REGIONAL WRAP UP REPORT 2008

REGIONAL WRAP UP REPORT 2008

February 19th, 2009

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19th February 2009 TS REPORT

Table Of Contents

Introduction .................................................................................................................5 Regional Markets ........................................................................................................6

Saudi Arabia (KSA) ........................................................................................................................ 6 Economic Snapshot ..................................................................................................................... 6 Saudi Stock Exchange - Tadawul................................................................................................ 7 Major News of 2008.................................................................................................................... 8 New Listing- 2008/ TASI.......................................................................................................... 18

Kuwait ........................................................................................................................................... 19 Economic Snapshot ................................................................................................................... 19 Kuwait Stock Exchange ............................................................................................................ 21 Major News of 2008.................................................................................................................. 22 New listing- 2008 / KSE ........................................................................................................... 40

United Arab Emirates.................................................................................................................... 41 Economic Snapshot ................................................................................................................... 41 Dubai – Economic Snapshot ..................................................................................................... 43 Dubai Financial Market - DFM................................................................................................. 44 Major News of 2008.................................................................................................................. 45 New Listings- 2008 / DFM ....................................................................................................... 50 NASDAQ Dubai ....................................................................................................................... 51 Abu Dhabi Economic Snapshot ................................................................................................ 51 Abu Dhabi Exchange- ADX ..................................................................................................... 52 Major News of 2008.................................................................................................................. 54 New Listings- 2008 / ADX ....................................................................................................... 59

Qatar .............................................................................................................................................. 60 Economic Snapshot ................................................................................................................... 60 Doha Securities Market – DSM ................................................................................................ 61 Major News – 2008 ................................................................................................................... 62 New Listing – 2008 / DSM ....................................................................................................... 67

Bahrain .......................................................................................................................................... 68 Economic Snapshot ................................................................................................................... 68 Bahrain Stock Exchange - BSE................................................................................................. 69 Major news- 2008...................................................................................................................... 70 New Listing – 2008/ BSE.......................................................................................................... 74

Oman ............................................................................................................................................. 75 Economic Snapshot ................................................................................................................... 75 Muscat Securities Market – MSM ............................................................................................ 77 Major News- 2008..................................................................................................................... 78 New Listings – 2008/ MSM ...................................................................................................... 84

Egypt ............................................................................................................................................. 85 Economic Snapshot ................................................................................................................... 85 Egyptian Exchange – CASE 30 ................................................................................................ 88

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Major News- 2008..................................................................................................................... 89 New Listing – 2008 / CASE.................................................................................................... 101

Palestine ...................................................................................................................................... 102 Economic Snapshot ................................................................................................................. 102 Palestine Securities Exchange................................................................................................. 102 Major News- 2008................................................................................................................... 103 New Listing – 2008 / PSE ....................................................................................................... 104

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Local and Regional Markets Performance

Country Market 2006 Closing 2007 Closing 2007-2006 Change 2008 Closing 2008-2007

Change

Jordan Amman Stock Exchange 3,013.66 3,674.96 21.94% 2,758.44 -24.94%

Saudi Arabia Saudi Stock Exchange (Tadawul) 7,933.29 11,175.96 40.87% 4,802.99 -57.02%

Kuwait Kuwait Stock Exchange 10,067.40 12,558.90 24.75% 7,782.60 -38.03%

UAE Dubai Financial Market 4,127.33 5,931.95 43.72% 1,636.29 -72.42%

UAE Abu Dhabi Securities Exchange 2,999.66 4,551.80 51.74% 2,390.01 -47.49%

Qatar Doha Securities Market 7,133.00 9,580.45 34.31% 6,886.12 -28.12%

Bahrain Bahrain Stock Exchange 2,217.58 2,755.27 24.25% 1,804.07 -34.52%

Oman Muscat Securities Market 5,581.57 9,035.46 61.88% 5,441.12 -39.78%

Egypt The Egyptian Exchange (CASE 30) 6,973.41 10,549.74 51.29% 4,596.49 -56.43%

Palestine Palestine Securities Exchange 605.00 527.26 -12.85% 441.66 -16.23%

21.9%

40.9%

24.7%

51.7%

24.2%

51.3%-39.8%

-56.4%

34.3%

-12.8%

43.7%

61.9%

-28.1%

-38.0%

-57.0%

-24.9%

-16.2%

-34.5%

-72.4%

-47.5%

-80% -45% -10% 25% 60%

Jordan

Saudi

Kuwait

Dubai

Abu Dhabi

Doha

Bahrain

Muscat

CASE 30

Palestine

2007 2008

Performance of Regional Stock Markets

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Introduction The year 2008 proved to be a turbulent one on many levels, as local, regional and international markets suffered from the sub-prime mortgage crisis that took off in the USA and rapidly spread throughout most of the world. The crisis was strengthened by a lack of solid monitoring regulations, which landed the global economy at an overall credit crunch that severely squeezed or even reversed the growth of international economies. Regional economies, and in particular those of the GCC, capitalized on the hike in oil prices during the first seven months of the year, which peaked to near $150/barrel in July, leading governments to stretch budgets, magnify project and increase spending. Simultaneously, corporations increased their borrowings to finance large-scale projects, which helped the banking system to flourish amid amplified gains. On the other hand, accelerating oil prices accompanied by hastily maturing economies took prices up extensively and lead to unprecedented inflation rates and increased dependency on credit. Governments represented by central banks embraced the situation by manipulating both monetary and fiscal policies with adjusted tax rates, interest rates and required reserve ratios by commercial banks. However, these actions couldn’t sustain the economy and financial markets, throwing governments, institutions, corporations and individuals further into debt. The real estate market, which was the main driver of growth in the regional economy, more or less witnessed a halt in operations, especially in the model city of Dubai, creating a wave of layoffs that was extended to the region from the US and Europe. Consequently, unemployment is on the rise on the back drop of decreased industrial growth and economic activity accompanied by shrinking liquidity. Also, remittances to Egypt, Palestine and Jordan- which provide a significant support system to these countries' economies- are expected to slide as expatriates are increasingly losing their jobs in the GCC and forced to return to their home countries in search of new opportunities. As a result, a wave of bankruptcies, mergers and acquisitions is foreseen to be witnessed among companies and institutions, balancing the over saturation of markets. According to the aforementioned circumstances, the IMF toned down its growth expectations for the Middle East to stand at 3.6% relative to the previously projected 5.9%, which was in line with the levels reached in 2008. The challenges that will be faced in 2009 will require governments to put into motion the right fiscal and Monterey schemes that will aid in bringing back sustainability and stability to the credit market, which is currently in desperate need to be fueled by sufficient liquidity in order to encounter the recessionary pressures. Such a mission is not an easy one to be carried out, given the ongoing decline in oil demand accompanied by the accelerated loss of employment all around the globe. Thus, any major changes will require a real shift in the governmental roles in national economies, in contradiction to some of the key principals of capitalism; shifts that may change the major paradigms that they have long been defending.

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Regional Markets Saudi Arabia (KSA)

Economic Snapshot

Saudi Arabia is a primary OPEC member since 1960 and holds the highest oil reserves in the world; Most of oil production comes from Ghawar field along with other 5 field that nurtures indusial hubs worldwide. Also, the country possesses the biggest stock market in the region in terms of market capitalization.

Oil witnessed many turbulence during 2008 when it hit historical levels during the first 7 months of the year reaching a peak of $ 147 per Barrel in July to start declining across the last 5 months of the year as recessionary symptoms prevailed all over the globe. Decreased oil demand provoked OPEC to undertake the decision to cut daily production by 2.2 million Barrels per day. Saudi Arabia's Arab Light followed the same trend in its prices when it reached a peak in July of $132.75 /Barrel to witness an explicit decreasing trend all the way through October to settle at $69.14 / Barrel which may have jeopardized the government of Saudi's revenues and expenditure as 90% of it is mainly related to oil.

Severe decline in oil prices affected the government's revenues as oil occupies the biggest stake in it. Nevertheless, KSA was able to register highest oil revenues on the overall 2008 level hitting $ 287.6 billion; surpassing 2007's level by 46.21% as a direct consequence of the unprecedented jump in oil prices in the first 7 months of the year and which was sufficient to cover any losses that may have incurred during the global financial crisis in the other 5 months.

The preliminary figures issued by the Ministry of Finance reveals that total governmental revenues reached SAR 1.1 billion for 2008 of which 90% are oil related, exceeding the projected figure by 144%, while oil revenues surpassed 2007's value by 77%.

As oil continues its declining journey all the way through the year 2009; OPEC set a conservative expectation regarding oil demand and projected that demand on crude will decrease during 2009 by 910,000 barrel per day to land at 30.9 million Barrel per day. Such fact was taken into the consideration of decision makers in KSA to lower the overall governmental revenue projections by 62.73% when compared to realized revenues in 2008, where these projections will produce a budgetary deficit of SAR 0.65 million for the first time since 2002.

The country witnessed high inflationary pressure this year. In January and due to the high incline in oil prices, SAMA increased required reserves from 9% to 10% in a trial to control the flow of liquidity and capture inflation which continued ascending to hit 9.6% by the end of March compared to 6.5% by 2007.

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During the first quarter also, the Council of the Ministers issued a resolution to endorse the Consumer Protection Association Law which aims to provide a shield for citizens' interests against any sort of manipulation or any non justifiable increase in prices, the council also approved a recommendations regarding bearing 50% of port fees for a period of 3 years and 50% of the fees charged for issuing passport, driving licenses and transfer of car ownership and others in a trail to level down the inflationary burden off individuals.

As inflation accelerated in the second quarter, SAMA lifted the required reserves from 10% to 13%. In later months, inflation continued its trend and jumped to 11.1% at the end of July, which is the highest since in 30 years, and then it retreated by August and September attributing to a decrease on the statutory deposit held by banks from 13% to 10% and REPO from 5.5% to 5%.

During the 3rd quarter, the Counsel issued a resolution to approve the Consumer Credit Information Law for Sharing and Protecting Consumers’ Information, this move came in to protect the credit market as a response to the fact that growth in the extended credit witnessed some draw back reaching 5.03% in Q3 compared to 9.93% growth rate for the quarter before; real estate credit declined during the 3rd quarter of 2008 to reach SAR 15,072.282 million compared to SAR 15,601.479 million the quarter before.

During December, SAMA has reduced statutory deposit ratio to 7% from 10%, and to encourage more lending, SAMA cut REPO rate to 3%, such procedures came on the back of inflationary retreat as CPI displayed a declining trend starting September to the end of the year.

Concerning annual projections, International Monitory Fund (IMF) data unveils that the real growth in GDP for 2008 could reach 5.9% with expectation for that value to decline to 4.3% in 2009, while inflation is estimated to have reached to 11.5% in 2008 and is expected to decline to 10% by 2009 yearend.

Saudi Stock Exchange - Tadawul

TASI

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

31-Dec 31-Mar 30-Jun 30-Sep 31-Dec

Tadawul commenced the year with some decline as the first quarter registered a retreat by 18.26% when Tadawul All Shares Index (TASI) landed at 8,992.53 points compared to 11,175.96 points

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quoted on 2007 yearend. All sectors' indices plunged in their performance with the banking sector on top of the list losing 26.40% followed by insurance with 26.1%. January performance attributed to this decline as it registered the highest draw back in the index that lost 13.43% of its value, such drop came due to the selling pressures that was generated from foreign investors who had to reallocate their investment as a response to the global cut of interest rates prevailed that time, selling pressure peaked on 22nd of January as it drove the index to register its highest daily drop for 2008 of 9.67%.

A structural change on the exchange took place during the second quarter of 2008 regarding sectors classification, number of traded sectors became 15 with a base level set at 5,000 points. At the end of the second quarter, the general index was able to recover 2.38% of its value to settle on 9,352.32 basis points with transport sector achieving the highest quarterly increase of 28.71%, followed by Building & Construction by 26.67%.

The index lost 20.25% of its value during the third quarter to stand at 7,458.5 basis points with the transport sector continuing to register more losses as it decreased by 35.14% followed by insurance sector with 32.2% drop.

Losses continued to accumulated all the way during the final quarter of the year, stocks were traded below 5,000 level starting November 18th to reach its lowest point during the year when the index closed at 4,264.52 points.

On an annual level, Tadawul All Shares Index (TASI) lost 57.02% of its value during the year when the index closed at 4,802.99 points compared to 11,175.96 points registered by the end of 2007. None of the sectors managed to register any enhancement, insurance sector recorded the biggest decline of 73.67% affected by the soaring performance of Saudi Arabian Cooperative Insurance Company's stock that witnessed a yearly loss of 84.09%. Multi-Investment sector came next with an annual retreat of 67.01%.

Out of 110 traded companies, stocks of 4 companies only managed to realize a positive growth during the year versus 106 declining companies. Total number of shares traded reached 58,727,059,161 shares with a value of SAR 1,962,945,568,662 and the overall transactions executed throughout the year reached 52,135,929. Market capitalization settled on $ 246,396.13 million.

Major News of 2008

January

• Savola Group increased its share in New Marina Company-Egypt- to 95% by buying an additional 25% stake at a price of SAR 51.7 million.

• Saudi International Petrochemical Company increased its capital through a 100% rights issue.

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• Saudi Industrial Services Company’s subsidiary, Saudi Trade and Export Development Company, signed a contract with Rafiq Kridiyi for Constructions Company to build warehouses. The contract worth SAR 50 million.

• Etihad Etisalat Company awarded a contract worth $150 million to Motorola Middle East to expand the company’s GSM network.

• Saudi Telecom signed a $ 450 million financing facility with Al Rajhi Bank.

• Taiba Holding Company entered a joint venture to establish an oil and gas services company under the name of Saudi Reservoirs For Oil And Gas Services Company. The company’s capital is SAR 1.2 billion in which Tiba Holding Company holds a 10% stake.

• Saudi Telecom acquired a 35% stake in Oger Telecom for an amount of SAR 9.6 billion.

• Saudi Chemical Company bought 20% stake in Explo Track Company-US.

• SABB signed a $ 58 million financing agreement with Jubail Energy Services Company to partly finance Jubail’s seamless pipes plant project in Riyadh

• Saudi International Petrochemical Company increased its capital through 66.7% a rights issue.

February

• Saudi Arabian Amiantit Company sold 11% share in Chongqing Polycom International Corporation-China to a strategic investor for a total amount of SAR 337.5 million realizing a profit of SAR 200 million.

• Saudi Industrial Investment increased its capital to SAR 4,500 million from 2,250 million through a rights issue.

• Saudi Arabian Amiantit Company sold its factory in the United States for a total amount of SAR 53 million.

• Emaar the Economic City signed a contract to construct the city's infrastructure with Saudi Civilian Electro Mechanical Projects Company. The contract worth SAR 115 million.

March

• Jazan Development Company along with Tabuk Fisheries Company bought 23.06% share collectively in Turkish-based Fjord Marin for a total value of SAR 45,787,500.

• Zamil Industrial Investment Company’s subsidiary, Zamil Air Conditioners, bought 30% share in Indian-based Advantec Coils Private Limited for a total amount of SAR 59 million.

• Saudi Arabian Amiantit Company fully owned German subsidiary, BWT Wasser and Abwassertenk, was awarded SAR 698.25 million contract to install a wastewater treatment plant in Istanbul.

• Samba Financial Group distributed 50% free shares and SAR 1 per share cash dividends.

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• Saudi Investment Bank distributed 15% free shares.

• Saudi Electricity Company signed two contracts to establish a transformer station and a transmission line in Riyadh for a total amount of SAR 1.197 billion.

• Saudi Arabian Refineries Company increased its share in Saudi Industrial Investment Group to 3.7% by buying 7.5 million shares.

• Arab National Bank distributed 43% free shares.

• Aldrees Petroleum and Transport Services Company distributed 15% cash dividends and 25% free shares.

• Al Rajhi Bank has received the Central Bank of Kuwait’s approval to open a branch in Kuwait.

• Savola Group distributed 33.33% free shares and SAR 0.25 per share cash dividends.

• National Gas and Industrialization Company sold its share in the real estate in Jeddah Province for a total value of SAR 154,819,065.

April • Saudi Basic Industries Corporation distributed 20% free shares and SAR 2 per share cash

dividends

• Etihad Etisalat Co. (Mobily) has successfully arranged a SAR 1.5 billion Islamic financing to finalize the acquisition of data communication infrastructure company "Bayanat Al Oula."

• Saudia Dairy and Foodstuff Company realized an unusual profit of SAR 15 million from selling a land at an amount of SAR 20 million.

• Ash-Sharqiyah Development Company paid SAR 2.279 billion to acquire 99% of the following Mawared’s Subsidiaries: Mawarid Food Company, Mawarid Marocaine, Mawarid Trading Company and Saudi Agricultural Development Company.

• Saudi Pharmaceutical Industries and Medical Appliances Corporation distributed 15% cash dividends.

• Zamil Industrial Investment Company bought 50% stake in Rabiah and Nassar Company’s plant, Ranco Precast Concrete for a total amount of SAR 117 million.

• Saudi Arabian Fertilizer Company distributed 20% cash dividends and 25% free shares.

• National Shipping Company of Saudi Arabia distributed SAR 1 per share cash dividends.

• National Metal Manufacturing and Casting Company distributed 10% cash dividends and 25% sock dividends.

• Arabian Pipes Company signed two contracts worth SAR 21.3 million to supply steel pipes to the oil and gas sector in Egypt.

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• Saudi Paper Manufacturing Company distributed 25% stock dividends and 7.5% cash dividends.

• Ahmed Fitaihi Company raised its stake in its subsidiary Fitaihi Junior to 80% by acquiring an additional 60% share for a total amount of SAR 4 million.

• Etihad Etisalat Company signed a one-year SAR 1.5 billion financing agreement with Samba Financial Group, SABB and national Commercial Bank to finance the acquisition of Bayanat Al-Oula for Network Services.

• Emaar the Economic City signed a contract with Freyssinet Saudi Arabia Company to build the second phase of the business park for a total amount of SAR 390 million.

• Dar Al Arkan Real Estate Development Company signed an agreement with Jeddah Development and Urban Regeneration Company to set up a company with a capital of SAR 580 million with an ownership of 51% attributed to Dar Al Arkan and 49% to Jeddeh Development.

• Zamil Steel Industries set up a factory in Vietnam with a total investment of SAR 75 million.

• SABB increased its capital to SAR 6 billion from SAR 3.75 billion through the distribution of 60% stock dividends.

• Emaar the Economic City awarded a contract to Bin Laden Group to build towers in King Abdullah Economic City. The contract worth SAR 1.4 billion.

• Saudi Telecom signed a SAR 9.6 billion murabaha contract with Samba Financial Group, Riyad Bank and National Commercial Bank to finance the acquisition of a 35% stake in Oger Telecom.

May

• Saudi Basic Industries Corporation-SABIC started the row show on May 3rd after obtaining the Saudi Capital Market Authorities approval in April for the issuance of Islamic Bonds (SUKUK) for a minimum of SAR 10,000 and a maximum value of SAR 5 billion.

• Saudi Arabian Amiantit Company signed a contract with YYTH-Chine selling 50% share of its 11% share in Chongqing Polycom International Corporation for an amount of SAR 169 million, realizing a profit of SAR 75 million.

• Assier Trading Tourism Industrial Agricultural Real Estate and Contracting Company ditributed 10% cash dividends.

• Zamil Industrial Investment Company entered a joint venture with USA-based Hudson Products Corporation to set up a SAR 75 million- new company, in which each company will hold a 50% share.

• Saudi Arabian Amiantit Company entered a joint venture with Qatar Industrial Manufacturing Company and Qatari Company for Trading and Agency Services to

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establish Amiantit Qatar Pipes Company. Each Saudi Arabian Amiantit and Qatar Industrial Manufacturing Company hold a 40% stake while the remaining 20% went to Qatari Company for Trading and Agency Sevices.

• Saudi Kayan Petrochemical Company signed a SAR 4.9 billion contract with Korea-based Daelim Industrial Limited Company to establish polycarbonate plant.

• Riyad Bank signed a Shariah compliant loan agreement worth SAR 1.1 billion with National Industrialization Company.

• Banque Saudi Fransi signed a SAR 700 million Shariah compliant loan with National Industrialization Company.

• Al Babtain Power and Telecommunications won a SAR 22 million contract with an Egyptian electric company and a SAR 13 million contract with National Chemical Carriers.

• Ahmed Fitaihi Company established Sodouk Investment Holding Company with a capital of a SAR 100 million and Medmac Gulf Real Estate Investment with a capital of a SAR 100 million.

• Saudi Research and Marketing Group entered a joint venture with Saudi Post and Youssef Bin Mohamed Hamidaddin and Partners to establish a SAR 100 million mail advertising and direct marketing company of which Saudi Research and Marketing Group will hold a 19.60% stake. The new company’s name is Shaher.

• Emaar the Economic City signed a contract with Mubarak Al Gethmi Contractors to build four residential towers in King Abdullah Economic City. The contract worth SAR 199,089,450.

• Red Sea Housing Services won a contract to install housing units for Hyundai Heavy Industries. The contract worth SAR 140,537,500.

• Riyad Bank increased its capital from SAR 6,250 million to SAR 15,000 million through a rights issue of 140% at a price of SAR 15 per share.

• Al Ahsa Development Company obtained the Ministry of Industry and Trade approval to construct a gypsum plant. The project is expected to cost SAR 151 million with an expected net profit of SAR 48 million.

• Acetyl Complex Company signed a loan agreement with the Saudi British Bank to refinance its projects with an amount of SAR 2.78 billion.

• Jazan Development Company begun the second phase of its shrimp project with a total cost of SAR 43 million. The company also launched the shrimp processing plant with a total cost of SAR 12 million.

• Al Babtain LeBlanc Telecommunication Systems was awarded contracts to supply communications towers in Saudi Arabia, UAE, Egypt and Sudan. The contracts worth SAR 188 million.

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• Taiba Holding Company realized a profit of SAR 30 million from the selling of a parcel of land for a total amount of SAR 65 million.

• Saudi Transport and Investment Company signed contracts to purchase trucks and refrigerators for a total amount of SAR 33.1 million which was financed through an agreement with Bank Al Bilad.

• Hail Agricultural Development Company signed an agreement with the Ministry of Agriculture to rent a parcel of land to build a chicken factory. The period of the rent is 30 years with a yearly cost of SAR 28,539.

• Yanbu Cement Company signed an MOU with China-based Sinoma International Engineering Company to establish a Cement production line with total investments of SAR 1.7 billion.

• Al Babtain Power and Telecommunications Company signed two contracts worth SAR 131.1 million with Indian-based KAC to supply electricity towers.

• National Industrialization Company distributed 10% cash dividends and increased its capital through a 31.7% rights issue at a par value of SAR 10 plus a premium of SAR 8 taking the company’s capital to SAR 4,606,846,860.

June

• Saudi Kayan Petrochemical Company signed a $ 6 billion loan agreement with a number of banks for a period of 15 years.

• Jazan Development Company realized a profit of SAR 56 million from the selling of a parcel of land for an amount of SAR 137 million.

• Samba Financial Group received the Qatari Authorities’ approval to provide banking services in Qatar.

• Emaar the Economic City sold 95% of the Esmeralda Suburb villa units for a total price of SAR 171 million.

• Samba Financial Group received the license form Dubai authorities to proceed in launching its first branch in Dubai.

• Maaden Phosphate Company signed a financing agreement with a group of banks for a total value of SAR 10.354 billion for a period of 16 years to finance the construction and development of its projects Al Jalamid Mine and Phosphate and Fertilizer Complex for a total cost of SAR 20.7 billion. Al Riyadh Bank along with Standard Chartered is represented as the loan’s financial advisors.

• Emaar the Economic City signed a contract with Saudi based-Huta Group for a total value of SAR 83 million to construct two bridges within King Abdullah Economic City.

• Fawaz Abdulaziz Alhokair and Company distributed SAR 1.75 per share cash dividends.

• Kingdom Holding Company increased its share in National Air Services to 37% by acquiring additional stakes in the latter for a total value of SAR 1.17 billion. The deal was

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carried out through the 100% acquisition of Abraaj National Air Services which owns 30% of National Air Services.

• Saudi Public Transport Company signed 5 contracts to transport sand to Bahrain with a total amount of SAR 50.4 million.

• Emaar the Economic City signed a 25 years SAR 650 million contract with CityCool Company to provide King Abdullah Economic City with two stations providing central cooling systems.

July

• Aldrees Petroleum and Transport Services Company won a 5-year SAR 232 million contract to supply transport facilities to Northern Region Cement Company and Soya Company.

• Emaar the Economic City signed an MOU with Capri Capital Partners to develop a SAR 7.5 billon project in King Abdullah Economic City.

• Al Babtain Power and Telecommunications signed a contract worth SAR 242.7 million with National Contracting Company to supply 380 kilovolt galvanized power towers.

• Mohammad Al Mojil Group signed a contract with Italian-based Snamprogetti Company to build three oil separations plants for Aramco. The contract worth SAR 1,513,750,000.

• Etihad Etisalat Company obtained the Commission of Communication and Information Technology's approval to buy a 96% share in Zagel International Communication Network Company for a total amount of SAR 80 million.

• Saudi Indian Company for Cooperative Insurance obtained the Saudi Arabian Monetary Agency approval to proceed with Insurance activities.

