowance Less: Others 11.5) (note ventures joint and associates from Due 11.4) (note Dhabi Abu of Government the from Receivables 11.3) (note finance project to relating Receivables Non-current portion Refundable costs (note 11.2) 11.2) (note costs Refundable 11.1) (note Trade receivables Current portion 10 31For year the 2019 ended December Notes to the Consolidated Financial Statements (continued) Investment in UAE unquoted securities UAE unquoted in Investment Movement during the year is as follows: as is year the during Movement Investment in international unquoted securities

TRADE AND OTHER RECEIVABLES OTHER AND TRADE FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME COMPREHENSIVE OTHER THROUGH AT VALUE FAIR ASSETS FINANCIAL 6,484,730 2,284,156 6,211,360 1,987,629 (273,370) 440,907 868,320 238,926 138,990 (151,257) AED ‘000 AED ‘000 390,183 649,737 AED’000 AED’000 141,985 174,597 (30,799) 40,000 25,889 49,397 55,202 55,202 15,202 73,601 32,767 96,116 (4,962) (7,605) 6,938 2,452 2019 2019 2019 2019 – – 5,070,445 1,096,306 5,399,943 1,109,827 1,827,753 (329,498) AED ‘000 AED ‘000 AED 399,002 496,706 AED’000 AED’000 279,258 478,923 475,259 136,016 95,000 119,389 (28,338) 176,776 38,950 (97,704) 14,420 49,397 88,914 41,964 42,572 15,202 25,707 96,116 96,116 14,941 (9,355) 2018 2018 2018 2018 – 11.4 plots sold. land and over handed infrastructure against receivable amounts the represent Dhabi Abu of Government the from Receivables Present value of minimum payments receivable payments minimum of value Present 11.3 developments. estate real and projects various of infrastructure of development to relation in Dhabi Abu of Government the of behalf on incurred costs represent costs Refundable 11.2 days) 180 than (more due Past event of non-completion of the remaining contractual obligations in order to cover losses incurred by the Group. by the incurred losses cover to order in obligations contractual remaining the of non-completion of event the in retain to entitled be contractually would Group the which plots, the on substantial, cases some in payments, instalment made have already customers the that fact by the mitigated is risk credit of Concentration customers). (2018: five customers five top its from due are receivables) trade the of (2018: 25% receivables trade 2019, 21% the of 31 at December As contracts. construction from revenue and properties land, of plots of sales of respect in due amounts the represent mainly Trade receivables Past due (up to 180 days) (up 180 to due Past due past Not Less: unearned finance income years five After finance: year project fifth to second the In from year one Within receivable Amounts Less: allowance for expected credit loss (note 11.8) (note loss credit expected for allowance Less: Trade receivables 11.1 The ageing of non-impaired receivables is as follows: as is receivables non-impaired of ageing The properties. and plots of sales of respect in amounts due past the on annum per 12% at charged is Interest AGEING OF TRADE RECEIVABLES TRADE OF AGEING

RECEIVABLE FROM THE GOVERNMENT OF ABU DHABI ABU OF GOVERNMENT THE FROM RECEIVABLE RECEIVABLES RELATING TO PROJECT FINANCE PROJECT TO RELATING RECEIVABLES REFUNDABLE COSTS TRADE RECEIVABLES TRADE (164,135) 148,923 239,201 313,058 AED’000 60,120 Minimum payments 13,737 2019 (186,636) AED’000 254,401 150,957 337,593 58,657 24,535 2018 2,284,156 2,026,917 2,026,917 Present value of minimum (257,239) 665,300 386,401 148,923 148,923 AED’000 AED’000 AED’000 975,216 117,026 24,959 6,938 2019 2019 2019 payments – 1,514,386 1,514,386 1,827,753 444,766 (313,367) AED’000 AED’000 AED’000 109,708 518,843 550,777 150,957 150,957 26,308 14,941

2018 2018 2018 –

Aldar Annual Report 2019 161 162 Financial Statements 11.7 contracts. these of term the over recognised be to expected is thousand 4,368,000 AED to aggregating revenue contracts, above the to respect With properties. or sale for contracts from arising revenue unbilled represents amount above The 23) (note payables other and trade in included customers to due Amount Amount due from customers included in trade and other receivables (note 11) (note receivables other and trade in included customers from due Amount customers. from due amount gross under position financial of statement consolidated the in included are customer the to billed yet not but performed work for billed Amounts customers. to due amount gross as aliability, as position, financial of statement consolidated the in included are performed is work related the before received Amounts work. contract for customers to due amounts the as shown is surplus the losses, recognised less profits recognised plus date to incurred costs contract exceed billings progress where contracts For work. contract for customers from due amounts as shown is surplus the billings, progress exceed losses recognised less profits recognised plus date to incurred costs contract Where 11.6 Less: allowance for expected credit loss receivables Gross Charge for the year (note 28) (note year the for Charge year the of beginning the at Balance loss: credit expected of allowance in year the during Movement 11.8 contracts. these of period the over recognised be to expected is thousand 3,719,519 AED to aggregating revenue contracts, above the to respect With contracts. from arising revenue (deferred)/unbilled represents amount above The date to billings progress total Less: date to losses recognised less profits recognised plus incurred cost Total contracts 23) (note payables other and trade in included customers to due Amount 11) (note receivables other and trade in included customers from due Amount 11.5 11 31For year the 2019 ended December Notes to the Consolidated Financial Statements (continued) Balance at the end of the year the of end the at Balance net provision, of off Write TRADE RECEIVABLES TRADE

CONSTRUCTION CONTRACTS CONSTRUCTION DUE FROM ASSOCIATES AND JOINT VENTURES JOINT AND ASSOCIATES FROM DUE CONTRACTS FOR SALE OF PROPERTIES OF SALE FOR CONTRACTS ALLOWANCE FOR EXPECTED CREDIT LOSS CREDIT EXPECTED FOR ALLOWANCE TRADE AND OTHER RECEIVABLES OTHER AND TRADE (CONTINUED) (151,258) AED’000 174,597 23,339 2019 Non-current AED’000 176,776 (97,704) 79,072 2018 (5,130,536) 4,679,263 1,987,629 1,977,574 (500,670) (451,273) (451,273) (117,206) AED‘000 AED‘000 AED‘000 AED’000 257,239 313,367 (10,055) 25,889 49,397 61,078 (16,131) 9,758 2019 2019 2019 2019 Current 1,096,306 1,096,306 (3,851,279) 3,859,198 302,466 AED‘000 AED‘000 AED‘000 AED’000 313,367 (18,069) (41,478) 28,970 49,397 25,707 (16,131) 9,576 7,919 7,919 2018 2018 2018 2018

– • • below: as key assumptions in changes to value realisable net of sensitivity the of analysis an conducted has Group The 4). (note techniques and methodologies valuation various using valuations external on based is sale for held land of value realisable net of determination The held. is inventory the which for purpose the consideration into take also estimates These business. of course ordinary its in properties these of sale the from realise to expected is Group the that amount the of date, reporting the at available evidence reliable most the on based are values realisable net of estimates 32). (note The (2018: nil) thousand 524,891 AED of awrite-down recorded and portfolio sale for held land its of value realisable net determined Group 2019, the 31 at December As year the of end the at Balance 32) (note value realisable net to Write-down year the during properties investment and progress in work development to Transfer Sold during the year the during Sold have been higher or lower as follows: as lower or higher have been would receivables trade on allowance loss the 31 of December, as (lower) higher 0.5% been had bucket time each on ECL rates the If appropriate. where money, of value time including date, reporting the at conditions of direction forecast the as well as current the both of assessment an and conditions economic general and debtors the to specific are that factors for adjusted were These • • • • a provision matrix: using determined was category each for ECL rate the and categories four into classified were debtors all losses credit expected the To determine approach. simplified the using receivables other (“ECL”) and loss trade for credit expected lifetime recognises Group The year the of end the at Balance year the for Charge 12 days) 180 than (more due Past days) (up 180 to due Past due past Not Exchanged during the year (note 32) (note year the during Exchanged 31 &32) (note year the during Additions year the of beginning at Balance follows: as was year the during sale for held land in Movement projects. respective the of launch on development under properties investment to or progress in work development to either transferred are land of plots these development, for land of plots these use to determines management If business. of course normal the in sold be to intended land of plots represent sale for held Land Balance at the beginning of the year the of beginning the at Balance DUE FROM ASSOCIATES AND JOINT VENTURES JOINT AND ASSOCIATES FROM DUE • • • • • • an increase in the sales rates by 5% would result in a AED 42,900 thousand decrease in the write-down, and vice versa. vice and write-down, the in decrease thousand 42,900 aAED in result would by 5% rates sales the in increase an and write-down; in increase thousand 2,600 AED in result would by 50bps rate discount the in increase an whilst write-down, the in decrease thousand 8,880 aAED in result would by 50bps rate discount the in a decrease Category IV – debtors at default (100%) (100%) default at –debtors IV Category 60%); to (20% and risk credit high with companies –private III Category (1% 20%); to risk credit low with companies –private II Category (0%); companies related I–government Category

