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IIB to launch mid range GCC property development company

MANAMA - 23 April 2007 - International Investment Bank (" IIB "), a globally focused investment bank based in Bahrain, today announced the start of operation of its latest property venture, Sahab Al Khaleej Real Estate Co . The company will develop and market properties to the under-served mid-range residential property market across the GCC region.

Sahab Al Khaleej Real Estate Co . is the new name for the "Housing Development Company", announced earlier by IIB to reflect the aspiration of the company after the joining of key strategic investors such as First Investment and Al Safwa Group both from based in Kuwait and Amjad company based the Kingdom of Saudi Arabia. At its recent AGM on 22 February 2007, the authorized share capital of the company was increased by IIB from BD20 million to BD50 million, in addition to the issued Share Capital of the company being increased from BD250,000 to BD8.5 million to accommodate the new shareholders with the blessing of the relevant authorities in the Kingdom of Bahrain.

Also at the AGM, investors elected to the Board of Directors of Sahab Al Khaleej Real Estate Co . Mr Tareq Al Adsani, Vice President - Direct Investments of First Investment Company, Kuwait, as Chairman and Mr Aabed Al Zeera, CEO of IIB , as Vice Chairman.

Sahab Al Khaleej Real Estate Co . has already started sourcing and evaluating potential opportunities across the Gulf Region and will begin developing properties in the near future. Following comprehensive research undertaken by IIB of the GCC residential property market, it was determined that significant market potential exists in the mid-tier residential market, as the majority of developments in the GCC are currently either marketed as luxury residences or as affordable housing, leaving little choice of good value, high quality properties.

The launch of Sahab Al Khaleej sees IIB adding a new source of investment return potential to its diverse and successful property investment portfolio. The past 12 months has seen IIB create in partnership with the Islamic Corporation for the Development of the Private Sector (ICD) , affiliate of the Islamic Development Bank , the Saudi Economic Development Co (SEDCO) , and the Pension Agency a US$100 million property development company for investment in the Saudi Arabian market, close a heavily oversubscribed offering for a 65% holding in Dubai's West Bay Tower and the acquisition of a 90% stake in a French property portfolio. It has also seen the successful exit from an investment in a London based office building in March for US$409 million, representing a 100% return for investors and a US$ 80 million property development project in Dubai and a partial exit from a property fund in Bahrain.

Commenting on the announcement, Mr. Aabed Al Zeera, Chief Executive Officer of IIB , and Vice Chairman of Sahab Al Khaleej Real Estate Co . said, "We believe there is significant opportunity for Sahab Al Khaleej across the GCC. It was very clear from our research that a large market demand is not being met for mid-range residential properties. With the new level of funding and the expertise we now have and synergy created through the partnership with the key strategic investors such as First Investment , we are confident that Sahab Al Khaleej will grow into a prime force in this key part of the property market. IIB is now able to target the potentially high quality returns of the mid-range residential market on behalf of its investors."

Also explained Mr. Tareq Al Adsani, Chairman of Sahab that " the shareholders have high expectations and trust in the partnership and synergy created by the combined effort of IIB and First Investment . We have full support to the management team of the company and aim to select attractive and innovative development ideas that realize good returns and help Sahab differentiate itself in the market place".

"Our strategy as a bank aims at selecting key partners to offer attractive investment opportunities to our investors and shareholders. We are striving to diversify our reach across various sectors, regions and partners. Insha Allah, soon we will be presenting new opportunities in markets such as Germany, CIS countries and MENA." Concluded Mr. Mohamed Hadi Mejai, Executive Director of IIB 's Direct Investment & Business Development and Board member of Sahab .

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About International Investment Bank
International Investment Bank B.S.C. ( IIB ) was incorporated in Bahrain in October 2003 as an Islamic investment bank, with an authorised capital of US$200 million and a paid up capital of US$43 million. Its shareholders are high net worth individuals, business houses and institutions from the GCC states. The Bank undertakes three core business activities - private equity, real estate and asset management - and aims to offer its clients an internationally diversified range of investments generated through its network of strategic partnerships.

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© Press Release 2007