• Halwani Brothers Company 28,571,433 shares were listed on the Saudi Stock Exchange on July 16th, 2008.

• Arabia Insurance Cooperative Company obtained the Saudi Arabian Monetary Agency approval to proceed with Insurance and reinsurance activities.

• Al Rajhi Bank along with SABB, Samba Financial Group, Banque Saudi Fransi, Saudi Hollandi Bank, and National Commercial Bank signed a SAR 6 billion Islamic Murabaha facility with Saudi Electricity Company for a period of 12 years.

• Emaar the Economic City signed a SAR 25 million contract with Ridayat Leasing Company to provide King Abdullah Economic City with electrical energy services.

• Savola Group signed bought 80% share in Pakistani-based Acro Processor Company for a total amount of SAR 200 million.

• Middle East Specialized Cables Company increased its capital from SAR 320 million to SAR 400 million through the distribution of 25% stock dividends.

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• Aldrees Petroleum and Transport Services Company won a number of contracts with a total amount of SAR 10 million to provide government agencies with fuel.

• Al Abdullatif Industrial Investment Company was awarded contracts worth SAR 59,690,629 to manufacture and supply blankets and carpets to two ministries.

• Mohammad Al Mojil Group signed SAR 100 million contracts with Saudi Arabian Saipem Company to complete the construction work on Khurais crude oil station, the Oil-Gas separation plant and the preparation of pipes and their liquid paint tubes in Khurais.

• Red Sea Housing Services was awarded a contract to build 1100 residency units for Bechtel Corporation in Guinea. The contract worth SAR 76,772,500.

• Nama Chemicals Company increased its capital through 68% rights issue; 52.02 million shares.

• Saudi Arabian Mining Company signed a contract with Rio Tinto Alcan Company to produce 750,000 tons of aluminum with project worth of $ 10.5 billion

• Mohammad Al Mojil Group signed a contract with Daelim Saudi Arab Company to mechanically install and manufacture pipes and painting work. The contract worth SAR 165 million.

• Saudi Printing and Packaging Company signed an agreement with its subsidiary, United Printing and Publishing, to sell its 40% share in the latter for a total amount of SAR 117.3 million, booking a profit of SAR 23.6 million.

August • Saudi Hollandi Bank acted as the lead arranger and underwriter for the Islamic credit

facility extended to Arabian Amines Company, Zamil Group Holding and Huntsman SA's joint venture. The credit facility amounted to SAR 731.25 million.

• Yamama Saudi Cement Company entered a joint venture to set up a SAR 1.2 billion Cement company named Hail Cement Company. Yamama holds a 5% share in the new company.

• Saudi Reinsurance Company received the Saudi Arabian Monetary Authority license to resume its reinsurance activities.

• Saudi Arabian Amiantit Company signed a contract with YYTH based in China for the selling of its 11% owned stake in Chongging Polycom International Corporation for a total amount of SAR 169 million.

• Al Abdullatif Industrial Investment Company signed a contract for a total amount of SAR 7 million with Al-Zamil for the installation of buildings for a new project.

• Saudi Industrial Services Company increased its capital through a 70% rights issue.

• Emaar the Economic City awarded a SAR 320 million contract to Ericsson to build and operate the telecommunication network infrastructure for the investors and residents of King Abdullah Economic City.

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September • Saudi Electricity Company signed a contract for a total value of SAR 10.8 billion with

Alstom based in France & Saudi Archirodon for the construction of phase three of the Shuaiba power plant based in Jeddah.

• Astra Polymers Company signed an agreement with Ciba Holding Company to establish Ciba-Astra Additives Company Limited based in Saudi Arabia.

• Rabigh Refining and Petrochemical Company announced that the ownership rights for a refinery vessel that has a book value of SAR 862.5 million were transferred to the company from Saudi Aramco.

• Anaam International Holding Group resumed its operations in Australia under the name of 'Al Mawashi International Company'.

• Taiba Holding Company obtained the ministry of commerce and industry's approval to set up a new subsidiary under the name Al Dhiraa Al Makeen Industrial Company.

• Saudi Arabian Amiantit Company realized a profit of SAR 83 million from selling 50% stake in China-based Chongqing Polycom International Corporation.

• Al Khaleej Training and Education increased its capital from SAR 80 million to SAR 100 million through the distribution of 25% stock dividends.

• Saudi Real Estate Company participated with a 5% stake equaling SAR 60 million in the establishment of the SAR 1.2 billion Hail Cement Company.

• Saudi Electricity Company awarded a contract worth SAR 85.5 million to Mass Projects for Power and Telecommunication, a 100% owned subsidiary by Saudi Cable Company, to supply and install copper and optical-fiber cables

• Emaar the Economic City signed a SAR 553 million contract with Siemens to construct King Abdullah Economic City's power generation and distribution plant.

• Arabian Cement Company obtained a $ 120 million Shariaa compliant loan from BNP Paribas to finance the establishment of the cement plant in Jordan, in which the company will hold a 95% stake.

October

• Saudi Hotels and Resort Areas Company granted INSAT Construction a contract to set up the Makarem Residence project within a period of 18 months. The contract worth SAR 92,856,070 million.

• National Titanium Dioxide Company (Cristal) obtained the United States authority’s approval to buy International Titanium Powder, for an amount of SAR 412.5 million.

• Kingdom Holding Company launched two projects "Kingdom City" & "Kingdom Tower" in Jeddah for a total value of SAR 100 billion.

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• Dar Al Arkan Real Estate Development Company's distributed 33.33% bonus shares increasing its capital from SAR 5.4 billion to SAR 7.2 billion.

• Saudi Basic Industries Corporation established a fully owned subsidiary "Saudi Basic Industries Capital Limited Company" based in Holland for a total equity of EUR 18,000.

• Saudi Public Transport Company signed a contract with a local advertising company to provide ads on 300 buses owned by the company. The contract is for 5 years and worth SAR 50 million.

• Saudi Ceramics Company signed a SAR 57 million financing agreement with Saudi Industrial Development Fund.

• Etihad Etisalat Company increased its capital from SAR 5 billion to SAR 7 billion through a right issue at a par value.

• Saudi Research and Marketing Group entered a joint venture with Saudi telecom & Astro All Asia Netwroks based in Malaysia to establish a mobile content services company for a total value of SAR 280 million By which the company will be holding 20% stake and Astro All Asia will own 29%, and Saudi Telecom will own 51% stake.

• Saudi Advanced Industries Company acquired 20% stake in National Petroleum Services Company based in Bahrain for an amount of SAR 187.5 million.

November • Etihad Etisalat Company bought a 96% share in Zajil International Saudi Arabia.

• Emaar the Economic City signed a contract with Saudi Binladin Group to construct the coast road as part of the King Abdullah Economic City project. The contract worth SAR 239 million

• Emaar the Economic City signed a contract with Nesma Holding Company for a total value of SAR 167 million for the development of the infrastructure of region B in the resort area of the "The Economic City of King Abdallah".

• Etihad Etisalat Company's general assembly approved the 40% rights issue increasing the company's capital from SAR 500 million to SAR 700 million where the rights issue was oversubscribed by a total of 230%.

• Saudi Hollandi Bank's issued SAR 1.5 billion sukuk.

• Saudi Real Estate Company entered a strategic alliance with Atkins Company based in UK for the construction of SAR 24 million residential & Commercial project based in Saudi Arabia.

• Saudi Cable Company received a purchase contract worth SAR 34 million from an Arab country to supply high-voltage cables.

• Tabuk Pharmaceutical Manufacturing Company was awarded a contract worth SAR 53.5 million from the Saudi Ministry of Health to supply Pharmaceutical products for Gulf countries.

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December • Saudi Cable Company was awarded a tender to supply and install ground cable. The

tender worth SAR 83 million.

• Saudi International Trading Company was awarded a contract to supply pharmaceutical products for private and public hospitals. The contract worth SAR 352 million.

• Saudi Arabian Refineries Company increased its capital from SAR 60 million to SAR 150 million by 150% through the issuance of issuance of 6 million new shares with a total value of SAR 90 million.

• Al Ahsa Development Company distributed 14.29% free shares and sold the company's share in Emar Al Der'a Al Arabi Investment Company.

New Listing- 2008/ TASI

Company Name Number of Shares ( in Millions) Listing Date

Rabigh Refining and Petrochemical Company 219 January 27th 2008 Arabia Insurance Cooperative Company 8 February 4th 2008 Trade Union Cooperative Insurance Company 10.5 February 9th 2008 Al Sagr Company for Cooperative Insurance 8.4 February 10th 2008 Mobile Telecommunications Company Saudi Arabia 700 March 22nd 2008

BUPA Arabia 16 May 17th 008 Saudi Reinsurance Company 40 May 24th 2008 Mohammad Al Mojil Group 30 May 26th 2008 Alinma Bank 1,050 June 3rd 2008 Basic Chemical Industries 30 June 16th 2008 United Cooperative Assurance Company 8 June 21st 2008 Halwani Brothers Company 8.5714 July 16th 2008 Abdullah Al Othaim Markets Company 6.75 July 14th 2008 Saudi Arabian Mining Company 462.5 July 28th 2008 Astra Industrial Group 22.235 August 18th 2008

Methanol Chemicals Company 60.3 September 16th 2008

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Kuwait

Economic Snapshot

Since its first discovery in 1938, oil has been main nutrient to the Kuwaiti economy; by 1960 the country joined OPEC which was created at Baghdad conference that year. The country encompasses the second largest field in the world (Burgan Field) and enjoys a big percentage of oil reserves on the global level.

Government's spending reached KWD 7,894.298 million by the end on November 2008 but still was able to realize a budgetary surplus of KWD 8,059.712 million; which exceeds the surplus balance realized the same period in 2007 by 28.64% when it reached KWD 6,265.526 million. The most recent data indicates that over the first 11 months of 2008 oil related revenues reached up to KWD 16,815.784 million surpassing the budgeted amount of KWD 11,652.632 million by 44.31% and comprises 94.86% of total government revenues.

Kuwait continues to be an attractive spot for doing business. For the year 2008, Kuwait scored 68.3% on the world economic freedom index issued by the Heritage Foundation and Wall Street Journal, making it the 39th freest economy in the world. Such score is considered relatively high as Kuwait outperformed the regional average and came 2nd out of 17 Middle East countries.

Kuwait aggressively excelled at the fiscal freedom Index which hit 99.9%; the reason for that is the policy adopted by the Kuwaiti government not to collect any sort of taxes on individuals or business entities unless it was a foreign entity. In such case, taxes usually may reach 55% but Kuwaiti parliament passed a bill to cut such ratio to 15% in a trial to attract more external investments.

In addition to the superior performance of fiscal freedom index, Kuwait outperform other global averages regarding business freedom, trade freedom, government size, property rights, labor freedom and freedom from corruption.

Kuwait scored 4.3 points and was ranked number 65 out of 180 of countries regarding the globe Corruption perception index issued by transparency international to indicate an economy with a solid conduct of performance. The country was also ranked 35 out of 134 countries on the global competitiveness index 2008-2009 as it scored 4.58 points.

Despite the positive prospective regarding its economy, Kuwait witnessed a tough and challenging year. Kuwait endured accelerating inflationary levels throughout 2008 influenced mainly by external factors in addition to internal ones; food and commodity prices increase all over the globe as a result of the increasing oil prices represented the external factor, while the inclining housing prices represented the internal driver for inflation.

During January of 2008, CPI grew by 9.5% compared to 3.9% realized in the same period in 2007. Inflation continued its climbing journey to hit a peak of 11.6% in August as signs of the world financial crisis prevailed.

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The Central Bank of Kuwait (CBK) protective actions prevailed across the year as a response to inflationary pressures. Interest rate cuts started in January as the CBK reduced Discount rate interest by 50 basis points to settle at 5.75% down from 6.25%. Further cut took place later in October as a response to global financial crisis that became explicit at that time when the CBK cut discount rate by 125 basis points in October 8th from 5.75% to 4.5%. By the end of the year, another two cuts came in that brought the interest down to 3.75%.

By October 8th the CBK’s board of directors issued some resolutions to banks including elevating the ratio of credit facilities to deposits by 5% to reach 85%. According to the disclosure issued by the CBK the resolutions also include “increasing the rate of growth set for bank credit portfolios during 2008 by 5 percentage points for each bank, and considering real estate as one of the acceptable items for the collateral qualified for inclusion in the calculation of the capital adequacy ratio". This decision came in to manifest the CBK mission to monitor and to maintain the stability and soundness of the credit market by release more available funding for public borrowing.

The banking system in Kuwait suffered from drawbacks resulted from the global crisis. Gulf bank endured sever losses from derivatives trading to the point that provoked the CBK to take urgent resolving actions. The central bank announced its full guarantee to customer deposits took further action to close all transactions in financial derivatives on behalf of customers and asked the management of the gulf bank to conduct a capital increase to raise shareholders equity by KD 375 million in order to bring it back to its September 2008 level.

Internal political instability characterized Kuwait in 2008. In December, Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah accepted the government's resignation that was previously submitted on 25th of November after a dispute with the parlement on the back of the controversial visit made by an Iranian figurehead, adding by this another political conflict between the government and the parliament that was prevailing for a while.

Despite the turbulent financial and political situation in Kuwait during 2008, the International Monitory Fund holds positive outlook regarding real growth in GDP and inflation as the below table illustrate

Indicator 2007 2008 2009 2010**

GDP- Constant Prices ( in KWD billions ) 19.205 20.362 21.626 22.974

Real growth in GDP 4.6% 5.9% 5.8% 6.233%

Inflation ( Average) 5.5% 9.0% 7.5% 6.73% *estimates of the IMF as of October 2008 ** Data are estimated by IMF by April 2008

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Indicator 2007 2008

Debt Service 13,980 15,910

Foreign Exchange Reserves 10,960 13,260

Trade Balance 36,900 35,000 In Millions of $ Source: Rabobank

Kuwait Stock Exchange

KSE

02,0004,0006,0008,000

10,00012,00014,00016,00018,000


The exchange kicked off this year positively concluding the first three months with a growth of 13.77%. January performance heavily attributed to such progress as the index increased by 7.49% when it closed at 13,499.70 points, influenced by the government’s intentions to carry on new tax law modification that is intended to encourage foreign and non-foreign investments into the exchange.

The general Index continued its ascending pattern in the proceeding quarter as it closed at 15,456.20 points, realizing a growth of 8.18% on quarterly basis. The real estate sector led this incline with a growth rate of 23.32% influenced by the surge in property sales with a special focus on June when a significant jump took place in sales reaching KWD 177.4 million compared to KWD 146.0 million one month prior.

During the second quarter, stock prices of four companies jumped by more than 100%; Network Holding Co. - (NETWORK) came on top of the list as its stock increased by 226.4% in a matter of three months.

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The ascending trend halted in the third quarter as the situation in the Global financial arena dropped its shadow on the Kuwaiti exchange. The general index of Kuwait stock exchange dropped by 16.93% to settle at 12,839.3 points. September witnessed the highest retreat during the year as the index reached the lowest year to date value of 12,360.20 basis points on September 15th 2008. Investment sector witnessed the highest drop of 22.58%

Real estate sector came next and declined by 18.41% during the 3rd quarter on the back of the retreated real estate sales drop throughout the period as it was touched in August as real estate sales dropped to KWD 94.2 million compared to KWD 162.1 million in the prior month. Also by September 2008 banking sector lost all its year to date gains as banks shrunk its activity to shift away as much as it could from the global mortgage crisis.

During the last quarter of the year, the shape of the financial crisis's consequence came well framed as exchange continued to break more limits. During October the stock of one of the largest banks in the country – The Gulf Bank- were suspended from trading on 26th October 2008 on the back of the 375 million losses realized on derivative trading.

Drawbacks continued and the continual losses of the stock market provoked policy makers at the exchange to adhere to the Administrative Court decision and suspend trading on November 16th for two days in a trial to stop the bleeding. Saving the financial market laid itself on the Kuwaiti government's agenda that approved to establish a $7.26 billion investment fund to be traded over the exchange with a rationale to support the performance of the deteriorated financial market.

Declining trend continued to the end of the final quarter as the index went below 8,000 on the 30th December 2008 for the first time since April 2005 when it dropped to 7,994.8 basis points.

The index closed the year on its lowest annual value when it reached 7,782.60 basis points, and by this, the yearly decline registered 38.03% compared to 2007 yearend 12,558.90 points.

During 2008, number of shares traded with a value of KWD 35,739,208,730 reached 80,814,719,607 shares with total transactions of 1,997,053. Out of 193 traded stocks, 23 companies ascended while 170 stocks declined.

Major News of 2008

January

• Independent Petroleum Group was awarded a contract to supply crude oil products to Zambia for a two years period, the contract worth $1.2 billion.

• Al Safat Investment Company bought a 45% share in the Bahraini company Aldhaen Trading for a total investment of KWD 7,350,000.

• Kuwait Commercial Markets Complex Company sold two properties in Qatar and Bahrain for a total amount of KWD 6.65 million realizing a profit of KWD 2.83 million.

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• Superior Oilfield Company, Gulf Petroleum Investment’s subsidiary, won an oil service contract in Syria for a value of $15 million for a period of 3 years.

• Global Investment House has received the Central Bank of Kuwait’s approval to increase the company’s capital by 35% through a private placement to a Strategic Investor. The capital increase is still awaiting shareholders' approval.

• Aref Energy Holding bought a 10% share in Makkamin Petroleum and Gas Services Company- Saudi Arabia- for a total amount of SAR 120 million.

• Educational Holding Group general assembly approved the distribution of 15% bonus shares.

• The Public Warehousing Company signed a contract to acquire Star Freight Logistics Limited Company-Kenya for a total investment of $4.1 million.

• The Public Warehousing Company entered a joint venture with Mubadala Development Company and Al Bateen Investment Company to set up a new company in the UAE that will be named Agility Abu Dhabi Company for a value of $80 million in which the Public Warehousing company will hold 36.5% stake, Mubadala Development Company will hold 36.5% stake and Al Bateen Investment Company will hold 27% stake.

• Metal and Recycling Company was awarded a tender worth KWD 3,891,595 from Kuwait Petroleum Company to sell scrap materials and remnants of metal.

• Pearl of Kuwait Real Estate Company acquired 10% stake in Business City of Kuwait Company for a total amount of KWD 10,627,500.

• Kuwait Commercial Markets Complex Company sold a real estate project in Kuwait in which it owns a 40% stake, for a total amount of KWD 33,062,320 realizing a profit of KWD 3,690,744.

• Housing Finance Company sold a real estate project in Kuwait in which it owns a 60% stake, for a total amount of KWD 33,062,320 realizing a profit of KWD 5,536,116.

• Al Deera International for Telecommunications Company, Al Deera Holding Company’s subsidiary, signed a KWD 6.24 million deal to buy a 39% stake in Fast Telecommunication Company.

• National Industries Group Holding general assembly approved to increase the company’s capital to KWD 147,170,246 from the KWD 117,736,197 through a rights issue.

• The Investment Dar Company signed a 5-year $300 million renewable Islamic loan.

• National Company for Consumer Industries general assembly approved the distribution of 110.73% cash dividends

• Al Enma'a Real Estate Company general assembly approved the distribution of 10% cash dividends and the distribution of 10% free shares.

February

• Arkan Al Kuwait Real Estate Company general assembly approved the distribution of 5% free shares and 7% cash dividends.

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• Munshaat Real Estate Projects Company general assembly approved the distribution of 15% free shares and 10% cash dividends.

• Burgan Bank sold its 33 million shares in Bank of Bahrain and Kuwait realizing a profit of KWD 9 million.

• Noor Financial Investment Company general assembly approved the distribution of 50% cash dividends.

March

• Al Abraj Cleaning Services Company, Al Abraj Holding Company’s subsidiary, won two tenders:

o A KWD 4,929,317 tender from Kuwait Petroleum Company

o A KWD 1,372,950 tender from the Municipality of Kuwait

• Gulf Cable and Electrical Industries Company received a KWD 6 million purchase order from UAE-based Musandam Electrical Equipment Company to supply electric cables.

• Commercial Bank of Kuwait general assembly approved the distribution of 85% cash dividends and the distribution of 5% free shares.

• Ahli United Bank general assembly approved the distribution of 10% free shares and the distribution of 14% cash dividends.

• United Industries Company general assembly approved the distribution of 35% cash dividends and the distribution of 5% free shares.

• Mobile Telecommunications Company general assembly approved the distribution of 90% cash dividends and the distribution of 50% free shares. The general assembly also approved to increase the company’s capital through a 75% rights issue.

• Kuwait and Gulf Link Transport Company won a tender worth KWD 4,671,900 to clean National Petroleum refineries and a tender worth KWD 2,296,000 was won by the company’s subsidiary to clean the refineries of Petroleum Company.

• YIACO Medical Company signed a KWD 1 million contract with the ministry of health to supply medical drugs.

• National Bank of Kuwait bought a 40% share in Turkish Bank for $160 million.

• Kuwait Insurance Company general assembly approved the distribution of 70% cash dividends.

• Kuwait Finance House general assembly approved the distribution of 65% cash dividends and the distribution of 20% free shares.

• Housing Finance Company bought 7.716% share in First Bahrain Real Estate Development Company for a total amount of KWD 4,112,750.

• Boubyan Bank general assembly approved the distribution of 10% free shares.

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• Abyaar Real Estate Development Company general assembly approved the distribution of 25% free shares.

• Wataniya Telecom general assembly approved the distribution of 50% cash dividends and 10% free shares.

• United Projects for Aviation Services Company general assembly approved the distribution of 35% cash dividends.

• Kuwait and Middle East Financial Investment Company general assembly approved the distribution of 30% cash dividends and 10% free shares.

• Kuwait Portland Cement Company sold 58.33% stake in United Gulf Cement Company for a total amount of $17.5 million realizing a profit of $3 million.

• Aqar Real Estate Investments Company fully acquired Gulf Spring Kuwait for Real Estate Development Company, after it acquired the remaining 73% stake for a price of KWD 3,123,000.

• Al Kout Industrial Projects Company general assembly approved the distribution of 35% cash dividends.

• Commercial Facilities Company general assembly approved the distribution of 50% cash dividends and 5% free shares.

• United Industries Company general assembly approved the distribution of 5% free shares.

• Al Ahli Bank of Kuwait general assembly approved the distribution of 9% free shares and the distribution of 45% cash dividends.

• Kuwait Building Materials Manufacturing Company general assembly approved the distribution of 15% cash dividends.

• Hilal Cement Company signed a deal to buy a limited liability company specialized in ready mix for a total value of KWD 3.7 million.

• Gulf Insurance Company general assembly approved the distribution of 100% cash dividends and the distribution of 50% free shares.

• Mabanee Company general assembly approved the distribution of 15% free shares.

• Kuwait Projects Company (Holding) general assembly approved the distribution of 10% bonus shares and 90% cash dividends.

• Tijara and Real Estate Investment Company general assembly approved the distribution of 10% cash dividends.

April • The Public Warehousing Company was awarded a contract by the Kuwait National and

Petroleum Company for a period of five years and worth $20.4 million for freight forwarding, custom clearance and transportation.

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• HumanSoft Holding Company realized a profit of KWD 1,754,679 from the selling of 60% stake in Arab Company for Educational Enterprises, New Horizon for Educational Enterprises and Al Tawteen for Human Investment Company.

• Commercial Real Estate Company signed a $400 million loan agreement with BNP Paribas Banks at an interest of 1 to 2% basis points above LIBOR rate. The company will receive $200 million after two years and a $200 million after three years, of signing the contract.

• Danah Safat Foodstuff Company general assembly approved the distribution of 15% cash dividends and 25% stock dividends.

• Commercial Real Estate Company general assembly approved the distribution of 14% cash dividends and 10% free shares.

• Kuwait Investment Company general assembly approved the distribution of 35% cash dividends and 5% free shares.

• Hilal Cement Company general assembly approved the distribution of 25% cash dividends and 75% stock dividends.

• Gulf Rocks Company general assembly approved the distribution of 100% stock dividends.

• Al Safat Investment Company signed a contract to buy a parcel of land for a total amount of KWD 29,707,500.

• United Industries Company signed a preliminary agreement to enter a joint venture with SAR 240 million or a 20% share in the establishment of Al Attoun Metal Industries Company in Saudi Arabia

• Livestock Transport and Trading Company general assembly approved the distribution of 12% cash dividends.

• Kuwait Reinsurance Company general assembly approved the distribution of 25% cash dividends and 5% stock dividends.

• Kuwait Hotels Company general assembly approved the distribution of 10% free shares.

• Kuwait Finance and Investment Company general assembly approved distribution of 30% cash dividends and 20% stock dividends.

• Hits Telecom Holding Company signed a memorandum of understanding to buy 100% share in Saudi Channels and its subsidiary for the amount of SAR 240 million.

• Hits Telecom Holding Company bought a 49% stake in Unicel Telecommunication Company- Brazil for a total amount of $62 million.

• Al Ahleia Insurance Company general assembly approved the distribution of 65% cash dividends and 10% stock dividends.

• Gulf Cable and Electrical Industries Company general assembly approved the distribution of 30% stock dividends and 50% cash dividends.

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• Salhia Real Estate Company general assembly approved the distribution of 10% stock dividends and the distribution of 50% cash dividends.

