Wed May 16, 2007

Zabeel diversifies portfolio through leading edge construction company; ZSML

Estimated turnover AED 3 billion within two years

Strategic joint venture with Turkey`s Sembol Construction Company to raise the bar in terms of quality and time to delivery

Zabeel announced today the launch of ZSML, a construction company, in a joint venture with Sembol Construction Company of Turkey. The addition to the multi-diversified groups` portfolio is in keeping with the company`s aggressive expansion plans and comes in response to Dubai`s continued property development spread, as well as a need to improve build quality and delivery timelines.

HE Mohammed Ali Al Hashimi, Executive Chairman of Zabeel, said: "You consistently hear of new ventures and developments starting up across the UAE; our decision to launch a 50/50 joint venture fits perfectly with our diversification and investment plan. Construction is a viable sector, now and for the foreseeable future and this strategic partnership will play a role in Dubai`s evolving dynamism."

Sembol Construction Company, under the chairmanship of Fettah Tamince, was established in 2000, in Antalya, Turkey. The company has been responsible for the construction of some of this decades most celebrated structures, including The Pyramid of Peace in Astana, Kazakhstan designed by award winning British architect, Sir Norman Foster of Foster & Partners; the Rixos Hotel Premium Belek and Aquapark in Antalya, Turkey and the Khan Shatyr Entertainment Centre in Astana, Kazakhstan.

Among other projects, the company has developed five-star hotels in Turkey, Kazakhstan, Russia and Ukraine, with upcoming developments in Croatia and Austria. Its many landmark projects include a university, a museum, shopping complexes, a university campus and a football stadium.

Fettah Tamince continued: "We have a number of Dubai projects in the pipeline, including the construction of the Palm Deira Sales Centre which has been awarded to us by Nakheel, and the building of Zabeel luxury hotel development on the crescent of Palm Jumeirah. ZSML will operate under the same guidelines as Sembol Construction Co. in that we won`t work on a project unless we know that we can deliver on time and within budget."

Al Hashimi confirmed: "Neither Zabeel or ZSML will be restricted from working with other contractors or developers, respectively. While part of the Zabeel portfolio, ZSML is a separate company, with its own directives, as evidenced by the contract from Nakheel and during the next two years we expect turnover to cross the AED 3 billion mark."

The UAE currently has more than AED 350 billion in real estate construction and development projects, with Dubai taking the bulk of developments. Other emirates, including Abu Dhabi and Ras Al Khaimah are fast developing a host of new mixed use, leisure, residential and commercial projects. "Gone are the days of the individual building owner," stated Al Hashimi, "it`s about building infrastructure, and ZSML will bring international expertise, combined with local know-how to a market which demands greater levels of quality and timeliness."

ZSML will be looking to develop other mega projects with reputable developers across the Middle East. Mr. Fettah Tamince continued: "Our Company has genuine global ambitions, and our partnership with Zabeel solidifies our position here. We can now play a role in the continuing construction growth, and contribute iconic developments that reflect the prosperity and prestige of the area."

Despite a perceived slow, construction projects are added to the existing roster at a rate of AED 14.7 billion per week across the Gulf Cooperation Council. At a current value of AED 2.56 trillion, the UAE leads the way, with approximately one third of the projects valued at around AED 814 billion. The value of ZSML`s projects combined is estimated at AED 2 billion, with the projects delivery set for early 2008 for the Deira Palm Sales Centre and end of 2008, for the Zabeel luxury hotel and villa project.

Located at Dubai International Financial Centre, Zabeel is a multi-diversified investment company focused on the areas of commercial real estate development and management, private equity and asset management. The company also has interests in hospitality, finance, media and education. Its development projects include the AED 2.1 billion Tiara Residence on Palm Jumeirah, the AED 1.75 million Tiara United Towers on Sheikh Zayed Road and America Hotels & Resorts in the AED 100 billion Bawadi development.