Manama – 4 December 2006

Lagoon City Musharaka Sukuk Road Show launched in Bahrain.

Liquidity Management Centre B.S.C. (LMC), the Mandated Lead Arranger, has officially launched the Lagoon City Musharaka Sukuk offering in support of the Lagoon City residential and commercial real estate development as part of the broader Kheiran Pearl City project.

This 5 year tenor callable at end of year 2 by Obligor (Al Ahlia Gulf Holding Company) Musharaka Sukuk is structured as a reducing Musharaka and will offer a semi annual return. The Sukuk Issue has been rated “BBB+” by Capital Intelligence and is significantly over-collateralized. The Sukuk issue has been underwritten by the Senior Lead Managers; Emirates Islamic Bank, Liquidity Management Centre and Bahrain Islamic Bank, and the Lead Managers; Capital Management House, Islamic Development Bank and Sharjah Islamic Bank and the Co-Lead Manager; Khaleeji Commercial Bank.

The Sukuk offering which was launched in Bahrain on the 4th of December will be open for subscription by prospective investors over the next two weeks.

At the road show event held at the Regency Intercontinental Hotel in Mamama, Mr. Abdullah Al Awadi, Chairman of Al Ahlia Investment Company commented on this occasion; “We are delighted to have this event launched today in Bahrain with such overwhelming support reflected by the group of financial institutions for the Lagoon City project.” Mr. Al Awadi added; “As previously indicated I am confident that a unique project such as the Lagoon City will contribute to the development of the real estate sector and economy in Kuwait”.

Speaking at the road show event, Mr. Ahmed Abbas, Chief Executive Officer of the Liquidity Management Centre commented; “We are very proud to be associated with Al Ahlia Group and to be appointed as the Mandated Lead Arranger for the Sukuk issue. From an organisational perspective we at LMC are extremely pleased to have offered our second Sukuk issue in Kuwait. This is a reflection of our commitment to the development of the Kuwaiti Sukuk market.” Mr. Ahmed Abbas has also expressed his gratitude to the underwriters in this Sukuk issue for their continuous support and commitment to the Islamic Finance Industry.

About the Lagoon City Project:
Lagoon City is a sub-development of the much larger Kheiran Pearl City. As part the strategic sales and marketing plan devised by Ahlia Gulf Holding Company (AGHC), the Obligor has branded the 401 Sea Front and 155 Back Bay Plots as the “Lagoon City”. AGHC has undertaken the development of the Lagoon City residential village project with the objective of giving property investors the opportunity to own residential and/or coastal land overlooking prime sandy beaches in the remarkably unique location of Kheiran. Such property investors will have the possibility of building on these sites as per their personal preference (though subject to applicable general municipal zoning requirements).

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