• National Petroleum Services Company – Kuwait general assembly approved the distribution of 5% stock dividends and the distribution of 15% cash dividends.

• Mashaer Hajj and Umrah Services Consortium general assembly approved the distribution of 30% cash dividends and the distribution of 30% stock dividends. The general assembly also approved to increase the company’s capital through a 25% rights issue at a price of KWD 0.45.

• First Dubai Real Estate Development Company general assembly approved the distribution of 10% stock dividends and the distribution of 5% cash dividends.

• Al Aman Investment Company general assembly approved the distribution of 7% stock dividends and the distribution of 7% cash dividends.

• National International Holding Company general assembly approved the distribution of 35% stock dividends.

• National Bank of Kuwait sold 8 properties for a total amount of KWD 13.881 million.

• Kuwait Real Estate Holding Company general assembly approved the distribution of 7% cash dividends and 5% stock dividends.

• Alargan International Real Estate Company general assembly approved the distribution of 25% cash dividends.

• Tamdeen Real Estate Company general assembly approved the distribution of 10% stock dividends and the distribution of 10% cash dividends.

• Qurain Petrochemicals Industries Company general assembly approved the distribution of 10% cash dividends.

• Kuwait Slaughterhouse Company general assembly approved the distribution of 9% cash dividends.

• Kuwait Food Company general assembly approved the distribution of 50% stock dividends and the distribution of 50% cash dividends.

• Kuwait Cement Company general assembly approved the distribution of 15% free shares and the distribution of 65% cash dividends.

• Oula Fuel Marketing Company general assembly approved the distribution of 10% cash dividends.

• Kuwait Cable Vision general assembly approved the distribution of 10% cash dividends.

• Ajial Real Estate and Entertainment Company general assembly approved the distribution of 30% cash dividends and the distribution of 5% stock dividends.

• Palms Agro Production Company general assembly approved the distribution of 10% stock dividends.

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• Kuwait Pipe Industries and Oil Services Company general assembly approved the distribution of 30% cash dividends and the distribution of 5% stock dividends.

• Grand Real Estate and Touristic Development Company general assembly approved the distribution of 5% cash dividends and the distribution of 7% stock dividends. The general assembly also approved to change the company’s name to Investors Group Holding Company.

• Bayan Investment Company general assembly approved the distribution of 10% stock dividends and the distribution of 10% cash dividends.

• Egypt-Kuwait Holding Company reported that it has signed a contract with the Kuwait Pipes Industries and Oil Services Company (KPIOS) for the sale of its 25 percent stake, amounting to 100,000 shares, in International Pipes Industry Company valued at $20 million.

• Kuwait Invest Holding Company revealed that it has obtained the Saudi Capital Market Authority’s approval to establish a SAR 50 million new company under the name of Addax Securities Company, in which it will hold a 25% stake.

• International Finance Company general assembly approved the distribution of 12% cash dividends and the distribution of 6% stock dividends.

• Gulf Franchising Company general assembly approved the distribution of 10% cash dividends.

• Safwa Group Company general assembly approved the distribution of 5% cash dividends and the distribution of 10% stock dividends. The general assembly also approved to increase the company’s capital though a 20% rights issue.

• Al Safat Real Estate Company general assembly approved the distribution of 10% cash dividends.

May • National Petroleum Services Company – Kuwait won a contract to supply petroleum services to

Kuwait Petroleum Company for a period of 16 months. The contract is worth KWD 10 million.

• Metal and Recycling Company general assembly approved the distribution of 7% stock dividends.

• Al Ahlia Holding Company general assembly approved the distribution of 5% stock dividends and 30% cash dividends.

• National Industries Group Holding general assembly approved the distribution of 75% cash dividends and the distribution of 10% stock dividends. The general assembly also approved to increase the company’s capital by 25% through rights issue.

• AREF Investment Group general assembly approved the distribution of 60% cash dividends and the distribution of 10% stock dividends. The general assembly also approved to increase the company’s capital through a 110% rights issue.

• National Slaughterhouse Company general assembly approved the distribution of 8% cash dividends.

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• International Real Estate Projects Group, Mena Holding’s subsidiary, realized a profit of KWD 1,473,225 from selling a parcel of land in Egypt.

• The Investment Dar Company general assembly approved the distribution of 70% cash dividends and the distribution of 25% stock dividends.

• Kuwait Real Estate Company general assembly approved the distribution of 7.5% cash dividends and the distribution of 10% stock dividends.

• Jeezan Holding Company general assembly approved the distribution of 20% stock dividends.

• Abyaar Real Estate Development Company sold a number of floors in its property in Dubai for a total amount of KWD 7,893,000 realizing profits of KWD 4,541,000.

• The International Investor – Kuwait general assembly approved the distribution of 10% stock dividends and the distribution of 15% cash dividends.

• Investors Group Holding Company signed an MOU with the Libyan African Investment Portfolio to set up a $2 billion company, of which the company holds a 25% share and the Libyan African Investment Portfolio holds a 25% stake while the remaining 50% share is offered to strategic investors.

• IFA Hotels and Resorts entered a joint venture with Palm Company to establish a $1 billion complex project in Al Jumaira. IFA Hotels and Resorts holds a 50% stake.

• Gulf Petroleum Investment general assembly approved the distribution of 40% cash dividends and 10% stock dividends.

• Gulf Horizon Holding Company general assembly approved to change the company’s name to Al Safat International Holding Company and approved the distribution of 15% cash dividends.

• Al Enma'a Real Estate Company sold its shares in the U.S. healthcare firm for a total amount of $3,217,857 realizing a profit of $1,185,517.

• Al Madina for Finance and Investment Company general assembly approved the distribution of 40% cash dividends and the distribution of 15% stock dividends. The general assembly also approved a rights issue of 100%.

• Aerated Concrete Industries Company general assembly approved the distribution of 55% cash dividends and the distribution of 5% stock dividends. The general assembly also approved to change the company’s name to Acico Industries Company.

• National Cleaning Company general assembly approved to increase the company’s capital through a 112.0131% rights issue at a par value of 100 fils plus a premium of 150 fils.

• Kuwait Company for Process Plant Construction and Contracting general assembly approved the distribution of 15% stock dividends and the distribution of 5% cash dividends.

• Combined Group Contracting Company general assembly approved the distribution of 75%cash dividends and the distribution of 10% stock dividends.

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• Aqar Real Estate Investments Company general assembly approved the distribution of 8% stock dividends.

• Agility Public Warehousing Company general assembly approved the distribution of 80% cash dividends and the distribution of 10% stock dividends. The general assembly also approved to increase the company’s capital by 25% through a rights issue.

• United Foodstuff Industries Group Company general assembly approved the distribution of 15% cash dividends and the distribution of 25% stock dividends.

• Pearl of Kuwait Real Estate Company general assembly approved the distribution of 10% cash dividends and the distribution of 10% stock dividends.

• Dar Al Dhabi Real Estate Company, Bayan Investment Company’s subsidiary, finalized the selling of its first phase of Al Reem Island, which is located in the UAE for a total amount of KWD 112,490,455.

• Safwan Trading and Contracting Company general assembly approved the distribution of 24% cash dividends.

• Hayat Communications Company general assembly approved the distribution of 10% cash dividends.

• International Investment Group general assembly approved the distribution of 10% cash dividends and approved the distribution of 25% stock dividends.

• Osoul Leasing and Finance Company general assembly approved the distribution of 5% cash dividends and the distribution of 10% stock dividends.

• Aviation Lease and Finance Company signed a $325 million contract with Aref Holding Group to sell five aircraft to the latter.

• The Public Warehousing Company-Agility general assembly approved to change the company’s name to Agility Public Warehousing Company. The general assembly also approved to increase the company’s capital through a 25% right issue.

• Real Estate Asset Management Company signed a KWD 1.526 million contract with First General Trading and Contracting Company to build a commercial building for the company in Ras Al Kheima.

• Gulf Petroleum Investment bought two offshore drillers for a total amount of $188.5 million.

• Global Investment House listed its shares on London Stock Exchange through GDR’s on May 21, 2008.

• Al Massaleh Real Estate Company general assembly approved the distribution of 10% stock dividends.

• Al Ahli Bank of Kuwait sold a parcel of land for an amount of KWD 5 million, realizing a profit of KWD 4.8 million.

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• National Real Estate Company general assembly approved the distribution of 20% cash dividends and the distribution of 10% stock dividends. The general assembly also approved to increase the company’s capital through a 30% right issue.

• Gulf Franchising Company general assembly approved to increase the company’s capital to KWD 23,2660,120 through 100% a private placement allocated to strategic investors.

• Arabi Holding Group general assembly approved the distribution of 5% cash dividends and the distribution of 5% stock dividends.

• Al Mowasat Holding Company general assembly approved the distribution of 10% stock dividends. The general assembly approved to cancel the 17.045% rights issue.

June

• Vending Network general assembly approved to increase the company’s capital to KWD 15 million from KWD 5.07 million through rights issue at a par value of KWD 100 fils per share plus a premium of KWD 100 fils per share and subscription cost of KWD 5 fils

• National Ranges and Real Estate Company signed a contract with the major contractor for its project in Abu-Dhabi. The contract worth KWD 171.204 million.

• International Investment Group entered a joint venture with Al Tawfeek Financial Group Company to set up an energy holding Saudi company with a capital of SAR 1 billion. International Investment Company will hold a stake of 30%-40% in the company.

• Gulfinvest International general assembly approved the distribution of 20% cash dividends and the distribution of 5% stock dividends.

• The consortium which includes Madar Finance and Investment Company in addition to Kuwaiti and Spanish companies signed a contract to build, operate and transfer the Amman-Zarqa light railway project in Jordan. The contract period is 30 years and amounts to JD 260 million. Al Madar Finance and Investment Company holds a share of 33.3% of the project.

• Kuwait and Middle East Financial Investment Company realized gains of KWD 3.78 million from selling its share in a Kuwaiti non listed company for an amount of KWD 6.6 million.

• Kuwait and Gulf Link Transport Company general assembly approved to distribute 40% cash dividends and 10% stock dividends. The general assembly also approved to increase the company’s capital by 20% through rights issue at a price of KWD 100 fils plus a premium of KWD 100 fils.

• Refrigeration Industries Company general assembly approved the distribution of 10% stock dividends and the distribution of 15% cash dividends.

• National Petroleum Services Company – Kuwait established a new limited liability company with a capital of KWD 100,000 under the name of International Petroleum Services Company.

• Kuwait Finance House received the Algerian Authorities approval to set up a $100 million Islamic Bank in Algeria.

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• The International Leasing & Investment Company annual and extraordinary general meeting approved the following:

o The distribution of 40% cash dividends.

o The distribution of 10% bonus shares.

o The cancellation of a capital increase through 35% rights issue.

• Hayat Communications Company signed an agreement to buy 50% stake in Enertech Company based in India for a value of $5 million.

• Union Real Estate Company acquired parcels of lands in Qatar Entertainment City for a value of KWD 29,950,210.

• Abyaar Real Estate Development Company’s annual extraordinary general meeting was held and approved 10% capital increase through a secondary offering.

• Boubyan Petrochemical Company annual and extraordinary general meeting was held and approved the distribution of 70% cash dividends and 5% bonus shares.

• Al Themar International Holding general assembly approved the distribution of 12% cash dividends.

• The International Warehousing Group Company, Mena Holding 70% owned subsidiary, sold a parcel of land for KWD 4 million. The company received net profits of KWD 1.26 million while its subsidiary realized a profit of total of KWD 1.8 million.

• Mena Holding signed a memorandum of understanding to set up a company in Bulgaria, which will develop real estate projects.

• Kuwait Resorts Company formed a joint venture with Commercial Real Estate Company, Kuwait Commercial Markets Complex, and Durrat Al Bahrain to establish Durrat Commercial Company with a capital of BHD 100 million where Durrat Al Bahrain will own 50% stake, Kuwait resorts Company will own 10% stake, Commercial Real Estate Company will own 30% and Kuwait Commercial Markets Complex will own 10%.

• Hits Telecom Holding Company acquired a 98% stake of class A and 91% of class B in Hits Africa Company for a total vale of KWD 52,746,740.

• Al Madina for Finance and Investment Company sold its 50% stake in Hits Africa Company to Hits Telecom Holding Company for a total price of KWD 29,263,310.

• Burgan Company for Well Drilling Trading and Maintenance signed a contract with National Oil Well Company for a total value of US 128 million for building five drilling platforms.

• Al Safat Investment Companyt acquired 60% stake in Egypt National Drilling Company for a total amount of $75 million.

• Grand Real Estate Projects Company entered a joint venture with its partners and strategic investors to establish a new company, under the name of Isdarat Holding Company, a Shariah compliant company with a KWD 500,000 paid-up capital. Grand will hold a 30 to 35% stake,

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where partners and subsidiaries will hold a 5 to 10% stake and the remaining 60% will be allocated to strategic investors, in the new venture.

• Kuwait United Poultry Company extraordinary general meeting was held and approved the company’s capital increase through 25% rights issue.

• Osoul Leasing and Finance Company extraordinary general meeting approved changing the company’s name to Osoul Investment Company.

• Bank of Kuwait and the Middle East received the Central Bank approval to convert into an Islamic Bank.

• Munshaat Real Estate Projects Company signing of a contract with an Omani company to build luxury villas with a cost of OMR 6 million. Munshaat will hold a 75% share in the projects.

• Gulf Construction Group, Jeeran Holding Company’s subsidiary, signed a contract to build a university in Libya. The contract worth KWD 29 million.

• A'ayan Leasing and Investment Company realized a profit of KWD 1.736 million from the selling of a parcel of land for an amount of KWD 4.201 million.

• Al Safat Investment Company bought a share of 60% in Egypt-based Roots Stock Brokerage Company for a total investment of EGP 38 million.

• Hits Telecom Holding Company general assembly approved to increase the company's capital to KWD 95 million from KWD 19.5 million through a rights issue of 205 million shares and a private placement of 550 million shares.

• Munshaat Real Estate Projects Company signed a contract with an Omani company to build luxury villas with a cost of OMR 6 million. Munshaat will hold a 75% share in the projects.

July • Al Enma'a Real Estate Company along with Beit Al Enma'a Real Estate Company based in

Bahrain bought two parcels of land for a total amount of BHD 10,338,446.

• Securities Group annual general meeting approved the distribution of 55% cash dividends.

• Mena Real Estate Company's general assembly approved the distribution of 12% cash dividends and 10% Bonus shares.

• Burgan Bank general assembly approved increasing the company's capital by 21% to reach KWD 114,666,433 through private placement for a price of 1 KWD per share.

• Vending Network's general assembly approved changing the company's name to Network Holding Company.

• Injazzat Real Estate Development Company realized profits of KWD 4.5 million through the sales of a number of land parcels in Bahrain.

• Agility Public Warehousing Company signed $750 million for providing logistics services for the electric power generation project located in Australia by which the company holds a stake worth $350,000.

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• AREF Investment Group sold 18% stake in a Kuwait Company for a price of KWD 28,799,999 to its Aref Energy Holding Company

• Hayat Communications Company signed a memorandum of understanding for a total value of KWD 4.1 million with National Mobile Telecommunications Company for the expansion of its network in Kuwait.

• Global Investment House sold its 34.61% share in Burgan Group Holding Company to Kuwait City Holding Company for a total amount of KWD 8,677,240.

• Al Safat Investment Company sold a parcel of land for a total amount of KWD 31.4 million realizing profits of KWD 1.35 million. The company also sold its 60% stake in National Drilling Company for a total amount of KWD 22.85 million realizing profits of KWD 2.69 million.

• Abraj Cleaning Building and Cities Contracting Company, Al Abraj Holding Company’s subsidiary, signed a preliminary agreement worth $600 million with a French company for waste recycling and energy project in Bahrain. Abraj Cleaning Building and Cities Company has a 40% stake in the contract.

• MENA Real Estate Company signed an agreement to sell a parcel of land in Qatar for a total amount of QAR 55,990,022 realizing a profit of QAR 16,464,000 (KWD 1,185,000).

• Hits Telecom Holding Company bought a 51% share in Spanish-based Metrored Telecommunication Company for a total amount of EUR 7 million. The Spanish company changed its name to Hits Telecom Spain.

• Kuwait International Bank realized profits of KWD 4.2 million from selling 2.69% stake in Industrial Bank of Kuwait through National Investment Company for a total amount of KWD 6,995,560.

• United Real Estate Company bought a parcel of land in Qatar for a total amount of QAR 407,042,813 .

• Al Reef Real Estate Company, United Real Estate Company’s subsidiary, signed a contract in Oman to develop commercial and touristic complex for an amount of OMR 14.5 million.

• National Ranges and Real Estate Company subsidiary signed an agreement to buy a parcel of land in Dubai for a total amount of KWD 30 million.

• Al Madina Real Estate Development Company, Al Madina for Finance and Investment Company 99% owned subsidiary, bought three towers in Al Reem Island for a total amount of AED 2.9 billion. The mother company’s 50% owned subsidiary Sarh Al Madina Real Estate Company bought a residential tower in Al Reem Island for a price of AED 508 million.

• Palms Agro Production Company signed of a KWD 1.17 million contract with the Public Authority for Agriculture and Fisheries.

• Mushrif Trading and Contracting Company general assembly approved to increase the company's capital to KWD 20 million from KWD 6 million through rights issue.

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• Turkapital, Kuwait Finance House’ subsidiary set up a company in Tararstan with a capital of $10 million. Turkapital holds a 75% stake in the new company and 25% stake will be held by Tatarstan government.

August • Mobile Telecommunications Company increased its total investments in Kenya to $1 billion

after investing another $375.37 million in the Kenyan infrastructure.

• Salbookh Trading Company general assembly approved to increase the company's capital by 100% through the following:

o Increasing the company's capital from KWD 10,237,500 to KWD 16,380,000 through rights issue.

o Increasing the company's capital from 16,380,000 to KWD 20,475,000 through a private placemen

• Burgan Company for Well Drilling Trading and Maintenance general assembly approved the distribution of 25% cash dividends and the distribution of 15% free shares. The general assembly also approved a rights issue of 10% at a price of KWD 0.45 per share.

• Kuwait United Poultry Company sold its 46% share in AL Manar Foodstuff Company, given that the value of investment is KWD 562,735 and sales value of KWD 195,532 and generating a loss of KWD 367,203.

• Agility Abu Dhabi, the owned subsidiary of Agility Public Warehousing Company, signed a contract for a total value $220 million with Borouge based in UAE for building Borouge Compound Manufacturing Unit & Shanghai Logistics Hub.

• Hits Telecom Holding Company launched its first mobile network Sao Paolo based in Brazil.

• Alafco Aviation Lease and Finance Company signed an 8-year contract with Saudi Arabian Airlines to lease the latter with eight new aircrafts for a price of $77 million per aircraft.

• Mushrif Trading and Contracting Company signed a one-year contract with UAE-based ALDAR Properties for the construction of the third phase of Abu Dhabi's Central Market for a total amount of AED 433 million.

• Mushrif Trading and Contracting Company in cooperation with Gulf Petrochemical and Trading Company and Green Line Trading and Contracting Company won a 780 day contract with Oman Wastewater Services Company for the construction of tunnels of the main stream channel in Oman for total contract worth OMR 54,971,569 where the company will be holding 8.34% stake in the project.

• Hayat Communications Company signed an $8 million MOU with China-based Huawei Technologies Company to expand the National Mobile Telecommunications Company's network.

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• Agility Public Warehousing Company was awarded a $140 million contract by the Marine Corps Logistic Command to store and maintain equipments for the US Marine Corps. The contract is for one year which includes six years option.

September • Pearl of Kuwait Real Estate Company acquired 42,000,000 shares in Al Zomorrouda Holding

Company for a price of KWD 0.29 per share and a realized profit of KWD 1.36 million.

• Pearl of Kuwait Real Estate Company sold 54.5 million shares in Business City of Kuwait to Mahmoud Haji Haidar and Sons Company for a price of KWD 0.22 per share.

• National Company for Consumer Industries acquired National Company for Paper Industry for a price of KWD 600,000.

• Hayat Communications Company entered a joint venture to establish a SAR 10- million company based in Saudi Arabia under the name Hayat Telecommunication Company. The company will own 50% stake in the new venture.

• Jeeran Holding Company owned subsidiary, United Gulf Construction Company, won a bid with the Ministry of Public to provide maintenance services for King Fahd Bin Abdul Aziz Road for a total value of KWD 5.5 million.

• Al Ahlia Holding Company 80% owned subsidiary, AREPCO Holding, sold its stake in a partner company realizing a profit of KWD 10,626,852.

• Kuwait Finance and Investment Company general assembly approved the allocation of 8,386,194 shares to the company's employees at a price of KWD 0.17 per share. In addition the company received the approval to a 30% rights issue at a price of KWD 0.2 per share.

• Kuwait Finance and Investment Company acquired 24.5% stake which is equivalent to 40,909,091 shares in the Arabian Capital Investment & Finance Company for a total cost of KWD 7,568,182.

• Educational Holding Group sold of part of the company's assets for an amount of KWD 12.955 million, booking a profit of KWD 5.4 million.

• National Cleaning Company won a KWD 1,468,886 five-year contract with with Kuwait National Petroleum Company to provide the North of Kuwait area with cleaning services.

• Burgan Company for Well Drilling Trading and Maintenance won a two year contract with Kuwait Oil Company. The contract worth KWD 16,586,163.

• Privatization Holding Company has signed a contract with the State of Zing Yang (China) in May 2008, to build an electricity power station with a cost of $65 million, of which the company will have a 15% share. The station has started operations with a production rate of 60 Mega Watt, to be increased to 390 Mega Watt.

• Al Ahli Bank of Kuwait general assembly approved increasing the bank's capital to KWD 131,765,069 from the KWD 109,804,224 through a right issue.

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• Arabi Group Holding Company was granted a tender offer worth KWD 10,296,000 from Kuwait National Petroleum Company.

• International Warehousing Group (Mena Holding subsidiary) realized a profit of KWD 1.8 million from the selling of a parcel of land for KWD 4 million. As a result, the company will realize a profit of KWD 1.26 million.

• IFA Hotels and Resorts general assembly approved the distribution of 20% stock dividends.

• ALARGAN International Real Estate Company sold 50% stake in one of its fully owned subsidiaries based in Bahrain for a total price of BHD 5,171,774 and a profit of BHD 2,100,000.

• Agility Public Warehousing Company fully acquiried Baisui Logistics Company based in China for a total cost of $50.5 million.

October

• Specialties Group Holding Company’ 99% owned subsidiary, Specialties Company, signed a contract with Kuwait Petroleum Company to supply pipeline drilling for a period of 25 weeks. The contract worth KِWD 1,559,000.

• Arabi Group Holding Company’ 60% owned subsidiary was granted KWD 4,796,385 tender offer by Kuwait Petroleum Company to supply maintenance and counter fire services.

• Al Madina for Finance and Investment Company subsidiary, Al Madina Real Estate Development Company, realized a profit of KWD 1,856,979 from selling a parcel of land for an amount of KWD 17,700,000.

• National Ranges and Real Estate Company fully owned subsidiary in the UAE, Mayadeen of Emirates Company, signed a contract to sell 4.36% of its housing units in Al Reem Island for a total amount of KWD 26,791,000 realizing a profit of KWD 15,481,000.

• Combined Group Contracting Company was granted a tender with Saudi Arabian Chevron & Kuwait Gulf Oil Company for a total value of KWD 6,836,780 to provide such companies with painting services.

• AREF Investment Group’ 70% owned subsidiary, Sudan Airways, was granted a compensation of $16 million for Sudan plane crash.

• International Resorts Company acquired 22.7% stake equivalent to 27.25 million shares in AL Marwa Hajj & Umrah Services Company for a price of KWD 2,861,250.

• Future Communications Company Global's fully owned subsidiary, Future Communications Company International, signed contract with Nokia Siemens for a total value of $11 million for the installation of equipments for 136 companies located in UAE.

• Abyaar Real Estate Development Company sold the remaining 50% stake of its residential units in Venty Quatro project based in UAE for a total price of KWD 36.5 million, realizing a profit of KWD 20 million.

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• Kuwait Cement Company signed a contract with Al Bahar Construction for Trading and Contracting to implement construction works for the second cement clinker production line project in Shuaiba. The contract worth KWD 12,450,000.

• Al Bareeq Holding general assembly approved increasing the company's capital from KWD 5.4 million to KWD 11 million through rights issue at a price of 100 files per share.

• The International Investor – Kuwait 55% owned subsidiary, Bayt Al Mal Holding Company, signed a contract worth SAR 7.5 billion to establish a real estate project in Saudi Arabia.

• Al Abraj Holding Company general assembly approved increasing the company’s capital from KWD 17 million to KWD 35 million through rights issue.

• The Commercial Real Estate Company participated with 8.33% stake in launched First Investment Bank based in Bahrain which has a capital of US 200 million.

• Al Madina for Finance and Investment Company on behalf of its subsidiaries signed contracts for acquiring 18 investment and commercial real estate units for a total price of KWD 45.47 million.

• Ekttitab Holding Company sold unlisted shares for a total value of KWD 5,215,065, realizing a profit of KWD 3,808,168.

November • Mushrif Trading and Contracting Company signed two contracts for a total value of

KWD 30,303,346 as follows:

1. A contract with Nakheel based in UAE for a total value of AED 222,778,832 for the completion of the infrastructure work in Al Arab City Area.

