Good afternoon, everyone. This is Iyad Ghulam.

On behalf of SNB Capital, I would like to welcome you to an earnings call with MCDC Management regarding the full-year 2025 earnings results of the company. With us in the call today, Mr.

Mohammed Al-Nafea, the CEO, and Mr. Ahmad Jaber, the CFO.

We will first listen to the management feedback, following this we will open the floor to questions. MCDC Management, please begin with your feedback.

Thanks, Iyad. Before we start, I'd like to take you to our cautionary note.

In this presentation, we are going to be highlighting some plans, presentations, forward-looking estimations going forward, and they might not materialize based on these elements that are stated on this slide. Now with that out of the way, we'll hand over to our CEO, Mr.

Mohammed Al-Nafea.

As-salamu alaykum. Thank you, Ahmad.

Ramadan Mubarak and good afternoon, everyone. Thank you for joining us today.

We are happy to share our results with you, and I must say, this has been a year we are very proud of. Let me explain what made this year a time of growth and execution.

This year was really good for us. We reached over 1 billion riyal in total revenue for the first time in the company history.

Our hotel operation grows slightly even while we are renovating, showing that we can adapt and do well. We expand our rental space by over than 10%, more than 16,000 square meter, and we raised our average rent 7% to nearly 16,900 Saudi riyal per square meter, which shows strong demand.

Our mall leasing helped us a lot, with 15% increase in profit reaching 474 million riyal. This is the highest profit in the company history.

We kept strong financial position with low gearing ratio of just .4%, which gives us room to invest in the future. Our return on equity also improved by 2.3 points to 12.3%, showing we are providing good value to our shareholders.

Now turning to our hospitality operation, let me give you a closer look at how the segment performed during the year. Looking at hospitality operations, the segment delivers steady performance across the year.

Overall occupancy for the hotel and tower held stable at 83%, while our combined average daily rate rose 10% to 913 Saudi riyal per room, reflecting stronger pricing across both properties. That pricing strength translated into a 10% improvement in RevPAR reaching 775 Saudi riyal per available room.

Now an important update on the asset enhancement side. As many of you will recall, we have embarked on phased renovation program across our hotel and towers properties.

I'm pleased to report that the first phase covering four floors in the hotel, which commenced at the beginning of Q4, has been completed on schedule ahead of Ramadan season. This is significant because once the full program is rolled out, we expect to deliver incremental improvement to our RevPAR of around 10%.

The gains you are seeing today are before the full benefits of the investment come through. Now let me turn to what has truly been standout performer this year, our mall operation.

Now to our mall operation, and this is where the asset enhancement strategy really come to life. Occupancy remains nearly full capacity at 98.4%, and our available area has grown to over 17 17,500 square meters as we continue to create newly leasable space within the assets.

You will notice we still have around 1,400 square meters under development, which tell us that there are more to come in leasable area to reach over 16,100 square meter, up meaningfully from the prior year as completed project come online. The headline here is the pricing power.

Average lease rate reached nearly 16,000 16,900 Saudi riyal per square meter. That is 7% increase year-on-year.

To put that in perspective, the rate has grown by over 56% in just two years from around 10,800 in 2023. That trajectory is direct result of two things: our asset enhancement initiative and our ability to leverage the truly premium positioning our assets in the market.

The location advantage is something that combines over the time, and we are increasingly capturing that value in our lease rate. On the tenant mix, we made a deliberate strategic decision to reduce our anchor tenants from two to one, freeing up premium retail space overlooking Haram Plaza.

We then repositioned that space by bringing a unique high-quality tenants that are enhancing the overall visitor experience and driving footfall. Speaking of footfall, we are really proud to share that we exceeded 40 million visitors in 2025, which validate the direction we are taking with the tenant mix and the overall positioning of the mall.

These are not one-off gains. This is a programmatic approach to unlocking values from our asset, and there are still more runway ahead of us in development area completed and materialized.

