2023

Annual Report

MEEZA 1
 In the Name of Allah Most Gracious Most Merciful

His Highness His Highness

Sheikh Tamim bin Hamad Al Thani Sheikh Hamad bin Khalifa Al Thani
Emir of the State of Qatar The Father Emir
 01 Overview of MEEZA
Board of Directors Report to Shareholders
MEEZA at a glance
06
08
10
MEEZA Portfolio 11
MEEZA’s Journey 12
Investment Case 14
Business Model & Strategy 16
Clients and Partners 18
Human Capital 20
Board of Directors 22
Management Team 28
Sustainability 32

02 FY 2023 Year in Review

Message from the Acting CEO
Operational and Financial Highlights FY 2023
34
36
38

03 Corporate Governance
Introduction
Governance Framework
44
46
48
Board of Directors 50
Board Members 53
Board Meetings 54
Board Remuneration 55
Board Activities 55
Board Committees 56
Management Executive Committee 61
Board of Directors Performance Assessment 61
Executive Management 62
Board Secretary 63
Pending Litigation 63
Internal Audit Objectives and Activities 63
Risk Management and Internal Control 64
Compliance 65
External Audit 65
Main Policies 67
Shareholder Records 68
Annual General Meeting 69
Conflict of Interest 70
Related Parties 70
Disclosure Requirements 72
Subsidiaries 72
Corporate Social Responsibility 73
External Auditors’ Report on Corporate Governance 74
External Auditors’ Report On Internal Controls Over 78
Financial Reporting (ICOFR)
Director’s Assessment of Internal Controls on Financial 82
Reporting (ICOFR)

04 Audited Financial Statements FY 2023 84

4 MEEZA
70
01
Overview of
MEEZA
 Board of Directors
Report to Shareholders
On behalf of the Board of Directors, it gives me great pleasure
to present to you MEEZA’s financial results and business
performance for the year ended 31 December 2023.

Becoming a Public Company Today, MEEZA offers a host of services headlined by

data center services and managed IT and cybersecurity
This is MEEZA’s first set of annual results as a public services, in addition to IT solutions, cloud services and
company, following a transformative year that saw the workplace services. MEEZA is also the leading master
successful completion of its Initial Public Offering and systems integration partner for smart cities in Qatar.
official listing on the Qatar Stock Exchange in August
2023. Solid 2023 Results

MEEZA’s book building exercise was the first in Looking at the past year, our Net Profit increased to
Qatar’s history, attracting qualified local investors and QR 60.2 million (QR 0.09 earnings per share), MEEZA’s
individuals through a multi-stage process that was highest ever thanks to the favorable revenue mix and
oversubscribed, with demand reaching 111% of the ongoing cost optimization initiatives over the past few
offered shares. years. The Net Profit Margin for the year was 14.2%.

MEEZA shares closed at a price of QR 2.87 on 31 MEEZA achieved a strong top line growth of 19.8% to
December 2023, appreciating by 32% from the original QR 422.9 million led by growth in the Solutions and
IPO price, reflecting the investors’ belief in MEEZA’s Managed Service segments. EBITDA for the year was
value. QR 123.5 million, with an EBITDA margin of 29.2%.

Market Positioning The Company sits in a healthy net cash position, with
QR 250 million in cash and cash equivalents as of 31
As shareholders, you may be well aware that MEEZA December 2023 against QR 135 million in total debt.
offers a rare opportunity for investors to gain exposure MEEZA will leverage this position to fund its upcoming
to the surging ICT services sector. Our strategic expansion plans and increase the returns on capital.
portfolio is well positioned to take advantage of the
latest trends in digital transformation, cloud computing, In line with our commitment to maximizing value to our
and Artificial Intelligence (AI), and data analytics across shareholders, the Board of Directors has recommended
various industries, on top of the ever-increasing user the distribution of a cash dividend of QR 0.08 (8% of
data consumption, which is fueled by online services the nominal share value), subject to approval at the
such as content streaming and e-commerce. upcoming Annual General Assembly.

8 MEEZA
A Sincere Thank You

We extend our sincere gratitude to His Highness Sheikh

Tamim bin Hamad Al-Thani, Amir of State of Qatar for
his leadership and support of Qatar’s economy, and
the IT sector in specific, which has allowed MEEZA to
thrive and has opened doors for further expansion and
growth.

Our thanks also go to our partners in the Qatari

financial market here in Qatar, who made our journey
into a public company seamless. In particular,
we thank Qatar Science and Technology Park, Qatar
Financial Markets Authority, Qatar Stock Exchange,
and Qatar Central Securities Depository who supported
us along the way.

On behalf of our executive team and employees, we

also thank all our key business stakeholders, from
clients to partners and vendors for helping us deliver
at the superior level of service that has come to be
expected from MEEZA.

Finally, a heartfelt thank you is owed to our dear

shareholders, for their continuing trust and support.

SHEIKH HAMAD BIN ABDULLA

BIN JASSIM AL-THANI
Chairman

MEEZA 9
 MEEZA at a glance

MEEZA QSTP-LLC (Public) is an established end-to-end

managed IT services and solutions provider founded in Qatar
Science & Technology Park (QSTP), that aims to accelerate the
growth of the country and the region through the provision of
world-class services and solutions, while providing the Qatari
people and others throughout the region with opportunities to
undertake fulfilling careers in the IT industry.

MEEZA is a publicly quoted company on the Main MEEZA’s offerings include Managed IT Services, Data
Market of Qatar Stock Exchange, open to customers Centre Services, Cloud Services, and IT Security
and investors with share capital of 648,980,000 QAR. Services, in addition to expertise in Smart Cities
Solutions and Artificial Intelligence (AI).
The company has five Tier III certified data centers,
known as M-VAULTs, offering a guaranteed uptime For more information, please visit: [Link]
of 99.98% built to comply with the most exacting
international standards enabling businesses to benefit
from greater efficiencies and reduce risks.

10 MEEZA
MEEZA Portfolio
MEEZA’s core mission seeks to provide solutions that
reduce the cost and complexity of initial and ongoing IT
requirements. It does so by offering local IT services and
skills to augment and outsource customers’ own in-house
assets and capabilities. By leveraging MEEZA’s state-of-the-
art facilities and around-the-clock operations and support
service coverage, customers are able to focus on their own
core missions. MEEZA offers a varied spectrum of technical
services that extends a variety of business offerings in order
to serve all customers regardless of their current technology
resources.

MEEZA’s lines of service include: Workplace Service: provision of onsite resources to

assist clients to operate end-userdevices, IT systems
Data Centre Services: development, management and networks
and leasing of physical DCs for clients to safely store
their servers and data. DC Services include colocation Cloud Services and Solutions: provision of cloud
services, whereby MEEZA manages the DC for the services through a private, public or hybrid network
client and data suites, whereby clients choose to self- based on the DC’s infrastructure
manage their IT equipment or MEEZA manages their
IT assets Master System Integrator: multiple IT product lines,
including project management, operations and
Solution Services: ad hoc IT consultancy, integration, hardware and software resale, whereby MEEZA is
hardware, software resale and installation services responsible for the set and maintenance of the whole
IT infrastructure to Qatari smart cities.
Managed Services: tailored IT services provided
to customers based on their specific requirements,
including applications and infrastructure, as well as
provision and management of end-to-end network
solutions to and from customers

MEEZA 11
 MEEZA’s Journey
MEEZA was founded in 2008 as the IT service provider for
Qatar Foundation and expanded to provide services to the rest
of the market. Built around a mature IT services framework
(ITILv3), MEEZA initially offered a single data centre (DC) facility
along with service monitoring and management capabilities
powered by a small team of engineers and IT analysts. In doing
so, MEEZA started providing 24x7 operations and support for
IT infrastructure both on-premises and at customer sites, along
with IT workloads hosted in its own DC.

12 MEEZA
MEEZA was the first company in Qatar to provide public SDI certification for its IT service desk amongst a list of
cloud computing services, starting with its Microsoft other industry firsts.
SharePoint and Email Exchange as-a-service offerings
for medium and large enterprises. Subsequently, In that same year, MEEZA became the country’s first
MEEZA continued to expand its portfolio of managed Smart City Master Systems Integrator having won
IT services, expand its data centre sites into MV-3 (a the prestigious contract to design, build and operate
high-density Tier-3 data centre design and built facility), Qatar’s largest smart city project, Msheireb Downtown
MV-2 (disaster-recovery large scale facility located Properties.
outside of Doha), MV-4 (hyperscaler hosting platform
in QSTP) and, more recently, MV-5. Today, MEEZA is an end-to-end provider of IT services
in the country built on a service framework, capable of
MEEZA worked together with ictQatar (later as the providing its customers with IT hosting, operations and
Ministry of Information and Information Technology) to support functions whether on-premise or collocated in
host the country’s first QITCOM nationwide technology its DCs, whether in-cloud computing services or via
conference. managed local services.

Other notable milestones include MEEZA’s first-in-

country launch of a commercial security command-
and-control centre (SoC) in 2014 as well as first 4-star

MEEZA 13
 Investment Case

MEEZA has many competitive Company’s formation in 2008, when customers were
previously forced to procure technology from vendor
advantages in the Data Center resellers and resorting to third parties to deliver and
install the systems before handing operations back to
and IT services sector: the customers’ own staff in a multi-hop and lengthy
process. MEEZA led the way since delivering turnkey
Leading market position IT as-a-service solutions, alleviating the often-lengthy
contracting and purchasing cycles whilst removing
MEEZA was the first company in the Qatar market IT operations complications from the customer side.
to provide IT technology in the form of end-to-end This helped MEEZA establish a leading position as a
service-level-agreement (SLA) bound services. This recognized outsourcing and IT service provider in
was considered a market phase shift at the time of the Qatar.

14 MEEZA
The Qatari data centre space currently features several Ecosystems of long-term business relationships
companies whose data centre colocation capacity is
commercially available to third parties as part of their Since its early days, MEEZA recognized the critical role
core business. MEEZA is currently the market leader of long-term business relationships in the development
with a total IT capacity of 14 MW (around half of the of its business. As a service provider, and not a mere
market share based on Qatar estimated supply capacity) reseller of technology, MEEZA requires a healthy
from operating 5 data centres in Qatar. MEEZA intends ecosystem of long-term business relationships to keep
to expand its capacity to meet the growing demand. its services ahead of the customer expectations. With
the variety of IT options and configurations available to
Long-term customer relationships customers, this translated into a long list of hardware
vendor long term business relationships such as Cisco,
Most of MEEZA’s contracts with its customers run a HP and Huawei, software vendors including Oracle
minimum of 3-years in duration, with some extending and participation in the Microsoft Cloud Partner
to 10-15 years before triggering renewals. To MEEZA, Program, security product specialists (for example, Palo
this translates into recurring revenue streams whereby Alto and Splunk. This long and growing list of long-
the Company focuses on upselling to its existing term business relationships is managed by MEEZA via
customers as new services are introduced in MEEZA’s a dedicated team of long-term business relationship
service portfolio. The Company also targets new managers who specialize in the healthy maintenance
customer acquisitions while attempting to re-sign and of such business relationships, ensuring technical
upsell to existing customers. product and commercial support to enhance MEEZA
offerings and market winning chances. The long-term
Services and solutions portfolio business relationship team looks after the continuous
development of this ecosystem while adding to MEEZA’s
MEEZA has a wide variety of turnkey services and internal long term business relationship certifications
solutions addressing its customer needs, from the bare for added product knowledge and skills capacity.
metal infrastructure such as DC and servers to hands-
off managed IT services handling complex customer Experienced management team
environments, to the more complex solutions in the
business continuity, smart city and large enterprise MEEZA’s executive team is one of its key differentiators
application space. in this market, including a mix of local Qatari leaders
along with global expat expertise with service track
Investments in IT systems and assets records at some of the world’s largest technology
and service provider names. The well-versed local
From its state-of-the-art DC facilities to advanced leadership team has a distinguished background at
artificial intelligence powered cybersecurity platforms, leading Qatari entities whereas the expat team has held
MEEZA has been investing in assets and technology numerous top executive roles in technology hub spots
systems to enhance the value of its services. This has abroad, regionally and worldwide.
also been the case over the years in intrinsic platforms
used by the business, such as the company’s internal
ERP improvements, CRM upgrade projects and
more recently the “360” project which links all the
company’s systems together to offer the Company’s
management an integrated, comprehensive survey of
current activities and services across the lifecycle of
MEEZA’s business.

MEEZA 15
 Business Model &
Strategy
The Company seeks to maximize Shareholder value by
capitalizing on its current position as the leading IT services
provider. The Company continues to build on recent market
cloud accelerated development ushered by the arrival of large
Tier-1 hyper-scaler cloud platforms (such as Microsoft Azure and
Google GCP) and sophisticated cybersecurity requirements.
These trends subsequently feed into the DC market expansion
which MEEZA aspires to capture in the process.

MEEZA’s strategy revolves around two main themes: Data centers (DCs) – development, management
excellence in operations, and continuous innovation. This and leasing of physical DCs for clients to safely
is centered around three key technology areas built atop of store their servers and data. DC Services include
the Company’s core skillsets and service culture. These areas colocation services, whereby MEEZA manages
are:

16 MEEZA
the DC for the client and data suites, whereby clients Besides the areas of DC, cybersecurity, cloud and
choose to self-manage their IT equipment or MEEZA managed IT services, one of MEEZA’s principal
manages their IT assets activities has been the workplace services domain
(WPS) whereby field and client-site resources are
Cloud computing – hyper-scaler providers such as deployed as a managed extension of MEEZA to ensure
Microsoft offer their public cloud computing platforms on-premises operations and support. Given the specific
such as “Azure” while local providers have multiple nature of the WPS activity, MEEZA established a
flavors of cloud stacks from the private or specific subsidiary (MEEZA Information Technology WLL) to
customer-dedicated setups to the public shared-across- contain the governance of this service and all the legal
many-customers setup. MEEZA offers both flavors of and HR requirements of managing field resources and
cloud computing offerings, both private and public. contractors.
Examples of current cloud and content platform
providers in the world today include Google, Microsoft, Since its founding as a Qatar Foundation service
Amazon and Tencent. provider, MEEZA has now ventured into all main
market IT segments in Qatar with more than 100
Cyber Security services – 24x7 security operations clients. MEEZA has established itself as a credible
centers (SOC) are a specialized form of command- provider of IT services to governmental and quasi-
and-control environments looking after the safety of governmental entities, including a number of Qatari
customer’s own IT infrastructure and the data within. ministries amongst the Company’s client lists.
MEEZA offers a variety of commercial SOC’s in Qatar
and has developed many processes around leading
security technology products since 2013.

The Company intends to improve the overall value

and return to its Shareholders by monitoring the
implementation, plans and results of the Group through
discussions and reviews between the Board of Directors
of MEEZA and its executive management team.

MEEZA 17
 Clients and Partners
Clients

Most of MEEZA’s contracts with its customers run a minimum of 3-years in duration, with some extending to
10-12 years before triggering renewals. To MEEZA, this translates into recurring revenue streams whereby the
Company focuses on upselling its existing customers as new services are introduced in MEEZA’s service portfolio.
The Company also targets new customer acquisitions while attempting to re-sign and upsell to existing customers.

18 MEEZA
Partners

Since its early days, MEEZA recognized the critical role of long-term business relationships in the development
of its business. As a service provider, and not a mere reseller of technology, MEEZA requires a healthy ecosystem
of long-term business relationships to keep its services. Ahead of the customer expectations. With the variety of
IT options and configurations available to customers, this translated into a long list of hardware vendor long term
business relationships (such as Cisco, HPE and Huawei), software vendors (including Oracle and participation
in the Microsoft Cloud Partner Program (formerly the Microsoft Partner Networks), security product specialists
(for example, Palo Alto and Splunk). This long and growing list of long-term business relationships is managed
by MEEZA via a dedicated team of long term business relationship managers who specialize in the healthy
maintenance of such business relationships, ensuring technical product and commercial support to enhance
MEEZA offerings and market winning chances.

The long-term business relationship team looks after the continuous development of this ecosystem while adding
to MEEZA’s internal long term business relationship certifications for added product knowledge and skills capacity.

MEEZA 19
 Human Capital
MEEZA prides itself on providing a healthy, safe, and Organizational Chart
productive work environment. Everyone working at
MEEZA is expected to conduct MEEZA’s business affairs Over the last two years, MEEZA has undergone
honestly, fairly, impartially and in an ethical manner. significant growth, prompting the implementation
of enhancements to its organizational structure. This
MEEZA’s employees are encouraged to promote and restructuring has resulted in a more streamlined and
support rapport of mutual respect within the Company effective framework.
and to do their part in creating a productive and honest
and healthy work environment. The future growth
and success of MEEZA are based on integrity, ethical
behaviour and transparency as its foundation.

20 MEEZA
 Chairman

Nomination & Remuneration

Audit Committee Board of Directors
Committee

Internal Audit CEO Board Secretary

Governance, Risk & EPMO

Compliance

Information
Commercial Finance Corporate Services
Technology Services Strategy (CSO)
(CCO) (CFO) (CCSO)
(CIO)

Solutions Advisory1 Technical Facilities Finance Operations Human Capital Strategy & Performance

FP&A, Reporting, and

Sales Service Delivery1 Supply Chain Service Portfolio
Business Partnering1

Marketing & Business Process

Service Operations Investor Relations Legal
Communications Excellence

Administrative
Strategic Alliances Service Design
Services

Bid Management Information Security

Client Services

MEEZA 21
 Board of Directors
SHEIKH HAMAD BIN ABDULLA BIN
JASSIM AL-THANI
Chairman
Non-Executive and Non-Independent

Development Manager, Head of Public Sector Sales,

and Sales Director.
It is within these roles that Sheikh Hamad’s direction
resulted in the substantial share growth of Vodafone
Qatar’s enterprise market, as did the company’s
position as a central ICT service provider.

Prior to joining Vodafone Qatar, Sheikh Hamad

served in the Oil & Gas sector where he operated in
various areas such as industrial network engineering
and control system engineering.

Prior to assuming the role of Chief Executive Officer

(CEO) at Vodafone Qatar, Sheikh Hamad served as
Vodafone Qatar’s Chief Operating Officer (COO),
where he was responsible for the company’s Customer
Operations, Human Resources, Legal and regulatory
and External Affairs functions.

During his tenure as COO, Sheikh Hamad contributed

to ensuring that the company provided its customers
with the best services, through the successful
execution of a number of projects and programmes
including Customer Experience and Operational
Excellence and employee-related programmes that
achieved best practices, in addition to playing a key
role in helping to shape the regulatory environment
in the State of Qatar.

Since joining Vodafone Qatar in 2013, Sheikh Hamad

has served in several roles including Senior Business

22 MEEZA
H.E DR. HESSA AL JABER
Vice Chairman
Non-Executive and Independent

in Germany, Qatar University’s Board of Regents,

Qatar Museums Board of Trustee, Silatech Board of
Trustees Qatar National Library Board of Trustee, and
American School Board of Trustee.

She is a member of United Nations ITU Broadband

Commission for Sustainable development and Co-
Chair of Broadband Working Group on Disinformation
and Hate Speech.

Dr. Hessa was the former Minister of Information

and Communication Technology in Qatar. Prior to
becoming a minister, Dr. Hessa held the position
of Secretary General of the Supreme Council of
Information and Communication Technology
(ictQATAR) since its inception in 2005.

During her tenure, Dr. Al Jaber led the liberalization

Dr. Hessa Al Jaber is a Qatari engineer, academic of Qatar’s telecommunications market, ushering in
and politician. Dr. Al Jaber is the chairperson of Trio an era of choice and competition, she spearheaded
Investment, a technology investment company that the modernization of Qatar’s ICT infrastructure,
invest in innovative technology that address some of including founding Qatar National Broadband
the most pressing health problems in MENA region. Network, Eshailsat, and Malomatia.
Currently, Trio Investment is investing and building
Droobi – The first Arabic digital therapeutic product Dr. Hessa has led numerous initiatives to make
that uses behavior science, data analytics, and Qatar a more inclusive society through ICT with the
artificial intelligence to help people change their creation of the Qatar Assistive Technology Center
habits, improve their health and reduce their risk of (MADA), empowering people with disabilities in
chronic disease. Qatar, and was instrumental in the streamlining of
processes to make the Government more transparent
Dr. Al Jaber is the Chairperson of Qatar Satellite and accessible with the e-Government initiatives.
Company (Es’hailSat), and Malomatia (The leading
provider of Information Technology Services & Dr. Hessa holds a Bachelor of Science in Engineering
Solutions in Qatar). She is a memeber at the Shura from Kuwait University, and a Master’s Degree and
Council (Consultative Assembly), which is the Ph.D. in Computer Science from George Washington
legislative body of the State of Qatar. University, Washington, DC.

In addition, Dr. Aljaber is member of several boards

including; Volkswagen (AG) Supervisory Board

MEEZA 23
 Board of Directors
MR. SAAD SABAH AL-KUWARI
Vice Chairman
Non-Executive and Non-Independent

He has very rich experience in areas not limited to

Program and Projects Management, IT and Network
Infrastructure, Sales, Pre-Sales, Business Relationship
Management and Marketing.

Mr. Saad Al-Kuwari also Lead Project Management

Offices in both QF and Ooredoo in the past with the
responsibility of managing projects and corporate
initiatives in line with the corporate strategy for these
companies.

Mr. Saad Al-Kuwari holds a Double Major Bachelor’s

Degree in Computer Science and Business Information
Systems from University of Leeds Beckett University
and also a Master’s Degree in Leadership, Policy &
Innovation from Georgetown University.

Mr. Saad Al-Kuwari, representing Ooredoo at the

Board of Directors, in Ooredoo he is responsible for
the applications, programs, Ooredoo Core Network
with other operations and IT services delivery for
Ooredoo internal and external customers.

Mr. Saad Al-Kuwari brings with him a blended

background experience from Telecommunication
and Project Management with solid track record of
twelve (12) years and proven ability to build, lead
and mentor large multifunctional technical and
business teams.

He has hands on experience working with infrastructure

managed and cloud services, security services,
datacentres, IT Consolidation, IT Rationalization,
IT Transformation, administration of budget and
providing support to all Senior Management and
plays a significant role in confidence building and
source of trust when it comes to technology selection,
technology trends and evaluating current state.

24 MEEZA
DR. AHMED K. ELMAGARMID
Board Member
Non-Executive and Non-Independent

SOGEI (Italy) and UniSql. Dr. Elmagarmid serves

as the Chair of the IT Executive Committee of Sidra
Medical and Research Centre.

Early in his career he received the NSF’s Presidential

Young Investigator award from President Ronald
Reagan. He is an IEEE Fellow and an ACM Fellow, and
is also a member of Sigma Xi American Association
for the Advancement of Science (AAAS). The
University of Dayton and Ohio State University have
both named him among their distinguished alumni.
Dr. Elmagarmid has chaired and served on several
program committees and editorial boards.

Dr. Elmagarmid is an accomplished and well-

published scientist, authoring six books and more
than 180 papers, and has run several well-funded
research programs.
Dr. Elmagarmid is the inaugural Executive Director
of Qatar Computing Research Institute (QCRI), a Dr. Elmagarmid received his B.S. in computer science
national research institute and member of Qatar from the University of Dayton (1977) and his M.S.
Foundation. Since his appointment in 2010, Dr. (1981) and Ph.D (1985) from Ohio State University.
Elmagarmid has driven the Institute’s vision to bring
positive impact to citizens and society by focusing
on large-scale computing challenges that address
national priorities for growth and development.

Before joining Qatar Foundation, Dr Elmagarmid

held a number of prestigious posts in academia and
industry. He has held faculty positions at Pennsylvania
State University, the University of Padova, and Purdue
University, where he had been actively involved in
teaching and research for 25 years.

Dr. Elmagarmid served as a chief scientist in HP’s

Office of Strategy and Technology and has worked
with or consulted for Telcordia Technology, Bellcore,
IBM,CSC, Harris, D. H. Brown and Associates, MCC,
Bell Northern Research, Molecular Design Labs,

MEEZA 25
 Board of Directors
BRIG. ALI HARIB R H AL-HARIB DR. SAIF MOHAMMED S A AL-KUWARI
Board Member Board Member
Non-Executive and Independent Non-Executive and Independent

Brig. Ali is an independent member of the Board of Dr. Saif Al-Kuwari is an Assistant Professor at the
Directors of the Company and also Deputy Commander College of Science and Engineering at Hamad Bin
of the Qatari Emiri Signal Corps, Commander of the Khalifa University and the Director of Qatar Center
Cyber Security Unit, and Chairman of the Steering for Quantum Computing (QC2). Dr. Al-Kuwari holds
Committee of Project 401 and Brooq Project. a Bachelor of Engineering in Computers and Networks
from the University of Essex, UK (2006), and two PhD’s
Brig. Ali holds an electronics and communications in computer science from the University of Bath, UK
diploma from Britain and participated to many (2011) and Royal Holloway, University of London,
courses and workshops in the field and developed a UK (2011). His research interests include Quantum
global expertise through collaboration with renowned Computing, Cryptography, Computational Forensics,
international companies specialized in the field of and their connections with Machine Learning. He is
military technology. He was awarded a Medal of the IET and BCS fellow, and IEEE and ACM senior member.
Gulf War and the Liberation of Kuwait.
Previously, Dr. Al-Kuwari was the Director of the
Department of Information Technology at the Ministry
of Foreign Affairs and served on Qatar’s national
cybersecurity committee. Dr. Al-Kuwari received
several awards including two platinum awards for
outstanding academic performance and two MESA-
CISO100 Government Security Leader awards.

