Dubai, June 14, 2009: Al-Futtaim Capital announced today it is in the final stages of acquiring a seven million square metre plot of land in Bouznika, Morocco, to develop a master-planned community encompassing a mix of residential, retail and leisure facilities.

This will be Al-Futtaim’s third large scale mixed use project in the region following the success of Dubai Festival City and Cairo Festival City.

Once the master plan is finalised, the Dubai-based conglomerate will seek the relevant governmental approvals before officially launching the project next year. The project is located half way between the capital city of Rabat and Casablanca, the country’s business hub, with a 5.5km frontage on the busiest highway of the country that connects the two cities.

This will be the second investment forming part of Al-Futtaim MENA Real Estate Development Fund and will include some of the elements found within the highly acclaimed Festival City concept.

The scheme in Morocco will also incorporate Al-Futtaim’s leading retail brands as an integral part of the development.

Omar A. Al-Futtaim, Chief Executive Officer, Al-Futtaim said: “By expanding into Morocco, we have a great opportunity to grow despite the slowdown in the global economy. There is strength, diversity and depth to the Moroccan economy and we see many good reasons to be confident about our investment. This acquisition gives us a foothold in Morocco that we intend to build on.

“Morocco is on track to achieve a GDP growth rate above 5 percent for 2009, one of the highest in the world, which is a testament to the country’s strong leadership and fundamentals.”

Marwan Shehadeh, Managing Director, Al-Futtaim Capital added: “His Majesty King Mohammed VI of Morocco has stated that it‘s his firm intention to ensure that all public policies are strategically devoted to developing the middle class, so that it can be the foundation of the social structure, the basis of stability and a powerful catalyst for production and creativity. Al-Futtaim’s vision for this project is in line with the government’s focus on meeting the demand of the middle income population of the country.”

According to the ministry of housing, Morocco currently has an undersupply of homes of more than one million and each year over one hundred thousand new families enter the market. Based on King Mohamed VI directives, the Moroccan government has launched several programmes that are focused on providing homes to Morocco’s low-to middle-income housing segment.

The project announced today by Al-Futtaim Capital will cater to this segment of the market.

Morocco's diverse and open economy has served it well during these challenging times. With an unemployment rate at its lowest in 5 years as well as a young, well-educated and growing population, Morocco is one of the most attractive markets in the MENA region. It has the second-largest non-oil GDP in the Arab world, and the second largest GDP per capita in North Africa.

-Ends-

Notes to Editor:
About Al-Futtaim
Established in the 1930s, Al-Futtaim initially operated as a trading company. Rapid development throughout the 1940s and 1950s saw the company establish itself regionally as an integrated commercial, industrial and services organisation, positioning itself as one of the leading businesses in the lower Gulf region. Headquartered in Dubai, United Arab Emirates, Al-Futtaim is structured into seven operational divisions; Automotive, Engineering, Electronics & Technology, Retail, Financial Services, General Services, Real Estate and Joint Ventures. Today, Al-Futtaim operates through more than 65 companies in sectors as diverse as commerce, industry and services, and employs in excess of 20,000 people across the UAE, Bahrain, Kuwait, Qatar, Oman, Egypt, Saudi Arabia, Sri Lanka, Syria, Pakistan, Singapore and Europe. The majority of businesses, built on a portfolio of world leading brands, dominate their sector. The success of Al-Futtaim is attributed to proactively managing change whilst upholding the values of integrity, service and social responsibility.

About Al-Futtaim Capital
Al-Futtaim Capital is the investment and business development arm of the Al-Futtaim group, the leading business conglomerate in the UAE with a primary focus on private equity and real estate investment and asset management services. Al-Futtaim Capital’s strategy is to leverage on the group’s extensive management expertise, capital strength and excellent working relationships with the world’s best brands to diversify further the group’s activities.

About Al-Futtaim MENA Real Estate [Shari’a] Development Fund (the “Fund”)
The Fund is currently the largest real estate fund in the MENA region. The manager of the Fund is Al-Futtaim Investment Management Limited (“AFIM”), which is authorised and regulated by the Dubai Financial Services Authority (“DFSA”). The Fund has been established in order to invest in real estate opportunities in the Middle East & North Africa. AFIM is in the process of exploring various real estate investment opportunities with significant potential including, large-scale urban mixed-use developments comprised of fully integrated retail, office, residential and hotel components. The Fund intends to target direct investments in real estate developments through acquisition structures in which it would maintain control over the strategy, quality, operations and exit of the assets. In selective cases, such developments will be entered into through partnerships or joint ventures with other investors or local players, as well as government bodies.

For more information please contact:
David D'Souza
Director - Public Relations
GMASCO Marketing Communications
An Al-Futtaim group company
Tel: +971 4 228 2101
Fax: +971 4 227 9801
Email: David.DSouza@gmasco.com