With the foundation in place, let me now take you through how we plan to continue this journey of growth and value creation, starting with our hospitality segment. Starting with the hospitality, as I mentioned, we have successfully completed the first phase of our renovation covering four floors in the hotel.

That experience has given us valuable insight into the execution process. I'm pleased to share that based on this learning, we have made a decision to accelerate full renovation program.

Our revised target is to complete the entire scope by 2026, and some of it will be actually executed in 2027, significantly ahead of the 2029 timeline we had previously communicated. Once complete, we expect the renovation to deliver an improvement of around 10% to our overall RevPAR.

Accelerating the timeline means capturing the upside sooner. In terms of investment, overall capital expenditure is expected to remain with the 400 million Saudi riyal envelope we had originally planned.

The actual figure will be confirmed and announced once the contracts are awarded. In the execution, we are taking disciplined approach.

Work will be phased during the low season, that is window after Hajj through Ramadan, to minimize any disruption to our peak revenue period. I want to be clear, in the event of any slippage on the timeline, we have contingency plan in place to ensure both hotel and towers are fully operational for the 2027 Ramadan and Hajj season, with any remainings of the scope to be completed during 2027's low season.

We'll share more details of the execution plan during our Q1 earnings call. Now let me turn to our plans on the mall side, where we see equally exciting opportunity ahead.

Turning to our mall plan, and this is a story about creating significant value from within the existing footprint. First, we will continue to optimize the current mall layout with the target of reaching 18,000 square meters of leasable area within the existing structure.

The bigger development there is the redevelopment project we have already initiated. We are relocating prayer hall from the fourth floor to the newly constructed fifth floor, which will allow us to convert the entire fourth floor into food court.

This alone will add approximately 4,700 square meters of additional leasable space on the top of the 18,000 target. Importantly, this work began to carried out without disruption to the ongoing mall operation.

The estimated capital is around 60 million Saudi riyal, with targeted completion by the end of 2026, and the space to be fully operational in Ramadan 2027. Now let me put the economics of this project into perspective.

We estimate the additional rental revenue from this space at between 40 to 45 million riyal annually. That give us payback period less than two years on the investment, which in its own exceptional retail, but considering this income have generated from 60 million riyal investment is equivalent to what you would expect from an asset that value over 1 billion riyal.

That is the power of optimizing premium, well-located assets. Now speaking of the new opportunities, let me share with you our plans for the recently acquired land on Ajyad.

Now to a truly transformative opportunity for the company, our Ajyad development. As you may recall, we won the auction for this land in December 2025, and I'm pleased to confirm that we completed the purchase on January of this year.

We move swiftly to the design scope and has already been awarded, and we expect to award the main contractor construction contract by Q1 2027, with the asset targeted to be fully operational by 2030. In terms of what we are building, this will be a mixed-use development featuring four-star hotel with 2,000 keys and 16,000 square meter of commercial mall.

To put that in context, the mall part alone will essentially replicate the scale of our current mall operation, and 2,000-key hotels will be significant addition to our hospitality portfolio. The project represents the next chapter of our growth story, a natural extension of the expertise that we have built in operating premium assets in this market, and that meaningful expansion will have positive reflection in our revenue and earning profile.

With all of these initiatives in motion, from the hospitality renovation to the mall redevelopment to Ajyad, let me now show you how this all will come together and what's mean for the company profitability going forward. Let's bring it all together and look what this means for the company profitability.

We closed 2025 with the gross profit of 517 million riyal. Now each of this initiatives we just discussed will add meaningful layers on the top of that base.

Our ongoing mall optimization expected to contribute an additional 40 to 50 million Saudi riyal, the fourth floor redevelopment another 40 to 50 million riyal, the hotel and tower renovation once completed again in the range of 40 to 50 million riyal, and then Ajyad, which you can see is the single largest contributor, is expected to add approximately 250 million riyal to our gross profit once we reach to stable operation. When you add all of it, we see a clear path to gross profitability of around 900 million riyal.