26 MEEZA
MR. FALEH MOHAMMED H A AL-NASR
Board Member
Non-Executive and Non-Independent

Mr. Faleh is a member of the Board of Directors of the

Company and also the Secretary of Projects and senior
member of the team of the Emiri Diwan, reporting
directly to His Highness on all major national projects
and investments under his stewardship. Mr. Faleh is
also the Chief Investment Officer of Qatar Foundation
Endowment, the endowment investment fund for
Qatar Foundation.

He holds board seats as non-executive director

with AKI (an investment company responsible for
managing Aspire foundation and Katara culture
village foundation investments), Epidaure (a French
manufacturer of luxury leather goods) and Tornado
Tower Company (owner and manager of Tornado
Tower, Doha’s premium office building). He holds a
Master’s from HEC Paris and Qatar in Strategic Business
Unit Management as well as a Bachelor’s in Business
& Management from Oxford Brookes University.

MEEZA 27
 Management Team
MR. MOHSIN NASSER AL MARRI
Chief Corporate Services Officer and
Acting Chief Executive Officer

Prior to joining MEEZA, Mr. Al Marri worked in Qatar

Foundation in the Procurement Directorate, prior to
that he worked in the Legal Department in Ras Gas
for 5 years.

Mr. Al Marri holds a Master’s degree in Business

Administration (MBA) from the University of Aberdeen,
a Bachelor’s Degree in Law from Qatar University,
and a diploma in Legal Studies, International &
Commercial Law from UK. Additionally, he is a
graduate of Qatar Leadership Center. Al Marri also
holds multiple certifications in Leadership, Operations
and purchasing Management, Risk Management in
Supply Chain, and Logistics Management.

Mr. Al-Ghaithani holds a Master’s degree in Business

Administration (MBA) from the University of Aberdeen,
a Bachelor’s Degree in Law from Qatar University,
As the Chief Corporate Services Officer and Acting and a diploma in Legal Studies, International &
CEO, Mr. Mohsin Nasser Al Marri is handling the Commercial Law from UK. Additionally, he is
IT Services, Corporate Services, Commercial Team a graduate of Qatar Leadership Center. Mr. Al-
Department, and Finance Team Department, in Ghaithani also holds multiple certifications in
addition to the Strategy team in MEEZA. Leadership, Operations and purchasing Management,
Risk Management in Supply Chain, and Logistics
He has a full understanding of the market and strategic Management.
business, driven with over 20 years of experience
in legal, contract management, procurement, and
business planning, also he has the ability to set
policies and implement regulatory and administrative
changes to achieve company’s goals.

Mr. Al Marri joined MEEZA in 2012 where he handled

the Procurement Department, where he worked on
the development of strategies for the Procurement
Department and also worked on reviewing all the
policies and procedures as well as cost reduction
initiatives.

28 MEEZA
MR. FAISAL AL-KUWARI
Chief Strategy Officer and Acting Chief Information
Technology Officer

As Chief Strategy Officer and Acting Chief

Information Technology Officer, Mr. Faisal Al-
Kuwari is an experienced and innovative CSO with
a proven track record in creating technology designs
that deliver strategically aligned results. He is able
to deliver leading edge technology transformations
from proof of concept to product realization through
agile management practices. Mr. Al-Kuwari heads up
the MEEZA service portfolio design and architecture
teams driving service excellence for clients.

Mr. Al-Kuwari has over Nineteen years experience in

IT at leading Commercial and Government entities
like the Ministry of Education and Qatar Gas. He later
held multiple supervisory and management roles at
KAHRAMAA in IT Operations and Systems Support
until appointed Head of Networking and Telecoms.
Before joining MEEZA in 2010, Mr. Al-Kuwari led the
managed services product development at QTEL.

MEEZA 29
 Management Team
DR. ENG. FADI NASSER
Chief Commercial Officer

to moving to Oman, Fadi served as Chief Alliances

Officer at MEEZA.

Fadi has an Executive MBA from HEC Paris and

recently completed his Doctorate in Nation-wide
Digital Transformation frameworks across the GCC.

As Chief Commercial officer, Dr. Fadi Nasser is

responsible for the management of all of MEEZA’s
commercial activities including sales, solutions
advisory , marketing and communications, strategic
alliances, bid management, and commercial strategy.

Prior to joining MEEZA, Fadi founded the new ICT

business unit at Omantel part of the Omantel-Zain
group of companies, MENA region’s 3rd largest
telco by revenue, serving as General Manager
and Senior advisor to CEO. There, he delivered
one of the region’s most successful telecom digital
transformations, leading the ICT group, joining the
boards of Joint Ventures and aligning all subsidiaries
to bring clients an unprecedented integrated value.
The group introduced services ranging from cloud
computing to big data, IOT platforms to Blockchain,
Big Data analytics and smart contact centres. Prior

30 MEEZA
MR. JAMES CORBY
Chief Financial Officer

Chartered Accountant (ICAEW) from the UK. Recently

he completed the ICAEW Diploma in IFRS and an
Admired Leaders certification from the Institute of
Leadership and Management.

Chief Financial Officer at MEEZA, Mr. James Corby

provides the organisation with an in depth view on
Strategic Financial Management including financial
planning, budgeting and reporting.

Mr. Corby brings with him a wealth of experience

having previously held a number of Finance roles
at Vodafone and Digicel (both Telecom operators)
covering areas of Financial Reporting, Finance
Operations, Treasury, Investor Relations, FP&A and
Business Intelligence. Prior to the Chief Financial
Officer position, Mr. Corby held a number of Head
of Finance roles and he started his finance career in
London working in practice specializing in audit and
corporate restructuring.

Mr. Corby has a Bachelor’s Degree in Geography

from Southampton University and is a Fellow

MEEZA 31
 Sustainability
At MEEZA, we strive to have a meaningful and positive impact on
the environment, for the communities we serve, our customers
and beyond.

In 2021, MEEZA performed an ESG gap assessment At MEEZA, we are committed to integrating
to understand its current ESG maturity and develop sustainability into our operations by developing and
an ESG performance roadmap that allows it to focus addressing environmental, health and safety aspects
on the most important issues to its business and key across the business, ensuring compliance to all legal
stakeholders. and regulatory requirements, and committing a
continual improvement to reducing our impacts.
Going forward, MEEZA aims to continuously improve
its approach towards ESG management on an ongoing Doing business in an environmentally responsible
basis, especially following its public listing and to manner is reflected in MEEZA’s adherence to
align with international reporting standards set by local environmental principles and practices in all aspects of
regulations, as well as Qatar’s National Vision for 2030, its operations. We invest in educational programs and
which defines the long-term goals for the country and raising awareness across the business to promote the
provides a framework in which national strategies and preservation and conversation of resources in our daily
implementation plans can be developed. business activities. MEEZA is certified for ISO 14001
Environmental Management System standards for six
years running.

32 MEEZA
Energy consumption and ill health by upholding policies and procedures
protecting personnel, premises and activities against
At MEEZA, we recognize the importance of reducing conscious and negligent unauthorized actions. For
our energy consumption to both minimize our negative example, all our employees and contractors must
impacts as well as to increase our operational efficiency. comply with our Health & Safety policy and procedures.

Our primary energy source is purchased electricity, We also keep up to date with relevant Health & Safety
thus relying on the country’s energy mix. In line legislative obligations and best practices, ensuring we
with our commitment to use energy efficiently at our adopt our own standards to protect human health,
operations, we are continually improving our “Power and safety where laws and regulations do not provide
Utility Efficiency” through optimization of the rooms adequate controls. For 6 years in a row now, MEEZA
climatization, lighting upgrade and increasing the IT and all of our data centres are ISO 45001 certified.
loads per facility. Furthermore, two of our data centres
are LEED certified. MEEZA keeps a Yearly Planned Preventive Maintenance
Schedule, and conducts mock drills in the form of
In 2021, MEEZA conducted its first carbon footprint EOP (Emergency operation procedures) to ensure our
assessment, covering its direct and indirect emissions. engineers remain familiar with procedures in case of
We recognize the importance of understanding our various emergencies. Over the coming years MEEZA
carbon footprint and reducing our impact wherever will aim to maintain or increase the safety performance
possible. MEEZA is conscious of its environmental protocols to ensure we keep our workers safe.
responsibilities and seeks to limit its environmental
footprint by encouraging sustainable water consumption Supply chain
and minimizing waste generation. We want to make
water efficiency an integral part of our environmental As part of our sustainable supply chain agenda and
management approach. in alignment with the Economic Development Pillar
of QNV 2030, at MEEZA we focus on procuring from
When it comes to waste, MEEZA generates minimal local suppliers to support local businesses in Qatar and
waste at the data centres, as clients and suppliers are generally contribute to the economic development of
responsible for its collection and recycling or disposal. the country.
The waste generated by the office and the data centres is
collected and recycled or disposed through authorized Our code of ethics and internal governance extends to
agents. our suppliers – setting high standards and expectations
for business integrity throughout our supply chain.
Health and safety These cover general principles around purchasing
ethics, including conflicts of interest, anti-bribery, anti-
Employee health & safety is a core element of our corruption, and fair practices.
identify and business success. At MEEZA, we are
committed to operate in responsible manner and to
provide a safe and healthy working environment and
workplace for our employees, customers, partners and
the communities in which we operate.

We demonstrate our strong engagement and

responsibility to provide safe and healthy working
conditions for the prevention of work-related injuries

MEEZA 33
02
2023 Year
in Review
 Message from the
Acting CEO
On behalf of the executive team and all of our employees,
I am pleased to present to you a summary of MEEZA’s financial
and business highlights for the year 2023.

Our most notable achievement for the year was our Services business in the Middle East and North Africa.
Initial Public Offering of MEEZA shares and listing on The Company delivered healthy growth in both its top
the Qatar Stock Market in August 2023, a landmark line and bottom line results. Net Profit reached QR
moment in the Company’s history. This move has 60.2 million, representing a 15.5% increase over the
lifted MEEZA’s profile and brand both locally and same period last year, driven mainly by 19.8% growth
internationally. in revenues. MEEZA boasts a healthy net cash position,
with a cash balance of QR 250 million. We will
As a technology company, MEEZA has the flexibility leverage our cash reserves to maximize shareholder
and expertise to cater its services to both national returns in 2024.
and tier-1 international clients currently hosted at and
served by the Company. The recurring and long-term The Company secured QR 439 million in total contract
nature of our services locks in healthy contract value value during the year across its service segments, with
at strong margins that can be leveraged to offer further QR 1.2 billion in value committed over the next decade.
value from our extensive service portfolio.
Operationally, we have maintained our stellar quality
Given that our data center demand forecasts based on of service across our service portfolio in line with the
industry studies continue to increase as we operate at leading industry standards. We have made significant
almost full capacity, we remain committed to the data strides in evolving our internal organization to meet
capacity expansion plan set out in our IPO prospectus. the requirements from our growing operations and
Qatar is an attractive data hub for global players thanks protect the interests of our shareholders through robust
to its strategic geography, cost efficient energy prices corporate governance.
and the support and vision of Qatar’s wise leadership.

MEEZA actively contributes to the country’s economic

diversification, a key pillar of the 2030 Vision, as the
leading player in the data center and managed IT
services. Our vision for MEEZA is aligned, as we strive
to become the leading Data Center and Managed

36 MEEZA
Highlighting some of our main achievements review and develop the organization to make MEEZA a
during 2023: lean and agile business that delivers consistently strong
returns for its shareholders and stakeholders.
• MEEZA expanded its collaborative network during
2023, notably a strategic partnership with Ajlan Finally, I would like to take this opportunity to thank
& Bros Technology Company (Ajlan Tech), one of our staff for their tireless efforts and dedication, and I
Saudi Arabia’s most respected services and solutions extend my thanks to our esteemed Board of Directors
companies to deliver world-class IT services to Saudi for their continued support and guidance in making
Arabia and beyond. 2023 a successful year.

• MEEZA also supported Naufar, a leading healthcare

institution in Qatar to revamp its digital infrastructure to
migrate to the secure, framework offered by the Azure
cloud platform, hosted within Microsoft’s data center
region in Qatar.

• In the academic sector, MEEZA signed MoUs with

Qatar University and Carnegie Mellon University in
Qatar to collaborate in the areas of education, scientific
research, and community development, exploring
areas to develop new technology skillsets and human
capital locally.

• MEEZA teamed up with Oracle to expand its

managed services portfolio to offer Oracle Exadata
Cloud@Customer, a high-performing managed cloud
database services platform with a subscription model
inside customer’s data centers, enabling them to meet
data residency and security requirements.

• MEEZA won the Most Innovative ICT Services Provider

in Qatar while MEEZA Academy was recognized as
the Most Innovative ICT Learning Advisory Initiative
for Graduates at the Global Business Outlook Awards
2023. Earlier in the year, MEEZA in collaboration with
Vertiv won the runner-up position for the New design /
build data center project of the Year award at the DCS
Awards 2023.

To sum up, 2023 was a busy and foundational year

for MEEZA, a new beginning for the Company as it
embarks on an ambitious plan to expand its capacity
to service its growing client base both in terms of its MR. MOHSIN NASSER AL MARRI
capital assets and its service portfolio, locally and Chief Corporate Services Officer
internationally. The leadership team will continue to and Acting Chief Executive Officer

MEEZA 37
 Operational
and Financial
Highlights
FY 2023
38 MEEZA
Key Messages for FY 2023

Strong YoY Growth Healthy Indicators

 19.8% growth in annual  QR 438.5 million in total
Revenues to QR 422.9 contract value locked in
million 2023

 15.5% growth in Net Profit  QR 1.2 billion in committed

to reach QR 60.2 million contracts over ~10 years

 Healthy Net Cash position of

QR 115.0 million

MEEZA 39
 FY2023 Financial Performance
QRm

Revenue 422.9
8.2
16.8
356.3 352.9
30.0 328.4
284.8 14.9
01.0 134.8
15.3 01.0
45.0 01.0
20.8
78.9
01.0 15.3
81.6
40.6
18.3
126.9 25.2
47.8 112.8
91.0
72.5
63.7 82.8

138.2 135.1
90.7 92.7 125.6

FY19 FY20 FY21 FY22 FY23

Data Centre Managed Work Place

Solutions Cloud MSI

Net Profit

52.1 60.2
44.0
34.8
34.0

FY19 FY20 FY21 FY22 FY23

Total Revenue grew by 19.8% on an annual basis to reach QR 422.9 million led by 71% growth in the Solutions
segment, 22% growth in Managed Services and 47% growth in Cloud services. Data Center revenues are set
to increase as the Company fills and expands its total capacity to accommodate demand. Expenses increased
by 30.8% primarily due to higher revenue, revenue mix and a favorable one-off in FY2022 which was partially
offset by cost optimization. Net Profit increased 15.5% to QR 60.2 million year over year primarily due to higher
revenue and higher finance income.

40 MEEZA
FY2023 Financial Performance
QRm

Capital Expenditure
63%
55%
208.2 15%
3%
6%
157.7
106.1

139.6 53.8

22.1 102.1
47.3 14.4
13.8
6.4
8.3 18.7 6.5 8.1

FY19 FY20 FY21 FY22 FY23

H1 H2 Capex intensity

Return of Capital Employed (ROCE)

8%

7%

6%
5% 5%

FY19 FY20 FY21 FY22 FY23

FY2023 CAPEX was QR 14.4 million with a CAPEX intensity of 3%. Higher CAPEX in FY20 to FY22 was driven
by the extension of MV-2 and the construction of MV-4 and MV-5 data centres adding 6.1 MWs to MEEZA’s
portfolio. MEEZA is set to increase its CAPEX again over the next 5 years to cater to the increasing data center
demand. Return on Capital Employed continues to climb, increasing from 5% in 2019 to 8% in 2023 driven by
increasing profits.

MEEZA 41
 FY2023 Financial Performance
QRm

Cash generated from Operations

95.9
90.1 92.4 92.0

FY19

FY20 FY21 FY22 FY23

(54.0)

Net Cash

293.0

205.7

87.3 115.0

55.0

DEC- 19 DEC- 20 DEC- 21 DEC- 22 DEC- 23

* Cash generated from operations as per statement of cash flows net off lease payments

MEEZA has maintained strong cash flow generation since FY2020. As a result, the Company had a healthy net
cash position of QR 115 million with QR 250 million cash on hand as at 31 December 2023.

42 MEEZA
FY23 Financial Performance

EBITDA Margin

43.3%

35.4% 35.1%
32.0%
29.2%

34.2% 29.1%
26.5% 29.0%
24.6% EBITDA Margin
EBITDA Margin excluding NaaS

FY19 FY20 FY21 FY22 FY23

Net Profit Margin

14.8%
13.4%
14.2%
12.2%

9.5%

FY19 FY20 FY21 FY22 FY23

MEEZA achieved an EBITDA of QR 123.5 million in 2023, at a margin of 29.2%. Excluding Network-as-a-Ser-
vice contracts, the EBITDA margin has increased by 4.5pp since FY2019 driven by improved revenue mix and
cost optimization. Net Profit margin has expanded by 4.7pp during the same period thanks to the EBITDA flow
through and improving returns from cumulative capital expenditure.

MEEZA 43
03
Corporate
Governance
 Introduction
Dear Shareholders, Authority and other relevant Laws and Regulations
set by QFMA, and considered these when drafting the
I am pleased to present MEEZA’s inaugural Corporate bylaws, policies and procedures of the Company.
Governance Report for the financial year ended on 31
December 2023. Our Corporate Governance is based on the principles of
the QFMA’s code: Justice, Equality among Stakeholders,
MEEZA places Corporate Governance at the heart of as well as transparency, timely disclosure to all
its priorities and has undertaken major steps towards stakeholders at the right time and in the manner that
meeting best market practices in line with the QFMA’s enables them to make decisions and undertake their
guidance for listing and maintaining compliance as a duties properly. MEEZA vows to uphold the values of
public company. corporate social responsibility and to prioritize public
interest while always acting in good faith and integrity.
In this report we will highlight the main corporate
governance framework in MEEZA and reporting for Leading up to the Company’s listing, the Board has
the fiscal year 2023 starting from the listing date on 23 taken steps to update MEEZA’s corporate governance
August 2023. framework to meet best practices across the business
to ensure transparency in our decision making and
The Board of Directors abides by the provisions and to earn and keep the trust of our shareholders. This
principles set out in QSTP Companies Regulations framework shall be binding upon the Company’s Board
Dated 15 August 2022 and the Corporate Governance members, Senior Executive Management, advisors, and
Code for Companies and Legal Entities listed on the employees.
main market issued by Qatar Financial Markets

46 MEEZA
As of December 31, 2023, an assessment of
Management’s compliance with QFMA’s relevant
regulations, including the Corporate Governance
Code, has been conducted. In accordance with Article
(2) of the Code, we have reviewed and assessed
the Company’s compliance to QFMA’s applicable
regulations.

During the year 2023, there were no financial penalties

or sanctions imposed on MEEZA by QFMA as a result
of the MEEZA’s non-compliance with any provisions
of QFMA’s laws and related legislation, including its
corporate governance code.

MEEZA will continue to develop and improve its

policies and procedures to achieve compliance with
the relevant rules and regulations and is in the process
of documenting its policies and procedures to ensure
sustained compliance with QFMA’s relevant laws and
regulations. SHEIKH HAMAD BIN ABDULLA
BIN JASSIM AL-THANI
Chairman

MEEZA 47
 Governance
Framework
MEEZA has approved its Corporate Governance Manual as the
central guide to its governance framework. The establishment
and activation of the Governance Manual are pivotal to the
success of our core principles, creating a culture that promotes
higher standards of corporate governance. In its steadfast
commitment to the governance requirements as a public
company, MEEZA has developed a flexible and practical
framework that is regularly reviewed and updated to align with
regulations, drawing insights from international best practices
advocated by the International Corporate Governance Network
(ICGN) and the International Chamber of Commerce (ICC).

The Corporate Governance Manual outlines the powers Key aspects include:
and responsibilities of the Board of Directors, Executive - Collaborative efforts of the Board of Directors and
Management, Internal Audit, as well as the roles of Executive Management to build a lasting and effective
the executive and board committees. Additionally, company management strategy.
it defines disclosure policies, requirements, and - CEO and Executive Management execution and
safeguards the rights of shareholders and stakeholders. development of MEEZA’s strategy under Board
supervision.
COMMITMENT TO PRINCIPLES OF GOVERNANCE: - Oversight by the Executive Management, the Board
Aligned with Article (3) of the Governance Code for of Directors, and the Audit Committee in issuing timely
Companies & Legal Entities Listed on the Main Market and transparent financial statements.
issued by the Qatar Financial Markets Authority - The Audit Committee reviews and considers offers
(QFMA), MEEZA remains committed to effective of External Auditors, and then submits to the Board a
governance principles. recommendation for appointment of the Company’s
external auditor.

48 MEEZA
- The Nomination and Remuneration Committee’s role and establishment of strict policies, ensuring progressive
in setting criteria for board and executive selection, stages in governance implementation. The continuous
overseeing remuneration policies, and managing supervision of policy updates serves to enhance the
succession plans. Company’s credibility and shareholder confidence.
- The Board of Directors’ commitment to decisions,
taking into account the interests of all stakeholders. Regarding the company’s compliance to the QFMA
Corporate Governance Code in 2023, a recent
EFFECTIVE GOVERNANCE METHODOLOGY communication was received from the QFMA
In its inaugural year of implementation, MEEZA which provided guidance for a partial compliance, a
demonstrates a commitment to a lasting and consideration prompted by the company’s listing at the
proactive approach to good governance. We are now end of August 2023. This partial compliance directive
embarking on the initial phase of governance plans is particularly relevant to the four months remaining in
and requirements. This commitment is exemplified the calendar year, encompassing the period subsequent
by the appointment of independent members and to the company’s listing. The QFMA’s communication
a representative of the company’s employees to the underscores the unique circumstances of the
Board of Directors, in accordance with the Governance Company’s late entry into the listing and emphasizes
Code issued by the Qatar Financial Markets Authority that the customary expectations for compliance,
(QFMA). such as the commitment to six BOD meetings during
2023, do not apply in full measure. This nuanced
ENFORCEMENT OF GOVERNANCE approach acknowledges the time constraints and aligns
The Board of Directors and Executive Management at expectations with the MEEZA’s specific timeline of
MEEZA firmly believe in the importance and impact of inclusion as a listed company.
good governance. This belief has led to the development

MEEZA 49
 Board of Directors
BOARD MEMBERSHIP ROLES AND RESPONSIBILITIES

The Board of Directors is the main governing body of MEEZA’s Board of Directors is responsible for setting the
MEEZA. The Board approves Management’s strategy overall strategy and key business plans, determining the
of how to meet the Company’s mission and vision capital structure and financial objectives, approving the
and oversees and monitors Management. Under the annual budget, supervising the main capital expenses,
Articles of Association, 3 members are appointed by setting and monitoring performance objectives,
Qatar Foundation while the remaining 5 members are and reviewing and approving major changes to the
elected by the General Assembly with the participation organizational structures.
of Qatar Foundation in accordance with the cumulative
voting method. The current members serve a term of The Board is also responsible for ensuring the integrity
5 years as the first Board of Directors, while future of financial and accounting rules, providing oversight
Boards will serve for a period of 3 years. over MEEZA’s Internal Control and Risk Management
As per the Company’s articles, more than one-third systems and reviewing their effectiveness, providing
of MEEZA’s Board Members are Independent Board oversight over MEEZA’s Risk Management system and
Members (3) and the majority of the Board members setting MEEZA’s risk appetite, and approving MEEZA’s
are Non-Executive Board Members (5). One of the Corporate Governance Framework.
Board Members represents the Company’s employees
and must be a current employee.

