Gulf Finance House declares 95% dividend for 2007

Making an official statement after the Bank's Ordinary and Extraordinary Annual General Meetings (AGM), Mr. Esam Janahi, Chairman, GFH, stated:

"2007 has been a year without precedent for GFH. In addition to the Bank posting its strongest financial results, reinforcing its leading position within its core GCC market, it has achieved the status of a truly international blue chip Islamic investment bank. Due to its clear strategy focusing on innovative economic infrastructure projects in highly attractive emerging markets, especially in the Middle East, North Africa and Asia, and its diligent executive management team, GFH's profits have exceeded plans, and the record dividend pay out for 2007 is the direct outcome of that."

He added that the dividend will be distributed 85% in cash and 10% in shares. The approved dividend payout represents an increase of 27% from last year (2006: 75%).

At the AGM, the Board of Directors updated shareholders on the Bank's financial performance in 2007, strategic progress, operational achievements, organizational development, Corporate Social Responsibility projects, expansion strategy, and growth plans for 2008 and beyond.

Commenting on the Bank's plans for 2008, Mr. Janahi added: " We will continue to build on our core strengths in the area of economic infrastructure development while pioneering exclusive and innovative investment opportunities for our partners and clients. The energy and Islamic financial services sectors will continue to be Gulf Finance House's main area of focus this year."

Key highlights of the agenda included the approval of the financial statements for the year ended 31 December 2007, and a presentation of the Bank's performance by the Chairman. The re-appointment of the Sharia'a board and the bank's auditors, (KPMG Fakhro) were also approved.

The AGM also praised the teamwork of its highly qualified executive management. Stating that this had immensely contributed to the achievement of impressive results adding to shareholder value, it was further recommended that the team continue to be strengthened to attain optimal results in 2008.

With a confident outlook for 2008, the board of directors agreed that GFH will continue to originate infrastructure projects in the GCC and North Africa alongside its existing operations, which include the Mumbai Economic Development Zone, and the forthcoming Tunis Financial Harbor and Energy City Libya. Although the core business will continue to be development of economic infrastructure, the Bank will also develop its other business lines, particularly asset management and private equity through an experienced team of industry professionals and these businesses will make a positive contribution to 2008's profitability and diversified recurring income stream.