LAND HELD FOR SALE SALE FOR HELD LAND 4,796,967 3,806,071 2,703,017 (244,779) (910,345) (524,891) AED‘000 AED’000 AED’000 167,388 113,835 (32,106) 12,862 53,553 9,443 2,599 2019 2019 2019 820 3,806,071

2,305,747 1,646,571 (146,247) AED‘000 AED’000 AED’000 106,282 113,835 15,669 13,281 1,229

7,553 1,159 2018 2018 2018

– – –

Aldar Annual Report 2019 163 164 Financial Statements Transfers from/(to): Transfers 28) (note costs project of Write-off 32) (note year the during Exchanged in the ordinary course of business. Movement during the year is as follows: as is year the during Movement business. of course ordinary the in Development work in progress represents development and construction costs incurred on properties being constructed for sale 15 nature. their on based inventory as classified were properties These parties. counter of non-performance contractual to due thousand) (2018: 15,775 AED thousand 248,485 AED of value afair with properties reacquired Group the projects, development for agreements purchase sales of terms with year, line in the During Emirates. Arab United the in located are inventories in properties Completed thousand). (2018: 93,023 AED costs direct as recognised was thousand 90,539 AED of year, amount an the During transferred to inventories from development work in progress upon completion (note 13). were (2018: 359,033 AED thousand) thousand 454,616 AED of value aggregate an with properties year, completed the During operatingOther inventories Completed properties sold properties of costs in Recognised year the during incurred costs Development year the of beginning at Balance Short term deposits held with banks with held deposits term Short balances bank and Cash 13 31For year the 2019 ended December Notes to the Consolidated Financial Statements (continued) Balance at the end of the year the of end the at Balance Cash and bank balances bank and Cash 14 Emirates. Arab United the in located are projects progress in work development All Short termShort deposits with original maturities greater than three months payables for which separate bank accounts are maintained. are accounts bank separate which for payables dividend and projects government against designated balances cash represents mainly balances cash restricted of balance remaining The properties. development of sale against customers from received cash representing accounts escrow into deposited are which thousand) (2018: 1,159,502 AED thousand 834,080 AED to amounting balances include balances bank and cash Restricted aprincipal. as acting not is Group the since parties third of behalf on Company by the held is it as balances bank Group’s the in included not are thousand) (2018: 624,421 AED thousand 650,968 AED to amounting banks at 2019, cash 31 December at As Group. by the managed are that communities or buildings certain in units of owners the of behalf on deposits security and charges service community to addition in associate its of one to related amounts held Group year, the previous the During equivalents cash and Cash Restricted bank balances Land held for sale (note 12) (note sale for held Land Property, plant and equipment (note 6) (note equipment and plant Property, Investment properties (note 8) Inventories (note 14)

DEVELOPMENT WORK IN PROGRESS IN WORK DEVELOPMENT CASH AND CASH EQUIVALENTS INVENTORIES (3,104,586) (1,693,776) 1,005,499 5,686,242 2,546,972 1,052,786 2,473,374 2,524,915 2,290,112 2,571,976 3,161,327 (291,544) (454,616) (772,197) 205,635 233,079 AED ‘000 AED ‘000 AED’000 (16,503) 47,287 2019 2019 2019 – 2,520,606 (2,742,249) (1,307,628) 5,014,607 1,394,358 3,313,498 2,473,374 (878,000) 1,476,818 1,701,109 (359,033) AED ‘000 AED ‘000 AED 402,190 AED’000 144,505 469,144 66,954

(3,348) (3,218) 4,672 2018 2018 2018 –

Total current portion Total non-current portion Non-current portion portion current Less: Carrying amountCarrying repayment in September 2025. for due is and semi-annually payable annum per 4.750% of rate aprofit 1has No. Sukuk thousand). 500,000 (USD thousand 1,836,750 AED of value atotal for 1”) No. (“Sukuk sukuk non-convertible issued Group the of subsidiary owned awholly and Island Cayman the of laws the under liability limited with incorporated company exempted an Ltd., Sukuk Aldar 2018, 1October On Accrued profit Accrued 17 1each. AED of value apar with shares ordinary up paid fully and issued authorised, (2018: 7,862,629,603) 7,862,629,603 comprises capital Share 18 FVTOCI. at assets financial the on recognised are that losses or gains unreleased net the represents reserve revaluation Investments hedges. flow cash for instruments hedging as Group by the designated are that contracts swaps rate interest the of movements value fair of portion effective the represent This transfer.suspended further has Company the capital, paid-up the of 50% reaches reserves the As Company. the of capital share paid-up the of 50% reaches reserve the whenever suspended be may reserve this to Transfers non-distributable. is that reserve statutory the to transferred are profits annual 10% the of (2) No. 2015, of Law UAE Federal the and Company the of Association of Articles with accordance In Unamortised issue costs issue Unamortised issue from Proceeds costs issue Unamortised issue from Proceeds 16 Emirates. Arab United the in banks local with placed are deposits term short All annum. per 3.50%) (2018: 0.4% and 3.55% 0.4% and between ranges deposits term on rate interest The Accrued profit Accrued Carrying amountCarrying and is due for repayment in October 2029. October in repayment for due is and semi-annually payable annum per 3.875% of rate aprofit 2has No. Sukuk thousand). 500,000 (USD thousand 1,836,750 AED of value atotal for 2”) No. (“Sukuk sukuk non-convertible issued Group the of subsidiary owned awholly and Island Cayman the of laws the under liability limited with incorporated company exempted an 2) (No. Ltd., Sukuk 2019, Aldar October 22 On Non-current portion portion current Less: SUKUK LAUNCHED IN 2018: IN LAUNCHED SUKUK INVESTMENT REVALUATION RESERVE RESERVE HEDGING FLOW CASH STATUTORY RESERVE SUKUK LAUNCHED IN 2019: IN LAUNCHED SUKUK

NON-CONVERTIBLE SUKUK NON-CONVERTIBLE SHARE CAPITAL RESERVES 1,832,969 1,836,750 1,836,750 1,810,431 3,628,113 1,817,682 1,831,521 AED ‘000 AED ‘000 (19,068) (22,538) (26,319) (13,839) 22,538 36,377 13,839 2019 2019 1,836,750 1,810,140 1,810,140 1,831,951 AED ‘000 AED AED ‘000 AED (26,610)

(21,811) 21,811 21,811 2018 2018

– – – – – –

Aldar Annual Report 2019 165 166 Financial Statements

Notes to the Consolidated Financial Statements (continued)