50 MEEZA
The Board may invite all Shareholders to attend the BOARD CHAIRMAN
General Assembly meeting to discuss a specified
agenda, including approving this Governance Report. The Chairman has the responsibility of leading the
Board and ensuring its effectiveness in all aspects of
The Board is responsible for approving all policies in its role. In that capacity, the Chair is responsible for
line with best governance practice and in compliance approving the meeting agenda and ensuring that the
with local market regulations. main issues are discussed in an efficient manner and
encouraging the collective participation of all members
In performing their responsibilities members of the based on information made available to them all. For a
Board are required to act in good faith and with due complete list of Chairman responsibilities, please refer
diligence and carry out their responsibilities in the to Section 4.4 of MEEZA’s Governance Manual.
interest of the Company, but not in the interests of the
group they represent. MEEZA elected Sheikh Hamad Abdulla Al Thani on 28
May 2023 as Chairman of the Board of Directors.
For a full list of Board responsibilities, please refer to
Section 4.3 of MEEZA’s Governance Manual available
on the Company’s website.

MEEZA 51
52 MEEZA
Board Members
MEEZA’s current Board of Directors was elected on 28 May 2023 for a term of 5 years.

Executive /
No. Name Position Joining Date Memberships
Non-executive

Board member
Sheikh Hamad Abdulla J A Board Member, 15 December – Qatar
1 Non-executive
Al Thani Chairman 2019 Foundation
Endowment

Chairperson
HE Dr. Hessa Sultan J M
2 Vice Chairman Non-executive 26 May 2019 Es’hailsat
Al- Jaber
Malomatia

Mr. Saad Sabah S A Second Vice

3 Non-executive 5 January 2022 -
Al Kuwari Chairman

Dr. Ahmed Khalifa

4 Board Member Non-executive 26 April 2020 -
El Magarmid

13 November
5 Mr. Ali Harib R H Al Harib Board Member Non-executive -
2013

Dr. Saif Mohammed S A

6 Board Member Non-executive 28 May 2023 -
Al Kuwari

Board Member
– Aspire Katara
Investment
Mr. Faleh Mohammed H A Epidaure
7 Board Member Non-executive 28 May 2023
Al-Nasr Tornado Tower
Co.
Siemens Energy
Qatar

Eng. Ahmad Al-Muslemani resigned as Board member on 9 October 2023 after being appointed by Emiri decree
to the position of Chief Executive Officer of the Communications Regulatory Authority. Eng. Ahmad Al-Muslemani
also served as the employee representative on the Board of Directors, the seat was vacant as of 31 December
2023. MEEZA is in the process of reviewing candidates to fill the role.

Share Ownership Disclosure None of MEEZA’s Board members owned any shares in the Company as of 31
December 2023.

MEEZA 53
 Board Meetings
The Board of Directors met five times during 2023, and twice since being listed on 23 August 2023.

Meeting Number 1* 2 3 4 5

15-05-23

28-05-23

27-07-23

26-10-23

13-12-23
Meeting Date

Sheikh Hamad Al Thani √ √ √ √ √

H.E. Dr. Hessa Al-Jaber √ √ √ √ √

Mr. Saad Sabah AI-Kuwari √ √ √ √ √

Dr. Ahmed Elmagarmid √ √ √ √ √

Mr. Faleh Al Nasr √ √

Mr. Ali Harib Al Harib √ √ √ √

Dr. Saif Mohammed Al Kuwari √ √ √ √

Mr. Ahmad Abdulla AlMuslemani** √ √

Atehar Mir* √

*Previous Board (5 members)

**Resigned on 9 October 2023 after being appointed as President of CRA by Emiri Decree

54 MEEZA
Board Remuneration
The total compensation to the Board of Directors and More details can be found in Note 19 of the financial
Executive Management for the fiscal year 2023 totaled statements at the end of the annual report.
QR 12.99 million.

Board Activities
The following is a list of the main activities of the 10. Approval of the Corporate Governance Manual
Board during the year:
11. Approval of the financial press announcements
1. Approving the FY22 Financial Statements
12. Approval of the Accounting Manual
2. Approving the interim financial statements for FY23
13. Approval of the FY24 Budget
3. Approving the 2022 Employee Bonus, Executive
compensation, and Board Remuneration The Board conducted a self-assessment Questionnaire
of Board of Directors and Board Committees for FY2023
4. Recommending the dividends for FY22 (prior to in its first meeting of 2024.
becoming public)
The Board carefully develops and is firmly committed
5. Electing the Chairman and two Vice-chairmen to the execution of its defined functions and tasks. These
measures are designed to gain full compliance with the
6. Creation of the Remuneration and Nomination guidelines outlined in Article 8 of the QFMA Corporate
Committee and the Audit and Risk Committee Governance Code. The comprehensive approach
underscores the Board’s dedication to upholding the
7. Approving the IPO prospectus to go public highest standards of corporate governance, aligning its
practices with the regulatory framework set forth by the
8. Preparing the various board and committee charters QFMA.
in compliance with market regulations

9. Approval of MEEZA’s delegation of authority,

authorized signatories and bank mandates

MEEZA 55
 Board Committees
MEEZA’s Board of Directors delegated part of its duties to two committees, the Audit and Risk Management
Committee, and the Nomination and Remuneration Committee.

Audit and Risk Management Committee

The Audit and Risk Committee is a Committee of the Board with responsibilities, carried out on behalf of the
Board, which include scrutiny over financial reporting and financial statements, overseeing the effectiveness of
MEEZA’s Internal Control and Risk Management systems, oversight over the Internal Audit function and oversight
over External Audit. For a full list of the Committee’s charter, please refer to section 7.9 of the Governance Charter.

Committee Members

The Audit and Risk Committee was established by Board on 28 May 2023 and is comprised of the following
members

No. Name Position

1 HE Dr. Hessa Sultan J M Al- Jaber Chairperson

2 Dr. Saif Mohammed S A Al Kuwari Member

3 Dr. Ahmed Khalifa El Magarmid Member

The Audit and Risk Committee held 5 meetings as follows:

Meeting Number 1* 2 3 4 5
23-05-15

23-07-27

23-10-18

23-10-25

23-12-13

Meeting Date

H.E. Dr. Hessa Al-Jaber √ √ √ √

Dr. Ahmed Elmagarmid √ √ √ √ √
Dr. Saif Mohammed Al Kuwari √ √ √ √
Sheikh Hamad Al Thani* √

*Previous Board committee

56 MEEZA
Minutes from the meetings are prepared by the During 2023, the Audit and Risk Committee conducted
Committee Secretary and duly signed by the the following:
Committee’s Chairperson and promptly distributed by
the Board Secretary to the Committee members and the 1. Reviewing Internal Audit updates and addressing
Chairman of the Board. issues raised
2. Reviewing Internal Controls and addressing potential
In light of the company’s partial compliance requirement risks
in 2023 as per instructions from QFMA, the committee 3. Overseeing progress of comprehensive Risk
did not conduct the required six meetings as outlined in Management framework
Article 19 of the QFMA Corporate Governance Code.
It is affirmed that the company is dedicated to ensuring The Committee also recommended the Board of
full compliance in the ensuing years, diligently adhering Directors to approve the interim financial results and
to the stipulated requirements. the annual FY2023 results.

MEEZA 57
 Board Committees
Remuneration and Nomination Committee

The Nomination and Remuneration Committee is a non-executive committee of the Board responsible for
assisting the Board in identifying individuals qualified to become Board members and part of the Senior Executive
Management as well as setting a fair and transparent remuneration to members of the Board and Senior Executive
Management. For a full list of the Committee’s charter, please refer to Section 7.1 of the Governance Charter.

Committee Members

The Nomination and Remuneration Committee was established by Board decision on 28 May 2023 and is
comprised of the following members:

No. Name Position

1 Mr. Saad Sabah S A Al Kuwari Chairperson

2 Mr. Ali Harib R H Al Harib Member

3 Mr. Faleh Mohammed H A Al-Nasr Member

The Nomination and Remuneration Committee held 2 meetings as follows:

Meeting Number 1* 2
14-05-23

04-12-23

Meeting Date

Mr. Saad Sabah AI-Kuwari √ √

Mr. Faleh Al Nasr √
Mr. Ali Harib Al Harib √
Sheikh Hamad Al Thani* √
Atehar Mir* √

*Previous Board committee

58 MEEZA
Minutes from the meetings are prepared by the Secretary 3. Approving FY2023 Key Performance Objectives
and duly signed by the Committee’s Chairperson and 4. Reviewing CEO and CFO compensation and
promptly distributed to the Committee members and performance bonus
the Chairman of the Board. 5. Appointing Board Secretary as Nomination and
Remuneration Committee Secretary
During 2023, the Nomination and Remuneration
Committee conducted the following: The Committee also recommended the Board of
Directors to approve the Board remuneration structure
1. Approving the achievements against FY2022 Key for 2023.
Performance Objectives
2. Approving the performance bonus mechanism for
FY2022

MEEZA 59
60 MEEZA
Management
Executive Committee
The Management Executive Committee is responsible for The Management Executive Committee is a body
assisting the Management in making specific decisions formed by representatives from executive departments.
and authorizing certain aspects of MEEZA’s activities The Committee is comprised of the Company’s Chiefs
and operations as per the approved Dtelegation of with the Chief Executive Officer as the Chairman.
Authority (The Company’s new Delegation of Authority
was approved by the Board on 26 October 2023). For The Management Executive Committee held one
a full list of the Management Executive Committee meeting on 11 September 2023.
responsibilities, please see Section 6.1 of the Corporate
Governance Manual.

Board of Directors
Performance Assessment
In accordance with the Company’s Corporate during the year, along with the Director’s exercise of
Governance Manual, the Board conducts an annual powers and responsibilities. Moreover, the relationship
evaluation of the Board of Directors and its Sub- with the Executive Management was considered.
Committees performance on the individual and
collective levels using a questionnaire specifically The Remuneration & Nomination Committee
designed for this purpose, relies on a self-assessment (”REMCO”) has reviewed the outcome of the Board’s
exercise that evaluates the performance of the Directors self-assessment and submitted a report to the Board
annually. evaluating the overall performance of the Board and its
subcommittees for the last financial year in accordance
During 2023, the assessment of the Board included with the requirements of the QFMA Corporate
the self-assessment of the members of the Board and Governance Code. The evaluation concluded that
another self-assessment conducted by the Board the procedures and dynamics of the Board and its
committees as set out in the Governance Code for subcommittees are functioning properly and there is
Listed Companies. no major area of concern in this regard.

The basic criterion for the assessment takes into account

the Board’s achievement against the expected results

MEEZA 61
 Executive
Management
The Chief Executive Officer is responsible for providing innovation within MEEZA’s service offerings. The CSO
strategic direction to MEEZA, ensuring long-term is also responsible for the Performance Management
growth and profitability, leading the executive team, and to oversee the evaluation of company performance
and working closely with the Board of Directors to against its internal KPIs and benchmarking. This role is
develop and implement business strategies that meet currently held by Mr. Faisal Al-Kuwari.
the needs of clients, employees, and shareholders, as
well as building and maintaining key relationships with The Chief Information Technology Officer is responsible
stakeholders and external partners to foster a culture for responsible for developing and implementing
of innovation and customer satisfaction. This role is Information Technology Services strategies that align
currently held by Mr. Mohsin Nasser Al Marri in an with the overall MEEZA objectives, managing the IT
acting capacity. infrastructure and systems, and ensuring the security,
reliability, and effectiveness of the technology
The Chief Corporate Services Officer is responsible for ecosystem while promoting a culture of innovation and
overseeing and managing MEEZA’s several corporate collaboration. This role is currently held by Mr. Faisal
services functions, ensuring they align with the overall Al-Kuwari in an acting capacity.
business objectives, drive operational efficiencies, and
promote a culture of innovation and collaboration. The The Chief Commercial Officer is responsible for
role is currently held by Mr. Mohsin Nasser Al Marri. developing and implementing commercial strategies,
identifying new business opportunities, and driving
The Chief Financial Officer is responsible for revenue growth through effective sales and marketing
overseeing and managing all financial matters of the initiatives, while ensuring high levels of customer
Company, ensuring financial accuracy, compliance satisfaction and retention. This role is currently held by
with regulatory requirements and promoting financial Dr. Fadi Nasser.
stability and growth while managing risk and ensuring
high levels of financial performance, delivery of Board Share Ownership Disclosure
and Shareholder Targets, driving shareholder value. As of 31 December 2023, Mr. Mohsin Nasser Al-Marri
This role is currently held by Mr. James Corby. total ownership (direct and indirect) in MEEZA totaled
4,217 shares. The remaining executive team members
The Chief Strategy Officer is responsible for for leading did not own any shares on that date.
and overseeing the company-wide strategy, working
closely with the C-suite on broad-reaching strategic
initiatives and to seek out areas for optimization and

62 MEEZA
Board Secretary
The Board Secretary is responsible for carrying out the Ms. Ruba Salman Abu Youssef was appointed Secretary
corporate administration work required for the smooth of the Board of Directors by the Board of Directors in
running of the Board and the Company itself. For a full its meeting held on 28 May 2023.
list of the Board Secretary’s responsibilities, please refer
to Section 5.1 of MEEZA’s Governance Manual.

Pending Litigation
The Company did not have any material lawsuits or For more information please refer to the notes in the
associated legal matters as of 31 December 2023. financial statements as at 31 December 2023.

Internal Audit
Objectives and
Activities
In the context of MEEZA’s governance, the Internal During 2023 internal audits were conducted and
Audit department exists to provide independent and covered key areas in MEEZA. Audit findings and
reasonable assurance to the Board - either directly or recommendations are adequately discussed and
via the Audit and Risk Committee - and to Management addressed by Management and the results are reported
on the effectiveness of MEEZA’s Risk Management, to the Audit and Risk Committee.
Internal Controls and Governance Processes.
In the period, Internal Audit conducted periodic
MEEZA has an Internal Audit Function supported by the Internal Audit updates, and raised audit findings and
Board and reporting to the Audit and Risk Committee. related risks to the Audit and Risk Committee.
The Internal Audit Function does not assume
Management responsibility and does not perform any
of the day-to-day operations of MEEZA. The Internal
Audit purpose, authority and responsibility are outlined
by the approved Internal Audit Charter.

MEEZA 63
 Risk Management
and Internal Control
Risk Management Internal Control

The Board recognizes the importance of appropriate MEEZA’s internal Controls framework describes
Risk Management practices that can be used to the internal control mechanism and criteria for
preserve and protect value of all MEEZA’s Stakeholders. responsibility and accountability across all MEEZA’s
The Board also acknowledges its responsibility for departments.
risk oversight. The Board recognizes that although
everyone in MEEZA is responsible for managing risk, The Internal Controls framework includes MEEZA’s
accountability for the management of risks lies with plan in Risk Management to identify major risks that
MEEZA’s Management. may impact MEEZA, especially those related to new
technology, and implementing the mechanisms to
MEEZA has implemented an integrated enterprise-wide raise awareness and mitigate those risks. Under the
Risk Management Framework system to ensure that framework, MEEZA established an effective and
risks are appropriately understood and dealt with. independent unit to assess and manage risks and
internal controls over financial reporting.
Quarterly Risk Reports are submitted to the Audit
and Risk Committee on Risk Management matters MEEZA has in place a system of internal controls
covering the progress and achievements in relation designed to provide assurance of compliance with
to the approved Risk Management framework, risks applicable laws and regulations and the different ISO
and mitigation actions, and any tolerance breaches or and other standards for which MEEZA is certified and
changes to the current risk profile and its treatment. to provide assurance over the achievement of the
Company objectives.
In 2023, MEEZA updated its Risk Management
procedure and the Risk Register to reflect changes and The effectiveness of MEEZA’s internal controls is
the requirements of the Enterprise Risk Management. assessed on an ongoing basis through internal and
external audits.

64 MEEZA
Compliance
MEEZA’s Board of Directors undertakes the responsibility In 2023, MEEZA has conducted regular review and
to create awareness and take the necessary actions updates to the policies and procedures for better
to comply with relevant laws and regulations. Since alignment with the best practices and the international
listing, MEEZA is building a Compliance framework standards and to maintain the Company’s different
that covers compliance policies, procedures, and certifications and to ensure compliance with the
controls, and mechanism to monitor compliance with applicable laws and regulations.
applicable laws and regulations. The adequacy and
effectiveness of measures implemented for identified In addition, MEEZA conducted a preliminary review
deficiencies will be reported to the Board of Directors of compliance with the applicable market listing and
through a monitoring program overseen by the Audit disclosure rules and requirements and will conduct a
and Risk Committee. thorough analysis periodically to ensure compliance
and disclose its annual assessment.

External Audit
MEEZA established an external audit policy to direct - MEEZA’s compliance with its Articles of Associations
the appointment, responsibilities, and reporting of the and its compliance with relevant laws and regulations.
External Auditor.
- MEEZA’s compliance with the implementation of the
The Audit and Risk Committee review the offers best international standards and the preparation of
from External Auditors and submit to the Board a financial reports.
recommendation on the appointment of MEEZA’s
External Auditor, which is subsequently included in the - MEEZA’s compliance with international audit and
General Assembly agenda. accounting standards (IFRS / IAS) and (ISA) and their
requirements.
The External Auditor informs the Board about any
risk to which MEEZA is exposed or expected to be - MEEZA’s cooperation with the External Auditor in
exposed, and about all the violations immediately providing access to the necessary Information to
upon identification. The External Auditor shall submit a complete its duties.
report to the General Assembly. The External Auditor’s
report must include at least the following:

- Appropriateness and effectiveness of the Internal

Control system.

- MEEZA’s ability in implementing its obligations that

is evaluated independently of what is shown by the
Board.

MEEZA 65
 Main Policies
MEEZA has officially adopted the following policies as part
of its Governance Manual approved on 6 June 2023:

Disclosure Policy wrongdoing within the company are raised and

The Disclosure Policy of MEEZA has been established provides a mechanism to communicate these concerns
to ensure that all necessary information related to to Management in order for them to be investigated and
business activities is passed on to the Stakeholders addressed. (Section 8.3 of Governance Manual)
in an appropriate, timely and consistent manner
through an appropriate channel. It is imperative that Dividends Policy
communications from MEEZA are always consistent, The Dividends Policy of MEEZA has been established
and that selective disclosure is avoided. For more to ensure fair and transparent distribution of dividends
details, see Section 8.1 of the Governance Manual. to Shareholders. (Section 8.4 of Governance Manual).

The Company publishes all material information The Board recommended issuing dividends of QR 0.08
through the Qatar Stock Exchange’s platform on a in its Board meeting on 7 February 2024.
timely and consistent basis.
Investor Relations Policy
Related Party Transactions Policy Investor Relations Policy of MEEZA has been
The Related Parties Transactions Policy of MEEZA has established to inform and guide on the responsibilities
been established to ensure that all transactions that and expected conduct with respect to the relationship
involve potential Related Parties are determined on a with its investors. (Section 8.4 of Governance Manual)
fair, reasonable and consistent basis. (Section 8.2 of
Governance Manual) In the leadup to its listing, the Company established a
dedicated Investor Relations department and Investors
MEEZA has disclosed its Related Party transactions section on its website and has established a direct
within this report and as part of its audited financial communication with investors and shareholders.
statements for approval by shareholders at the Annual
General Assembly.
Insider Trading Policy
The Insider Trading Policy of MEEZA has been
Whistle Blowing Policy established to prohibit the unauthorized disclosure of
The Whistleblowing Policy of MEEZA has been any non-public information acquired in the workplace
established to ensure that concerns regarding suspected and the misuse of material non-public information in

66 MEEZA
trading in its securities. (Section 8.6 of Governance enhancement of the following policies to maintain
Manual). a comprehensive and proportional approach. This
initiative is aimed at ensuring complete compliance with
MEEZA prohibits all Company insiders from trading regulatory standards while simultaneously acquiring
with non-public information and maintains a periodic all essential approvals throughout the course of the
communication to set trading restriction periods. year 2024. This strategic effort reflects the company’s
commitment to adapt and evolve in accordance with
Corporate Communication Policy evolving regulatory requirements, fostering a robust
The Corporate Communication Policy of MEEZA has framework for operations in the coming year:
been established to guide the Company’s internal and
external communication to support the achievement of - Nomination and Remuneration Policy
the Company’s goals and objectives. (Section 8.7 of the - Conflict of Interest Policy
Governance Manual).
- Stakeholder Policy
- Shareholders and Minority Shareholders Policies
Data Confidentiality Policy
The Data Confidentiality Policy (the “Policy”) of MEEZA - Dealing and contracting Related Parties Policy
has been established to define the principles required - Policy of guidance on dealing with third party financial
to maintain confidentiality of MEEZA’s data including service providers
the obligations and responsibilities of employees, - Succession Planning Policy
contractors and third parties to protect and maintain
confidential information. (Section 8.10 of Governance
Manual).

Anti-Fraud Policy
The Anti-Fraud Policy of MEEZA has been established
to set out MEEZA’s stance on fraud and its approach
in preventing, detecting, reporting, and investigating
fraud. (Section 8.11 of Governance Manual).
The company is actively engaged in the revision and

MEEZA 67
 Shareholder Records
The table below details the shareholding structure of the Company as of 31 December 2023.

Shareholder Ownership

Qatar Foundation 40%

Ooredoo 10%

International Trade and Development Company 5%

General Retirement and Social Insurance Authority 5%

Qatar Investment Authority 5%

Other shareholders (public free float) 35%

At the end of the year there were 19,209 shareholders broken down as follows:

Institutional Individual Total

Qatari 66.8% 20.3% 87.1%

GCC 7.8% 0.0% 7.8%

Foreign 5.0% 0.1% 5.1%

Total 79.6% 20.4% 100%

68 MEEZA
Annual General
Meeting

A General Assembly meeting shall be convened by Shareholders have the right to request the inclusion of
an invitation from the Board of Directors. The Board certain issues in the General Assembly’s agenda and the
of Directors shall prepare the agenda for the meeting. right to attend the meetings of the General Assembly
Shareholders who own at least 10% of the Company’s and to effectively participate in them (or appoint a
capital may also request an invitation to convene the proxy) as well as discuss matters listed in the agenda,
General Assembly. and to vote on General Assembly decisions.

The General Assembly shall be held in the most Extraordinary General Assembly meetings shall be
appropriate place and time and new and modern convened by an invitation from the Board of Directors
technologies shall be used in communicating with if required, or by shareholders who represent at least
Shareholders in order to facilitate the effective 25% of the Company’s capital, to discuss specific items
participation of the greatest number of them in the outlined in Section 9.6 of the Company’s Governance
General Assembly. Manual.

MEEZA 69
 Conflict of Interest
A Conflict of Interest arises whenever business or MEEZA employees have a responsibility to MEEZA,
personal circumstances impair professional judgment its Shareholders, and to each other. Although this
or the ability to act in the interests of MEEZA or its duty does not prevent an employee from engaging in
Stakeholders. Board members and employees must personal transactions and investments, it does demand
take appropriate measures to recognize and manage that employee avoid situations where a Conflict of
situations where a Conflict of Interest may arise. Interest might occur or appear to occur.

The Company did not document any cases of Conflict

of Interest in FY2023.

Related Parties
Related-party transactions, whether large deals or report and audited financial statements presented
otherwise, are disclosed in the detailed statement to the shareholders for approval. For details of these
prepared pursuant to the provisions of Article 4.11 of transactions, please review the audited financial
QFMA’s Governance Code for Companies and Legal statements as of 31 December 2023, provided at the
Entities Listed on the Main Market, as well as the annual end of the annual report.

70 MEEZA
MEEZA 71
 Disclosure
Requirements
In line with Article 4 of the QFMA Corporate Governance Code,
MEEZA follows the following procedures:

• The Company ensures that any disclosed information Listing of Securities Rulebook related to the Company’s
is consistently accurate, clear and reliable. lawsuits disclosure, please refer to the notes in the
financial statements as at 31 December 2023 (none
• In this context, the Company has established work during the year).
teams, which are mandated to ensure the Company’s
compliance with corporate governance rules. The Corporate Governance Report forms an integral
part of the company’s annual report.
• The Legal Department assists the Board, the Executive
Management and the relevant Company’s departments The Company publishes a circular to all informed
to understand their respective roles and responsibilities persons and members of the Board in order to inform
relating to disclosure requirements. them of the entry into the Insider Trading Prohibition
Period and warns them against trading in the company’s
In line with the applicable governance rules and shares. No trading transactions were recorded during
regulations, MEEZA is committed to disclosing (when the share trading prohibition periods in accordance
applicable) any violation which has occurred during with the provisions of the internal regulations of the
the fiscal year, while also implementing remedial Qatar Stock Exchange, and QFMA’s Offering & Listing
measures to avoid the reoccurrence of similar events. of Securities on the Financial Markets Rulebook.

With reference to Article 52 of the QFMA Offering &

Subsidiaries
MEEZA has 100% ownership in one subsidiary, their maintenance, software development, creation of
MEEZA Information Technology WLL, incorporated data information infrastructure, providing expertise,
on 14 July 2015 with Commercial Registration No. solutions and consultancy in relation with information
73974. Its principal activities are trading in computer systems, services related to the protection of devices
equipment and devices, trading in computers and and information systems.