2. A contract with Abu Dhabi National Oil Company for the completion work of Ruwais Residential Complex.

• National Petroleum Services Company fully owned subsidiary, International Petroleum Services Company, signed a memorandum of understanding with Esnaad (subsidiary of Abu Dhabi National Oil Company) to provide oil wells stimulation services in UAE.

• National Cleaning Company’ 99% owned subsidiary, AL Jahra Cleaning Equipment Company, acquired 42.55% stake in Kuwait Asphalt Emuslion Company for a total cost KWD 2,225,150 in which the company holds 69.633% share in Esha's capital.

• Al Maidan Clinic for Oral Health Services signed a 1 year contract for a total value of KWD 693,000 with United Medical Services Company to provide financial services for the construction of Al Saif Hospital.

• Combined Group Contracting Company signed a 5 year KWD 6,836,780 contract with Saudi Arabian Chevron & Kuwait Gulf Oil Company to provide the latter with painting services for concrete.

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• Kuwait Company for Process Plant Construction and Contracting Company was granted a tender for a total value of KWD 2.85 million for providing maintenance services for the country's roads.

• Al Enma'a Real Estate Company sold a parcel of land for a price of BHD 3,730,743 with the realization of profits of BHD 1,160,676.

• Alafco Aviation Lease and Finance Company's general assembly approved the distribution of 5% cash dividends & stock dividends.

• Future Communications Company Global’ subsidiary, Future Technology International for Telecommunication Equipment, signed Telecommunication Equipment purchasing order with Zain Telecommunications Company for a period of six months and worth $2,535,464.

December • Gulf Bank's extraordinary general assembly approved increasing the bank's capital by 100%

from KWD 125,385,118 to KWD 250,770,236 through the issuance of 1,253,851,183 new shares at a par value of 100 Fils/share & an issue premium of 200 Fils, given that the priority in subscription will be given to the existing shareholders. Kuwait Investment Authority (KIA) will cover the increase in the number of shares in which no subscription is made by the Bank’s shareholders.

• Mazaya Holding Company's general assembly approved the distribution of 50% cash dividends.

• Commercial Bank of Kuwait bought a 19% share in Boubyan Bank for a total amount of KWD 94.1 million.

• Abyaar Real Estate Development Company general assembly approved increasing the company's capital through 100% rights issue at a price of KWD 0.125 per share. The company's capital will increase from 533,637,500 shares to 1,067,275,000 shares.

• Mena Holding general assembly approved increase the company's shares from 299.9 million shares to 400 million shares through rights issue at a price of KWD 0.3

• Al Abraj Holding Company signed the following contracts with Kuwait Systems for General Trading and Contracting:

o A contract worth KWD 5,798,612 to supply Kuwait Petroleum Company with maintains services.

o A contract worth KWD 11,554,140 to provide construction services in Houkoul area.

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New listing- 2008 / KSE


Jazeera Airways 200 January 14th 2008

Afaq Educational Services Company 50 March 19th 2008

AlShamel International Holding Company 30 March 24, 2008.

Ithmar bank 2,149.896 March 31st 2008

Ikarus Petroleum Industries Company 750 April 14th 2008

Kuwaiti Syrian Holding Company 300 June 2nd 2008

Mena Real Estate Company 170.13 June 9th 2008

Al Soor Fuel Marketing Company 300 June 30th 2008

Dulaqan Real Estate Company 30 October 20th 2008

Kuwait Business Town Real Estate Company 546 December 16th 2008

Future Kid Entertainment and Real Estate Company 107 December 18th 2008

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United Arab Emirates

Economic Snapshot

UAE is one of the fastest growing countries in the Middle East given that GDP went up by 112% times between its independence in 1971 and the year 2007 supported by its rich oil reserves that fueled its economic and financial platform. Nevertheless, and despite the fact that the country holds 7.8% of world oil reserves and ranks 5th in this aspect, UAE focuses on investing in other alternative sources of income, mainly services infrastructure and real estate in specific.

The federation of the country is formed of seven Emirates including Dubai, Abu Dhabi, Sharjah, Ajman, Al-Fujayrah, Um Quwain and Ras Al-Khaima, which are governed by the Federal Supreme Council (FSC) of rulers. Abu Dhabi and Dubai, the largest two Emirates, dominate the UAE economy and stock trading through Abu Dhabi Stock Exchange, Dubai Financial Market and NASDAQ Dubai.

Property prices witnessed an ascending development that started several decays ago especially in 2005 when the famous boom of real estate struck and contributed 12% to GDP of that year. Construction continued its progress up to 2008 as the Central Bank of the UAE revealed that the banking system extended AED 84,912 million for residents to finance construction projects by June 2008 compared to AED 61,172 million registered the same period in 2007.

Foreign investors represent a significant yardstick in the economy of UAE; foreign investments are reinforced by encouraging legislations given that non residences can own up to 49% for limited liability companies supported by no trade barriers or quotas. Free zones like Jabal Ali- provide positive initiatives as well, guaranteeing 100% foreign ownership right free of taxes and duties along with full repatriation of profits.

The economy of UAE witnessed some retreat in the index of economic freedom issued by the Heritage Foundation and the Wall Street journal for 2008 as it scored 62.8%; 0.1 percentage point lower than previous year's score. The country performed well ahead of some international averages in regards to fiscal, trade and labor freedom. Tax exemptions led the country to score 99.9% on fiscal freedom since customs duties go as low as 4% and all sorts of income are tax exempted except for those that are related to foreign oil companies' income and foreign banks. In addition, flexible employment regulations enabled the county to bypass the global average. On another hand, working hours flexibility needs more improvements while employment security is under question as lay offs were explicit among real estate companies.

As for corruption rating, lower levels of corruption that characterized the emirates, was reflected in the score allocated to it over the Corruption Perceptions Index. UAE scored 5.9 and came second on the regional level after Qatar and the 35th on the world.

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Oil is not the only fuel for the UAE economy as solid tourism and aviation infrastructures enforces the country’s economic position. High level of security and the favorable winter atmosphere steered both sightseeing and shopping tourism in Abu Dhabi and Dubai. Developmental endeavors were not targeted for Abu Dhabi until oil was discovered; currently a modern platform of air and seaports, highways, hotels and telecommunication systems turned this emirate into an active center for tourism.

Dubai - which is known to be the shopping capital of the Middle East- is influenced by tourism since about 20% of its GDP is tourism related. Aviation industry has a role given that 90 airlines providing direct flights to over 130 cities worldwide are in Dubai; the aviation industry witnessed a continuous growth despite the fuel crisis in 2008, Emirates Airlines was able to maintain its ranking as the world's ninth best airline as ranked by the British aviation consultancy firm, Skytrax.

The year 2008 was not an easy year on the UAE economic and financial system; the Central Bank of UAE cut REPO interest rate twice during January from 4.25% to 3%. The scenario of cuts continued to exhibit throughout the remaining months of the year as interest reached 2.25% in March, 2% in May and settled at 1.5% in October.

As being strongly connected to global markets, the UAE was highly exposed to the global financial crisis. Fuel prices displayed an aggressive upward trend reaching a peak of $ 147.27 per barrel on July 11th 2008 to start a journey of severe correction in the second half of the year synchronized with the global financial crisis symptoms. Naturally, such turbulence cascaded a direct effect on the country's economy given that UAE is one of the major oil producing countries in the world and oil revenues comprise a considerable percentage of the GDP.

Property market trouble was the other part of the scenery of the disturbed economy; despite the fact that real estate prices grew by 5% during the third quarter of 2008, they went back to drop significantly during the remaining period of the year as borrowing became no longer affordable with banks imposing strict lending conditions. British bank Lloyds TSB for instance stopped offering housing loans for apartments located in the UAE and decreased the extended financing of villas to 50% only. There are expectations that next year's growth in credit facilities will be at a slower pattern laying in the range of 5% to 10%

The crisis influence is expected to continue until the end of this year as the IMF estimates the growth in the real GDP to reach 7%. While the increasing prices of rents and building materials are expected to drive the average inflation to 12.9% compared to 11.1% calculated for 2007 placing it the second highest in the gulf after Qatar.

The Government of Dubai expects to register the first budgetary deficit in 2009 corresponding to the declining oil prices. The Emirates is planning to increase the governmental spending by 11% to reach AED 37.7 billion and the deficit is expected to stand at AED 4.2 billion.

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Indicator Value Gross domestic product, constant prices- annual percentage rate 6.964% Gross domestic product per capita, constant prices AED 94,350.483 Population 4.764 millions Current account balance- US dollar $ 60.913 millions Current account balance as a percentage of GDP 22.564%

Source: IMF

Indicator 2007 2008 2009 2010 GDP- Constant Prices ( in AED billions ) 420.214 449.479 476.517 503.044

Real growth in GDP 7.4% 7% 6% 5.567 Inflation (Average) 11.1% 12.9% 10.8% 8.12%

Source: IMF

Dubai – Economic Snapshot

Dubai incorporates a varied and heterogynous mixture of cultures that nurtured its prosperity across the past decades. The investment climate of Dubai is solid enough to attract external and local businesses due to the low logistical and operational cost.

Dubai enjoys a great deal of economic and political stability capped by a government that facilitates operations. In addition to protection of intellectual property rights, Dubai government provides a well-framed legal and financial system with a clear set of ownership rules that go consistent with the overall investment strategy of the country.

High buildings and towers are common scenery that frames Dubai in particular. Therefore, the credit crunch that melted into the global financial crisis severely left an unforgettable mark on the construction industry in Dubai as property prices dropped by 4% from September to October after relatively recording a good performance during the first three quarters, mortgage funding slowed down with more and more people offering their property for sale*.

Adding more trouble to the deteriorating real estate sector was the scandals that surrounded big names back in August like Nakheel, where charges were pressed against its sales manager for bribery acceptance that reached about $ 815 million. News also reported that other companies like Deyaar Development Co, Sama Dubai and Tamweel were exposed doing the same corruptive practices.

* HSBC Global Research (14 October 2008), Global Emerging Markets- UAE Real Estate

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Property losses were explicit as months rolled leaving real estate companies with no other choice but to search for ways to cut cost through layoffs. Nakheel adopted this strategy and canceled 500 jobs, Damac and Arabtic respond the same way while companies like Emaar properties and Dubailand developer Tatweer announced that they will review their recruitment policies.

In the middle of the crisis, Dubai continues to be a strategic hub, proving nothing but a sound economic platform that may be hiding more surprises in the future. In spite of Moody's devaluation of banks in Dubai; the State owned companies were granted $ 8 billion credit from the Citibank by December.

Dubai Financial Market - DFM

DFM

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000


DFM commenced this year with a negative rate of growth as it closed the trading of the first quarter on a decrease of 9.78% to settle at 5,351.89 basis points. Material sector registered the highest incline of 37.73%, while utilities, telecom and real estate & construction sectors lost more than 20% of their indices. The declining trend was mostly displayed in March, which registered a retreat of 8.78% despite the disclosed annual results of listed companies that came positive at most.

Second quarter’s trading redeemed a slight recovery as DFM closed at 5,443.78 basis points; 1.72% up when compared to the pervious quarter. Telecom sector displayed the highest progress with a percentage of 5.52% but still didn’t offset its YoY losses.

In the third quarter, DFM suffered from a severe decline loosing 24.18% of its value and closing below the 5,000 points when it reached to 4,127.63 basis points by the end of the quarter. Tamweel’s losses overlapped 50% during this quarter as foreign investors shrunk their ownership stake in company’s capital on the back of the uncovered bribery scandals the company had. Dubai financial market endured the biggest losses in that quarter in September as it retreated by 13.34% synchronous with the global market’s losses during that month.

By the beginning of the final quarter, the market witnessed one of its greatest drops as October index levels went below 3,000 points when it closed at 2,922.66 points on 27th October for the first

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time since the beginning of the year. By the end of the same month, the index lost 50.40% of its level from January 1st 2008. Additionally, Utilities and real estate sector’s indices deteriorated significantly, as both lost more than 60% of their values on yearly basis.

DFM index lost 72.42% of its value during the year 2008 when it closed at 1,636.29 basis points compared to 5,931.95 basis points registered by the end of 2007. All sectors registered yearend losses; indices of Banks, Investment & Financial Services, Real Estate & Construction, Transportation, Telecommunication and Utilities lost more than 50% of their value within a year with the Utilities index on the top of decliners’ list with 83.66% loss followed by the real estate sector that dropped by 82.63%.

2,131,077 transactions were conducted on 76,508,242,542 shares with a total value of AED 305,176,078,488.

Out of 47 traded companies, 14 companies registered a positive growth versus 33 companies declined in their stock performance.

Major News of 2008

January

• Arabtec Holding revealed that its subsidiary has been granted tender by Dubai Municipality to construct rain water drainage networks and sewage projects. The tender’s worth an AED 54.5 million.

• National Central Cooling Company has entered a joint venture with Sorouh Real Estate Company to establish a new company, S & T Cool District Cooling Company.

February • Saudi-based Arabian Company for Water and Power Development bought a 40% stake in

Multiforms Company, a subsidiary of Emaar.

• Arabtec Engineering Enterprises Company, a subsidiary of Arabtec Holding was awarded an AED 277 million contract by Damac Investments and Properties.

• Arab Orient Insurance Company – UAE general assembly approved the distribution of AED 29.9 cash dividends and the distribution of 25% free shares.

• Emirates Thermostone, Dubai Investments subsidiary, was awarded an AED 5.7 million contract to supply construction materials to Dubai Marina and Dubai Industrial City projects.

March • Target Engineering Construction Company, Arabtec Holding subsidiary, was awarded three

contracts for the construction of:

AED 600 million commercial center in Abu Dhabi. AED 96 million Quality Control Laboratory Building in Abu Dhabi.

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AED 96.4 million Police complex.

• National General Insurance general assembly approved the distribution of 40% cash dividends.

• Emaar Properties has entered a joint venture with Syrian-based Cham Holding Company to establish a new company under the name of Emaar Sham, in which both companies will hold a $ 100 million stake.

• Tabreed distributed 7% cash dividends and the issuance of $300 million convertible Sukuk.

• Shuaa Capital received the approval to start operations in Saudi Arabia.

• Dubai Islamic Bank general assembly approved the distribution of 40% cash dividends and 15% free shares.

• Mashreq Bank was appointed as the lead arranger by Oman Telecom of a $ 205 million loan to finance the acquisition of the Pakistani World Call Telecom Company.

• Dubai National Insurance and Reinsurance general assembly approved the distribution of 35% cash dividends. The general assembly also approved to allow foreign ownership of up to 25% of the company's capital.

• Dubai Insurance Company approved the distribution of 33.3% free shares.

• Amlak Finance approved the distribution of 10% cash dividends

• Emaar Properties general assembly approved the distribution of 20% cash dividends.

• Emirates NBD general assembly approved the distribution of 35% cash dividends and the distribution of 15% free shares.

• Amlak Finance general assembly approved the issuance of AED 1.8 billion convertible Sukuk and the issuance of AED 3 billion non-convertible Sukuk.

• Arabtec Holding general assembly approved the distribution of 50% cash dividends.

• Dubai Financial Market general assembly approved the distribution of 10% cash dividends.

April

• Gulf Navigation Holding’ general assembly approved the distribution of 7% cash dividends.

• Arab Insurance Group general assembly approved the distribution of 7.5% cash dividends.

• Al Mazaya Holding Company general assembly approved the distribution of 50% cash dividends and the distribution of 20% free shares. The general assembly also approved a private placement of 75 million shares.

• Tamweel general assembly approved the distribution of 21.8% cash dividends.

• Dubai Islamic Insurance and Reinsurance Company general assembly approved the distribution of 10% cash dividends.

• Alliance Insurance general assembly approved the distribution of 20% cash dividends and 25% stock dividends.

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• Tamweel general assembly approved the issuance of AED 5.1 billion convertible and non-convertible Sukuks. The General assembly also approved to convert the company into a holding company.

• National Central Cooling Company general assembly approved the distribution of 7% stock dividends and the issuance of convertible Sukuks in $.

• Arabtec Holding subsidiary, Arabtec Construction, was awarded an AED 3 billion contract by Mohammed Bin Rashid Housing to develop villas.

• Al Sagr National Insurance Company signed a preliminary agreement to buy a 55% stake of an insurance company in Jordan.

• United Kaipara Dairies general assembly approved the distribution of 30% cash dividends.

• United Foods Company general assembly approved the distribution of 10% cash dividends.

• Gulf Navigation Holding general assembly approved to increase the non-GCC national to own up to 20% of the company’s shares.

• Union Properties general assembly approved the distribution of 10% stock dividends.

• National Central Cooling Company obtained the ministry approval to open the GCC ownership in the company up to 100%.

• Emirates Islamic Bank general assembly approved the distribution of 25% stock dividends and approved a right issue of 565,625,000 shares at AED 1 per share.

• Arabtec Construction, Arabtec Holding subsidiary, won a contract in Russia to build the first phase of the Okhta Center. The contract worth AED 10 billion.

May • Deyaar Development Company has ended its MOU with India-based Ansal Properties and

Infrastructure.

• Amlak Finance signed of an MOU with First Dubai Real Estate Development Company to buy Sky Garden Residential tower for a total amount of AED 1.65 billion.

• Emirates Integrated Telecommunications Company signed a financing loans facility for a total amount of AED 3 billion.

• Dubai Islamic Insurance and Reinsurance Company general assembly approved a stock split of 1:10 and approved to set the foreigners ownership limit at 15%.

• Moody’s assigned Shuaa Capital long term issuer rating of Baa2, short-term issuer rating of Prime-3 and a standalone financial strength rating (‘FSR’) of Ba1. The outlook on all ratings is stable.

June • Tamweel established a fully owned subsidiary under the name of Tamweel Properties and

Investments LLC with a capital of AED 400 million.

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• Amlak Finance did not complete the acquisition of Sky Garden Residential tower, located in the UAE, because First Dubai Real Estate Development Company was not able to meet the terms of the MOU.

• Dubai Islamic Insurance and Reinsurance Company obtained the Syrian Insurance Committee’s approval to set up Aman Syria Islamic Insurance.

• Al Nakheel Company signed a AED 2.9 billion contract with Arabtec Holding for the construction of 1,500 homes in Al-Fujran Development starting on August 2008.

• Al Salam Bank- Sudan received an approval from Emirates Securities and Commodities Authority to list 100 million shares on DFM at a par value of $ 1 effective June 5th, 2008.

• Al Nakheel Company was awarded Al Habtoor & Murray & Roberts a AED 2.9 billion contract to construct the Trump International Hotel and Tower on Palm Jumeirah.

• Al Mazaya Holding Company signed an agreement with Amlak Finance to acquire 80% of Sky Gardens Tower at Dubai International Financial Center for a value of AED 1.65 billion.

• Gulf Finance House launched a Shari’ah compliant UK commercial property fund.

• Emaar Properties’s subsidiary Emmar Healthcare Group formed an alliance with Methodist International (USA) for building, and managing build health care centers in MENA region and Turkey. The company's first hospital will be the Burj Dubai Medical Centre and clinics, located in Emaar’s Arabian Ranches.

• Shuaa Capital general assembly approved the distribution of 45% cash dividends.

• Nakheel signed a corporation agreement with Dubai Islamic Bank to establish Real Estate Company under the name of Tashyed, also Nakheel signed an agreement with Trump International to launch Trump International Hotel & Tower project in Palm Jumeirah with a cost of AED 2.9 billion.

• Dubai Islamic Bank arranged Islamic Financing totalling AED 824 million for Hamad Group to finance a portion of the Ramraam project coming up in Dubailand.

July • Nakheel signed of a contract with Shafar Transport and Contracting Company to construct 300

villas at Al Furjan Development. The contract worth AED 600 million.

• Dubai Islamic Bank arranged Islamic Financing totalling AED 824 million for Hamad Group to finance a portion of the Ramraam project coming up in Dubailand.

• Shuaa Capital received the Securities & Commodities Authority and the UAE's Ministry of Economy approval to allow the GCC citizens to acquire shares in the company given that the UAE citizen's stake in the company's capital is not less than 51% ownership limit.

• Arabtec Holding has received a letter of acceptance amounting to AED 599 million from Emaar to design and construct 550 villas at Warsan Development in Dubai. The construction period is 30 months.

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• Dubai Islamic Bank launched of a new Shariah compliant legal and financial consultancy firm. The new company's name will be Dar Al Sharia Legal & Financial Consultancy LLC.

August • Arabtec Holding received a contract for a total value of AED 1.6 billion from Emmar Bawadi

for the design and construction of 1437 villas for the Bawadi project located in Dubai Land.

• Islamic Arab Insurance Company received the rating of A.M. agency as the following:

Financial strength rating as A- with a stable outlook. Issuer Credit rating as A- with a stable outlook.

September • A consortium includes the Dubai Islamic bank besides Jordan Dubai Capital and Dubai

International Capital acquired a 52% stake in Jordan-based the Industrial Development Bank (INDV).

• Mashreq bank along with Emirates Bank International, Samba FInancial Group, and Noor Islamic Bank has launched an AED 4.4 billion syndication for Nakheel Development Limited.

• Emaar Properties received the Emirates Securities and Commodities Authority's approval to buy back a maximum of 10% of its outstanding shares effective October 1st, 2008.

• Arabtec Construction, Arabtec Holding subsidiary, received a letter of intent from Sunland Group for the construction of “The Atrium” project for a total value of AED 2.4 billion based in Waterfront(Dubai).

• Islamic Arab Insurance Company entered a strategic alliance with DWS Investments (global mutual fund arm of Deutsche Bank) to grant its customers access to DWS Noor Islamic Funds.

• M’Sharie's subsidiary Emirates Thermostone was awarded multiple contracts for a total value of AED 9.4 million to provide Autoclaved Aerated Concrete to UAE projects comprising Dubai Silicon Oasis Project and development projects in Abu Dhabi.

• Emaar Properties won the lawsuit against Jadawel International after five years of legal disputes.

• Dubai Investments divested 40% of its stake in its wholly owned subsidiary M’Sharie in a private placement of the latter allocated to National Bonds Corporation based in UAE, Gulf International Bank based in Bahrain, Al Mal Capital based in UAE, The First Investor based in UAE, Al Arif Investment based in UAE, Abdulaziz Alajlan Sons based in KSA and Ali Bin Hassan Dayekh based in KSA.

• Gulf General Investment Company’s owned subsidiary Stock Sceutities merged with Baader Bank GBCM where the new merged company will be known as Gulf Baader Capital Market.

October

• Emaar Properties and Al-Shoala Group entered a SAR 27 billion joint venture project under the name of Rawabi Rumah, near Riyadh.

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• Arabtec Construction, Arabtec Holding subsidiary, was granted contract worth AED 550 million from Dubai Properties to supply construction works for residential buildings in Mudon General Residential apartment’s project.

• M’Sharie, Dubai Investments subsidiary, acquired 51% stake in Anchor Allied LLC based in Sharjah.

• Dubai Investments along with Abu Dhabi Water & Electricity Authority, Tasameem Real Estate, Gulf Finance House, Emirates Islamic Bank, Khaleeji Commercial Bank, Capital Management House, Bahrain Islamic Bank, Al Jabr Trading Company invested in the First Energy Bank to increase the latter's capital from $ 750 million to $ 1 billion. Moreover, the company acquired 5% stake equivalent to 50 million shares in First Energy Bank for $ 65 million.

• Arabtec Holding subsidiary, Arabtec Construction, that it is negotiating with Greek-based Aktor the development of the Cleveland Clinic in Abu Dhabi for an amount of AED 7 billion.

• Dubai Financial Market signed a Depository Participant Agreement with Citibank to provide custody for DFM-listed securities to institutional & international investors.

• Emaar Properties bought back 200,000 shares of which 100,000 shares were bought at a price of AED 5.6/share and another 100,000 shares at a price of AED 5.5/share.

November • Air Arabia sat plans to commence operations from the new hub in Morocco, under the new

airline “Air Arabia Maroc”, in the beginning of 2009, which still awaits the government approval.

• The UAE Ministry of Finance has started the official procedure to merge Amlak Finance and Tamweel under the UAE Real Estate Bank.

December • Aramex obtained the Securities and Commodities Authority approval to buyback a maximum

of 10% of its shares.

New Listings- 2008 / DFM

Company Name Number of Shares ( in Millions) Listing Date Ekttitab Holding Company 47 May 29th 2008 Al Salam Bank - Sudan 100 June 5th 2008 Ajman Bank 550 June 22nd 2008 Takaful Al Emarat - Insurance 82.5 July 20th 2008 Dar Al Takaful 55 August 4th 2008 Kuwait Finance and Investment Company 419.310 August 3rd 2008 National International Holding Company 212.625 October 27th 2008 Al Jazeera Steel Products Company 124.898 December 18th 2008

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NASDAQ Dubai

NASDAQ Dubai – formally Dubai International Financial Market- was established 2005 in Dubai International Financial Center. This special exchange serves as an interface between western Europe and Eastern Asia as it covers different regions across the world including United Arab Emirates and the rest of the Gulf Cooperation Council (GCC), the Middle East and North Africa, Turkey and the Indian sub-continent.

