Words – شركة مشارق

كلمة رئيس مجلس الإدراة

شركة مشارق

All praise is due to Allah, who has blessed us with a homeland whose progress is measured by achievements, and honored us with wise leadership that works with diligence and sincerity to realize an ambitious vision that makes our country a model to be emulated at all levels. This success is clearly evident under the government of the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud, and His Royal Highness the Crown Prince, Prince Mohammed bin Salman bin Abdulaziz Al Saud, through the integration of efforts across the government, private, and non-profit sectors, reflecting the honorable image of the Kingdom of Saudi Arabia and its growing global stature. At Mashariq Company, we continue to operate in line with ambitious strategies aimed at strengthening our position in the Hajj and Umrah sector by developing our services and delivering an exceptional experience for the Guests of Allah. We also work to diversify our investment portfolio to achieve financial sustainability by adopting initiatives grounded in the highest standards of institutional excellence and professionalism, thereby continuing a journey of success that began more than 40 years ago. Furthermore, we consistently seek to explore new markets and diverse fields that enhance our growth and support the achievement of the objectives of the Kingdom’s Vision 2030.

“We continue to operate in accordance with ambitious strategies aimed at strengthening our position in the Hajj and Umrah sector through the development of our services.”

The flexibility of our business model, founded on investment expansion and financial sustainability, has proven effective in addressing the transformation challenges the Company is undergoing, while contributing to the efficient control and management of activities and operations. Despite these challenges, and by the grace of Allah, we have succeeded in achieving strong financial returns, which affirms the success of our strategy in diversifying investments, enhancing shareholder profitability, and proceeding toward a public offering in the Saudi financial market, within a robust governance framework that meets the expectations of our partners and shareholders.

It is my pleasure to present to you the Annual Report for the year 1445–1446 AH, which highlights the Company’s key achievements realized by the grace of Allah and through your continued support and valued trust—support that has always served as a driving force for us to accomplish even greater successes.

Mashariq’s Performance During the Year 1445–1446 AH

The Group experienced a notable decline in earnings per share for the fiscal year ended 30/02/1446 AH compared to the preceding year, due to significant sector-wide impacts arising from intense competition and increased operating costs driven by rising prices, in addition to higher regulatory requirements associated with Hajj operations. Nevertheless, the Board approved relatively high dividend distributions compared to the realized profitability, at approximately 71%, amounting to SAR 6.5 per share. We take pride in the confidence of our investors, which reflects their firm belief in the Company’s vision, the strength of its foundations, and its promising capabilities for future growth and prosperity.

The Group recorded a notable decline in earnings per share for the fiscal year ended 30/02/1446 AH compared to the previous year, due to material impacts on the sector resulting from intense competition, rising operating costs driven by increased prices, and higher regulatory requirements associated with Hajj operations. Nevertheless, the Board approved dividend distributions that were high relative to the realized profitability, at approximately 71%, amounting to SAR 6.5 per share. We take pride in the confidence of our investors, which reflects their steadfast belief in the Company’s vision, the strength of its foundations, and its promising potential for future growth and prosperity.

The Ambition to Become One of the Kingdom’s Largest Economic Arms

In alignment with the Kingdom’s Vision to develop the Hajj and Umrah sector and enhance the religious and cultural experience of the Guests of Allah, Mashariq Company and its subsidiaries continue their commitment to playing a leading role in achieving the objectives of this phase. This is realized through close collaboration with supervisory authorities such as the Ministry of Hajj and Umrah, the Ministry of Commerce, and other relevant entities. Based on our future strategy, we will continue to lead the transformation journey with steady steps, serving more than 200,000 pilgrims during the upcoming Hajj season of 1446 AH, by the will of Allah. Furthermore, we are working to expand the scope of our services to include the tourism and Umrah sectors, rather than limiting our operations to Hajj services alone. We have taken concrete steps in this direction by signing partnerships with Al-Adilla Company and licensed tourism agencies, strengthening our confidence in moving forward toward achieving our goal of enhancing the experience of the Guests of Allah and creating a highly governed investment environment aligned with global best practices, guided by an authentic Saudi vision and values. The Company achieved a significant milestone by receiving, for the third consecutive time, the “Labaytum” Award from the Ministry of Hajj and Umrah for excellence in serving the Guests of Allah for the year 1445 AH. In this context, we reaffirm our firm commitment to continuing the journey of excellence and strengthening our position as a leading company in serving the Guests of Allah, in line with the Kingdom’s ambitious growth plans.

