AREPCO SUKUK GAINS MOMENTUM

Bahrain Based Liquidity Management Centre BSC (“LMC”), the Mandated Lead Arranger and Emirates Islamic Bank, the Co-Arranger & Senior Lead Manager have gained significant momentum on the Al Ahlia Real Estate Project’s Company (AREPCO) Sukuk issuance. The two year Sukuk is a pre-IPO equity linked Sukuk, with an 8% profit rate payable semi-annually.

The objective of the issue is to purchase up to 49% equity in AREPCO at a USD equivalent of KD 0.325 fils per share, through prospective investors as a Pre-IPO Sukuk offering. AREPCO is currently a wholly owned subsidiary of Al Ahlia Holding Company (AHC) Kuwait. AHC shall continue to hold a 51% stake in AREPCO post the Sukuk offering, and the Company shall remain the real estate arm of AHC.

The Sukuk maybe listed on the Bahrain Stock Exchange and/or other suitable stock exchanges regionally for the tenor of the Sukuk.

The Sukuk's marketing has kicked off and is already seeing a strong demand from regional and international investors. The Sukuk offering is aimed primarily at institutional investors, targeting banks and financial institutions, fund managers, pension funds & insurance companies. Individuals are also eligible to purchase the Sukuk directly through LMC or their agent banks. There will be multiple closings for the issuance for which the first closing is scheduled for end of September 2007.

Mr. Ahmed Abbas, LMC’s CEO said "The issuance is priced very competitively bearing in mind the nature of the industry and being an equity linked Sukuk for a company with an impressive growth and track record. This will inevitably, contribute to the development of the vibrant capital markets in the region and complement the equity markets and benefit a wider economy”.

LMC has successfully closed a US$ 200 million Sukuk late 2006 for AREPCO formerly known as Al Ahlia Gulf Holding Company obtaining five years financing for the projects and operations.

About AL AHLIA REAL ESTATE PROJECTS COMPANY (AREPCO)

AREPCO is a premier real estate company, established in March 2nd, 2004 in Kuwait, and has a share capital of KD 55 million. AREPCO is currently a 100% owned subsidiary and the real estate arm of AHC, which is a KSE listed and profitable investment company with a long and successful track record. One of the major projects of the Company is the Lagoon City Project in Kheiran, Kuwait.

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