Full Year Financial Results 2025

KPMG

Zone 25 C Ring Road Street 230, Building 246

P.O Box 4473, Doha State of Qatar

Telephone: +974 4457 6444

Fax: +974 4436 7411

Website: kpmg.com/qa

Independent auditor's report

Opinion

We have audited the consolidated financial statements of Aamal Company Q.P.S.C. (the 'Company') and its subsidiaries (together the 'Group'), which comprise the consolidated statement of financial position as at 31 December 2025, the consolidated statements of profit or loss and other comprehensive income, changes in equity and cash flows for the year then ended, and notes, comprising material accounting policies and other explanatory information.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at 31 December 2025, and its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (IFRS Accounting Standards).

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code), as applicable to audits of the financial statements of public interest entities, together with the ethical requirements that are relevant to our audit of the consolidated financial statements in the State of Qatar, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matter

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

1

KPMG, Qatar Branch is registered with the Ministry of Commerce and Industry, State of Qatar, and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. The KPMG name and logo are registered trademarks of KPMG International.

Key Audit Matter (Continued)

Other Information

The Board of Directors is responsible for the other information. The other information comprises the information included in the Company's Annual Report, but does not include the consolidated financial statements and our auditor's report thereon. Prior to the date of this auditor's report, we obtained the report of the Chairman which forms part of the Annual Report, and the remaining sections of the Annual Report are expected to be made available to us after that date.

Our opinion on the consolidated financial statements does not cover the other information and we do not and we will not express any form of assurance conclusion thereon as part of our engagement to audit the consolidated financial statements. We have performed assurance engagements on the internal controls over financial reporting and the Company's compliance with the provisions of the Qatar Financial Markets Authority's Governance Code for Listed Companies that forms part of the other information and provided a separate assurance practitioner's conclusion thereon that is included within the other information.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

If, based on the work we have performed on the other information that we have obtained prior to the date of this auditor's report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Board of Directors for the Consolidated Financial Statements

The Board of Directors is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRS Accounting Standards, and for such internal control as the Board of Directors determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, the Board of Directors is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Auditor's Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.

• Conclude on the appropriateness of the Board of Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

• Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the Group as a basis for forming an opinion on the group consolidated financial statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion.

We communicate with the Board of Directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the Board of Directors with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.

From the matters communicated with the Board of Directors, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal Requirements

As required by the Qatar Commercial Companies Law No. 11 of 2015, whose certain provisions were subsequently amended by Law No. 8 of 2021 (""amended QCCL""), we also report that:

1. We have obtained all the information and explanations we considered necessary for the purposes of our audit.

2. The Company has maintained proper accounting records and its consolidated financial statements are in agreement therewith.

3. We have read the Chairman's report to be included in the Annual Report, and the financial information contained therein is in agreement with the books and records of the Company.

4. Furthermore, the physical count of the Company's inventories was carried out in accordance with established principles.

   
   
   

5. We are not aware of any violations of the applicable provisions of the amended QCCL or the terms of the Company's Articles of Association having occurred during the year which might have had a material effect on the Company's consolidated financial position or performance as at and for the year ended 31 December 2025.

   26 February 2026 Gopal Balasubramaniam

   Doha KPMG

   State of Qatar Qatar Auditors' Registry Number 251

   Licensed by QFMA: External Auditors' License No. 120153

   
   
   

   Aamal Company Q.P.S.C.

   Consolidated statement of financial position As at 31 December 2025

   In Qatari Riyals

   Assets

   Notes

   2025

   2024

   Non-current assets
   Property, plant and equipment	3	457,078,817	405,342,070
   Investment properties	4	7,560,704,045	7,135,738,978
   Right-of-use assets	5.1	22,289,251	35,048,556
   Equity-accounted investees	6	487,487,143	491,927,424
   Retention receivables	7	341,775	1,057,980
   Total non-current assets		8,527,901,031	8,069,115,008
   Current assets
   Inventories	8	204,013,942	243,148,347
   Investments at fair value through profit or loss	9	7,945,186	8,228,943
   Trade and other receivables	7	556,455,829	680,081,739
   Amounts due from related parties	10	258,168,355	143,113,128
   Cash and cash equivalents	11	187,137,406	202,960,953
   Total current assets		1,213,720,718	1,277,533,110
   Total assets		9,741,621,749	9,346,648,118
   Equity and liabilities
   Equity
   Share capital	12	6,300,000,000	6,300,000,000
   Legal reserve	13	798,757,458	763,750,936
   Retained earnings		1,305,447,608	1,286,204,826
   Equity attributable to owners of the Company 8,404,205,066			8,349,955,762
   Non-controlling interests	12.1	903,896	7,891
   Total equity		8,405,108,962	8,349,963,653
   Liabilities
   Non-current liabilities
   Borrowings	14	659,238,894	210,871,068
   Lease liabilities Deposits from tenants Employees' end of service benefits	5.2 15	16,640,452 10,085,353 34,907,907	24,437,919 10,528,939 33,056,777
   Total non-current liabilities		720,872,606	278,894,703
   Current liabilities
   Borrowings	14	173,725,616	167,182,748
   Lease liabilities	5.2	9,666,143	16,447,971
   Trade and other payables	16	389,591,282	484,364,354
   Amounts due to related parties	17	42,657,140	49,794,689
   Total current liabilities		615,640,181	717,789,762
   Total liabilities		1,336,512,787	996,684,465
   Total equity and liabilities		9,741,621,749	9,346,648,118

   
   
   

   The consolidated financial statements were authorised for issue by the Board of Directors on 26 February 2026 and were signed on its behalf by:

   
   
   

   She-i:k--h Mohamed B--i.n "F--aisal Al Than-i-Vice Chairman and Managing Director

   Ras Bin Ali Al Mansoori Chief Executive Officer

   
   
   

   st h

   tY

   For lda ification

   
   
   

   The notes on pages 10 to 59 are an integral part of these consolidated financial

   Aamal Company Q.P.S.C. Consolidated statement of profit or loss and other comprehensive income For the year ended 31 December 2025 In Qatari Riyals

