EMAAR to float USD 50 million (AED 184 million) Ijara Sukuk arranged by Liquidity Management Centre

The five-year notes, to be issued on the Bahrain Stock Exchange, will have a variable rate of Ijarah return.

Mohamed Ali Alabbar, Chairman of EMAAR Properties said: "The company is ideally placed to move forward with financing of this kind to improve cash-flow and optimise performance. New projects, including Dubai Marina and The Meadows, are coming to market, and we are now pressing ahead with plans for commencement of the tallest skyscraper in the world, Burj Dubai(Dubai Tower)."

Hussain Al-Meeza, Chairman, Liquidity Management Centre, (LMC), said his company will be the arranger of the US$ 50 million (AED 184 million) deal, which will have an average life of 4.9 years, while LMC EMAAR Sukuk Co. (S.P.V.) will act as issuer for EMAAR's first tranche of Ijara Sukuk financing. "This is the first Islamic Sukuk to be arranged for a corporate regionally, which reflects the growing Islamic Sukuk market. We are delighted to have this opportunity to arrange this issue for such a prestigious corporate name like EMAAR, the region's leading real estate development company."

EMAAR has delivered on the prestigious Dubai Marina project, where homeowners now are taking delivery of luxury waterfront homes. Buyers are also moving into homes at The Meadows. During the third quarter of this year, a first wave of apartments has been readily snapped up during EMAAR's pioneering Rent-to-Own scheme for The Greens. Further apartments are scheduled for completion next April.

Mr. Alabbar added: "We have just reported net profits of AED 503 million for the first three quarters of 2003 and feel that this is a good time to test the waters and go ahead with the issue of Ijarah Sukuk in a regional market to increase the company's flexibility going forward. Bahrain has proved to be an ideal solution for several growing companies and we have every confidence that this is the right way to proceed." Mr. Ebrahim H. Ebrahim, Chief Executive Officer, LMC, said: "Islamic financial institutions have been demonstrating strong growths in recent years reflected in the increasing demand for quality and rewarding investment opportunities. EMAAR new Ijara Sukuk delivers such qualities needed in terms of assets, risk and reward."

Bahrain's Liquidity Management Centre, which was set up to create new short and medium terms investment opportunities and promote an active secondary market for these instruments- indicated that various institutions have expressed strong interest in underwriting large tranches of the issue.

Formed in 1997, the EMAAR Group includes fully-owned subsidiaries Dubai Bank; Amlak Finance, a pioneer of mortgage provision in the emirate; Sahm Technologies, a communications company and Emrill, a joint venture with UK-based Carillion Plc, which provides innovative property and facilities management services.