Gulf Finance House pioneers Energy City Libya in $3.8bn deal with the Economic and Social Development Fund of Libya

The MOU was signed by Mr. Hamad Al Hadhari, President of the Libyan Social Development Fund, and Mr Esam Janahi, Chairman of Gulf Finance House at a high profile ceremony in the presence of Dr. Chokri Ghanim, President of the Libyan National Oil Corporation and the CEO of Al Qadafi Development Co. together with senior business representatives from the finance and energy sectors.

The signing of the MOU follows Mr. Janahi's recent meeting with the Prime Minister of Libya, Dr. Ali al-Mahmudi al-Baghdadi during which plans for Energy City Libya were discussed.

Energy City Libya will be developed on a strategically located 528 acre site in the city of Sabratha, adjacent to the Mediterranean Sea and 70 kilometers west of Libyan capital Tripoli. Energy City Libya will include Commercial, Residential, Hospitality and Retail clusters in order to support the Energy component. The end value of the development is estimated to be approximately $3.8bn once completed.

The Energy City concept will reinforce and consolidate Libya's energy industry by providing complete business infrastructure to both local as well as foreign oil and gas producers, downstream refiners and producers and businesses involved in shipping, energy trading and support services.

Mr. Hamad Al Hadhari, President of the Libyan Social Development Fund said "We are fully supportive of GFH's vision for Energy City Libya. We are confident that this project will add great value to Libya's economic infrastructure and will also help to set new standards in the quality of our social infrastructure. GFH's initiative will also help to encourage more foreign direct investment, particularly from the Gulf. We look forward to a long and prosperous relationship with GFH on this project and other projects in the future."

Commenting on the occasion, Dr. Chokri Ghanim, President of the Libyan National Oil Corporation said "We are very impressed with the concept of Energy City Libya as presented to us by Mr. Esam Janahi. We firmly believe Energy City Libya will have a positive impact on the GDP and creating job opportunities. Furthermore, Energy City Libya will not only benefit Libya but the region as a whole. The Libyan National Oil Corporation is committed in providing its full support to this project.

Commenting on the reasons behind choosing Libya as the fourth in a series of global destinations chosen for the Energy City network, Mr Esam Janahi said: "The Libyan investment climate is currently undergoing major changes with the oil and gas sector receiving unprecedented interest from global players. With proven crude oil reserves, of 41 bn barrels, Libya has the largest reserves in Africa (42%) and 3% of the world's reserves. Furthermore, the Libyan National Oil Corporation aims to boost oil production from today's 1.8 million barrels per day to 2 million by 2008 and 3 million by 2013, which is estimated to require total investment of $30bn.

We are confident that at this most important time, a unique concept like Energy City will further add momentum to the progress and status of Libya's burgeoning energy sector. With the support of the Libyan Government and their pro-active policies, we will be successful in providing an effective and vital platform for the future prosperity of Libya."

The Energy City concept is promoted by GFH along with fellow founders Gulf Energy, the international energy consulting firm. Energy City Libya is part of the global network of Energy Cities GFH is creating and developing. Other Energy Cities are being developed or planned in Qatar, India and China.
About Gulf Finance House

Founded in 1999, Gulf Finance House has grown rapidly to become one of the most respected investment banks in the Middle East region in terms of the quality and innovation of its product offerings. Over an eight-year period Gulf Finance House has successfully launched economic infrastructure development projects and investments with an aggregate end value exceeding $12bn and received numerous awards for its innovative approach to Islamic banking and finance. Its shares are actively traded on the London Stock Exchange (GDR), the Kuwait Stock Exchange, the Bahrain Stock Exchange and the Dubai Financial Market. 2007 was the most successful year in the banks' history, closing with a net profit of $340m, an increase of 61% compared to the previous year.

Reflecting its international reputation, Gulf Finance House has won numerous local and international awards, such as "Best Investment Bank" for three years in a row in 2005, 2006 and 2007, awarded by The Banker Middle East, "Bank of the Year 2006" awarded by the Arabian Business Magazine and "Best Islamic Real Estate Finance House" awarded by Euromoney.