72 MEEZA
Corporate Social
Responsibility
The Corporate Social Responsibility Policy of MEEZA impact of its activities on the surrounding community,
has been established to ensure the effective and the environment in general, and the national economy.
meaningful participation towards the community
development and promotion, and the environment MEEZA Academy is one such CSR initiative undertaken
preservation. (Section 8.8 of Governance Manual). by the Company that aims to prepare a new generation
of local experts capable of supporting the growing
Through CSR, MEEZA aims to exercise its role as a demands in the Qatari IT sector. For more information,
good corporate citizen, and to reduce any negative refer to the MEEZA Academy section on the website.

MEEZA 73
 External Auditors’
Report on Corporate
Governance
Independent Assurance Report to the Shareholders of
MEEZA QSTP- LLC (Public) (the ‘Company’ or ‘Meeza’) and
its subsidiaries (together referred to as the ‘Group’) on the
Board of Directors’ Statements on Compliance with Qatar
Financial Markets Authority relevant Regulations including the
Governance Code (“Code”) for Companies & Legal Entities
Listed on the Main Market as at 31 December 2023

In accordance with Article 24 of the Governance Code including the provisions of the Code in line with the
for Companies & Legal Entities Listed on the Main requirements of Article 4 included in these regulations.
Market Issued by the Qatar Financial Markets Authority
(“QFMA”) Board pursuant to Decision No. (5) of 2016, Responsibility for the compliance with the Code,
we have carried out a limited assurance engagement including adequate disclosures and the preparation
over the Board of Directors’ Statements on Compliance of the corporate governance report and that of the
(the “Directors’ Statements on Compliance”) of the Directors’ Statement on Compliance, is that of the
Group with QFMA relevant regulations including the Group Board of Directors, and where appropriate,
Governance Code for Companies & Legal Entities those charged with governance. This responsibility
Listed on the Main Market (the “Code”) included in includes designing, implementing and maintaining
section 1 of the Annual Corporate Governance Report internal controls relevant to the Directors’ Statement on
as at 31 December 2023 in accordance with the terms Compliance that are free from misstatement, whether
of our engagement letter dated 6 September 2023. due to fraud or error.

Responsibilities of the Board of Directors The Board of Directors, and where appropriate, those
charged with governance, are solely responsible for
The Board of Directors are required to provide a the providing accurate and complete information
corporate governance report as part of the Group’s requested by us. Deloitte & Touche - Qatar Branch has
annual report including the Group’s disclosure on no responsibility for the accuracy or completenes s of
its compliance with the relevant QFMA regulations the information provided by or on behalf of the Group.

74 MEEZA
The responsibilities of the Board of Directors includes, taken as a whole, does not present fairly, in all material
inter alia, the following: respects, the Group’s compliance with the applicable
QFMA regulations including the Code. The applicable
(a) acceptance of responsibility for internal control QFMA regulations including the Code comprises
procedures; the criteria by which the Group’s compliance is to
be evaluated for purposes of our limited assurance
(b) evaluation of the effectiveness of the Group’s control conclusion.
procedures using suitable criteria and supporting their
evaluation with sufficient documentary evidence; and The procedures performed in a limited assurance
engagement vary in nature and timing from, and are less
(c) providing a written report of the effectiveness of the in extent than for, a reasonable assurance engagement.
Group’s internal controls for the relevant periods. Consequently, the level of assurance obtained in a
limited assurance engagement is substantially lower
The Board of Directors has provided its Report on than the assurance that would have been obtained had
compliance with QFMA’s relevant regulations including a reasonable assurance engagement been performed.
the Code (“Directors’ Statement on Compliance”) in
section 1 of the Annual Corporate Governance Report. Our limited assurance procedures comprise mainly
of inquiries of management and inspection of
Independent Assurance Report to the Shareholders of supporting policies, procedures, and other documents
MEEZA QSTP- LLC (Public) (the ‘Company’ or ‘Meeza’) to obtain an understanding of the processes followed
and its subsidiaries (together referred to as the ‘Group’) to identify the requirements of the applicable QFMA
on the Board of Directors’ Statements on Compliance regulations including the Code (the ‘requirements’),
with Qatar Financial Markets Authority relevant the procedures adopted by management to comply
Regulations including the Governance Code (“Code”) with these requirements and the methodology
for Companies & Legal Entities Listed on the Main adopted by management to assess compliance with
Market as at 31 December 2023 (continued) these requirements. We also inspected supporting
documentation compiled by management, on a sample
Our Responsibilities basis to assess compliance with the requirements,
which we considered necessary in order to provide
Our responsibility is to express a limited assurance us with sufficient appropriate evidence to express our
conclusion on whether anything has come to our conclusion.
attention that causes us to believe that the Directors’
Statements on Compliance does not present fairly, in Inherent limitations
all material respects, the Group’s compliance with the
QFMA relevant regulations including the Code. Non-financial performance information is subject to
We conducted our limited assurance engagement in more inherent limitations than financial information,
accordance with International Standard on Assurance given the characteristics of the subject matter and the
Engagements 3000 (Revised) ‘Assurance Engagements methods used for determining such information.
Other Than Audits or Reviews of Historical Financial Due to the inherent limitations of a system of internal
Information’ issued by the International Auditing and control, errors or fraud may not be prevented or
Assurance Standards Board (‘IAASB’). deterred, and a properly designed and performed
assurance engagement may not detect all irregularities.
This standard requires that we plan and perform our
procedures to obtain limited assurance about whether Control procedures designed to address specified
anything has come to our attention that causes us to control objectives are subject to inherent limitations
believe that the Directors’ Statements on Compliance, and, accordingly, errors or irregularities may occur

MEEZA 75
 and not be detected. Such control procedures cannot Use of Our Report
guarantee protection against (among other things)
fraudulent collusion especially on the part of those This limited assurance report is made solely to the
holding positions of authority or trust. Furthermore, Group in accordance with the terms of the engagement
our conclusion is based on historical information and letter between us. Our work has been undertaken so
the projection of any information or conclusions in our that we might state to the Group those matters we are
report to any further periods would be inappropriate. required to state to them in an independent limited
assurance report and for no other purpose. Without
Independent Assurance Report to the Shareholders of assuming or accepting any responsibility or liability in
MEEZA QSTP- LLC (Public) (the ‘Company’ or ‘Meeza’) respect of this report to any party other than the Group,
and its subsidiaries (together referred to as the ‘Group’) we acknowledge that in connection with the Group’s
on the Board of Directors’ Statements on Compliance compliance with the Code, the Group is required to
with Qatar Financial Markets Authority relevant publish this report, which will not affect or extend our
Regulations including the Governance Code (“Code”) responsibilities for any purpose or on any basis. To the
for Companies & Legal Entities Listed on the Main fullest extent permitted by law, we do not accept or
Market as at 31 December 2023 (continued) assume responsibility to anyone other than the Group
and QFMA for our limited assurance work, for this
Our Independence and Quality Control limited assurance report or for the conclusion we have
formed.
In carrying out our work, we have complied with the
independence and other ethical requirements of the Emphases of Matter
Code of Ethics for Professional Accountants issued by the
International Ethics Standards Board for Accountants, We draw attention to appendix A to this report, which
which are founded on fundamental principles of describes requirements that the Group is in the process
integrity, objectivity, professional competence and of addressing. Our conclusion is not modified in respect
due care, confidentiality and professional behaviour. of this matter.
We have fulfilled our other ethical responsibilities in
accordance with these requirements and the IESBA
Code. Doha – Qatar
29 February 2024
Our firm applies International Standard on Quality
Management # 1 and accordingly maintains a For Deloitte & Touche
comprehensive system of quality control including Qatar Branch
documented policies and procedures regarding
compliance with ethical requirements, professional
standards and applicable legal and regulatory Walid Slim
requirements. Partner
License No. 319
Conclusions QFMA Auditor License No. 12015

Based on our limited assurance procedures performed

and evidence obtained, nothing has come to our
attention that causes us to believe that the Directors’
Statements of Compliance is not compliant with the
applicable QFMA regulations as at 31 December 2023.

76 MEEZA
 Appendix A –
Requirements under QFMA regulations, including the code, that the Company is still in the
process of addressing

Section
to which
the matter
included in
Article
Sr. the Company's In terms of actual application
No.
Annual
Corporate
Governance
Report:

MEEZA will continue to develop and improve its policies and procedures
3.1 to achieve compliance with the relevant rules and regulations, and is
1 Article (2)
Introduction in the process of documenting its policies and procedures to ensure
sustained compliance with QFMA’s relevant laws and regulations.

In 2023, MEEZA has conducted regular review and updates to the

policies and procedures for better alignment with the best practices and
the international standards and to maintain our different certifications
3.15 and to ensure compliance with the applicable laws and regulations. In
2 Article (4)
Compliance addition, we conducted a preliminary review of compliance with the
applicable market listing and disclosure rules and requirements and
will conduct a thorough analysis periodically to ensure compliance and
disclose its annual assessment.

The company is actively engaged in the revision and enhancement of

its policies to maintain a comprehensive and proportional approach.
This initiative is aimed at ensuring complete compliance with regulatory
Article
3.17 standards while simultaneously acquiring all essential approvals and
3 (2), (3) &
Main Policies accreditations throughout the course of the year 2024. This strategic effort
(4)
reflects the company’s commitment to adapt and evolve in accordance
with evolving regulatory requirements, fostering a robust framework for
operations in the coming year.

The Board is meticulously strategizing and is firmly committed to the

execution of specific functions and tasks. These measures are carefully
3.7 designed to secure full compliance with the guidelines outlined in
4 Board Article (8) Article 8 of the QFMA Corporate Governance Code. The comprehensive
Activities approach underscores the Board’s dedication to upholding the highest
standards of corporate governance, aligning its practices with the
regulatory framework set forth by the QFMA.

In light of the company’s partial compliance requirement in 2023 as per

3.8.1 instructions from QFMA, the committee refrained from conducting the
Article required six meetings as outlined in Article 19 of the QFMA Corporate
5 Audit and (19) Governance Code. It is affirmed that the company is dedicated to
Risk ensuring full compliance in the ensuing years, diligently adhering to the
stipulated requirements.

MEEZA 77
 External Auditors’
Report On Internal
Controls Over
Financial Reporting
(ICOFR)
The Shareholders of In accordance with Article 24 of the Governance Code
for Companies & Legal Entities Listed on the Main
MEEZA QSTP LLC (Public) Market Issued by the Qatar Financial Markets Authority
(“QFMA”) Board pursuant to Decision No. (5) of 2016,
Doha, Qatar we have carried out a reasonable assurance engagement
over The Board of Directors’ Report on the evaluation
of Design, Implementation and Operating Effectiveness
of Internal Control over Financial Reporting (the
Independent Assurance ‘Directors’ ICFR Report’) as of 31 December 2023.

Report, to the Shareholders of Responsibilities of the directors and those

MEEZA QSTP LLC (Public) (the charged with governance

“Company”) and its Subsidiaries The Board of Directors of MEEZA QSTP LLC (Public)
(the “Company”) and its subsidiaries (together the
(together, the “Group”), on the “Group”) is responsible for design, implementing and
maintaining effective internal control over financial
Board of Directors’ Report on reporting. This responsibility includes the following:
the Design, Implementation designing, implementing and maintaining internal
controls relevant to the preparation and fair presentation
and Operating Effectiveness of of the financial statements that are free from material
misstatement, whether due to fraud or error; selecting
Internal Control over Financial and applying appropriate accounting policies; and
making accounting estimates and judgements that are
Reporting. reasonable in the circumstances.
The Group has assessed the design, implementation and
operating effectiveness of its internal control system as
at 31 December 2023, based on the criteria established
in the Internal Control — Integrated Framework 2013

78 MEEZA
issued by the Committee of Sponsoring Organizations An assurance engagement to issue a reasonable
of the Treadway Commission (the “COSO Framework”). assurance opinion on the Directors’ ICFR Report
involves performing procedures to obtain evidence
The Group’s assessment of its internal control system is about the fairness of the presentation of the Report. Our
presented by the Board of Directors in the form of the procedures on the Directors’ ICFR Report included:
Directors’ ICFR Report, which includes:
- Obtaining an understanding of the Group’s components
- A description of the scope covering material business of internal control as defined by the COSO Framework
processes and entities in the assessment of Internal and comparing this to the assessment performed by the
Control over Financial Reporting; management;

- Identification of the risks that threaten the achievement - Obtaining an understanding of the Group’s scoping
of the control objectives; of significant processes and material entities, and
comparing this to the assessment performed by the
- An assessment of the design, implementation and management;
operating effectiveness of Internal Control over
Financial Reporting; and - Performing a risk assessment for all material Account
Balances, Classes of Transactions and Disclosures
- A statement on of the severity of design, implementation within the Group for significant processes and material
and operating effectiveness of control deficiencies, if entities and comparing this to the assessment performed
any noted, and not remediated at 31 December 2023. by the management;

Independent Assurance Report, to the Shareholders - Obtaining Management’s testing of the design,
of MEEZA QSTP LLC (Public) (the “Company”) and implementation and operating effectiveness of internal
its Subsidiaries (together, the “Group”) on the Board control over financial reporting, and evaluating
of Director’s Report on the Design, Implementation the sufficiency of the test procedures performed by
and Operating Effectiveness of Internal Control over management and the accuracy of management’s
Financial Reporting (Continued) conclusions reached for each internal control tested;

Our Responsibilities - Independently testing the design, implementation

and operating effectiveness of internal controls that
Our responsibility is to express a reasonable assurance address significant risks of material misstatement and
opinion on the fairness of the presentation of the reperforming a proportion of management’s testing for
“Directors’ ICFR Report” presented in Sections (2) normal risks of material misstatement.
of the Annual Corporate Governance Report, based
on the criteria established in the COSO Framework, - Assessing of the severity of deficiencies in internal
including its conclusion on the effectiveness of design, control which are not remediated at 31 December
implementation and operating effectiveness of Internal 2023 and comparing this to the assessment performed
Control over Financial Reporting as at 31 December by the management, as applicable.
2023.
As part of this engagement, we have obtained sufficient
We conducted our engagement in accordance with appropriate audit evidence regarding the design,
International Standard on Assurance Engagements 3000 implementation and operating effectiveness of internal
(Revised) ‘Assurance Engagements Other Than Audits controls of material entities or business activities within
or Reviews of Historical Financial Information’ issued the Group to express a conclusion on the Group’s ICFR.
by the International Auditing and Assurance Standards We remain solely responsible for our evaluation and
Board (‘IAASB’). This standard requires that we plan conclusion.
and perform our procedures to obtain reasonable
assurance about whether the Directors’ ICFR Report Independent Assurance Report, to the Shareholders
is fairly presented. The COSO Framework comprises of MEEZA QSTP LLC (Public) (the “Company”) and
the criteria by which the Group’s Internal Control over its Subsidiaries (together, the “Group”), on the Board
Financial Reporting is to be evaluated for purposes of of Director’s Report on the Design, Implementation
our reasonable assurance opinion. and Operating Effectiveness of Internal Control over
Financial Reporting (Continued)

MEEZA 79
 Our Responsibilities (Continued) Inherent limitations

A process is considered significant if a misstatement Because of the inherent limitations of Internal Control
due to fraud or error in the stream of transactions or over Financial Reporting, including the possibility
financial statement amount would reasonably be of collusion or improper management override of
expected to affect the decisions of the users of financial controls, material misstatements due to error or fraud
statements. For the purpose of this engagement, the may occur and not be detected. Therefore, Internal
processes that were determined as significant are: Control over Financial Reporting may not prevent or
Revenue, Procurement, Treasury, Human Resources detect all errors or omissions in processing or reporting
and Payroll, Property, Plant and Equipment, and transactions and consequently cannot provide absolute
General Ledger and Financial Reporting. assurance that the control objectives will be met.

The procedures to test the design, implementation and In addition, projections of any evaluation of the Internal
operating effectiveness of internal control depend on Control over Financial Reporting to future periods are
our judgement including the assessment of the risks subject to the risk that the internal control over financial
of material misstatement identified and involve a reporting may become inadequate because of changes
combination of inquiry, observation, reperformance in conditions, or that the degree of compliance with the
and inspection of evidence. policies or procedures may deteriorate.

We believe that the evidence we have obtained is Independent Assurance Report, to the Shareholders
sufficient and appropriate to provide a basis for our of MEEZA QSTP LLC (Public) (the “Company”) and
conclusion on the fairness of the presentation of the its Subsidiaries (together, the “Group”), on the Board
Directors’ ICFR Report. of Director’s Report on the Design, Implementation
and Operating Effectiveness of Internal Control over
Meaning of Internal Control over Financial Reporting Financial Reporting (Continued)
An entity’s internal control over financial reporting is
a process designed to provide reasonable assurance Our Independence and Quality Control
regarding the reliability of financial reporting and the
preparation of financial statements for external purposes In carrying out our work, we have complied with the
in accordance with International Financial Reporting independence and other ethical requirements of the
Standards (IFRS Accounting Standards). An entity’s Code of Ethics for Professional Accountants issued by the
internal control over financial reporting includes those International Ethics Standards Board for Accountants,
policies and procedures that: which is founded on fundamental principles of integrity,
objectivity, professional competence and due care,
1) pertain to the maintenance of records that, in confidentiality and professional behaviour and the
reasonable detail, accurately and fairly reflect the ethical requirements that are relevant in Qatar. We have
transactions and dispositions of the assets of the entity; fulfilled our other ethical responsibilities in accordance
with these requirements and the IESBA Code.
2) provide reasonable assurance that transactions are
recorded as necessary to permit preparation of the The firm applies International Standard on Quality
consolidated financial statements in accordance with Management 1, Quality Management for Firms that
the generally accepted accounting principles, and Perform Audits or Reviews of Financial Statements,
that receipts and expenditures of the entity are being or Other Assurance or Related Services Engagements.
made only in accordance with authorizations of the Accordingly, we maintained a comprehensive system
management of the entity; and of quality control including documented policies
and procedures regarding compliance with ethical
3) provide reasonable assurance regarding prevention requirements, professional standards and applicable
or timely detection of unauthorized acquisition, use, legal and regulatory requirements.
or disposition of the entity’s assets that could have a
material effect on the consolidated financial statements, Qualified opinion on Internal Control over
which would reasonably be expected to impact
the decisions of the users of consolidated financial Financial Reporting
statements.

80 MEEZA
In our opinion, except for the possible effects of the
material weakness described below, the Directors’
ICFR Report in Section (2) of the Annual Corporate
Governance Report, is fairly stated, in all material
respects, based on the criteria established in the COSO
Framework, including its conclusion on the effectiveness
of design, implementation and operating effectiveness
of Internal Control over Financial Reporting as of 31
December 2023.

Independent Assurance Report, to the Shareholders

of MEEZA QSTP LLC (Public) (the “Company”) and
its Subsidiaries (together, the “Group”), on the Board
of Directors’ Report on the Design, Implementation
and Operating Effectiveness of Internal Control over
Financial Reporting.

Material weakness

A material weakness is a deficiency, or a combination

of deficiencies, in internal control over financial
reporting, such that there is a reasonable possibility
that a material misstatement of the Group’s annual
consolidated financial statements will not be prevented
or detected on a timely basis.

The following material weakness has been identified

and included in the Directors’ ICFR Report:
A lack of documentation retained to demonstrate the
operation of certain controls, resulting in a deficiency in
aggregate against principle 10 of the COSO Framework
(The organization selects and develops control
activities that contribute to the mitigation of risks to the
achievement of objectives to acceptable levels).

The material weakness identified in this report was

considered in determining the nature, timing, and extent
of audit tests applied in our audit of the consolidated
financial statements of the Company as of and for the
year ended 31 December 2023, and does not affect our
report on such consolidated financial statements.

MEEZA 81
 Director’s Assessment
of Internal Controls on
Financial Reporting
(ICOFR)
General Internal Control Integrated Framework (2013) issued
The Board of Directors of MEEZA QSTP-LLC (Public) in by the Committee of Sponsoring Organizations of the
Doha (“the Company”) and its consolidated subsidiary Treadway Commission (COSO).
(together “the Group”) is responsible for establishing
and maintaining ade¬quate internal control over COSO recommends the establishment of specific
financial reporting (“ICOFR”) as required by Qatar objectives to facilitate the design and evaluate the
Financial Markets Authority (“QFMA”). adequacy of a control system.

Our internal control over financial reporting is a process As a result, in establishing ICOFR, management has
de¬signed to provide reasonable assurance regarding adopted the following financial statement objec¬tives:
the reliability of financial reporting and the preparation Existence / Occurrence - assets and liabilities exist and
of the Group’s consolidated financial statements transactions have occurred;
for external reporting purposes in accordance with
International Financial Reporting Standards (IFRS). Completeness - all transactions are recorded, account
ICOFR also includes our disclosure controls and balances are included in the consolidated financial
procedures designed to prevent material misstatements. statements;
Valuation / Measurement - assets, liabilities and
Risks in Financial Reporting transactions are recorded in the financial reports at the
The main risks in financial reporting are that either the appropriate amounts;
consolidated financial statements are not presented Rights and Obligations and ownership - rights and
fairly due to inad¬vertent or intentional errors or the obligations are appropriately recorded as assets and
publication of consolidated financial statements is liabilities; and
not done on a timely basis. A lack of fair presentation Presentation and disclosures - classification, disclosure
arises when one or more financial statement accounts and presentation of financial reporting is appropriate.
or disclosures contain misstatements (or omissions) that
are material. Misstatements are deemed material if they However, any internal control system, including
could, individually or collectively, influence economic ICOFR, no matter how well designed and operated,
decisions that users make based on the consolidated can provide only reasonable, but not absolute
financial statements. assurance that the objectives of that control system
are met. As such, disclosure controls and procedures
To confine those risks of financial reporting, the Group or systems for ICOFR may not prevent all errors and
has established ICOFR with the aim of provid¬ing fraud. Furthermore, the design of a control system must
reasonable but not absolute assurance against material reflect the fact that there are resource constraints, and
misstatements. We have also assessed the design, the benefits of controls must be considered relative to
implementation and operating effectiveness of the their costs.
Group’s ICOFR based on the criteria established in

82 MEEZA
Organization of the Internal Control System competence of personnel and the level of judgment
required;
Functions Involved in the System of Internal Control
over Financial Reporting These factors, in aggregate, determine the nature, timing
Controls within the system of ICOFR are performed by and extent of evidence that management requires in
all business and support functions with an in¬volvement order to assess whether the design, implementation
in reviewing the reliability of the books and records and operating effectiveness of the system of ICOFR
that underlie the consolidated financial statements. As is effective. The evidence itself is generated from
a result, the operation of ICOFR involves staff based in pro¬cedures integrated within the daily responsibilities
various functions across the organization. of staff or from procedures implemented specifically
for purposes of the ICOFR evaluation. Information from
Controls to Minimize the Risk of Material Financial other sources also form an important component of
Reporting Misstatement the evaluation since such evidence may either bring
The system of ICOFR consists of a large number of additional control issues to the attention of management
internal controls and procedures aimed at minimizing or may corroborate findings; and The evaluation has
the risk of material misstatement of the consolidated included an assessment of the design, implementation,
financial statements. Such controls are integrated into and operating effectiveness of controls within various
the operating process and include those which: processes including Revenue, Procurement, Treasury,
are ongoing or permanent in nature such as supervision Human Resources and Payroll, Property, Plant and
within written policies and procedures or segregation Equipment, and General Ledger and Financial Reporting.
of duties; operate on a periodic basis such as those The evaluation also included an assessment of the
which are performed as part of the annual consolidated design, implementation, and operating effectiveness of
financial statement preparation process; Entity Level Controls, Information Technology General
are preventative or detective in nature; have a direct or Controls, and Disclosure Controls.
indirect impact on the consolidated financial statements
themselves. Controls which have an indirect effect on As a result of the assessment of the design,
the consolidated financial statements include entity implementation and operating effectiveness of ICOFR,
level controls and Information Technology general the Board concluded that ICOFR is appropriately
controls such as system access and deployment controls designed, implemented and operated effectively as
whereas a control with a direct impact could be, for of December 31, 2023, except for one identified
example, a reconciliation which directly supports a material weakness. The weakness relates to a lack of
balance sheet line item; and feature automated and/or documentation to support the operating effectiveness
manual components. Automated controls are control of certain controls, as required under principle 10 of
functions embedded within system processes such as the COSO framework. However, it is important to
application enforced segregation of duty controls and note that this does not have any impact on the audited
interface checks over the completeness and accuracy consolidated financial statements and that the controls
of inputs. Manual internal controls are those operated have been re-designed to address the identified
by an individual or group of individuals such as weakness post year end and prior to the Annual General
authorization of transactions. Assembly.

