Amendment to law concerning ownership of real estate in Abu Dhabi enables ALDAR's shares to be owned by non-UAE nationals

On 6 February 2007, HH Sheikh Khalifa Bin Zayed Al Nahyan, Ruler of Abu Dhabi, issued Law No. 2 of 2007 which amended certain provisions of the Law No. 19 of 2005 concerning real estate ownership.

On 8 February 2007, HH Sheikh Mohammed Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Chairman of the Executive Council, issued Resolution No. 7 of 2007 concerning the ownership by Aldar Properties PJSC ("Aldar") of real estate. The resolution specifies that Aldar shall be entitled to own real estate in Abu Dhabi and to register such real estate in its name, irrespective of whether Aldar shares are owned by persons who are neither UAE nationals nor persons deemed to be UAE nationals.

The amending law and resolution state that each shall be published in the Official Gazette of Abu Dhabi and become effective from the date of issue, 6th and 8th February 2007 respectively. In anticipation of a change to Law No. (19) of 2005, the Extra Ordinary General Assembly Meeting of Aldar held on 11 December 2006 authorised Aldar's Board of Directors to issue a resolution (in the event of a change in law) to permit non-UAE nationals to own up to 40% of Aldar's share capital. Consequently, and as authorised by the unanimous vote at the Extra-Ordinary General Assembly Meeting, a meeting of Aldar's Board of Directors is due to be convened to approve the resolution to permit the ownership by non-UAE nationals of no more than 40% of Aldar's shares.

The corresponding amendment to Aldar's articles of association will become effective on
registration and approval bythe UAE Ministry of Economy. Following such registration andapproval, and subject to the Abu Dhabi Securities Market putting into effect the resultingrevised foreign ownership limits, non-UAE nationals will be able to become shareholders inAldar.

Shafqat Ali Malik, Aldar's Chief Financial Officer, said

"We are working to implement the necessary changes to permit ownership of Aldar shares by non-UAE nationals, and welcome this opportunity to diversify our shareholder base."