   	Notes	2025		2024
   Revenue	18	1,995,567,497		2,100,838,220
   Cost of sales	19	(1,480,907,431)		(1,585,434,088)
   Gross profit		514,660,066		515,404,132
   Other income - net	20	38,123,350		47,196,102
   Marketing and promotion expenses		(12,025,608)		(9,647,104)
   General and administrative expenses	21	(166,941,154)		(162,698,009)
   (Allowance for) / reversal of impairment of financial assets	7,10	(8,416,098)		1,888,304
   Operating profit for the year		365,400,556		392,143,425
   Finance income	22	5,186,399		2,497,668
   Finance costs	22	(33,272,604)		(34,317,194)
   Finance costs - net		(28,086,205)		(31,819,526)
   Share of profit of equity-accounted investees		107,618,352		71,684,526
   Profit before tax		444,932,703		432,008,425
   Income tax expense		(704,079)		(523,760)
   Profit for the year		444,228,624		431,484,665
   Other comprehensive income		-		-
   Total comprehensive income for the year		444,228,624		431,484,665
   Profit for the year attributable to:
   Owners of the Company		443,332,619		432,547,738
   Non-controlling interests		896,005		(1,063,073)
   		444,228,624		431,484,665
   Total comprehensive income for the year attributable to:
   Owners of the Company		443,332,619		432,547,738
   Non-controlling interests		896,005		(1,063,073)
   		444,228,624		431,484,665
   Basic and diluted earnings per share
   (attributable to owners of the Company) (expressed in QR per share)	23	0.07		0.07

   
   
   

   The notes on pages 10 to 59 are an integral part of these consolidated financial statements.

   Aamal Company Q.P.S.C. Consolidated statement of changes in equity For the year ended 31 December 2025 In Qatari Riyals

   Attributable to owners of the Company

   Non-controlling interests

   	Share capital		Legal reserve		Retained earnings		Total				Total equity
   Balance at 1 January 2024	6,300,000,000		731,812,949		886,897,567		7,918,710,516		42,582,165		7,961,292,681
   Profit for the year	-		-		432,547,738		432,547,738		(1,063,073)		431,484,665
   Other comprehensive income	-		-		-		-		-		-
   Total comprehensive income for the year	-		-		432,547,738		432,547,738		(1,063,073)		431,484,665
   Acquisition of non-controlling interest (Note 33)	-		-		9,511,201		9,511,201		(41,511,201)		(32,000,000)
   Transfer to legal reserve	-		31,937,987		(31,937,987)		-		-		-
   Contribution to social and sports fund (Note 28)	-		-		(10,813,693)		(10,813,693)		-		(10,813,693)
   	-		31,937,987		(33,240,479)		(1,302,492)		(41,511,201)		(42,813,693)
   Balance at 31 December 2024	6,300,000,000		763,750,936		1,286,204,826		8,349,955,762		7,891		8,349,963,653
   Balance at 1 January 2025	6,300,000,000		763,750,936		1,286,204,826		8,349,955,762		7,891		8,349,963,653
   Profit for the year	-		-		443,332,619		443,332,619		896,005		444,228,624
   Other comprehensive income	-		-		-		-		-		-
   Total comprehensive income for the year	-		-		443,332,619		443,332,619		896,005		444,228,624
   Transfer to legal reserve	-		35,006,522		(35,006,522)		-		-		-
   Contribution to social and sports fund (Note 28)	-		-		(11,083,315)		(11,083,315)		-		(11,083,315)
   	-		35,006,522		(46,089,837)		(11,083,315)		-		(11,083,315)
   Transactions with owners in their capacity as owners
   Dividends (Note 27)	-		-		(378,000,000)		(378,000,000)		-		(378,000,000)
   Total transactions with owners	-		-		(378,000,000)		(378,000,000)		-		(378,000,000)
   Balance at 31 December 2025	6,300,000,000		798,757,458		1,305,447,608		8,404,205,066		903,896		8,405,108,962

   
   
   

   The notes on pages 10 to 59 are an integral part of these consolidated financial statements.

   8

   	Notes	2025		2024
   Cash flows from operating activities
   Profit for the year		444,228,624		431,484,665
   Adjustments for:
   Depreciation on property, plant and equipment	3	38,975,450		27,898,130
   Amortisation on right-of-use assets	5.1	15,040,544		15,009,332
   Share of profit of equity-accounted investees		(107,618,352)		(71,684,526)
   Allowance for / (reversal of) impairment of financial assets	7,10	8,416,098		(1,888,304)
   Loss on acquisition	20	-		10,827,156
   Provision for obsolete and slow-moving inventories	8	1,106,659		510,666
   Provision for employees' end of service benefits	15	5,642,564		4,803,657
   Gain on derecognition of right-of-use assets	20	(89,663)		(75,630)
   Gain on investment disposal	34	(13,527,444)		-
   Loss / (gain) on disposal of property, plant and equipment	20	243,466		(8,525,228)
   Income tax expense		704,079		523,760
   Finance costs, net	22	28,086,205		31,819,526
   Operating profit before working capital changes		421,208,230		440,703,204
   Changes in: - Trade and other receivables		115,942,817		12,839,804
   - Inventories		38,027,746		(68,198,354)
   - Trade and other payables		(106,478,954)		42,327,892
   - Amounts due from and due to related parties		(122,209,576)		(174,317,511)
   Cash generated from operations		346,490,263		253,355,035
   Payment made for employees' end of service benefits	15	(3,791,434)		(2,887,304)
   Finance costs paid	14	(21,934,046)		(20,990,373)
   Income taxes paid		(525,098)		(633,116)
   Net cash generated from operating activities		320,239,685		228,844,242
   Cash flows from investing activities
   Additions to property, plant and equipment	3	(95,054,299)		(19,369,541)
   Proceeds from disposal of property, plant and equipment	3	2,189,730		42,934,149
   Additions to investment properties	4	(423,056,161)		(20,161,230)
   Interest received		5,186,399		2,497,668
   Dividends received from equity-accounted investees		88,393,556		27,720,463
   Acquisition of subsidiary, net of cash acquired		-		265,230
   Additional investment on an associate		-		(47,750,000)
   Acquisition of non-controlling interest		-		(32,000,000)
   Proceeds from disposal of investment	34	37,192,646		-
   Net cash deconsolidated	34	(125)		-
   Net cash used in investing activities		(385,148,254)		(45,863,261)
   Cash flows from financing activities
   Payment of lease liabilities	14	(16,770,871)		(15,713,449)
   Repayments of borrowings	14	(374,288,029)		(188,764,490)
   Proceeds from borrowings	14	818,143,922		35,051,799
   Dividends paid	27	(378,000,000)		-
   Net cash from / (used in) financing activities		49,085,022		(169,426,140)
   Net (decrease) / increase in cash and cash equivalents		(15,823,547)		13,554,841
   Cash and cash equivalents at beginning of year		202,960,953		189,406,112
   Cash and cash equivalents at end of year	11	187,137,406		202,960,953