That is nearly double where we stand today, and all driven by project that are already underway or have been committed to. I want to leave you with one final thought before I hand over.

Our balance sheet remain very strong, and we have the capacity to invest further beyond what we see on this slide. However, we'll remain disciplined.

Any future investment will need to meet our threshold and the right project with the right returns. With that, let me hand over to Ahmad Jaber, who will take you through the financial results in more details.

Thank you, Mohammed. Good afternoon, everyone, and thank you for joining us today.

I am pleased to walk you through our 2025 financial performance in more detail and share our outlook for the year ahead. Let me take you through the numbers in detail.

Starting with the top line, total revenue grew 28% to 1.072 billion riyal, and I want to unpack where that growth came from across our three segments. Makkah Hotel and Tower revenue came in at 462 million, up 4% year-on-year.

This was supported by the improvement in RevPAR that Mohammed highlighted earlier, though partially offset by softer food and beverage performance during the year. Our MCDC Mall delivered revenue of 272 million, up nearly 20%, driven by the combination of expanded leasable area and strong lease rate growth we have been achieving through our asset enhancement initiatives.

The Hajj segment saw the most significant top-line movement. Revenue more than doubled to 338 million, up 113%.

This was driven by a substantial increase in pilgrim volumes, with growth exceeding 600%. However, and this is an important distinction, the pilgrim mix shifted heavily toward B2B customers and away from the higher-margin B2C segment.

As a result, while the revenue contribution was significant, it did not translate meaningfully into profitability. That becomes clear when you look at gross profit.

Total gross profit grew 9% to 515 million riyal. The mall was the standout, with gross profit up 21% to 216 million.

Hotel and Tower contributed 284 million, up 3.3%. The Hajj segment, despite the revenue surge, saw gross profit decline to 15 million, reflecting that margin compression from the B2B-heavy mix.

Moving further down, EBITDA grew 14% to 531 million, and net income reached 474 million, up 15%. Earnings per share improved in line at 2.37 riyals.

On cash flow, we generated operating cash flow of 413 million, up 24%, while capital expenditure increased to 95 million as we began executing on our renovation and redevelopment projects. Free cash flow came in at 318 million, up 10%, demonstrating that even as we invest in growth, we continue to generate healthy surplus cash.

Finally, the balance sheet remains very strong, with a gearing ratio of just 0.4%, while return on equity improved significantly to 12% compared to 10% last year, reflecting the improving quality of our earnings. Overall, the company continues to demonstrate strong profitability, healthy cash generation, and a very disciplined balance sheet.

Now let me walk you through the key drivers behind our income growth in more detail. This slide breaks down the journey from last year's net income to this year's.

We started at 411 million riyal in 2024. Hotel and Towers contributed an incremental 4 million, a modest increase reflecting the RevPAR improvement offset by the softer food and beverage performance we discussed.

The real driver was the mall, adding 37 million to the bottom line. That is the direct result of expanded leasable area, stronger lease rates, and a tenant mix optimization.

Investment income contributed a further 22 million, bringing us to 474 million riyals in net income for 2025, a 15% increase or 63 million riyals in absolute terms. The message here is simple: our commercial mall operations are the engine of our profitability growth, and with the initiatives we have outlined, that engine has significantly more room to scale.

Now let me take you through our cash position analysis. Let's look at how cash moved through the business during 2025.

We entered the year with a cash position of 223 million riyals. Our operations generated 413 million in operating cash flow against capital expenditure of 95 million, giving us free cash flow of 318 million riyals.

During the year, we realized 793 million from the partial sale of our Jabal Omar shares along with other investment proceeds. We returned 295 million to our shareholders through dividends, reflecting our commitment to consistent and meaningful distributions.

