Adeem Investment & Rehal Logistics (a subsidiary of Investment Dar), announce the purchase of 45% oF Gulf Craft Inc.

This partnership shall be followed by a capital increase in Gulf Craft for further expansion of its boats & yachts production capacity and facilities.

Gulf Craft is a leading manufacturer of boats and yachts with exports to GCC region, wider MENA region, Australia, United States, Europe, etc. Gulf Craft has established its brand image in the international market and is growing at an average rate of about 20% per annum in last two years. It is the manufacturer of largest yacht Majesty - 130, a 130 footer luxury fly-bridge motor yacht, being manufactured on customized order from Australia. It has manufacturing facilities in UAE and Maldives. It has brands to cater to different customer profile such as:

• Gulf Craft - leisure and fishing craft;
• Majesty Yachts - luxury fly-bridge motor yachts;
• Oryx - luxury sport cruisers;
• Gulf Craft - specialized boats (Patrol boats and scientific research).

The net profit margin has increased from 10.5% in 2003 to 12.1% in 2004 and is expected to be about [20]% for the year ending 2005.

Mustafa Al-Saleh said "it's a strategic acquisition for the Group and would integrate and align with other activities the Group is conducting in Dubai (such as Oqyana, the Australia Island development project within The World Islands), in particular and in UAE, in general.

Oqyana has plans for development of about 2,000 residential units (villas, canal homes, coral water homes, apartments), two luxury hotels & SPA, about 1,500 private berths and a marina hub with over 1,000 boats/yachts capacity and Gulf Craft with its quality boats and yachts stand to supply most of this potential demand to be fueled by the Oqyana development as well as others in the area.

He further explained that there are plans to list Gulf Craft in next 12 to 15 months, subject to necessary government approvals and market conditions, on regional stock exchanges which will provide investors an opportunity to participate in this growing regional company with international presence.

Khaled Al Roumi, General Manager of REHAL said

"REHAL is very proud to be associated with Gulf Craft, a leading manufacturer of boats and yachts. REHAL has mega plans for regional and global expansion in overland transportation, air freight and marine logistics, transportation, warehousing and distribution and Gulf Craft is the first amongst more to come to cater for sea & marine logistics starting with ferry, taxi & marine charter services to Oqyana and The World Islands, for example."

Mohammed Al Shaali, Chairman of Gulf Craft and a leading UAE national and a diplomat (UAE's ambassador to UN) said "he is very proud with this alliance of Gulf Craft with companies affiliated to The Investment Dar and is very excited with further growth opportunities this will bring to Gulf Craft on account of strategic interests of the Group with projects such as Oqyana and REHAL and ability to finance boat purchases through WARED Finance & Lease and MADAR Finance & Investment"

Adnan Al Musallam, Chairman & Managing Director at Investment Dar said that this is a reinforcement of the strategy developed by TID for its transformation into a holding investment company with strong & fundamentally sound operating arms with already a presence in the Industrial/Services as represented by recent partnership in REHAL, Load Air and Gulf Craft.

The Investment Dar will continue to pursue its strategy of further sectored diversification amongst its operating arms as well as geographical diversification of its underlying operating assets creating therefore a very well diversified and balanced holding conglomerate through this institutionalized and corporative structure of specialized companies, each in its field of expertise, but operating in harmony within the Investment Dar Group.

In its pursuit of this diversification it is currently evaluating projects/transactions in the following sectors:

• Technology and telecommunications;
• Medical and healthcare;
• Energy and mining;
• Agriculture and food.

This successful transformation into a conglomerate has been the result of an objective set some years ago to become a mini GE of the GCC, as a model to follow; where General Electric started with the light bulb and then expanding into household appliances; plastics and silicones products; equipment services, power generation, financial services and medical imaging to jet engine and news & information. GE operates through 19 divisions within the Group and more than 100 subsidiaries and has a world-wide presence in over 100 countries.

Adoption of any new model is a challenge and there are past experiences of new models being adopted in Kuwait such as setting-up of specialized banks (such as Industrial Bank, Real Estate Bank), globalization of Mobile Telecommunications Company, launching specialized funds, bonds, new Sukuk law, etc.

The comfort factor for The Investment Dar is that the GE model is tested internationally and very successfully as well. The Investment Dar management is geared towards this challenge and believes that the only thing constant in this World is CHANGE.