Arkan Al-Kuwait Real Estate Company (the merging company) has signed a preliminary agreement with Al-Awlaa Real Estate Investment Company (the merged entity) for the merger project, in accordance with the provisions of Module 9 (Merger and Acquisition) of the Executive Regulations of Law No. 7 of 2010 regarding the establishment of the Capital Markets Authority and the regulation of securities activities. This is a preliminary step towards preparing the required documents and submitting them to regulatory authorities for obtaining approvals and making the necessary disclosures.

Arkan clarified in its statement issued today to Boursa Kuwait that the financial impact, in the event of finalizing the merger process, would involve the dissolution of Al -Awlaa Real Estate Investment Company (the merged entity) and transferring its liabilities to Arkan Al-Kuwait Real Estate Company (the merging entity). The shares of Arkan will continue to be traded on Boursa Kuwait.

On May 31st, the Board of Directors of Arkan Al-Kuwait Real Estate Company met and approved in principle to merge with Al-Awlaa Real Estate Investment Company. The executive management was tasked with taking the necessary steps, with Arkan becoming the merging company. The company confirmed that there is currently no impact of this information on its financial position.