1

Dubai Financial Market

2

Table of Contents

• Introduction

• DFM: Market Highlights

• DFM: Company Highlights

3

Recent oil boom has helped GCC economies achieve compelling GDP growth rates, creating a pool of liquidity in excess of USD 3 T

GCC Nominal GDP(USD Billion)

405

490

608

718

797

0

100

200

300

400

500

600

700

800

900

2003 2004 2005 2006 2007

• Strong growth potential supported by high oil prices

• Large regional GDP size with relatively high per capita income

• Access to a pool of liquidity of US$ 3 trillion

• High financing requirements to support investment needs

• The region is under-going structural transformation

Regional Strengths

CAGR 16.6%

4

Differently from other GCC countries, Dubai has a well-diversified economy that experienced 21% annual growth from 2001 to 2006

Dubai Nominal GDP(USD Billion)

18

46

0

5

10

15

20

25

30

35

40

45

50

2001 2006

CAGR 20.6%

Trade, 21%

Manufacturing, 15%

Construction, 13%

Transportation, 13%

Real Estate, 11%

Financial Services, 7%

Government, 5%

Oil & Gas, 5%

Other, 10%

Dubai 2006 GDP Breakdown(%)

Oil&Gas Sector as a % of GDP

5%

21%

41%

41%

43%

61%

0% 20% 40% 60% 80%

Dubai

Bahrain

Oman

SaudiArabia

AbuDhabi

Qatar

5

Financial services is expected to be a major contributor to the Dubai future growth story

Strong

Oil and gas

Manufacturing

Agriculture

Electricity/Water

Communication

Governmentservices

Construction

Trade

Professionalservices

Financial services

Tourism

Transportation and storage

Very weak Average

Dubai’s strength by international standards

Globally fast growing industrieswith strong Dubai position

Globally fastergrowing sectors

Future globalgrowth 2005– 2015

(%pa)

Globally slowergrowing sectors

Average globalGDP growth

Source: Dubai 2015 Plan

DubaisectorialGDP 2005

Sectors qualified to be part of futuregrowth path

$ 3B

6

Dubai aims to become a regional hub of capital market activity and play an active role in regional and international consolidation…

Vision

• Leading emerging markets exchange

• Regional hub of capital market activity

• Active player in regional and international consolidation

• Connector of liquidity pool

Business Strategy

• Prioritize cash equity market development

• Focus on attracting Institutional investors and become member of major global and/or emerging market indices

• Enhance awareness and increase access for regional retail investors and, in long term, pursue regional and local institutional investors

Portfolio Strategy

• Pursue attractive regional harmonization and integration opportunities and line-up based on strategic fit

• Expand footprint in terms of geography and capabilities

Dubai Capital Market Strategy

7

… which has been a trend over the past years moving from mature markets towards emerging economies

Source: Celent Report, The Economist Intelligence Unit

Growth in emerging markets (CAGR 06-08E)Consolidation in mature markets

Egypt 7.0%

Kazakhstan 9.6%

Kuwait 7.3% India 8.6%

Saudi Arabia 4.6%

Turkey 5.8% Pakistan 6.4%

UAE 8.6%

Libya 5.5%

Jordan 5.9% Turkmenistan 8.0%

NASDAQ-OMX

Euronext NYSE Euronext

Madrid SEValencia SEBarcelona SEBilbao SEIceland SECopenhagen SEVilnius SEStockholm SEHelsinki HEXBoston SENASDAQ StrikeBrut Island InstinetBVLPLIFFEBrussels SEAmsterdam SEBourse de ParisNYSEPCXArcRedibookGlobeNetBorsa ItalianaLondon SEDeutsche BörseSWX Group

Bolsas y Mercados Españoles

London Stock Exchange

2000 2001 2002 2003 2004 2005 2006 2007

8

30.7

25.3

18.4

16.4

11.110.1

7.86.7

5.9

3.8

0

5

10

15

20

25

30

35

DeutscheBorse

CME Hong KongSE

NYSE-Euronext

DFM BOVESPA NASDAQ-OMX

LSE SGX TSX

Dubai Financial Market (DFM) is already one of the biggest exchanges in terms of market capitalization

Market Capitalization By Exchange(in USD Billion)(March 31, 2008)

9

Table of Contents

• Introduction

• DFM: Market Highlights

• DFM: Company Highlights

10

DFM Index has outperformed other GCC indices

0

1000

2000

3000

4000

5000

6000

7000

8000

Dec-03 Dec-04 Dec-05 Dec-06 Dec-07

DFM General Index Performance

+152%

+195

%

-44%

+44%

0

1000

2000

3000

4000

5000

6000

7000

8000

Dec-03 Dec-04 Dec-05 Dec-06 Dec-07

GCC Indices Performance Comparison(Base 1000)

