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Gulf Finance House Announces Plans to Create a Steel Giant in the MENA Region

Estimated value of USD $5 billion

Production capacity 8 million tones; reaching 12 million tonnes in the future
Manama, Bahrain, Wednesday 23^rd July 2008: Gulf Finance House , the leading Islamic investment bank with a track record for innovation today announces plans to create HadeedMENA, a new steel producing company. Conceived by Gulf Finance House , HadeedMENA aims to plug the shortfall in domestic steel production in Middle East and North Africa. In a deal with an estimated end value of US$5 billion, GFH is partnering with strategic partners Emirates International Investment Company , Khaleej Development Company (KDC) , Q-Invest , and First Energy Bank , and leading technical partners and market advisors MN Dastur and Gulf Organization for Industrial Consulting; all of whom have a strong reputation regionally and internationally. The project will deliver a capacity of 8 million tonnes of steel per annum in the next four years, and target to reach 12 million tonnes in the future, serving 15% of total regional needs and become one of the key steel producers in the MENA region.

It is estimated that the Middle East alone accounts for more than USD$ 2 trillion of investments in the construction and real estate sector as a result of the surplus created through high oil prices. Meanwhile, the MENA region consumes approximately 35.4 million tonnes (2006) of steel end products, although the region produces only around 24 Million Tonnes.

HadeedMENA will operate in a number of locations across Asia and Africa, serving both upstream and downstream requirements in the marketplace. Upstream production will be located in countries rich in iron ore and coal, while downstream activity will focus on countries with exceptionally high demand across the GCC and MENA region.

Gulf Finance House Chairman Esam Janahi commented today, "We intend to differentiate ourselves by taking a 'top to bottom' approach to the value chain. It will focus both on upstream productions for steel billets as well as the downstream manufacturing for steel re-bars and structures. The company is currently in the final negotiation stages for a number of partnerships and acquisitions that we will be able to announce in the near future "

"GCC economies realize that establishing new manufacturing and service capacity will allow them to be far more responsive to their long-term domestic needs. The creation of HadeedMENA is a perfect example of this approach. Instead of being dependent on steel imports, we will now be able to produce this essential product within our own borders." Said Dr. Ahmed Mutawa from GOIC.

"We are pleased to join Gulf Finance House in this partnership as it forms one of the main industrial development initiatives in the region. We believe our plans for this company will give us the competitive advantages required to become a serious regional player', said Ahmed Al Qattan, Vice Chairman and Managing Director of Khaleej Development Company (KDC) .

Commenting on the technical plans of the company, Supriya Das Gupta, the Chairman of MN Dastur said, "The plants will adopt the latest technology and manufacturing techniques by partnering with leaders in steel manufacturing; employing the most up-to-date technology and processes."

"Beyond the immediate economic benefits, this kind of initiative has a wide-ranging impact on employment levels and standards of life. Steel production generates a strong pipeline of follow on jobs in engineering, manufacturing, design and support sectors - all of which provide jobs and improved standards of living" said Professor Abdulatif Al Meer, Managing Director of Q-Invest in Qatar.

-Ends-

About Gulf Finance House
Founded in 1999, Gulf Finance House has grown rapidly to become one of the most respected investment banks in the Middle East region in terms of the quality and innovation of its product offerings. Over an eight-year period Gulf Finance House has successfully launched economic infrastructure development projects and investments with an aggregate end value exceeding US$20 billion and received numerous awards for its innovative approach to Islamic banking and finance. Its shares are actively traded on the London Stock Exchange (GDR), the Kuwait Stock Exchange, the Bahrain Stock Exchange and the Dubai Financial Market. 2007 was the most successful year in the banks' history, closing with a net profit of US$340 million, an increase of 61% compared to the previous year.

Reflecting its international reputation, Gulf Finance House has won numerous local and international awards, such as "Best Investment Bank" for three years in a row in 2005, 2006 and 2007, awarded by The Banker Middle East, "Bank of the Year 2006" awarded by the Arabian Business Magazine and "Best Islamic Real Estate Finance House" awarded by Euromoney.

About Qinvest
The first Islamic investment bank to be established in Qatar, QInvest brings together a dynamic fusion of human capital and financial resources to originate a diverse range of innovative investment products.

Founded on Islamic values, our endeavours combine an entrepreneurial spirit with the strictly ethical banking practices inherent in Sharia'a compliance. A robust and sustainable business model aligns with investment strategies that target economically attractive sectors and regions, to deliver superior performance and value for clients and shareholders.

Key business lines focus on real estate and infrastructure development, private equity and venture capital, asset management and advisory services. With our core investment sectors integral to Qatar's fast-paced economy, QInvest is strategically located to leverage high regional growth alongside key strategic partners while maximizing placement potential within its immediate markets and managing outbound investment into diversified portfolios on a global scale.

About M.N. Dastur
M.N. Dastur & Company Ltd. (DasturCo) is one of the world's largest diverse, experienced, innovative and competitive consulting firms which offers integrated design and engineering expertise from concept to completion for an expanding range of projects in the metallurgical and allied industries, mining, chemical, cement, power, environmental, infrastructure and emerging technologies including software and network development and service.

About EIIC
Emirates International Investment Company (EIIC) is a privately owned holding company with assets broadly structured into five key focus sectors; Investment, industry, property, trading and retailing and oil and gas.

The company originated in 1999 and its activities encompass investing in various growth sectors in the MENA region and emerging markets. EIIC has a strong, established and highly diversified portfolio that is regarded as an optimal from which to facilitate future strategic growth and expansion.

About GOIC
The Gulf Organization for Industrial Consulting (GOIC) was founded in 1976 by the member states of the Gulf Cooperation Council (GCC) - Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.

The organization was conceptualized by the GCC Member States to be a knowledge-hub and industrial investment promotion catalyst, for the purpose of industrial diversification and development within the GCC countries. It targets developing industries throughout the region by means of providing the public and the private industrial and economic sector with distinctive knowledge, through a complete set of specialized research, information, consultancy, training and technical services.

About Khaleej Development Company
Al Khlaeej Development Company , also known as ' Tameer ', is a leading real estate investment, advisory and property development group, operating in accordance with the principles of Islamic Sharia. It's core business activities comprise real estate investment, project manage

ement, property management, and related advisory services. Headquartered in the Kingdom of Bahrain, Al Khaleej Development Company is an established player in the MENA region, with a growing international presence.

Since its inception in June 2002, Al Khaleej Development Company has developed from a US$ 16 million closed shareholding company to a US$66 million publicly-listed company, with assets and projects under management exceeding US$ 3 billion. Following an Initial Public Offering in 2005, it was listed on the Bahrain Stock Exchange, and subsequently crosslisted on the Kuwait Stock Exchange Al Khlaeej Development Company enjoys the distinction of being the first specialised Sharia-compliant real estate company to be incorporated in the Kingdom of Bahrain. It is also the first and only real estate company to be listed on the Bahrain Stock Exchange.

© Press Release 2008