RAK Real Estate Ltd - Interim Results for the period to 30 June 2010

INTERIM RESULTS FOR THE PERIOD ENDED 30 JUNE 2010

STATEMENT BY THE BOARD
 
We are pleased to announce the results for the period ended 30 June 2010.
 
The loss for the period was 2,766,566 Kuwaiti Dinars. The majority of this loss was attributable to the write down of the Group's project in Salmiya, which resulted in a one off charge of KD 2,109,206 and is discussed in more detail below.
 
The first half of 2010 continued to see difficult conditions within the MENA, though with clear signs of improvement starting to show in Kuwait.
 
Progression of the Company's projects remains slower than initially expected. As a result the Salmiyah project, where, where the Company had taken more time to clear the development site of tenants than previously expected was discontinued so as to enable the Group to better us available resources on alternative projects within the region offering better returns.
 
Preliminary work commenced on the first of the projects during the period in Amman Jordan. This project continues to progress pleasingly and we hope to update shareholders with more specific details in this regard in the near future.
 
Progress on the Sharq project during the period continued, though progress has since been put on hold whilst the Group looks to renegotiate its banking facilities with lenders.
 
OUTLOOK
 
We continue to believe that those markets offer excellent potential and will perform well as the global recovery progresses. The Company continues to seek appropriate suitable MENA Real Estate Businesses as the Company believes these offer material opportunities for growth and enhancement in shareholder value and as mentioned above, we hope to update shareholders in the coming months with more details on the Jordanian project and others currently in the pipeline. It remains the Company's intention to become an industry leader in the real estate investment arena in MENA Countries. The Company will continue to seek the optimum utilisation of shareholders' funds and market opportunities thereby maximising shareholder value.
 
ACKNOWLEDGEMENT
 
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 are dedicated to delivering excellent returns and we remain 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

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