During 2008, the exchange changed its name to NASDAQ Dubai to reflect its connection to NASDAQ OMX, the world's largest exchange company, as its shares were listed on November 20th 2008

Different listings took place in 2008; DAMAS raised $270.6 million from institutional investors at a price of one dollar per share, the second issue of Nakheel's $ 750 million of Trust Certificates (the "Sukuk") prevailed in January, following the first issue of $ 3.52 billions realized in 2006. Later, BH Global Ltd. and BH Macro Ltd funds listed their shares on November 21st 2008

It is worth mentioning that the exchange embraced the biggest IPO in the region, Dubai Ports World in 2007 with an offering size of $ 4.96 billion and over subscribed by 15 times.

Abu Dhabi Economic Snapshot

Abu Dhabi, the capital, occupies the largest area of the United Arab Emirates and is the second biggest Emirate in terms of population after Dubai. Since the country’s independence in 1971 and the city is going through different phases of progress and sophistication; it started with a population of 800,000 persons while the government of Abu Dhabi anticipates over 3 million people to be dwelling Abu Dhabi by the year 2030.

The fact that Abu Dhabi is rich in terms of natural resources made it the primary generator of energy for the country. Hydrocarbon fields of AD inject the country’s economy with a big portion of oil and Gas that directly contributes to governmental revenues. About 85% of UAE's oil production and over 90% of oil reserves are in Abu Dhabi, major oil fields includes Umm Shaif, Lower Zakum, Upper Zakum, Al Bunduq and Abu al-Bukhoosh. In addition, around 92% of the country’s gas reserves are in Abu Dhabi, Khuff gas reservoir which lies beneath the oil fields of Umm Shaif and Abu al-Bukhoosh ranks among the largest single gas reservoirs in the world.

The Emirate of Abu Dhabi ranked first in terms of the average per capita GDP among the other emirates, it amounted to AED 204,000 in 2007 and is anticipated to be near to AED 222,000 in 2008, economic activity is expected to contribute by 63% to UAE’s overall GDP in 2008.

Preliminary data issued from the Abu Dhabi Chamber of Commerce for 2008 uncovers that the crude oil is expected to pour AED 305,087 million into the country’s GDP of which Abu Dhabi’s input is projected to contribute of 98.04% with a value of AED 299,097 million.

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Oil is not the only area of concern to the government of Abu Dhabi as non oil / gas projects are on its developmental agenda; the governmental plan of the city by the year 2030 concentrates on developmental initiatives and structural reforms in diversified sectors including industrial, educational, financial, tourism, infrastructure in addition to Energy.

According to Abu Dhabi Chamber of Commerce, total allocated funds for investments up to the year 2010 are $ 168 billion of which the construction sector will receive the highest stake of $ 87 billion followed by tourism with $ 33 billion and industrial with $ 16 billion.

Credit crunch had a relatively less harmful effect on Abu Dhabi when compared to its neighbor; Dubai. The city managed to maintain a good level of stability in the middle of the global financial crisis in effect of its excess reserves and its richness of natural resources. As for real estate sector, no project work was cut in the middle for distress.

Abu Dhabi Exchange- ADX

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Abu Dhabi Stock Exchange’s exposure to the financial markets turbulence came at a limited margin when compared to Dubai. ADSM was able to maintain 52.51% of it value as its accumulated losses by 47.49% during the year while DFM depleted by 72.42% during the same period.

ADX performance during the first quarter witnessed some turbulence but was able to close at a positive change of 0.1% standing at 4,556.37 points compared to 4,627.01 points registered by the end of 2007. The industrial sector managed to achieve the highest increase with a percentage of 23.83% mainly led by Abu Dhabi Aviation Company (ADAVIATION) that came on the top of the advancers list.

The positive pattern continued as the month of April witnessed an increase of 8.39% in the index landing at 4,988.86 point, the progress continued into May when the index inclined by 0.98% before starting the retreat journey south as June trading took the index back to 4,953.83 basis points.

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On the quarterly level, ADX recorded an increase of 8.72% during the second quarter led by the construction sector performance that realized a progress of 25.89%, followed by consumer sector that ascended by 25.85%. Two of construction main players came on the list of top gainer; Fujairah Building Industries (FBICO) and Ras Al-Khaimah Cement Co. –(RAKCC) increased by 99.7% and 89.84% respectively.

A significant drop struck in August as real estate sector's bribery scandals that prevailed in the UAE cascaded its influence on its performance, the sector's index lost 20.38% of its value in a matter of a month responding to the heavy liquidation transactions. Such performance pressed heavily on the general index that could not avoid the loss of 11.31% of its value when it closed at 4,413.40 points at the month end.

The index broke the 4,000 points level on September 14th when it closed at 3,925.08 for the first time since 17th October 2007. Depletion continued to occur until the end of the quarter to register a quarterly drop of 20.13% when the index closed at 3,956.72 basis points.

Trading registered other major declines throughout the remaining quarter of the year; November witnessed another level break as the index went below 3,000 points on November 11th reaching 2,975.28 basis points for the first time since January 2007. By the end of the month the index reached 2,775.85 points, simultaneously, Energy and real estate indices recorded a year to date losses of 63.19% and 58.42% respectively.

Losses continued to accumulate during December as trading was negatively affected with the pessimistic projections of Gulf’s Sovereign Funds performance in the UAE for the year 2009. The market landed on the lowest spot of the year by the closing day of December 25th 2008 when the index settled on 2,281 basis points to realize some recovery during the remaining three days of the year. December ended on monthly losses of 13.9% when its trading closed at 2,390.01 basis points.

On the quarterly level, ADX endured the highest losses during the last quarter as the index declined by 39.60% within 3 months affected again by the energy and real estate sectors which continued in their sliding trend to end that quarter by 56.48% and 52.67% in a row.

On annual basis, Abu Dhabi Exchange lost 47.49% of its value as the index concluded the year’s trading on 2,390.01 basis points compared to 4,551.8 basis points recorded by 2007 yearend.

Energy sector, which is composed of three companies, lost 70.35% of its value as DANA GAS lost 74%, TAQA retreated by 70.58% and Aabar Investments Co's stock decreased by 51.09%.

Real estate sector witnessed 66.77 % retreat during 2008 after being the top advancer in 2007. Heavy selling pressure took RAK Properties’ 4,891,516,676 shares to the first place in the decliner's list when the stock lost 79.27% of its value during the year.

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The annual trading value reached AED 231,958,195,731 while 49,930,968,797 shares were traded though 1,126,371 transactions throughout the year.

As for individual stocks performance, 63 companies were traded, 16 of which managed to close on a positive change versus 45 stocks that declined and 2 companies remained unchanged.

Major News of 2008

January • Emirates Telecommunications Corporation increased its stake in Canar Telecommunications

Company (Sudan) to 82% after acquiring an additional 45%.

• Emirates Driving Company board of directors met and proposed to distribute 20% cash dividends.

• Abu Dhabi National Energy Company was granted a $ 3.1 billion credit facility by a group of international banks. The term of the facility is one year

• Bin Salem Group has bought 40% stake in Methaq Takaful Insurance Company.

• A consortium of Emirates Telecommunications Corporation-Etisalat and Iran based-Tamin Telecom was the highest bidder in the tender opening of the third mobile network license in Iran.

• Foodstuff and Mineral Water Company acquired Al Ain Vegetable Processing & Canning Factory.

• Gulf Medical Projects Company general assembly approved to increase the company’s capital by AED 350 million to AED 460 million through a rights issue.

February • United Arab Bank general assembly approved the distribution of 11% cash dividends and the

distribution of 12% free shares.

• First Gulf Bank general assembly approved the distribution of 10% free shares and 20% cash dividends.

• Union Cement Company general assembly approved the distribution of 15% free shares and the distribution of 15% cash dividends.

March • Waha Capital general assembly approved the distribution of 5% free shares and 5% cash

dividends.

• Abu Dhabi Islamic Bank approved in its general assembly the payment of 20% cash dividends and the split of the company's shares par value from AED 10 to AED 1 to increase its capital by converting Sukuk into 47 million shares.

• Union National Bank received the approval from Qatar Market Regulator to operate in Qatar.

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• Aabar Energy shareholders approved the sale of its fully owned subsidiary Pearl Energy to Mubadala Development Co. for $833.3 million

• United Arab Bank approved the payment of 12% cash dividends and the distribution of 12% bonus shares.

• Dana Gas singed an agreement with Sharjah government for duration of 25 years regarding the development of western offshore concessions in the UAE.

• Sharjah Islamic Bank general assembly approved to increase the bank’s capital to AED 2,200 million from the current AED 1,100 million through the distribution of 20% free shares and a right issue of 880 million shares at a price of AED 2.

• Umm al-Qaiwain Cement Industries general assembly approved the distribution of 15% cash dividends and the distribution of 10% free shares.

• RAK Ceramics general assembly approved the distribution of 20% free shares.

• Oman and Emirates Investment Holding Company acquired a 10% stake in Oman-based National Aluminum Products Company.

• Fujairah Building Industries general assembly approved the distribution of 15% free shares and 10% cash dividends.

• Emirates Insurance Company general assembly approved the distribution of 75% cash dividends.

• ALDAR Properties received the ESCA and the ministry approvals to convert Sukuk into 23,776,127 shares on March 17, 2008.

• Sharjah Cement and Industrial Development Company general assembly approved the distribution of 50% cash dividends and 7% free shares.

• Commercial Bank International general assembly approved the distribution of 5% cash dividends and 15% free shares.

• National Bank of Umm Al Qaiwain general assembly approved the distribution of 50% free shares. The general assembly also approved a 50% rights issue.

• Sorouh Real Estate Company general assembly approved the distribution of 12% cash dividends.

• National Bank of Abu Dhabi general assembly approved the distribution of 20% free shares and the distribution of 40% cash dividends.

• National Bank of Fujairah general assembly approved the distribution of 15% cash dividends.

• Emirates Telecommunications Corporation general assembly approved the distribution of 20% free shares.

• Arkan Building Materials Company general assembly approved the distribution of 10% cash dividends.

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April • Abu Dhabi Ship Building Company general assembly approved the distribution of 10% cash

dividends.

• Emirates Driving Company general assembly approved the distribution of 20% cash dividends.

• Emirates Driving Company general assembly approved the distribution of 20% cash dividends.

• Foodco Holdings general assembly approved the distribution of 20% cash dividends.

• Gulf Pharmaceutical Industries general assembly approved the distribution of 5% stock dividends and 10% cash dividends.

• Al Khazna Insurance Company general assembly approved the distribution of 10% cash dividends and the buy back of 10% of the company’s outstanding shares. The general assembly also approved to allow the GCC nationals to own up to 25% of the company’s shares.

• National Marine Dredging Company general assembly approved the distribution of 15% cash dividends and the distribution of 18.34% stock dividends.

• ALDAR Properties signed a four-year AED 2.2038 billion syndicated Ijara Facility with Abu Dhabi National Islamic Finance, Abu Dhabi Commercial Bank, Dubai Islamic Bank, Badr Al-Islami, First Gulf Bank and Noor Islamic Bank.

• Abu Dhabi Commercial Bank general assembly approved the distribution of 10% cash dividends and the distribution of 20.25% stock dividends. The general assembly also approved the issuance of AED 4.8 billion convertible debentures.

• Aabar Investments general assembly approved the distribution of 10% cash dividends.

May • International Fish Farming Holding Company general assembly approved to decrease the

company’s par value per share to AED 6 from AED 10 to cover the retained losses.

• Emirates Foodstuff and Mineral Water Company general assembly approved to change the company’s name to Agthia Group PJSC

• Al Khazna Insurance Company bought 15% share in Saudi based Sanad for Cooperative Insurance and Reinsurance.

• Aabar Investments finalized the selling of its 100% stake in Pearl Energy Limited.

• Bank of Sharjahis changed the name of its wholly-owned subsidiary from Banque de la BekaaBanque de la Bekaa, Lebanon, to Emirates Lebanon BankEmirates Lebanon Bank.

June • ALDAR Properties converted Sukuk into 37,504,510 new shares effective June 3rd, 2008. The

company’s BOD also approved to convert Sukuk into 1,600,000 new shares effective June 4th, 2008, bringing up the company’s listed number of shares to 2,446,100,563.

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• Al Khazna Insurance Company gained the Ministerial approval allowing forgeries to own up to 25% of the company’s capital with a 5% limit for each shareholder will go into effect starting June 8th, 2008

• Tameer and Sorouh finalized an agreement with a joint venture of Al Habtoor Engineering/Murray & Roberts/Al Rajhi Construction to construct the landmark Tameer Towers project in Abu Dhabi for a cost of AED 6 billion, bringing the total cost of the project to AED 8 billion.

• Abu Dhabi National Energy Company signed an alliance with Theolia for the renovation of the energy sector in morocco and its plan to bid MW wind farm project located in Tarfaya-Morocco. In addition the two companies agreed upon acquiring 50% stake in Compagnie Eolienne du Detroit.

• Aldar Properties increased the company’s capital to AED 2,506,886,365 through the conversion of Sukuk into 242,498 shares.

July

• Dana Gas discovered a new oil zone in its Egyptian concessions, marking the first discovery in the company’s US$ 170 million drilling campaign for 2008.

• Sorouh Real Estate Company awarded Hill International a contract to provide project management services for Gateway Towers 3 to 8 at the Shams Abu Dhabi development. The four-year contract has a value to Hill of approximately AED 128.6 million ($35.0 million). Construction of the six mixed-use towers is expected to cost approximately AED 5.9 billion ($1.6 billion) and be completed by May 201

• National Bank of Abu Dhabi general assembly approved the issuance of convertible bonds to the banks employees.

• Sorouh Real Estate Company launched AED 4 billion securitization Sukuk compliant with Al Shari’a. These Sukuks will be used for financing “Shams Abu Dhabi” and Al “Saraya” projects.

• Sorouh Real Estate Company in collaboration with Orascom real estate, Hydra and Capital for investment entered a joint project in Abu Dhabi for real estate construction

• Waha Capital signined an agreement with Abraaj Capital to buy 49% stake in Abraaj Capital subsidiary GMMOS Group.

• Abu Dhabi Islamic Bank and Audi Group closed $ 130 million six months bridge facility to construct a cement factory.

August • Abu Dhabi National Energy Company “Taqa” completed the issuance of $ 1 billion, 6.62%

senior notes due in August 2013 and $ 500 million of 7.25% senior notes due in August 2018.

• International Fish Farming Holding Company received the approval of the Securities & Commodities Authority for the issuance of 20 million shares at a par value of AED 6 to reach a total of AED 120 million.

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• Abu Dhabi National Insurance Company received the following ratings by Standard & Poor's:

-Counterparty Strength Rating: A-

- Financial Strength Rating: A-

- Outlook: Stable

• Al Khazna Insurance Company received the Securities and Commodities Authority's approval to allow foreign ownership & GCC nationals to own up to 25% of the company's capital.

• International Fish Farming Holding Company established a fully owned subsidiary under the name of Emirates Stallion Properties.

• Abu Dhabi Commercial Bank signed a memorandum of understanding with Sorouh Real Estate for the financing of the company’s residential sales as a part of the company’s project Shams Abu Dhabi.

• Abu Dhabi Commercial Bank filed a lawsuit against the investment banks Morgan Stanley and Bank of New York Mellon, Standard & Poor’s and Moody’s, so as to recover form the collapse of Cheyne Finance structured investment vehicle. Grounds of file were false marketing of the fund as a reliable investment and failure to reveal the truth of its risky & inefficiency.

September

• Aabar Investments extraordinary general assembly approved the following:

• The issuance of AED 6.684 billion convertible bonds to the International Petroleum Investment Company.

• The issuance of AED 30 million convertible bonds to the company's employees.

• Arabian Sea Foundation, Sorouh Real Estate Company subsidiary,, landed its first contract which worth $ 150 million to provide construction works for the Shams Abu Dhabi Gate Towers project in Al Reem Island development.

• Abu Dhabi National Energy Company’s fully owned subsidiary Taqa Energy B.V signed an agreement with Cirrus Energy Corporation for acquiring 15%-30% stakes in the Dutch North Sea for a total amount ranging from EUR 15 to EUR 30 million.

October

• International Fish Farming Holding Company acquired four parcels of land in Abu Dhabi

• Dana Gas discovered a gas and condensate in its Egyptian concessions, marking the third discovery in the company’s US$ 170 million drilling campaign for 2008.

November • Abu Dhabi Aviation acquired 95% of Maximus Air Cargo's assets to turn the latter into a

limited liability.

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• Abu Dhabi National Takaful Company signed a partnership agreement with Zurich International to set up Zurich Takaful Limited Company. Abu Dhabi National Takaful Company will own 49% stake while Zurich International will own 51% stake

• Aabar Investments signed a purchase agreement with Tasameem Real Estate to acquire two residential land plots for a total amount of AED 500,876,100.

December • Aabar Investments signed an agreement with American International Group to fully acquire

AIG private bank based in Switzerland for a total amount of $ 254 million.

• TAQA Bratani, Abu Dhabi National Energy Company subsidiary, completed the acquisition of seven oil fields from Shell UK Limited & Esso Exploration & Production based in UK for a total value of $ 631 million.

• Bin Salem Group bought 40% stake in Methaq Takaful Insurance Company.

• A consortium of Emirates Telecommunications Corporation-Etisalat and Iran based-Tamin Telecom was the highest bidder in the tender opening of the third mobile network license in Iran

New Listings- 2008 / ADX

Company Name Number of Shares ( in millions) Listing Date Methaq Takaful Insurance Company 82.5 May 11th 2008

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Qatar

Economic Snapshot

Being set on 6% of the world’s natural gas reserves, Qatar is considered one of the five countries in the world with the biggest natural gas reserves, where such reserves are highly concentrated in the North Gas Field. Qatar Petroleum set a strategic plan to further enhance the field, where the first phase of this project was incorporated in 1991 with an output of 800 million cubic feet per day. Total export capacity of gas amounted to an estimated figure of 18 million tons/day. Qatar strives to maintain its oil daily capacity of 850 thousand barrels. The North gas Field development project is scheduled to be completed in 2010 and is estimated to produce more than 18 billion cubic feet of natural gas per day.

Mydan Mahzam and Bul Hanine offshore oil fields play a vital role in the development of the oil sector in Qatar. Qatar started oil production for the first time in 1947; Dukhan was one of the first sites in Qatar where petroleum was first initiated and the first shipment of its oil was exported in December 1949.Given the excessive fluctuations in oil prices, the government decided expanding the investment base to depend on other sources and started the exploitation of natural gas for generating other sources of income.

Stated by Qatar Petroleum, Qatar’s production for natural gas was highly distinguished this year, as it reported its natural gas production reached 10.09 million ton during 2008 registering a high figure since its initiation in 1996.

Qatar was less affected by the world financial crisis when compared with its neighboring countries including Kuwait and UAE given that there was no shortage of liquidity as the banks and monetary institutions enjoy a high monetary cover backed up by the government. Moreover, increased gas and oil production was seen to compensate for falling prices.

Qatar not only depended on its sufficient liquid position, but also set back up systems to secure its financial stability, as the government implemented an economic policy in public expenditure and diversified its sources of national income.

As a response to the world’s slashing of interest rates, the Central Bank of Qatar cut its deposit facility rates from 4% to 3% then to 2.25% in the end of March, to settle at 2% at the beginning of May until the ending of the year. Qatar maintained its benchmark lending rate at 5.5% and the repo rate at 5.5% unchanged throughout the whole year.

The financial system portrayed a healthy growth through credit facilities activity, as gross credit facilities registered a continuous increase during the first eight months of 2008 to reach QAR 217,004.9 million as opposed to QAR 160,596.1 million at the end of 2007.

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Although Qatar’s banking sector was kept stable, Qatar’s economy recorded the highest inflation levels amongst the gulf region, standing at 13.74% at the end of December 2008 in response to surging rent and food prices.

On year to year basis, inflation recorded 15%, which is the highest amongst the gulf countries. Such rate is expected to decline to 13% in 2009 and 11% in 2010.

GDP registered an increase of 59.42% between Q3 of 2007-2008, as it hit an accumulated amount of QAR 289.180 million in Q3 2008 as opposed to QAR 181.386 million for the same period in 2007.The oil & gas revenues contributed by 73% to the GDP during the previously mentioned period, where the gas sector contributed by nearly half of the quarterly growth of the GDP. IMF states that there would be a continuous growth for the economy for the coming two years as GDP prices for 2008 were estimated at QAR 140.377 billion and a real percentage change of 16.843%, while registering an expected QAR 170.361 billion for 2009 and QAR 203.386 billion for 2010.

Doha Securities Market – DSM

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During the second quarter, the index managed to substantiate an improvement increasing by 24.17% to close at 11,863.86 basis points at the end of June opposing 9,554.71 points at the end of March. All sectors recorded enhanced performances in their indices where the Industrial sector topped them all increasing by 39.49% followed by the Insurance sector which retrieved 23.83% of

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its value during the second quarter. April’s trading was the highest contributor for such improvement as the index rose by 8.15% during the trading of such month. In June, NYSE Euronext acquired 25% stake in Doha Securities Market for a total amount of USD 250 million.

The third quarter registered gigantic losses commensurate with the local and international markets hit by the financial crisis. The index started a gradual decline during July, to witness a sharper slump starting August registering trading levels below 10,000 points. DSM closed at 9,314.53 basis points ending September as opposed to 11,863.86 points in the end of June falling by 21.49%; for such period, the services sector was the highest decliner by 21.8% amongst all declining sectors. Within the last trading quarter, DSM index witnessed a persistent declining trend starting October that hit 25.62%.

The end of the year, DSM index registered 6,886.12 points as opposed to 9,580.45 points registered during the end of 2007 declining by 28.12%.All sectors witnessed losses, as the Insurance sector ranked the highest with losses made of 55.04%.

Major News – 2008

January • Qatar Islamic Insurance Company entered a joint venture with Qatar International Islamic

Bank, Al Watani Al Islami, the Trading Group Holding, the Syrian Islamic Insurance Company and Syrian investors to establish a Syrian Islamic insurance company in Syria, in which Qatari companies will own a 54% stake.

• Qatar Real Estate Investment Company entered a joint venture to set up a QAR 1 billion real estate company in which it will own a 33.33% stake.

• Qatar Real Estate Investment Company signed a design contract worth QAR 25 million with Arab Engineering Bureau.

• Qatar Islamic Bank sold 6 million shares in Al Jazeera Islamic Company for a price of QAR 65 per share realizing a profit of QAR 330 million.

• Barwa Real Estate Company general assembly met and approved increasing the company’s capital to QAR 2.5 billion from the current QAR 2 billion through a 25% rights issue.

• Qatar Navigation signed a 5- year contract with Qatar Petroleum to supply equipment and manpower for a port. The contract is worth QAR 148 million.

February

• Qatar National Bank general assembly approved the distribution of 20% free shares and the distribution of 50% cash dividends.

• Qatar Insurance Company general assembly approved the distribution of 100% cash dividends.

• United Development Company general assembly approved the distribution of 25% cash dividends.

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• Al Khaleej Insurance and Reinsurance Company general assembly approved the distribution of 20% cash dividends and the distribution of 40% free shares.

• United Development Company general assembly approved increasing the foreign ownership limit in the company to 49% from 25%.

• Qatar General Insurance and Reinsurance Company received the Ministry of Economy and Commerce’ approval to establish a new company under the name Qatar General Holding Company.

• Qatar Navigation general assembly approved the distribution of 50% cash dividends and the increase of the company’s capital through a rights issue of 28.25%.

• Gulf Cement Company – Qatar general assembly approved increasing the non-Qatari ownership in the company to 49% and to transform the company into a holding company.

March

• First Finance Company received Qatar Central Bank Approval to establish a QAR 500 million new company that will provide investment services.

• Doha Insurance Company general assembly approved increasing the company’s capital through a rights issue of 41.46%. The general assembly also approved the distribution of 30% cash dividends.

• Qatar Commercial Bank’s general assembly approved the distribution of 40% cash dividends and 30% bonus shares. The shareholders also approved a rights issue at a later stage for 1 out of every 10 shares at a price of QAR 70/share.

• Qatar Electricity & Water Company general assembly approved the distribution of QAR 4 per share cash dividends.

• Salam International general assembly approved increasing the company’s capital to QAR 931.5 million from the current QAR 828 million through the distribution of free shares.

• Qatar Islamic Bank general assembly approved 20% cash dividends and 50% free shares.

• Barwa Real Estate Company general assembly approved the distribution of 10% cash dividends and 5% free shares.

• Qatar Cinema and Film Distribution Company general assembly approved the distribution of 15% cash dividends and 10% free shares.

• Mannai Corporation general assembly approved the distribution of 40% cash dividends and 20% free shares.

• Islamic Financial Securities Company general assembly approved the distribution of 59% cash dividends.

• Qatar Telecom general assembly approved the distribution of 40% cash dividends and the distribution of 10% free shares. The general assembly also approved a right issue of 33.3% increasing the company’s authorized capital to QAR 2 billion.

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• Doha Bank general assembly approved the distribution of 40% cash dividends and the distribution of 20% free shares. The general assembly also approved increasing the company’s capital through a 15% rights issue and 15% through the issuance of Global Depositary Receipts.

• Ahli Bank general assembly approved the distribution of 20% cash dividends and the distribution of 15% free shares.

• Qatar Shipping Company general assembly approved the distribution of 35% cash dividends and the distribution of 10% free shares.