In Conclusion

On behalf of the Board of Directors, I would like to extend my sincere thanks and appreciation to all our shareholders for their continued trust in the Company. I also express my gratitude to our local and international partners, as well as our outstanding team, whose efforts have contributed to achieving these remarkable results. I hope the coming year will be filled with even greater growth, success, and accomplishments.

Chairman of the Board

Adnan bin Hussein Mandurah

Chief Executive Officer Message

شركة مشارق

All praise is due to Allah, who has granted us the honor of serving the Guests of Allah in this blessed homeland and entrusted us with this great responsibility. Allah has chosen some of His servants to support and assist His honorable Guests in performing their rituals, and this is an honor we take pride in.

The Kingdom of Saudi Arabia, under the leadership of the Custodian of the Two Holy Mosques and His Royal Highness the Crown Prince, Prince Mohammed bin Salman – may Allah protect them – gives special attention to the Guests of Allah, mobilizing all its capabilities and resources to provide the best services and create a unique spiritual experience in the Two Holy Cities. At Mashariq, we fully recognize the magnitude of this trust and strive diligently to enhance the quality of services provided to pilgrims, ensuring their comfort, safety, and peace of mind.

“We move forward with confidence toward a future founded on giving, growth, and prosperity, guided by ambitious plans aimed at diversifying investments and expanding partnerships both locally and internationally.”

From this perspective, we operate throughout the year according to a clear vision and strategic objectives that align with the targets of Vision 2030 to develop the Hajj system and enhance the religious and cultural experience of the Guests of Allah. This contributes to enabling the greatest number of Muslims to perform Hajj and Umrah through the development of infrastructure and the effective utilization of human and material resources, reflecting the Kingdom’s honorable image and strengthening its position as a premier Islamic destination visited by Muslims from all corners of the world. We are pleased today to present the Annual Performance Report for the year 1445–1446 AH, which highlights our achievements and the challenges we have overcome, by the grace of Allah, and through the trust of our partners and shareholders, as well as the dedication of our teams and staff.

Mashariq in the Year 1445–1446 AH

During the year 1445–1446 AH, Mashariq achieved significant progress on its path toward growth and prosperity, by the grace of Allah and the dedication of its committed team. Mashariq continues to focus on maintaining its leading position in the Hajj services sector, where it still holds a substantial market share.

For the fiscal year ended 30/02/1446 AH, the Company recorded total revenues of approximately SAR 963 million, with a gross profit margin of 33.5% and a comprehensive income margin of 20.7%. This success was the result of close collaboration with our partners from the Pilgrims’ Affairs Offices in the countries we were honored to serve, culminating in our receipt of the Labaytum Award for Excellence in Serving the Guests of Allah for 1445 AH, granted by the Ministry of Hajj and Umrah.

We hope to continue our journey of excellence year after year, moving forward with confidence toward a future founded on giving, growth, and prosperity, guided by ambitious plans aimed at diversifying investments and expanding partnerships both locally and internationally.

Our Strategy for Growth and Prosperity

Our strategy focuses on achieving sustainable growth, maintaining strong relationships with our existing clients, and enhancing our presence both locally and internationally. To achieve this, we have established three new companies to provide diversified services aimed at ensuring financial sustainability. In the next phase, we aim to establish new investment companies at both local and international levels, alongside the commencement of meal production at Manaf Al-Ghitha’i Factory.

Our ambitious growth strategy is built around the following pillars:

Measured expansion into new markets** and enhancement of our service diversity to meet the needs of a broader segment of clients.
Continuous improvement of service quality** to ensure the delivery of exceptional experiences that exceed our clients’ expectations.
Establishment of subsidiaries in multiple sectors** to open new investment opportunities and strengthen our integrated ecosystem for sustainable growth.

Gratitude and Appreciation

I extend my sincere thanks and appreciation to our partners for their continuous trust and unwavering support, which have been fundamental in achieving our ambitions. I would also like to express my gratitude to the members of the Board of Directors for their constructive guidance and fruitful efforts, and convey my deep appreciation to all employees of the Company and its subsidiaries for their dedication and tireless work. With the will of Allah, we look forward to continuing our journey of success and excellence with you in the coming year, and to writing a new chapter of giving and achievement.

Chief Executive Officer