For the year ended 31 December 2019

19 BANK BORROWINGS

Outstanding amount Current Non-current Total AED’000 AED’000 AED’000 Security Interest rate Maturity Purpose 31 December 2019: Ijarah facility – 420,000 420,000 Secured relevant EIBOR + 1.50% March 2023 General corporate purpose Term loan – 500,000 500,000 Secured relevant EIBOR + 1.00% September 2023 General corporate purpose Revolving Credit Facility 62,500 1,602,000 1,664,500 Unsecured relevant EIBOR + 1.00% December 2022 General corporate purpose Term loan – 500,000 500,000 Secured relevant USD LIBOR + 1.25% August 2021 General corporate purpose Term loan – 400,000 400,000 Secured relevant EIBOR + 1.00% August 2023 General corporate purpose Term loan – 500,000 500,000 Secured relevant USD LIBOR + 1.30% August 2023 General corporate purpose Term loan – 500,000 500,000 Secured relevant EIBOR + 1.00% September 2023 General corporate purpose Unamortised borrowing cost – (14,583) (14,583) Accrual for interest and profits 12,726 – 12,726 75,226 4,407,417 4,482,643 31 December 2018: Ijarah facility 280,000 – 280,000 Secured relevant EIBOR + 1.40% July 2019 General corporate purpose Term loan – 500,000 500,000 Secured relevant USD LIBOR + 1.25% August 2021 General corporate purpose Revolving Credit Facility 62,500 2,084,500 2,147,000 Unsecured relevant EIBOR + 1.00% December 2022 General corporate purpose Term loan – 400,000 400,000 Secured relevant EIBOR + 1.80% August 2023 General corporate purpose Term loan – 500,000 500,000 Secured relevant USD LIBOR + 1.30% August 2023 General corporate purpose Term loan – 500,000 500,000 Secured relevant EIBOR + 1.00% September 2023 General corporate purpose Term loan – 500,000 500,000 Secured relevant EIBOR + 1.00% September 2023 General corporate purpose Term loan – 400,000 400,000 Secured relevant EIBOR + 2.12% August 2026 General corporate purpose Unamortised borrowing cost – (19,019) (19,019) Accrual for interest and profits 16,012 – 16,012 358,512 4,865,481 5,223,993 Balance at the end of the year the of end the at Balance year the during Paid year the for Charge 5) (note combination business through Acquired year the of beginning the at Balance Employees’ end-of-service benefits 21 Current Non-current Less interest unearned year the of end the at Balance 2 Year 1 Year 20 thousand). (2018: 4,319,889 AED thousand 1,162,500 AED to amounted year the during repaid Borrowings covenant. worth anet carry and thousand) 2,913,377 (AED assets operating and 827,714 (AED thousand) land of plots over mortgage of form the in secured are borrowings bank Certain EIBOR. 3 months 0.75% at plus interest earns deposit The each. thousand 31,250 AED of instalments semi-annual in repayable and purposes corporate general for drawn +1%, EIBOR relevant at interest carries unsecured, is borrowing net The thousand). 3,185,500 AED of deposit less thousand 4,850,000 AED of (borrowing thousand 1,664,500 AED was borrowing net 2019, the 31 at December As position. financial of statement consolidated the in borrowing anet of presentation the in resulted This simultaneously. liability the settle and asset the realise to or basis, net on settle to intends Group the and amounts recognised the off set to right enforceable an has Group the since Presentation Instruments: Financial 32 IAS under offsetting of requirements the met arrangement The Group. by the payable and due amount any against accrued interest any and deposit the off set to institution financial the directed and authorised has Group the whereby lender the to aright provide documents facility The documents. facility the with line in institution financial same the with adeposit against collateralised is that aborrowing involves Facility Credit Revolving The Facility”). Credit (“Revolving thousand 5,000,000 AED of institution afinancial with atransaction into entered Group the 2018, May In undrawn. and committed remained facilities these 2019, all 31 at December As 2023. March in 240 million AED for and 2022 December in billion 3.19 AED for amaturity having institutions financial two with agreements bilateral of form the in facilities credit revolving committed undrawn, of billion 3.43 AED had Group 2019, the 31 at December As Movements in the provision for employees’ end of service benefits are as follows: as are benefits service of end employees’ for provision the in Movements year the of end the at Balance Long term incentive scheme Onwards 5 Year 4 Year 3 Year END-OF-SERVICE BENEFITS

LEASE LIABILITIES LIABILITIES LEASE EMPLOYEES BENEFITS (100,817) 155,094 155,094 512,340 145,479 431,559 167,464 AED‘000 AED‘000 AED‘000 341,198 613,157 (29,539) 68,293 80,781 39,154 12,370 37,106 37,136 41,713 87,711 2019 2019 2019 – 529,898 430,703 AED‘000 AED‘000 AED‘000 661,059 371,546 145,479 145,479 103,015 150,710 (36,675) 141,763 (131,161) 38,879 69,534 36,687

33,910 99,195 44,175 3,704 5,231

2018 2018 2018

Aldar Annual Report 2019 167 168 Financial Statements and restructured interest rate swap contracts with the notional amount of USD 300 million (AED 1,102 million). 1,102 (AED million 300 USD of amount notional the with contracts swap rate interest restructured and 918 million) (AED million 250 USD of amount notional the with contracts swap rate interest terminated Group year, the the During Total 2 to 5years 2 to 1year than Less profile Maturity date: reporting the at outstanding contracts swap rate interest regarding information summarises table following The relationships. hedging these from emerged ineffectiveness of sources other No rates. interest in change the to attributable item hedged the of value fair the in reflected not is which contracts, swap rate interest the of value fair the on risk credit own Group’s the and counterparty the of effect the is relationships hedge these in ineffectiveness hedge of source main The rates. corresponding hedged items the of will systematically value change the in and opposite direction in response to contracts movements swap in rate the underlying interest interest the of value the that expected is it and effectiveness of assessment a qualitative performs Group the same, the are items hedged corresponding their and contracts swap rate interest the of terms critical the As swaps rate –interest liabilities financial Derivative swaps rate –interest assets financial Derivative 21 31For year the 2019 ended December Notes to the Consolidated Financial Statements (continued) for the bank paying 3 month USD LIBOR. The fair values of these interest rate swaps are presented below: presented are swaps rate interest these of values fair The LIBOR. USD 3month paying bank the for exchange in rate afixed at are borrowings the of thousand 251,755 AED of amount anotional to relating payments rate interest floating Company’s the contracts, the of terms the per As rates. interest observable from derived curves yield applicable the using flows cash future the by discounting banks counterparty determined is date reporting the at swaps rate interest of value fair The held. debt rate variable issued the on exposures flow cash the and held debt rate fixed issued of value fair the on rates interest changing of risk the mitigate to Group the enable contracts Such amounts. principal notional agreed on calculated amounts interest rate floating and fixed between difference the exchange to agrees Group the contracts, swap rate interest Under borrowings. rate floating its to relation in risk rate interest its hedge partially to swaps rate interest fixed to floating into entered Company The 22 date. that at as equity the for 2018 and 31 December ended year the for flows cash or loss, or profit on impact no is There position. financial of statement consolidated the in benefits’ ‘employee to payables’ other and ‘trade from thousand 9,912 AED to amounting scheme incentive term long to related liability reclassified Group year, the the During thousand). (2018: 5,231 AED thousand 12,370 AED to 2019 amounted 31 at December as LTI the to Scheme relating liability the while thousand) (2018: 2,202 AED 7,751 AED to thousand amounted LTI the of scheme respect in year for expense The condition. service the of completion upon paid is portion vested of value the representing amount Acash employment. continued to subject 4years, 2to of aperiod over progressively vest which Company, the of shares equity the of return total the to linked units plan incentive granted are participants LTI the scheme, Under scheme is designed to provide long-term incentives for senior certain management team to deliver long-term shareholder returns. LTI The Company. the of employees certain for (LTI) Term aLong scheme Incentive approved has Directors of Board Group’s The 1 to 2years 1 to LONG TERM INCENTIVE SCHEME INCENTIVE TERM LONG