   
   
   
   1. Basis of preparation
      1. Reporting entity

         Aamal Company was formed on 13 January 2001 as a private shareholding company under the Commercial Registration Number 23245 in the State of Qatar. On 12 July 2007, the shareholders resolved to transform Aamal into a Qatari Public Shareholding Company (Q.P.S.C.). Accordingly, the Company was listed on Qatari Stock Exchange on 5 December 2007. The Company's registered office is at P.O. Box 22477, Doha, State of Qatar.

         The consolidated financial statements comprise the financial statements of Aamal Company Q.P.S.C. (the "Company" or the "Parent Company") and its subsidiaries (together referred to as the "Group" and individually as the "Group entities").

         The principal business activities of the Group are disclosed in Note 2.2.7 of the consolidated financial statements and the Group's principal activities, which remains unchanged since the previous year, are Industrial manufacturing, Trading and distribution, Managed services and Property management and development.

         The ultimate parent and controlling shareholder of the Company is Al Faisal Holding Company W.L.L. (the "Ultimate parent"), which is controlled by Sheikh Faisal Bin Qassim Al Thani.

      2. Basis of accounting

         The consolidated financial statements of the Group have been prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (IFRS Accounting Standards).

         The consolidated financial statements were authorised for issue by the representatives of the Board of Directors of Aamal Company Q.P.S.C. on 26 February 2026.

      3. Functional and presentation currency

         Items included in the consolidated financial statements are measured using the currency of the primary economic environment in which the entity operates ('the functional currency').

         The Company and all the Group entities have the Qatari riyal ("QR") as their functional currency, except for the below mentioned active but immaterial subsidiary of the Company, which operates in a foreign jurisdiction:

         Name of the subsidiary Functional currency

         Advanced Pipes and Castings Company Limited Saudi Riyal

         The Group's presentation currency is QR, which is the Company's functional currency.

      4. Use of judgements and estimates

         The preparation of consolidated financial statements in conformity with IFRS Accounting Standards requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Group's accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to consolidated financial statements are disclosed in Note 32.

      5. New standards, amendments and interpretations

1. New standards or amendments for 2025

   The below table lists the recent changes to the IFRS Accounting Standards that are effective for annual periods beginning on 1 January 2025.

   Effective date	New standards or amendments
   1 January 2025

   • Lack of Exchangeability (Amendments to IAS 21)

   The adoption of above amendments had no significant impact on the Group's consolidated financial statements.

   1. Basis of preparation (continued) 1.5. New standards, amendments and interpretations (continued)
2. New and amended standards and an interpretation to a standard not yet effective, but available for early adoption

A number of new IFRS Accounting Standards are effective for annual reporting periods beginning after 1 January 2025 and earlier application is permitted. However, the Group has not early adopted the following new or amended IFRS Accounting Standards in preparing these consolidated financial statements.

IFRS 18 Presentation and Disclosure in Consolidated Financial Statements

IFRS 18 will replace IAS 1 Presentation of Financial Statements and applies for annual reporting periods beginning on or after 1 January 2027. The new standard introduces the following key new requirements.

• Entities are required to classify all income and expenses into five categories in the statement of profit or loss, namely the operating, investing, financing, discontinued operations and income tax categories. Entities are also required to present a newly-defined operating profit subtotal. Entities' net profit will not change.

• Management-defined performance measures (MPMs) are disclosed in a single note in the financial statements.

• Enhanced guidance is provided on how to group information in the financial statements.

In addition, all entities are required to use the operating profit subtotal as the starting point for the statement of cash flows when presenting operating cash flows under the indirect method.

The Group is still in the process of assessing the impact of the new standard, particularly with respect to the structure of the Group's consolidated statement of profit or loss, the consolidated statement of cash flows and the additional disclosures required for MPMs. The Group is also assessing the impact on how information is grouped in the consolidated financial statements, including for items currently labelled as "other".

Other IFRS Accounting Standards

The following new and amended IFRS Accounting Standards are not expected to have a significant impact on the Group's consolidated financial statements.

1. Material accounting policies

   The Group has consistently applied the following accounting policies to all periods presented in these consolidated financial statements, except if mentioned otherwise.

   1. Basis of measurement

      The consolidated financial statements have been prepared under the historical cost convention, except for investment properties and investments at fair value through profit or loss which have been measured at fair value.

      2. Material accounting policies (continued)
   2. Basis of consolidation
      1. Business combinations

         The Group accounts for business combinations using the acquisition method of accounting when control is transferred to the Group, unless the combining entities or businesses are ultimately controlled by the same party or parties both before and after the business combination and that control is not transitory, in which case they are accounted for using the book value accounting method.

