Real Estate Properties included in Salam Group Merger

The fair market value of the real estate properties that were included in the Salam Group merger, increased tremendously to approximately QR 625 million at the beginning of the current year, based on a moderate estimates undertaken by independent authorized valuator in Qatar. While the fair market value of the year 2006 has reached QR 505 million, so the market value of the real estate has increased by 29%.

Salam International’s objectives from participating in real estate activities is to improve its asset-base, diversify risk and reduce the company’s revenue exposure to such risk.

Ejada

During 2005, Salam International agreed to invest in Ejada by acquiring 15% of the company and the agreement was finalized in early 2006. Ejada is one of the largest integrated IT services and solution provider in the MENA region. With the joining of Salam International, Ejada will expand its business to include Qatar and other countries. In addition, Salam's joining comes along with Injazat Technology Fund, which also owns 10% of Ejada. Injazat Technology is one of the funds that are operating in compliance with Shari’a principles. In addition, the fund is one of the steering arms of the Islamic Corporation for the Development of the Private Sector, an affiliate of the Islamic Development Bank. Salam International is represented in the Board of Directors.

Gulf Facilities Management

Salam International participated in the establishment of a company for facilities management called "Gulf Facilities Management". Salam International’s partnership in this new company is with Dr. Sasse Facility Management (Gmbh), a German Company specialized in facilities management. Salam International owns 51%. The significance of the new established company comes with the booming of the construction and development sector for the infrastructure of Qatar. With the lack of specialized companies for facilities management in Qatar, higher demand for high quality services is required for the real estate sector, infrastructure, shopping centers and administrative buildings, such as maintenance and security. Salam International manages the new company with the cooperation of the foreign partner.

De Beers Franchise

During 2005, Salam International was granted the exclusive rights and franchise to operate De Beers franchises. De Beers specializes in selling and marketing diamonds and it is one of the leading companies in this field. In addition, De Beers have a high market share in the world for diamond products with high quality. The operation of De Beers will be in a broad geographic area that includes local and duty free markets in Qatar, U.A.E, Saudi Arabia, Kuwait, Bahrain, Oman, Lebanon, Syria, Iraq, Jordan, Yemen, Iran, Egypt, Turkey and Cyprus. Salam International will have the right to own and manage exhibitions, by licensing sub-franchisees to operate De Beers franchise operations in the territories mentioned above. Salam International manages the exclusive franchise operations.

Amwal Invest

Salam International participated in the establishment of Amwal Invest-Jordan, a public shareholding company listed on the Amman Stock Exchange. Amwal Invest is one of the prestigious companies in providing financial and investment services such as mergers and acquisitions, advisory services, capital restructuring and asset management. Since its establishment, the company has realized significant results and enormous success. Salam International is represented in the Board of Directors.

International General Insurance

Salam International participated in the capital increase of International General Insurance Company-Jordan, a major company operating in the field of re-insurance in the energy, maritime, real estate and engineering sectors. The company was granted a BBB rating from Standard & Poors, which is specialized in rating financial institutions and this will improve the company’s capability to develop and expand its operations. In addition, the company will commence its regional operations through its office in the Dubai International Financial Centre. Salam International is represented in the Board of Directors.

The Shuma Ready-mix Company

Salam International invested in establishing a company that produces ready-mix in Qatar. The establishment of this company, alongside with other founders, comes along with the high demand for this product, since Qatar is experiencing a construction and industrial boom. The company is expected to commence operations in 2006.

Palestine Investment Bank

Palestine Investment Bank is considered one of the leading banks located in Palestine that provide financial and banking services, whereby Salam International’s ownership in the bank is 8.46%, and Salam International is represented in the Board of Directors. In 2007, 10% cash dividends were distributed for the owned sharesas, which reflects the remarkable results the bank.

Financial Investments Portfolio:

In order to comply with the corporate investment strategy and to diversify the company’s investments, Salam International invested in listed securities on the Doha Security Market and other regional markets. The objective of the portfolio is to achieve high capital gains and income in the long and short term. The establishment of this portfolio comes along with the positive results the listed companies have achieved. In addition, Salam International invested, indirectly, in portfolios administrated by specialized companies.