Dubai, United Arab Emirates, May 18, 2005 - Emirates National Securitization Corporation (ENSEC) announced today that it had successfully closed the first-ever, AAA rated, asset-backed securitzation to come out of the United Arab Emirates. ENSEC Home Finance Pool I, Ltd., a company organized by ENSEC, issued $350 million of floating rate, secured notes, due 2014. The $350mm bond issue, rated AAA by Standard & Poors and Aaa by Moody's, is known as ENSEC 2005-R1.

Credit support for the ENSEC 2005-R1 issue was provided by, among other things, $350mm of mortgages provided to buyers of villas, town-homes and apartments at The Palm, Jumeirah and cash collateral. The Palm is a signature development created by Nakheel, a Dubai-based property development firm (www.thepalm.ae and www.nakheel.ae). Spanning nearly 5 kilometers in diameter, The Palm, Jumeirah is a man-made island constructed off the coast of Dubai. When completed, it will include in excess of 4,600 residences and 22 hotels, while bringing nearly 55 kilometers of new beachfront to Dubai. The residential properties alone were sold by Nakheel to international and local purchasers for an aggregate of $2.5 billion. The mortgages which support the bond issue were originated by Tamweel, a Dubai-based home finance company (www.tamweel.ae).

ENSEC was created specifically to facilitate the development of a secondary mortgage system in Dubai, similar to Fannie Mae and Freddie Mac in the United States, and as such is the only true securitization conduit in the region. As one of the fastest growing cities in the world, Dubai has made an extraordinary commitment to the diversification and development of its economy, and to establishing its role as a global economic player. The development of a transparent secondary mortgage system is a cornerstone of that strategy. This bond issue is intended to be the first in a continuing series of residential and commercial securitizations collateralized by UAE based mortgages. Its structure, including the provision of cash collateral, is effectively analogous to the 100% US government guarantee that secured early US issues of Fannie Mae.

The transaction was structured by Island Capital Group LLC of New York (www.islecap.com), exclusive financial advisor to and one of the founding shareholders of ENSEC. Barclays Capital served as the lead syndicate manager and sole book-runner, with BearStearns, Nomura and Citigroup serving as placement agents. The bonds were marketed exclusively to US and European institutions primarily to maximize Dubai's exposure to the global capital markets. Demand for the issue was in excess of $4 billion.

H.E. Sultan Ahmed Bin Sulayem, Chairman of ENSEC and Nakheel) said, "This is an extremely proud moment for Dubai. The vision for the creation of a secondary mortgage system in Dubai was encouraged by His Highness, Sheikh Mohammed Bin Rashid Al Maktoum, almost two years ago. To have been given the privilege of offering The Palm as the first participant in such a process has turned out to have been a great benefit to all involved. We are strongly committed to the continuation of Ensec's business plan and to the further development of every aspect of our economy. We look forward to Ensec's growth so that it may service all of the other financial institutions and developers in Dubai and throughout the UAE."

H.E. Dr. Mohammed Khalfanal Khirbash, Dubai's Minister of State for Finance and Industry and Chairman of Dubai Islamic Bank ("DIB") added, "This is an enormous step forward for Dubai as we continue to integrate with the global economy. It is critical in the development and evolution of our economic and financial system. DIB is honored to have played a significant role in the establishment of ENSEC and in providing financing for Nakheel and The Palm. I am confident that this endeavor is precedent setting and establishes yet another way forward for the expansion of our economic system."

Andrew L. Farkas, Chairman & Chief Executive Officer of Island Capital and Vice Chairman of ENSEC said, "The creation of a secondary mortgage system in Dubai demonstrates its commitment to transparency. ENSEC has now introduced Dubai to the global capital markets. The fact that the issue was in excess of 10 times over-subscribed is a testament to the capital markets' preparedness to welcome Dubai's participation, and to the maturation of its own economic system. It is a privilege to have been asked to participate in and to advise on the creation this aspect of Dubai's economy."

-Ends-

About Ensec
Emirates National Securitization Corporation, or Ensec (www.ensec.ae), was created to establish a secondary mortgage finance system for both residential and commercial mortgages in the UAE. Established first in Dubai, Ensec is a joint venture between and among entities controlled by Istithmar which is, in turn, controlled by the Royal Family of Dubai, DIB, Island Emirates Holdings LLC, and Pender Ltd. Advised exclusively by Island Capital Group LLC whose partners include Andrew L. Farkas, former Chairman and CEO of Insignia Financial Group, Inc. (NYSE:IFS) and Andrew M. Cuomo, former United States Secretary for Housing and Urban Development in the Clinton administration, Ensec recently completed the first AAA rated asset-backed securitization in the UAE. Ensec's ultimate objective is to establish itself as the conduit for real estate securitization in the region in a manner similar to Fannie Mae and Freddie Mac in the US.

About The Corporate Office
The Corporate Office is a Dubai based organization that manages and supervises a portfolio of businesses and a series of projects on behalf of the Government of Dubai. Through it's Chairman, His Excellency Sultan Ahmed Bin Sulayem, The Corporate Office's responsibilities and controlled organizations include: Emirates National Securitization Corporation (Ensec), Dubai Ports, Customs and Free Zone Corporation (DPCC), Nakheel (the developer of many of the iconic properties in Dubai including The Palm islands), Istithmar, Dubai Metals and Commodities Center, Tejari and Dubai Maritime City.

