CMA LAW: Announcement regarding issuance of Disciplinary Board Resolution No. (22/2026 Disciplinary Board) (22-28/2026 Authority) and imposition of a fine against: Dalqan Real Estate Company for violating the Rules of Listing and Disclosure and Transparency.

Announcement regarding issuance of Disciplinary Board Resolution No. (22/2026 Disciplinary Board) (22-28/2026 Authority) and imposition of a fine against: Dalqan Real Estate Company for violating the Rules of Listing and Disclosure and Transparency .

For the following reasons:
First: violation of the provision of Item (2) of Article (1-16-1) of Module Twelve (Listing Rules) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:

It was proven to the CMA that the Company failed to submit copy of its annual financial statements for the year that ended on 31/12/2025 through the CMA’s electronic disclosure system (XBRL), and failed to disclose at the Exchange within the legally specified periods in accordance with the requirements of Item (2) of Article (1-16-1) previously mentioned, noting that the specified period has ended on 31/03/2026.

Second: a) The provision of Article (4-6-3) of Module Ten (Disclosure and Transparency) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:

b) The provision of Article (4-6-5) of Module Ten (Disclosure and Transparency) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:

It was proven to the CMA that the Company failed to accurately disclose at Boursa Kuwait Securities Exchange the material information related to the declination of (the Company’s external auditor) to complete the audit of the Company’s financial statements for the financial period that ended on 31/12/2025, as stated in his letter on 01/04/2026. The Company’s disclosure on 05/04/2026 regarding the results of the Board of Directors meeting did not align with the aforementioned letter of the external auditor; however, it only announced the following: "The final financial statements were not approved because the Company has not received the final report and audited financial statements from the external auditor, and has received a letter from the external auditor on April 2, 2026, stating that the audit work was not completed and the final report will not be issued at this time." This statement failed to accurately reflect the true nature of the material information, as it omitted the declination of the external auditor to complete the audit of the company’s financial statements, as well as the reasons thereof according to his letter previously mentioned. Furthermore, the Company failed to comply with the CMA’s instructions conveyed in its emails requiring a corrective disclosure and including the reasons of the external auditor’s declination to complete the audit of the Company’s financial statements.

The Resolution included the infliction of the following penalty: -
“Levying a fine on Dalqan Real Estate Company in an amount of KWD 5,000 (five thousand Dinars) for each of the two attributed violations.”

In this regard, the CMA emphasizes the implementation of CMA Law and its Executive Bylaws on all persons dealing in securities activities, and urges them to comply with these Laws in order to promote investors' confidence, create a sound investment environment, and implement the Law according to the principles of fairness, transparency, and integrity in line with the best international practice.

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