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Al Mal MENA Income Fund

Asset Management

January 2009

Al Mal Capital: Background 2

Asset Management Product Range 3

Fund Terms 4

Investment Case 5

MENA’s Growing Economies and Wealth 5

Proforma Portfolio Allocation 6

Fixed Income & Sukuk 7

AL MAL MENA INCOME FUND

Fixed Income & Sukuk 7

Sample Investment 1: Aldar 2011 8

Sample Investment 2: Qatar 2030 9

Equities 10

Appendix: Asset Management Team Profile 11

Al Mal Capital - Asset Management 1

This presentation has been prepared solely for informational purposes and does not constitute an offer or an invitation to sell or to invest in the Al Mal MENA Income Fund or any other securities, to or

from any person. The Fund Manager of the Al Mal MENA Income Fund reserves the right, in the future, to make any offer or invitation to offer pursuant to the relevant Terms as may be amended from

time to time. These materials are confidential and may not be reproduced or provided to others without the express written permission of Al Mal Capital PSC.

Investment in the Al Mal MENA Income Fund may involve a degree of risk. There can be no assurance that the Al Mal MENA Income Fund will be able to achieve its stated investment objectives.

Potential investors should carefully evaluate the risks, which are set forth in greater detail in the Terms, in considering whether to invest in the Al Mal MENA Income Fund. The information contained in

this presentation is not intended to be an investment recommendation and should not be relied upon in making an investment decision. The information is of a general nature and does not take into account

the objectives and circumstances of any individual investor. Investors should seek professional financial, legal, investment and if required taxation advice specific to their investment objectives, financial

situation and particular needs before making an investment decision.

The information made available through this presentation, including any expression of opinion or forecast, has been obtained from or based on sources believed to be generally reliable. No representation is

given with respect to the accuracy, completeness or currency of the opinion, forecast and information included the presentation and they may change without notice. Al Mal Capital PSC and its related

companies will not be liable for any inaccuracies, omissions or errors in the content nor for any loss or damage arising from action taken in reliance on the information.

Al Mal Capital does not guarantee the repayment of capital, the performance of, or any particular rate of return or income from an investment. Investment in any investment portfolio may be subject to

market and other risks, resulting in a loss of the principal invested. Any information on the attached presentation relating to the distribution history or performance history of any investment, should not be

taken as an indication of the future performance of the relevant investment. No guarantee of future returns is implied or given.

AL MAL CAPITAL: BACKGROUND

• Founded by a team of three MENA-based investment bankers, led by Naser Nabulsi,

the founding CEO of DIFC

• Licensed by the Central Bank of the UAE in November 2005, the first investment

company license issued in 17 years

• Over 80 founder shareholders comprised of prominent business families and institutions

from the UAE and the Middle East region

• Three main business lines – Investment Banking, Brokerage, and Asset Management

Al Mal Capital: Background

Asset Management Product Range

Fund Summary of Terms

Investment Case:MENA’s Growing Economies

Proforma Portfolio Allocation

Fixed Income & Sukuk

Al Mal Capital, Asset ManagementAl Mal Capital - Asset Management 2

• Three main business lines – Investment Banking, Brokerage, and Asset Management

• Team of over 70 professionals from international banks and major regional players

• Asset Management increased assets under management (AUM) year-on-year by 15% in 2008,

exceeding AED 1 billion in funds and managed products


Sample 1: Aldar 2011

Sample 2: Qatar 2030

Equities

Appendix: Asset Management Team Profile

ASSET MANAGEMENT PRODUCT RANGE

AL MAL CAPITAL ASSET MANAGEMENT

PUBLIC EQUITY &

DEBT

PRIVATE EQUITY

Private Equity

Fund Program

REAL ESTATEDirect Equity

Placements

Al Fares







• Demonstrated success in fund raising in public and private product offerings

• Clear ability to execute on strategies and deliver return to investors

• Coverage of key asset classes and strategies in MENA


Al Mal UAE Equity Fund

AED 87 million

Al Mal Defined Opportunity Fund I

USD 80 million

Al Mal MENA Equity Fund

USD 5 million

Al Mal Opportunities Fund

AED 13 million

Al Mal Real Estate Fund

AED 151 million

Al Mal Real Estate Fund II

2009

Direct Equity II (Madaares)

AED 55 million

Direct Equity I (Manazel)

AED 20 million

DEPA Limited

AED 30 million

Emaar MGF

USD 15.5 million

Al Fares

Private

Equity Fund

(Sharia

Compliant)

AED 107

million

Al Mal

Capital

Partners

Fund L.P.