Measuring Design, Implementation and Operating This report on Internal Controls over Financial Reporting
Effectiveness of Internal Control was approved by the Board of Directors of the Group
The Company was listed on the Qatar Stock Exchange on 29 February 2024 and were signed on its behalf by:
on 23 August 2023 and from then to 31 December 2023,
the Group has undertaken a formal evaluation of the Sheikh Hamad Bin Abdulla Bin Jassim Al-Thani
adequacy of the design, implementation and operating Chairman
effectiveness of the system of ICOFR considering:

The risk of misstatement of the consolidated financial

statement line items, considering such factors as
materiality and the susceptibility of the financial
statement item to misstatement;
The susceptibility of identified controls to failure,
considering such factors as the degree of automation,
complexity, and risk of management override,

MEEZA 83
04
Audited Financial
Statements
FY 2023
 MEEZA QSTP-LLC (PUBLIC)
DOHA - QATAR

CONSOLIDATED FINANCIAL STATEMENTS AND

INDEPENDENT AUDITOR’S REPORT
FOR THE YEAR ENDED
DECEMBER 31, 2023

86 MEEZA
MEEZA QSTP-LLC (Public)
CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORT
For the year ended December 31, 2023

INDEX Page

Independent auditor’s report --

Consolidated statement of financial position 1

Consolidated statement of profit or loss and other comprehensive income 2

Consolidated statement of changes in equity 3

Consolidated statement of cash flows 4

Notes to the consolidated financial statements 5 – 44

MEEZA 87
 QR. 80846

RN:

INDEPENDENT AUDITOR’S REPORT

To the Shareholders of
MEEZA QSTP-LLC (Public)

Report on the Audit of the Consolidated Financial Statements

Opinion

We have audited the consolidated financial statements of MEEZA QSTP LLC (Public) (“the Company”)
and its subsidiary (the “Group”), which comprise the consolidated statement of financial position as at
December 31, 2023, and the consolidated statement of profit or loss and other comprehensive income,
consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended,
and notes to the consolidated financial statements including a material accounting policy information.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects,
the consolidated financial position of the Group as at December 31, 2023, and its consolidated financial
performance and its consolidated cash flows for the year then ended in accordance with International
Financial Reporting Standards (IFRS Accounting Standards) (IFRSs).

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). 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 Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants
(IESBA Code) together with the other ethical requirements that are relevant to our audit of the Group’s
consolidated financial statements in the State of Qatar, and we have fulfilled our other ethical responsibilities.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit
of the financial statements. These matters were addressed in the context of our audit of the financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these
matters.

88 MEEZA
INDEPENDENT AUDITOR’S REPORT (CONTINUED)

Key Audit Matters How the our audit addressed the key audit matter
Revenue Recognition with respect to Solutions and Managed Services

The Group reported revenue of QR 423 million during the Our procedures in relation to revenue recognition from
year ended December 31, 2023, which includes solutions solutions and managed revenue recognized by the Group
services revenue of QR 136 million and managed services included, but were not limited to, the following:
revenue of QR 113 million. which constitutes 59% of
total revenue. • We obtained an understanding of the process used to
measure and record revenue from solution and
Solutions services revenue comprises the following: managed services and identified the relevant
• Revenue from management and maintenance controls, IT systems, interfaces and reports used in
services of hardware and software owned by this process.
customers; and
• Sale of hardware and software to customers.
• We assessed the relevant controls over the
recognition of revenue from solutions and managed
Management and maintenance services are generally services to determine if they had been appropriately
recognised over a period of time, being the period that designed and implemented and were operating
these services are rendered whereas sales of hardware and effectively.
software to customers are recognised at a point in time.
IFRSs requires that revenue recognised at a point in time • We assessed the Group’s accounting policies, key
and revenue recognised over a period of time are judgements and significant estimates to determine if
separately disclosed. they were in compliance with the requirements of
IFRSs.
Managed services revenue comprises revenue from the
management of Information Technology ("IT") • We selected contracts, on a sample basis, and
infrastructure through the provision of hardware, assessed management’s identification of the
software and management functions. The Group does not performance obligations in these contracts and their
provide the customer with legal ownership of the allocation of the contract price to each performance
hardware and software. The Group will either manage its obligation and agreed this allocation to the amount
customer’s overall IT function or perform certain tasks recognized as revenue.
relating to this function. Managed services revenue is
recognised over a period of time, being the period that • We tested contract assets, on a sample basis, by
these services are rendered. selecting individual items recognized, recalculating
the revenue earned with reference to the underlying
The recognition of revenue from both management and contract and tracing cash receipts or billings to bank
maintenance services and managed services requires statements or the trade receivables listing at the
management to apply significant judgements in reporting date respectively.
determining the individual performance obligations in the
underlying contract with the customer and make • We tested contract liabilities, on a sample basis, by
significant estimates in allocating the contract price to the selecting individual items recognized, recalculating
performance obligations identified. the revenue earned with reference to the underlying
contract and tracing cash receipts to bank statements.
Cash amounts received from customers in excess of
revenue recognised are presented as contract liabilities in • We selected cash deposits in bank statements for the
the consolidated statement of financial position. Revenue one-month period prior to the reporting date to
recognised in excess of cash amounts received from determine if the deposits had been appropriately
customers and billings made to customers is presented as recorded as revenue, a reduction to trade receivables
contract assets in the consolidated statement of financial or contract assets or an increase in contract liabilities.
position.
We considered this to be a key audit matter given the • We assessed the disclosure in the consolidated
significance of these revenue streams to the financial financial statements relating to this matter against the
statements and the level of judgements applied and requirements of IFRSs.
estimates made by management.
Refer to the following notes to the consolidated financial
statement for more details relating to this matter:
Note 3: Material Accounting Policy Information;
Note 4.1: Critical Judgments and Key Sources of
Estimation Uncertainty; and
Note 20: Revenue

MEEZA 89
 INDEPENDENT AUDITOR’S REPORT (CONTINUED)

Other Information

Management is responsible for the other information. The other information comprises the Board of
Director’s Report, but does not include the financial statements and our auditor’s report thereon, which we
obtained prior to the date of this auditor’s report, and the Annual Report, which is expected to be made
available to us after that date.

Our opinion on the financial statements does not cover the other information and we do not and will not
express any form of assurance or conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information
identified above and, in doing so, consider whether the other information is materially inconsistent with the
financial statements, or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

If based on the work we have performed, on the other information that we obtained prior to the date of this
auditor’s report, we conclude that there is a material misstatement of this other information, we are required
to report that fact. We have nothing to report in this regard.

When we read the complete Annual report, if we conclude that there is a material misstatement therein, we
are required to communicate the matter to those charged with governance.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial
Statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements
in accordance with IFRSs and the applicable provisions of Qatar Commercial Companies’ Law, for such
internal control as management determines is necessary to enable the preparation of consolidated financial
statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless management either intends to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Group’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated
financial statements.

90 MEEZA
INDEPENDENT AUDITOR’S REPORT (CONTINUED)

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements (continued)

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
Ø Identify and assess the risks of material misstatement of the consolidated financial statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting
a material misstatement resulting from fraud is higher than the one resulting from error, as fraud may
involve collusion, forgery, intentional omission, misrepresentations, or the override of internal control.
Ø Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the internal controls.
Ø Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by management.
Ø Conclude on the appropriateness of management’s use of the going concern basis of accounting and
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to
the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditor’s report. However, future events or conditions may cause the Group to cease to continue as a
going concern.
Ø Evaluate the overall presentation, structure and content of the consolidated financial statements,
including the disclosures, and whether the financial statements represent the underlying transactions
and events in a manner that achieves fair presentation.
Ø Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the consolidated financial statements. We
are responsible for the direction, supervision and performance of the group audit. We remain solely
responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that
may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were
of most significance in the audit of the financial statements of the current year and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulations precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not
be communicated in our report because the adverse consequences of doing so would reasonably be expected
to outweigh the public interest benefits of such communications.

MEEZA 91
 INDEPENDENT AUDITOR’S REPORT (CONTINUED)

Report on Other Legal and Regulatory Requirements

Further, we report the following:

Ø We are of the opinion that proper books of account were maintained by the Company and the contents
of the director’s report are in agreement with the Company’s accompanying financial statements.
Ø We obtained all the information and explanations which we considered necessary for our audit; and
Ø To the best of our knowledge and belief and according to the information given to us, no contraventions
of the applicable provisions of the Company’s Articles of Associations and QSTP Companies
Regulation in the context of the Group’s consolidated financial statements were committed during the
year which would materially affect the Group’s financial position or its financial performance.

Doha – Qatar For Deloitte & Touche

February 07, 2024 Qatar Branch

Midhat Salha
Partner
License No. 257

92 MEEZA
MEEZA QSTP-LLC (Public)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at December 31, 2023

December 31, December 31,

Notes 2023 2022
QR’000 QR’000
ASSETS
Non-current assets
Property, plant and equipment 5 475,280 508,493
Right-of-use assets 6 143,231 151,941
Contract asset 7 11,162 --
Other non-current assets 8 4,447 12,102
Total non-current assets 634,120 672,536

Current assets
Prepayments and other assets 9 18,754 33,037
Due from related parties 19 43,719 91,895
Contract asset 7 120,548 29,367
Trade and other receivables 10 122,978 121,311
Cash and bank balances 11 249,975 203,405
Total current assets 555,974 479,015
Total assets 1,190,094 1,151,551
EQUITY AND LIABILITIES
Equity
Share capital 12 648,980 648,980
Statutory reserve 13 14,537 8,515
Retained earnings 55,942 21,687
Total equity 719,459 679,182
Non-current liabilities
Employees’ end of service benefits 14 11,251 10,821
Contract liability 20 33,466 27,205
Lease liabilities 15 148,396 155,791
Borrowings 16 121,597 134,858
Total non-current liabilities 314,710 328,675
Current liabilities
Contract liability 20 16,104 3,159
Lease liabilities 15 9,934 8,283
Borrowings 16 13,404 13,548
Due to related parties 19 6,193 2,286
Trade and other payables 17 110,290 116,418
Total current liabilities 155,925 143,694
Total liabilities 470,635 472,369
Total equity and liabilities 1,190,094 1,151,551

The financial statements on pages 1 to 46 were approved and authorised for issue by the Board of Directors
on 7 February 2024 and were signed on its behalf by:

Chairman Acting Chief Executive Officer

Sheikh Hamad Bin Abdulla Bin Jassim Al-Thani Mohsin Nasser M A Al Marri
This statement has been prepared by the Group and stamped by the Auditors for identification purposes
only.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS
-1- MEEZA 93
 MEEZA QSTP-LLC (Public)
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
For the year ended December 31, 2023

Notes 2023 2022

QR’000 QR’000

Revenue 20 422,917 352,877

Cost of sales 21 (308,197) (246,212)
Gross profit 114,720 106,665
General and administrative expenses 22 (49,846) (43,087)
Other expenses (3) (5)
Interest income 11 13,044 3,686
Interest expense on lease liabilities 15 (8,422) (8,645)
Finance costs 16 (9,277) (6,488)
Profit for the year 60,216 52,126
Other comprehensive income -- --
Total comprehensive income for the year 60,216 52,126

Basic and Diluted earnings per share (in QR) 27 0.09 0.08

This statement has been prepared by the Group and stamped by the Auditors for identification purposes
only.

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS
94 MEEZA
-2-
 MEEZA QSTP-LLC (Public)
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended December 31, 2023

Retained
earnings/
Share Statutory Advances from (Accumulated
capital reserve shareholders losses) Total
QR’000 QR’000 QR’000 QR’000 QR’000

Balance at January 1, 2022 200 3,302 749,800 (60,246) 693,056

Total comprehensive income for the year -- -- -- 52,126 52,126
Transfer of advances from shareholders 648,780 -- (749,800) 101,020 --
Transfer to statutory reserve (Note 13) -- 5,213 -- (5,213) --
Transaction with owners in their capacity as owners:
Dividends declared during the period (Note 18):
Related to year 2020 -- -- -- (33,000) (33,000)
Related to year 2021 -- -- -- (33,000) (33,000)
Balance at December 31, 2022 648,980 8,515 -- 21,687 679,182
Total comprehensive income for the year -- -- -- 60,216 60,216
Appropriation for contribution to social and sports fund
(Note 13) -- -- -- (1,505) (1,505)
Transfer to statutory reserve (Note 13) -- 6,022 -- (6,022) --
Transaction with owners in their capacity as owners:
Dividends declared during the period (Note 18): -- -- -- (18,434) (18,434)
Balance at December 31, 2023 648,980 14,537 -- 55,942 719,459

This statement has been prepared by the Group and stamped by the Auditors for identification purposes only.

MEEZA
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS
-3-

95
 MEEZA QSTP-LLC (Public)
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended December 31, 2023

Notes 2023 2022

QR’000 QR’000
CASH FLOWS FROM OPERATING ACTIVITIES
Profit for the year 60,216 52,126
Adjustments for:
Depreciation of property, plant and equipment 5 47,646 50,170
Depreciation of right-of-use assets 6 10,954 10,269
Finance costs 9,277 6,488
Finance income (13,044) (3,686)
Interest expense on lease liabilities 15 8,422 8,645
Expected credit losses /(recovery) on trade receivables 10 771 (269)
Expected credit losses / (recovery) on due from related
parties 19 1,429 (242)
Provision for employees’ end of service benefits 14 3,368 3,263
129,039 126,764
Movements in working capital
Trade and other receivables (2,438) (17,796)
Contract asset (102,343) 201
Prepayments and other assets 14,283 (12,170)
Other non-current assets 7,655 4,719
Due from related parties 46,747 26,732
Trade and other payables (7,633) (5,461)
Due to related parties 3,907 --
Deferred revenue 19,206 (16,891)
Net cash generated by operations 108,423 (106,098)
Finance costs paid (9,277) (6,488)
Payment for employees’ end of service benefits 14 (2,938) (2,108)
Net cash generated by operating activities 96,208 97,502
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant and equipment 5 (14,433) (53,811)
Finance income received 13,044 3,686
Net cash used in investing activities (1,389) (50,125)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends paid 18 (18,434) (66,000)
Borrowings paid 16 (13,405) --
Principal repayment of lease liabilities 15 (16,410) (13,667)
Net cash used in financing activities (48,249) (79,667)

Net increase (decrease) in cash and cash equivalents 46,570 (32,290)

Cash and cash equivalents at the beginning of the year 203,405 235,695
Cash and cash equivalents at the end of the year 11 249,975 203,405

This statement has been prepared by the Group and stamped by the Auditors for identification purposes
only.

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS
-4-
96 MEEZA
MEEZA QSTP-LLC (Public)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2023

1. INCORPORATION AND ACTIVITIES

MEEZA QSTP-LLC (Public) (the “Company”) is registered as a limited liability company under the
Qatar Science and Technology Park (QSTP) Free Zone Regulations with registration number STP008
pursuant to law number 36 of 2005.

On August 23, 2023 the Company was listed on the Qatar Stock Exchange. Qatar Foundation for
Education, Science and Community Development own 40% of the Company, and Ooredoo Q.P.S.C own
10%.

The Company is engaged in information technology services. The address of the Company’s registered
office is Qatar Science and Technology Park Free Zone, Level 1, Tech 2, Gharrafa Street, P.O. Box 892,
Doha, State of Qatar.

The Company’s fully owned subsidiary, MEEZA Information Technology W.L.L. (the “Subsidiary”)
business activities, which commenced in 2021, include software designing and programming, trading in
computer network equipment, designing electronic sites, information technology consultancy, storage
of data and documents, trading in computer networking devices and trading via internet.

The Company and its subsidiary (together “the Group”) operate mainly in the State of Qatar.

2. APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING

STANDARDS (IFRSs)

The accounting policies adopted are consistent with those of the previous financial year, except for the
following new and amended IFRS recently issued by the IASB and International Financial Reporting
Interpretations Committee (“IFRIC”) interpretations effective as of January 1, 2023:

2.1 New and amended IFRS Standards and interpretations that are effective for the current year

The following new and revised IFRSs, which became effective for annual periods beginning on or after
January 1, 2023, have been adopted in these financial statements.

Effective for
annual periods
New and revised IFRSs beginning on or after

IFRS 17 Insurance Contracts (including the June 2020 and December 2021 January 1, 2023
amendments to IFRS 17)
IFRS 17 outlines a general model, which is modified for insurance contracts
with direct participation features, described as the variable fee approach.
The general model is simplified if certain criteria are met by measuring the
liability for remaining coverage using the premium allocation approach.
The general model uses current assumptions to estimate the amount, timing
and uncertainty of future cash flows and it explicitly measures the cost of
that uncertainty. It takes into account market interest rates and the impact
of policyholders’ options and guarantees.

-5-
MEEZA 97
 MEEZA QSTP-LLC (Public)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2023

2. APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING

STANDARDS (IFRSs) (CONTINUED)

2.1 New and amended IFRS Standards and interpretations that are effective for the current year
(continued)

Effective for
annual periods
New and revised IFRSs beginning on or after

IFRS 17 Insurance Contracts (including the June 2020 and December 2021 January 1, 2023
amendments to IFRS 17) (continued)
In June 2020, the IASB issued Amendments to IFRS 17 to address concerns
and implementation challenges that were identified after IFRS 17 was
published. The amendments defer the date of initial application of IFRS 17
(incorporating the amendments) to annual reporting periods beginning on
or after January 1, 2023. At the same time, the IASB issued Extension of
the Temporary Exemption from Applying IFRS 9 (Amendments to IFRS 4)
that extends the fixed expiry date of the temporary exemption from applying
IFRS 9 in IFRS 4 to annual reporting periods beginning on or after January
1, 2023.
IFRS 17 must be applied retrospectively unless impracticable, in which case
the modified retrospective approach or the fair value approach is applied.
For the purpose of the transition requirements, the date of initial application
is the start if the annual reporting period in which the entity first applies the
Standard, and the transition date is the beginning of the period immediately
preceding the date of initial application.
Amendments to IAS 1 Presentation of Financial Statements and IFRS January 1, 2023
Practice Statement 2 Making Materiality Judgements—Disclosure of
Accounting Policies
The amendments change the requirements in IAS 1 with regard to disclosure
of accounting policies. The amendments replace all instances of the term
‘significant accounting policies’ with ‘material accounting policy
information’. Accounting policy information is material if, when considered
together with other information included in an entity’s financial statements,
it can reasonably be expected to influence decisions that the primary users
of general purpose financial statements make on the basis of those financial
statements.
The supporting paragraphs in IAS 1 are also amended to clarify that
accounting policy information that relates to immaterial transactions, other
events or conditions is immaterial and need not be disclosed. Accounting
policy information may be material because of the nature of the related
transactions, other events or conditions, even if the amounts are immaterial.
However, not all accounting policy information relating to material
transactions, other events or conditions is itself material.

98 MEEZA

-6-
MEEZA QSTP-LLC (Public)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2023

2. APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING

STANDARDS (IFRSs) (CONTINUED)

2.1 New and amended IFRS Standards and interpretations that are effective for the current year
(continued)

Effective for
annual periods
New and revised IFRSs beginning on or after

Amendments to IAS 8 Accounting Policies, Changes in Accounting January 1, 2023

Estimates and Errors—Definition of Accounting Estimates
The IASB has amended IAS 8 to define accounting estimates as “monetary
amounts in financial statements that are subject to measurement
uncertainty”. Accounting policies may require items in financial statements
to be measured in a way that involves measurement uncertainty—that is,
the accounting policy may require such items to be measured at monetary
amounts that cannot be observed directly and must instead be estimated. In
such a case, an entity develops an accounting estimate to achieve the
objective set out by the accounting policy. Developing accounting estimates
involves the use of judgements or assumptions based on the latest available,
reliable information.
The IASB has retained the concept of changes in accounting estimates in
the Standard, even though the definition was deleted, with the following
clarifications:
§ A change in accounting estimate that results from new information or
new developments is not the correction of an error
§ The effects of a change in an input or a measurement technique used to
develop an accounting estimate are changes in accounting estimates if
they do not result from the correction of prior period errors.
The IASB added two examples (Examples 4-5) to the Guidance on
implementing IAS 8, which accompanies the Standard. The IASB has
deleted one example (Example 3) as it could cause confusion in light of the
amendments.
Amendments to IAS 12 Income Taxes—Deferred Tax related to Assets and January 1, 2023
Liabilities arising from a Single Transaction
The amendments provide a further exception from the initial recognition
exemption. Under the amendments, an entity does not apply the initial
recognition exemption for transactions that give rise to equal taxable and
deductible temporary differences.
Depending on the applicable tax law, equal taxable and deductible
temporary differences may arise on initial recognition of an asset and
liability in a transaction that is not a business combination and affects
neither accounting nor taxable profit. For example, this may arise upon
recognition of a lease liability and the corresponding right-of-use asset
applying IFRS 16 at the commencement date of a lease.

MEEZA 99
-7-
 MEEZA QSTP-LLC (Public)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2023

2. APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING

STANDARDS (IFRSs) (CONTINUED)

2.1 New and amended IFRS Standards and interpretations that are effective for the current year
(continued)

Effective for
annual periods
New and revised IFRSs beginning on or after

Amendments to IAS 12 Income Taxes—Deferred Tax related to Assets and January 1, 2023
Liabilities arising from a Single Transaction (continued)
Following the amendments to IAS 12, an entity is required to recognize the
related deferred tax asset and liability, with the recognition of any deferred
tax asset being subject to the recoverability criteria in IAS 12.
The IASB also adds an illustrative example to IAS 12 that explains how the
amendments are applied.
The amendments apply to transactions that occur on or after the beginning
of the earliest comparative period presented. In addition, at the beginning
of the earliest comparative period an entity recognizes:
• A deferred tax asset (to the extent that it is probable that taxable profit
will be available against which the deductible temporary difference can
be utilized) and a deferred tax liability for all deductible and taxable
temporary differences associated with:
– Right-of-use assets and lease liabilities
– Decommissioning, restoration and similar liabilities and the
corresponding amounts recognized as part of the cost of the related
asset
• The cumulative effect of initially applying the amendments as an
adjustment to the opening balance of retained earnings (or other
component of equity, as appropriate) at that date
Amendments to IAS 12 Income Taxes —International Tax Reform—Pillar January 1, 2023
Two Model Rules
The Group has adopted the amendments to IAS 12 for the first time in the
current year. The IASB amends the scope of IAS 12 to clarify that the
Standard applies to income taxes arising from tax law enacted or
substantively enacted to implement the Pillar Two model rules published by
the OECD, including tax law that implements qualified domestic minimum
top-up taxes described in those rules.
The amendments introduce a temporary exception to the accounting
requirements for deferred taxes in IAS 12, so that an entity would neither
recognise nor disclose information about deferred tax assets and liabilities
related to Pillar Two income taxes.
Following the amendments, the group is required to disclose that it has
applied the exception and to disclose separately its current tax expense
(income) related to Pillar Two income taxes.

100 MEEZA

-8-
MEEZA QSTP-LLC (Public)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2023

2. APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING

STANDARDS (IFRSs) (CONTINUED)

2.1 New and amended IFRS Standards and interpretations that are effective for the current year
(continued)

Effective for
annual periods
New and revised IFRSs beginning on or after

Amendments to IAS 12 Income Taxes January 1, 2023

The Group has applied the temporary exception issued by the IASB in May
2023 from the accounting requirements for deferred taxes in IAS 12.
Accordingly, the Group neither recognises nor discloses information about
deferred tax assets and liabilities related to Pillar Two income taxes.
The group is continuing to assess the impact of the Pillar Two income taxes
legislation on its future financial performance

2.2 New and amended IFRSs in issue but not yet effective and not early adopted

The Company has not early adopted the following new and amended standards and interpretations that
have been issued but are not yet effective.

Effective for
annual periods
New and revised IFRSs beginning on or after

Amendments to IAS 1 Presentation of Financial Statements Classification January 1, 2024. Early

of Liabilities as Current or Non-current application permitted
The amendments to IAS 1 published in January 2020 affect only the
presentation of liabilities as current or noncurrent in the statement of
financial position and not the amount or timing of recognition of any asset,
liability, income or expenses, or the information disclosed about those
items.
Amendments to IAS 1 Presentation of Financial Statements Classification January 1, 2024. Early
of Liabilities as Current or Non-current application permitted
The amendments clarify that the classification of liabilities as current or
non-current is based on rights that are in existence at the end of the reporting
period, specify that classification is unaffected by expectations about
whether an entity will exercise its right to defer settlement of a liability,
explain that rights are in existence if covenants are complied with at the end
of the reporting period, and introduce a definition of ‘settlement’ to make
clear that settlement refers to the transfer to the counterparty of cash, equity
instruments, other assets or services.
In November 2022, IAS 1 has been amended to specify that only covenants
an entity must comply with on or before the reporting period should affect
classification of the corresponding liability as current or noncurrent.