• First Finance Company general assembly approved the distribution of 20% free shares and approved increasing the non-Qatari ownership in the company to 49%. The general assembly also approved increasing the company’s capital through a 25% rights issue.

• Masraf Al Rayan general assembly approved the distribution of 10% cash dividends.

April • Qatar Islamic Insurance Company general assembly approved the distribution of 35% cash

dividends.

• Qatar Industrial Manufacturing Company general assembly approved the distribution of 35% cash dividends.

• Qatar Fuel Company general assembly approved the distribution of 70% cash dividends.

• Aamal Company general assembly approved the distribution of 10% cash dividends 10% free shares.

• Qatar International Islamic Bank general assembly approved the distribution of 80% free shares and approved a 40% rights issue.

• Commercial bank acquired a 40% share in United Arab Bank.

• Qatar Islamic Bank signed a QAR 178 million contract to construct Al Rames tower in Doha which is expected to be completed within a period of 24 months.

• Dlala Brokerage and Investment Holding general assembly approved the distribution of 12% cash dividends.

• Masraf Al Rayan general assembly approved raising the non-Qatari ownership to 49% from the current 31%.

• Qatar Flour Mills Company general assembly approved the distribution of 10% cash dividends and the distribution of 5% stock dividends.

• Qatari German Company for Medical Devices general assembly approved increasing the company’s capital through a 100% rights issue at a price of QAR 15 per share.

May • Medical Care Group general assembly approved changing the company’s name to Care Holding

Company.

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• Qatar National Bank along with Emirates Bank International and Arab Bank offered a USD 550 million financing facility to for Al-Arrab Contracting Company. Qatar National Bank contribution stood at USD 290 million.

• Ezdan Real Estate Company general assembly approved opening non-Qatari ownership limit in the company to 49% and buying 7 real estate properties in Al Wakeer Area.

• Qatar Islamic Bank received Fitch Ratings of upgrading the bank’s Long term issuer default rating to A from A- and Short term issuer default rating to F1 from F2.

June • Qatar National Bank’s Foreign Currency Ratings was raised from to AA- from A+ (long-term)

and A1+ (short-term) from A1 from Capital Intelligence, while the outlook for the financial strength rating of A+ is put on Positive from Stable.

• Qatar Telecom acquired 40.8% stake in PT Indosat located in Indonesia for a value of $ 1.8 billion from Asia Mobile Holding Pte.

• Qatar Islamic Bank agreed to finance the Samriya Twin Tower project for a value of QAR 450 million in new Doha district, where the project is estimated to be finalized in the second half of 2010.

• Barwa Real Estate Company signed an agreement with Hochitief Construction Company to construct Barwa Commercial Avenue project.

• Qatar National Cement Company signed a US 40 million loan agreement with BNP Paribas.

• Barwa real Estate Company’s announced that its subsidiary Barwa International acquired two hotels in Switzerland.

• Qatar Islamic Bank’s subsidiary Asian Finance Bank based in Malaysia signed a memorandum of understanding with Gulf Petroleum Berhard in Malaysia to finance a USD 5 billion project in the State of Perak, Malaysia.

• Barwa Real Estate Company was granted US 250 million loan by Ahli United Bank for the financing of the company’s projects and investments and restructuring of previous loans

• Barwa Real Estate Company’s 50% owned subsidiary Nuzul Qatar launched Somerset West Bay residence.

• Capital intelligence upgraded Doha's Bank Long-Term Foreign Currency Rating from A- to A and the Financial Strength rating from A- to A, while affirming the Support Rating.

July • Barwa Real Estate Company obtained a Morabaha financing agreement from Badr Al-Islami

bank worth AED 700 million for the financing of an investment project.

• Aamal Company signed a memorandum of understanding with Ma’ref Al Rayan for the establishment of a private shareholding company under the name of C-San Holding Company worth QAR 10 million.

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• The Commercial Bank of Qatar increased its capital by issuing 24,000,000 shares to increase the bank’s issued and paid-up capital from QR 1,822,053,120 to QR 2,062,053,120. The capital increase was carried out by the following:

1. A pre-emptive rights issue to existing shareholders of 4,664,705 shares at a price of QAR QAR 136.50/share.

2. An issue of 18,435,295 shares represented by 92,176,475 Global Depositary Receipts (GDRs) to international institutional investors, at a price of US$7.50 per GDR, equivalent to QAR136.50 per share.

3. A private placement of 900,000 shares to Qatari investors at a price of QAR136.50 per share.

• Qatar Navigation bought a bulk carrier vessel from Kellen Carrier for a total amount of USD 68 million.

• Al Khaleej Insurance and Reinsurance Company bought 25% stake in Bahrain Life Assurance Company for a price of QAR 22 million.

• Qatar General Insurance and Reinsurance Company realized a profit of QAR 110 million from selling one of its real estate properties.

• Qatar Islamic Bank granted an Islamic finance contract to Ezdan Real Estate Company that amounted to QAR 195 million.

August • Qatar Islamic Bank signed a Murabah financing deal with Barwa Real Estate Company worth

QAR 1.1 billion.

• Qatar Electricity and Water Company’s owned subsidiary Ras Girtas Power Company signed a power purchase agreement worth USD 3.9 billion with Kamhramaa to launch a power and water plant in Qatar.

• Qatar National Bank acquired 297,694,166 shares in Commercial Bank International representing a stake of 23.771% in the former.

September

• Gulf Holding Company participated in the establishment of First Education Group with a capital of QR 100 million by buying 500,000 shares with a value of QR 5 million.

• Al Khalij Commercial Bank along with a group of banks participated in the arrangement of a USD 850 million syndicated facility for al Faisal Holding Company, Qatar’s leading diversified business group. Citibank was the sole book runner for the transaction.

• Al khaliji bank participated in the financing of QR 653 million for a part of the Engineering Procurement Installation & Construction, the Berths and Port Infrastructure for the Ras Laffan Port Project undertaken by the Joint Venture Consolidated Contractors Group S.A.L (Offshore) (CCC) and Teyseer Contracting Co. WLL (TCC).

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October • Barwa Real Estate Company along with Qatari Diar Real Estate Investment Company signed a

shareholders agreement with GDF SUEZ Energy Services and SUEZ Environment to establish a Multi–Utility Company in Qatar with 51% Qatari stake and 49% French stake.

• Industries Qatar’s fully owned subsidiary Qatar Steel Company suspended steel exports due to 45% increase in local demand.

November

• United Development Company general assembly approved the distribution of 35% cash dividends.

• Qatar International Islamic Bank general assembly approved the cancellation of 40% rights issue and increasing the bank's capital by 20% allocated to Qatar Investment Authority.

December

• Salam International Investment's extraordinary general assembly approved increasing the company’s paid up capital by 12.5% through the distribution of 6.25% cash dividends & 6.25% bonus shares.

• Qatar National Bank's owned subsidiary, Al Islami along with Qatar International Islamic Bank signed a facility agreement with Qatar Real Estate Investment for a total value of QAR 1 billion for the financing of the latter's QAR 2.5 billion projects located in Qatar.

• Moody's Investor Services rated Qatar Telecom’s Long term corporate credit rating "A-", Short term corporate credit rating "A-2" with a stable outlook, while Fitch Ratings has assigned an issuer default rating of “A+".

• Moody's Investor Services rated Doha bank's foreign currency deposit as "A2/P-1", financial strength as "D+" with a stable outlook.

New Listing – 2008 / DSM

Company Name Number of Shares ( in Millions) Listing Date Ezdan Real Estate Company 456.9 February 18th 2008.

Qatar Islamic Financial Securities Company 4 March 3rd 2008. Gulf International Services 122.864 May 26th 2008

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Bahrain

Economic Snapshot

The kingdom of Bahrain is known to have a solid Islamic finance infrastructure in addition to oil production. The country incorporates about 24 Islamic banks, 11 Islamic insurance companies and embraces one of the biggest SUKUK markets in the world.

During the first 9 months of 2008, the economy has illustrated positive indicators despite the global recession; total credit extended has grown to reach BHD 5,513.5 million by the end of the third quarter compared to BHD 5,077.3 million by the previous quarter's end, the same applied for foreign trade as Bahraini exports surpassed imports during the third quarter and resulted in trade surplus of BHD 924.5 million compared to a surplus of BHD 806.8 million realized over the whole year of 2007 and growing by 14.59%, such fact cascaded its effect on the Bahraini Dinar's exchange rate causing it to appreciate against major currencies including the British pound, that dropped against the BHD by 8.5 % during that quarter

Regarding public finance, the government was able to cut the budgetary deficit during 2008 when compared to 2007 despite oil fluctuations. Governmental revenues reached BHD 1,687.9 million with oil comprising 73.52%, while such revenues stood at BHD 1,660.6 million in 2007. At the same time, total expenditures reached BHD 1,871.9 million by the end of 2008 contributing to a budgetary deficit of BHD 184 million compared to a BHD 194 million in 2007.

As the global financial crisis struck, the Central Bank of Bahrain (CBB) placed restriction on banks to limit their exposure to real estate credit by adhering to a specific percentage of real estate loans in their credit portfolios, in addition, the CBB placed different interest cuts throughout the year in a manner that was consistent with the USA's Federal Reserves cuts as follows:

• In January, CBB decided to cut key interest rates by 100 points on two stages, one-week deposit facility rate was cut from 4% to 3.5% then to 3%, while overnight deposit facility rate was cut from 3.5% to 3% then to 2.5%. In addition to that, CBB decided to raise the reserve requirement ratio for commercial banks to 7% from 5% previously.

• In March, another cut of 75 points came in taking one-week deposit facility from 3% to 2.25% and the rate on the overnight deposit facility from 2.5% to 1.75%.

• May witnessed another cut to the one-week deposit facility's rate which landed from 2.25% to 2% , while overnight deposit facility settled at 1.50% down from 1.75%.

• In October, a cut by 25 points on one-week deposit facility's rate reaching 1.75% from 2.00%, in addition, The CBB also cut rates on the overnight deposit facility and REPO by 50 points each; overnight deposit facility went down to 1.25% from 1.50% then another cut in the same month took the rate to 1%, The REPO has been cut twice during this month first from 5.25% to 4.75% then to 3.5%.

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• In November, another cut took place as CBB announced 25 points reduction on one-week deposit facility's rate, taking it from 1.75% to 1.50%.

• In December, 75 points cut took the rate on one-week deposit facility from 1.5% to 0.75%, the overnight deposit facility rate was reduced also from 1% to 0.25%. In addition, CBB also cut the REPO and lending rates to 2.75% from 3.50% previously.

As for IMF projections, Bahrain's inflation is estimated to have reached 4.474% by 2008 with projections to hit 6% and 5.5% for years 2009 and 2010 respectively. IMF indicates that GDP may stand at BHD 4.627 billion for 2008 with projections pointing to some enhancement during 2009 and 2010 taking GDP to BHD 4.905 billion and BHD 5.19 billion in a row.

Bahrain Stock Exchange - BSE

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The Bahrain stock exchange ended the first quarter of the year on a positive note; the general index closed at 2,789.89 points on March end growing by 1.26% when compared to December 2007's closing, which stood at 2,755.27 points. Services sector contributed the highest to such growth as it increased by 6.05%. It is worthy to be mentioned that during that quarter, the exchange started to extend the trading hours to become 3 hours instead of 2.

The ascending journey didn’t stop during the second quarter as a response to the successive interest rate cuts prevailing at that period. The index concluded June trading sessions at 2,859.03 points, realizing a quarterly growth of 2.48%. Hotel & Tourism sector witnessed the biggest incline in its index as it increased by 11.96%

The stock exchange started to display a declining trend throughout the third quarter given that the index lost 13.86% of it value within a matter of three months landing at 2,462.72 points, by the closing of November 24th, the index broke the level of 2,000 for the first time since August 2005.

The exchange continued to register more losses across the remaining months of the year till the index closed at its lowest year to date value on December's last trading day reaching 1,804.07 points and realizing an annual loss of 34.52% compared to 2007's closing of 2,755.27 points.

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Banking sector suffered the highest loss as it declined by 39.15% followed by Investment with 37.86% drop, while Hotel & Tourism sector managed to achieve the sole increase when it realized 23.04% annual growth.

Out of 42 companies traded, 12 managed to register an annual increase in their closing stock price, while 27 declined and two companies

The overall trading volume reached 1,593,194,078 shares with a value of BHD 830,671,216, while total number of transactions reached 43,498 and market cap stood at $ 21,168.33 million.

Major news- 2008

January • General Trading and Food Processing Company increased its stake in the Bahrain Livestock

Company to 33% after buying additional 8% stake in the company.

• Ahli United Bank finalized the acquisition of 35% stake in Alliance Housing Bank-Oman.

• Investcorp Bank completed the $ 1.4 billion acquisition of “280 Park Avenue building” which is located in New York.

• Esterad Investment Company sold its 25% stake in Bahrain Livestock Company for a total amount of BHD 1.254 million.

• Delmon Poultry Company increased its stake in Bahrain Livestock Company to 33%.

February • Nass Corporation entered a joint venture with Murray and Roberts-South Africa to construct the

BHD 153.804 million Salam Resort Project.

• Gulf finance house distributed 10% free shares.

• Al Ahlia Insurance – Bahrain distributed 10% free shares.

• Gulf Finance House signed a $ 3 billion contract with the government of Algeria to develop an economic development zone.

• Al Khaleej Development Company distributed 7% free shares.

• The Bahrain Ship Repairing and Engineering Company distributed 20% free shares.

• National Bank of Bahrain distributed 20% free shares.

• Bahrain Maritime and Mercantile International distributed 10% free shares.

• Bahrain Kuwait Insurance Company general assembly approved the distribution of 45% cash dividends.

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• Bahrain Telecommunications Company general assembly approved the distribution of 40% cash dividends for the year (20% for the second half of 2007 as 20% have already been distributed for the first half) and the distribution of 20% free shares.

March • Bank of Bahrain and Kuwait general assembly approved the distribution of 27% cash dividends

and the distribution of 5% free shares.

• Bahrain Cinema Company general assembly approved the distribution of 50% cash dividends and the distribution of 20% free shares.

• Ahli United Bank general assembly approved the distribution of 10% free shares and the distribution of 14% cash dividends.

• Bahrain Islamic Bank general assembly approved the distribution of 13% cash dividends and the distribution of 10% free shares.

• Bahrain Islamic Bank approved the issuance of Sukuk worth BHD 250 million.

• United Gulf Bank general assembly approved the distribution of 65% cash dividends.

• General Trading and Food Processing Company general assembly approved the distribution of 20% cash dividends and 7.5% free shares.

• United Gulf Bank general assembly approved the distribution of 65% cash dividends.

• Esterad Investment Company general assembly approved the distribution of 45% cash dividends and 20% free shares.

• Bahrain Commercial Facilities Company general assembly approved the distribution of 40% cash dividends and 10% free shares.

• Bahrain Car Parks Company general assembly approved the distribution of 15% cash dividends.

• Securities and Investment Company general assembly approved the distribution of 100% free shares and the distribution of 10% cash dividends.

• Ithmaar Bank general assembly approved the distribution of 10% cash dividends.

• Seef Properties general assembly approved the distribution of 10% cash dividends.

• Nass Corporation general assembly approved the distribution of 24% cash dividends.

• The Bahrain Ship Repairing and Engineering Company general assembly approved the distribution of 50% cash dividends and the distribution of 20% free shares.

• Albaraka Banking Group general assembly approved the distribution of 9% cash dividends and the distribution of 7.1428% free shares.

April • Bahrain Middle East Bank general assembly approved the distribution of 5% free shares and

approved a rights issue of 143.29%.

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• TAIB Bank general assembly approved the distribution of 5% cash dividends and approved a rights issue of 133.6% at a price of $1.05 per share.

• Bahraini Saudi Bank general assembly approved the distribution of 5% cash dividends.

• Arab Insurance Group general assembly approved the distribution of 7.5% cash dividends.

• National Hotels Company general assembly approved the distribution of 18% cash dividends.

• Bahrain Tourism Company general assembly approved the distribution of 20% cash dividends.

• Bahrain Maritime and Mercantile International signed an agreement to acquire the operations of the Compass Group International in Sudan, Mali, Ghana and Gabon for the value of $ 700,000, which still awaits authority’s approval.

• Ahli United Bank arranged a $ 25 billion murabaha contract to Sorouh Investment Company for a period of 21 months.

• Investcorp Bank secured a financing facility for an amount of $ 243 million and for a period of 5 year.

May • Gulf Finance House along with a group of companies entered a joint venture to establish a $ 2

million cement company under the name of CEMENA.

• Bahrain Cinema Company sold a parcel of land for a value of BHD 5,478,338 realizing a profit of BHD 5,108,495.

• Arab Banking Corporation and BNP Paribas was mandated by Bahrain Commercial Facilities Company to arrange a US$50 million 3-year syndicated term loan facility. The Facility has been fully underwritten by Arab Banking Corporation and BNP Paribas.

• Al Khaleej Development Company signed a murabaha financing agreement with Bahrain Islamic Bank for a period of 18 months and an amount of BHD 12 million.

June

• Nass Contracting Company, Nass Corporation wholly owned subsidiary, received the letter of award from UniTraders for the construction of Office building in Bahrain. The contract worth BHD 6.5 million.

• Investcorp Bank acquired a stake in Asiakastieto (Finland).

• Gulf Finance House along with Abu Dhabi Water & Electricity Authority, Tasameem Real Estate, Dubai Investments, Emirates Islamic Bank, Khaleeji Commercial Bank, Capital Management House, Bahrain Islamic Bank, Al Jabr Trading Company and other investors invested in the First Energy Bank to increase the bank’s capital from $ 750 million to $ 1 billion.

• United Paper Industries general assembly approved the distribution of 15% cash dividends.

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• Nass Corporation’s fully owned subsidiary Nass Contracting was awarded BHD 30.991 million contract by Bahrain Bay Integrated Development Investment for a period of 12 months.

• Bahrain Islamic Bank acquired 31% stake in Islamic Bank of Yemen to increase its stake to 33%.

• Ithmaar Bank in association with Al Safat Company, Bank of Bahrain & Kuwait, Eskan Bank, Palm Capital Company, Venture Capital Bank, Global Investment House, Shamil Bank and Ithmaar Development Company launched Naseej Company which is specialized in the real estate and infrastructure sector, with an authorized capital of BHD 2 billion and paid up capital of BHD 300 million.

• Umniah Mobile Company received most of the required approvals from the Jordanian authorities to finalize the acquisition of the remaining 20%-stake in Batelco JordanBatelco Jordan for $3 million

July

• Albaraka Banking Group's subsidiary, Baraka Islamic Bank, along with First Investment Bank signed a murabaha agreement for al Khaleej Development Company worth $ 30 million.

• Al Khaleej Development Company signed an agreement with Saudi-based Talal Al Ghumeim Real Estate Company and other strategic investors to set up a company to develop a SAR 900 million residential project. Al khaleej Development Company held a 22.4% stake in the new company.

• National Bank of Bahrain received the upgrading of the Capital intelligence rating Agency as the following:

o Long term foreign currency: from A- to A o Short term foreign currency: from A2 to A1 o Support rating: 1 o Financial strength: A o Outlook: Stable

• Khaleeji Commercial Bank launched a $ 430 million investment fund for financing the logistics service project located in India under the name of Global Logistix Navi Mumbai Investment Company.

August • First Leasing Bank signed an agreement for a total value of $ 13.5 million with Konstruktor

Engineering located in Qatar. The latter company leased equipment for the financing of $ 1.1 billion Doha Expressway Project.

• First Leasing Bank signed an agreement for a total value of $ 23 million with Al Seif Hospital located in Kuwait for leasing medical equipment.

• Ithmaar Bank entered a strategic alliance with Gulf Finance House and Abu Dhabi Investment House for the construction of Agricapital & Unique Global Islamic Hospitality Development Fund.

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• Ithmaar Bank entered a joint venture in corporation with with Gulf Investment House and Abu Dhabi Investment House for the construction of an Investment Bank under the name Infracapital.

September • Nass Contracting was awarded a contract for a total value of BHD 14.017 million for the

construction of building and staff accommodation.

November

• Bahrain Maritime and Mercantile International increased treasury shares that it has to 5.63% after buying back 700,000 shares.

• Albaraka Banking Group exited from Dubai Real Estate Project for a total value of AED 300 million with a gross return of 35.52% to the bank's investors.

• Investcorp Bank along with Barclays Private Equity completed acquiring N&W Global Vending, where the two banks will hold equal stakes in the acquisition.

New Listing – 2008/ BSE


Khaleeji Commercial Bank 1,000 June 12th 2008

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Oman

Economic Snapshot

Oman, the Arab Dominion, is considered a relatively small producer of oil; however oil revenues managed to drive the economy through sources of export earnings and government revenues. Oman relies primarily on the hydrocarbon sector as an alternative source. The other source of income, agriculture is small and counts for less than 1% of Oman’s exports.

Throughout the years, the government’s efforts increased to diversify & stimulate the economy especially since the oil hit a decrease in 1998,such as expanding exports of natural gas, developing gas based industries, encouraging investment in petrochemical, electric power, telecommunications and other industries and finally reducing the unemployment rate.

As for foreign investment, it is allowed in many sectors under the government’s approval where the level of ownership varies according with how much capital is set to be invested.

Oman’s government expenditures, including consumption and transfer payments, are considerably high. The latest year, government spending equaled 36.0% of GDP.

Oman's financial sector regulated by the Central Bank of Oman, adopted new bank supervision procedures in recent years such as:

o A banking law that limited investments in foreign securities. o Raised capital requirements. o Granted the central bank the authority to reject candidates for senior positions in

commercial banks.

Annual inflation in Oman soared to 13.7% in June as opposed to 13.24% in May, which was caused by soaring food and rent prices, however inflation retrieved to 10% during September. Stated by the (IMF), yearly inflation in Oman registered 11.173% in 2008 with an expected decline to 9% at the end of 2009.Many factors stimulated the boost in inflation such as strong domestic demand, enormous growth in liquidity and the persistent depreciation of the Omani currency opposing other non-GCC countries.

According to IMF’s statistics, gross domestic product reached OMR 8.661 billion in 2008 signifying a growth percentage of 7.448% and is speculated to increase to OMR 9.185 billion in 2009 and OMR 9.729 billion in 2010.

Stated by the Central Bank of Oman, Oman’s monetary and banking system remained insulated from the sharp hit in the turbulent markets. Such could be attributed to the fact that Omani banks are highly immune with zero exposure to the toxic financial instruments. Per statistics by Oman’s Central Bank, total assets of Oman’s commercial banks boosted by 44% on year to year basis to

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OMR 12.9 billion at the end of September 2008.Investments in securities both domestic and foreign amounted for 10.4% of commercial bank’s total assets registering growth of 31% to reach OMR 1.35 billion by the end of September. Such rapid growth in the banks total assets was highly boosted by 51.7% growth in credit and as such item contributed by 66.9% to total assets.

Oman banks’ investments in certificates of deposits stood at OMR 641.5 million ending September and increasing by 60.95% as opposed to the same period in 2007.Total credit facilities boosted to 50.9% at the end of November in 2008.Total deposits at commercial banks increased by 38.7% for the same previously mentioned period.

Stated by the Central Bank of Oman, total profits of banks are likely to increase by 39.3% during the ending eleven months to reach OMR 246.2 million as opposed to OMR 176.93 million registered in 2007.The banking sector in Oman proved an enhanced performance backed up by economic growth, high oil prices, and other non-oil activities.

In November 2008, the Central Bank of Oman executed reductions in the interest rates in proportion with the American Federal Bank:

Reduction in interest rates on Certificate of Deposits to reach 0.85% in November 2008 as opposed to 2.156% registered in the same period in 2007.

Reducing the lending rate to 0.341% at the end of November 2008 as opposed to 1.893% registered during the same period of last year.

Additionally, interest rates on personal loans were deducted from 9% to 8.5% in the beginning of April and then up to 8% starting June 14th, 2008.The Central Bank of Oman decided upon decreasing cash reserve requirement percentage from 8% to 5% effective May 2009 and increasing Total loans/Total Deposits ratio from 85% to 87.5%.

Relating to the oil and natural gas, Oman’s production of oil reached 158,775.1 thousand barrels for the extended period of the first seven months boosting up by 5.83% as opposed to 150,017.1 thousands barrels for the same period in 2007.While production of natural gas registered 618,951 million/m³ until the end of July 2008 comparing with 625,929 million/m³ produced during the preceding period.

According to IMF, gross domestic product in Oman should reach OMR 8.661 billion at the end of 2008 with an expected boost in the economic growth for 2009 and 2010 to set at OMR 9.185 billion and OMR 9.729 billion correspondingly.

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Muscat Securities Market – MSM

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Muscat Securities Market index ended the first three months of 2008 with a boost in its performance by 11.81% to close at 10,102.57 basis points as opposed to 9,179.64 registered during the last day of trading of year 2007. The industrial sector reported the highest positive gains amongst other sectors registering 17.25%.

On the 15th of January, 2008 Muscat Securities Market in cooperation with Dow Jones indexes launched Dow Jones MSM Index that measures the performance of the companies listed at Oman securities market. The index currently includes 66 stocks.

