Title: Announcement regarding issuance of Disciplinary Board Resolution No. (15/2025 Disciplinary Board) (66,69,71, and 72/2024 Authority) and imposition of a fine against: 1- Massaleh Real Estate Company, 2- Chairman of the Board of Directors, 3- Vice Chaiman of the Board of Directors and former Board Member, 4- Member of the Board of Directors (7 Members), 5- Former Vice Chairman of the Board of Directors, 6- Chief Executive Officer, 7- Financial Manager, 8- Former Chief Executive Officer, 9- Former Financial Manager, 10- (KPMG – Safi Al-Mutawa and Partners) as the Former External Auditor, 11- Albazie and Partners (RSM) as the Former External Auditor of Massaleh Real Estate Company, 12- Albazie and Partners (RSM) as the Former External Auditor of Massaleh Real Estate Company, for violating the Listing Rules, Corporate Governance, International Accounting Standard, and Securities Activities and Registered Persons

Announcement regarding issuance of Disciplinary Board Resolution No. (15/2025 Disciplinary Board) (66,69,71, and 72/2024 Authority) and imposition of a fine against: 1- Massaleh Real Estate Company, 2- Chairman of the Board of Directors, 3- Vice Chaiman of the Board of Directors and former Board Member, 4- Member of the Board of Directors (7 Members), 5- Former Vice Chairman of the Board of Directors, 6- Chief Executive Officer, 7- Financial Manager, 8- Former Chief Executive Officer, 9- Former Financial Manager, 10- (KPMG – Safi Al-Mutawa and Partners) as the Former External Auditor, 11- Albazie and Partners (RSM) as the Former External Auditor of Massaleh Real Estate Company, 12- Albazie and Partners (RSM) as the Former External Auditor of Massaleh Real Estate Company, for violating the Listing Rules, Corporate Governance, International Accounting Standard, and Securities Activities and Registered Persons.

For the following reasons:
First: Massaleh Real Estate Company, violated the provision of Article (1-14) of Module Twelve (Listing Rules) of the Executive Bylaws of Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and their amendments. The following was proven to the CMA:

The Company did not comply with the International Accounting Standard (24) (IAS 24 – Related Party Disclosures) in its financial statements for the year that ended on 31/12/2023, especially Paragraph (11/c) of the mentioned accounting standard.

Second: The following Members of the Board of Directors of Massaleh Real Estate Company:
1. Chairman of the Board of Directors.
2. Vice Chaiman of the Board of Directors, and Board Member (formerly)
3. Member of the Board of Directors.
4. Member of the Board of Directors.
5. Member of the Board of Directors.
6. Member of the Board of Directors.
7. Member of the Board of Directors.
8. Vice Chairman of the Board of Directors (formerly).
9. Member of the Board of Directors (formerly).
10. Member of the Board of Directors (formerly).

They violated the provision of Item (5) of Article (3-7) of Module Fifteen (Corporate Governance) of the Executive Bylaws of Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and their amendments. It was proven to the CMA through reviewing the financial statements of Massaleh Real Estate Company for the ended years between 31/12/2018 and 31/12/2023, that they did not perform the role assigned to them in accordance with the mentioned Article through ensuring the Company’s compliance with Article (1-14) of Module Twelve (Listing Rules).

Third: The following members of executive management of Massaleh Real Estate Company:
1. Chief Executive Officer.
2. Financial Manager.
3. Chief Executive Officer (formerly).
4. Financial Manager (formerly).

They violated the provision of Item (4) of Article (3-10) of Module Fifteen (Corporate Governance) of the Executive Bylaws of Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and their amendments. It was proven to the CMA through reviewing the financial statements of Massaleh Real Estate Company for the ended years between 31/12/2018 and 31/12/2023, that they did not perform the role assigned to them in accordance with the mentioned Article through ensuring the Company’s compliance with Article (1-14) of Module Twelve (Listing Rules).

Fourth: The following auditors:
1. KPMG – Safi Al-Mutawa and Partners, in its capacity as the former external auditor, violated the provision of Article (3-4-5) of Module Five (Securities Activities and Registered Persons).
2. Albazie and Partners (RSM), in its capacity as the former external auditor of Massaleh Real Estate Company, violated the provisions of Article (3-4-5) of Module Five (Securities Activities and Registered Persons).
3. Albazie and Partners (RSM), in its capacity as the former external auditor of Massaleh Real Estate Company, violated the provisions of Article (3-4-5) of Module Five (Securities Activities and Registered Persons).

The Resolution included the infliction of the following penalty: -
“First: Levying a fine on Massaleh Real Estate Company in an amount of KWD 30,000 (thirty thousand Dinars) for the attributed violation in all its parts.

Second: Levying a fine as follows:
(a): - 1- Chairman of the Board of Directors.
2- Member of the Board of Directors.
3- Member of the Board of Directors.
4- Member of the Board of Directors.
5- Member of the Board of Directors.

In the amount of KWD10,000 (ten thousand Kuwaiti Dinars) on each one of them for the attributed violation in all its parts.

(b) Member of the Board of Directors, in the amount of KWD 8,000 (eight thousand Kuwaiti Dinars) for the attributed violation in all its parts.

(c): -1- Member of the Board of Directors (formerly).
2- Member of the Board of Directors (formerly).
In the amount of KWD 2,000 (two thousand Kuwaiti Dinars) on each of them for the attributed violation.

(d): - 1- The Company’s financial Manager, in the amount of KWD 5,000 (five thousand Kuwaiti Dinars) for the attributed violation in all its parts.
2- The Company’s financial Manager (formerly), in the amount of KWD 3,000 (three thousand Dinars for the attributed violation in its two parts.

Third: Levying a fine on each of:
1- Vice Chaiman of the Board of Directors, and Board Member (formerly), in his capacity as the Company’s Chief Executive Officer, in the amount of KWD 20,000 (twenty thousand Dinars) for the attributed violations due to correlation.
2- Vice Chairman of the Board of Directors, in his capacity as the Company’s Chief Executive Officer (formerly), in the amount of KWD 15,000 (fifteen thousand Kuwaiti Dinars) for the attributed violations due to correlation.

Fourth: Levying a fine on each of:
1- KPMG – Safi Al-Mutawa and Partners, in its capacity as the former external auditor, in the amount of KWD 2,000 (two thousand Kuwaiti Dinars) for the attributed violation.
2- Albazie and Partners (RSM), in its capacity as the former external auditor of Massaleh Real Estate Company, in the amount of KWD 5,000 (five thousand Kuwaiti Dinars) for the attributed violation.
3- Albazie and Partners (RSM), in its capacity as the former external auditor of Massaleh Real Estate Company, in the amount of KWD 8,000 (eight thousand Kuwaiti Dinars) for the attributed violation in all its parts.

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.