ZaraAnnual-English2011

Board of Directors’ Report Annual Report 2011
Major shareholders
The site of John the Baptist’s settlement at ‘Bethany Beyond the Jordan’, where Jesus was baptized, formed part of
the early Christian pilgrimage route between Jerusalem, the Jordan River, and Mount Nebo. 15 minutes away from
Mövenpick Resort & Spa Dead Sea.
5.
Company’s competitive position:
4.
Name
Major shareholders and number of shares held compared with 2010:
Number of Shares
as of 31/12/2011
% Number of Shares
as of 31/12/2010
Social Security Corporation 18,516,245 14.8% 18,516,245 14.8%
Libyan Foreign Investments Company 16,282,943 13.0% 16,282,943 13.0%
Al Masira Investment Company 15,295,011 12.2% 15,295,011 12.2%
%
Zara Investment (Holding) Company is the largest owner of luxury 5–star hotels in Jordan with strategic locations in
Amman, Dead Sea, Petra, and Aqaba. These seven 5-star hotels have a combined total of 2,132 rooms. Our company enjoys
the leading position as one of the top investment companies in Jordan in the hospitality sector, coupled with 34% share
of 5-star hotel revenue in the Kingdom. This is manifested in relation to both its paid up capital and the net book value
of its property and equipment totaling respectively JD 125 million/share and JD 216.8 million as of 31/12/2011. All of the
Company’s hotels are managed by renowned international management companies, which include the Intercontinental
Hotels Group (IHG), Hyatt International, and the Mövenpick Hotels and Resorts (MRC). The affiliation with such reputable
operators enables the properties of Zara to compete on both the local and international levels. During 2011, all of Zara
properties maintained their leadership position in the market. The Hotel Intercontinental Jordan achieved the highest
revenues and operating profits in Amman. Mövenpick Resorts achieved the highest revenues and operating profits in Dead
Sea; Petra; and Aqaba.
Arab Supply and Trading Corporation 9,173,628 7.3% 9,173,628 7.3%
Cairo Amman Bank 8,325,070 6.6% 8,325,070 6.6%
Mohammed Bin Abdel Rahman Bin Hamad Al Sheik 6,000,000 4.8% 6,000,000 4.8%
Abdel Rahman Bin Ali Bin Abdel Rahman Al Turki 6,000,000 4.8% 6,000,000 4.8%
6. Reliance on specific local or foreign suppliers
or major customers:
The Company does not rely on specific local or foreign
suppliers or major customers for more than 10% of its total
procurements and/or sales.
7. Government protection or privileges enjoyed
by the Company:
There are no government protection measures, nor
privileges enjoyed by the Company or any of its products /
subsidiaries in accordance with legal regulations.
8. Government or international organizations
measures with material impact on the Company’s
work, products, or competitiveness:
All of the Company’s hotels and resorts have benefited
from the exemptions stipulated in the Investment Promotion
and Special Economic Zone Laws. These exemptions cover
duties and taxes on procurements of furniture, fixtures and
equipment (FF&E) required for refurbishment and renovation
purposes.
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