The index continued its improvement till the period of the second quarter to reach 11,323.04 basis points signifying an increase of 12.08%. The industrial sector index hit the highest gain of 32.22%; April’s trading contributed highly to record such improvement as the index went up by 10.97%.

Amid the third quarter, the general index lost 24.99% of its value as a result of the financial crisis which hit hard to close at 8,493.56 basis points in September. All sectors performances retreated as the Industrial sector topping the losses went down by 30.96% of its value during three months.

Selling pressure encompassed the trading of October which resulted in the market losing its value by 26.89% during one month to go back & retrieve 53.90 points during November. However the index was hit by a thrashing decline taking up more losses to reach its lowest throughout the year closing at 4,998.12 points on December 25th, 2008.

On year to year basis, the index slouched by 39.78% closing at 5,441.12 points comparing with 9,179.64 points registered at the beginning of the year. All sectors registered declines with the industrial sector topping the losses with 46.89% slump at the end of 2008.

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Major News- 2008

January • Oman Holdings International Company increased its share in Oman Hotels and Tourism

Company by 477,000 shares.

• Renaissance Services sold its stake in United Media Services for an amount of OMR 3 million.

• Salalah Mills Company general assembly approved increasing the authorized capital from OMR 2.5 million to OMR 7 million & a 50% rights issue.

• Al Jazeira Services Company’s general assembly approved the conversion of 25% of preference shares into ordinary shares.

• Bank Muscat along with a group of international companies signed a contract with Saudi Pak Investment Company to purchase a 68% stake in Saudi Pak Commercial Bank-Pakistan where the Bank will be holding a 35% stake.

• Shurooq Investment Services Company Holding general assembly approved the issuance of a 150% rights issue and the unsubscribed shares will be allocated to Global Investment House.

February

• Oman Hotels and Tourism Company received the Capital Market Authority and the Central Bank of Oman approval to acquire up 35% of United Finance Company.

• Oman Hotels and Tourism Company received the Capital Market Authority and the Central Bank of Oman approval to acquire up to 35% of United Finance Company.

• Sahara Hospitality Company general assembly approved the distribution of 10% cash dividends.

March • Gulf Hotels (Oman) Company general assembly approved the distribution of 75% cash

dividends.

• Omani Packaging Company general assembly approved the distribution of 15% cash dividends, a rights issue of 100% and a stock split of 1:10.

• Financial Services Company general assembly approved the distribution of 25% cash dividends.

• Muscat Gases Company general assembly approved the distribution of 30% cash dividends.

• Areej Vegetable Oils and Derivatives general assembly approved the distribution of 8% cash dividend and 50% free shares.

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• National Hospitality Institute general assembly approved the distribution of 30% cash dividends.

• Financial Services Company general assembly approved the distribution of 25% cash dividends.

• Oman Cables Industry general assembly approved the distribution of 40% cash dividends.

• Hotel Management Company International general assembly approved the distribution of 80% cash dividend.

• Computer Stationery Industry general assembly approved the distribution of 15% cash dividends.

• National Gas Company – Oman general assembly approved the distribution of 30% cash dividends.

• Muscat Finance Company general assembly approved the distribution of 20% cash dividends and 10% free shares.

• National Finance Company general assembly approved the distribution of 5% cash dividends.

• Al Omaniya Financial Services general assembly approved the distribution of 21% cash dividends and 4% free shares.

• Oman Hotels and Tourism Company sold 75% share in Desert Camp Company for a total amount of OMR 1,095,000.

• Oman Oil Marketing Company general assembly approved the distribution of 47.5% cash dividends.

• Oman National Engineering and Investment Company general assembly approved the distribution of 45% cash dividends and the distribution of 8.225% free shares.

• National Aluminum Products Company general assembly approved the distribution of 12.5% cash dividends.

• Gulf Investment Services Company general assembly approved the distribution of 20% cash dividends and the distribution of 46% free shares.

• Bank Muscat general assembly approved the distribution of 50% cash dividends.

• Gulf Stone Company general assembly approved the distribution of 5% free shares.

• Taageer Finance Company general assembly approved the distribution of 8% cash dividends and the distribution of 5% free shares. The general assembly also approved to increase the company’s authorized capital to OMR 30 million from OMR 10 million and approved the issuance of an OMR 5 million convertible bonds.

• Sohar Poultry Company general assembly approved a right issue of 42.72%.

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• Al Jazeira Services Company general assembly approved the distribution of 15% cash dividends and the distribution of 80% free shares.

• Oman United Insurance Company general assembly approved the distribution of 20% cash dividends.

• Global Financial Investments general assembly approved the distribution of 20% cash dividends and the distribution of 20% free shares. The general assembly also approved a rights issue of 22.22% and approved to increase the company’s authorized capital to OMR 30 million.

• Construction Materials Industries and Contracting general assembly approved increasing the company’s capital through a 33% rights issue.

• Al Anwar Ceramic Tiles Company general assembly approved the distribution of 20% free shares and the distribution of 15% cash dividends.

April • Renaissance Services general assembly approved the distribution of 15% cash dividends

and the distribution of 10% free shares.

• Port Services Corporation general assembly approved the distribution of 30% cash dividends and the distribution of 20% free shares. The general assembly also approved a stock split of 1:10.

• Oman International Development and Investment Company general assembly approved the distribution of 30% cash dividends and the distribution of 20% free shares.

• Al Batinah Hotels Company general assembly approved the distribution of 10% cash dividends.

• Al Batinah Development and Investment Holding Company general assembly approved the distribution of 10% cash dividends and increasing the company’s capital through a 100% rights issue and a stock split of 1:10.

• Salalah Mills Company general assembly approved the distribution of 20% cash dividends.

• Oman National Livestock Development Company general assembly approved increasing the company’s capital through a private placement to be allocated to the Government.

• Bank Dhofar general assembly approved the distribution of 25% cash dividends.

• National Mineral Water Company general assembly approved the distribution of 8% free shares.

• Oman International Bank general assembly approved the distribution of 21% cash dividends and 10% free shares.

• Oman Cement Company general assembly approved a stock split of 1:10.

• Bank Sohar general assembly approved a stock split of 1:10.

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May • Renaissance Service’s owned subsidiary Topaz Energy and Marine Limited, bought the

fleet of the Doha Marine Services for a value of the Doha Marine Services for a value of QAR 453 million.

• Converting Industries general assembly approved increasing the company’s capital by 100% through a rights issue.

• Oman National Investment Corporation Holding purchased a 25% stake in Sama Holding Company for a total price of USD 35 million.

• Oman Telecommunications Company signed a three-year OMR 9 million contract with Oman Fiber Optic Company to provide services in network installation systems.

June

• Transgulf Investment Holding Company general assembly approved the distribution of 15% cash dividends and the distribution of 25% stock dividends. The general assembly also approved to increase the company’s capital to OMR 10 million from the current OMR 6.25 million through a 60% rights issue at a price of OMR 0.132 per share.

• Oman International Development and Investment Company realized a profit of OMR 5.84 million from the selling of 17.32 million shares of Muscat Finance Company for a total amount of OMR 6.9 million.

• Construction Materials Industries and Contracting signed OMR 2,550,000 agreement with Larsen Toubro Electromech to complete a project by March, 2009.

• Oman National Engineering and Investment Company was granted a contract for a value of OMR 497,561.369 by Mazoon Electricity Company for the construction of an electric line from Izki Main Station to Al-Awamir Fort Substation for a whole period of 180 days.

• Oman National Investment Corporation Holding general assembly approved the distribution of 25% cash dividends and the distribution of 30% stock dividends. The general assembly also approved a stock split of 1:10.

• Global Financial Investments Holding general assembly approved increasing the company’s authorized capital from to OMR 50 million from OMR 30 million. The general assembly approved to increase the company’s capital through a rights issue of 39.3978% and approved a private placement of 20% to be allocated to Gulf General Investments Company.

• Oman Investment and Finance Company general assembly approved the distribution of 80% stock dividends and approved increasing the company’s authorized capital to OMR 9 million from OMR 5 million.

• National Securities Company general assembly approved a stock split of 1:10 and approved the distribution of 10% cash dividends.

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• Oman Fisheries Company general assembly approved the distribution of 10% cash dividends and approved a stock split of 1:10.

• Al Anwar Holdings general assembly approved the distribution of 8% cash dividends and the distribution of 12.93% stock dividends.

July

• Galfar Engineering and Contracting was awarded the following three contracts:

• A contract by the Public Authority for Electricity and Water worth OMR 32,987,673.

• A contract by the Royal Court Affairs worth OMR 17,468,560.

• A contract by the Ministry of Transport and Communication worth OMR 13,999,493.

• Galfar Engineering and Contracting was awarded a contract by the Muscat Municipality to set up the 'Dualization of Al Amerat-Bausher Road' project. The amount of the contract stood at OMR 25,021,402.

• Al Hassan Engineering Company was granted a contact to provide mechanical and electrical services for the power plant to be set up at Mina Al-Fahl. The amount of the contract stood at OMR 2.8 million.

• Oman National Engineering and Investment Company was awarded the following contracts by the Public Authority for Electricity & Water:

o A contract worth OMR 1,664,994 for the operation & maintenance of plants group B.

o A contract worth OMR 1,788,502 for the operation & maintenance of plants group E.

• Galfar Engineering and Contracting company was awarded a contract for a total value of OMR 11,019,890 for the rehabilitation of roads & bridges in Quriyart.

August

• National Gas Company – Oman won a contract from Sohar Refinery, expecting to book OMR 100,000 increase in profit.

• Oman Flour Mills Company board of directors approved the distribution of 25% stock dividends and approved a stock split of 1:10.

• Salalah Mills Company board of directors approved the following:

o Increasing the company’s capital from OMR 7 million to OMR 10 million. o Capital increase through 100% rights issue. o 1:10 stock split.

September • The National Detergent Company general assembly approved a stock split of 1:10.

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• Shell Oman Marketing Company signed a contract with Oman Air to supply the latter with 75% of its civil aviation fuel.

• Al Fajar Al Alamia general assembly approved the distribution of 25% of cash dividends.

October • Oman International Bank general assembly approved a stock split of 1:10.

• Bank Dhofar general assembly approved 33.33% rights issue at a price of OMR 0.401 per share increasing the company's shares from 530,817,000 to 707,738,306.

• Dhofar Tourism Company signined of a contract with Oman Arab Bank, Bank Dhofar, Hamptons International and Wunderman to finance the development of a residential and touristic project under the name of Mirbat Beach which is estimated to cost more than OMR 1 billion.

• Oman National Engineering and Investment Company was awarded a contract for a total value of OMR 949,032 for a period of three years by the Public Authority for Electricity & Water based in Oman to provide maintenance & operational services to Saham & Khaboura water networks.

November

• Oman Flour Mills Company general assembly approved a stock split of 1:10.

• National Finance Company general assembly approved a stock split of 1:10.

• Oman Telecommunications Company signed a contract for OMR 2.25 million as a strategic business agreement with Saud Bahwan Automative for the implementation the Multi Protocol Label Switching solution at Saud Bahwan Group.

• National Finance Company general assembly approved 43.37% rights issue at a price of OMR 0.14 per share increasing the company's capital from OMR 90,562,500 to OMR 129,847,500.

• Galfar Engineering and Contracting was awarded a contract for a total value of OMR 3,212,684 by Muscat Electricity Distribution Company for the upgrading the company's primary substations at Wajla & Ghala Industrial Area.

• A local company filed a lawsuit against Port Services Corporation claiming a compensation for a total value of OMR 5 million for the unauthorized use of a study.

• Construction Materials Industries and Contracting’s general assembly approved:

o 100% rights issue by increasing the company’s capital from OMR 60 million to OMR 120 million.

o The increase in the authorized capital from OMR 6 million to OMR 20 million.

• Bank Sohar incorporation with Bank Dhofar & Oman Arab Bank arranged a syndicated credit facility with a total value of OMR 26 million to Renaissance Services to finance the latter’s expansion project based in Oman.

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December • Oman National Engineering and Investment Company was granted a contract for a total

value of OMR 184,536 by the Oman Electricity Transmission Company to provide operational services in Muscat.

• Al Batinah International general assembly approved increasing the company's authorized capital to OMR 5 million from OMR 527,945. The general assembly also approved to reduce the company’s paid-up capital by 75% and then increasing it by 1020.49%.

• Oman Education and Training Investment Company general assembly approved the distribution of 30% cash dividends and approved the conversion of the company into a holding company. The general assembly also approved the establishment of two limited liabilities companies.

• Oman National Engineering and Investment Company was awarded a 6-month contract to supply Al Sharqiyah Sands Water Supply Scheme with operating and maintenance services. The contract worth OMR 713,202.8

New Listings – 2008/ MSM

Company Name Number of Shares ( in Millions) Listing Date Voltamp Energy 25 June 17th 2008

Sohar Power Company 27.8 August 18th 2008.

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Egypt

Economic Snapshot

Egypt is known for its economically feasible location bisected within the highly fertile Nile valley where most economic activity is utilized. Egypt is distinguished amongst the rest of the region, given its diversified base.

What resulted in the enhancement of Egypt’s macroeconomic performance and boosting in its increased foreign investment was a series of International monetary Fund arrangements, structural reforms such as monetary and fiscal policies, privatization, and new business legislation.

Within the exporting sector, Egypt is highly dependent on gold & natural gas which are two main sources with great potential.

Egypt’s exporting acts are threatened by the economic European downturn as about 40% of Egypt’s exporting of goods & services are supplied to the European countries. Such could impact the Egypt in two ways:

• Reduce imports of Egyptian products. • The Egyptian pound could strengthen versus the Euro, such could badly affect exporting

and the tourism sector.

In 2007, Egypt proved an enhanced performance as a result of successful and continuous structural reforms, in addition to diligent economic management. Growth has proved a strong trend commensurate with an increase in the number of jobs.

Egypt has been highly dependant on the Gulf markets for the past three years as they provided a steady flow of Foreign Direct Investment. Between July 2007 to July 2008, Foreign Direct Investment inflows reported approximately $ 20 billion. The stable inflow of foreign direct investment into the Egyptian economy contributed to the growth of GDP.

Foreign Direct Investment jumped from $ 11.1 billion in the preceding year to $ 13.2 billion in 2008. It is speculated that FDI is going to maintain its strength given that the industry sector and the Egypt’s geographical location and lower input costs will continue to serve the Egyptian economy.

Egypt’s current budget deficit stood at $ 10.4 billion where the deficit is speculated to rise to 9.5% of gross domestic product in 2009. The government is also planning to lower the deficit 3-4% by 2010-2011.

However, social problems within the Egyptian economy proves to be a vital factor as more than 40% of Egypt’s population spends less than $ 2 per day, in 2007 unemployment registered around

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9%. This could be seen as one of the challenging factors faced by Egypt, and the increased pressure for Egypt to create jobs and lessen poverty.

A stable improvement in the Egyptian economy was reflected on the overall Balance of payments surplus of $ 4.9 billion realized from Egypt’s external transactions between July-March in 2007.

Egypt’s balance of payments registered a surplus of around $ 0.5 billion during the first quarter of 2008 as opposed to $ 1.2 billion for the same period of the previous year. Such was the result of:

• Net inflow of $ 2.2 billion in the capital & financial account. • Current account deficit of $ 966 million.

Foreign Direct Investment registered a net flow of $ 1.7 billion during the first quarter of 2008 as opposed to $ 3 billion for the same period of the preceding year. This could be attributed to the global downturn that pulled out investors & took down demand due to the lack of liquidity.

Since the Egyptian economy is boosting, its natural for inflation to rise .Inflation recorded its highest level in 10 years of 21.1% in May 2008. Egypt’s Inflation was kept under control up until the beginning of the year, and lost its levels by March surging to 15.8% as a result of augmented food & energy prices. Such increase in prices was a major reason to put the government into a financial turmoil. According to the state-run statistics agency, Consumer Inflation slumped down to 20.9% during the year 2008 in November as opposed to 21.2% in October.

The Central Bank of Egypt increased overnight deposits and lending rates by 25 basis points to 9% and 11% respectively.

Egypt Inflation rate rose to 20.2% in June of 2008, registering its highest level compared to 20.2% in October and is expected to decline with falling commodity prices. Such occurrence pressurized the Central Bank to raise its interest rates for the fifth time through out the performing year. Inflation average is expected to register 16.1 in 2009 and 11.7 in 2008.

Egypt’s exposure to the world financial crisis is only natural given the big part it plays in the global economy. Prices were seen to decline in response to declines in the stock exchanges globally. However, Banks in Egypt proved a strong position within the world’s financial crisis backed up with strong and sufficient liquidity as domestic liquidity conspicuously rose by EGP 93.9 billion during July/March of FY 2007 as opposed to EGP 50.1 billion, reaching EGP 756.6 billion at the end of march 2008. Such was the result of an increase in net domestic & foreign assets. These banks had trivial investments in the European and the American markets, thus the banking sector in Egypt proved an enhanced position than in many other countries as a result of the reforms of the preceding years and the regulatory structure that constrained the amount of borrowing for the Egyptian banks.

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Egypt’s downturn within such crisis could have been explained by the increased act of exporting & importing as it heavily relies on exporting goods to the US and Europe.

Egypt’s income is largely attributed to Tourism which was an additional factor to bring down the big country. The financial chaos has definitely caused a negative outcome on the income generated from the tourism sector as visitors from US & Europe would be less able to visit the country.

However, Tourism revenues managed to jump to $ 10.827 billion at the end of June as opposed to $ 8.183 billion for the same period in 2007.

Amongst the financial crisis, the Egyptian economy was distinguished to substantiate a higher GDP growth given the large income increases from the notable tourism sector which contributes directly and indirectly by 11.3% of GDP. In 2008, GDP growth resulting from the tourism sector witnessed a significant increase of 32% pumping $ 10.8 billion into the Egyptian economy.

GDP grew by 7.2% till the end of June of year 2008, and Egypt’s promising economy registered the biggest growth rate for the past 20 years, GDP figures are estimated to boost in the future, however with the financial chaos and the increased inflation, there were worries over the expected GDP expansion into the coming future.

The Egyptian government announced to stop all new export gas deals until the year 2010 giving a priority for local demands. In July, it was estimated that Egypt’s gas reserves have been revised upwards by 10% where gas exports from Egypt attracted exploration investments for a total value of $ 14 billion.

Egypt’s oil consumption amounted for 3.58 million barrels/day in 2007. It is speculated to average to 3.66 million barrels/day and rise to 4.05 million barrels/day by 2012. In 2007, Egypt consumed an estimated figure of 30.35% of the region’s gas.

Another vital factor which plays a significant role in brining up the Egyptian’s GDP is the income generated from Suez Canal where revenues from it boosted by 23.6% to incorporate $ 5.2 billion.

The Egyptian government stated that revenue from the Suez Canal boosted to $ 504.5 million in August 2008 as opposed to $ 403 million for the same period in 2007.

The construction & Telecommunication sectors added up to the general growth rate contributing significant amounts of 14.8% and 14.2% correspondingly.

However, growth hit a lower pace as in the average growth rate reached 7.3% during the first nine months of 2007 and go down to 6.8% in April, May, and June.

Egypt is seen to be highly dependant on exporting goods & services and on income generation from the tourism sector, declines in such services as a result of the financial calamity is foreseen to

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negatively effect the Egyptian economy into the future. Although GDP is expected to boost into the future and Egypt’s economy managed to survive amid the crisis with strong liquid positions within the banking sector, it is undeniable that the declines in the Tourism and Exporting sector hit hard on the Egyptian economy. Tourism ranks number one source of foreign currency income for Egypt, which amounted for a gigantic estimated figure of $ 10 billion in 2007 and $ 11.6 billion in the end of 2008.

Egyptian Exchange – CASE 30

CASE 30

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2,000

4,000

6,000

8,000

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12,000

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The Egyptian Stock Exchange started off with a positive outlook, as CASE index managed to break the 11,000 basis points for the first time since its launch to close at 11,035.09 points on January 13th, 2008 which witnessed heavy trading and continued its upward trend until March, such month revealed companies announcing their positive financial results.

The first quarter of 2008 registered an increase of 7.66% in its index to close at 11,357.38 basis points in the ending month of March as opposed to 10,549.74 points in the first day of trading for 2008. However the index was seen to decline by 13.47% in the second quarter closing at 9,827.28 points in last day of June as compared with 11,357.38 at ending of March.

It is worth mentioning that April proved a good performance commensurate with high trading activity ending up the month’s trading index with a boost of 3.8%.

The Egyptian Stock Exchange started witnessing a decline during May reflected by the intensive selling transactions executed by Arab & foreign investors. As CASE lost 2.64% of its value and continue such losses until June to set at below 10,000 points. During June, Egyptian stock market was highly affected by the inflationary pressure within the Egyptian economy in light of rising food prices.

In June 2008, the international markets witnessed a sharp retreat as mostly advanced and developing markets decreased by 8-12% being highly affected by the skyrocketing oil prices. The Egyptian stock market retreated during June to close at 9,827 basis points declining by 11% as

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opposed to the previous month. In such month, the transaction of selling the Bank of Cairo was postponed.

During the third quarter, the index closed at 7,059.16 ending September as compared with 9,827.28 on the last trading day of June decreasing significantly by 28.17%.

The Egyptian largest real estate firm Talaat Moustafa Group dragged down the index to the bottom in September as company’s chairman was charged with a murder case. The company significant performance took on a huge effect the sector and the market.

The fourth quarter registered an even higher slump of 45.6% to close at 3,934.6 points in the last trading day of the year 2008 as opposed to 8,449.56 points on the last trading day of August.

Loss accumulations kept cramming up till the end of the year, as the Egyptian stock market was highly affected by the declines in the international markets to lose 33.19% during October alone. Moreover, many modifications were carried out on listing rules to guarantee high efficiency.

During November, a new trading system designed by NasdaqOMX group owned by NASDAQ exchange was implemented to allow doubling the maximum level of transactions that could be executed throughout the day.

During November, the Exchange portrayed a declining trend throughout the first three weeks of the trading month affected by the significant financial condition of the international markets. But the last quarter of the month, the market witnessed an increase of 14% throughout the last five trading sessions to close at 4,206 points.

The Annual drop registered 56.43% to stand at 4596.49 basis points as opposed to 10549.74 points.

Major News- 2008

January

• Orascom Construction Industries won a contract worth USD 1.75 billion to develop the first phase of Emaar Misr’s property project.

• Al Ezz Steel Company general assembly approved the distribution of EGP 1 per share cash dividends and the issuance of EGP 1.1 billion non-convertible bonds for a maximum period of 7 years.

• Quena Paper Industry Company general assembly approved a 1:10 stock split.

• Orascom Construction Industries signed an EGP 560 million contract with West Delta Electricity Production Company to establish a power plant.

• Samad Misr – Egyfert general assembly approved increasing the company’s authorized capital to EGP 300 million from the current EGP 60 million.

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• Golden Pyramids Plaza Company general assembly approved a stock split of 1:10.

• Egyptians Company for Housing Development and Reconstruction general assembly approved increasing the company’s capital by EGP10 million (5 million shares) through a private placement at a price of EGP 10( par value of EGP 2 plus a premium of EGP 8) and to be allocated as follows:

2.6million shares to be allocated to the International Company for Commercial Markets.

4 million shares to be allocated to the Egyptians Abroad Investment and Development Company.

• Orascom Hotels and Development bought a 51% share in a hotel and a marina for a total amount of $ 35 million.

• Egyptian Chemical Industries general assembly approved the distribution of EGP 3.5 per share cash dividends.

February

• El Sewedy Cables bought a 10% share in Misr Mechanical Projects Company.

• Commercial International Bank, HSBC Bank Egypt, Banque Misr and National Société Générale Bank signed a financing agreement worth EGP 2.2 billion with Egyptian Company for Mobile Services (Mobinil).

• HSBC Bank’s general assembly approved the distribution of EGP 49.5 per share as cash dividends.

• Housing and Development Bank entered a joint venture with Delta Capital to set up a company with capital worth EGP 10 million that manages the bank’s investment funds.

• Egyptian Iron and Steel Company general assembly approved increasing the company’s paid-up capital to EGP 976,872,278. The general assembly also approved increasing the company’s authorized capital to EGP 2 billion.

• Semiramis InterContinental Cairo general assembly approved the distribution of EGP 72 per share cash dividends.

• Samad Misr – Egyfert general assembly approved increasing the company’s authorized capital to EGP 300 million from the current EGP 60 million.

• Egypt Free Shops Company general assembly approved the distribution of 50% free shares and a stock split of 1:10.

• Orascom Telecom Holding general assembly approved the reduction of the company’s capital to EGP 1,028,100,000 from the current EGP 1,090,000,000.

• Misr National Steel general assembly approved the EGP 150,617,391 cash dividends.

• Amoun Pharmaceutical Company general assembly approved the acquisition of 99.8% stake of Amoun Pharmaceutical Distribution Company.

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March • Suez Canal Bank’s general assembly approved the offer presented by the Arab

International Bank to buy Suez Canal Bank’s 29.38% stake in Suez Canal Company for Technology Settling for a total value of EGP 494,930,886 (EGP 19 per share).

• Egyptian Gulf Bank general assembly approved the distribution of 7% free shares.

• Cairo Poultry Company launched a slaughter house with an investment of EGP 135 million.

• El Saed Contracting Company general assembly approved a rights issue of 504% which is to be followed by a rights issue of 65.5629%.

