April 10, 2019

The General Assembly of the AC Approved the Financial Statments and the Closing Accounts for 2017/2018 and the Draft Budget for 2019/2020

El Gazzar: "the Arab Contractors Company is a strong entity and the government depends on it in the implementation of the mega national projects in all fields". The General Assembly of the Arab Contractors Company, headed by Dr. Assem El Gazzar – the Minister of Housing, Utilities and Urban Communities, approved the financial statements and the final accounts for the fiscal year 2017/2018. Besides, the approval of increasing the issued and paid up share capital of the AC from 6.1 billion EGP to 6.5 billion EGP; and approved the company's draft budget for the fiscal year 2019/2020. During his address to the General Assembly, Dr. Assem El Gazzar – the Minister of Housing, Utilities and Urban Development said: "I would like to state the government commitment towards its ambitious program to elevate the living standard of the Egyptian citizen through providing his requirement of appropriate housing, roads, bridges, water and wastewater…etc. which reflected in the continued growth of the work of the national projects, and the occurrence of a boom in the growth rate of investment spending on these projects which means the necessity for investment arms in the contracting sector for implementation. The Arab Contractors Company is one of the most important of these investment arms with accumulated experience and a great record of well-known achievements. It is a strong entity on which the government depends on the implementation of its mega national projects in all fields. The Minister added that we expect the company more progress, success and a greater role in the national projects in regard to the huge investment amount which is implementing by the government in different sectors and fields.
The Minister of Housing declared that there are many positive aspects achieved by the company activities. For example, in the projects fields, we will not listing the giant national projects executed by the AC according to its time schedule and the required standards; these projects which for the benefits of the citizens in the fields of: (housing - water and wastewater – roads – bridges – tunnels – ports…etc.); in addition to the company participation in the implementation of what is required to manage crisis in any phase. Besides, the added value of the company in providing business opportunity added to the manpower of the society; the total number of the company employees is about 70000 workers. He added that regarding the company existence abroad; the company has a prominent role whither on economic or political level. Concerning the financial results the company achieved many positive financial results for the fiscal year 2017/2018. The Minister concluded his speech by stating that the government is keening on the continuation of the company's success and support it to overcome all the obstacles and challenges hindering its growth way, in order to achieve the proper management of the government's assets as a wholly owned company and one of its most important companies in the implementation of the national projects throughout the successive governmental economic and social development plans. Eng. Mohsen Salah – CEO and Chairman of the Arab Contractors Company exploring in his speech the most important results achieved by the company during the fiscal year 2017/2018, where the target plan was achieved and approved by the General Assembly of the company. The revenues of the company activity achieved 22.089 billion EGP with a growth rate 9.4% which resembled 129.9% of the target plan.
Eng. Mohsen declared that these results reflect the good performance of the company in its projects and enhancing its position and leading role in the Egyptian contracting sector. This is clear through the company participation in the implementation of most of the national projects (New El Alamein – New Administrative Capital – Rod El Farg Axis – Suez Canal Tunnel – Greater Cairo Metro - …etc.). Eng. Mohsen Salah said that the company is keen to implement the project with a very small profit margin, believing in operating under the prevailing economic conditions in the country, which casts a shadow on the low levels of profitability of the activity and the company continued this year to strengthen its regional existence through the progress of the appropriate international projects in order to gain new business opportunities, knowing that the business indicators in these countries reflecting the intensification of competition from international companies that started to work in these markets, but the company overcame this by developing its executive performance, and increase the execution quality.
Eng. Mohsen Salah said that despite these challenges, the company achieved another year of growth and profitability as the company continued its operational performance to meet the challenges through sustained and ambitious work to maintain the name and reputation of itself at the national and international level.The company also scheduling the social insurance due on 1/7/2018 and paid about 1 billion EGP for the social insurance for the duration from 1/7/2018: 31/3/2019.The Chairman pointed out that the most important results achieved by the company during the fiscal year 2017/2018 are as follow: the work volume reached 22.089 billion EGP compared to 20.192 billion EGP in the previous year with an increase of 9.4%. The work volume abroad reached 3,314 billion EGP versus 4.798 billion EGP in the previous year with a decrease of 1.484 billion EGP (equivalent to 31% of the previous year) which is the result of the completion of 2 projects in Kuwait: Sheikh Jaber Al Ahmed Al Sabah Hospital and the maintenance of Jahraa roads, axis and drainage; they are the most important projects executed by the company abroad.

In addition to these, the company equity (public shareholding of the company) increased from 8.433billion EGP in 30/6/2017 to 8.951 billion EGP in 30/6/2018. The company's share capital from the previous year profits and the profits achieved during the fiscal year 2017/2018 increase with an amount of 400 million EGP. He added that during the fiscal year 2017/2018, the company paid the following cash-liabilities: the suppliers' payment is 7.272 billion EGP - 6.166 billion EGP for the subcontractors' overdue - 3.618 billion EGP net salaries for the employees - 1.376 billion EGP- 432 million EGP for the installments and social insurance scheduling through the year until 31/3/2019 - commissions and bank expenses is 432 million EGP - 258million EGP for the medical treatment profit -26 million EGP for the governmental bonds.

Eng. Mohsen during his talk about the company’s future vision said: "I would like to point out that the company's slogan is to sustain its achievements and to be one of the leading companies in the contracting sector by being committed to the time schedules and quality standards while maintaining the safety and occupational health of the employees in these projects, with the vision of sustainable development of its market share in the contracting sector, it aims to continue growth in the turnover. The company has decided to continue the trend in several axes to achieve this, the most important of which is (maximizing the company's competitive capabilities - maximizing the utilization of the company's physical, human resources and equipment - achieving professional security and psychological and financial stability of the employees -continuing to raise the efficiency of the employees of the company through the diversification of training programs that are consistent with the requirements of the company work– linking between the investment spending on productive assets with the actual needs of projects inside Egypt and abroad). Eng. Mohsen Salah - Chairman of the AC thanked Dr. Assem El Gazzar – the Minister of Housing, Utilities and Urban Development for his continuous support for the company, besides he thanked the representatives of: the Accountability State Authority, the ministries of: housing – finance-planning, the National Investment Bank, Information Center of the Cabinet for their support to the company to continue and achieve its economic objectives. He thanked the company employees whom exhorting their best efforts to serve Egypt. The assembly was attended by Eng. Khaled Abbass – Deputy Minister of Housing for National Projects, Eng. Nafisa Hashim - First Undersecretary of the Ministry of Housing, Eng. Sayed Farouk –Senior Vice Chairman, Eng. Emam Afify and Mr. Hossam Imam – the Vice Chairmen, the Board Members: Dr. Onsy El Beshouty – Eng. Tarek Sakr – Eng. Eman Soliman –Eng. Hossam El Reefy – Eng. Ahmed El Assar –Dr. Mohammed Youssef – Eng. Ahmed Abbass – Mr. Mohamed Mahmoud Eletreby – Mr. Mahmoud Montasser; a number of the head of the executive sectors, the managers of branches and departments, Mr. Abdel Ghafar El Watedy – Assistant of the Board Member for the Financial Affairs, Mr. Samy Fahmy – Manager of the General Department for the Financial Affairs and Logistics, Mr. Moussa Aly Moussa –Manager of the General Department for the Human Resources, Mr. Hesham Khalifa –Head of Budgets and Financial Systems, Mr. Ayman Sayed – Manager of the Budgets Department and Mr. Emad Awad Allah – Manager of the Document Management.