35 Statutory Reserve

Statutory reserve

In line with the provisions of the UAE Federal Commercial Companies Law No. 2 of 2015, and the Company’s Articles of Association, the Company is required to transfer annually to a statutory reserve account an amount equivalent to 10% of its profit, until such reserve reaches 50% of the share capital of the Company.  During the year the Group has transferred AED 1,562 thousand to the reserve (2020: AED 1,397 thousand). The statutory reserve is not available for distribution.