We also deployed 927 million into Zakat-exempt government sukuk. This was a deliberate decision to optimize our Zakat profile and minimize the Zakat impact arising from the Jabal Omar share sale proceeds.

It's a move that serves dual purpose, keeping our capital in low-risk, Sharia-compliant instruments while preserving liquidity for our development pipeline. This brings our closing cash position to 95 million riyals at year-end.

Now, while the headline cash balance is lower, it's important to understand the context. The reduction is largely a result of the strategic redeployment of capital into government sukuk, which remain highly liquid and accessible.

When you factor those in alongside our minimal gearing, our financial position remains robust and well-placed to fund the growth plans we have outlined. With that picture of where we stand today, let me now share our guidance for 2026.

Now let me share our outlook for 2026 across each of our segments. Starting with hospitality, as you can see from the chart, we have laid out our quarterly RevPAR performance over the past two years.

The pattern is clear. There is a distinct seasonal profile, with the low season running from Muharram through to Sha'ban in the Hijri calendar.

For 2026, we expect RevPAR to broadly follow these historical seasonal trends, with some incremental growth building on the momentum we have seen in recent quarters. This is precisely the window we have chosen to execute our renovation program by taking floors offline during these lower-demand periods.

We protect our peak season revenue while accelerating the transformation of the asset. The number of available rooms will decrease during Q3 and Q4 as work progresses, but this is by design.

We will formally share the detailed execution plan and its expected financial impact during our Q1 2026 earnings call. Turning to the mall, we expect continued momentum.

Leased area is projected to reach approximately 17,650 square meters, with the average lease rate climbing to around 17,700 riyals per square meter. Both represent further progress from where we closed 2025 and reflect the ongoing benefits of our optimization and tenant mix strategy.

On our Hajj segment, we are planning for approximately 65,000 pilgrims, broadly in line with 2025 volumes. However, we are targeting an improvement in margins to the 5% to 6% range, driven by a combination of rebalancing the pilgrim mix and enhanced cost management efforts across the operation.

Taken together, 2026 will be a year of investment and positioning. There will be some near-term impact from the renovation, but every action we are taking this year is designed to unlock the significant earnings potential we showed you on the value creation road map.

Before we open the floor, I'd like to leave you with this: 2025 was a year of strong financial delivery, and 2026 will be the year we lay the groundwork for the next step change in our earnings. The investments are funded, the plans are in motion, and we remain committed to creating long-term value for our shareholders.

With that, we are happy to take your questions. Thank you.

Eyad, we can start the Q&A session.

As-salamu alaykum.

Wa alaykumu

s-salam, Sultan. Awwal shay, congratulations ala al-results, wa Akhi Mohammed, just a couple of questions from my side.

One, which is related to the ADR post-renovation or the RevPAR post-renovation. The guidance is 10%.

Do you see upside beyond the 10%, ya'ni from either stronger demand, walla inno new buildout are coming at higher cost, they require higher ADR to justify al-investment? Fahal tshouf mathalan ba'd sanatayn we might see repricing in the market?

I think good question. Tab'an, what we shared with you is what we call the minimum improvement.

We think it will be higher than 10%. So 10% is more of a conservative, I would say, assumption.

Talking about supply, ya'ni I always try to look at Makkah market in different segments. We have segment that's surrounding Haram, which have a different pricing, different seasonality profile, different customer mix.

When you talk about Haram, ya'ni I'm not aware of significant supply will come in the coming 3, 4 years.

Ruaa Haram?

Ruaa is basically you will be able to construct after 2, 3 years in their area close to Sheb, Mahattat Sheb Amer. The main plots, which is the King Salman Gate, you have to wait 3 to 5 years, I think, to start construction in that side.

Most of the supply will be residential. There are two development in Masar, beginning of Masar, but I do see the main supply coming on the market is mainly from S4 in Jabal Omar.