         Acquisition accounting

         The consideration transferred for the acquisition of a subsidiary comprises the fair value of the assets transferred, the liabilities incurred to the former owners of the acquiree, the equity interests issued by the Group, the fair value of any asset or liability resulting from a contingent consideration arrangement and the fair value of any preexisting equity interest in the subsidiary. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are, with limited exceptions, measured initially at their fair values at the acquisition date. The Group recognizes any non-controlling interest in the acquiree on an acquisition by acquisition basis, either at fair value or at the non-controlling interest's proportionate share of the recognised amounts of acquiree's identifiable net assets.

         Acquisition-related costs are expensed as incurred.

         If the business combination is achieved in stages, the carrying value of the acquirer's previously held equity interest in the acquiree is re-measured to fair value at the acquisition date; any gains or losses arising from such re-measurement are recognised either in profit or loss or as a change to other comprehensive income, as appropriate.

         Any contingent consideration to be transferred by the Group is recognised at fair value at the acquisition date. Subsequent changes to the fair value of the contingent consideration that is deemed to be an asset or liability is recognised in accordance with IFRS 9 in profit or loss. Contingent consideration that is classified as equity is not re-measured, and its subsequent settlement is accounted for within equity.

         Goodwill arises on the acquisition of subsidiaries represents the excess of the consideration transferred and the amount of any non-controlling interest in the acquiree over the fair value of the identifiable net assets acquired. If the total of consideration transferred, non-controlling interest recognised is less than the fair value of the net assets of the subsidiary acquired, in the case of a bargain purchase, the difference is recognised directly in the profit or loss.

         For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the CGUs or group of CGUs that is expected to benefit from the synergies of the combination. Goodwill impairment testing is undertaken annually. Any impairment is recognised immediately as an expense and is not subsequently reversed.

         Book value accounting

         When the combining entities or businesses are ultimately controlled by the same party or parties both before and after the business combination and that control is not transitory, the Group does not restate assets and liabilities to their fair values. Instead, the Group incorporates the assets and liabilities at the amounts recorded in the books of the acquired company.

         No goodwill arises in the book value accounting method and any difference between the consideration given and the aggregate carrying amounts of assets and liabilities (as of the date of the transaction) of the acquired entity are included within equity reflecting the adjustment in retained earnings.

         The consolidated financial statements incorporate the acquired entity's results as if both entities (acquirer and acquiree) had always been combined, from the date on which the transaction took place.

         2. Material accounting policies (continued) 2.2. Basis of consolidation (continued)
      2. Subsidiaries

         Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases.

         Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.

         Disposal of subsidiaries

         When the Group loses control over a subsidiary, it derecognises the assets and liabilities of the subsidiary, and any related NCI and other components of equity. Any resulting gain or loss is recognised in profit or loss. Any interest retained in the former subsidiary is measured at fair value when control is lost. The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognised in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognised in other comprehensive income are reclassified to profit or loss.

      3. Non-controlling interests

         NCI are measured initially at their proportionate share of the acquiree's identifiable net assets at the date of acquisition.

         Transactions with non-controlling interests that do not result in loss of control are accounted for as equity transactions - that is, as transactions with the owners in their capacity as owners. The difference between fair value of any consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary is recorded in equity. Gains or losses on disposals to non-controlling interests are also recorded in equity. Purchases and sales of non-controlling interests when retaining control will be adjusted to non-controlling interests as a proportionate amount of all the net assets of the subsidiary, including recognised goodwill.

         Non-controlling interests represent the portion of profit or loss and net assets not held by the Group and are presented separately in the consolidated statement of profit or loss and other comprehensive income and within equity in the consolidated statement of financial position, separately from equity attributable to owners of the Company.

      4. Transactions eliminated on consolidation

         lntercompany transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset.

      5. Associates

Associates are all entities over which the Group has significant influence but not control or joint control. This is generally the case where the Group holds between 20% and 50% of the voting rights. Investments in associates are accounted for using the equity method of accounting. Under the equity method, the investment is initially recognised at cost, and the carrying amount is increased or decreased to recognise the investor's share of the profit or loss and other comprehensive income of the investee after the date of acquisition.

1. Material accounting policies (continued)
   1. Basis of consolidation (continued)
      1. Associates (continued)

         On acquisition of an associate, the difference between the cost of the investment and the Group's share of the net fair value of the investee's identifiable assets and liabilities is accounted for as goodwill relating to the associate and is included in the carrying amount of the associate. Any excess of the Group's share of the net fair value of the investee's identifiable assets and liabilities over the cost of the investment is included as income in the determination of the Group's share of associate's profit or loss in the period in which the investment is acquired.

         If the ownership interest in an associate is reduced but significant influence is retained, only a proportionate share of the amounts previously recognised in other comprehensive income is reclassified to profit or loss where appropriate.

         The Group's share of post-acquisition profit or loss and share of post-acquisition movements in other comprehensive income are recognised in the consolidated statement of profit or loss and other comprehensive income with a corresponding adjustment to the carrying amount of the investment.

         When the Group's share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Group does not recognise further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.

         Profits and losses resulting from upstream and downstream transactions between the Group and its associates are recognised in the Group's consolidated financial statements only to the extent of unrelated investor's interests in the associates. Unrealised losses are eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been changed where necessary to ensure consistency with the policies adopted by the Group.

         The Group determines at each reporting date whether there is any objective evidence that the investment in the associate is impaired. If this is the case, the Group calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value and charges the amount to the consolidated statement of profit or loss and other comprehensive income.

      2. Joint arrangements

         Under IFRS 11 Joint Arrangements, investments in joint arrangements are classified as either joint operations or joint ventures. The classification depends on the contractual rights and obligations of each investor, rather than the legal structure of the joint arrangement. The Group has joint ventures.

         A joint venture is an arrangement in which the Group has joint control, whereby the Group has rights to the net assets of the arrangement, rather than rights to its assets and obligations for its liabilities. Interests in joint ventures are accounted for using the equity method. Under the equity method, the interests in joint ventures are initially recognised at cost and adjusted thereafter to recognize the Group's share of the post-acquisition profits or losses, dividends and movements in other comprehensive income.