DERIVATIVE FINANCIAL INSTRUMENTS DERIVATIVE FINANCIAL EMPLOYEES BENEFITS (CONTINUED) Average contracted fixed interest rate 6.07% 6.07% 2.73% 2019 –

2.73% to 6.07% to 2.73% 2018 – –

AED’000 AED'000 AED'000 183,675 251,755 251,755 68,080 68,080 carrying carrying 10,760 amount amount 31 December 2019 Notional amount Notional Gross 2019 – – 2,111,396 2,111,396 hierarchy AED'000 Level 2 Level 2 value value 2018 Fair Fair – – Carrying amount of the hedging instrument asset/(liability), net AED'000 AED'000 AED’000 (10,760) carrying carrying 14,024 amount amount (7,423) (3,337) 31 December 2018 December 31 5,802 Gross 2019 – AED'000 hierarchy Level 2 Level Level 2 Level 8,222 8,222 8,222 8,222

value 2018

Fair Fair

– – Project marketing Project sponsorships and Exhibitions 25 Fair value loss arising on hedging instruments during the year classified under cash flow hedges of a joint ajoint of hedges flow cash under classified year the during instruments hedging on arising loss value Fair 30) (note loss or profit to reclassified instruments hedging on arising loss Cumulative hedges flow cash under classified year the during instruments hedging on arising loss value fair Cumulative year the of beginning the at Balance following: as was reserve hedging flow cash the in Movement Corporate advertising developmentProperty and management adjacencies and management Asset developmentProperty and management 11.7) (note asset an construct to contracts on customers to due amount Gross costs contractors’ for Accrual Trade payables 23 year the of end the at Balance upon loss or profit to reclassified venture ajoint of instruments hedging on arising loss Cumulative 26 adjacencies and management Asset liabilities Other Dhabi Abu of Government the to Due 11.6) (note properties of sale for contracts on customers to due amount Gross Provision for onerous contracts Dividends payable income Deferred Dhabi Abu of Government the from Advances 24 terms. credit pre-agreed the within paid are payables all that ensure to place in policies management risk and financial has Group The venture (note 9) (note venture derecognition (note 9)

DIRECT COSTS TRADE AND OTHER PAYABLES OTHER AND TRADE SELLING AND MARKETING EXPENSES REVENUE 4,050,863 2,433,492 4,378,237 1,944,745 3,097,018 1,123,868 2,375,587 6,125,214 7,147,881 856,506 500,670 416,559 431,239 109,522 AED‘000 AED‘000 AED‘000 AED‘000 305,191 90,659 14,880 22,919 10,055 49,331 37,272 2019 2019 2019 2019 2,440,058 5,489,050 3,654,846 3,846,475 6,286,533 1,344,714 1,285,612 2,310,132 1,738,118 AED‘000 363,082 640,657 (96,104) (33,482) 829,207 AED‘000 AED‘000 AED‘000 AED‘000 467,694 85,440 70,547 48,164 (9,362) 41,478 17,494 19,782 31,501 91,701 1,717 (280) 2019 2018 2018 2018 2018 –

Aldar Annual Report 2019 169 170 Financial Statements Staff training and development and training Staff Financing income earned on receivables from project finance project from receivables on earned income Financing earned Total interest/profit 29 projects. certain on overruns cost of respect in recorded provisions include mainly Others Others 11.8) (note net losses, credit expected for Provision 6) (note net equipment, and plant property, of impairment of Reversal 21) (note benefits service of end Employees’ Salaries, bonuses and other benefits Loans and receivables Other finance income on: earned Interest/profit to: allocated costs Staff 27 31For year the 2019 ended December Notes to the Consolidated Financial Statements (continued) Write-off of development work in progress (note 13) (note progress in work development of Write-off (Release)/provision for onerous contracts Receivables written-off ventures joint and associates from due on Provision Bank balances and deposits follows: as is asset of by category analysed assets, financial on earned income Finance 28 Call and current accounts current and Call Bank fixed deposits Bank deposits Islamic Projects under development andGeneral administrative expenses costs Direct

FINANCE INCOME FINANCE STAFF COSTS PROVISIONS, IMPAIRMENTS AND WRITE-DOWNS, NET 625,049 847,380 890,173 890,173 237,423 AED‘000 AED‘000 AED‘000 AED‘000 152,675 (29,186) 46,000 84,087 84,087 60,724 60,724 63,955 61,078 23,363 16,503 12,238 24,231 39,154 22,321 (6,842) 14,172 27,701 11,125 3,639 1,167 2019 2019 2019 2019 604,207 839,370 839,370 AED‘000 AED‘000 AED‘000 AED‘000 799,943 218,948 50,048 (22,507) 28,970 36,687 12,904 18,536 27,236 22,021 79,735 79,735 11,942 16,215 21,143 12,126 57,714 57,714 3,348 6,968 2,740 9,117 2018 2018 2018 2018 – 32 5). (note agreement framework the under settlement claim warranty a to pursuant TDIC from acquired land of aplot of value fair representing thousand 60,942 AED of amount an include Others Others 5) (note combination business on Gain Release of infrastructure accruals and other accruals Unwinding of finance cost on operating lease liability (note 36.2) (note liability lease operating on cost finance of Unwinding The calculation of basic and diluted earnings per share attributable to the owners of the Company is based on the following data: following the on based is Company the of owners the to attributable share per earnings diluted and basic of calculation The identical. are share per earnings diluted and basic outstanding, instruments dilutive no are there year. As the during outstanding shares ordinary of number average weighted by the parent the of holders equity ordinary to attributable year the for profit by dividing calculated are amounts share per earnings Basic Write-down of land held for sale to net realisable value (note 12) (note value realisable net to sale for held land of Write-down Government grant income recorded upon handover of infrastructure assets (note 35) 35) (note assets infrastructure of handover upon recorded income grant Government Gain on exchange of properties of exchange on Gain Basic and diluted earnings per share attributable to Owners of the Company in AED in Company the of Owners to attributable share per earnings diluted and Basic shares of number earnings diluted and basic of purpose the for shares ordinary of number average Weighted average Weighted year the for (profit share per earnings ‘000) diluted and basic of purpose the for Earnings (AED Earnings 33 (i) 31 sukuk non-convertible and borrowings bank on costs Finance 30 Cumulative loss arising on hedging instruments reclassified to profit or loss or profit to reclassified instruments hedging on arising loss Cumulative per share per attributable to owners of the Company) the of owners to attributable

of AED 1), resulting in a gain of AED 913,275 thousand which was recorded in the consolidated income statement as gain on exchange of properties. of exchange on gain as statement income consolidated the in value recorded was which carrying thousand nominal with 913,275 AED plots of of again in (inclusive resulting 1), AED of thousand 1,683,167 AED were given land of plots the of values amounted carrying received the land of while plots the of thousand value fair The 2,606,443 AED to future. foreseeable the in strategy development inside Group’s the of plots part not were certain that with Island along Dhabi Island Abu Lulu the West, Beach Raha Al in GFA acomparable with land of Emirate the in plots situated received Dhabi Abu of properties both Government Zayed, The Mina and Dhabi. Abu of District Cultural Saadiyat of (“GFA”) area areas prime floor the agross has between that land equally split enabled sqm 3million infrastructure approximately of received Group The priorities. strategic parties’ the exchanged with that line in resources land atransaction in Group the developable with land of plots exchange to resolved Dhabi Abu of Government the of Counsel Executive the year, the During GAIN ON EXCHANGE OF PROPERTIES, NET OF WRITE-DOWNS OF NET PROPERTIES, OF EXCHANGE ON GAIN EARNINGS PER SHARE EARNINGS OTHER INCOME OTHER FINANCE COSTS FINANCE (i)

7,862,629,603 1,984,097 0.252 (524,891) 388,384 340,357 258,387 AED‘000 AED‘000 AED‘000 349,719 2019 913,275 115,707 317,152 23,205 44,752 97,928 9,362 2019 2019 2019 – 7,862,629,603 1,855,808 306,549 466,932 AED‘000 AED‘000 AED‘000 309,749 767,868 127,088 287,547 132,791 19,002 41,057 3,200 0.236 2018 2018 2018 2018