We saw Rotana coming online with the 600 keys, around 600 keys in Q4, December to be precise, and there are, I think, another properties under Sofitel, it's around 1,000 key or so, will come later on this year. We observe market absorb around 2,400 key and we saw growth in revenue and ADR last year and the year before with Address coming online and Jumeirah.

I think there are a few targets, ya'ni number of visitors expanding, duration is target to expand, I think, from 6, 5 days to 7 and a half days. All of those factors will help to drive ADR and RevPAR in the central area.

Renovation for sure will position ourself to get higher ADR, higher RevPAR, because ya'ni I would say our location is the one of the best locations in the world, and it's one of the closest hotels or complex to Haram.

Okay. Ya'ni, follow-up bas ala al-nuqtah hadhi, is it fair to assume ADR will increase by an average 8% to 10% for the next 5 years giving al-tightness in supply wa al-increase wa al-targets that we have for al-number of visitors li-Makkah?

Ya'ni,

for this segment, yes. I think it will grow.

Ya'ni, we don't usually give specific number growth target, but it's the

market Compound? You will,

yes. Ya'ni what we saw is a strong growth despite the additions of strong supply in the same segment, as mentioned Jumeirah and Address, around 2,400 keys, and market is very strong, and expectation is to see strong demand also.

Now, you will see some events like what is happening now as a result of conflict between Iran and US and Israel. That ya'ni will have some impact, but this is a more of not fundamental, I would say, issue.

For example, this year, you may end up not having as strong as the growth that you see last year, but it's driven by this event, because it impacted high season like Ramadan. Overall, I'm optimistic about the demand growth.

I don't see significant supply coming on stream in the coming 4, 5 years, especially in our segment. I'm optimistic about strong ADR growth, and I'm optimistic about strong RevPAR growth as a result of our renovation.

Wadeh. Allah ya'teekum al-afiyah.

Just one last question ala mawdoo' al-expansions. Should we expect, ya'ni, another expansion beyond Ajyad, walla inno at the moment, nothing's on the table?

La, wallah,

there are multiples opportunities that we are looking at, but they did not yet reach advanced stage where we can communicate to you. Giving our strong balance sheet, giving the market fundamental, giving the expertise that we have, I think there will be more to come.

What we outline is the confirmed, committed project with clear financial and capital cost.

Wa al-project you're reviewing in Makkah, walla other cities?

Wallahi, we're focused now in Makkah, but we are also looking at Madinah.

Okay.

It's following the same trend that Makkah follow, but Madinah also does have a stronger supply shortage than Makkah, and we're looking at Madinah trying to assess. It's a one journey.

People mostly come to Makkah and they try to, especially in the Umrah season, go and visit Al-Madinah. We have good expertise, we're looking at Al-Madinah, but most of our focus in Makkah because we think Makkah is really good market, and we want to be focused in Makkah.

Muwaffaqeen, Akhi

Muhammad, wallah ya'teekum al-afiyah, wa al-ashr alaykum mubarak. Alayna wa alayk, insha'Allah.

Thank you so much. We have a question here from Raghad Al-Dhehaiby from ANB Capital.

She's asking: Is the expected improvement to 900 million is on a gross profit or rental income? I think she was referring to the slide that you have mentioned before.

The gross profit.

The gross profit. Until we wait for other questions, I have a question from my end regarding the current situation.

How does it look like? Does it impact your ADRs, utilization, occupancy rates?

Because as far as I know, a lot of flights are canceled, and some ya'ni Umrah pilgrims are staying still in Makkah. I don't know how did it look like, especially that Ramadan is the most important season for you.

Absolutely. Ya'ni, Ramadan is the most important season.

Ya'ni, we did quick calculation, potential impact for what is happening, but still it's not clear because we do see cancellation happening as we go. Before we talk about the event, let me talk at the beginning of the year.

January, we started with very strong number. February was also strong, and the first 10 nights of Ramadan was one of the best since Corona.

It was really impressive. We start looking at rate that is really significant and it was packed, a lot of people in the commercial center, and it was really great.