USD 37

million




Equities


Al Mal MENA Income Fund

January 2009

FUND SUMMARY OF TERMS

Fund Objective To pursue an income-oriented investment strategy which permits distribution of periodic and consistent payment of dividends to Shareholders, while seeking to preserve and grow the capital of the Fund.

Legal Structure Cayman Registered

Launch Date 6th January 2009

Minimum Subscription USD 100,000






Fixed Income & SukukFund Manager Al Mal Capital PSC

Management Fees 1.50% per annum

Liquidity Weekly

Expected Quarterly Dividend 20 US cents / share

Expected Initial Yield 8% p.a. (based on initial USD 10.00 NAV)

Administrator & Custodian Al Mal Capital PSC

Auditors KPMG

Legal Advisors Al Tamimi & Company / Maples & Calder





Equities


INVESTMENT CASE : MENA’s Growing Economies and Wealth

• Growth in the GCC countries is expected to moderate to 4.7% in 2009 and will remain above growth anticipated

in mature markets.

• MENA governments are determined to carry out their on-going infrastructure development projects.

• Although oil prices dropped from its peak of $147/barrel, Gulf countries are expected to earn a cumulative USD

4.7 trillion by 2020 with an assumption of $50/barrel. Aside from oil, gas is becoming an important constituent of

revenues to countries in the Middle East, especially Qatar and Egypt. MENA countries control 36% of oil reserves

and 23% of oil production, as well as 22% of gas reserves and 9% of gas production.

• The recent correction in the MENA securities markets (equities and fixed income) present interesting value




Investment Case:

MENA’s Growing Economies Proforma Portfolio Allocation



• The recent correction in the MENA securities markets (equities and fixed income) present interesting value opportunities, along with competitive dividend and bond yields.

• GCC demographics are among the youngest and fastest growing globally. GCC population growth during 2007 reached 3% compared to BRIC 0.68%, G7 0.36%, and 1.2% globally.




Equities

Appendix: Asset Management Team Profile Real GDP Growth- Estimates

Country 2007 A 2008 F 2009 F

Saudi Arabia 3.4 4.1 2.3

UAE 6.1 5.8 3.1

Qatar 12.5 13.5 10.2

Kuwait 4.8 4.5 2.4

Bahrain 6.6 5.3 4.7

Oman 6.9 6.9 5.5

GCC Average 6.7 6.6 4.7MENA Average 6.8 7.2 6.4

Source: IMF and Institute of International Finance, December 2008

Country 2007 A 2008 F 2009 F

World 3.4 2.2 0.5Advanced Economies 2.3 1.0 -0.6US 2.0 1.3 -0.8Japan 2.0 0.3 -0.3Euro Area 2.6 1.0 -0.5

Developed Average 2.4 1.1 -0.3

INVESTMENT CASE : Proforma Portfolio Allocation*




Investment Case:

MENA’s Growing Economies

Proforma Portfolio AllocationFixed Income & Sukuk

Aa53%

A≤ Baa

Not Rated24%

Rating Quality (Moody's)

Short Term/Money Market 47%Fixed

Income53%

Asset Allocation





Equities


* This proforma allocation is for illustrative purposes only, and may not represent intended or actual holdings in the Fund

A17%

≤ Baa6%

0-2 years55%2-10 years

33%

10+ years12%

Maturity

INVESTMENT CASE : Fixed Income & Sukuk




Investment Case:




A selection of sample regional sukuk and bond offerings (indicative only)

Name Guarantor Country CurrencyRatingS&P

Coupon Yield to

Maturity (*)Maturity Date

Dubai Global Sukuk Inc Dubai Government UAE USD 3.57 9.6 Nov-09

Nakheel Development Dubai World UAE USD 3.17 32.56 Dec-09

Arab Republic Of Egypt Arab Republic Of Egypt Egypt USD BB+ 8.75 Jul-11

Jebel Ali Free Zone Dubai Government UAE USD A+ 5.68 13.50 Oct-11


Fixed Income & SukukSample 1: Aldar 2011


Equities


Jebel Ali Free Zone Dubai Government UAE USD A+ 5.68 13.50 Oct-11

Aldar Funding Ltd Aldar Properties UAE USD 5.77 10.12 Nov-11

EIB Sukuk Ltd Emirates Bank International UAE USD A+ 2.3 9.94 Jun-12

Dana Gas Sukuk Ltd Dana Gas UAE USD 7.5 32.44 Oct-12

Tamweel Funding Ltd Tamweel UAE USD 4.31 19.58 Jan-13

Dewa Funding Ltd Dubai Electricity & Water UAE AED 5.63 Jun-13

Bank Muscat SAOG Bank Muscat Oman OMR BBB+ 6.25 Jun-14

DP World Sukuk Ltd DP World UAE USD A+ 6.25 15.25 Jul-17

Ras Laffan LNG 3 Ras Laffan LNG II Qatar USD A+ 6.33 6.85 Sep-27

State Of Qatar Qatar Government Qatar USD AA- 9.75 6.62 Jun-30

TAQA TAQA UAE USD AA- 7.25 9.5 Sep-18

SABIC Innovative Plastic SABIC Saudi Arabia USD B+ 9.5 10.45 Aug-15

* As of January 4th 2009

INVESTMENT CASE : Sukuk – Aldar 2011

Aldar Sukuk – 5.767%, November 2011 maturity (Mudarabah)

