Tabreed 06 Prospectus - London Stock Exchange

Marketing district cooling services requires individuals who are comfortable with the technical and
financial issues related to the business. The Company has spent great effort and time in training its
existing marketing personnel. They have been sent to training and conferences in the United States
and Europe. Today the Company has an experienced marketing group and as a result is having
continued success in adding new customers.
The Company has, since its formation, invested in customer education about district cooling services.
It has held conferences and sponsored technical tours. It participates in appropriate conferences and
exhibitions. It has prepared and continually updated promotional brochures and it issues a periodic
news letter. These activities are budgeted for and controlled through the efforts of management and
the budget control tools of the People Soft ERP system.
Financial Policies
Tabreed adopted specific financial policies and procedures in 1999 and has decided to update and
revise those policies and procedures this year.
Tabreed is auditing each operating department and significant subsidiaries and has completed two
departments and is finishing a third. Tabreed intends to implement its own internal audit function
when it has finished the initial audit of each operating department.
Dividend Policy
The Company has the following dividend payout history:
* 2003 – cash dividend of 30 fils per share (equivalent to 3% of nominal share value)
* 2004 – cash dividend of 50 fils per share (equivalent to 5% of nominal share value)
* 2005 – stock dividend of 5 fils per share (equivalent to 5% of nominal share value), following a
10:1 stock split.
GCC Corporate Strategy
It is intended that all overseas companies/projects should be self-financing with only equity
participation by Tabreed.
A number of areas in the GCC including, for example, Qatar and Saudi Arabia have been identified
as areas for growth and given Tabreed’s market leading status, it is well placed to exploit these
opportunities.
In the next five years, Tabreed intends to focus on both government and non-government customers
before considering expansion into the international markets.
Environment and Safety
The Company complies with all applicable UAE and international environment and safety standards
and has received specific permits from the UAE Federal Environment Research and Wildlife
Development Agency. Tabreed also holds the ISO14001:1996 (environment management),
ISO9001:2000 (quality control) and OHSAS 18001:1999 (occupational health and safety management)
certifications. The standards with which Tabreed has to comply in order to obtain these certifications
are higher than the relevant standards in the UAE.
Legionnaires Disease
The Company is a user of wet cooling towers. In the past, such cooling towers have been a source of
Legionella bacteria which can cause Legionnaires disease. The Company mitigates this risk through
rigorous chemical control of the cooling water. The Company has public liability insurance cover in
relation to legal liability arising from its operations – see ‘‘Public Liability Cover’’ below.
Information Technology
Tabreed uses standard Enterprise Resource Planning software from Peoplesoft for all of its financial,
procurement, human resource, implementation and research modules. The Company’s IT network is
linked through all offices and all of the plants.
Insurance
Under UAE law, property located in the UAE and liability thereof cannot be insured abroad, and
therefore, there is no choice but to use UAE registered insurers to front or lead local covers. Such
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