JEDDAH, 13 September 2006 — After the overwhelming response to initial public offering (IPO), Emaar Economic City (EEC), a consortium of Dubai-based global real estate major Emaar Properties and a number of Saudi investors, is now entering a new phase and taking steps to list the company in the Saudi stock market.

With an authorized share capital of SR8.50 billion, comprising 850 million shares, EEC offered 30 percent of the equity, fully subscribed by the public. Open only for Saudi nationals, the IPO was for 255 million shares at a nominal value of SR10 each. Over 10 million Saudis — about half the country’s population subscribed to the IPO — a record for the Kingdom.

The IPO was oversubscribed by 2.82 times and received 2.8 million applications with the total amount subscribed at SR7.18 billion.

EEC is developing the prestigious King Abdullah Economic City (KAEC), a SR100 billion mixed-use development to spread over 55 million sq m of greenfield land. Net proceeds from the IPO will go to the development of KAEC.

EEC held its constituent general meeting (CGM) at the Jeddah Hilton yesterday and confirmed that the capital of the company has been fully subscribed and affirmed the in-kind contribution for ordinary shares. In addition to approving the bylaws for the company, the shareholders also appointed the first auditors of the company and approved their fees as well as the pre-incorporation costs.

“Today’s Constituent General Meeting is a milestone for Emaar Economic City,” EEC Chairman Mohamed Ali Alabbar, who attended the meeting, said.

“The company has been entrusted with a great responsibility of developing KAEC, a unique project of stupendous dimensions that ushers in a new era of economic prosperity to the Kingdom. KAEC owes its genesis to the vision of Custodian of the Two Holy Mosques King Abdullah. Today, the project has become a reality, thanks to his wise leadership and vision for his Kingdom and his people. The project, when completed, has the potential to generate more than 500,000 jobs for young Saudis.” “With the Saudi Arabian General Investment Authority (SAGIA) as its prime facilitator, KAEC will play a critical role in the housing, education, healthcare, financial and economic sectors of the Kingdom,” Alabbar said. “The construction of KAEC is going full-steam ahead. Custodian of the Two Holy Mosques King Abdullah has personally toured the site and monitored the construction. His vision and constant support is our driving force and we are aware of the great responsibility entrusted with us,” Alabbar said.

“The CGM is the first step in bringing KAEC and EEC closer to the investors by approving pre-incorporation costs and confirming the in-kind contribution of shares,” EEC Chief Executive Officer Nidal Jamjoom told reporter after the CGM. “As the first step we have also approved the by-laws for the company and appointed Ernst & Young as the first auditors,” he added.

“We are getting ready to be listed on the Tadawul but it is upto the Saudi Capital Market Authority to work out the appropriate time for listing and we are hopeful that the response for Emaar Economic City shares will be as positive as its IPO,” Jamjoom said.

“The company will hire new staff to execute a wide range of responsibilities and the focus of the recruitment drive will be to hire qualified Saudi citizens, especially in senior positions, to lead the development of the KAEC. Emaar Economic City will be committed to pursuing a proactive role in assessing the progress of the KAEC project and ensuring that it goes according to budget and on-schedule,” added Alabbar.