Company Overview:

• ALDAR Properties PJSC is the leading

property developer in Abu Dhabi, and vital

to the further development and growth of

the emirate.

• The Government of Abu Dhabi and related

companies own a controlling stake in

Issuer Aldar Funding Limited

Rating Not Rated




Investment Case:




Sukuk Description


companies own a controlling stake in

ALDAR Properties PJSC.

• ALDAR Properties is rated A3 by Moody’s

and A- by Standard & Poor’s (as of April 2008)

• This Sukuk is unique in that when the

Exchange Price is close to the current

market price, investors have the advantage

of convertibility into the underlying, and

additional upside should the share price rise.

Yield-to-maturity based on current quote of

approximately 89 is 10%. (as of January 4th 2009)

Currency USD

Issue Date 8 March, 2007

Maturity 10 November, 2011

Coupon 5.767%

Coupon Frequency Quarterly

Amount Issued $2,530,000,000

Exchange Ratio 645.61 shares / $1000

Exchange Price AED 5.69


Sample 1: Aldar 2011Sample 2: Qatar 2030

Equities


INVESTMENT CASE : Sovereign Bond– Qatar 2030




Investment Case:




Qatar Government Bond

Issuer Qatar

Rating AA- (S&P)

Currency USD

Overview:

• Qatar sits on the third largest gas reserves in the world

and is ranked the 25th largest producer of oil.

• Qatar to remain one of the fastest growing economies

in the world, real GDP is expected to grow by 10% in

2009, according to IIF’s recent forecast.

Bond Description




Sample 2: Qatar 2030Equities


Currency USD

Issue Date 29 June 2000

Maturity 15 June 2030

Coupon 9.75

Coupon Frequency Semi-Annually

Amount Issued $1,400,000,000

• Qatar has one of the highest GDP per capita in the

world of approximately USD 62,000, with a small

population of approximately 1 million inhabitants.

• Less reliant on oil revenues as part of the government

intensive efforts to strengthen its gas capability to

become the largest LNG producer in the world by 2010.

• Trade and current account surpluses to remain strong

in 2009 that will secure high government spending on the

country’s infrastructure.

Yield-to-maturity based on current quote of

approximately 135 is 6.62%, or a spread of over 3.5%

above the comparable US Treasury. (as of January 4th 2009)

INVESTMENT CASE : Equities




Investment Case:




A selection of sample high dividend yielding regional offerings

Company Country Industry

Mkt. Cap

($ Mn)

Yield 06

(%)

Yield 07

(%)

Curr Yield^

(%)

P/E

(X)

P/B

(X)

ROE

(%)

SABIC Saudi Arabia Chemicals 42,764 3.8 1.51 6.54 5.6 1.7 32.9

Saudi Electricity Saudi Arabia Utilities 10,279 5.3 4.7 7.5 38.2 0.8 3.2

Doha Bank Qatar Banks 1,943.98 50.3 4.67 7.75 6.08 1.48 26.3

Commercial Qatar Banks 4,643.11 - 2.14 3.83 7.59 1.62 26





Equities


Source Bloomberg

^ Assuming 2007 Dividend on current price

Commercial

Bank of QatarQatar Banks 4,643.11 - 2.14 3.83 7.59 1.62 26

Qatar Shipping Qatar Transport 1,096 7.4 5.3 8.5 6.7 0.8 14.8

Agility Kuwait Logistics 2,479 5.3 5.8 11 5 0.9 19.6

Telecom Egypt Egypt Telecom 4,889 4.9 4.7 6.3 9.6 1 9.7

Taqa UAE Energy 1,726 NA 2.8 9.6 1.9 0.6 15.4

Jordan Telecom Jordan Telecom 2,011 8 6 7.8 12.7 2.9 23.2

Oman Tel Oman Telecom 3,093 5.7 5.8 6.3 8.7 3.4 36

Orascom

Construction Egypt Construction 5,460 1.9 0.8 7.4 15.9 0.39 161.8

ASSET MANAGEMENT TEAM PROFILE

Blair Look Managing DirectorMr. Look was a member of the original Founding Committee of Al Mal Capital PSC, and is Managing