– – –

Aldar Annual Report 2019 171 172 Financial Statements Directors’ remuneration remuneration Directors’ Long term incentives Post-employment benefits 35.1 Salaries, bonuses and other benefits Key management compensation Finance income from project finance and joint ventures Finance income Finance Revenue Major shareholder and its affiliates 32) (note properties of exchange on Gain Government grant income recorded upon handover of infrastructure assets (note 35.1) (note assets infrastructure of handover upon recorded income grant Government 35 assembly. general annual the at Shareholders the of approval to subject is dividend proposed 2019. The 31 December ended year the for share per fils 14.5 of dividend acash proposed 2020, February 12 on held meeting their in Directors, of Board The thousand. 1,100,768 AED of atotal for share per 14 of fils dividends distribute to Directors of Board the of recommendation the approved shareholders 2019, the March 20 on held assembly general annual At the The Government of Abu Dhabi is an indirect major shareholder of the Company. the of shareholder major indirect an is Dhabi Abu of Government The management. or Directors of Board by the agreed terms on made are and management Group's by the approved are transactions these of terms The entities. related their and Group the of personnel key management directors, Dhabi, Abu of Government the inthe other making financial or over party operational decisions. Related influence comprise parties of major shareholder, significant associated exercise or companies, party other the control to ability the has party one if related be to considered are Parties Government of Abu Dhabi Revenue Government of Abu Dhabi 34 31For year the 2019 ended December Notes to the Consolidated Financial Statements (continued) Major shareholder and its affiliates Due from associates and joint ventures Significant transactions with related parties during the year are as follows in addition to transactions described in note 9: note in described transactions to addition in follows as are year the during parties related with transactions Significant 5years. 2to within repayable are and annum per 9% of interest carry ventures joint from receivables Certain parties. by related owned amounts the of respect in debts doubtful for made been have provision no ventures, joint and associates form due against losses credit expected of allowance for 11.8 note in disclosed as than Other received. or given have been guarantees No cash. in settled be will and unsecured are outstanding amounts The Due to joint ventures for work project-related RELATED PARTY BALANCES: Advances received (note 23) (note received Advances Trade and other payables Trade and other receivables Trade and other receivables Trade and other payables

DIVIDENDS TRANSACTIONS AND BALANCES WITH PARTIES RELATED BALANCES AND TRANSACTIONS (2018: AED 466,932 thousand) (note 31). (note thousand) (2018: 466,932 AED assets infrastructure of handover upon income grant government as recognised was thousand 115,707 AED of year, amount an the During statement. income recognised be will grant government deferred the authorities, designated the to over handed are assets infrastructure i.e. met, are grant the of conditions the Once grant. government adeferred as recognised be will it point that at and received be will grant the that assurance reasonable be will there completed, are activities these Once authority. government relevant by the performed be to assessments and inspections technical and audit certain of completion the to subject is reimbursement cost infrastructure the of timing and amount The (1,485,707) (416,559) 883,884 741,849 AED‘000 AED‘000 913,275 (32,692) 115,707 33,098 45,786 (12,571) 29,759 16,075 17,649 8,982 9,366 6,270 2,013 7,553 2019 2019

1,066,984

(1,285,612) (640,657) 444,435 466,932 AED‘000 AED‘000 88,648 (32,692) (13,229) 10,805 24,876 47,685 19,279 13,957 12,150 6,798 1,435

1,717 2018 2018

– Capital expenditure contracted but not yet incurred at the end of the year is as follows: as is year the of end the at incurred yet not but contracted expenditure Capital Unwinding of interest expense on lease liabilities during the period (note 30) (note period the during liabilities lease on expense interest of Unwinding Buildings: The Group has leased out certain properties. The amounts of committed future lease inflows are as follows: as are inflows lease future committed of amounts The properties. certain out leased has Group The 36.2 thousand) against the above commitments. (2018: 905,749 AED thousand 642,826 AED to amounting contractors and suppliers the to advances outstanding has Group The years. five to one of aperiod over spread are commitments above The Others progress in works projects Reimbursable Projects under development 36 35.4 35.3 35.2 36.1 Expense relating to short-term leases short-term to relating Expense Total cash outflow in respect of leases of respect in outflow Total cash THE GROUP AS ALESSEE AS GROUP THE THE GROUP AS LESSOR AS GROUP THE After five years five After year fifth to second the In year one Within

CAPITAL COMMITMENTS OPERATING LEASE COMMITMENTS LEASE OPERATING CONTINGENCIES AND COMMITMENTS amounted to AED 130,847 thousand for the year ended 31 December 2019 (2018: AED 361,645 thousand). 2019 (2018: 361,645 AED 31 December ended year the for thousand 130,847 AED to amounted shareholder major and Government by the controlled banks through issued guarantees bank and credits of Letter thousand). 2019 (2018: 30,415 AED 31 December ended year the for thousand 36,530 AED to amounted deposits these on income Finance shareholder. major and Government by the controlled banks with kept are thousand) (2018: 3,527,049 AED thousand 4,135,072 AED of balances bank and Deposits 2019 (2018: 110,760 thousand). AED 31 December ended year the for 176,910 AED to thousand amounted borrowings these on cost Finance shareholder. major and Government by the controlled banks the to due are (2018: 3,947,000 AED thousand) thousand 3,064,500 AED of borrowings Outstanding 2,600,863 4,840,027 1,426,485 2,239,164 4,211,997 1,950,133 835,379 AED‘000 AED‘000 AED‘000 23,205 42,011 2019 2019 2019 – – 2,704,350 5,274,605 4,135,230 1,434,533 1,135,018 AED‘000 AED‘000 AED‘000 507,262 762,555 19,002 54,851 2,638 4,357 2018 2018 2018

Aldar Annual Report 2019 173 174 Financial Statements set for these. contracted commitments, projected gearing levels meet to and compliance with ability borrowing their of covenants, although no absolute are targets assessment and projections flow cash include review regular to subject are that measures Key financial business conduct. of standards high maintaining and appraisals investment rigorous costs, financing minimising solvency, monitoring maintaining sustainable returns for shareholders. This is achieved while through a combination business the of of risk management success actions including long-term the promote to aview with structure capital its adjusts and monitors Group The equity. in changes of statement consolidated the in disclosed as earnings retained and reserves premium, share capital, of issued owners to comprising Company, the attributable equity and balances bank and cash borrowings, Sukuk, non-convertible comprises structure capital The concern. agoing as continue to able be will Group the in entities all that ensure to structure capital its manages Group The 37.4 purposes. speculative for instruments, financial derivative including instruments, financial trade or into enter not does Group The by the management on a continuous basis. reviewed are which rates currency foreign and rate interest in movements predicted and position liquidity trends, market of analysis by management’s governed is derivatives financial of use The exposures. risk hedge to instruments financial derivative using including techniques management risk appropriate by using risks financial of effects the minimise to seeks Group The and forecasts. benchmarks models, developed internally on based risks financial manages and monitors markets, financial international and domestic to access coordinates business, the to services provides function Treasury and Finance Corporate Group’s The 37.3 instruments Derivative financial cost amortised at measured liabilities Financial Financial liabilities instruments Derivative financial balances) bank and cash (including receivables and Loans Investment in financial assets at FVTOCI at assets financial in Investment Financial assets associates and ventures joint of contingencies in share Group’s guarantees bank and credit of Letters 36.3 36 31For year the 2019 ended December Notes to the Consolidated Financial Statements (continued) 37 related subsidiary. to a construction pertaining thousand) (2018: 749,584 AED thousand 795,772 AED of amount credit of letters and guarantees bank are above the in Included 37.1 37.2 statements. financial consolidated the 3to note in disclosed are instrument equity and liability financial asset, financial of class each of respect in recognised, are expenses and income which on basis the and measurement of basis the recognition, for criteria the including adopted, methods and policies accounting significant the of Details LETTERS OF CREDIT AND BANK GUARANTEES BANK AND CREDIT OF LETTERS