MSM

KSEADSM

DSMTSE

BSE

DFM

11

DFM was the best performer in GCC even in terms of total trading volume, due to the substantial growth in 2007…

Trading Volume(2007, Billion Shares)

105

70

58

52

3.4 2.7 0.80

20

40

60

80

100

120

DFM KSE TSM ADSM DSM MSM BSE

11.7

22.6

14.9

53.9

34.1

0

10

20

30

40

50

60

Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008

Trading Value(USD Billion)

8.6 23.2 20.6 52.9 26.3Trading Volume

(B Shares)

189

365

240

870

560

0

200

400

600

800

1000

Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008

Average Daily Trade(USD Million)

138 358 312 896 432Daily Trading

Volume(M Shares)

12

Comments

… which is testament that DFM is a highly liquid exchange

76%

112%

38%

7%

98%

7%3%2%0%

20%

40%

60%

80%

100%

120%

2000 2001 2002 2003 2004 2005 2006 2007

• DFM is a highly liquid exchange as is supported by its high turnover velocity figures

• Turnover velocity ratio was at its highest in 2006 during the market correction

• Turnover velocity in 2007 was impacted by

Reducing the number of trading days per week from 6 to 5 days

Low trading volume earlier in the year

DFM Traded Value and Listings Market Cap(USD billion)

14

11095

103

14

36

112

85

136

1.00.70.30.19.57.95.8

2000 2001 2002 2003 2004 2005 2006 2007

Traded Value Market Cap

* Turnover velocity is defined as the ratio of Annual Traded Value to Market Cap

DFM Turnover Velocity*(%)

13

Real Estate and Financial Services are the key sectors in terms of trading value – Institutions are increasing their trading activities

Real Estate, 37%

F-Services, 24%

Banking, 18%

Transport, 14%

Utilities, 2%

Insurance, 3%

Telecom, 2%Other, 0%

Trading Activity By Sector(%, Q1 2008)

Trading Activities By Category(%)

84.2% 86.1% 85.4%77.6%

71.8%

15.8% 13.9% 14.6%22.4%

28.2%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2004 2005 2006 2007 Q1 2008

Retail Institutions

14

The share of Non-UAE and Non-GCC investors has strongly increased over the past years

Trading Activities By Nationality(%)

88% 89%

78%69% 70%

64%

12% 11%

22%31% 30%

36%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2003 2004 2005 2006 2007 Q1 2008

UAE Non-UAE

Trading Activities By Nationality(%)

4%

9% 9%6% 5%

4%

10%

17%

12% 14%

2%

3%

5%

12%

18%

0%

5%

10%

15%

20%

25%

30%

35%

40%

2004 2005 2006 2007 Q1 2008

GCC Other Arabs Others

36%

30%31%

22%

11%

15

The number of Non-UAE investors has increased to 190k in Q1 2008, representing 30% of the total

36 47 52 53

4071

94 9524

33

40 42

125139

197

382

441 441

0

100

200

300

400

500

600

700

2003 2004 2005 2006 2007 Q1 2008

GCC

Other Arabs

Others

UAE

Non-UAE

30%

630627

533

297

155126

• Number of investors has strongly increased from 126k in 2003 to 627k in 2007 (50% 2003-2007 CAGR)

• The share of Non-UAE investors has reached 190k by Q1 2008, 30% of total investors

– GCC investors represents 50% of Non-UAE ones

Number of Investors By Nationality(‘000)

Comments

16

Foreign ownership is increasing, mainly due to greater involvement of international institutions(1)

Foreign Ownership By Category(%)

75%67%

59%

35% 37%

25%33%

41%

65% 63%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2004 2005 2006 2007 Q1 2008

Retail Institutions

Foreign Ownership Development By Nationality(2)

($ Billion)

0.4

2.51.4 1.6 1.61.2

6.7

3.7

5.1 4.4

0.2

1.5

1.9

8.5

7.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

2004 2005 2006 2007 Q1 2008

Others

Other Arabs

GCC

13.0

15.1

6.9

10.7

1.8

4.8% 10.4% 9.9% 13.1% 12.6%% of TotalMarket Cap

Note (1): As can be observed from the combination of both graphs, the “Other” foreign investors are mostly international institutions

Note (2): The term “GCC” under “Foreign” implies non-UAE GCC investors

17

Total DFM listings stood at 56 at the end of 2007 and the exchange is still facing a large untapped market

Number of Listings on DFM

10

1 1 1

4

9

6

91

29 3

2000 2001 2002 2003 2004 2005 2006 2007

UAE Foreign

Total No of Listings: 56

5

11

15

12

No of Companies in UAE by Ownership and Size(1)

