1. Private Equity in Middle East October 2005

2. 2 Istithmar Overview  A major investment holding company based in the UAE  Focuses on Private Equity, Alternative Investments, and Real Estate  Set up in June 2003 with an initial capital pool of USD 2 Billion  Form part of the Group comprising Dubai’s Ports Customs & Free Zone Corporation, Nakheel, DMCC, and Tejari  Key mission: to earn an exceptional return for its investors while maintaining due regard for risk  Investment based on its “I” investment philosophy namely Ideas, Inquiry & Integrity  Investments over USD 850 Million to date Private Equity in Middle East

3. 3 Private Equity in 2005  Private equity continues to be one of the major economic drivers of the world’s economy  Represents approximately 7.5%* of global asset allocations  Continues to play a major role in restructuring of underperforming assets worldwide  Analysis suggests as much as USD 20 billion allocated to funds focusing in the Middle East Region * Source: Private Equity: Catalyst for Economic Growth in the Middle East Region Private Equity in Middle East

4. 4 Investment Focus to Middle East  Private equity picking up pace in Middle East, as Arabs prefer to keep their assets home due to:  Lackluster performance of US and European stock markets  Out performance by home markets  Increased scrutiny by foreign governments post 9/11  Increase in oil prices and liquidity thereon  Region has been a source for PE firms that raises capital in the region and invest in US and Europe  Currently, market is relatively small, with approx. USD 250 M of funds managed by PE firms  Managers view that the market is on the verge of major growth  Shuaa Capital and National Investor to add USD 250 M to the pool  Abraaj to add USD 500 M to the pool  Injazat Fund’s additional fund of approximately USD 100 M  Players like Istithmar making large scale investments  Other players sprouting in the region  Managers view about USD 600 billion of assets likely to be denationalized in the Arab world in the next 10 years resulting in an opportunity for PE players  Incentive for companies to partner with PE investor enhanced by success of local stock market Private Equity in Middle East

5. 5 CountryGDP 2004 USD B GDP Growth % Budget Surplus as a % of GDP Budget Surplus USD B Inflation Rate Saudi Arabia2495.3%3.6%9.000.7% UAE907.0%(0.4%)(0.36)3.2% Qatar208.3%15.0%3.004.0% Oman240.7%1.5%0.360.2% Bahrain105.6%6.6%0.662.2% Kuwait429.9%18.2%7.642.3% Iran1496.3%5.7%8.4914.9% GCC GDP & Surplus  GCC countries have benefited from increase in oil prices which in turn has helped increase in budget surpluses Source: EIU Report. Data for 2004 Private Equity in Middle East

6. 6  Movement of Capital from foreign based firms to locally managed firms  Closer Management  Deploy in local markets and international  Estimated that as much as US$ 20 billion raised in dedicated funds devoted to private equity in next five years  Finding management talent  Fund Managers  Corporate Managers  Globalization of Financial Markets  Standard for managers will have to emulate that of international competitors  Will have a suite of products (Local vs, International; Traditional vs, Alternative; Islamic vs traditional) Future for Regional Managers Private Equity in Middle East

7. 7 Ideas. Inquiry. Integrity Istithmar means Investment.