CAPITAL MANAGEMENT FINANCIAL RISK MANAGEMENT FINANCIAL CONTINGENCIES CATEGORIES OF FINANCIAL INSTRUMENTS CONTINGENCIES AND COMMITMENTS COMMITMENTS AND CONTINGENCIES FINANCIAL INSTRUMENTS FINANCIAL SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 11,268,209 11,323,411 14,131,971 14,121,211 1,005,590 AED‘000 AED‘000 55,202 10,760 2019 2019 23 – 11,806,132 11,811,934 9,498,391 9,388,251 AED‘000 AED‘000 152,052 839,167 14,024 96,116 5,802 2018 2018

Pound Sterling to the US Dollar. US the to pegged is Riyal Saudi the Also, Dollar. US the to pegged is UAE Dirham the as Dollar US the of impact significant no is There Euro Saudi Riyal the fair value of issued fixed rate debt and the cash flow exposures on the issued variable rate debt. debt. rate variable issued the on exposures flow cash the and debt rate fixed issued of value fair the on rate interest changing of risk the mitigate to Group the enable contracts Such amounts. principal notional agreed on calculated amounts interest rate floating and fixed between difference the exchange to agrees Group the contracts, swap rate interest Under thousand). 35,345 by AED decrease (2018: increase/ thousand 25,156 by AED increase/decrease 2019 would 31 December ended year the for profit Group’s the constant, held were variables other all and higher/lower points basis 100 been had rates interest If atoutstanding liability or the end of the asset of reporting period for outstanding was the amount whole the year. assuming prepared is analysis the liabilities, and assets rate floating For period. reporting the of end the at instruments non-derivative for rates interest to exposure the on based determined have been below analyses sensitivity The 19. and 18, 15, notes in detailed are liabilities financial and assets financial on rates interest to exposures Group’s The rate swap contracts. interest of use by the borrowings, rate floating and fixed between mix appropriate an by maintaining Group by the managed is risk The debt. rate interest floating and fixed both with funded is Group the as risk rate interest to exposed is Group The US Dollar period are as follows: as are period reporting the of end the at liabilities and assets monetary denominated currency foreign Group’s the of amounts carrying The minimum. as translation and loans of repayment with associated risk exchange foreign considers Group the therefore and fixed is Dollars US and Dirhams UAE between rate exchange The period. reporting each of end the at statements financial consolidated Group the in Dirhams UAE into back balances loan outstanding converting with associated risk translation the also and loans of repayment the to relation in is therefore exposure currency Group's The Dollars. US in primarily currencies foreign in money borrow However, does it negligible. is exposure transaction exchange foreign therefore, and transactions trading cross-border significant no has Group The risk. price other and risk rate interest risk, currency foreign risk: of types three comprises risk Market prices. market in changes of because fluctuate will liability or asset afinancial of flows cash future or value fair the that risk the is risk Market 37.5 asubsidiary. of 4billion AED of worth net tangible aminimum require loans four and Group the of 6billion AED of worth net tangible aminimum require loans Three worth. net tangible aminimum maintaining require arrangements borrowing (2018: seven) seven of covenants The that long-term shareholder value is created. ensure to order in return equity appropriate an against evaluated are opportunities development and (2018: 4.01%). Investment 3.84% was debt of cost average weighted 2019, the At 31 December basis. aregular on debt of cost its monitors Group The B) INTEREST RATE SWAP CONTRACTS INTEREST RATE ANALYSIS SENSITIVITY FOREIGN ANALYSIS CURRENCY SENSITIVITY A)

INTEREST RATE RISK MANAGEMENT RISK RATE INTEREST FOREIGN RISK CURRENCY MANAGEMENT

MARKET RISK MANAGEMENT 4,708,877 4,718,915 AED’000 9,762 2019 276 Liabilities – 2,858,986 2,849,652 AED’000 9,185 2018 60 89 418,969 460,651 AED’000 41,682 2019 Assets – – AED’000 682,291 724,521 42,230

2018

– –

Aldar Annual Report 2019 175 176 Financial Statements on undiscounted contractual maturities. 2018 based 2019 and 31 at December liabilities and assets financial Group’s the of profile maturity the summarises below table The and liabilities. assets financial of profiles maturity the matching and flows cash actual and forecast monitoring by continuously facilities, borrowing committed and facilities banking reserves, adequate by maintaining risk liquidity manages Group The requirements. management liquidity and funding term long and medium short, Group’s the of management the for framework management risk liquidity appropriate an built has which Group, the of management the with rests management risk liquidity for responsibility The 37 31For year the 2019 ended December Notes to the Consolidated Financial Statements (continued) 37.7 properties. underlying the of quality the in changes significant any been have not There counterparty. by the default of absence the in properties underlying the repledge or sell to permitted not is Group The units. property underlying the over secured are they because mitigated is development property to related receivables with associated risk credit the that except assets, financial its with associated risks credit its cover to enhancements credit other or collateral any hold not does Group The counter fail to parties their perform event obligations the in generally approximates period, value. their carrying reporting the of end the at assets financial on exposure risk credit maximum represents best that amount The countries. respective the of bank Central by the regulated are and UAE &KSA the in operating banks major the among are banks these since default of risk credit have low to assessed are banks with Balances KSA. in bank 1foreign and banks 10 local with placed were deposits (2018: the 100%) of 2019, 100% At 31 December Group. by the incurred losses the cover to order in obligations contractual remaining the of non-completion of event the in retain to entitled be contractually would Group the which substantial, cases some in payments, instalment received by having mitigated is risk credit of concentration the that believes Management 11.1. note in disclosed are balances trade of receivable concentration on Details location. geographic or industry aparticular affecting developments to performance Group’s the of sensitivity relative the indicates risk credit of Concentration conditions. other or political economic, in by changes affected similarly be to obligations contractual meet to ability their cause would that features economic have similar or region, geographic same the in activities or activities, business similar in engaged are counterparties of a number when arise risk credit of Concentration receivable. accounts of condition financial the on performed is evaluation credit Ongoing customers. of number alarge of consist Trade receivables reduced. significantly is risk credit Group’s the that considers management regard, this In amounts. irrecoverable for made is allowance loss adequate that ensure to period reporting the of end the at basis individual an on investment debt and debt trade each of amount recoverable the reviews Group the Furthermore, debts. overdue recover to taken is action follow-up that ensure to place in also are procedures monitoring other and approvals Credit counterparties. non-related such of creditworthiness the assessing continually and counterparties, non-related specific with transactions limiting exposures, credit by monitoring risk credit control to attempts Group The defaults. from loss financial of risk the mitigating of ameans as counterparties creditworthy with dealing only of apolicy adopted has Group The assets). (liquid assets financial derivative and balances bank and receivables other and trade are risk credit to exposed is Group the where Key areas Group. the to loss financial in resulting obligations contractual its on default will party acounter that risk the to refers Group, the to relation in risk Credit 37.6 Emirates. Arab United the in operating counterparties with contracted were instruments financial derivative Group’s The simultaneously. occur loan the on payments the and swaps rate interest The borrowings. on rates interest variable from resulting exposure flow cash Group’s the reduce to order in hedges flow cash as designated are amounts interest rate fixed for amounts interest rate floating exchanging contracts swap rate interest All 37.5 COLLATERAL HELD AS SECURITY AND OTHER CREDIT ENHANCEMENTS CREDIT OTHER AND SECURITY AS HELD COLLATERAL CONCENTRATION OF CREDIT RISK CASH FLOW HEDGES CASH

LIQUIDITY RISK MANAGEMENT RISK LIQUIDITY CREDIT RISK MANAGEMENT INSTRUMENTSFINANCIAL MARKET RISK MANAGEMENT MANAGEMENT RISK MARKET (CONTINUED) (CONTINUED)