• Orascom Construction Industries general assembly approved the distribution of EGP 305 per share cash dividends. The general assembly also approved the capital increase of 6.32% through a private placement.

• National Société Générale Bank general assembly approved the distribution of 2.5% cash dividends and 10% free shares.

• Egyptian Sponge Company general assembly approved the distribution of EGP 6 per share cash dividends.

• Commercial International Bank general assembly approved the distribution of 10% cash dividends and 50% free shares.

• Egyptian Transport and Commercial Services Company general assembly approved the distribution of 15% free shares

• Misr Cement Company general assembly approved the distribution of EGP 5 per share cash dividends.

• International Company for Agricultural Crops general assembly approved a stock split of 10:2 and approved a rights issue of 100%. The general assembly also approved to increase the company’s authorized capital to EGP 500 million.

• Alexandria for Real Estate Investments general assembly approved to increase the company’s authorized capital to EGP 1000 million from the current EGP 400 million. The general assembly also approved the distribution of 7% cash dividends and approved a rights issue of 149.9981%.

• Sidi Krier Petrochemicals Company general assembly approved the distribution of EGP 2 per share cash dividends.

• Egyptian Starch and Glucose general assembly approved the distribution of EGP 0.59 per share cash dividends.

• Egypt Gas Company general assembly approved the distribution of 100% cash dividends and the distribution of 100% free shares. The general assembly also approved to increase the company’s authorized capital to EGP 500 million.

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• El Nasr Refractories and Ceramics Company general assembly approved the distribution of 41.5285% free shares.

• Egyptian Company for Mobile Services general assembly approved the distribution of EGP 4.34 per share cash dividends.

• Cairo Trade and Industry general assembly approved the distribution of EGP 1.6 per share cash dividends.

• Cairo Housing and Development Company general assembly approved the distribution of 25% free shares. The general assembly also approved increasing the authorized capital to EGP 1 billion and the paid up capital to EGP 468.75 million through a rights issue of 500%.

• Alexandria Spinning and Weaving Company general assembly approved the distribution of EGP 0.07 per share cash dividends.

• Zahraa El-Maadi Investment and Development general assembly approved the distribution of 90% cash dividends.

• Arab Ceramic Company general assembly approved the distribution of 18% cash dividends and the distribution of 50% free shares.

April

• Sinai Cement Company general assembly approved the distribution of EGP 1.25 per share cash dividends.

• Saudi Egyptian Investment and Finance general assembly approved the distribution of 10 per share cash dividends.

• Prime Investments general assembly approved the distribution of EGP 6.67 per share cash dividends.

• Olympic Group for Financial Investments general assembly approved the distribution of EGP 1.5 per share cash dividends.

• Misr Financial Investments Company’s general assembly approved the distribution of 40% cash dividends and a stock split of 1:10. The shareholders also approved increasing the company’s paid-up capital by EGP 20 million and to increase the company’s authorized capital to EGP 500 million from EGP 100 million.

• Medical Union Pharmaceuticals general assembly approved the distribution of EGP 1.7 per share cash dividends.

• Lecico Egypt general assembly approved the distribution of 60% cash dividends and 100% stock dividends. The shareholders also approved increasing the authorized capital to EGP 500 million.

• Cairo for Investment and Development shareholders approved the distribution of 4% cash dividends.

• Telecom Egypt general assembly approved the distribution of EGP 1 per share cash dividends.

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• Lord Precision Industry’s general assembly approved the distribution of $ 1.3 per share cash dividends.

• Al Arafa for Investments and Consultancies bought a 100% share in Specialty Retail Group Limited-UK for a total amount of EGP 236,145,588.

• National Company for Housing for Professional Syndicates general assembly approved the distribution of EGP 1 per share cash dividends.

• Al Watany Bank of Egypt general assembly approved the issuance of EGP 1 billion bonds.

• Egyptian Satellite Company general assembly approved the distribution of EGP 0.35 cash dividends per share.

• EFG – Hermes bought 51% share in Oman-based Vision Securities Company for a total amount of USD 15.3 million.

• Delta Securities Egypt received the Listing Committee’s approval to change its name into Delta Rasmala Securities.

• Delta Securities Egypt general assembly approved the distribution of EGP 4.999 per share cash dividends.

• Cairo Radiology Center general assembly approved the distribution of 12.5% cash dividends.

• Egyptian Financial and Industrial Company general assembly approved the distribution of 33.33% stock dividends and approved a stock split of 1:4.

• Orascom Telecom Holding general assembly approved the distribution of EGP 1 per share cash dividends.

• Egypt Kuwait Holding Company general assembly approved the distribution of 10% cash dividends and the distribution of 10% stock dividends.

May • Pyramisa Hotels and Cruises general assembly approved the distribution of 22.22% stock

dividends and a rights issue of 10.75%. The general assembly also approved increasing the company’s capital to EGP 1 billion from EGP 500 million.

• Al Ezz Ceramics and Porcelain Company signed an EGP 80 million financing agreement with Banque Misr to finance the company’s expansion projects.

• South Valley Cement general assembly approved the distribution of 40% stock dividends and increasing the company’s authorized capital to EGP 5 billion from the current EGP 3 billion.

• Minapharm Pharmaceuticals general assembly approved the distribution of EGP 12.5 per share cash dividends.

• Remco for Touristic Villages Construction general assembly approved the distribution of 5% cash dividends.

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• Mena for Touristic and Real Estate Investment general assembly approved the distribution of 100% stock dividends.

• Tourah Cement Company general assembly approved the distribution of EGP 9.34 per share cash dividend.

• Arab Cotton Ginning Company sold its stake in Belton Investment for a price of EGP 107 million.

• Ajwa for Food Industries – Egypt general assembly approved increasing the company’s capital to EGP 1 billion and the acquisition of 80% of for Food Industries - GCC Holding.

• Cairo Cotton Centre general assembly approved the distribution of EGP 0.59 per share cash dividends.

June

• Sokhna Port Development Company general assembly approved changing the company’s name to Sokhna Dubai International Ports Company.

• Egyptian Kuwaiti Holding annual general meeting approved the distribution of 10% bonus shares.

• TMGH for Real Estate and Tourism Investment purchased National Bank of Egypt’s stake of 133.60 million shares in Tala’at Mustafa Company. The transaction, worth roughly EGP 1.275 billion, brings TMGH’s total share in Tala’at Mustafa Co. to approximately 50%.

• Minapharm Pharmaceuticals extraordinary general meeting approved the company’s capital increase from EGP 113,204,300 to EGP 1,236,611,000 representing a capital increase of EGP 10,456,800 through a private placement. At the same time Minapharm Pharmaceuticals extraordinary general meeting and cancelled the resolutions decided by the EGM held on October 7th, 2007 for the approval of 14.99% private placement.

• Orsacom Construction Industries received the approval of the Listing Committee to increase its capital by EGP 12.77 million shares at a price of EGP 607.93 per share minus expected cash dividends of EGP 300 per share through the private placement allocated to Abraaj Capital based in UAE, where Abraaj Capital will own 5.95% stake in the company.

• Torah Cement Company’s extraordinary general meeting approved the 1:2 stock split and the distribution of 50% bonus shares. In addition the company approved increasing the company’s capital from EGP 119,207,000 to EGP 357,621,000.

• Egypt Kuwait Holding Company general assembly approved the distribution of 10% bonus shares.

• Orascom Telecom Holding received the listing Committee’s approval to reduce the company’s capital through buying treasury shares of 61,900,000.

• Société Arabe Internationale de Banque extraordinary general meeting approved increasing the bank's authorized capital from USD 150 million to USD 200 million and increasing the bank's paid-up capital from USD 120 million to USD 150 million.

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• Ajwa for Food & Industries acquired an 80% stake in Ajwa for Food Industries - GCC Holding (UAE), with a capital of AED 500 million.

• Heliopolis Housing and Development Company extraordinary general meeting approved 1:5 stock split.

• Orascom Construction Industries received two construction contracts from Kellogg, Brown & Root International for performing civil work and piling installation for the natural gas train based in Algeria for a total period of 14 months.

July

• Six of October Development and Investment SODIC general assembly approved increasing the company's capital by 0.5 million shares to reach 28,413,396 shares. The capital increase will be allocated to the company's employee's stock options.

• Talaat Moustafa Group sold 19,575 units of Madinty real estate project for a total value of EGP 16.5 billion.

• Alexandria Portland Cement Company general assembly approved the distribution of 136.5% cash dividends.

• Arab Contractors Medical Center general assembly approved increasing the company's capital by EGP 11,500,000.

• Egyptians Abroad Investment and Development Company established an alliance with Egyptian Housing Development & Reconstruction Company for the construction of the residential villas based in Cairo for a total value of EGP 200 million. The board of directors also approved investing up to 26% stake in the establishment of Egyptians Abroad for Cement Company.

• Vodafone Egypt Telecommunications Company general assembly approved the distribution of EGP 7.6 per share cash dividend.

• Orascom Construction Industries's owned subsidiary Besix Group with the cooperation of Alstom was granted a US 400 million contract for designing Al Safooh Transit System in Dubai.

• Commercial International Bank along with the Investor Group signed an agreement to acquire the remaining 50% of CI Capital Holding outstanding shares.

• Remco for Touristic Villages Construction general assembly approved the distribution of EGP 1.25 per share cash dividends.

• HC Securities and Investment obtained the listing committee's approval to list its 20 million ordinary and 500,000 preferred shares on the Egyptian Stock Exchange.

• Dice Sports and Casual Wear obtained the listing committee's approval to list its 500,000 shares on the Egyptian Stock Exchange.

• Commercial International Bank annual general meeting approved the distribution of 50% bonus shares.

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• Development & engineering Consultant’s general assembly approved the increase in the company’s capital from EGP 150 million to EGP 500 million.

• Acrow Misr general assembly approved increasing the company's capital from EGP 33.75 million to EGP 56.25 million resulting in an increase of EGP 22.5 million through 66.66% rights issue.

• Six of October Development and Investment signed a contract for a total value of EGP 191 million with Al Wataniya for Mechanical & Electrical Works Company for the development of Allegria residential project infrastructure.

• International Company for Agricultural Crops was oversubscribed of rights issue by 856.84 times with an allocation percentage of 0.1167%.

• Maridive and Oil Services was acquired by Pacific Crest by 52.22% stake in the Offshore Oil Services Limited, a shareholder held by the company.

• Maridive and Oil Services company's owned subsidiary Valentine Maritime signed a contract worth EGP 2 billion with the Saudi Arabian Aramco Oil Company for the construction of crude oil pipelines.

• Ajwa for Food Industries - Middle East board of directors approved the company's investment in Orouba Agrifood Processing Company based in Egypt.

• Egyptians Abroad Investment and Development Company received general assembly's approval for the stock split of 1:4. Moreover the company approved increasing the authorized capital to EGP 750 million.

• Orascom Telecom Holding was awarded a license for the Canadian wireless operator along with Globalive Communications Corporation based in Canada for a total value of USD 441.9 million.

• Oriental Weavers Carpet general assembly approved the distribution of 33.33% as bonus shares.

• Arab Aluminium’s general assembly approved the 30% cash dividend for the end of the year of 2007.

• Cairo Poultry Company board of directors approved the divestment of 78% stake in Al Hachimi Company. The company also approved acquiring 100% stake in Al Ahed Jadeed Poultry Company.

• Egyptian Sponge Company received the Capital Market Authority’s approval where 183,434 shares in the company’s capital was bought by Mac Holding for Industries for a price of EGP 133.5 per share.

• Al Arafa for Investments & Consultancies entered a joint venture with Apparel Consulting based in Spain for establishing a new company in Egypt.

• Alexandria Portland Cement acquired 74.46 million shares in 4M Titan Silo Company by increasing its share in such a company by 96.54%.

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• Faisal Islamic Bank of Egypt general assembly approved 50% rights issue as the remaining 5,014,792 shares were subscribed and the subscription period reopened on July 13,2008 and closed on July 27,2008.

August • South Valley Cement’s general assembly approved the distribution of bonus shares increasing

the company’s capital from EGP 295,753,381 to EGP 411,097,199.

• El Sewedy Cables general assembly approved the distribution of 10% bonus shares.

• El Sewedy Cables acquired 70% stake in the Egyptian Company for the Manufacturing Electrical Insulators.

• Commercial International Bank’s 5.24% in the banks capital was acquired by Dubai Capital Group part of Dubai Holding which accumulated the stake of Egypt’s largest publicly traded lender from the Egyptian and London stock exchanges over the past few months.

• Orascom Construction Industries in cooperation with Veolia Water Systems based in UAE and with its 50% owned subsidiary, Besix Group (which holds 33% stake in the project) signed BOOT contract with Abu Dhabi Water & Electricity Authority for a total value of EUR 525 million for the financing, construction and operation of two new wastewater treatment plans in Abu Dhabi & AL Ain.

• Delta Construction and Rebuilding 2,857 bonus shares were allocated to the company's Employees Stock Option System increasing the company's capital from 17,329,531 to 19,805,227 shares.

• El Salam Brokerage sold 70% stake to Abu Dhabi Financial Services Company.

• Egypt Free Shops Company's general assembly approved the distribution of EGP 0.79 cash dividends.

• South Valley Cement signed a contract worth EGP 189.3 million with Alexandria Construction Company for supplying concrete for the Madinaty project.

• Suez Canal Bank established a fund for a total value of EGP 100 million in cooperation with Beltone Financial based in Egypt under the name of Al Agyal. The fund matures within 25 years.

• Alexandria Mineral Oil Company general assembly approved the following:

1. Distribution of cash dividends of EGP 7.5 per share and EGP 1 per share. 2. Confirmed cancellation of 10:2 stock split.

• EFG-Hermes acquired 6,732,675 shares which comprise 9.06% in Panmure Gordon & Company based in London for a total value of USD 6 million.

• Alexandria Pharmaceuticals and Chemical Industries Company general assembly met and approved the distribution of 50% bonus shares and the distribution of EGP 5 as cash dividends.

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• Mena for Touristic and Real Estate Investment acquired 122,000 square meters parcels of land in North Coast, Alexandria through an auction by Arab International Bank representing a total cost of EGP 40 million.

• Remco for Touristic Villages Construction general assembly approved increasing the company’s capital from EGP 1.5 million to EGP 5 million.

September • South Valley Cement general assembly approved the distributing of 33.33% bonus shares.

• National Bank for Development general assembly approved changing the bank’s name to Abu Dhabi Islamic Bank Egypt.

• Al Ezz Dekheila Steel Company-Alexandria general assembly approved the distribution of EGP 35 cash dividend per share.

• Abu Qir Fertilizers Company general assembly approved the distribution of EGP 11.25 cash dividend per share.

• Alexandria Portland Cement Company general assembly approved in its extraordinary meeting the merger with Blue Circle Egypt for Cement.

• Mohandes Insurance Company shareholders approved the distribution of EGP 12.5 million cash dividends.

• Minapharm Pharmaceuticals shareholders approved increasing the company’s capital by 12 %, a right issue of 10% and a private placement of 2%.

• Alexandria Container Handling shareholders approved the amendment of the company’s stake in Egyptian Navigation Company to 2% instead of 5%.

• National Cement Company’s shareholders approved the distribution of EGP 2.25 per share cash dividend.

October

• Upper Egypt Flour Mills’ shareholders approved the distribution of EGP 3.3 per share cash dividends.

• Giza General Contracting and Real Estate Investment Company’s shareholders approved the distribution of bonus shares by 11.11%.

• Export Development Bank of Egypt’s general assembly approved in its extraordinary meeting to increase the bank’s capital to EGP 2 billion.

• Misr Oil and Soap Company’s shareholders approved the distribution of EGP 1 per share cash dividends.

• North Cairo Flour Mills Company shareholders approved the distribution of EGP 1.75 per share cash dividends.

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• The market regulator in Egypt approved National Bank of Kuwait’s bid for 100% of Al Watany Bank of Egypt.

• Orascom Construction Industry’s subsidiary OCI Algeria was granted three contracts worth USD 86.4 million, two by the Algerian Ministry of Housing and one by Societe des Tabacs Algero-Emiratie, or STAEM.

• Aluminium Company of Egypt’s shareholders approved the distribution of an EGP 4 per share cash dividends.

• Heliopolis Housing and Development Company’s shareholders approved in their extraordinary meeting the distribution of EGP 5 per share cash dividend.

• Arab for Trade and Cotton’s general assembly held an extraordinary meeting and approved the distribution of EGP 0.60 per share cash dividend.

• Orascom Construction Industries signed a contract worth EGP 604 million to construct a solar thermal electric power station in Egypt.

• Orascom Telecom Holding sold 3% of its share in Hutchison Telecommunications International Ltd for a total amount of USD 198 million. Orascom Telecom Holding currently owns a stake of 16.19% HTIL.

• Giza General Contracting and Real Estate Investment Company shareholders approved increasing the company’s capital to EGP 10 million from EGP 9 million.

• Orascom Construction Industries fully acquired National Steel Fabrication after acquiring the remaining 50% stake from the Consolidated Contractors Company for a total value of USD 13.5 million.

• Egyptian Iron and Steel’s shareholders approved the distribution of EGP 0.25/share cash dividend.

• Nile Cotton Ginning sold a parcel of land for a total amount of EGP 44.22 million.

• Arab Ceramic Company entered a joint venture to buy a 60% share in EgyPaper Company.

• Housing and Development Bank general assembly held an extraordinary meeting and approved the following:

• A right issues of 20%. • A 75% secondary offering. • A 5% private placement allocated to employees. • An increase in authorized capital from EGP 1 billion to EGP 3 billion.

• El Sewedy Cables along with El Sewedy Electrometer Egypt bought a 97.55% stake in Slovenian-based Iskraemeco Company for a total amount of EUR 37.6 million.

• Paints and Chemical Industries general assembly approved the distribution of EGP 3.5 per share cash dividend.

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• National Cement Company – Egypt general assembly approved establishing the EGP 600 million Al-Nahda Industries in which National Cement Company will hold a 30% stake.

• Arab Aluminum general assembly was held and approved the following:

• The increase in authorized capital from EGP 10 million to EGP 100 million. • The increase in paid up capital by EGP 20 million to reach EGP 28,260,200.

• Société Egyptienne d'Entreprises general assembly was held and approved the distribution of EGP 3 per share cash dividend.

• Heliopolis Housing and Development Company sold 29 parcels of land through an auction for a total amount of EGP 38,384,961.

November

• Remco for Touristic Villages Construction general assembly approved the acquisition of the remaining 50% stake in the International Company for Tourism.

• El Saed Contracting Company general assembly approved increasing the capital from EGP 60 million to EGP 500 million and 500% rights issues followed by a 66.66% rights issue.

• Heliopolis Housing and Development Company sold 23 parcels of land through a direct sale for a total amount of EGP 29,996,299.

• Cairo Oil and Soap sold 8 parcels of land for EGP 5,045,000 through an auction.

• Talaat Mostafa Group raised its stake, through a deal worth USD 350 million, in the following companies:

• Arab Company for Hotel and Touristic Investments from 51.5% to 80% stake. • San Stefano Real Estate Investment Company from 98.2% to 100% stake. • San Stefano Tourism from 47% to 84.6% stake. • Nile Hotel Company from 40% to 100% stake.

December

• Remco for Touristic Villages Construction general assembly approved the acquisition of the remaining 50% stake in the International Company for Tourism.

• French-based The Lafarge Company acquired the Orascom Construction Industries' subsidiary, Orascom Cement, for the price of EUR 8.8 billion, representing EUR 6 billion in cash and 22.5 million shares-worth EUR 2.8 billion-in Lafarge issue to Mr. Nassef Sawiris.

• BLOM Bank-Egypt general assembly approved selling its branch and its stakes in the Lotus Company and the Transfond Company located in Romania, to Blom Bank France, for a total value of EUR 33,877,000.

• Arab Swiss Engineering Company’s subsidiary, SEC Cement Holding, acquired 35% stake in Zahana Cement Company (Algeria) for EUR 32.6 million.

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New Listing – 2008 / CASE

Company Name Number of Shares ( in Million ) Listing Date

El Badr Plastic* 0.340 June 11th 2008 Masria Card* 2.159 June 19th 2008 Pioneers Holdings for Financial Investments 500 June 22nd 2008 Abu Dhabi Securities Brokerage 0.5 June 30th 2008. HC Securities and Investment 19.5 July 2nd 2008 Dice Sports and Casual Wear 0.5 July 2nd 2008 T N Holdings for Investment* 4 July 3rd 2008 Trans World Trading 35.750 July 24th 2008 Alkan Textile Company 1 August 6th 2008 El Shams Pyramids for Hotels and Touristic Projects 0.720 September 25th 2008

* listing took place over Nile Stock Exchange

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Palestine

Economic Snapshot

Palestine's Economic indicators of GDP and inflation displayed negative signs due to the political instability characterizing the country.

Inflation in the Palestinian territory during 2008 reached 9.89% effected mainly by food and soft drink price increase which reached 17.26% followed by the prices of restaurants and cafes group with a rate of 12.94%. Gaza strip witnessed the highest inflation of all regions hitting 13.98% on the back of food and soft drink's price increase that registered a rate of 21.97%.

According to the Palestinian Center for Bureau of Statistics, GDP in the Palestinian territory reached $ 3,060.40 million for the nine months ending in September 2008 compared to $ 4,133.40 million registered the same period a year before with a decrease of 25.96%, Per Capita GDP also declined to reach $ 278.8 per person when compared with $ 299.5 per person recorded at the same period in 2007.

Palestine Securities Exchange

Al- Quds Index

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PSE completed the first three months of 2008 on a growth of 24.27% when Al Quds index closed at 655.21 points, services index witnessed the highest incline by 36.43% followed by banking with 12.40% progress. January trading contributed the highest for the quarterly growth where the index increased by 13.05% as it was mainly driven by heavy weighted stocks performance like PALTEL and PADICO which captured most of the traded value that month.

Al Quds index continued its ascending trend during the second quarter of the year though at a slower pace. The index closed at 688.58 points, increasing by 5.09% when compared with 655.21 points recorded at the end of the pervious quarter. Banking index came as the highest incliner among all other indices growing by 10.44% while insurance dropped by 13.49%.

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The market changed its direction during the third quarter following the same global trend prevailing at that time, the index ended September trading sessions on 644.84 points, recording a quarterly loss of 6.35% affected by the notable decline in services index which lost 17.16% of its value during the three months of July, August and September.

Losses continued to accumulate till the final months of the year, the index reached its lowest year to date value on the 26th of November 2008 when it closed at 407.33 points.

On annual basis, PSE concluded the year on a yearly loss of 16.32% when Al- Quds index closed at 441.66 points compared to 527.26 points quoted at the end of 2007. Throughout the year, services sector captured the highest portion of market cap reaching $ 995,627,531. Services' stocks realized the highest market value during the year reaching $ 495,655,316, while investment stocks captured the highest level of trading comprising 44.46% of total volume traded over PSE, it is worthy to take into consideration that PSE ended 2008 with the least losses when compared to the rest of the region covered in this report. Number of shares traded reached 339,168,807 shares with a value of $ 1,185,204,211 and market cap stood at $ 2,126.06 million.

Regarding the sector's performance, all indices recorded losses with investment index topping the list at a yearly decrease of 42.23% followed by insurance index with 25.43% drop, while services index managed to conclude the year with the minimal losses of 2.78%.

Major News- 2008

April • Palestine Telecommunications Company distributed JOD 0.25 per share cash dividends.

• Arab Islamic Bank increased its capital to USD 39,943,951 through the distribution of 8% stock dividends.

• Bank of Palestine distributed 29.38% stock dividends.

May

• Figures released by the Palestinian Central Bureau of Statistics showed that the unemployment rate in the west bank during the first quarter of 2008 stood at 19% compared to 19.2% registered during the fourth quarter of 2007. The unemployment rate in Gaza Strip reached 29.8% in the first quarter of 2008 relative to 29% recorded in the fourth quarter of 2007.

• Palestine Investment Bank distributed 10% cash dividends.

• Arab for Paints Products distributed 11% cash dividends.

• Jerusalem Cigarettes distributed cash dividends of one Shekel per share.

• AlQuds Bank for Development & Investment changed its name to Al Quds Bank.

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New Listing – 2008 / PSE

Company Name Number of Shares Listing Date Trust International Insurance

Company 8,250,000 May 13th 2008

Nablus Specialty Hospital's 3,177,813 June 29th 2008

Disclaimer This report was prepared by Amwal Invest. It is provided for information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities. The information contained herein is based upon sources we believe to be reliable, but no representation, expressed or implied, is made with respect to the accuracy, completeness or reliability of the information or the opinions in the report. Amwal Invest accepts no liability for any loss arising from the use of this document. Opinions and estimates constitute our judgment and are subject to change without prior notice. Amwal Invest has no obligation to update, modify or amend this report or to otherwise notify a reader thereof in the event that any matter stated herein changes or subsequently becomes inaccurate. This report may not be reproduced or redistributed without the authorization from Amwal Invest.

Research Team Riham N. Al-Masri Loay Abu Baker Head of Research Research Assoicate [email protected] [email protected] Arwa Ayyash Rana Al-Bashiti Analyst Analyst [email protected] [email protected]

REGIONAL WRAP UP REPORT 2008

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