         When the Group's share of losses in a joint venture equals to or exceeds its interests in the joint ventures, the Group does not recognize further losses, unless it has incurred obligations or made payments on behalf of the joint ventures.

         Unrealised gains on transactions between the Group and its joint ventures are eliminated to the extent of the Group's interest in the joint ventures. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of the joint ventures have been changed where necessary to ensure consistency with the policies adopted by the Group.

         The reporting dates of the equity-accounted investees and the Group are identical and the equity-accounted investees' accounting policies conform to those used by the Group for like transactions and events in similar circumstances.

         2. Material accounting policies (continued) 2.2. Basis of consolidation (continued)
      3. Group companies

         Set out below are the Group's subsidiaries at 31 December 2025. Unless otherwise stated, the subsidiaries as listed below have share capital consisting solely of ordinary shares, which are held directly by the Group and the proportion of ownership interests held equals to the voting rights held by Group. The country of incorporation or registration is also their principal place of business.

         Group effective

         Name of the subsidiary	Country of incorporation	Principal activities	shareholding percentage
         			2025	2024
         City Center Company W.L.L. Aamal Real Estate	Qatar Qatar	Leasing the facilities of a retail outlet complex in City Center Doha Residential and commercial real estate	100% 100%	100% 100%
         W.L.L.		investment and property rental
         Aamal Readymix W.L.L.	Qatar	Production and sale of readymix concrete	100%	100%
         Ebn Sina Medical W.L.L. Aamal Medical W.L.L.	Qatar Qatar	Wholesale and retail distribution of pharmaceuticals and general consumable products Wholesale distribution of medical equipment	100% 100%	100% 100%
         Aamal Trading and Distribution Company W.L.L. Aamal Services W.L.L.	Qatar Qatar	Sale of tyres, lubricants, batteries and home appliances Providing facilities management and cleaning	100% 100%	100% 100%
         Aamal Travel and	Qatar	services Operating a travel agency	100%	100%
         Tourism W.L.L. Foot Care Center W.L.L.	Qatar	Sale of footwear, clinical activities and general	100%	100%
         Ebn Sina Pharmacy	Qatar	commercial trading products Sale of pharmaceuticals, baby care products,	100%	100%
         W.L.L. Aamal Cement Industries	Qatar	medicine and general consumable products Development and management of factories and	99%	99%
         W.L.L. IMO Qatar Company	Qatar	the production of curb stone, interlock slabs and cement bricks Construction and repair of power plant,	-	100%
         W.L.L. Ci-San Trading W.L.L.**	Qatar	establishment and management of industrial enterprises and acting as a representative for the international companies Holding company of Gulf Rocks	100%	100%
         Gulf Rocks Company	Qatar	Retail distribution of aggregates	100%	100%
         W.L.L.** Aamal Maritime	Qatar	Purchasing and leasing of ships for transportation	100%	100%
         Transportation W.L.L. Al Farazdaq Company	Qatar	of goods Trading of office supplies and providing printing	65%	65%
         W.L.L. Family Entertainment	Qatar	and laminating services Providing family entertainment park facilities in	100%	100%
         Center Company W.L.L. Winter Wonder Land	Qatar	City Center Doha Mall Providing entertainment facilities in City Center	100%	100%
         W.L.L. Aamal for Industrial	Qatar	Doha Mall Industrial investments	100%	100%
         Projects W.L.L.* Legend Trading and	Qatar	Trading of automobile products	100%	100%
         Distribution W.L.L. Aamal for Car and Truck	Qatar	Trading of car spare parts	100%	100%
         Maintenance W.L.L.**

         2. Material accounting policies (continued) 2.2. Basis of consolidation (continued) 2.2.7 Group companies (continued) Group effective Name of the subsidiary Country of incorporation Principal activities shareholding percentage

         			2025	2024
         Innovative Lighting W.L.L. ** Aamal Cables for	Qatar Qatar	Trading of Light Emitting Diode (LED) Lamps and other lighting products Trading of cables	70% 100%	70% 100%
         Trading and Contracting W.L.L. Tiga Information	Qatar	Administration Consultancy, and Various kinds of	51%	51%
         Technologies W.L.L. Maintenance and	Qatar	studies Electronic Programs Provision of maintenance, indoor and outdoor	100%	100%
         Management Solutions W.L.L. Aamal Energy W.L.L.	Qatar	cleaning works, property management and historical and archaeological Provision of oil and gas field maintenance works	100%	100%
         Aamal Information Technology W.L.L. Advanced Pipes and	Qatar Qatar	Trading of computer equipment and provision of IT consultancy and software services Manufacturing of wide range of cement and glass	100% 100%	100% 100%
         Casts W.L.L. Advanced Pipes and	Saudi Arabia	reinforced pipes systems for infrastructure and pipeline projects Project design and engineering consulting	100%	-
         Castings Company Limited ***
         * Inactive operations

         ** Under liquidation process

         *** Incorporated during the year

         Details of the equity-accounted investees of the Group are as follows:

         Country of Proportion of ownership and voting power held Company name incorporation Nature of activity by the Group

         			2025	2024
         Joint ventures
         Senyar Industries	Qatar	Owning of patents, businesses and subletting	50%	50%
         Qatar Holding W.L.L.		them and provision of investment portfolio
         		management for its subsidiaries and associates.
         		This joint venture is the sole supplier of cables to
         		one of the subsidiaries of the Group.
         Aamal ECE W.L.L.*	Qatar	This entity provides property management services to a subsidiary of the group.	51%	51%
         Ecco Gulf Company	Qatar	Offers professional and business process	-	51%
         W.L.L.		outsourcing and call center services
         Associate
         Frijns Structural Steel Middle East W.L.L.	Qatar	Steel fabrications	40%	40%

         *Whilst the Parent Company's ownership proportion in Aamal ECE W.L.L. is 51%, the joint venture agreements between the Company and other shareholders indicate joint control and hence, the investments are equity-accounted by the Parent Company.