Derivative instruments liability lease Operating Variable interest rate instruments Non-convertible sukuk Total Investments in financial assets at FVTOCI at assets Funds financial in Equities Investments FVTOCI at 2018 31 December assets financial in Equities Investments 31 December 2019 2018: 31 December 2019 and 31 at December as assets financial these of values fair the about information gives table following The period. reporting each of end the at value fair at measured are assets financial Group’s the of Some hierarchy. value fair the 1in Level under categorised are sukuk non-convertible The 18) (note No.2 Sukuk 18) (note No.1 Sukuk Financial liabilities at amortised cost Non-interest bearing instruments 2018 Financial liabilities December 31 Non-interest bearing instruments 2019 Financial liabilities December 31 Derivative instruments liability lease Operating Variable interest rate instruments Non-convertible sukuk liabilities recognised at amortised cost in the consolidated financial statements approximate their fair values. fair their approximate statements financial consolidated the in cost amortised at recognised liabilities financial and assets financial of amounts carrying the that considers management table, following the in disclosed as Except REQUIRED) ARE DISCLOSURES VALUE FAIR (BUT 38 (i) Total and disposal of AED 43,935 thousand. thousand. 43,935 AED of disposal and thousand 481 AED of income comprehensive other in recognised loss value fair thousand, 2,451 AED of investment additional is 3 Level under categorised assets financial the in Movement 2. level 1and level from period the during transfers no were There FAIR VALUE OF THE GROUP’S FINANCIAL ASSETS THAT ARE MEASURED AT FAIR VALUE ON A RECURRING BASIS ARECURRING ON AT VALUE FAIR MEASURED THAT ARE ASSETS FINANCIAL GROUP’S THE OF VALUE FAIR FAIR VALUE OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES THAT ARE NOT MEASURED AT FAIR VALUE AT VALUE FAIR MEASURED NOT THAT ARE LIABILITIES FINANCIAL AND ASSETS FINANCIAL OF VALUE FAIR

Including security deposits from customers. FAIR VALUE OF INSTRUMENTS FINANCIAL (i) (i) 134,396 162,472 AED’000 <1 month <1 122,356 24,324 62,038 56,164 3,752 4,154 – – – – 3,240,864 3,206,659 2,573,435 2,592,901 AED’000 22,538 months 11,858 2,692 8,975 7,608 1 to 3 3 1 to – – – 1,832,969 1,831,521 1,094,782 1,494,516 683,890 342,500 813,993 AED’000 AED’000 AED’000 3 months 3 months 40,000 62,500 carrying carrying to 1year to 53,764 13,839 38,950 38,950 amount 35,423 Level 1 21,811 Gross Gross – – – 2019

4,422,000 4,484,500 5,253,369 1,989,274 1,887,555 5,018,049 239,307 581,302 AED’000 AED’000 AED’000 304,702 223,045 10,760 Level 2 5,802 years value 1 to 5 5 1 to Fair Fair – – – – – – Gross carrying 4,022,589 3,673,500 400,000 1,810,140 1,831,951 2,417,797 192,252 AED’000 AED’000 156,837 AED’000 207,657 >5 years 15,202 41,964 amount 15,202 Level 3 57,166 – – – – – 2018 13,493,287

4,763,084 4,497,227 3,709,877 11,645,619 4,034,957 1,839,285 5,243,012 1,831,951 AED’000 AED’000 512,339 AED’000 529,897 55,202 10,760 41,964 54,152 96,116 5,802

Total Total value Fair Fair

–

Aldar Annual Report 2019 177 178 Financial Statements Service chargeService expenses Depreciation and and Depreciation Gross profit Gross Cost of revenue excluding excluding revenue of Cost (i) time in – At apoint time of aperiod – Over Revenue from external 39 31For year the 2019 ended December Notes to the Consolidated Financial Statements (continued) 39.1 31DECEMBER 2019 Segment information about the Group’s continuing operations is presented below: Provisions, impairments Provisions, impairments – Leasing Fair value loss on investment investment on loss value Fair Gross revenue Inter-segments Gain on disposal of property, property, of disposal on Gain Gain on disposal of of disposal on Gain Gain on exchange exchange on Gain Profit for the year the for Profit Other income Finance costs income Finance and Depreciation Other income Selling and and Selling from profit of Share General and and General Provisions, impairments Segment profit Segment amortisation service chargeservice customers and write-downs, net properties, net properties, plant and equipment investment property of write-downs net properties, of amortisation administrative expenses marketing expenses joint ventures and associates and write-downs, net

Gross revenue of investment properties include AED 165,491 thousand of revenue from service charges. service from revenue of thousand 165,491 AED include properties investment of revenue Gross

SEGMENT INFORMATIONSEGMENT BUSINESS SEGMENTS

(i)

development (1,832,658) 2,493,694 2,731,445 Property development and 1,277,977 388,384 898,787 (128,112) (30,409) AED’000 149,327 and sales Property Property 237,751 management – – – – – – Development management (215,761) 318,043 365,574 AED’000 149,813 149,813 47,531 – – – – – – – – – – 1,067,459 1,347,783 1,728,773 1,728,773 Investment (246,639) (215,499) properties (165,491) Asset management AED’000 (69,950) (10,605) 23,856 23,014 – – – – – Hospitality Hospitality (155,496) (572,357) and leisure 698,624 364,563 126,267 AED’000 333,351 46,827 17,548 (50) 710 – – – – – –

(1,532,702) Adjacencies 1,764,755 1,624,175 140,580 159,448 232,053 AED’000 (87,191) 4,835 9,751 – – – – – – – Eliminations (141,290) (141,290) (15,329) AED’000 156,231 14,941 (388) – – – – – – – – – – Consolidated (4,212,746) 4,800,475 2,769,644 2,671,857 1,925,179 1,728,773 7,147,881 (363,830) (253,292) (109,522) (103,978) (349,719) (165,491) 388,384 (374,751) 618,633 143,749 AED’000 114,638 (48,697) (15,258) 84,087 22,964 23,856 (3,096) – Profit for the year the for Profit Other income Finance costs income Finance Depreciation and amortisation andGeneral administrative expenses venture joint of disposal on Gain Depreciation and amortisation excluding revenue of Cost Segment profit Segment Provisions, impairments and and impairments Provisions, Selling and marketing expenses and associates from profit of Share – Over a period of time of aperiod – Over Revenue from customers external (ii) 31DECEMBER 2018 Share of profit from associates associates from profit of Share investment on loss value Fair and impairments Provisions, profit Gross chargeService expenses Other income Gross revenue Gross Inter-segment – Leasing time in – At apoint write downs, net write downs, net service joint ventures, net and joint ventures, net ventures, joint and net properties, Gross revenue of investment properties include AED 136,992 thousand of revenue from service charges. service from revenue of thousand 136,992 AED include properties investment of revenue Gross charge (ii)

development Property developmentProperty and 2,105,000 (1,491,306) 2,359,312 1,478,737 868,006 AED’000 and sales and 254,312 Property Property 610,731 management – – – – – – – Development management AED’000 15,000 80,746 (12,527) 68,219 68,219 65,746 – – – – – – – – Investment 1,391,144 properties 1,751,572 1,751,572 (223,436) (671,046) (136,992) AED’000 688,031 48,006 Asset management (87,126) 14,472 (7,419) – – – Hospitality Hospitality and leisure and (134,074) (518,667) 336,582 AED’000 278,760 616,161 97,494 29,416 (7,164) 819 – – – – –

(1,462,243) Adjacencies 1,661,363 1,479,561 AED’000 124,899 181,802 199,120 (75,014) 793 – – – – – – Eliminations AED’000 190,325 (182,621) (182,621) (9,820) 7,704 (2,116) – – – – – – Consolidated 3,986,889 2,350,606 1,854,864 6,286,533 (3,517,854) 2,631,687 1,751,572 (309,749) (671,046) (358,183) 548,072 (216,507) (136,992) AED’000 (85,440) 152,485 615,383 48,006 (13,635) (56,917) 30,319 79,735 6,869 1,857 –