623

80 120

163

145

80

528

Private Government Foreign Public

Potential Size of IPO Pipeline ~ 2,000

1,497

257 218115

< 100 101 - 500 501 -1,000

< 1,001 – 5,000 5,000+ (potential anchor issuers)

No of employees

Note (1): Estimated by number of employees

38

305215

23 1248

16

18

The following list is illustrative of some of the major IPOs in the pipeline

Source: Market interviews, literature search

Potential future issuance Sector Ownership

Airline Semi-governmental

Natural resources Semi-governmental

Properties, financial services, industrial goods Semi-governmental

Construction Private

Consumer, industrial goods, building and construction Private

Real estate Semi-governmental

19

Table of Contents

• Introduction

• DFM: Market Highlights

• DFM: Company Highlights

20

The Dubai Financial Market started its operations in 2000 and has established significant growth over a short period of time

2000-2001 2002-2003 2004 2006

• DFM (Dubai Financial Market) began operations in March 2000

• Ten companies listed on DFM during first year of operations

• DFM licensed by ESCA in October 2000

• First bond listing in July 2001

• In 2003 the number of investors exceeded 100,000

• DFM foreign investment traded value recorded a YOY growth level of above 70%

• DIFC (Dubai International Financial Center) opened in September 2004

• 20% of DFM’s shares were offered for sale to the public through an IPO in November 2006

• DFM listing in March 2007

• Borse Dubai, the holding company for DFM and DIFX, was created on 6 August, 2007, located in DIFC

2005

• DFM listings market cap exceeded USD 100 Billion

• DFM number of employees exceeded 100

• DIFX (Dubai International Financial Exchange) was opened in September 2005

2007

DFM Timeline

Key

Fac

ts a

nd

Fig

ure

s

Start-up Business GrowthEstablish Footprint

21

DFM is regulated by the Securities and Commodities Authority…

UAE Capital Market Structure

Securities & Commodities Authority

Dubai Gold and Commodities Exchange

Dubai Financial Market

Abu Dhabi Securities Exchange

22

… and is 80% owned by Borse Dubai, the Exchange holding company

DFM Shareholder Structure

20%

LSELSE

66.7%

Borse DubaiBorse Dubai

80% 19.99%

NASDAQ-OMXNASDAQ-OMX

NASDAQ-DIFXNASDAQ-DIFX

DFMDFM

33.3%

PublicPublic

20%

• Borse Dubai in turn has 3 shareholders, mainly

ICD (International Corporation of Dubai): 60%

DIFCI (Dubai International Financial Center Investments): 20%

DFG (Dubai Financial Group): 20%

Comments

23

UAE nationals and retail customers are the main shareholders of the 20% public stake in DFM

Borse Dubai, 80% Public,

20%

DFM Ownership(%, Q1 2008)

Institutions 34%

Retail 66%

20% Public Ownership Breakdown by Category(%, Q1 2008)

Arabs 4%

UAE 66%

20% Public Ownership Breakdown by Nationality(%, Q1 2008)

GCC 2%

Others 28%

Non-UAE=34%

24

Specific Segments

DFM is focusing on 4 key pillars to achieve its targets

Focus on Trade and Post-Trade

• Hybrid trading mechanism

• Adherence to G30 guidelines and best practices

• Develop CSD value added products

3Strong Governance

• Best practice SRO capabilities

• Robust risk controls, especially in CSD operations

4Offer

All Products

• Investors– Foreign institutional

– Local retail

Equity

• Issuers/Listings– UAE

– Large and mid-cap

– Government-owned

Other Products

• Diversification of products and services

– Bonds/ Sukuks

– Derivatives

– ETFs

– Data Services

– Technology

1 2

DFM Key Pillars

25

Over the past years DFM has developed strong operational capabilities

Tradingsystem

Clearing,settlement

and depository

Riskmanagement

• Continuous, order-driven, fully automated trading system

• Tight coupling with depository system, enabling validation of sell orders against depository inventory prior to trading

• Transparent, automated and cost-effective information dissemination

• Upgrading to a high performance OMX X-Stream system

• T+2 rolling settlement with multilateral netting

• Same-day turnarounds (back-to-back transactions)

• Corporate actions (cash dividends, stock splits, bonus issues, etc.)

• Undertaking an operational review to ensure compliance with G30 recommendations

• Trades once executed are final and irrevocable

• Trading limits for market participants commensurate with posted collateral

• Immediate suspension of trading for defaulting brokers

• Established business continuity and contingency plans

DFM Operational Capabilities

26

Compelling advantages are offered to international investors

Description

Accessibility• DFM is open to all international investors

Existing international investment

• Significant existing investment presence by regional, international firms on DFM

Taxation

Repatriation of capital

• No capital gains tax

• No restrictions on repatriation of capital

Exchange Rate

• Foreign ownership allowed for most actively traded companiesForeign ownership

• Exchange rate pegged to US Dollar

Regulation• One of the strongest regulatory frameworks in the Middle East and

North Africa; with continued progress

Dubai vision• Dubai government commitment to growing capital markets as part of

strategic growth plans

27

In particular, regulatory developments should further attract international investors

Federal Regulatory Developments

• Companies Law- Reduction of minimum floatation

from 55% to 30% for family business.

