Asas Makeen Real Estate Development and Investment Co. Announces an update on Announcement by Asas Makeen Real Estate Development and Investment Company published on the Saudi Stock Exchange website regarding updates on white land fees.

* The invoiced amounts will be recorded as financial liabilities in accordance with the applicable accounting standards. Given the size of these fees relative to the Company’s overall portfolio and assets, no material impact on its financial position is anticipated. The relevant liabilities will be reflected in the financial statements for the corresponding reporting period.

* The land plots subject to the invoices are located in Riyadh within the officially declared fee zone and form part of the Company’s future development plans. The Company is in the process of completing the required development and regulatory procedures in accordance with the applicable laws and regulations. Of these invoices, three (3), totaling SAR (1,098,151), relate to projects for which occupancy and completion certificates have already been issued. In addition, seven (6) invoices totaling SAR (6,908,918) were issued due to the existence of impediments preventing the issuance of the necessary licenses and approvals required for development or construction.

* As these lands are under development and, in the Company’s assessment, do not fall within the definition of “White Land” as set out in the Executive Regulations, the Company intends to submit formal objections to the invoices within the statutory period of sixty (60) days from the date of notification, as indicated by the Ministry of Municipal and Rural Affairs and Housing, and will pursue the relevant legal procedures accordingly.