Aldar Annual Report 2019 179 180 Financial Statements Liabilities Assets 2019 December 31 at As 39 31For year the 2019 ended December Notes to the Consolidated Financial Statements (continued) Capital Capital 39.1 The segment assets and liabilities and capital and project expenditures are as follows: as are expenditures project and capital and liabilities and assets segment The Project Project Liabilities Assets 2018 31 at December As Project Capital The Group operated mainly in one geographical segment, i.e., United Arab Emirates. Arab United i.e., segment, geographical one in mainly operated Group The 39.2 • • segments: between resources allocating and performance segment monitoring of purposes the For segment performance. of assessment and allocation resource of purposes the for Maker Decision Operating Chief the to reported measure the is This costs. finance and income finance losses, and gains other ventures, joint and associates of profits of share salaries, directors’ and costs marketing and selling administration, central of allocation without segment by each earned loss or profit the represents profit Segment 3. note in described policies accounting Group’s the as same the are segments reportable the of policies accounting The year’s presentation. current with match to reorganised been 2018 has for information Comparative operations). cooling and management facilities commercial and residential hotels properties, and leisure activities) and adjacencies (mainly education, construction, property/ development and management (develop, sell and manage development property projects), management asset namely (lease and manage retail, segments, major three into organised is Group the 2018, 2019 and 31 at December purposes, management For profitability. segment to addition in indicators performance key of range abroad and profit gross revenues, on based evaluated is performance Segment assessment. performance and allocation resource about decisions making of purpose the for separately segments operating Group’s the of results operating the monitors Maker Decision Operating Chief Maker. The Decision Operating Chief the be to considered Officer, Executive Chief by the regularly evaluated are that components those of basis the on established are segments operating Group’s The • • expenditures expenditures expenditures expenditures for which reportable segments are jointly liable are allocated in proportion to segment assets. segment to proportion in allocated are liable jointly are segments reportable which Liabilities for instruments. financial derivative and payables corporate than other segments reportable to allocated are liabilities all and segments; reportable by individual earned revenues the of basis the on allocated are segments by reportable jointly used Assets instruments. financial derivative and income comprehensive other through value fair at assets financial in investment ventures, joint and associates in investment assets, corporates than other segments reportable to allocated are assets all

SEGMENT INFORMATION INFORMATION SEGMENT BUSINESS SEGMENTS SEGMENTS BUSINESS GEOGRAPHICAL SEGMENTS GEOGRAPHICAL development 13,213,835 (2,885,323) Property development and 10,969,607 2,703,018 2,563,314 1,500,323 2,516,898 (1,876,126) AED’000 and sales Property Property management (CONTINUED) Development management 2,875,988 (2,911,411) (CONTINUED) (2,472,839) 2,312,197 AED’000 3,905 – – – 18,189,259 (7,422,137) 1,224,756 Investment (7,116,630) 17,712,381 properties AED’000 898,331 Asset management 49,822 – (1,132,190) 2,678,107 (1,086,522) Hospitality Hospitality 2,679,330 and leisure AED’000 341,610 94,152 – – 2,436,838 (1,251,952) Adjacencies (1,218,468) 2,274,276 AED’000 683,953 31,178 4,757 3,710 Unallocated 1,873,084 2,598,030 (712,460) (537,290) AED’000 2,187 8,739 – – Elimination AED’000 (2,116) (388) – – – – – (16,315,473) 41,266,723

38,543,705 (14,307,875) 2,830,535 3,796,732 2,584,447 AED’000 3,418,939 Group

Total LLC Cooling Saadiyat Group: the of subsidiaries owned non-wholly the of interests non-controlling material the of details shows below table The consolidated statement of cash flows as cash flows from financing activities. financing from flows cash as flows cash of statement consolidated Group’s the in classified be, will flows cash future or were, flows cash which for those are activities financing from arising changes. Liabilities non-cash and cash both including activities, financing from arising liabilities Group’s the in changes details below table The Pivot Engineering & Name of subsidiary 43 (iii) (ii) (i) sukuk and borrowings Bank 42 13) 8, (notes progress in work development and properties investment between Transfer 6) 8, (notes equipment and plant property, and properties investment between Transfer 9) (note borrowings bank to Addition Addition to investment properties (note 8) 9) (note venture ajoint of Disposal 41 35,000 thousand). generalOther and administrative expenses include social contributions amounting to AED 36,000 (2018: thousand 40 statement cash flows: cash statement consolidated condensed of activities financing and investing to relating transactions non-cash significant were following The Dividends payable Lease liabilities Derivative financial instruments Derivative financial (“SC LLC”) (“SC Co. (“PIVOT”) (WLL) ContractingGeneral

Others include finance costs incurred. costs finance include Others 9). (note acquisition of part as acquired 507,601 thousand AED include others under borrowings Bank flows. cash of statement borrowings of repayments consolidated and the in sukuk sukuk and and borrowings bank from proceeds of amount net the up make sukuk and borrowings bank from flows cash The NON-CONTROLLINGINTERESTS RECONCILIATION OF LIABILITIES ARISING FROM FINANCING ACTIVITIES OTHER GENERAL AND ADMINISTRATIVE EXPENSES ADMINISTRATIVE AND GENERAL OTHER NON-CASH TRANSACTIONS UAE place of business and principal incorporation Place of UAE (ii) Proportion of ownership interests non-controlling interests and voting rights held by 65.2 2019 (%) 85 1 January 2019 1 January 7,055,945 7,669,322 Balance atBalance 529,898 AED’000 91,701 (8,222) 2018 65.2 85 (%) Financing cash non-controlling interests Profit/(loss) allocated to 248,288 AED’000 AED’000 128,114 (59,323) (42,011) (77,121) (1,042) flows 2019 404 (i) adjustments Fair value value Fair AED’000 105,021 105,021 AED’000 2,969 2018 298 – – – Accumulated non-controlling 1,111,480 858,436 842,901 205,635 507,601 AED’000 AED’000 AED’000 771,976 113,670 41,804 24,453 Others 71,866 13,665 (8,918) 2019 2019 interests (iii) – AED 31 December 8,760,893 8,147,134 Balance atBalance 512,340 AED’000 AED’000 AED’000 90,659 172,589 10,760 41,400 131,189 25,700 4,672 2019 2018 2018

– – –

Aldar Annual Report 2019 181 182 Financial Statements The consolidated financial statements were approved by the Board of Directors and authorised for issue on 12 February 2020. February 12 on issue for authorised and Directors of Board by the approved were statements financial consolidated The activities operating from inflows cash Net year the for (Loss)/profit Expenses 44 activities investing from outflows cash Net Revenue Net assets Liabilities Assets The summarised financial information below represents amounts before intragroup eliminations. intragroup before amounts represents below information financial summarised The below. out set is interests non-controlling material has that subsidiaries Group’s the of respect in information financial Summarised 43 31For year the 2019 ended December Notes to the Consolidated Financial Statements (continued)

APPROVAL OF CONSOLIDATED STATEMENTS FINANCIAL NON-CONTROLLINGINTERESTS (CONTINUED) (189,609) (859,764) (920,971) (170,467) 750,504 947,705 AED’000 111,392 87,941 Pivot 2019 (321,455) 303,254 AED’000 (71,304) (18,201) 33,694 74,001 (2,979) 2,697 SC LLC SC 2019 (808,153) AED’000 816,684 (571,757) 169,981 741,738 (7,803) 5,678 8,531 Pivot 2018 (290,317) AED’000 281,194 (68,578) 70,563 (11,329) SC LLC SC (9,123) 7,039 1,985 2018 Aldar Annual Report 2019 183 184 Financial Statements

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