MEEZA 101

-9-
 MEEZA QSTP-LLC (Public)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2023

2. APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING

STANDARDS (IFRSs) (CONTINUED)

2.2 New and amended IFRSs in issue but not yet effective and not early adopted (continued)

Effective for
annual periods
New and revised IFRSs beginning on or after

Amendments to IAS 1 Presentation of Financial Statements Classification January 1, 2024. Early

of Liabilities as Current or Non-current (continued) application permitted
An entity is required to disclose information in the notes that enables users
of financial statements to understand the risk that non-current liabilities with
covenants could become repayable within twelve months.
The 2022 amendments deferred the effective date of the amendments to IAS
1 Classification of Liabilities as Current or Non-current published in
January 2020 by one year to annual reporting periods beginning on or after
1 January [Link] amendments are applied retrospectively.
Amendments to IFRS 10 and IAS 28 – Sale or Contribution of Assets Available for optional
between an Investor and its Associate or Joint Venture adoption/ effective date
deferred indefinitely
The amendments to IFRS 10 and IAS 28 deal with situations where there is
a sale or contribution of assets between an investor and its associate or joint
venture. Specifically, the amendments state that gains or losses resulting
from the loss of control of a subsidiary that does not contain a business in a
transaction with an associate or a joint venture that is accounted for using
the equity method, are recognized in the parent’s profit or loss only to the
extent of the unrelated investors’ interests in that associate or joint venture.
Similarly, gains and losses resulting from the remeasurement of investments
retained in any former subsidiary (that has become an associate or a joint
venture that is accounted for using the equity method) to fair value are
recognized in the former parent’s profit or loss only to the extent of the
unrelated investors’ interests in the new associate or joint venture.
Amendments to IFRS 16 Leases: Amendments to clarify how a seller-lessee January 1, 2024. Early
subsequently measures sale and leaseback transactions application permitted
The amendments require a seller-lessee to subsequently measure lease
liabilities by determining “lease payments” and “revised lease payments”
arising from a leaseback in a way that it does not recognize any amount of
the gain or loss that relates to the right of use it retains. The new
requirements do not prevent a seller-lessee from recognizing in profit or loss
any gain or loss relating to the partial or full termination of a lease.
Without these new requirements, a seller-lessee may have recognized a gain
on the right of use it retains solely because of a remeasurement of the lease
liability (for example, following a lease modification or change in the lease
term) applying the general requirements in IFRS 16. This could have been
particularly the case in a leaseback that includes variable lease payments
that do not depend on an index or rate.
A seller-lessee applies the amendments retrospectively in accordance with
IAS 8 to sale and leaseback transactions entered into after the date of initial
application, which is defined as the beginning of the annual reporting period
in which the entity first applied IFRS 16.

- 10 -
102 MEEZA
MEEZA QSTP-LLC (Public)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2023

2. APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING

STANDARDS (IFRSs) (CONTINUED)

2.2 New and amended IFRSs in issue but not yet effective and not early adopted (continued)

Effective for
annual periods
New and revised IFRSs beginning on or after

Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial January 1, 2024. Earlier
Instruments: Disclosures—Supplier Finance Arrangements application is permitted
The amendments add a disclosure objective to IAS 7 stating that an entity
is required to disclose information about its supplier finance arrangements
that enables users of financial statements to assess the effects of those
arrangements on the entity’s liabilities and cash flows. In addition, IFRS 7
was amended to add supplier finance arrangements as an example within
the requirements to disclose information about an entity’s exposure to
concentration of liquidity risk.
The term ‘supplier finance arrangements’ is not defined. Instead, the
amendments describe the characteristics of an arrangement for which an
entity would be required to provide the information.
To meet the disclosure objective, an entity will be required to disclose in
aggregate for its supplier finance arrangements:
• The terms and conditions of the arrangements
• The carrying amount, and associated line items presented in the entity’s
statement of financial position, of the liabilities that are part of the
arrangements;
• The carrying amount, and associated line items for which the suppliers
have already received payment from the finance providers;
• Ranges of payment due dates for both those financial liabilities that are
part of a supplier finance arrangement and comparable trade payables
that are not part of a supplier finance arrangement;
• Liquidity risk information
The amendments, which contain specific transition reliefs for the first
annual reporting period in which an entity applies the amendments, are
applicable for annual reporting periods beginning on or after 1 January
2024. Earlier application is permitted.
Amendments to IAS 1 Presentation of Financial Statements – Non-Current January 1, 2024
Liabilities with Covenants
In January 2020, the IASB issued amendments to IAS 1 – Classification of
Liabilities as Current or Non-current (the 2020 Amendments). One of the
requirements prescribed by the 2020 Amendments related to the
classification of liabilities subject to covenants (e.g. a bank loan where the
lender may demand accelerated repayment if financial covenants are not
met). The 2020 Amendments provided that if an entity’s right to defer
settlement is subject to the entity complying with specified conditions, the
right exists at the end of the reporting period only if the entity complies with
those conditions at the end of the reporting period. Several concerns were
raised about the outcome of these requirements, therefore, the mandatory
effective date was deferred. In order to address these concerns, the IASB
has now issued the 2022 Amendments.

- 11 -
MEEZA 103
 MEEZA QSTP-LLC (Public)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2023

2. APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING

STANDARDS (IFRSs) (CONTINUED)

2.2 New and amended IFRSs in issue but not yet effective and not early adopted (continued)

Effective for
annual periods
New and revised IFRSs beginning on or after

Amendments to IAS 1 Presentation of Financial Statements – Non-Current January 1, 2024

Liabilities with Covenants (continued)
The 2022 Amendments specify that covenants to be complied with after the
reporting date do not affect the classification of debt as current or non-
current at the reporting date. An entity is required to disclose information
about these covenants in the notes to the financial statements.
The Amendments address the concerns raised by stakeholders on the effects
of the amendments to IAS 1 Classification of Liabilities as Current or Non-
current related to classification of liabilities with covenants. Under the 2022
Amendments, a covenant affects whether right to defer settlement exists at
the end of the reporting period if compliance with the covenant is required
on or before the end of the reporting period.
The amendments are applied retrospectively with early application
permitted.
Amendments to IAS 21 - Lack of Exchangeability January 1, 2025. Earlier
application is permitted
An entity is impacted by the amendments when it has a transaction or an
operation in a foreign currency that is not exchangeable into another
currency at a measurement date for a specified purpose. A currency is
exchangeable when there is an ability to obtain the other currency (with a
normal administrative delay), and the transaction would take place through
a market or exchange mechanism that creates enforceable rights and
obligations.

Management anticipates that these new standards, interpretations and amendments will be adopted in
the Group’s financial statements as and when they are applicable and adoption of these new standards,
interpretations and amendments as highlighted in previous paragraphs, may have no material impact on
the financial statements of the Company in the period of initial application.

3. MATERIAL ACCOUNTING POLICIES INFORMATION

Statement of compliance

The consolidated financial statements have been prepared in accordance with International Financial
Reporting Standards (“IFRSs”) as issued by the International Accounting Standards Board (“IASB”),
the Company’s Articles of Association, and the Qatar Science and Technology Park regulations.

Basis of preparation

The consolidated financial statements have been prepared on the historical cost basis. These consolidated
financial statements are presented in Qatari Riyals (QR), which is the Company’s functional currency
and the Group’s presentation currency. All financial information are expressed in thousands Qatari
Riyals (QR ‘000) except when otherwise indicated.

- 12 -
104 MEEZA
MEEZA QSTP-LLC (Public)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2023

3. MATERIAL ACCOUNTING POLICIES INFORMATION (CONTINUED)

Basis of preparation (continued)

The Group has prepared the financial statements on the basis that it will continue to operate as a going
concern.

The principal accounting policies are set out below. These policies have been consistently applied to all
the years presented, unless otherwise stated.

Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and entities
controlled by the Company (its subsidiary) made up to reporting date each year. Control is achieved
when the Company:
• has the power over the investee;
• is exposed, or has rights, to variable returns from its involvement with the investee; and
• has the ability to use its power to affects its returns.

The Company reassesses whether or not it controls an investee if facts and circumstances indicate that
there are changes to one or more of the three elements of control listed above.

When the Company has less than a majority of the voting rights of an investee, it considers that it has
power over the investee when the voting rights are sufficient to give it the practical ability to direct the
relevant activities of the investee unilaterally. The Company considers all relevant facts and
circumstances in assessing whether or not the Company’s voting rights in an investee are sufficient to
give it power, including:
• the size of the Company’s holding of voting rights relative to the size and dispersion of holdings of
the other vote holders;
• potential voting rights held by the Company, other vote holders or other parties;
• rights arising from other contractual arrangements; and
• any additional facts and circumstances that indicate that the Company has, or does not have, the
current ability to direct the relevant activities at the time that decisions need to be made, including
voting patterns at previous shareholders’ meetings.

Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases
when the Company loses control of the subsidiary. Specifically, the results of subsidiaries acquired or
disposed of during the year are included in profit or loss from the date the Company gains control until
the date when the Company ceases to control the subsidiary.

Where necessary, adjustments are made to the financial statements of subsidiaries to bring the
accounting policies used into line with the Group’s accounting policies.

All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions
between the members of the Group are eliminated on consolidation.

Non-controlling interests in subsidiaries, if any, are identified separately from the Group’s equity
therein. Those interests of non-controlling shareholders that are present ownership interests entitling
their holders to a proportionate share of net assets upon liquidation may initially be measured at fair
value or at the non-controlling interests’ proportionate share of the fair value of the acquiree’s
identifiable net assets. The choice of measurement is made on an acquisition-by-acquisition basis. Other
non-controlling interests are initially measured at fair value. Subsequent to acquisition, the carrying
amount of non-controlling interests is the amount of those interests at initial recognition plus the non-
controlling interests’ share of subsequent changes in equity.
- 13 -
MEEZA 105
 MEEZA QSTP-LLC (Public)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2023

3. MATERIAL ACCOUNTING POLICIES INFORMATION (CONTINUED)

Basis of consolidation (continued)

Profit or loss and each component of other comprehensive income are attributed to the owners of the
Company and to the non-controlling interests. Total comprehensive income of the subsidiaries is
attributed to the owners of the Company and to the non-controlling interests even if this results in the
non-controlling interests having a deficit balance.

Changes in the Group’s interests in subsidiaries that do not result in a loss of control are accounted for
as equity transactions. The carrying amount of the Group’s interests and the non-controlling interests are
adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the
amount by which the non-controlling interests are adjusted and the fair value of the consideration paid
or received is recognized directly in equity and attributed to the owners of the Company.

When the Group loses control of a subsidiary, the gain or loss on disposal recognized in the consolidated
statement of profit or loss is calculated as the difference between (i) the aggregate of the fair value of
the consideration received and the fair value of any retained interest and (ii) the previous carrying amount
of the assets (including goodwill), less liabilities of the subsidiary and any non-controlling interests. All
amounts previously recognized in other comprehensive income in relation to that subsidiary are
accounted for as if the Group had directly disposed of the related assets or liabilities of the subsidiary
(i.e. reclassified to profit or loss or transferred to another category of equity as required/permitted by
applicable IFRS Standards). The fair value of any investment retained in the former subsidiary at the
date when control is lost is regarded as the fair value on initial recognition for subsequent accounting
under IFRS 9 when applicable, or the cost on initial recognition of an investment in an associate or a
joint venture.

Property, plant and equipment

Recognition and measurement

Property, plant and equipment are carried at cost less accumulated depreciation and any accumulated
impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the asset.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will flow to
the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part
is derecognised. All other repairs and maintenance are charged to the consolidated statement of profit or
loss during the financial period in which they are incurred.

If significant parts of an item of property and equipment have different useful lives, then they are
accounted for as separate items (major components) of property and equipment.

Subsequent costs

Subsequent costs that can be reliably measured are included in the asset’s carrying amount or recognised
as a separate asset, as appropriate, only when it is probable that future economic benefits associated with
the item will flow to the Group.

Depreciation

Depreciation is calculated to write off the cost of items of property, plant and equipment less their
estimated residual values, if applicable, using the straight-line method over their estimated useful lives
commencing when the assets are ready for their intended use and is generally recognised in the
consolidated statement of profit or loss.

106 MEEZA - 14 -
MEEZA QSTP-LLC (Public)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2023

3. MATERIAL ACCOUNTING POLICIES INFORMATION (CONTINUED)

Property, plant and equipment (continued)

Depreciation (continued)

The estimated useful lives of property, plant and equipment is presented in Note 5 and are as follows:

Data centre and network assets 3 - 25 years

Building and leasehold improvements 5 - 20 years
Office furniture and other equipment 3 - 5 years

Management has determined the estimated useful lives of each asset and/ or category of assets based on
the expected usage of the assets, physical wear and tear depending on operational and environmental
factors and legal or similar limits on the use of the assets. Depreciation methods and useful lives are
reviewed at each reporting date and adjusted if appropriate, on a prospective basis.

Derecognition

An item of property and equipment is derecognised upon disposal or when no future economic benefits
are expected from its use. Profits and losses on disposals of items of property and equipment are
determined by comparing the proceeds from their disposals with their respective carrying amounts and
are recognised net within the consolidated statement of profit or loss.

Capital work in progress

Properties in the course of construction for production, rental or administrative purposes, or for purposes
not yet determined, are carried at cost, less any recognised impairment loss. Cost includes professional
fees and, for qualifying assets, borrowing costs capitalised in accordance with the Group’s accounting
policy. Such properties are classified to the appropriate categories of property, plant and equipment when
completed and ready for intended use. Depreciation of these assets, on the same basis as other property,
plant and equipment, commences when the assets are ready for their intended use.

Impairment of tangible assets

At each statement of financial position date, the Group reviews the carrying amounts of its tangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If
any such indication exists, the recoverable amount of the asset is estimated in order to determine the
extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an
individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the
asset belongs.

The recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing
value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time value of money and the risks specific to the
asset. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its
carrying amount, the carrying amount of the asset (cash-generating unit) is reduced to its recoverable
amount. An impairment loss is recognised immediately in the consolidated statement of profit or loss
unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as
a revaluation decrease.

- 15 - MEEZA 107
 MEEZA QSTP-LLC (Public)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2023

3. MATERIAL ACCOUNTING POLICIES INFORMATION (CONTINUED)

Property, plant and equipment (continued)

Depreciation (continued)

The estimated useful lives of property, plant and equipment is presented in Note 5 and are as follows:

Data centre and network assets 3 - 25 years

Building and leasehold improvements 5 - 20 years
Office furniture and other equipment 3 - 5 years

Management has determined the estimated useful lives of each asset and/ or category of assets based on
the expected usage of the assets, physical wear and tear depending on operational and environmental
factors and legal or similar limits on the use of the assets. Depreciation methods and useful lives are
reviewed at each reporting date and adjusted if appropriate, on a prospective basis.

Derecognition

An item of property and equipment is derecognised upon disposal or when no future economic benefits
are expected from its use. Profits and losses on disposals of items of property and equipment are
determined by comparing the proceeds from their disposals with their respective carrying amounts and
are recognised net within the consolidated statement of profit or loss.

Capital work in progress

Properties in the course of construction for production, rental or administrative purposes, or for purposes
not yet determined, are carried at cost, less any recognised impairment loss. Cost includes professional
fees and, for qualifying assets, borrowing costs capitalised in accordance with the Group’s accounting
policy. Such properties are classified to the appropriate categories of property, plant and equipment when
completed and ready for intended use. Depreciation of these assets, on the same basis as other property,
plant and equipment, commences when the assets are ready for their intended use.

Impairment of tangible assets

At each statement of financial position date, the Group reviews the carrying amounts of its tangible assets
to determine whether there is any indication that those assets have suffered an impairment loss. If any
such indication exists, the recoverable amount of the asset is estimated in order to determine the extent
of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an
individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the
asset belongs.

The recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing
value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time value of money and the risks specific to the
asset. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its
carrying amount, the carrying amount of the asset (cash-generating unit) is reduced to its recoverable
amount. An impairment loss is recognised immediately in the consolidated statement of profit or loss
unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as
a revaluation decrease.

108 MEEZA
- 16 -
MEEZA QSTP-LLC (Public)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2023

3. MATERIAL ACCOUNTING POLICIES INFORMATION (CONTINUED)

Impairment of tangible assets (continued)

Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit)
is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount
does not exceed the carrying amount that would have been determined had no impairment loss been
recognised for the asset (cash-generating unit) in prior years. A reversal of an impairment loss is
recognised immediately in the consolidated statement of profit or loss unless the relevant asset is carried
at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation
increase.

Current versus non-current classification

The Group presents assets and liabilities based on current/non-current classification.

An asset is current when:

•It is expected to be realised or intended to sold or consumed in normal operating cycle;

•It is held primarily for the purpose of trading;
•It is expected to be realised within twelve months after the reporting period (or receivable on demand);
or
•It is cash or a cash equivalent unless restricted from being exchanged or used to settle a liability for at
least twelve months after the reporting period.

A liability is current when:

•It is expected to be settled in normal operating cycle;

•It is held primarily for the purpose of trading;
•It is due to be settled within twelve months after the reporting period (or payable on demand); or
•There is no unconditional right to defer the settlement of the liability for at least twelve months after
the reporting period.

All other assets and liabilities are classified as non-current.

Provisions

Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of
a past event, it is probable that the Group will be required to settle the obligation and a reliable estimate
can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the
present obligation at the statement of financial position date, taking into account the risks and
uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated
to settle the present obligation, its carrying amount is the present value of those cash flows.

- 17 -
MEEZA 109
 MEEZA QSTP-LLC (Public)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2023

3. MATERIAL ACCOUNTING POLICIES INFORMATION (CONTINUED)

Provisions (continued)

When some or all of the economic benefits required to settle a provision are expected to be recovered
from a third party, the receivable is recognised as an asset if it is virtually certain that reimbursement
will be received and the amount of the receivable can be measured reliably.

Onerous contracts

Present obligations arising under onerous contracts are recognised and measured as provisions. An
onerous contract is considered to exist where the Group has a contract under which the unavoidable costs
of meeting the obligations under the contract exceed the economic benefits expected to be received from
the contract.

Post-employment benefits

Employees’ end of service benefits

A provision is made for employees’ end of service benefits which is payable on completion of
employment. The provision is calculated in accordance with Qatari Labour Law based on employees’
salary and accumulated period of service as at the reporting date.

Defined contribution pension plan

A defined contribution plan is a pension plan under which the Company pays fixed contributions into a
separate entity. The Company pays contributions to publicly administered pension insurance plans on a
mandatory basis for all Qatari employees and GCC nationals in accordance with Qatar Pensions and
Retirement Law No. 24 of 2002 and other relevant laws. The Company has no further pension payment
obligations once the contributions have been paid. The contributions are recognised as employee benefit
expense when they are due.

Financial instruments

Financial assets and financial liabilities are recognised in the Group’s consolidated statement of financial
position when the Group becomes a party to the contractual provisions of the instrument.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are
directly attributable to the acquisition or issue of financial assets and financial liabilities (other than
financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from
the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition.
Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair
value through profit or loss are recognised immediately in the consolidated statement of profit or loss.

110 MEEZA
- 18 -
MEEZA QSTP-LLC (Public)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2023

3. MATERIAL ACCOUNTING POLICIES INFORMATION (CONTINUED)

Financial assets

All regular way purchases or sales of financial assets are recognised and derecognised on a trade date
basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery
of assets within the time frame established by regulation or convention in the marketplace.

All recognised financial assets are measured subsequently in their entirety at either amortised cost or
fair value, depending on the classification of the financial assets.

Classification of financial assets

(i) Debt instruments designated at amortised cost

Debt instruments that meet the following conditions are measured subsequently at amortised cost:

• the financial asset is held within a business model whose objective is to hold financial assets in
order to collect contractual cash flows; and
• the contractual terms of the financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding.

Amortised cost and effective interest rate method

The amortised cost of a financial asset is the amount at which the financial asset is measured at initial
recognition minus the principal repayments, plus the cumulative amortisation using the effective
interest method of any difference between that initial amount and the maturity amount, adjusted for
any loss allowance.

The effective interest method is a method of calculating the amortised cost of a debt instrument and
of allocating interest income over the relevant period.

Interest income is recognised using the effective interest method for debt instruments measured
subsequently at amortised cost. For financial instruments other than purchased or originated credit-
impaired financial assets, interest income is calculated by applying the effective interest rate to the
gross carrying amount of a financial asset, except for financial assets that have subsequently become
credit-impaired (see below). For financial assets that have subsequently become credit-impaired,
interest income is recognised by applying the effective interest rate to the amortised cost of the
financial asset. If, in subsequent reporting periods, the credit risk on the credit-impaired financial
instrument improves so that the financial asset is no longer credit-impaired, interest income is
recognised by applying the effective interest rate to the gross carrying amount of the financial asset.

For purchased or originated credit-impaired financial assets, the Group recognises interest income by
applying the credit-adjusted effective interest rate to the amortised cost of the financial asset from
initial recognition. The calculation does not revert to the gross basis even if the credit risk of the
financial asset subsequently improves so that the financial asset is no longer credit-impaired.

Interest income is recognised in consolidated statement of profit or loss and is included in the "interest
income" line item.

- 19 -
MEEZA 111
 MEEZA QSTP-LLC (Public)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2023

3. MATERIAL ACCOUNTING POLICIES INFORMATION (CONTINUED)

Financial assets (continued)

Impairment of financial assets

The Group recognises a loss allowance for expected credit losses on trade receivables, unbilled
revenue, due from related parties and bank balances. The amount of expected credit losses is updated
at each reporting date to reflect changes in credit risk since initial recognition of the respective
financial instrument.

The Group always recognises lifetime ECL for trade receivables, due from related parties and
unbilled revenue. The expected credit losses on these financial assets are estimated using a provision
matrix based on the Group’s historical credit loss experience, adjusted for factors that are specific to
the debtors, general economic conditions and an assessment of both the current as well as the forecast
direction of conditions at the reporting date, including time value of money where appropriate.

For all other financial instruments, the Group recognises lifetime ECL when there has been a
significant increase in credit risk since initial recognition. However, if the credit risk on the financial
instrument has not increased significantly since initial recognition, the Group measures the loss
allowance for that financial instrument at an amount equal to 12-month ECL. The assessment of
whether lifetime ECL should be recognised is based on significant increases in the likelihood or risk
of a default occurring since initial recognition instead of on evidence of a financial asset being credit-
impaired at the reporting date.

Lifetime ECL represents the expected credit losses that will result from all possible default events
over the expected life of a financial instrument. In contrast, 12-month ECL represents the portion of
lifetime ECL that is expected to result from default events on a financial instrument that are possible
within 12 months after the reporting date.

(i) Significant increase in credit risk

In assessing whether the credit risk on a financial instrument has increased significantly since initial
recognition, the Group compares the risk of a default occurring on the financial instrument as at the
reporting date with the risk of a default occurring on the financial instrument as at the date of initial
recognition. In making this assessment, the Group considers both quantitative and qualitative
information that is reasonable and supportable, including historical experience and forward-looking
information that is available without undue cost or effort.

The Group regularly monitors the effectiveness of the criteria used to identify whether there has been
a significant increase in credit risk and revises them as appropriate to ensure that the criteria are
capable of identifying significant increase in credit risk before the amount becomes past due.

The Group assumes that the credit risk on a financial instrument has not increased significantly since
initial recognition if the financial instrument is determined to have low credit risk at the reporting
date. A financial instrument is determined to have low credit risk if:
(1) The financial instrument has a low risk of default,
(2) The borrower has a strong capacity to meet its contractual cash flow obligations in the near term,
and
(3) Adverse changes in economic and business conditions in the longer term may, but will not
necessarily, reduce the ability of the borrower to fulfil its contractual cash flow obligations.

112 MEEZA
- 20 -
MEEZA QSTP-LLC (Public)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2023

3. MATERIAL ACCOUNTING POLICIES INFORMATION (CONTINUED)

Financial assets (continued)

Impairment of financial assets (continued)

(ii) Definition of default

The Group considers the following as constituting an event of default for internal credit risk
management purposes as historical experience indicates that receivables that meet either of the
following criteria are generally not recoverable:

• when there is a breach of financial covenants by the counterparty; or

• information developed internally or obtained from external sources indicates that the debtor is
unlikely to pay its creditors, including the Group, in full (without taking into account any
collateral held by the Group).

Irrespective of the above analysis, the Group considers that default has occurred when a financial
asset is more than 90-days past due for trade receivables (other than governmental entities) and 365-
days past due for due from related parties, unless the Group has reasonable and supportable
information to demonstrate that a more lagging default criterion is more appropriate.

(iii) Credit-impaired financial assets

A financial asset is credit-impaired when one or more events that have a detrimental impact on the
estimated future cash flows of that financial asset have occurred. Evidence that a financial asset is
credit-impaired includes observable data about the following events:

(a) significant financial difficulty of the issuer or the borrower;

(b) a breach of contract, such as a default or past due event (see (ii) above);
(c) the lender(s) of the borrower, for economic or contractual reasons relating to the borrower’s
financial difficulty, having granted to the borrower a concession(s) that the lender(s) would not
otherwise consider;
(d) it is becoming probable that the borrower will enter bankruptcy or other financial reorganisation;
or
(e) the disappearance of an active market for that financial asset because of financial difficulties.