         2. Material accounting policies (continued)
   2. Foreign currency translation

      Transactions and balances

      Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are re-measured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the consolidated statement of profit or loss and other comprehensive income. Foreign exchange gains and losses that relate to borrowings are also presented in the consolidated statement of profit or loss and other comprehensive income, within 'finance costs - net'. All other foreign exchange gains and losses are presented in the consolidated statement of profit or loss and other comprehensive income within 'other income'.

   3. Leases

      At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

      The Group as a lessee

      At commencement or on modification of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease component on the basis of its relative stand-alone prices. However, for the leases of property, the Group has elected not to separate non-lease components and account for the lease and non-lease components as a single lease component.

      The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

      The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of property, plant and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

      The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group's incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate.

      The Group determines its incremental borrowing rate by obtaining interest rates from external financing sources and makes certain adjustments to reflect the terms of the lease and type of the assets leased.

      Lease payments included in the measurement of the lease liability comprise the following:

      • fixed payments, including in-substance fixed payments;

      • variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;

      • amounts expected to be payable under a residual value guarantee; and

      • the exercise price under a purchase option that the Group is reasonably certain to exercise, lease payments in an optional renewal period if the Group is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the Group is reasonably certain not to terminate early.

      2. Material accounting policies (continued)
      1. Leases (continued)

         The Group as a lessee (continued)

         The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Group's estimate of the amount expected to be payable under a residual value guarantee, or if the Group changes its assessment of whether it will exercise a purchase, extension or termination option of if there is a revised in-substance fixed lease payment.

         When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

         Short-term leases and leases of low-value assets

         The Group has elected not to recognise right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less and leases of low-value assets. The Group recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

         The Group as a lessor

         Leases in which a significant portion of the risk and rewards of ownership are retained by the lessor are classified as operating leases. Under an operating lease, the asset is included in the statement of financial position as investment properties. Lease income is recognised over the term of the lease on a straight-line basis. This implies the recognition of deferred income when the contractual day rates are not constant during the initial term of the lease contract.

         Leases in which a significant portion of the risk and rewards of ownership are transferred to the lessee are classified as finance leases. They are initially recognised as "Finance lease receivables" on the statement of financial position at the present value of the minimum lease payments (the net investment in the lease) receivable from the lessee over the period of the lease. Over the lease term, each lease payment made by the lessee is allocated between the "Finance lease receivables" and "Finance lease income" in profit or loss so as to achieve a constant rate on the finance lease receivable balance outstanding. The Group does not have finance lease receivables.

         The Group leases out its investment properties consisting of its owned commercial and residential properties (Note 4). All leases are classified as operating leases from a lessor perspective.

         The Group has classified these leases as operating leases, because they do not transfer substantially all of the risks and rewards incidental to the ownership of the assets. Note 4 sets out information about the operating leases of investment property.

         Maturity analysis of lease payments, showing the undiscounted lease payments to be received after the reporting date is disclosed in Note 4.

      2. Investment properties

         Property that is held for long-term rental yields or for capital appreciation or both, and that is not occupied by the companies in the consolidated Group, is classified as investment property. Investment property also includes property that is being constructed or developed for future use as investment property.

         Investment property is measured initially at its cost, including related transaction costs and where applicable borrowing costs. After initial recognition, investment property is carried at fair value.

         After initial recognition, investment property is carried at fair value. Investment property that is being redeveloped for continuing use as investment property, or for which the market has become less active, continues to be measured at fair value. Investment property under construction is measured at fair value if the fair value is considered to be reliably determinable.

         2. Material accounting policies (continued)
   4. Investment properties (continued)

      Investment properties under construction for which the fair value cannot be determined reliably, but for which the Group expects the fair value of the property will be reliably determinable when construction is completed, are measured at cost until the fair value becomes reliably determinable or construction is completed - whichever is earlier.

      It may sometimes be difficult to determine reliably the fair value of the investment property under construction. In order to evaluate whether the fair value of an investment property under construction can be determined reliably, management considers the following factors, among others:

      • the provisions of the construction contract;

      • the stage of completion;

      • whether the project/property is standard (typical for the market) or non-standard;

      • the level of reliability of cash inflows after completion;

      • the development risk specific to the property;

      • past experience with similar constructions; and

      • status of construction permits.

      Subsequent expenditure is capitalised to the asset's carrying amount only when it is probable that future economic benefits associated with the expenditure will flow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance costs are expensed when incurred. When part of an investment property is replaced, the cost of the replacement is included in the carrying amount of the property, and the fair value is reassessed.

      Changes in fair values are recognised in the consolidated statement of profit or loss and other comprehensive income. Investment properties are derecognised when they have been disposed of.

      If an investment property becomes owner-occupied, it is reclassified as property, plant and equipment. Its fair value at the date of reclassification becomes its cost for subsequent accounting purposes.

      If an owner-occupied property becomes an investment property because its use has changed, any difference resulting between the carrying amount and the fair value of this property at the date of transfer is treated in the same way as a revaluation under IAS 16. Any resulting increase in the carrying amount of the property is recognised in consolidated statement of profit or loss and other comprehensive income to the extent that it reverses a previous impairment loss, with any remaining increase recognised in other comprehensive income and increase directly to equity in revaluation surplus within equity. Any resulting decrease in the carrying amount of the property is initially charged in other comprehensive income against any previously recognised revaluation surplus, with any remaining decrease charged to consolidated statement of profit or loss and other comprehensive income.

   5. Property, plant and equipment

Property, plant and equipment are stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items cost including borrowing costs that are eligible for capitalisation and excluding the costs of day-to-day servicing, less accumulated depreciation and any impairment in value. Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to the consolidated statement of profit or loss and other comprehensive income during the financial period in which they are incurred.

From time to time, the Group's vessels are required to be dry-docked for inspection and re-licensing at which time major repairs and maintenance that cannot be performed while the vessels are in operation are generally performed. The Group capitalises the costs associated with dry-docking as they occur by adding them to the cost of the vessel and amortises these costs on the straight-line basis over 3-5 years, which is generally the period until the next scheduled dry-docking.

