Global Banking Corporation B.S.C (c ) Partners With Financial Times London For The Ft Commercial Property Conference 2008

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Manama, Bahrain - Global Banking Corporation B.S.C (c) (GBCORP)Global Banking Corporation B.S.C (c) (GBCORP) took pole position today at the FT Commercial Property Conference in London, giving insights on the prevailing property market in the UK.'

The FT property conference could not have come at a more challenging time. And the key questions on everybody's mind was 'How will the UK economy perform in 2009' and more importantly 'Is it the right time to invest in the UK market.' These questions gained added importance in the light of the crisis brought about by the collapse of the Lehman BrothersLehman Brothers bank in the USA and its global repercussions. The bailout of AIG by the US Federal Reserve Board and the HBOS share collapse in the UK.

Against such a volatile scenario, Mark Hanson, Chief Executive of GBCORPGBCORP opened the panel discussion on 'Is now the right time to invest in the UK', by firm affirmation of the current scenario, the cause factors that have led to it and the way forward in the coming months.

Highlighting the key aspects of the crisis facing the property industry, Mr. Hanson said: "The UK is facing its worst crisis in 60 years as is evidenced by the fall in the Sterling which is down by 10% and is likely to go to 1.50 against the US Dollar in Q1 of 2009 and even lower. The soaring unemployment rate with reports indicating that job cuts across the industry could reach 60,000 out of 300,000 people employed directly in the sector. The falling commercial and residential property prices with the commercial property market expected to drop by more than 25-50% and the drying up of the mortgage market. All these factors combined together have created a recessionary environment."

In an answer to a query on whether Sovereign Wealth Funds from the Middle East, would be inclined to look favourably at the UK market, Mr. Hanson, said that it was urealistic to expect the Sovereign Wealth Funds to be involved in the UK market, given the current scenario. A more prudent 'wait and watch' approach is what he anticipated.

Mr. Hanson was optimistic that opportunities would emerge in late 2009 and 2010. He applauded the UK and the US for taking the positive step of banning the short selling of shares of banks and all financial institutions and said that Hedge funds must be more tightly controlled and more accountability should be brought into the framework. "But in order for recovery to be real and substantial our global financial system requires major changes. I believe that now is the time for the global investment community to come together in partnership with world governments to create a single global financial regulator" he added.

In answer to another query on what are the lessons for investors from the Middle East, to be learnt from this crisis, Mr. Hanson, said: "One advantage of the GCC markets is that the Islamic banks are not overleveraged and they have clearly defined limits and a very strong framework. But the market is still subject to rapid change and challenges as we are a global investment community."

Summing up his extempore comments, leading to the panel discussion, Mr. Hanson emphasised that uncontrolled excess has led to the current situation. "The way forward is for the world's investment community to ensure that this does happen again, by firm reaffirmation, better accountability and long term commitment to global economic growth".

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About Global Banking Corporation
Global Banking Corporation B.S.C.(c) [GBCORP] is an Islamic investment bank incorporated in the Kingdom of Bahrain in June 2007. GBCORPGBCORP pursues a dynamic business model, primarily focusing on the core business areas of private equity, real estate and infrastructure development, asset management, advisory services in corporate finance and capital markets and portfolio management services, backed by a management team with a cumulative experience and expertise of more than 30 years in international banking.

GBCORPGBCORP's shareholders and members of the board are prominent personalities, representing the leading business institutions from within the region and bring a wealth of liquidity and sectoral expertise to the organization.

GBCORPGBCORP's business strategy is to build on the region's positive economic outlook, capitalizing on new opportunities to transcend global boundaries and serve as a unique accelerator for investments from within the GCC to markets in the MENA region, Asia, Europe and North America. GBCORPGBCORP has a global real estate portfolio and more than US$2.6 billion excess of assets under management.

For more information,please contact:
Zain Al Shaker
Head of Corporate Communications
Mobile: +973 39 63 78 87
Email: zalshaker@gbcorponline.com

Rawia Al Gosaibi
Senior Associate
Mobile +973 39 46 69 66
Email: ralgosaibi@gbcorponline.com

Mary Khamasmieh
Buchanan Middle East
Media Relations Manager
Telephone: +971 4 369 8581
Email: mary.khamasmieh@buchananme.com

© Press Release 2008