(iv) Write-off policy

The Group writes off a financial asset when there is information indicating that the counterparty is in
severe financial difficulty and there is no realistic prospect of recovery. Financial assets written off
may still be subject to enforcement activities under the Group’s recovery procedures, taking into
account legal advice where appropriate. Any recoveries made are recognised in consolidated
statement of profit or loss.

MEEZA 113
- 21 -
 MEEZA QSTP-LLC (Public)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2023

3. MATERIAL ACCOUNTING POLICIES INFORMATION (CONTINUED)

Financial assets (continued)

Impairment of financial assets (continued)

(v) Measurement and recognition of expected credit losses

The measurement of expected credit losses is a function of the probability of default, loss given
default (i.e. the magnitude of the loss if there is a default) and the exposure at default. The assessment
of the probability of default and loss given default is based on historical data adjusted by forward-
looking information as described above. As for the exposure at default, for financial assets, this is
represented by the assets’ gross carrying amount at the reporting date.

For financial assets, the expected credit loss is estimated as the difference between all contractual
cash flows that are due to the Group in accordance with the contract and all the cash flows that the
Group expects to receive, discounted at the original effective interest rate.

Derecognition of financial assets

The Group derecognises a financial asset only when the contractual rights to the cash flows from the
asset expire, or when it transfers the financial asset and substantially all the risks and rewards of
ownership of the asset to another entity. If the Group neither transfers nor retains substantially all the
risks and rewards of ownership and continues to control the transferred asset, the Group recognises
its retained interest in the asset and an associated liability for amounts it may have to pay.

If the Group retains substantially all the risks and rewards of ownership of a transferred financial
asset, the Group continues to recognise the financial asset and also recognises a collateralised
borrowing for the proceeds received.

On derecognition of a financial asset measured at amortised cost, the difference between the asset’s
carrying amount and the sum of the consideration received and receivable is recognised in the
consolidated statement of profit or loss. In addition, on derecognition of an investment in a debt
instrument classified as at FVTOCI, the cumulative gain or loss previously accumulated in the
investments revaluation reserve is reclassified to the consolidated statement of profit or loss. In
contrast, on derecognition of an investment in equity instrument which the Group has elected on
initial recognition to measure at FVTOCI, the cumulative gain or loss previously accumulated in the
investments revaluation reserve is not reclassified to the consolidated statement of profit or loss, but
is transferred to retained earnings.

114 MEEZA
- 22 -
MEEZA QSTP-LLC (Public)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2023

3. MATERIAL ACCOUNTING POLICIES INFORMATION (CONTINUED)

Financial liabilities

All financial liabilities are measured subsequently at amortised cost using the effective interest
method. The Group does not have any financial liability measured at FVTPL.

Financial liabilities are measured subsequently at amortised cost using the effective interest method.

The effective interest method is a method of calculating the amortised cost of a financial liability and
of allocating interest expense over the relevant period. The effective interest rate is the rate that
exactly discounts estimated future cash payments (including all fees and points paid or received that
form an integral part of the effective interest rate, transaction costs and other premiums or discounts)
through the expected life of the financial liability, or (where appropriate) a shorter period, to the
amortised cost of a financial liability.

Derecognition of financial liabilities

The Group derecognises financial liabilities when, and only when, the Group’s obligations are
discharged, cancelled or have expired. The difference between the carrying amount of the financial
liability derecognised and the consideration paid and payable is recognised in the consolidated
statement of profit or loss.

Foreign exchange gains and losses

For financial liabilities that are denominated in a foreign currency and are measured at amortised cost
at the end of each reporting period, the foreign exchange gains and losses are determined based on
the amortised cost of the instruments. These foreign exchange gains and losses are recognised in the
consolidated statement of profit or loss for financial liabilities that are not part of a designated hedging
relationship.

Revenue recognition

Rendering of services

The Group principally obtains revenue from selling the following IT related services:

- Data centre and managed services

- Workplace services
- Solutions services
- Master system integrator services
- Cloud services

Revenue is measured based on the consideration to which the Group expects to be entitled in a
contract with a customer and excludes amounts collected on behalf of third parties. The Group
recognize revenue when it transfers control over goods and services to its customer.

Revenues from the above mentioned services, expect Solutions services, are recognised over time
upon the satisfaction of the performance obligation. The Group uses output method to measure the
progress of the revenue recognised overtime.

- 23 -
MEEZA 115
 MEEZA QSTP-LLC (Public)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2023

3. MATERIAL ACCOUNTING POLICIES INFORMATION (CONTINUED)

Revenue recognition (continued)

Revenues from solution services are typically recognised at a point in time upon control of the goods
or service is transferred to the customer.

Contract liability:

When a customer pays up-front for requested services, a contract liability is recognised for revenues
associated with these services at the time of initial sale and is released over the service period.

Contract asset:

When payment for services performed to date is not due from the customer based on the agreed-upon
performance-related milestones, a contract asset is recognised over the period in which the services
are performed representing the Group’s right to consideration for the services performed to date.

Non-refundable upfront fee

The Group charge non-refundable fees associated to projects charged to customers. These fees are
recognised as revenue when the related services are provided to the customers over the term of the
contract.

Interest income

Interest income is accrued on a time basis with reference to the principal outstanding and at the
effective interest rate applicable, which is the rate that exactly discount estimated future cash receipts
through the expected life of the financial asset to that asset’s net carrying amount.

Dividend distribution

Dividend distribution to the Group’s shareholders is recognised as a liability in the Group’s

consolidated financial statements in the period in which the dividends are approved by the Group’s
shareholders.

Leases

The Group as lessee

The Group assesses whether contract is or contains a lease, at inception of the contract. The Group
recognises a right-of-use asset and a corresponding lease liability with respect to all lease
arrangements in which it is the lessee, except for short-term leases (defined as leases with a lease
term of 12 months or less) and leases of low value assets. For these leases, the Group recognises the
lease payments as an operating expense on a straight-line basis over the term of the lease unless
another systematic basis is more representative of the time pattern in which economic benefits from
the leased assets are consumed.

The lease liability is initially measured at the present value of the lease payments that are not paid at
the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be
readily determined, the Group uses its incremental borrowing rate.

- 24 -
116 MEEZA
MEEZA QSTP-LLC (Public)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2023

3. MATERIAL ACCOUNTING POLICIES INFORMATION (CONTINUED)

Leases (continued)

The Group as lessee (continued)

Lease payments included in the measurement of the lease liability comprise:

• fixed lease payments (including in-substance fixed payments), less any lease incentives;
• variable lease payments that depend on an index or rate, initially measured using the index or
rate at the commencement date;
• the amount expected to be payable by the lessee under residual value guarantees;
• the exercise price of purchase options, if the lessee is reasonably certain to exercise the options;
and
• payments of penalties for terminating the lease, if the lease term reflects the exercise of an option
to terminate the lease.
The lease liability is presented as a separate line item in the consolidated statement of financial
position.

The lease liability is subsequently measured by increasing the carrying amount to reflect interest on
the lease liability (using effective interest method) and by reducing the carrying amount to reflect the
lease payments made.

The Group remeasures the lease liability (and makes a corresponding adjustment to the related right-
of-use asset) whenever:

• the lease term has changed or there is a change in the assessment of exercise of a purchase option,
in which case the lease liability is remeasured by discounting the revised lease payments using
a revised discount rate.
• the lease payments change due to changes in an index or rate or a change in expected payment
under a guaranteed residual value, in which cases the lease liability is remeasured by discounting
the revised lease payments using the initial discount rate (unless the lease payments change is
due to a change in a floating interest rate, in which case a revise discount rate is used).
• a lease contract is modified and the lease modification is not accounted for as a separate lease,
in which case the lease liability is remeasured by discounting the revised lease payments using
a revised discount rate.

The right-of-use assets are depreciated over the shorter period of lease term and useful life of the
underlying asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use
of asset reflects that the Group expects to exercise a purchase option, the related right-of-use asset is
depreciated over the useful life of the underlying asset. The depreciation starts at the commencement
date of the lease.

The right-of-use of assets are presented as a separate line in the consolidated statement of financial
position.

The Group applies IAS36 to determine whether a right-of-use asset is impaired and accounts for an
identified impairment loss as described in the ‘Property, plant and equipment’ policy.

Variable rents that do not depend on an index or rate are not included in the measurement of the lease
liability and the right-of-use asset. The related payments are recognised as an expense in the period
in which the event or condition that triggers those payments occurs and are included in the line
“General and administrative expenses” in the consolidated statement of profit or loss.
- 25 -
MEEZA 117
 MEEZA QSTP-LLC (Public)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2023

3. MATERIAL ACCOUNTING POLICIES INFORMATION (CONTINUED)

Leases (continued)

The Group as lessee (continued)

As a practical expedient, IFRS16 permits a lessee not to separate non-lease components, and instead
account for any lease and associated non-lease components as a single arrangement. The Group used
this practical expedient.

Cash and cash equivalent

Cash and cash equivalents comprise bank balances and short-term deposits with original maturities
of three months or less, if any, net of any outstanding balances and are used by the Group in the
management of its short-term commitments.

Social and Sports Fund Contribution

Pursuant to the Qatar Law No. 13 of 2008 and the related clarifications issued in 2011, which is
applicable for all Qatari listed shareholding companies with publicly traded shares, the Group has
made an appropriation of 2.5% of its net profit to a state social fund.

Earnings per share

The Group presents basic and diluted earnings per share (“EPS”) data for its ordinary shares. Basic
EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company
by the weighted average number of ordinary shares outstanding during the year. Diluted earnings per
share adjusts the figures used in the determination of basic earnings per share to take into account the
effect of any dilutive potential ordinary shares.

Segment reporting

Segment results that are reported include items directly attributable to a segment as well as those that
can be allocated on a reasonable basis.

Tax

The Parent Company’s profits are exempt from income tax given its status as a Qatari listed company.

Foreign exchange difference

In preparing the financial statements of the Group, transactions in currencies other than the Group’s
functional currency (foreign currencies) are recognised at the rates of exchange prevailing at the dates
of the transactions. At the end of each reporting period, monetary items denominated in foreign
currencies are retranslated at the rates prevailing at that date. Non-monetary items carried at fair value
that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the
fair value was determined. Non-monetary items that are measured in terms of historical cost in a
foreign currency are not retranslated. Exchange differences on monetary items are recognised in profit
or loss in the period in which they arise except as otherwise stated in the Standards.

118 MEEZA
- 26 -
MEEZA QSTP-LLC (Public)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2023

4. CRITICAL JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Group’s accounting policies, which are described in Note 3, management is
required to make judgments, estimates and assumptions about the carrying amounts of assets and
liabilities that are not readily apparent from other sources. The estimates and associated assumptions
are based on historical experience and other factors that are considered to be relevant. Actual results
may differ from these estimates. The estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate
is revised if the revision affects only that period or in the period of the revision and future periods if
the revision affects both current and future periods.

4.1 Critical judgments in applying accounting policies

The preparation of the financial statements in compliance with IFRS requires the management to
make estimates and assumptions that affect the reported amounts of assets, liabilities, income and
expenses and disclosure of contingent assets and contingent liabilities. Future events may occur which
will cause the assumptions used in arriving at the estimates to change. The effects of any change in
estimates are reflected in the financial statements as they become reasonably determinable.

Judgments and estimates are continually evaluated and are based on historical experience and other
factors, including expectations of future events that are believed to be reasonable under the
circumstances.

Capitalisation of costs

Management determines whether the Group will recognise an asset from the costs incurred to fulfil a
contract and costs incurred to obtain a contract if the costs meet all the following criteria:

a) the costs relate directly to a contract or to an anticipated contract that the Group can specifically
identify;
b) the costs generate or enhance resources of the Group that will be used in satisfying performance
obligations in the future; and
c) the costs are expected to be recovered.

Such asset will be amortised on a systematic basis that is consistent with the transfer to the customer
of the goods or services to which the asset relates.

Judgment in determining the timing of satisfaction of performance obligations

The Group generally recognise revenue over time as it performs continuous transfer of control of
goods or services to the customers. Because customers simultaneously receives and consumes the
benefits provided and the control transfer takes place over time, revenue is also recognised based on
the extent of transfer/completion of transfer of each performance obligation. In determining the
method for measuring progress for these POs, we have considered the nature of these goods and
services as well as the nature of its performance.

For performance obligations satisfied at a point in time, the Group considers the general requirements
of control (i.e. direct the use of asset and obtain substantially all benefits) and the following non-
exhaustive list of indicators of transfer of control:

• Entity has present right to payment

• Customer has legal title
• Entity has transferred legal possession
• Customer has significant risk and rewards
• Customer has accepted the asset
- 27 -
MEEZA 119
 MEEZA QSTP-LLC (Public)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2023

4. CRITICAL JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

(CONTINUED)

4.1 Critical judgments in applying accounting policies (continued)

Judgment in determining the timing of satisfaction of performance obligations (continued)

In making its judgement, the Management considered the detailed criteria for the recognition of
revenue set out in IFRS 15 and, in particular, whether the Group has transferred control of the goods
to the customer. Following the detailed quantification of the Group’s liability in respect of
rectification work, and the agreed limitation on the customer’s ability to require further work or to
require replacement of the goods, the directors are satisfied that control has been transferred and that
recognition of the revenue in the current year is appropriate.

Significant judgements are made by management when concluding whether the Group is transacting
as an agent or a principal. The assessment is performed for each separate revenue stream in the Group.
The assessment requires an analysis of key indicators, specifically whether the Group:

• carries any inventory risk;

• has the primary responsibility for providing the goods or services to the customer;
• has the latitude to establish pricing; and
• bears the customer’s credit risk.

These indicators are used to determine whether the Group has exposure to the significant risks and
rewards associated with the sale of goods or rendering of services.

Business model assessment

Classification and measurement of financial assets depends on the results of the SPPI and the business
model test. The Group determines the business model at a level that reflects how groups of financial
assets are managed together to achieve a particular business objective. This assessment includes
judgement reflecting all relevant evidence including how the performance of the assets is evaluated
and their performance measured, the risks that affect the performance of the assets and how these are
managed and how the managers of the assets are compensated. The Group monitors financial assets
measured at amortised cost or fair value through other comprehensive income that are derecognised
prior to their maturity to understand the reason for their disposal and whether the reasons are
consistent with the objective of the business for which the asset was held. Monitoring is part of the
Group’s continuous assessment of whether the business model for which the remaining financial
assets are held continues to be appropriate and if it is not appropriate whether there has been a change
in business model and so a prospective change to the classification of those assets.

Significant increase in credit risk

An entity shall always measure the loss allowance at an amount equal to lifetime expected credit losses
for trade receivables or contract assets that result from transactions that are within the scope of IFRS 15,
and that do not contain a significant financing component in accordance with IFRS 15 (or when the entity
applies the practical expedient in accordance with paragraph 63 of IFRS 15.

120 MEEZA
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MEEZA QSTP-LLC (Public)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2023

4. CRITICAL JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

(CONTINUED)

4.1 Critical judgments in applying accounting policies (continued)

Judgment in identifying whether a contract includes a lease

The Group has entered into a contracts with lessors for the lease of land, data centre space and office
space.
Management has assessed whether or not the Group has contracted for the rights to substantially all
of the lease of land and data centre space and office space and whether the contracts contains a lease.

Management assessed that the Group have the right to obtain substantially all of the economic benefits
for the use of the assets. As stated, the Group has concluded that the contract contains a lease.

Determining the lease term

In determining the lease term, Management considers all facts and circumstances that create an
economic incentive to exercise an extension option, or not exercise a termination option. Extension
options (or periods after termination options) are only included in the lease term if the lease is
reasonably certain to be extended (or not terminated). Potential future cash outflows of have not been
included in the lease liability because it is not reasonably certain that the leases will be extended (or
not terminated). In addition, the carrying amount of lease liabilities is remeasured if there is a
modification, a change in the lease term, a change in the lease payments (e.g., changes to future
payments resulting from a change in an index or rate used to determine such lease payments) or a
change in the assessment of an option to purchase the underlying asset.

The assessment is reviewed if a significant event or a significant change in circumstances occurs

which affects this assessment and that is within the control of the lessee.

Discounting of lease payments

The lease payments are discounted using the Group’s incremental borrowing rate (“IBR”).
Management has applied judgments and estimates to determine the IBR at the commencement of the
lease.

Going concern

The Group’s management has made an assessment of the Group’s ability to continue as a going
concern and is satisfied that the Group has the resources to continue in business for the foreseeable
future. Furthermore, the management is not aware of any material uncertainties that may cast
significant doubt upon the Group’s ability to continue a going concern. Therefore, the financial
statements are prepared on a going concern basis.

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MEEZA 121
 MEEZA QSTP-LLC (Public)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2023

4. CRITICAL JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

(CONTINUED)

4.2 Key sources of estimation uncertainty

Estimates

The key assumptions concerning the future and other sources of estimation uncertainty at the financial
position date that have a significant risk of causing a material adjustment to the carrying amounts of
assets and liabilities within the next financial year are discussed below:

Impairment of tangible assets and useful lives

The Group’s management tests annually whether there is an indication that tangible assets (including
capital work in progress) have suffered impairment in accordance with accounting policies stated in
Note 3.

Estimated useful lives of property, plant and equipment

The costs of items of property, plant and equipment are depreciated on a systematic basis over the
estimated useful lives of the assets. Management has determined the estimated useful lives of each
asset and/ or category of assets based on the following factors:

• Expected usage of the assets,

• Expected physical wear and tear, which depends on operational and environmental factors; and
• Legal or similar limits on the use of the assets.

Management has not made estimates of residual values for any items of property, plant and equipment
at the end of their useful lives as these have been deemed to be insignificant.

Calculation of loss allowance

An estimate of the collectible amount of trade receivables and due from related parties is made when
collection of the full amount is no longer probable. For individually significant amounts, this
estimation is performed on an individual basis. Amounts which are not individually significant, but
which are past due, are assessed collectively and a provision applied according to the length of time
the amount has been due.

When measuring ECL the Group uses reasonable and supportable forward looking information,
which is based on assumptions for the future movement of different economic drivers and how these
drivers will affect each other. Loss given default is an estimate of the loss arising on default. It is
based on the difference between the contractual cash flows due and those that the lender would expect
to receive, taking into account cash flows from collateral and integral credit enhancements.
Probability of default constitutes a key input in measuring ECL. Probability of default is an estimate
of the likelihood of default over a given time horizon, the calculation of which includes historical
data, assumptions and expectations of future conditions.

122 MEEZA
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MEEZA QSTP-LLC (Public)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2023

4. CRITICAL JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

(CONTINUED)

4.2 Key sources of estimation uncertainty (continued)

Estimates (continued)

Calculation of loss allowance (continued)

The sensitivity of ECL on the profit of the Group could be presented as follows:

Increase/(decrease) Effect on
in basis points profit (QR)
December 31, 2023
Expected Credit Losses 50 7,993
(50) (7,993)

December 31, 2022

Expected Credit Losses 50 5,298
(50) (5,298)

Assessment as to whether the right-of-use assets is impaired

Management assessed that there are no events or changes in circumstances that indicate that the
carrying amount of the right-of-use assets is impaired. Impairment indicators factored in the
management’s assessment are, but not limited to, the following: Physical condition of the right-of-
use assets, adverse effect on the Company’s performance impacting the usage of the right-of-use
assets, future commitments needed to support the function of the right-of-use assets, and any
significant drop in the external market value of the right-of-use assets.

MEEZA 123
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 MEEZA QSTP-LLC (Public)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2023

5. PROPERTY, PLANT AND EQUIPMENT

Data Office
centre and Buildings and furniture Assets
network leasehold & other under Total
assets improvements equipment construction
QR’000 QR’000 QR’000 QR’000 QR’000

Cost:
At January 1, 2022 1,297,180 2,070 9,511 8,312 1,317,073
Additions -- -- -- 53,811 53,811
Transfer 45,886 -- 2,766 (48,652) --
At January 1, 2023 1,343,066 2,070 12,277 13,471 1,370,884
Additions -- -- -- 14,433 14,433
Transfers 12,016 7,517 2,422 (21,955) --
At December 31, 2023 1,355,082 9,587 14,699 5,949 1,385,317

Accumulated
depreciation:
At January 1, 2022 800,926 1,996 9,299 -- 812,221
Depreciation expense 49,779 36 355 -- 50,170
At January 1, 2023 850,705 2,032 9,654 -- 862,391
Depreciation expense 44,602 1,540 1,504 -- 47,646
At December 31, 2023 895,307 3,572 11,158 -- 910,037

Carrying amount:
At December 31, 2023 459,775 6,015 3,541 5,949 475,280
At December 31, 2022 492,361 38 2,623 13,471 508,493

Depreciation rate 2023 4% - 33% 5% - 20% 33% - 20%

Depreciation rate 2022 4% - 33% 5% - 20% 33% - 20%

Depreciation expense of QR 44.60 million (2022: QR 49.78 million) has been charged in cost of sales,
QR 3.04 million (2022: QR 0.39 million) in general and administrative expenses.

124 MEEZA
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MEEZA QSTP-LLC (Public)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2023

6. RIGHT-OF-USE ASSETS

Group as a Lessee

The Group leases several assets including land and data centre building, and office space. The average
lease term for land ranges from 20 to 30 years while the office space is for 7 years.

The Group’s obligations are secured by the lessor’s title to the leased assets for such leases.

Right-of-use assets
Land and data
centre Office
building space Total
QR’000 QR’000 QR’000

January 1, 2022 133,937 3,201 137,138

Additions 12,269 12,803 25,072
Depreciation expense (Notes 21, 22) (7,891) (2,378) (10,269)
December 31, 2022 138,315 13,626 151,941
Additions 2,244 -- 2,244
Depreciation expense (Notes 21, 22) (8,576) (2,378) (10,954)
December 31, 2023 131,983 11,248 143,231

Amounts recognised in consolidated statement of profit or loss:

2023 2022
QR’000 QR’000

Depreciation of right-of-use assets 10,954 10,269

Interest expense on lease liabilities 8,422 8,645
Expense relating to short-term leases 1,006 1,798
20,382 20,712

As at December 31, 2023, the Group is committed to Nil (2022: Nil) short-term leases.

7. CONTRACT ASSET

2023 2022
QR’000 QR’000

Third parties 82,423 10,872

Related parties 49,287 18,495
131,710 29,367

2023 2022
QR’000 QR’000

Non-current contract asset 11,162 --

Current contract asset 120,548 29,367
131,710 29,367

MEEZA 125
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 MEEZA QSTP-LLC (Public)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2023

7. CONTRACT ASSET (CONTINUED)

The Group measures the loss allowance for contract assets at an amount equal to lifetime ECL. The
expected credit losses on contract assets are estimated using a provision matrix by reference to past
default experience of the customers and an analysis of the customer’s current financial position,
adjusted for factors that are specific to the debtors, general economic conditions of the industry in
which the debtors operate and an assessment of both the current as well as the forecast direction of
conditions at the reporting date. There has been no change in the estimation techniques or significant
assumptions made during the current reporting period.

8. OTHER NON-CURRENT ASSETS

2023 2022
QR’000 QR’000

Security deposit 1,137 1,143

Others 3,310 10,959
4,447 12,102

9. PREPAYMENTS AND OTHER ASSETS

2023 2022
QR’000 QR’000

Prepayments 12,041 18,655

Advance to suppliers (i) 3,379 6,704
Other debit balances (ii) 3,334 7,678
18,754 33,037

(i) The balance pertains to the advance payments made to the vendors for the costs of the services
contracts.
(ii) The 2023 balance includes QR 0.22 million due from the founding shareholders (2022: QR
4.78 million) representing amounts paid by the Company on behalf of the founding
shareholders in connection with the listing process.

10. TRADE AND OTHER RECEIVABLES

2023 2022
QR’000 QR’000

Trade receivables 129,005 126,567

Less: Loss allowance (6,027) )5,256)
122,978 121,311

The Group measures the loss allowance for trade receivables at an amount equal to lifetime ECL. The
expected credit losses on trade receivables are estimated using a provision matrix by reference to past
default experience of the customers and an analysis of the customer’s current financial position,
adjusted for factors that are specific to the debtors, general economic conditions of the industry in
which the debtors operate and an assessment of both the current as well as the forecast direction of
conditions at the reporting date. There has been no change in the estimation techniques or significant
assumptions made during the current reporting period.