Transfers of financial assets to third parties in transactions that do not qualify for derecognition are not considered sales for this purpose, consistent with the Group's continuing recognition of the assets.

Financial assets that are held for trading or are managed and whose performance is evaluated on a fair value basis are measured at fair value through profit or loss.

Financial assets - Assessment whether contractual cash flows are solely payments of principal and interest

For the purposes of this assessment, 'principal' is defined as the fair value of the financial asset on initial recognition. 'Interest' is defined as consideration for the time value of money and for the credit risk associated with the principal amount outstanding during a period and for other basic lending risks and costs (e.g. liquidity risk and administrative costs), as well as a profit margin.

In assessing whether the contractual cash flows are solely payments of principal and interest, the Group considers the contractual terms of the instrument. This includes assessing whether the financial asset contains a contractual term that could change the timing or amount of contractual cash flows such that it would not meet this condition. In making this assessment, the Group considers:

1. Material accounting policies (continued)
   1. Financial instruments (continued)
      1. Classification and subsequent measurement (continued)

         Financial assets - Assessment whether contractual cash flows are solely payments of principal and interest (continued)

         • contingent events that would change the amount or timing of cash flows;

         • terms that may adjust the contractual coupon rate, including variable-rate features;

         • prepayment and extension features; and

         • terms that limit the Group's claim to cash flows from specified assets (e.g. non-recourse features).

           A prepayment feature is consistent with the solely payments of principal and interest criterion if the prepayment amount substantially represents unpaid amounts of principal and interest on the principal amount outstanding, which may include reasonable additional compensation for early termination of the contract. Additionally, for a financial asset acquired at a discount or premium to its contractual par-amount, a feature that permits or requires prepayment at an amount that substantially represents the contractual par-amount plus accrued (but unpaid) contractual interest (which may also include reasonable additional compensation for early termination) is treated as consistent with this criterion if the fair value of the prepayment feature is insignificant at initial recognition.

           Financial assets - Subsequent measurement and gains and losses

           At fair value through profit or loss

           These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognised in profit or loss.

           At amortised cost

           These assets are subsequently measured at amortised cost using the effective interest method. The amortised cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognised in profit or loss. Any gain or loss on derecognition is recognised in profit or loss.

           Financial liabilities - Classification, subsequent measurement and gains and losses

           Financial liabilities are classified as measured at amortised cost or fair value through profit or loss. A financial liability is classified as at fair value through profit or loss if it is classified as held-for-trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at fair value through profit or loss are measured at fair value and net gains and losses, including any interest expense, are recognised in profit or loss. Other financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognised in profit or loss. Any gain or loss on derecognition is also recognised in profit or loss.

      2. Derecognition

         Financial assets

         The Group derecognises a financial asset when:

         • the contractual rights to the cash flows from the financial asset expire; or

         • it transfers the rights to receive the contractual cash flows in a transaction in which either:

           • substantially all of the risks and rewards of ownership of the financial asset are transferred; or

           • the Group neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.

             The Group enters into transactions whereby it transfers assets recognised in its consolidated statement of financial position but retains either all or substantially all risks and rewards of the transferred assets. In these cases, the transferred assets are not derecognised.

             1. Material accounting policies (continued)
                1. Financial instruments (continued)
                   1. Derecognition (continued)

                      Financial liabilities

                      The Group derecognises a financial liability when its contractual obligations are discharged or cancelled or expired. The Group also derecognises a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognised at fair value. On derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognised in profit or loss.

                   2. Offsetting

                      Financial assets and financial liabilities are offset, and the net amount presented in the consolidated statement of financial position when, and only when, the Group currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realise the asset and settle the liability simultaneously.

                2. Impairment
             1. Non-derivative financial assets

             The Group recognises loss allowances for Expected Credit Losses (ECLs) on financial assets measured at amortised cost and contract assets. The Group measures loss allowances at an amount equal to lifetime ECLs, except for bank balances for which credit risk (i.e. the risk of default occurring over the expected life of the financial instrument) has not increased significantly since initial recognition and are measured at 12-month ECLs.

             Loss allowances for trade receivables and contract assets are always measured at an amount equal to lifetime ECLs.

             When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECLs, the Group considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Group's historical experience and informed credit assessment and including forward-looking information.

             As a practical expedient, the Group calculates ECL on trade receivables using a provision matrix. The Group use its historical credit loss experience for trade receivables to estimate the lifetime expected credit losses. The provision matrix uses fixed provision rates depending on the number of days that a trade receivable is past due.

             Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument. 12-month ECLs are the portion of ECLs that result from default events that are possible within the 12 months after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months). The maximum period considered when estimating ECLs is the maximum contractual period over which the Group is exposed to credit risk.

             2. Material accounting policies (continued)
   2. Impairment (continued)
      1. Non-derivative financial assets (continued)

         Credit-impaired financial assets

         At each reporting date, the Group assesses whether financial assets carried at amortised cost are credit-impaired. A financial asset is 'credit-impaired' when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred.

         Evidence that a financial asset is credit-impaired includes the following observable data:

         • significant financial difficulty of the borrower or issuer;

         • a breach of contract such as a default or being more than 365 days past due; or

         • the restructuring of a loan or advance by the Group on terms that the Group would not consider otherwise;

         • it is probable that the borrower will enter bankruptcy or other financial reorganization; or

         • the disappearance of an active market for a security because of financial difficulties.

           Presentation of impairment

           Provision for impairment on trade receivables is deducted from gross carrying value of trade receivables in the statement of consolidated financial position and impairment losses relating to trade receivables are separately presented in the consolidated statement of profit or loss and other comprehensive income.

           Write-off

           The gross carrying amount of a financial asset is written off when the Group has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. The Group individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. The Group expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Group's procedures for recovery of amounts due.

      2. Non-financial assets

      At each reporting date, the Group reviews the carrying amounts of its non-financial assets to determine whether there is any indication of impairment. If any such indication exists, then the asset's recoverable amount is estimated.