About Nakheel
Nakheel is the uniquely focused property development company behind a variety of new landmark developments in Dubai. It aims to redefine the concept of property development whether residential, tourist, commercial or retail. Nakheel's portfolio currently includes The Palm, Jumeirah, The Palm, Jebel Ali, The World, Jumeirah Islands, The Gardens, Ibn Battuta Shopping Mall, Discovery Gardens, Jumeirah Lake Towers, International City, Jumeirah Village, Lost City , Nakheel Golf and the recently launched, The Palm, Deira.


About DIB
Dubai Islamic Bank (DIB) is a public company traded on the Dubai Financial Market. It's chairman is Dr. Mohammed Al Khirbash, Dubai's minister of Finance and Commerce. Established in 1975, the bank enjoys a reputation as a leader and innovator in maintaining the quality, flexibility and accessibility of its products and services. In a very short space of time it has created market leading services and products that are setting benchmarks for the rest of the sector.

The bank's recent financial results confirm the strength of its balance sheet. The bank's assets at the end of December last year had grown 35 per cent in the same period to $8.3 billion, versus $6.2 billion for the prior year.

The bank has been proactive in creating partnerships and alliances at local and international levels. In addition to its role as a founding shareholder in Ensec, DIB has also shown its outstanding capabilities by being appointed to provide specialist financial solutions for huge developmental projects within the UAE, one of which led to the world record US$1 billion Islamic bond issue. The issue was arranged for the Government of Dubai's Department of Civil Aviation to raise funding for the second phase of the expansion of Dubai International Airport. The bank also managed financing of US$350 million for Nakheel. The financing made further capital available to build on Nakheel's blue chip portfolio of developments such as The Palm in Dubai.

About Island Capital Group
Island Capital Group (www.islecap.com) is a U.S. based real estate merchant banking firm specializing in real estate, real estate securities and securitization. It serves as the sole Managing Member of over 6 different private equity funds and initiatives which control assets with aggregate capitalizations well into the billions of dollars. Island Emirates Holdings, a controlled affiliate of Island Capital Group, serves as the exclusive financial advisor to, and is one of the founding shareholders of Emirates National Securitization Corporation (ENSEC), the UAE functional equivalent of Fannie Mae in the United States.

Island was founded in May, 2003 by its Managing Member, Chairman and President Andrew L. Farkas. Its principals include Secretary Andrew M. Cuomo, former United States Secretary of Housing & Urban Development who served in President Clinton's cabinet from 1990 to 1998. In such capacity, Mr. Cuomo was also the chief regulator of Fannie Mae and the United States Federal Housing Administration.

From 1990 to 2003 Mr. Farkas was Chairman and Chief Executive Officer of Insignia Financial Group, Inc. (NYSE: IFS), a global real estate company founded by him in 1990. At its peak, Insignia was the largest owner and operator of multifamily real estate and among the largest owners and operators of commercial space in the United States, controlling or managing approximately 350,000 residential units and over 200 million square feet of commercial space. The portfolio had a gross capitalization in excess of $10 billion. In 1998 the multi-family portfolio was merged with Apartment Investment & Management Company (AIMCO) to create the largest multi-family REIT in the US.

From 1996 through 2003, Insignia built its leading international commercial real estate services and principal investment firm. By 2002, Insignia had become among the top three leading commercial real estate services firms in the world with dominant presence in the United States, the UK and France. In 2003 Insignia's commercial operations were merged with CB Richard Ellis to form the world's largest commercial real estate services company, and it was after this that Mr. Farkas started Island Capital.

About Tamweel
Tamweel LLC was established in March 2004 with an authorized capital of approximately $300 million to provide home finance products and services in the region. The company benefits from the strong legacy of its joint venture parents - Dubai Islamic Bank, and Istithmar, the investment arm of The Corporate Office conglomerate.

Tamweel is the strongest player in the home mortgages origination in the UAE and has originated over $500 million in home mortgages and recorded a positive profit in its first year itself. A strong domain expertise in credit and operations risk management, in conjunction with a professional sales orientation has enabled Tamweel to be recognized and admired in the financial markets in the region as a leader. Tamweel offers a wide range of floating and fixed rate home mortgage products that are based on customer research and are also shariah compliant. Tamweel played a key role in the placement of the mortgages that back the Ensec 2005-R-1 issue and is the master servicer for those mortgages.

About Istithmar
Istithmar is a major investment holding company based in the United Arab Emirates ("UAE"). Istithmar is a private joint stock company owned by members of the ruling family of Dubai. Incorporated in June 2003, Istithmar plans to deploy $2 Billion in investments. Istithmar co-ordinates the appraisal and implementation of numerous entrepreneurial ventures and investment proposals.

Istithmar was originally created to centralize investments made by the Dubai Ports, Customs and Free Zone Corporation and companies under a common management (collectively referred to as the "Group"). This includes Nakheel Co LLC, Dubai Metals and Commodities Centre and Tejari FZ LLC (an electronic marketplace).

Capitalizing on the expertise of the Group, Istithmar aims to nurture projects in various sectors, including financial services, real estate, industrial and consumer sectors. Istithmar acts as a business partner, providing financial leverage to help establish chosen projects. In addition to providing financial capital, Istithmar also offers managerial excellence in business development, presenting a "single window of opportunity" for corporations and private investors.

Istithmar is committed to maximizing the return on investment for its shareholders, and its current focus is on investment opportunities within Dubai, the UAE and internationally.

As of 31st January 2005, Istithmar's portfolio of investments was approximately $515 Million.

© Press Release 2005