Annual Report 2024

Dar Al-Maal Al-Islami Trust NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2024 in thousands of USD 53 35. Right-of-use-assets and lease liabilities The statement of financial position shows the following amounts relating to lease (net of depreciation) 2024 2023 a) Right-of-use assets (Note 16) Office space 48,927 39,692 b) Lease liabilities (Note 18) Current 1,573 1,427 Non-current 56,677 51,439 Total 58,250 52,866 Additions to right-of-use assets during the years ended 31 December 2024 were amounted to US dollars 17.6 million (2023: US dollars 8.8 million). The total cash outflow for lease in 2024 was US dollars 13.0 million (2023: US dollars 11.7 million). 2024 2023 Interest expenses 6,716 5,101 Depreciation on right-of-use assets (Note 16) 8,707 7,529 36. Funds under management The Group manages Funds Under Management (“FUM”) through its different subsidiaries; Islamic Investment Company of the Gulf (Bahamas) Limited (“IICG”) and GIAMCO (together the “Investment Managers”). During the year, the Investment Managers have charged management fees of US dollars 15.8 million (2023: US dollars 16.0 million). Under the Modaraba's conditions, IICG must maintain the assets of the Modaraba separate from its own assets. As per the terms of the Modaraba and as per approval of the Shari’a Supervisory Board, IICG is entitled to a management fee of United States Dollars ("USD") 1 per USD 1,000 of investors' equity at the end of each month, irrespective of the expenses incurred. IICG has the right to its profit share of Modaraba as per the terms and conditions of the Modaraba agreement. However, since 2007, IICG has waived its right to receive its share of profit from the FUM. On the other hand, Dima City real estate fund is represented by GIAMCO who manages this fund in exchange for an annual fee of 2%. As of 31 December 2024, FUM amounted to 4.16 billion (2023: US dollars 4.37 billion) of which US dollars 1.61 billion (2023: US dollars 1.65 billion) has been marketed in Saudi Arabia by the Private Offices of His Royal Highness Late Prince Mohamed Al Faisal Al Saud. In February 2016, IICG” communicated to its investors in Saudi Arabia that it intended to wind up IICG’s Funds Under Management (“FUM”) in Saudi Arabia as the regulator, Capital Markets Authority (“CMA”), declined to grant any exemptions with respect to the registration and transfer of such FUM to a CMA registered subsidiary of IICG. The FUM has commenced distribution of the disposal proceeds of the underlying assets to the investors as and when such proceeds are realised. The final liquidation proceeds will only be known upon completion of the liquidation process which may take several years. As a part of winding up of the Saudi operations, claims have been initiated against the Company by investors who are unlikely to recover the full value of their investments. As of 31 December 2024, as per the management assessment, three hundred forty-six investors (2023: three hundred forty-three investors) have filed legal claims in Saudi Arabian courts against IICG claiming refund of the full value of their investments amounting to USD 104.8 million (2023: USD 104.3 million). Out of the three hundred forty-six legal cases, the court has rendered judgments against the Company in two hundred and forty-two claims (2023: two hundred and forty-one) amounting to USD 77.2 million (2023: USD 77.2 million). IICG has challenged such judgments in the Appeal and Supreme Courts. As at 31 December 2024, two hundred and five cases (2023: two hundred and five cases) have been resolved by the Supreme Court in favour of the claimants, while eight cases (2023: eight cases) are still under appeal in the Supreme Court.