31 December 2007

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

CONSOLIDATED

ATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2007

(All amounts are in Kuwaiti Dinars)

2007

2006

Cash flows from operating activities:

Profit for the year before contribution to Kuwait Foundation for the

Advancement of Sciences, National Labor Support Tax, contribution to

Zakat and Board of Directors' remuneration

33,070,990

24,792,879

Adjustments for:

Gain from sale of properties under development

(16,685,849)

(19,705,047)

Gain from sale of investment properties

(13,839,338)

Change in fair value of investments properties

(120,298)

(3,307,995)

Net investments income

(1,476,479)

(740,289)

Share of results from joint ventures

(3,398,690)

19,973

Gain on partial disposal of subsidiary

(2,334,208)

Depreciation and amortization

222,818

57,815

Interest income

(302,986)

(67,065)

Finance charges

2,205,446

940,353

Loss on disposal of fixed assets

23,277

(2,658,594)

2,013,901

Accounts receivable and other debit balances

(6,946,645)

(10,242,268)

Properties under development

(41,458,577)

17,365,176

Accounts payable and other credit balances

18,001,697

15,229,290

Deferred consideration on acquisition of properties

5,277,580

20,279,003

Cash (used in) generated from operations

(27,784,539)

44,645,102

Paid to Kuwait Foundation for the Advancement of Sciences

(216,197)

(129,766)

Paid to National Labor Support Tax

(610,185)

(280,199)

Board of Directors' remuneration paid

(150,000}

Net cash (used in) generated from operating activities

(28,760,921 }

44,235,137

Cash flows from investing activities:

Purchase of investments at fair value through income statement

(3,898,708)

(1,204,475)

Proceeds from sale of investments at fair value through income statement

6,333,330

612,296

Purchase of investment available for sale

(9,625,829)

(2,260,844)

Proceed from sale of investments available for sale

189,786

Cash dividend received

574,637

225,000

Interest income received

311,300

76,249

Proceed from partial sale of a subsidiary

5,250,246

Proceed from sale of investment properties

24,846,605

Purchase of investment properties

(18,355,455)

(39,517,155)

Paid against investment in joint venture

(3,617,737)

Amount paid for work in progress

(864,755)

Purchase of leasehold right

(1,820,635)

Purchase of fixed assets

(660,378)

(233,008)

Proceed from sale of fixed assets

22,290

Net cash used in investing activities

(1,337,593}

(42,279,647}