      For impairment testing, assets are grouped together into the smallest group of assets that generate cash inflows from continuing use that are largely independent of the cash inflows of other assets or Cash Generating Units (CGUs). The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU.

      An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its recoverable amount. Impairment losses are recognised in profit or loss. They are allocated to reduce the carrying amounts of the other assets in the CGU on a pro rata basis.

   3. Provisions

      Provisions are recognised when: the Group has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount has been reliably estimated. Provisions are not recognised for future operating losses.

      Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as interest expense.

      2. Material accounting policies (continued)
   4. Employees' end of service benefits
      1. Defined benefit plan

         The Group has measured its obligation for the post-employment benefits of its employees based on the provisions of the Qatar Labour Law No. 14 of 2004. The calculation of the provision is performed by the Group at the end of each year, and any change to the projected benefit obligation at the year-end is adjusted in the provision for employees' end of service benefits in the statement of profit or loss.

      2. Other short-term employees benefits

      Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recognised for the amount expected to be paid under short-term cash bonus if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the obligation can be measured reliably.

   5. Revenue

      1. Sale of goods manufactured by the Group

         The Group manufactures and sells ready mix concrete, curb stone, interlock slabs and cement bricks. Sales are recognised when control of the products has transferred, being when the products are delivered to the customer, the customer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customer's acceptance of the products. Delivery occurs when the products have been delivered to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, the acceptance provisions have lapsed, or the Group has objective evidence that all criteria for acceptance have been satisfied.

         A receivable is recognised when the goods are delivered. As there is only one performance obligation, the revenue is recognised at point in time when these goods are delivered.

      2. Sale of goods that are not manufactured by the Group

         The Group operates wholesale and retail distribution of pharmaceuticals and general consumable products, wholesale distribution of medical equipment, retail sale of tyres, lubricants, batteries, home appliances, footwear, general commercial trading products, baby care products, medicine and general consumable products, aggregates, office supplies, automobile products and car spare parts.

         A receivable is recognised when the goods are delivered. As there is only one performance obligation, the revenue is recognised at point in time when these goods are delivered.

      3. Rental income

         Rental income is recognised on straight-line basis over the term of the rent contracts.

      4. Rendering of services

      The Group provides various services including installation of medical equipment, clinical activities, family entertainment park facilities, facilities management and cleaning services, business process outsourcing and call center services and printing and lamination services. The Group also operates a travel agency.

      Revenue from providing services is recognised in the accounting period in which the services are rendered. Revenue is recognised based on the actual service provided to the end of the reporting period as a proportion of the total services to be provided, because the customer receives and uses the benefits simultaneously. For cleaning services and call center services, this is determined using the input method approach and is based on the actual labour hours spent relative to the total expected labour hours.

      2. Material accounting policies (continued) 2.19 Revenue (continued)

      1. Rendering of services (continued)

         Some contracts include multiple deliverables, such as selling and installation of medical equipment. However, the installation is simple, does not include an integration service and could be performed by another party. It is therefore accounted for as a separate performance obligation. In this case, the transaction price will be allocated to each performance obligation based on the stand-alone selling prices. Where these are not directly observable, they are estimated based on expected cost plus margin. Estimates of revenues, costs or extent of progress toward completion are revised if circumstances change. Any resulting increases or decreases in estimated revenues or costs are reflected in profit or loss in the period in which the circumstances that give rise to the revision become known by management.

         In case of fixed-price contracts, the customer pays the fixed amount based on a payment schedule. If the services rendered by the Group exceed the payment, a contract asset is recognised. If the payments exceed the services rendered, a contract liability is recognised. If the contract includes an hourly fee, revenue is recognised in the amount to which the Group has a right to invoice. Customers are invoiced on a monthly basis and consideration is payable when invoiced.

      2. Financing components

      The Group does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the Group does not adjust any of the transaction prices for the time value of money.

      2.20 Fair value measurement

      Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that:

      • In the principal market for the asset or liability, or

      • In the absence of a principal market, in the most advantageous market for the asset or liability The principal or the most advantageous market must be accessible by the Group.

        The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

        A fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

        The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

        All assets and liabilities for which fair value is measured or disclosed in the consolidated financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

      • Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities

      • Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

      • Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

      For assets and liabilities that are recognised in the consolidated financial statements on a recurring basis, the Group determines whether transfers have occurred between Levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

      2. Material accounting policies (continued)
   6. Fair value measurement (continued)

      The Group measures its investment properties at fair value at each reporting date.

      The Group's management determines the policies and procedures for valuation of investment properties. External valuers are involved for the valuation of investment properties. Selection criteria include market knowledge, reputation, independence and whether professional standards are maintained. The management discusses and reviews, the Group's external valuers, valuation techniques and assumptions used for each property (Note 4).

   7. Dividends

      Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the Group, on or before the end of the reporting period but not distributed at the end of the reporting period.

   8. Earnings per share

      1. Basic earnings per share

         Basic earnings per share is calculated by dividing:

         • the profit attributable to owners of the Group, excluding any costs of servicing equity other than ordinary shares

         • by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the year.

      2. Diluted earnings per share

      Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:

      • the after-income tax effect of interest and other financing costs associated with dilutive potential ordinary shares, and

      • the weighted average number of additional ordinary shares that would have been outstanding assuming the conversion of all dilutive potential ordinary shares.

   9. Income tax

Income tax comprises the expected tax payable on the taxable profit for the year, adjusted for any corrections to the tax payable of previous years. It is calculated on the basis of the tax laws enacted (Income Tax Law No. 24 of 2018 and Ministerial Decision No. 39 of 2019) or substantively enacted at the reporting date in the State of Qatar. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation.

If applicable tax regulation is subject to interpretation and there is uncertainty over a treatment chosen by the Company that it is not probable that the tax authority will accept, it establishes a provision where appropriate on the basis of amounts expected to be paid to the tax authorities. Provisions made in respect of uncertain tax positions are re-assessed whenever circumstances change or there is new information that affects the previous judgements and estimates.