15th and 16th November 2005

Lagoon City US$ 125,000,000 Musharaka Sukuk Road Show commences in Kuwait

Kuwait Finance House K.S.C. (KFH), Liquidity Management Centre B.S.C. (LMC) and Al Muthanna Investment Company (MIC), the Mandated Lead Arrangers, have officially launched the US$ 125,000,000 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 2 year tenor Musharaka Sukuk which is structured as a reducing Musharaka will offer a return of 200 basis points over 6 month US$ LIBOR payable semi-annually and has an average maturity of 1.25 years. The Sukuk issue has been fully underwritten by the Senior Lead Managers; Kuwait Finance House and Emirates Islamic Bank and along with Liquidity Management Centre, Bahrain Islamic Bank, Dubai Islamic Bank and Islamic Development Bank as Lead Managers and Gulf Finance House Commercial Bank as Manager.

The Sukuk offering which commenced in Kuwait on the15th of November will be followed by another presentation in Bahrain on the 16th of November. It will be open for subscription by prospective investors over the next two weeks and is expected to close by end of this month (November 2005).

At the road show event held at Arraya Ballroom in the City of Kuwait, Mr. Abdullah Al Awadi, Assistant General Manager of Al Ahlia Investment Company commented on this occasion; “We are delighted to have this event launched today in Kuwait 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”.

Mr. Emad Al-Monayea, Manager International Investments at Kuwait Finance House also speaking on this occasion said; “We at KFH are happy to once again lead another successful Sukuk offering for a noted corporate name out of Kuwait and are proud to be associated and working with such prominent Islamic financial institutions in underwriting and promoting this Sukuk issue such as Emirates Islamic Bank, Dubai Islamic Bank, Islamic Development Bank, Liquidity Management Centre, Bahrain Islamic Bank and Gulf Finance House Commercial Bank. By managing this issue, KFH is confirming its obligation to develop the Islamic sukuk market and attract more international investment attention to the Kuwaiti market.

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 structuring advisor for the Sukuk issue which is the third to be offered out of Kuwait and the first Kuwaiti Sukuk breaking the US$ 100mm benchmark. From an organisational perspective we at LMC are extremely pleased to have offered two of the three Kuwaiti Sukuks issued to date. This is a reflection of our commitment to the development of the Kuwaiti Sukuk market”.

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).