Yaqoub Al-Awadhi, Chairman of the Board of Directors of Retaj Holding Company, stated that the year 2022 was characterized by numerous economic difficulties that had an impact on production and investment activities across various sectors worldwide, including the company’s subsidiaries operating in Egypt. The primary issue that significantly affected the company’s business operations was the depreciation of the Egyptian pound against a range of currencies, particularly the US dollar, which began in April 2022 and continues to persist.
Al-Awadhi further explained that this currency depreciation caused an escalation in inflation, subsequently increasing production costs. In response to these inflationary pressures, the Central Bank of Egypt raised the discount rate multiple times throughout 2022. This action mirrored the approach taken by central banks worldwide to manage price inflation. As a consequence, financing costs experienced a global upsurge.
He emphasized that the bureaucratic processes in Kuwait act as a hindrance to the growth and expansion of the pharmaceutical industry. These processes also restrict the country's ability to attract foreign investments. It is anticipated that there should be more favorable conditions provided for foreign investors, not only in the pharmaceutical industry but also in other sectors. These conditions should include simplified licensing procedures, streamlined employment regulations, and improved allocation of industrial lands for industrial purposes.
He highlighted the disparity between Kuwait and neighboring countries regarding the favorable facilities provided to foreign investors. While facing difficulties in Kuwait, the company is actively pursuing the development of factories in Egypt to enhance export and sales activities. However, he mentioned that there are currently no new deals in progress.
These remarks were made during the company's Annual General Meeting (AGM), which had a full attendance rate of 100%. The AGM reached a consensus not to distribute profits for the financial year ended 31 December 2022, and also decided not to provide remuneration to the members of the Board of Directors.
Furthermore, the AGM approved to allocate 10% of the net profits from the financial year ended 31 December 2022, to the statutory reserve account, totaling KWD 163,574. Additionally, another 10%, equivalent to KWD 163,574, was allocated to the voluntary reserve account.
The Board of Directors was granted the authority to enter into necessary agreements with both local and foreign banks and financial institutions to secure financing for the company's operations. Moreover, the Board of Directors received authorization to engage with local and foreign banks, as well as financial institutions, in alignment with the company's objectives.