-Growth in revenue by 56%, compared to comparative year, due to strong improvement in hotel occupancy and average room rates, in addition to growth in the commercial centers revenue.

-Growth in revenue by 56%, compared to comparative year, due to strong improvement in hotel occupancy and average room rates, in addition to growth in the commercial centers revenue.

-Recognition of gain of SR 391 million on sale of land in Jabal Omar project in the current year.

-Reduction in operating expenses by 20% mainly due to reversal of the provision for credit losses and decreasing in professional fees related to financial restructuring.

In our opinion, except for the possible effects on the corresponding figures for the year ended 31 December 2023 of the matter described in the Basis for Qualified Opinion section of our report, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at 31 December 2023, and its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”) that are endorsed in the Kingdom of Saudi Arabia and other standards and pronouncements issued by the Saudi Organization for Chartered and Professional Accountants (SOCPA).

As of 31 December 2023, the Group’s total assets include Property, Plant and Equipment and Investment Properties (collectively referred to as the ‘Properties’) amounting to SR 21,357 million and SR 3,508 million respectively (31 December 2022: SR 19,502 million and SR 5,048 million respectively).

As disclosed in note 5, due to the presence of impairment indicators identified in the current and previous financial periods, management performed an impairment exercise in those respective periods. Pursuant to management’s impairment assessment carried out during the year ended 31 December 2023 which included a retrospective review of recoverable amount of the Properties in prior periods, management identified that certain properties required an impairment adjustment of SR 0.7 billion as at 1 January 2022. Accordingly, management recognized the adjustment by restating the corresponding balances of Property, Plant and Equipment and Accumulated Losses as of that date. The effect of the restatement is disclosed in note 29. In management’s view, the estimates of recoverable amount used in carrying out the foregoing impairment assessment and the resulting restatement are based on assumptions and judgments existing as of the date of such restatement i.e., 1 January 2022. However, due to the elapse of time and significant changes in market conditions since the date of restatement, we are unable to conclude whether those assumptions and judgments were reasonable as at 1 January 2022 and unaffected by the events, circumstances and information arising subsequent to the restatement date and therefore do not incorporate any hindsight. Accordingly, we were unable to conclude whether any adjustment is required to the reported amounts of the Properties and Accumulated Losses as of 1 January 2022 as well as to the amount of expenses reported in the consolidated statement of profit or loss and other comprehensive income for the comparative year ended 31 December 2022. Our report for the current year is qualified due to the effects of these matters on the comparability of the current year’s figures and the corresponding figures.

We conducted our audit in accordance with International Standards on Auditing that are endorsed in the Kingdom of Saudi Arabia. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the International Code of Ethics for Professional Accountants (including International Independence Standards), that is endorsed in the Kingdom of Saudi Arabia, that are relevant to our audit of the consolidated financial statements, and we have fulfilled our other ethical responsibilities in accordance with the Code’s requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.

We draw attention to note 2.4 of the consolidated financial statements, which indicates that the Group generated negative operating cash flows amounting to SR 335 million during the year ended 31 December 2023 and, as of that date, the Group's current liabilities exceeded its current assets by SR 473 million. Moreover, the Group’s forecasted cash flows showing a net positive cash flow position for the next twelve months, from the reporting date, are significantly dependent upon debt financing and the Group’s ability to sell certain land parcels, including those classified under Assets Held for Sale in the consolidated statement of financial position as at 31 December 2023. As stated in note 2.4, these events and conditions along with other matters set forth therein, indicate that a material uncertainty exists that may cast significant doubt on the Group's ability to continue as a going concern. Our opinion is not modified in respect of this matter.