IFA Hotels and Resorts achieves profits of $108m

Shareholders' equity increased to KD101.4m ($354.6m), an increase of 50% compared to the same period last year. The company's total assets also increased to KD338.26m compared to KD277.88m for 2008. The board of directors also announced to its shareholders share dividends of 10 % bonus shares for this period.

Ibrahim S. Al-Therban, Chairman of IFA HR, stated:

"2009 was no doubt a challenging year for many companies around the world. We are very happy with our profits during these times. We believe there are still many opportunities for us as a company to explore in order to continue growing in the coming years."

"Our diversification and commitment to developing superior and differentiated international projects is the key to our continued success. We have focused on maintaining lucrative businesses in our existing markets and delivering quality products to our customers," added Talal Jassim Al-Bahar, Vice Chairman and CEO of IFA HR.

In the Middle East, YOTEL, a hotel company in which IFA HR is the majority shareholder, announced the introduction of two YOTELs in Abu Dhabi, in collaboration with Abu Dhabi National Hotels. Shortly after, IFA HR initiated a new leasing programme in its Golden Mile, Palm Jumeirah project to residents in Dubai, who started moving into their homes towards the end of the year when IFA HR started handing over the residences to owners. The company opened its first restaurant and leisure facilities in Dubai with Gusto restaurant and the Al Shalal Beach Club located in The Palm Residence on Palm Jumeirah.

During November 2008, IFA HR consolidated its portfolio with joint investment partner Kingdom Hotel Investments (KHI) by taking majority ownership in two projects - Fairmont Palm Jumeirah in Dubai and the Fairmont Zanzibar hotel. In return, IFA HR transferred its minority interests in five hotels in Kenya to KHI.

Continuing in Africa and the Indian Ocean region, IFA HR launched two significant projects in South Africa - the Zimbali Lakes Resort and the Zimbali Office Estate. The $685m Zimbali Lakes Resort development comprises 2.73 million square metres and is designed to feature over 1,000 residences with shopping and retail areas, restaurants, entertainment facilities, offices and hotels; this addition to the greater Zimbali area is set to extend the development lifespan of Zimbali for a further 15 years. The Zimbali Office Estate will be a high end AAA grade office estate, the first of its kind in the area. The company further strengthened its interested in South Africa by acquiring an additional 5.25% in Boschendal Limited, increasing its stake to 37.33%.

As for Asia, the IFA Yacht Ownership Club expanded its operations by adding a home port in Phuket. Raimon Land, the Thai luxury condominium and real estate Development Company in which IFA HR is a shareholder, continued developing its properties in Bangkok, Phuket and Pattaya and recently handed over The Heights Phuket residences to its customers.

The international YOTEL group opened its third hotel at the start of the year in Amsterdam's Schiphol airport, the company's first presence in The Netherlands. Soon after, YOTEL received the "Business Accommodation of the Year" award during the Business Travel World Awards 2009 held in London. IFA HR also received a prestigious award at the 2008 World Travel Awards ceremony held in Dubai for being the "Leading Middle Eastern Overseas Developer". Zimbali Coastal Resort in South Africa was recently awarded a "Top Business Award for Tourism" in Kwazulu Natal for its continuous tourism related development efforts.

Al-Bahar concluded, "The year ahead is critical as we will open and hand over many residences and resorts in Dubai, Lebanon, Thailand and South Africa. We will also be introducing new investment and lifestyle products to the market and will continue working towards maximising our shareholders' returns."