In the name of Allah the Compassionate the All Merciful

Praise be to Allah, peace and prayers be upon the Prophet Muhammad, his family and companions.

Dear Shareholders,

I am pleased on behalf of my colleagues members of the board of directors, the executive body and all employees of the company to welcome you this year after the company completed its third year realizing unprecedented results and achievements to draw the features of its new futures "the features of Al Madina 2010".

In face, the economic indicators of the previous year have showed noticeable improvement in general in the sense that the growth of world economy was very strong in 2007. In this respect, it is reported that 100 countries have realized growth in per capita income at a percentage of 3% and above. In addition, the developing and emerging countries have increased their share in international trade from 35% in 2000 to more than 40% in 2007. Moreover, the average growth in developing countries amounted to more than 7%, and the economic forces in Africa have realized noticeable economic growth in 2007 that amounts approximately to 6%.

Chief among the most important developments of international economy is the rise of oil prices since the oil prices transactions began the year around fifty US dollar per barrel and it ended the year near around one hundred US dollar per barrel. In such manner, the oil prices rise contributes massively to providing huge financial surpluses for power exporting countries especially the Arabian Gulf countries. It is expected that economies of the Gulf Cooperation Council countries realize a big leap in their growth during the year 2008 since the growth percentage is expected to amount to 8% in the year 2008 compared to 6.2% in the year 2007.

Moreover, during the last year, the importance of the service sector compared to other traditional economic sectors has grown prominent to the extent that such importance was one of the most important features of international economy during the previous year, and the financial services sector was in the focus of light during most of the year.

In light of the economic developments during the last year, the future strategic features of Al Madina Finance and Investment was drawn for the coming three years under the motto "Features of Al Madina 2010". The strategy has three main sectors to focus on which is the real estate sector which has four real estate companies which had distinguished projects during the last year, the asset management sector which is intended by the company to be transferred to a subsidiary investment company in order to enhance the work of such sector and enhance its existence in the markets of the region, and the third sector is the services sector which includes a number of subsidiaries and companies under constructions, and such companies which will pay great attention to the field of energy, medical services and communication fields.

Regarding the most important events and achievements realized by Al Madina Finance and Investment during 2007, the company has expanded its investment activities through acquiring companies that are listed in Kuwait Stock Exchange and restructuring them. Al Madina Finance and Investment Company has acquired 83.67% of Kazma Holding Company and changed its name to Ektitab Holding and increased its capital to KD 47 million, and Al Madina Finance and Investment has maintained 30% of the shares of Ektitab Holding Company and has restructured its activities so that it becomes the first Islamic company listed in the market and specialized in the investment in the public and private subscriptions sector.

Moreover, the company has in the last quarter of the previous year acquired 76% of Al Nibras Holding Company which is a company specialized in the educational sector and owns a number of schools inside Kuwait which enhances the ability of Al Madina in covering several fields that comprise different business sectors.

In continuation to the expansion programs of the Company and its policy in diversifying its investments on international level, Al Madina Finance and Investment has entered the communications sector by means of establishing Hits Africa in Cayman Islands with a capital of US dollar 80 million and its premises is in Kingdom of Bahrain. Al Madina owns 50% of Hits Africa which exists now in four African markets.

In the last year, the company was distinguished with the performance of its investment funds since the India fund has realized a revenue of 53.4% during the year 2007, and it is the first Islamic fund in the world to operate in India according to the provisions of Islamic Sharia. In addition, Al Madina fund has realized an annual revenue of 34.1% which proves the company's ability to manage investment assets efficiently and distinctively.

The Company has realized big achievement during the year 2007 and realized record revenues and net profit of KD 20,963,734 with an increase percentage of 179% compared to profits of the last year which amounted to KD 7,521,265. In light of such, the share price has risen from 43.54 fils in 2006 to 120.33 fils in 2007 with an increase of 176%. In addition, the year 2007 witnessed an increase with the total assets of the company at a percentage of 224% and amounted to KD 207,606,828 and the book value of the share has grown at a percentage of 44% since it amounted in the end of 2007 to 239 fils compared to 166 fils in the previous year.

In conclusion of this speech, I express thanks and gratitude to the members of the Board of directors, members of the Sharia committee and the executive management for their support and efforts. In addition, I express thanks to all employees of Al Madina for their efforts and work which has the favor, after Allah the Almighty, in realizing the said achievements.

Peace be upon You

Chairman
Khalid Yaqub Al Motawa