al khaliji

• Qatar Central Bank gives al khaliji approval to open Islamic branch
• Initial focus is wholesale Islamic business with plans to cover other segments at a later stage.

al khaliji has completed a new Islamic banking transaction, acting as Joint Lead Manager in a Sukuk issue for the Almana Group, one of the largest business houses in Qatar. The AED 600 million issue, priced at a spread of 250 basis points over EIBOR, is one of the first non-USD corporate sukuks issued from Qatar and is listed on the DIFX. The deal marks the first step in al khaliji's plans to become a leading capital markets player in the GCC.

al khaliji also announced it has obtained approval from the Qatar Central Bank to open Islamic Banking branches, adding to the range of products and services it is launching this year.

The initial focus of al khaliji's Islamic banking activities will be the wholesale sector, with other segments to follow in due course. The first Islamic branch will be located in al khaliji's head office in West Bay and forms part of the Treasury &Debt Capital Markets activities under the leadership of Biswajit Dasgupta, Senior Executive, Treasury &Debt Capital Markets.

David Proctor, Chief Executive Officer of al khaliji, commented: "2008 is proving to be a very exciting year for al khaliji. We're delighted to be able to launch another new service for our customers and complete such a high profile transaction."

"Note to shareholders: the information published in the press regarding the callable period (not before 2010) is old and was previously disclosed."