1. 28-30 June 2004, IREF-London 1 Islamic Real Estate Finance Presentation

2. 28-30 June 2004, IREF-London 2 Gulf Investment House GIH is a private shareholding company, established in 1998, based in Kuwait with a subscribed and paid up capital of KD 32.7 Million (U.S. $110 Million) and listed at KSE. GIH is a private shareholding company, established in 1998, based in Kuwait with a subscribed and paid up capital of KD 32.7 Million (U.S. $110 Million) and listed at KSE. The primary core values of GIH is to conduct its business in accordance with the principles of Islamic Shari’a and deliver creative and superior Islamic investment products and services approved by GIH’s Shari’a Board. The primary core values of GIH is to conduct its business in accordance with the principles of Islamic Shari’a and deliver creative and superior Islamic investment products and services approved by GIH’s Shari’a Board. GIH has an excellent mix of products in a fast growing developing markets of the GCC and the developed and established markets of Europe and the US. GIH has an excellent mix of products in a fast growing developing markets of the GCC and the developed and established markets of Europe and the US.

3. 28-30 June 2004, IREF-London 3 INNO…… We, at GIH believe innovation within this cycle is a key element of success for all investment companies determined to prosper in the explored and unexplored Islamic market. We, at GIH believe innovation within this cycle is a key element of success for all investment companies determined to prosper in the explored and unexplored Islamic market. Creativity and innovation helps surpass barriers and expedites the development process. Innovational creativity is what transforms an idea that is thought to be impossible, into a well-structured investment product or service. Creativity and innovation helps surpass barriers and expedites the development process. Innovational creativity is what transforms an idea that is thought to be impossible, into a well-structured investment product or service. To be ahead of the competitive market; GIH’s strategy was to be closer to targeted markets where GIH participate in co-founding and establishing sister companies. To be ahead of the competitive market; GIH’s strategy was to be closer to targeted markets where GIH participate in co-founding and establishing sister companies.

4. 28-30 June 2004, IREF-London 4 GIH’s Sister and Co-founded Companies CompanyLocationSector Transocean Capital, Inc. USA Finance Halcore Group, Inc. USA Manufacturing - ambulances Stronghaven, Inc. USA Manufacturing - cardboard boxes and other corrugated product Innovest Capital Inc. USA Real Estate Investment Aqarat Al-Khaleej Real Estate Saudi Arabia Real Estate Al-Khaleej Finance& Investment BahrainFinance Overland Leasing Bank BahrainFinance Al-Khaleej Development Co. Bahrain Real Estate Balexco, Bahrain Aluminum Extrusion Co. Bahrain Manufacturing - Aluminum Extrusion Osoul Leasing and Finance Co KuwaitFinance Amar Leasing and Finance Co KuwaitFinance Takaful Insurance KuwaitInsurance Arkan Real Estate Kuwait Real Estate Mashaer Hajj and Umrah Consortium KuwaitService

5. 28-30 June 2004, IREF-London 5 ….vation We were at a stage of trying to develop a new essential investment product, a product not yet introduced in the Islamic market. The Islamic Construction Finance Structure ( An Istisna’a and Ijara Islamic Finance Structure). We were at a stage of trying to develop a new essential investment product, a product not yet introduced in the Islamic market. The Islamic Construction Finance Structure ( An Istisna’a and Ijara Islamic Finance Structure). Started with a conceptual development; Started with a conceptual development; Structural development of product; Structural development of product; Final Product; Final Product; Usage of product. Usage of product.

6. 28-30 June 2004, IREF-London 6 Different Phases of Development Cycle: We therefore began the establishment of our second essential partnership, that with King & Spalding, a U.S. based Legal Advisory firm with a thorough understanding of Shari’a principles. We therefore began the establishment of our second essential partnership, that with King & Spalding, a U.S. based Legal Advisory firm with a thorough understanding of Shari’a principles. Overall, the legal firm was responsible for developing a finance structure that accommodated the needs of the following parties and related requirements: Overall, the legal firm was responsible for developing a finance structure that accommodated the needs of the following parties and related requirements: Shari’a Supervisory Board; compliance with Shari’a Principles Shari’a Supervisory Board; compliance with Shari’a Principles U.S. Investment Advisory firm; highest possible returns and cost efficiency within the financial sphere of Western requirements U.S. Investment Advisory firm; highest possible returns and cost efficiency within the financial sphere of Western requirements U.S. banks; compliance with traditional banking structures and regulations U.S. banks; compliance with traditional banking structures and regulations U.S. regulatory authorities; compliance with banking, tax, and other legal issues U.S. regulatory authorities; compliance with banking, tax, and other legal issues GIH; compliance with both investor needs and internal investment guidelines GIH; compliance with both investor needs and internal investment guidelines