Ya'ni, this is first telling you the fundamental of Makkah market, Umrah market, it's very strong. Then we had this event and a lot of cancellation, even non-refundable, we had to refund because this is a force majeure.

Utilization dropped to the 50, 70s in the middle 10 nights and especially in the hotel. Tower, we have more of a contract, we managed to sustain, and then we saw good recovery the last 10 nights.

We did quick calculation, I think there will be impact if you compare quarter-over-quarter, around 5% lower on a return from the hotel and towers, because we managed to get higher income in January, February, first 10 nights, and we had some drop in the middle and slightly in the last 10 nights. It's really sad, but it's not significant impact, especially when we know that we have a strong growth in the commercial center, we have very good other incomes as a result of the sukuk that we have, and I think it will be positive.

The Q1 will be positive, and hopefully this situation will be ya'ni resolved soon. After Ramadan, we will have visitors typically from Asia, from Turkey, hopefully this will not be impacted, and hopefully in the coming few weeks, the situation to be solved, insha'Allah.

For those—because as I'm reading, some people who are, especially from the GCC, who could not go back, the government is said that they will pay for the extension of their stay. Do you have a lot of these kind of clients?

Wallahi, the majority of them, they actually book less expensive hotel in area in Makkah and Jeddah. We heard that some of the embassy, they book standalone hotel close to Al Rajhi Mosque in Makkah and I think in Jeddah.

They actually checked out, ya'ni nobody stayed with us because it's a very expensive rate and emergencies. There are some customer who elect to stay longer and pay from their own pocket.

Clear. Thank you so much.

The next question comes from the line of Maan from NBK Wealth. Maan, please go ahead.

Yes, hi. As-salamu alaykum.

Am I audible?

Yes, you are. Wa alaykumu

s-salam, tfaddal. Ya'teekum al-afiyah.

I'd like to thank you for the presentation and the good results. My question regarding the food and beverage segment within the hotel segment: how much does it represent in 2025 versus 2024, and what is the impact on margin from the decline of this segment?

Thank you.

In 2025, it came at about 14% of the hotel itself. The prior year, it was a couple of percentage points higher.

Now, it's not that much of a big of an impact. You're talking about a drop of around 10 million Saudi riyals in a ballpark.

We don't have the exact figure, but you will be able to see it in the annual report once it's released.

What's the reason for this decline? Why there is decline in the food and beverage within the hotel?

It's mostly because of contract related to Hajj. During Hajj, tab'an you have multiple groups, and the groups basically some of them require that you supply them food, some of them they arranged with different caterings, and we had to had different group in the Hajj.

It's mostly because of Hajj. Makkah food is a by-product of accommodation.

It's not ya'ni, I would say it's part of the accommodation from reservation. Now, Hajj is exception because some group they come and they demand certain services to them, and this is the main driver.

Now we're putting more focus this year in food, and hopefully we'll have a higher margin, better profitability, insha'Allah.

Okay. Thank you.

Thank you, Maan. The next question is from the Q&A box from Mohammed Al-Anqari from Al Rajhi Capital.

He's asking: Since renovation has already been completed on four floors, how many floors are still remaining, when do you expect the renovation to be fully completed, and what is the estimated capex that will be spent?

Tayyib. We're still working in the plan, and we will communicate full detail in Q1.

We have two options: either we do what we have done in the hotel, full renovation since we haven't done renovation since long time, or we do face-lifts, which change furniture and some wallpaper and other materials. We're thinking of doing that approach, which is the face-lifts approach, with the towers, and doing full renovation for the hotel.

What is remaining in the hotel, 18 floors to be executed, but we will have a 4, 5 groups instead of having one group to handle the four towers, and we will have instead of one window, we'll have two to three windows because we started late for the four-floor execution process. Now towers, if it's only furniture, it will be quick basically and easy.

The cost we saw in the hotel more than 200,000 per room. Furniture may take cost 80, 70,000 if you do furniture only.

