Emirates Flagship Fund declares additional 5 per cent

The Fund's Advisory Board has authorized a further stock dividend of 5% as at 18 March 2004. Since January 2003, EFF has paid dividends aggregating to an annualized rate of about 26.14%. Since mid-2002, the Fund has distributed over 30% dividends and therefore, with the proposed dividend, the payout will aggregate to about 35% to date.

Mr. Suresh Kumar, General Manager (AM & M), Emirates Bank International PJSC and Emirates Financial Services PSC, confirmed that periodic dividend distribution remains a key objective of the Fund. He added that such income distribution may take the form of both cash and stock dividends (i.e. issue of further bonus units). The UAE stock market has been performing well, encouraged by corporate earnings in 2003 and excellent shareholder payout as bonus shares and cash dividends as well as a positive outlook for the UAE economy. The low interest rate environment in the UAE and globally is also reinforcing this.

Emirates Flagship Fund was launched in 1997 and remains the largest mutual fund in the UAE with a current net asset value exceeding AED 300 million.

Mr. Fawzi Sarhan, the Chief Operating Officer, added that the Fund remains "cautiously optimistic" about the prospects for the market. While there may be periodic corrections, that represent good opportunities for profit-taking, he felt that there will be a good flow of new subscriptions and investment by UAE and GCC residents. Many smart investors prefer to receive regular dividends, even if they are inclined to reinvest the dividends thus received.