126 MEEZA
- 34 -
MEEZA QSTP-LLC (Public)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2023

10. TRADE AND OTHER RECEIVABLES (CONTINUED)

As at December 31, the ageing of account receivables is as follows:

Expected credit
loss rate 0% 6% 0% 12% 5%
Less than 90 91 to 180 181 to 365 More than
December 31, 2023 Days Days days 365 days Total
QR’000 QR’000 QR’000 QR’000 QR’000
Estimated total gross
carrying amount at
default 39,694 29,871 23,754 35,686 129,005
Lifetime ECL (26) (1,668) (98) (4,235) (6,027)
Net receivable 39,668 28,203 23,656 31,451 122,978

Expected credit loss

rate 0% 1% 2% 13% 4%
Less than 90 91 to 180 181 to 365 More than 365
December 31, 2022 Days Days days days Total
QR’000 QR’000 QR’000 QR’000 QR’000

Estimated total gross

carrying amount at
default 46,318 18,172 26,015 36,062 126,567
Lifetime ECL (18) (163) (432) (4,643) (5,256)
Net receivable 46,300 18,009 25,583 31,419 121,311

The following table shows the movement in lifetime ECL that has been recognised for trade
receivables in accordance with the simplified approach set out in IFRS 9, all collectively assessed:

2023 2022
QR’000 QR’000

Balance as at January 1, 5,256 5,525

(Recovery)/provision during the year 771 (269)
Balance as at December 31, 6,027 5,256

11. CASH AND CASH EQUIVALENTS

Cash and cash equivalents at the end of the financial year as shown in the consolidated statement of
cash flows can be reconciled to the related items in the consolidated statement of financial position
as follows:

2023 2022
QR’000 QR’000

Cash on hand 5 5
Bank balances 21,370 43,400
Time deposits 228,600 160,000
Cash and cash equivalents 249,975 203,405

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MEEZA 127
 MEEZA QSTP-LLC (Public)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2023

11. CASH AND CASH EQUIVALENTS (CONTINUED)

Balances with banks are assessed to have low credit risk of default since these banks are highly
regulated by the Qatar Central Bank. Accordingly, Management estimates the loss allowance on
balances with banks at the end of the reporting period at an amount equal to 12 month ECL. None of
the balances with banks at the end of the reporting period are past due, and taking into account the
historical default experience and the current credit ratings of the bank, the Management has assessed
that there is no impairment, and hence have not recorded any loss allowances on these balances.

Time deposits generated interest income of QR 12.80 million for the year ended December 31, 2023
recorded under interest income in the statement of profit or loss and other comprehensive income
(QR 3.69 million for the year ended December 31, 2022).

12. SHARE CAPITAL

2023 2022
QR’000 QR’000
Authorised, issued and fully paid
648,980,000 shares of nominal value 1 QR each (2022:
648,980 shares of nominal value 1,000 QR each) 648,980 648,980

In accordance with the amendment of the QSTP company regulations dated October 18, 2022, and
unanimous shareholder resolution, the Company reduced the nominal value per share to QR 1 during
the year as required by the QFMA for entities listed on the QSE.

As at 31 December 2023, Qatar Foundation for Education, Science and Community Development
and Ooredoo Q.P.S.C hold 259,592,006 and 64,898,001 shares, respectively, constituting 50% of the
total shareholding.

13. STATUTORY RESERVE AND SOCIAL AND SPORTS FUND

Statutory Reserve:
As required by the Company’s Articles of Association, 10% of the profit for the year is to be
transferred to the statutory reserve until the reserve reaches a minimum of 50% of the paid up share
capital. As at December 31, 2023, the statutory reserve amounted QR 14.54 million (2022: QR 8.52
million). This reserve is not available for distribution.

Social and Sports Fund:

According to Qatar Law No. 13 for the year 2008 and the related clarifications issued in January 2010
the Group is required to contribute 2.5% of annual net profits of the Group to the State Social and
Sports Fund.

The clarification relating to Law No. 13 of 2008 requires the payable amount to be recognised as an
appropriation of profit directly in the consolidated statement of changes in equity.

During the year ended December 31, 2023, the Group appropriated QR 1.51 million of the profit to
Social and Sports Fund contribution (Note 17).

128 MEEZA
- 36 -
MEEZA QSTP-LLC (Public)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2023

14. EMPLOYEES’ END OF SERVICE BENEFITS

Movement in the employees’ end of service benefits were as follows:

2023 2022
QR’000 QR’000

Balance as at January 1, 10,821 9,666

Expense for the year 3,368 3,263
Payments during the year (2,938) (2,108)
Balance as at December 31, 11,251 10,821

15. LEASE LIABILITIES

2023 2022
QR’000 QR’000

Balance as at January 1, 164,074 144,024

Additions/modifications 2,244 25,072
Accretion of finance cost 8,422 8,645
Lease payments (16,410) (13,667)
Balance as at December 31, 158,330 164,074

Presented in the consolidated financial position as follows:

2023 2022
QR’000 QR’000

Non-current lease liabilities 148,396 155,791

Current lease liabilities 9,934 8,283
158,330 164,074
2023 2022
QR’000 QR’000

Maturity analysis
Not later than 1 year 9,934 8,283
Later than 1 year and not later than 5 years 33,712 33,666
Later than 5 years 114,684 122,125
158,330 164,074

The Group does not face a significant liquidity risk with regard to its liabilities. Lease liabilities are
monitored within the Group’s treasury function.

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MEEZA 129
 MEEZA QSTP-LLC (Public)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2023

16. BORROWINGS
MEEZA QSTP-LLC (Public) 2023 2022
QR’000 QR’000
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Non-current borrowings 121,597 134,858
For the year ended December 31, 2023
Current borrowings 13,404 13,548
135,001 148,406
16. BORROWINGS (CONTINUED)
The Group entered into a Facility Agreement with Dukhan Bank for QR 148.4 million on December
The Group entered into a Facility Agreement with Dukhan Bank for QR 148.4 million on December 10,
10, 2020 (“the facility”) at Qatar Market Lending Rate (QMRL) subject to a minimum of 3.5% per
2020
annum,(“the facility”)
payable at Qatar
quarterly. The Market Lending
facility Rate (QMRL)
is repayable subject
in 31 equal to a minimum
quarterly instalmentsofof
3.5%
QR per
3.35annum,
payable
million starting March 2023 and one final bullet payment of QR 44.5 million (30% of facility amount)starting
quarterly. The facility is repayable in 31 equal quarterly instalments of QR 3.35 million
March 2023 and
in December [Link] bullet
facility is payment
secured byoftheQRassignment
44.5 million (30%
of the fullofcontract
facilityvalues
amount) in December
of each of
2030. The facility is secured by the assignment of the full contract
MV2 & MV4 Colocation and Data Centre Leases with Microsoft QSTP LLC (“Microsoft”) and values of each of MV2 & MV4
Colocation and Data Centre Leases with Microsoft QSTP LLC
Ministry of Communications and Information Technology (“MCIT”) (previously “Ministry of(“Microsoft”) and Ministry of
Communications and Information Technology
Transport and Communications”) favouring Dukhan Bank. (“MCIT”) (previously “Ministry of Transport and
Communications”) favouring Dukhan Bank.
Borrowing finance costs incurred and recognized in the consolidated statement of profit or loss during
Borrowing financetocosts
the year amounted incurred
QR 8.62 millionand(2022:
recognized in million).
QR 5.67 the consolidated statement of profit or loss during
the year amounted to QR 8.62 million (2022: QR 5.67 million).
17. TRADE AND OTHER PAYABLES
17. TRADE AND OTHER PAYABLES
2023 2022
QR’0002023 QR’0002022
QR’000 QR’000
Trade payables 20,093 25,827
Trade payables 20,093 25,827
Accrued expenses (i) 79,626 78,139
Accrued expenses (i) 79,626 78,139
Retention
Retention payable
payable 4,4614,461 7,4587,458
Advances fromcustomer
Advances from customer 4,3034,303 4,9244,924
Payable to
Payable to social
socialand
andsports
sportsfund
fund 1,5051,505 -- --
Other current liabilities
Other current liabilities 302 302 70 70
110,290 116,418
110,290 116,418
(i) AsatatDecember
(i) As December31,31, 2023,
2023, thethe balance
balance includes
includes accrued
accrued assets
assets of1.96
of QR QR million
1.96 million
(2022:(2022: QR 20.92
QR 20.92
million).
million).

18. DIVIDEND
DIVIDEND

On May
The 15,of2023,
Board the Board
Directors of Directors
has proposed cashhad proposed
dividend a cash dividend
distribution of QRof 85%per
0.081 of retained
share forearnings
the year ended
amounting
31 DecemberQR2023.
18.43The
million. This was
proposed finalsubsequently
dividend forapproved by the 31
the year ended shareholders
Decemberduring the Annual
2023 will be submitted
General Assembly held on May 18, 2023 and payment
for formal approval at the Annual General Meeting. was made on June 15, 2023.

TheMay
On Board15,
of 2023,
Directors
the has proposed
Board a cash dividend
of Directors of QRa0.081
had proposed cash per nominal
dividend of share
85% ofvalue of QRearnings
retained 1
each for the year ended 31 December 2023. The proposed dividend is subject to approval of the
amounting QR 18.43 million. This was subsequently approved by the shareholders during the Annual
shareholders
General duringheld
Assembly the Annual
on MayGeneral Assembly
18, 2023 on March
and payment was 4, 2024.
made on June 15, 2023.

130 MEEZA
- 38 -
MEEZA QSTP-LLC (Public)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2023

19. RELATED PARTY DISCLOSURES (CONTINUED)

Related parties, as defined in International Accounting Standard 24: Related Party Disclosures,
include associate companies, major shareholders, directors and other key management personnel of
the Group, and entities controlled, jointly controlled or significantly influenced by such parties.

a) Trading transactions

The following are the transactions with related parties:

2023 2022
QR’000 QR’000
Sale of goods and services:
Shareholders 75,438 63,679
Other affiliated companies 60,888 58,763
136,326 122,442

b) Balances arising from sales of goods/services

The following are the balances arising on transactions with related parties:

2023 2022
QR’000 QR’000

Due from related parties:

Shareholders 31,872 69,115
Other affiliates 21,806 31,310
53,678 100,425
Provision for loss allowance (9,959) (8,530)
At December 31 43,719 91,895

2023 2022
QR’000 QR’000

Due to related parties:

Shareholders 5,456 1,369
Other affiliates 737 917
At December 31 6,193 2,286

The due from related parties arise mainly from sale of goods and services transactions. The
receivables are unsecured in nature and earn no interest.

The Group measures the loss allowance for due form related parties at an amount equal to lifetime
ECL. The expected credit losses on due from related parties are estimated using a provision matrix
by reference to past default experience of the debtor and an analysis of the debtor’s current financial
position, adjusted for factors that are specific to the debtors, general economic conditions of the
industry in which the debtors operate and an assessment of both the current as well as the forecast
direction of conditions at the reporting date.

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MEEZA 131
 MEEZA QSTP-LLC (Public)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2023

19. RELATED PARTY DISCLOSURES (CONTINUED)

The following table shows the movement in lifetime ECL that has been recognised for due from
related parties in accordance with the simplified approach set out in IFRS 9 all collectively assessed:

2023 2022
QR’000 QR’000

Balance as at January 1 8,530 8,772

Provision (Recovery) during the year 1,429 (242)
Balance as at December 31 9,959 8,530

c) Compensation of key management personnel

The remuneration of directors and other members of key management during the year was as follows:

2023 2022
QR’000 QR’000

Short-term benefits 12,994 13,377

Long-term benefits -- 88
12,994 13,465

20. REVENUE

The Group derives its revenue from contracts with customers for the transfer of goods and services
over time and at a point in time in the following major revenue streams.

2023 2022
QR’000 QR’000

Revenue – at a point of time:

Solutions services 113,022 56,691
Revenue – over time:
Data centre and managed services 248,102 231,220
Workplace services 15,016 16,888
Solutions services 21,736 21,736
Master system integrator services 8,188 14,898
Cloud services 16,853 11,444
422,917 352,877

The current portion of the deferred revenue referred as “contract liability” in the consolidated
statement of financial position amounting to QR 16.10 million (2022: QR 3.16 million) is expected
to be recognised as revenue during 2024. The non-current portion of contract liability is expected to
be recognized as revenue at least after 12-months from the reporting date.

The unsatisfied performance obligation as at reporting date amounted to QR 1,240.59 million (2022:
QR 1,282.35 million).

132 MEEZA
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MEEZA QSTP-LLC (Public)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2023

21. COST OF SALES

2023 2022
QR’000 QR’000

Software, hardware and license cost 120,752 76,443

Outsourcing and third party cost 58,761 54,190
Depreciation of property, plant and equipment (Note 5) 44,602 49,779
Salaries, wages and other benefits 39,532 37,377
Data centre management costs 35,892 20,409
Depreciation of right-of-use assets (Note 6) 8,576 7,891
Others 82 123
308,197 246,212

22. GENERAL AND ADMINISTRATIVE EXPENSES

2023 2022
QR’000 QR’000

Staff costs and allowances 31,736 30,833

Depreciation of property, plant and equipment (Note 5) 3,044 391
Depreciation of right-of-use assets (Note 6) 2,378 2,378
Loss allowance/(Recovery) (Notes 10 and 19) 2,200 (511)
Professional fees (i) 1,699 2,915
Insurance 1,584 1,146
Directors’ remuneration 1,022 631
Rent 1,006 1,798
Office expenses 910 540
Marketing costs 358 1,083
Others 3,909 1,883
49,846 43,087

(i) Professional fees include audit and assurance services fee of QR 0.49 million (2022: QR 0.14
million) and other services fee of QR 0.02 million (2022: QR 0.02 million).

23. COMMITMENTS AND CONTINGENT LIABILITIES

2023 2022
QR’000 QR’000

Performance guarantee 77,876 59,705

Tender and other guarantees 35,629 43,228

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MEEZA 133
 MEEZA QSTP-LLC (Public)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2023

24. FINANCIAL INSTRUMENTS

Financial instruments represent any contractual agreement that creates a financial asset, financial
liability or an equity instrument.

(a) Fair value measurements

Financial assets consist of bank balances, due from related parties and trade receivable. Financial
liabilities consist of trade payables, lease liabilities and borrowings.

Management believes that the fair values of financial instruments are not materially different from
their carrying values largely due to the short-term maturities of these instruments or are regularly
repriced at market rates.

(b) Reconciliation of liabilities arising from financing activities

The below table details changes in the Group’s liabilities arising from financing activities, including
both cash and non-cash changes.

At
January 1, Financing Non-cash At December
2023 cash flows changes 31, 2023
QR’000 QR’000 QR’000 QR’000

Dividend paid -- (18,434) -- (18,434)

Lease liabilities 164,074 (16,410) 10,666 158,330
Borrowings 148,406 (13,405) -- 135,001
312,480 (48,249) 10,666 274,897

At
January 1, Financing Non-cash At December
2022 cash flows changes 31, 2022
QR’000 QR’000 QR’000 QR’000

Dividend paid -- (66,000) -- (66,000)

Lease liabilities 144,024 (13,667) 33,717 164,074
Borrowings 148,406 -- -- 148,406
292,430 (79,667) 33,717 246,480

25. CAPITAL MANAGEMENT

The Group manages its capital to ensure that the Group will be able to continue as a going concern
while maximizing the return to the shareholders.

The capital structure of the Group comprises of capital, reserves, and retained earnings. The Company
sets the amount of capital in proportion to risk. The Company manages its capital structure and makes
adjustments to it in the light of changes in economic conditions and the risk characteristics of the
underlying assets.

134 MEEZA
- 42 -
MEEZA QSTP-LLC (Public)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2023

26. FINANCIAL RISK MANAGEMENT

Market risk management

Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates,
will affect the Group’s income or the value of its holdings of financial instruments. The objective of
market risk management is to manage and control market risk exposures within acceptable
parameters, while optimizing the return. The Group’s activities expose it primarily to the financial
risks of changes in foreign currency risks and interest rate risks.

Foreign currency risk management

The Group undertakes certain transactions denominated in foreign currencies, consequently,

exposures to exchange rate fluctuations arise. Exchange rate exposures are managed by entering the
transactions substantially in Qatari Riyal (QR) and United States Dollar (USD), which is pegged to
Qatari riyal.

Interest rate risk management

The Group’s exposure to interest rate risk is limited as it borrows and deposits funds at market rates.
The loan appearing in the books of the Company (Note 16) is carried at floating rate and the borrowing
finance cost incurred during 2023 is QR 8.62 million (2022: QR 5.67 million). Interest income during
2023 is QR 13.04 million (2022: QR 3.69 million).

Credit risk management

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in
financial loss to the Group. As at December 31, 2023, the Group’s maximum exposure to credit risk
without taking into account any collateral held or other credit enhancements, which will cause a
financial loss to the Group due to failure to discharge an obligation by the counterparties and financial
guarantees provided by the Group arises from the carrying amount of the respective recognised
financial assets as stated in the consolidated statement of financial position.

In order to minimise credit risk, the Group has tasked its management to develop and maintain the
Group’s credit risk gradings to categorise exposures according to their degree of risk of default.

The credit rating information is supplied by independent rating agencies where available and, if not
available, the management uses other publicly available financial information and the Group’s own
trading records to rate its major customers and other debtors. The Group’s exposure and the credit
ratings of its counterparties are continuously monitored and the aggregate value of transactions
concluded is spread amongst approved counterparties.

Balances with banks are assessed to have low credit risk of default since these banks are highly
regulated by the central bank. Accordingly, management of the Group estimates the loss allowance
on balances with banks at the end of the reporting period at an amount equal to 12 month ECL. None
of the balances with banks at the end of the reporting period are past due, and considering the
historical default experience and the current credit ratings of the banks, the management of the Group
have assessed that there is no impairment, and hence have not recorded any loss allowances on these
balances.

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MEEZA 135
 MEEZA QSTP-LLC (Public)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2023

26. FINANCIAL RISK MANAGEMENT (CONTINUED)

Credit risk management (continued)

The Group’s current credit risk grading framework comprises the following categories:

Category Description Basis for recognising

Performing The counterparty has a low risk of default and does not 12-month ECL
have any past-due amounts.
Doubtful When there has been a significant increase in credit risk Lifetime ECL – not
since initial recognition. credit impaired
In default When there is evidence indicating the asset is credit- Lifetime ECL –
impaired. credit-impaired
Write-off There is evidence indicating that there is a severe financial Amount is written off
difficulty and the Group has no realistic prospect of
recovery.

The tables below detail the credit quality of the Group’s financial assets by credit risk rating grades:

12-month or
lifetime Gross Loss Net carrying
December 31, 2023 Note ECL carrying allowance Amount
QR ’000 QR ’000 QR ’000

Bank balances 11 12-month ECL 249,975 -- 249,975

Trade receivables 10 Lifetime ECL 129,005 (6,027) 122,978
Contract asset 7 Lifetime ECL 131,710 -- 131,710
Due from related
parties 19 Lifetime ECL 53,678 (9,959) 43,719

12-month or
lifetime Loss Net carrying
December 31, 2022 Note ECL Gross carrying allowance Amount
QR ’000 QR ’000 QR ’000

Bank balances 11 12-month ECL 203,405 -- 203,405

Trade receivables 10 Lifetime ECL 126,567 (5,256) 121,311
Contract asset 7 Lifetime ECL 29,367 -- 29,367
Due from related
parties 19 Lifetime ECL 100,425 (8,530) 91,895

Liquidity risk management

Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall
due. The Group’s approach to managing liquidity is to ensure, as far as possible, that it will always
have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions,
without incurring unacceptable losses or risking damage to the Group’s reputation.

136 MEEZA
- 44 -
MEEZA QSTP-LLC (Public)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2023

26. FINANCIAL RISK MANAGEMENT (CONTINUED)

Liquidity risk management (continued)

The following tables detail the Group's remaining contractual maturity for its non-derivative financial
liabilities with agreed repayment periods. The amounts disclosed in the table are the contractual
discounted cash flows. Balances due within 12 months are equal to their carrying balances as the
impact of discounting is not significant.

At December 31, Less than Between Between Over 5

2023 1 year 1 and 2 years 2 and 5 years years Total
QR’000 QR’000 QR’000 QR’000 QR’000

Trade payables 20,093 -- -- -- 20,093

Due to related parties 6,193 -- -- -- 6,193
Lease liabilities 9,934 9,440 24,272 114,684 158,330
Borrowings 13,404 13,404 40,212 67,981 135,001
49,624 22,844 64,484 182,665 319,617

At December 31, Less than Between Between Over 5

2022 1 year 1 and 2 years 2 and 5 years years Total
QR’000 QR’000 QR’000 QR’000 QR’000

Trade payables 25,827 -- -- -- 25,827

Due to related parties 2,286 -- -- -- 2,286
Lease liabilities 8,283 8,619 25,047 122,125 164,074
Borrowings 13,548 13,548 40,644 80,666 148,406
49,944 22,167 65,691 202,791 340,593

The following table details the Group's expected maturity for its non-derivative financial assets. The
table has been drawn up based on the undiscounted contractual maturities of the financial assets. The
inclusion of information on non-derivative financial assets is necessary in order to understand the
Group's liquidity risk management as the liquidity is managed on a net asset and liability basis.
Balances due within 12 months equal their carrying balances as the impact of discounting is not
significant.

Less than Between

At December 31, 2023 1 year 1 and 2 years
QR’000 QR’000
Trade and other receivables 122,978 --
Due from related parties 43,719 --
166,697 --
Less than Between
At December 31, 2022 1 year 1 and 2 years
QR’000 QR’000
Trade and other receivables 121,311 --
Due from related parties 91,895 --
213,206 --

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MEEZA 137
 MEEZA QSTP-LLC (Public)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 2023

27. BASIC AND DILUTED EARNINGS PER SHARE (IN QR)

Basic and diluted earnings per share (EPS) is calculated by dividing the profit for the year attributable
to equity holders of the parent by weighted average number of shares outstanding during the year.

The following reflects the income and share data used in basic and diluted earnings per share
computation:

2023 2022

Profit attributable to the equity holders for the year (“in

thousands”) 60,216 52,126
Weighted average number of shares outstanding during
the year (“in thousands”) (i) 648,980 648,980
Basic and diluted earnings per share (expressed in QR
per share) 0.09 0.08

The figures for basic and diluted earnings per share are the same, as the Group has not issued any
instruments that would impact the earnings per share when exercised.

(i) The actual number of shares as at December 31, 2022 was 648,980 with nominal value of QR
1,000 each. This number of shares has been adjusted as per the requirement of IAS-33 with
reference to a change in nominal value of share to calculate the weighted average number of shares
outstanding during the year so earnings per share is comparable. Refer to note 12 for change in
nominal value during the year ended December 31, 2023.

28. SUBSEQUENT EVENT

There is no subsequent event except as disclosed in Note 18, that may have an impact in the financial
statements.

29. SEGMENT INFORMATION

For management purposes, the Group is organised into business units based on their products and
services and has one reportable operating segment which is the IT segment from its contracts of Data
Centre, Managed Services, Cloud Services, Master Service Integrator Services, Workplace Services
and Solution Services.

Geographically, the Group only operates in the State of Qatar.

- 46 -
138 MEEZA
MEEZA 139
 Disclaimer
This document constitutes the annual report of MEEZA
QSTP LLC – Public (the “Company”) for the financial
year ended 31 December 2023.

In the discussion of the Company’s reported

consolidated financial position, consolidated operating
results and consolidated cash flows for the year ended
31 December 2022, the material is presented to
provide readers with additional financial information
that is regularly reviewed by management. However,
this additional information is not uniformly defined by
all companies, including those in MEEZA’s industry.
Accordingly, it may not be comparable with similarly
named measures and disclosures by other companies.
Statements contained in this report that are not historical
facts are based on current expectations, estimates,
projections, opinions and beliefs of the Company as at
the date of this report, and there can be no assurance
that future results or events will be consistent with any
such expectations, estimates, projections, opinions
and beliefs. Such statements involve known and
unknown risks, uncertainties and other factors, and
reliance should not be placed thereon. In addition, this
presentation may contain “forward-looking statements”.
Actual events or results or the actual performance of
the Company may differ materially from those reflected
or contemplated in such forward-looking statements.
MEEZA, the MEEZA logo and any and all MEEZA product
and services names are trademarks of the Company.
Other product and Company names mentioned herein
may be the trademarks of their respective owners.

140 MEEZA
Glossary

CAPEX Capital Expenditure

DC Data Center

Earnings before interest, tax,

EBITDA
depreciation and amortization

FY Financial year

Internal Controls over Financial

ICOFR
Reporting
Information communications
ICT
technology

MV MEEZA vault

NaaS Network as a Service

Cash and cash equivalents less

Net cash
long and short term borrowings

QFMA Qatar Financial Markets

QSE Qatar Stock Exchange

QSTP Qatar Science and Technology

Return on capital employed

calculated as the sum of Net
ROCE Profit and Borrowing costs
divided by the average sum of
Equity and Borrowings

MEEZA 141
142 MEEZA