Page 22 - 2016-R0

Major Risks Facing the company are:

1. The high cost of financing:

- High costs associated with one-credit risks faced by the company,
given its need for banking facilities to implement current and future
expansion projects, which leads to higher funding costs accordingly. In
this regard, it should be noted with caution by some local banks
granting credit facilities to companies operating in the construction
sector, where risk factors are as follows:

- Cash flow was affected negatively as a result of the delay in
collection of most project owners.

- Increased costs as a result of the application of some of the legislative
changes. To mitigate the risks that
dependent on government
- Delay in clearance of projects with her owners after completion of
spending, the company
implementation, to the detriment of the Performance Guarantee
already started diversification
release and receipt of final payment.
of its revenue streams to
- Some observations concerning the application of the unified reduce reliance on project
government system based contract competitions, government income associated with
procurement, including, without limitation, failure to comply with government spending by
time frames regarding and modify design approval and also measure considering investments with
the percentage of completion based on the price of items not on the private sector. Without
working hours spent, as well as change orders cannot be invoiced dropping the interest in
pending the completion of the documentary procedures. persuading projects reliant on
government spending.
- The impact profitability negatively as a result of the above
20