31 December 2007

AL MAZA YA HOLDING COMPANY K.S.C. (CLOSED) AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2007

(All amounts are in Kuwaiti Dinars)

Establishment and activities of the Group

AI Mazaya Holding Company - K.S.C. (Closed) was incorporated on November 7, 1998 under the

Commercial Companies Law No. 15 of 1960 and amendments there to.

The Parent Company is engaged in investment in local and foreign companies, real estate properties and

consultancy services.

The registered office of the Parent Company is at Salhia complex, Fahed AI Salem Street, P.O. Box 3546,

Safat 13036, Kuwait.

These consolidated financial statements were approved for issue by the Board of Directors on February 18,

2008. The shareholders' general assembly has the power to amend these consolidated financial statements

after issuance.

Significant accounting policies

The accompanying consolidated financial statements have been prepared in accordance with the

International Financial Reporting Standards issued by the International Accounting Standard Board (IASB).

Significant accounting policies are summarized as follows:

a) Basis of preparation

The consolidated financial statements are presented in Kuwaiti Dinars and are prepared under the

historical cost convention, except that investments at fair value through income statement, and

investment properties are stated at their fair value. The accounting policies applied by the Group are

consistent with those used in the previous year unless otherwise stated.

The preparation of consolidated financial statements in conformity with International

Financial

Reporting Standards requires management to make judgments, estimates and assumptions in the

process of applying the Group's accounting policies. Significant accounting judgments, estimates and

assumptions are disclosed in Note 2(c).

Standard and amendments to standard effective in 2007

The Group has adopted IFRS 7 "Financial

Instruments: Disclosure" and the complementary

amendment to lAS 1 "Presentation of Financial Statements" introducing amended and additional

disclosures relating to financial instruments and associated risks and capital disclosures respectively.

Standards and Interpretations issued but not effective

The following IASB Standard and Interpretation have been issued but are not yet effective, and have

not yet been adopted by the Company:

IFRS 8 "Operating Segments"

The application of IFRS 8, which will be effective for the annual periods beginning on or after

January 1, 2009, will result in disclosure of information to evaluate the nature and financial effects of

the business activities in which it engages and the economic environments in which it operates.