Shamil Bank initiates opportunity for investment in China

With prominent Chinese financial institution CITIC International Assets Management Co Ltd (CITICIAM) to set up and launch a US$150 million closed - end China Realty Fund. The signing ceremony took place in the Chinese capital Beijing on Friday 25th March 2005.

The M.O.U. was signed by Mr. Jamal Tartir, Group Head - Private Banking at Shamil Bank; & Mr. Kelvin Lo, Chief Executive Officer of CITICIAM. Also in attendance were senior representatives from both parties including Mr. Ziyad Arekat, Head of Investments at Solidarity a DMI subsidiary and an affiliate of Shamil Bank; Mr. Qiu Yi Yong, Managing Director of CITIC United Asia Investment Ltd; & Ms. Abby Yu, General Manger - Business Development at CITICIAM.

Mr. Jamal Tartir in announcing the MOU explained: "Shamil Bank is always looking for opportunities to expand investment potential for its customers and has taken this innovative step to create the proposed Shari'a compliant China Realty Fund, scheduled for launch in June 2005. This is truly a pioneering instrument, as it will unlock the huge potential of investing in the flourishing real estate sector in China for our customers in the GCC and for all Middle Eastern investors.

Mr. Tartir added: "We see this as a huge opportunity for investors from the Middle East as the real estate sector in China is poised for continued, unprecedented growth supported by the successful economic reform policy of the People's Republic of China (PRC), as well as the inherent need to urbanize a growing population resulting from and feeding into its remarkable economic growth."

On his part, Mr. Kelvin Lo, expressed his delight in accomplishing this very important milestone on the road of mutual cooperation between CITIC Group and Dar Al Mal Islami (DMI) represented by Shamil Bank. He added, CITIC Group looks upon DMI as a suitable candidate to become a "gate-keeper" for CITIC's financial activities in the Middle East, in the future.

Shamil Bank, established in Bahrain in June 2000 following the merger of Faysal Islamic Bank of Bahrain with I.I.C.G., is 59% owned by DMI. Shamil Bank is regulated by Bahrain Monetary Agency (BMA) operating with two licenses: a Full Commercial Bank and an O.B.U. Shamil's shares are listed and traded on the Bahrain Stock Exchange. Shamil Bank owns substantial equity stakes and investments in various Group subsidiaries including Faysal Bank Ltd (Pakistan) & Faysal Finance S.A. (Switzerland).

Shamil Bank's activities cover a wide range of Shari'a compliant commercial, private & investment banking product and services. In September 2004, Capital Intelligence, a leading rating agency, upgraded the Bank's foreign currency long term rating from BB+ to an investment grade of BBB-, attributing the upgrade to the healthy growth of the Bank's operating income; continued reduction in non-performing assets and last but not least the strong support of DMI the parent company .

CITIC Group, on the other hand, ranks among the top multi-discipline Chinese conglomerates, with total Group assets of RMB 597 billion (USD 73 billion) as of 31/12/2003, while Group Net Profits exceeded RMB 16 billion (USD 200 million) during 2003. In 2004 CITIC Group celebrated the silver jubilee (25 years) of it's establishment.