7. 28-30 June 2004, IREF-London 7 At this stage our prime concern was how to put the creativity and innovation thrown into our potential product to work. It was obvious that there were several important real issues that had to be considered and addressed. Can the U.S. banks willingness and flexibility in approving Shari’a- compatible financing arrangements, as mentioned in the legal structure, actually be implemented in the real world? Can the U.S. banks willingness and flexibility in approving Shari’a- compatible financing arrangements, as mentioned in the legal structure, actually be implemented in the real world? Can Shari’a-compatible financing be secured through a U.S. bank at a reasonable rate? Can Shari’a-compatible financing be secured through a U.S. bank at a reasonable rate? How do Western institutions (like construction contractors, developers, etc.) feel about working with a new structure that upholds Shari’a principles? How do Western institutions (like construction contractors, developers, etc.) feel about working with a new structure that upholds Shari’a principles? Will it be too risky to allocate approximately $100 million of capital, both equity and financing, towards a newly introduced product? Will it be too risky to allocate approximately $100 million of capital, both equity and financing, towards a newly introduced product? Is it possible that the actual product will deviate from Shari’a requirements once the product is operational? Is it possible that the actual product will deviate from Shari’a requirements once the product is operational?

8. 28-30 June 2004, IREF-London 8 We needed a strategy that will minimize the risks involved in introducing our newly developed product. We wanted to insure that all the aforementioned questions would not pose a threat down the line after committing a significant investment in the product. Therefore, it was decided to develop a “Pilot Investment” called The Maconda Park Project consisting of construction of a multi-family housing development at a cost of approximately US$ 17 million where financing was provided by Key Bank, the luxurious 232 apartment community are located in Austin, Texas, in this “Pilot investment” test a replicant of all the expected transactions of the structure where put in use. The objective of the “Pilot Investment” was to: Therefore, it was decided to develop a “Pilot Investment” called The Maconda Park Project consisting of construction of a multi-family housing development at a cost of approximately US$ 17 million where financing was provided by Key Bank, the luxurious 232 apartment community are located in Austin, Texas, in this “Pilot investment” test a replicant of all the expected transactions of the structure where put in use. The objective of the “Pilot Investment” was to: Verify whether the terms and conditions of the investment was aligned with those terms and conditions set by the Shari’a Supervisory Board, Verify whether the terms and conditions of the investment was aligned with those terms and conditions set by the Shari’a Supervisory Board, Analyze the flow of agreements and documentation involved with this test project, Analyze the flow of agreements and documentation involved with this test project, Insure that adequate Shari’a-compatible financing arrangements was available, and finally put to test. Insure that adequate Shari’a-compatible financing arrangements was available, and finally put to test.

9. 28-30 June 2004, IREF-London 9 After the successful launch of our “Pilot Investment”, all parties, including GIH, Key Bank and King & Spalding were comfortable and extremely optimistic in placing the first ever U.S. Construction Finance Program structured as a Fund in the Islamic market. INNOVATION INNOVATION

10. 28-30 June 2004, IREF-London 10 BUNYAN FUND The Bunyan Fund, launched by GIH in 2001, to be the first Shari’a compliant real estate development fund in the U.S. The Bunyan Fund is comprised of four construction projects of class “A” multi-family apartments located in key Metropolitan Statistical Areas. The Fund’s portfolio of construction projects contains real estate assets valued at approximately $123 million covering 63 acres, comprising of 60 buildings, and representing 963 units. The Bunyan Fund, launched by GIH in 2001, to be the first Shari’a compliant real estate development fund in the U.S. The Bunyan Fund is comprised of four construction projects of class “A” multi-family apartments located in key Metropolitan Statistical Areas. The Fund’s portfolio of construction projects contains real estate assets valued at approximately $123 million covering 63 acres, comprising of 60 buildings, and representing 963 units. At this stage now Bunyan Fund has successfully liquidated approximately 45% of its assets at an IRR of 25%. At this stage now Bunyan Fund has successfully liquidated approximately 45% of its assets at an IRR of 25%.

11. 28-30 June 2004, IREF-London 11 Example of Construction Phases

12. 28-30 June 2004, IREF-London 12 Example of Final Phases

13. 28-30 June 2004, IREF-London 13 This structure is now widely accepted as This structure is now widely accepted as “The Islamic Construction Finance Structure” “The Islamic Construction Finance Structure”

14. 28-30 June 2004, IREF-London 14 Gulf Investment House will always be committed to INNOVATION. We will continue to take this extra step in introducing essential and new products. Gulf Investment House will always be committed to INNOVATION. We will continue to take this extra step in introducing essential and new products.