If you do hybrid, you will be in the middle. We have around 1,300 room left.

Ya'ni, if you use 150 average, we communicated around 400 million.

That was the Ya'ni,

the budget is 400 million, but we are trying to optimize the scope. Ya'ni, this is the objective.

If you want exact, precise number, you will get it in Q1, hopefully, but it will be around 400 million or less. This is the objective.

At least, thank you. We have a follow-up question from Sultan Al-Hudaif from Hassana.

The follow-up is: Just to clarify, given the tight in supply ADR in five-star around Al-Haram, should we see high single-digit growth annually through 2030?

I think we answered this question. Ya'ni, we're saying that we're optimistic, supply is limited, so that this is the expectation.

Clear. Thank you.

Ladies and gentlemen, just a reminder, if you have any follow-up questions, please raise your hand or type in the Q&A box. We have one more question in the Q&A box from Ambreen Jiwani from Aegis Capital.

She has a question: If B2B margins are so low, why did you choose to go that way? I think she's referring to Hajj segment, yeah.

Yes. Clear.

B2C segment is So so let's begin from the So Hajj is very regulated business, and there are quota between companies, and you cannot do all B2C. They assign dedicated quota for you, and you deliver, and they increase as you go.

It will take you time to grow B2C and B2G segment. This is, honestly speaking, the focus, B2C, B2G, and certain service we provide to certain group, this is the objective, but it's a full offering, you have to do B2B.

Now, when you start the B2B business, you have to to acquire market share, you have to lower your margin. The objective now is is to do more B2C as we grow this year, we're trying our best.

We are also looking at other group and trying to improve the B2B margin, because to distinguish yourself, you have to do something extra. If the minimum standard by the package for Hajj is X, you have to do X plus to acquire market share, and that's why it's it's a little bit challenging.

To grow the overall business, you have to grow overall mix, and because we are just starting Hajj, I think the B2B margin is low, but it's the volume in B2B, and we have to be in the B2B, and the focus now is to optimize the margin in B2B.

Thank you. Another follow-up from Sultan: What was the reason for lower occupancy rate in 2025 versus 2024, and what was the occupancy rate in Q4?

The main reason of the drop in occupancy is the renovation that the rooms were taken off for renovation. That was the reason.

For Q4, I think we have

We don't have single Q4 occupancy.

We don't have single We didn't prepare yet the data for Q4 occupancy. Maybe we can share it later.

Makkah market evolving now around three seasons. It used to be two seasons, which is Ramadan and Hajj.

Now it's Ramadan and Hajj and the new year, because the weather is really good, a lot of highly paid individual, high spender, they come and basically from Western country and Asian country come and spend. Seasons really three basically season.

The lowest season we have the summer, usually. The lowest period is basically the time before Hajj.

Okay. We have a few questions from Mohammed Khan from Alinma Capital.

His questions are: Why the cost of revenue increased significantly for hospitality business, and what is the outlook for future for cost of revenue for hospitality? I will give you the other questions because he listed five questions.

I think there are some growth, but it's not significant. We have some charges related to electricity, but we solved the issue, no significant cost overrun, and we don't expect there will be a significant cost increase.

Second question?

The second question: What is the outlook for future of cost I think his

question about dividend.

Dividend.

Dividend payouts, why it's dropped.

There's another question about the Jabal Omar shares.

Tayyib, dividend payouts, why it's dropped: it's because now we have a very good pipeline of projects. We elect to keep it similar to the previous year, but with those projects coming on stream, you expect the dividend to see hopefully increasing.

We are looking now an exercise, we want to come up with a guidance for dividend, either we pay put payout ratio or free cash flow ratio, but we're doing this exercise internally, and it will be communicated, it will be part of the guidance for future year. The last question:

Are there any plans for divesting the remaining shares in Jabal Omar?

