MENA Capital Holding

The year 2012 witnessed continued political unrest and turmoil in the Middle East and North Africa region with its economic and humanitarian fallout affecting several countries. Countries of the Gulf Cooperation Council ("GCC"), on the other hand, showed signs of political stability and economic robustness with healthy growth rates during the year. The positive performance of the GCC is attributed to the expansive fiscal policy on a number of investment projects, current expenditure, firm oil prices and increased oil and natural gas exports.

MENA Capital Holding is currently pursuing an incremental approach to investment that allows it to continue to nurture and build its investments through challenging economic climates, including the 2008-09 effect from the global financial crisis and the more recent impact of the events associated with the Arab Spring. During the year under review, the Company has prudently committed funds in a combination of investments that provide liquidity in the short run and that have the potential for promising upside over the longer term.

We continue to refine its investment strategy, streamline its operations and control costs to prepare for further significant investments as the world economy moves slowly but steadily upwards. We also remain attentive to the developments at the local, regional and international levels and are continuously monitoring investment opportunities that suit our strategy and return expectations.

With a strong foundation for our existing and future operations, we can report that we have no major concerns for any of our existing operations, but remain vigilant and alert for potential threats and opportunities. We are also pleased to report that the Company continues to enjoy a strong liquidity position with no debt at the Holding level. The results for the year are in line with the level of investing activities that the Company had during the year which included the sale of stake in La Tour Réseau de Soins and new investments in real estate portfolios in Kuwait and North America.

Since 2009 MENA Capital Holding has consistently maintained a strict, low-risk strategy in the activities in which it engages and the types of exposures it takes on. This strategy of focusing on high quality assets has served the Company well during the last two years and continues to protect the Company even in times of unprecedented crisis in the global financial system. We highly value the role of corporate governance in improving the overall performance especially in the current environment. Corporate governance in MENA Capital Holding is a combination of internal and external practices aimed at reducing risk exposures while protecting and maximizing shareholders' value.

We recognize that the MENA region is not immune from the economic afflictions of the West and has not fully recovered from the impact of the political changes that continue in certain parts of the region. Therefore, we appreciate your continued support for the broader and diverse strategy that we have started implementing for attaining appropriate risk adjusted performance levels. We will continue our efforts at identifying lucrative opportunities to invest in the MENA region and Turkey; meanwhile, we will continue to examine various investment opportunities beyond our original region of focus.

In my capacity as Chairman and on behalf of the honorable members of the Board of Directors, I would like to express my deep appreciation and gratitude to our esteemed Shareholders for their continuous support and the confidence they have bestowed on the Company's Board of Directors. Thanks and appreciation is also due to our strategic partners for their commitment, and dedicated staff for their perseverance and sincere efforts throughout the past year towards achieving the objectives for which the Company was established.