• Capital Markets Regulations

- Allowing GCC citizens to be treated as UAE national.

DFM Regulatory Developments

ESCA Regulatory Developments

2007 - 2008 ( completed )

• Companies Law

- New rules being added

2008 (expected)

• Corporate Governance Guidelines- All listed companies should

implement the guidelines by April 2010.

• Capital Adequacy

• Custodians – drafted

• Margin Trading – Brokers training phase

• ETF - drafted

28

Table of Contents

• Introduction

• DFM: Market Highlights

• DFM: Company Highlights

Financials

29

DFM is a highly profitable exchange where total profits constitute around 90% of total revenues

DFM Revenue and Profits(USD millions)

Profit Margin

(%)

Does not include IPO profits of

USD 126 Million

Comments

• High profit margin is reflective of the scalability business of the exchange

• 2006 revenue dip reflects a reduction in commission charges by 30%

• 2003-2004 revenue figures reflect the startup phase of the exchange

• In 2007 IPO revenue of $126 million was realized rendering profits greater than revenues

7.1 5.4 12 16.544.6

10-1.6

40.2

338.6

215.3

262.3

84.9

-50

0

50

100

150

200

250

300

350

400

2003 2004 2005 2006 2007 Q1 2008

Operating Profit

Expenses 307.0

231.8

350.6

45.5

5.4

-30% 88% 97% 93% 85% 89%

94.9

EBITDA Margin

(%)22% 90% 97% 94% 93% 96%

30

Comments

DFM revenues are driven primarily by trading, clearing, and increasingly by investment revenue

Revenue Breakdown(%)

• Trading and clearing constitute around 70%-80% of total revenue

• More revenue coming from investments

46%36% 38%

41%

34%36%

8%

27% 22%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2006 2007 Q1 2008

Trading Fees

Clearing Fees

Investment Revenue

MembershipCSD RevenueOther

Total Revenue (USD M)

232 306 95

31

Comments

DFM share price increased by more than 500% since the IPO, and the company had a dividend payout ratio of 80% in 2007

• DFM’s market cap is $12.7 billion, 2007 P/E is 33x & 2008 is 24x

• Share price increased substantially at the end of 2007 as the stock market recovered from the 2006 correction

• DFM is one of the most liquid stocks on the exchange

• 2006 EPS reflects a reduction in a commission charges

• 2007 dividend payout ratio amounted to 80%(2)

Listing date

1

2

3

4

5

6

7

Mar-07 May-07 Jul-07 Sep-07 Nov-07 Jan-08 Mar-08 May-08

0.044

0.0270.033

0.011

2005 2006 2007 Q1 2008

Note (1): EPS for 2007 excludes the one-off IPO proceedsNote (2): Excludes the one-off IPO proceedsExchange rate: AED 3.67/$

DFM Share Price(AED)

EPS(1)

(USD)

32

DFM Balance Sheet

$ m2006 2007 Q1 2008

Cash & bank balances 79.8 42.2 132.8Islamic investment deposits 242.2 588.0 468.6Total current assets 497.0 779.6 759.2

Intangible assets 0.0 783.4 778.2Goodwill 0.0 784.5 784.4Total non-current assets 143.6 2,006.0 2,050.2

Total assets 640.6 2,785.6 2,809.4

Total current liabilities 49.0 91.8 268.3Total liabilities 49.3 168.7 345.2

Total shareholders equity 591.3 2,616.9 2,464.2

Total liabilities & shareholders equity 640.6 2,785.6 2,809.4

Exchange rate: AED 3.67/$

33

DFM will move to a new fascinating building in Dubai Business Bay

• Dubai Government granted DFM a Land plot in the Business Bay in November 2007

• The land measuring 390,000 square feet was booked at $ 76mn (that time market value)

• The plot oversees the Business Bay’s waterfront from three angles

DFM: Design of the New Building

34

CONTACTS

Dubai Financial MarketDubai - UAE• Phone +971 4 305 5555• Fax +971 4 305 5566 • P.O.Box 9700 Dubai, UAE• Email helpdesk@dfm.ae • Web site: www.dfm.ae• Voice portal +971 4 312 8000

Contact Person : Mrs. Fahima Al Bastakifalbastaki@dfm.aeMrs. Areej Al Saeedaalsaeed@dfm.ae