RAK Real Estate Ltd - Half-yearly Report for period to 30 June 2011

INTERIM RESULTS TO 30 JUNE 2011
RAK REAL ESTATE LIMITED (the "Company")

We are pleased to announce the interim results for the six months period ending 30 June 2011.
 
The loss for the period was 528,520 Kuwaiti Dinars, attributable to the ongoing development of the Company and the replacement of the Salmiya project with projects in Jordan and United Arab Emirates.
 
The first half of 2011 continued to see difficult conditions within the Middle East & North Africa ("MENA") and the unrest in many of the regions' countries as well as the uncertainty of the global economy, slowed the Company's progress.
 
Progress on the Sharq project is still on hold whilst the Group (as defined herein) continuous to negotiate its banking facilities with the lenders. Shareholders will be updated on this in due course.
 
OUTLOOK
 
We continue to believe that the Company is on the right track and the board is working tirelessly in the difficult economic conditions to maximize shareholder value.
 
The Group has secured two residential projects in Amman and a further plot of land for the development of an international hotel. An agreement has been signed between the land owner and the Group. Again, an announcement will be made on this as the matter progresses.
 
AKNOWLEDGEMENT
 
As ever, we would like to take this opportunity to thank our shareholders, senior management, operational staff and advisors and for their continued support for the Company. We remain dedicated to delivering excellent returns and we are confident about the Company's long term prospects.
 
We will announce the audited results as soon as possible.
 
Rafed Al Khorafi
Chairman
FOR AND ON BEHALF OF THE BOARD

For complete news release, please visit.