Global launches the first Waterfront Real Estate Company with a capital of KD50m

First Waterfront is being launched with a capital of KD50m. It is a Kuwaiti shareholding company which will conduct its business in conformity to the principles of the Islamic Shari'a. Al Mazaya Holding Co. will manage the operations of First Waterfront. The involvement of Al Mazaya, one of the leading real estate firms in the region, will help in mitigating the development and operational risks.

'First Waterfront is an attractive opportunity to participate in the Madinat Al Arab Development, which is slated to become the new downtown & Central Business District of Dubai', said Mr. Omar M. El-Quqa, Executive Vice President, Global Investment House.

The Company plans to launch its operations with an exciting waterfront four-tower residential project with an enviable location in the Madinat Al Arab area of the Dubai Waterfront Project. The Company's launch project is strategically located, close to both Dubai and Abu Dhabi, and in proximity to a number of important developments such as the Jebel Ali International Airport, Jebel Ali Port, Jebel Ali Free Zone and the Palm project. All the four residential towers will have a wonderful sea view on one side and garden view on the other.

The total capital expenditure for the launch project is estimated at over KD175m. First Waterfront is expected to generate IRR above 25% over 5 year timeframe.

Besides the attractive launch project, the management of the Company is its key strength. Mazaya is led by a dynamic team that has spearheaded the company's stupendous rise in a short timeframe. Mazaya has to its name a number of prestigious projects in Dubai and other markets in the GCC. More importantly, the Mazaya team has perfected the art ensuring optimum exits from properties through a combination of both unit and block sales during various stages of development.

UAE stands out as the leading real estate market in the region with $500bn worth of announced projects expected to be delivered over the next few years. Dubai will be home to the world's largest tower (Burj Dubai), the largest mall (Mall of Arabia), largest manmade islands (The Palm & The World) and one of largest entertainment districts (Dubai Land).

The real estate sector in Dubai, the Company's chosen launch location, is expected to have sustained growth in future, based on robust fundamentals of the UAE emerging as the undisputed trade hub of the region. The rush of new global, regional & local business entities, the resultant population expansion coupled with oil wealth-led liquidity is driving an unprecedented level of real estate activity in Dubai. Demand, for both commercial and residential properties, in Dubai is expected to be continued to supersede supply in the foreseeable future.

For Dubai, population growth in last 10 years at around 7% p.a., has resulted in a fast rise in residential prices. The price rise in 2007 alone was estimated at 17%. Foreign investors are drawn to the UAE, especially Dubai, due to real estate prices being competitive with major developed cities and potential investment returns of 25%, hard to come by in mature economies.

In subsequent years, First Waterfront intends to expand to other emirates and other markets in the Gulf region while diversifying into other real estate segments. The Company, incorporated in July 2006, is estimated to be listed on Kuwait Stock Exchange, after a period of two years upon meeting KSE's listing requirements.

Mr. El-Quqa, concluded by saying that First Waterfront has all the makings of a successful real estate company with an attractive launch project, proven management team and operations in a vibrant and growing market.

The launch has received overwhelming response from investors in Kuwait and the GCC region and the issue is expected to close within four weeks.