Director - Asset Management. Prior to this, he enjoyed a distinguished career with Merrill Lynch

International, based in Dubai and London over an 11 year career. Mr. Look was responsible for the overall

portfolio risk analysis and allocation of assets in client portfolios, managing in excess of US$400 million in

client accounts. Before that, he worked with HSBC, rapidly moving into the Bank's elite International

Officer Program within 12 months of joining the Bank. He undertook postings in Hong Kong, India and

Dubai with HSBC before joining Merrill Lynch’s Dubai office in 1993.

Mr. Look received his Bachelor of Commerce from Queen's School of Business in Kingston, Ontario,

Canada. He completed Canadian Investment Finance Parts I and II in 1991, along with having obtained






Fixed Income & Sukuk Canada. He completed Canadian Investment Finance Parts I and II in 1991, along with having obtained

several NASD, UK FSA and DIFC regulatory qualifications. He has held several high profile roles in the

UAE community including Chairman of the Canadian Business Council for Dubai & the Northern Emirates.

Tariq Qaqish Fund ManagerMr. Qaqish has an extensive experience of over ten years in local and regional stock markets. Prior to joining

Al Mal Capital at the end of 2007, he spent six years with National Bank of Abu Dhabi (NBAD) where he

also managed two of NBAD’s most successful funds, the UAE Growth Fund and UAE Distribution Fund,

for the past two years. Assets under management for the two funds exceeded AED3 billion. The UAE

Distribution Fund was the best performing fund in the UAE for 2006 and the UAE Growth Fund was the

top local performer in 2007, both outperforming the benchmarks by double digits. Mr. Qaqish is a holder of

a Masters’ Degree in International Banking from the University of Wollongong in Australia.





Equities

Appendix:

Asset Management Team Profile


Jalal Faruki Senior AssociateMr. Faruki joined Al Mal Capital in April 2006. He has held various roles including managing the Proprietary

Investment desk for Al Mal Capital in 2006 as well as the Institutional Sales and Trading Desk in the

brokerage arm of Al Mal Capital in 2007. Prior to joining Al Mal, he worked with ProFunds in the US from

mid-2005, dealing mainly with institutional clients. He also worked as Account Executive at DMG Securities,

based in the Washington, D.C. area, and from 2002 until mid-2005 he built a book of client assets of over

USD 40 million. Mr. Faruki received his Bachelor of Science in Business Information Technology from

Virginia Tech, he has also attained various licenses and certifications including NASD Series 7 and 63.







Parth Kikani Senior AnalystParth Kikani joined Al Mal Capital in 2007. He works as a Senior Analyst in the Asset Management team and

is responsible for financial modeling and investment analysis for MENA public equity activities. Parth

completed his Chartered Accountancy and completed his post graduate Diploma in Investment Banking

from S.P. Jain Centre of Management, Dubai.

Rakan Himadeh AnalystMr. Himadeh joined Al Mal Capital in 2008. He prepares financial models and investment proposals for

consideration. He graduated from McGill University in Montreal, Canada with distinction, attaining his

Bachelors of Commerce in Finance.





Equities

Appendix:



Bree Fraser Administration Officer Ms. Fraser joined Al Mal Capital in 2007 and is responsible for the Middle Office function within the Asset Management team. Prior to joining Al Mal, she spent 4 years as a Senior Consultant with a public practice in Australia where she was responsible for providing accounting, taxation and business advisory services to public companies, private businesses and high net worth individuals. Ms. Fraser completed her Chartered Accountancy at The Institute of Chartered Accountants in Australia and attained her Bachelor of Commerce at The University of Western Australia with majors in Accounting and Corporate Finance and a minor in Business Law.






Fixed Income & SukukBusiness Law.

Ziad Fouladgar Equity TraderMr. Fouladgar joined Al Mal Capital in 2008 as an Equity Trader in the Asset Management division where he is responsible for trade executions across the MENA markets for Al Mal’s Equity Funds and discretionary accounts. Prior to joining Al Mal, he spent 3 years with Amwal International Financial Services where he was responsible for trading on the local and regional stock markets as well as Forex markets. Mr. Fouladgar received his BA from the Lebanese American University in Beirut, graduating with honors.





Equities

Appendix:


Office 302, Downtown Burj Dubai, Emaar Square 4

Sheikh Zayed Road, P.O. Box 119930, Dubai, UAE

Tel: +971 4 360 11 11, Fax: +971 4 360 11 22

www.almalcapital.com

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