1 14 May :20 hrs Investor Presentation www. shafafiyah.com.kw

2 Agenda of Presentation 2006: Key Milestones 2007: Road Map Performance Highlights: Last 5 Years 2007: Destination

3 2006: Key Milestones  Record profits at US$ 101 million over 25% of 2005 US$ 81 million  BIS ratio at 28.3% and balance sheet liquidity at 38%  ROAE at 23.5% and ROAA at 5%. Operating expense to operating income low at 30.4% (2005: 27%)  Assets under management exceed US$ 6.4 billion

4 2006: Key Milestones Cont/…  Improved franchise value –Obtained investment grade rating Baa3 from Moody’s –Capital Intelligence upgraded foreign currency rating to BBB+  Expansion of financial services network –Commercial banking license obtained in Syria. Syria Gulf Bank (SGB) will be operational 2Q UGB owns 24% equity stake and will manage SGB –United Gulf Financial Services, Qatar operational since June 2006 –Management of Bank of Baghdad, Iraq/new business initiatives launched –Tunis International Bank Representative Office in Libya operational –Manafae Investment Company in Kuwait operational –MOU signed to establish joint venture investment company in Tunis –MOU signed to establish an investment company in Abu Dhabi  Improved funding mix –Raised Lower Tier 2 US$ 100 million floating rate notes with maturity of 10 years –Increased short term interbank lines from US$ 800 million (December 2005) to US$ 1.1 billion resulting in enhanced credibility and liquidity

5 Our People

6 Agenda of Presentation 2006: Key Milestones 2007: Road Map Performance Highlights: Last 5 Years 2007: Destination

7 2007: 1Q Key Milestones  Record 1Q07 profit of US$ million including exceptional gains of US$ 88 million on asset sales  US$ 15 million gain on UPAC sale to hit 2Q07  BIS ratio more than 30% and balance sheet liquidity in terms of bank and call deposits at 25%  Unrecognized (hidden) value increased to US$ 312 million  Share price reflects exceptional performance  Market capitalization in excess of US$ 1 billion

8 2007: Road Map Bank of Baghdad new branches planned in north Syria Gulf Bank to start commercial operations/UGB management Continued growth of KAMCO wealth management Investment joint venture company in Tunis Investment joint venture company in UAE Fully underwritten 5-year syndicated facility US$ 125 million Exits & Realizations: Telecommunications assets, UFK, UPAC Algeria Gulf Bank to expand Branch network to 6

9 2007: Road Map Progress ALGERIA TUNISIA LIBYA EGYPT SAUDI ARABIA OMAN SYRIA IRAQ KUWAIT BAHRAIN QATAR JORDAN PALESTINE CYPRUS  Bank of Baghdad – commercial bank, Iraq  KAMCO – asset management company, Kuwait  Jordan Kuwait Bank – commercial bank, Jordan —Jordan Kuwait Bank, Branch in Cyprus —Jordan Kuwait Bank, Branch in Nablus (Palestine)  Algeria Gulf Bank – commercial bank, Algeria  Tunis International Bank – commercial bank, Tunisia  UGB Securities – brokerage company, Bahrain  Syria Gulf Bank – commercial bank, Syria  United Gulf Financial Services Company (UGFS), Qatar  TIB representative office in Libya  Investment joint venture company in UAE (under formation)  Investment joint venture company in Tunis (under formation)  Investment company in Jordan (planned)  Investment company in Syria (planned) UAE

10 Agenda of Presentation 2006: Key Milestones 2007: Road Map Performance Highlights: Last 5 Years 2007: Destination

11 Performance Highlights: Last 5 Years 1Q US$ millions Total Revenue Operating Income Shareholder’s Equity Total Assets2,1922,3501,6871,3881, Net Income % Return on Average Equity Return on Average Assets Dividends US Cents Book Value Per Share Earnings Per Share (Basic)

12 Agenda of Presentation 2006: Key Milestones 2007: Road Map Performance Highlights: Last 5 Years 2007: Destination

: Destination Return on Average Assets Return on Average Equity In US Cents Earnings Per Share Net Income In US$ Million

14 Projected vs Achieved Performance Actual vs Projected Net Income In US$ Million

15 Thank You