Riyadh, August 25, 2008: SHUAA Capital Saudi Arabia cjsc, announced today the successful first closing of its 'SHUAA Saudi Hospitality Fund I', a Shari'a compliant closed-end fund which aims to develop and own seventeen hotel properties, furnished apartments, and resorts across the Kingdom of Saudi Arabia comprising 5,000 rooms.

As at August 25, 2008, commitments from regional, institutional and individual investors totalled SR 900 million (US$ 240 million) for this initial closing and it is anticipated that a further SR 1.1 billion (US$ 293.3 million) will be fully subscribed by the second and final closing.

Mr. Iyad Duwaji, Chairman of SHUAA Partners, said: "The initial closing of the Saudi Hospitality Fund follows the earlier successful initial closing of the parent fund, the SHUAA Hospitality Fund I in July 2008 which raised another $200 million. The final closing of the SHUAA Saudi Hospitality Fund will be held as soon as remaining commitments are finalized, after the summer holidays interruption."

SHUAA Saudi Hospitality Fund I is managed by SHUAA Capital Saudi Arabia. Its goal is to acquire or develop five stars and budget hotels in the Kingdom of Saudi Arabia. In addition, it will own 20% of a new hotel management company to be incorporated in the Kingdom by UAE based Rotana Hotel Management Corporation LLC (Rotana), the leading Pan-Arab hotel management company. This new company will operate and manage the Fund's hotel properties on an exclusive basis.

Mr. Omar Al Jaroudi, Chief Executive Officer of SHUAA Capital Saudi Arabia, said: "We are proud to have launched the first private equity fund domiciled in the Kingdom SHUAA Capital Saudi Arabia. We have structured this unique Fund to allow the investors to benefit from the extraordinary growth potential of the hospitality sector, the real estate sector, and also from a 20% ownership in the Saudi Hotel Management Company." He added: "The Fund represents a unique and rare opportunity for Shari'a Compliant High-Net-Worth and institutional investors to diversify their investment away from traditional sectors into hospitality and hotels - a sector that is otherwise not represented in Islamic oriented portfolios"

"The Fund has already started its activities by putting together a strategic rollout plan and it has partnered to that effect with prominent Saudi players. It has recruited the management team and is currently engaged in advanced discussions for strategic and important land acquisition opportunities in Riyadh, Jeddah, Madinah and Khobar," Mr. Al Jaroudi added.

The Kingdom of Saudi Arabia is experiencing a sustained boom in business and leisure travel and the SHUAA Saudi Hospitality Fund is in an excellent position to benefit from that. Demand for hotel accommodation, throughout the Kingdom, is far outstripping supply. Overnight visitors to and within the Kingdom have jumped over 74% from 6.6 million in 2000 to 11.5 million in 2007, while the number of hotel rooms increased by a limited annualized growth rate of only 1.5% to 50,000 rooms during the same period. Further expected deregulation and a boom in the airline industry are likely to bring the number of visitors further up from current forecasted levels.

Mr. Selim El Zyr, President and Chief Executive Officer of Rotana, ed: "SHUAA Saudi Hospitality Fund I offers a unique opportunity for Shari'a compliant investors to access a dynamic and fast growing sector. There is a shortage in modern branded hotels in the Kingdom especially when compared to the booming tourism industry. Our objective is to develop and manage international quality hotel properties which will cater to the needs of the local and regional market, the international traveler and the niche markets. The Rotana subsidiary in Saudi will have exclusivity on all the Rotana brands in the Kingdom."

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About SHUAA Capital psc (www.shuaacapital.com) SHUAA Capital psc maintains a leadership position in Investment Banking, Asset Management, Brokerage, Private Equity, Finance, Principal Investments and Research. Headquartered in Dubai, in the United Arab Emirates, SHUAA Capital has a regional presence with offices in Abu Dhabi, Riyadh, Doha, Cairo, Beirut and Istanbul.

Embedded in the dynamic economic environment of the Gulf Cooperation Council (GCC), SHUAA Capital provides a broad range of financial services to corporations, governments, institutional clients, and high net worth individuals.

Since 1979, SHUAA Capital has played a prominent role in shaping the financial services landscape of the GCC and will continue to be at the vanguard of regional integration into global financial markets.

About Rotana Rotana currently manages 65 properties throughout the Middle East with an aggressive expansion plans. At Rotana, we have chosen to acknowledge how precious time is to you by making all time spent with us, Treasured Time. This means that we pledg omar 1.1:zy