There are no plan now. We sold what we sold, and The logic behind what we have done is very simple.

We have a very good market today. We want to really grow our business, and we had a really good liquidity event to divest some of our shares in Jabal Omar, and we managed to exit, and now we will be utilizing this capital to grow the company and create value to our shareholders.

There are no plan or decision to divest more.

Clear. Thank you.

Ladies and gentlemen, just a final reminder, if you have any more questions, please raise your hand or type in the Q&A box. We have one more question from the line.

Please identify yourself and your company, and please go ahead.

Hi, am I audible?

Yes, you are.

This is Haya from NBK Wealth. Congratulations on a good set of results, wa ya'teekum al-afiyah.

Just given the recent regional tensions, we already talked about this, but if you could just elaborate more. Currently, are you guys taking any precautionary operational or financial measures?

Wa la samah Allah, if Hajj demand were to be affected, what actions would management do to support the occupancy, and would this affect your guidance and outlook?

Tayyib. I tried to provide guidance regarding Q1, the impact is very minimum, it was 5%, 6% and quarter-over-quarter.

This is Q1. Now it's a conflict, we don't really can predict what will happen and what is the level of escalation.

For example, to risk 5%, we had to do some cost optimization, we have to launch campaign to bring more local to the hotels, we have to take proactive measure and, for example, sign few contracts with certain provider. We do have a, I would say, crisis management team who work and try to sustain, and the outcome is clearly by only reduction of 5%, potential reduction of 5% in the hotel segment year-over-year.

We will see growth, insha'Allah, in other segments, and that will offset and increase the overall result. This is talking about what we saw Ramadan.

After Ramadan, the feeder market is not the GCC market. You will see people coming from Indonesia, from Turkey, and hopefully those markets will not be impacted, and Makkah is a little bit far from GCC, you don't see issues, insha'Allah, in Jeddah Airport and in Makkah as we speak.

Now also Hajj is, when you talk about Hajj in term of volume, exposure to GCC countries is limited because the volume is mostly coming from other countries, hopefully there will be no significant impact. The only things ya'ni make things difficult, especially in the Ramadan, there are heavy reliance on GCC market in Ramadan season.

It's very expensive. Most of the people come to you either they come from Saudi, from Kuwait, from Qatar, from UAE, where they have purchase power, they can afford paying very for very expensive night.

That's what make Ramadan impact a little bit difficult. As I mentioned, we, alhamdulillah, we manage it well, and hopefully things will improve and we will see, insha'Allah, good recovery.

Okay. Thank you and good luck.

One last question from Ambreen: Are you seeing interest from foreigners to buy land or hotels in Makkah?

Wallahi, we do see ya'ni, this is one of the things that I got one question regarding the opportunities, looking at some lands to be to participate with consortium master development program to some of the lands. We do see appetite.

I think you saw, I think Indonesian sovereign fund signed agreement, I think MoU with Masar and Thakher, and they also signed similar agreement with us, non-binding MoU. There are interest from foreigners.

I think also people from Turkey, I hear talked to multiple investors. Now still waiting for the zoning to be clear and clarify the regulation, and after that you will see how basically market really react to lands purchase or purchase of finished products like apartment or so on.

Thank you so much. I think that was the last question.

Do you have any final remarks?

Wallahi, now I would just highlighted it was really great year. We focused from day one in improving the existing asset, and it clearly have a positive impact in financial, and we're bringing the right projects, right location, right retail, and, alhamdulillah, we have a really impressive balance sheet, good track record, good operational capability, and we're looking at lot of opportunities where we can deliver significant value beyond the 900 million that was demonstrated in this presentation, and objective is to maximize shareholder and meet demand of visitors to the holy city, Makkah, Madinah.

Thank you very much, and Ramadan Mubarak wa ashr Mubarak.

Thank you so much. SNB Capital would like to thank MCDC Management for taking the time to conduct this call.

We would like also to thank all participants for attending. Thank you so much.