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Falak Road Show

Following the success of its first year of operation, FALAK Investments Ltd. (FALAK) invited selected GCC investors to participate in its flourishing aircraft leasing venture. FALAK’s road show took place in Dubai on April 22, 2008 at Al Murooj Rotana Hotel, in Kuwait on April 23, 2008 at J.W. Marriott Hotel and in Qatar on April 24, 2008 at Inter-Continental Hotel.

Established in 2007 as a joint venture between United International Bank (UIB) and Muzun Partner Ltd. (a company related to Novus Aviation), FALAK is -co-sponsored by International Leasing and Investment Company (ILIC) and backed by several GCC financial institutions including First Leasing Bank.

Today, FALAK’s portfolio comprises of 11 aircraft with a capital of $130 million. The strength of its portfolio lies in the fact that it is well diversified with various aircraft types leased to different quality airlines across the globe. Return on investment achieved in 2007 was in excess of 12% and dividends of 8.5% were distributed to investors during the first year of operation. FALAK is likely to keep generating quarterly dividend distribution of at least 8.5% per annum over the investment term.

FALAK plans an increase in capital within the next few months to cope with the overwhelming feedback from selected GCC institutional investors to participate in the aircraft leasing industry.  
FALAK also plans to continuously develop its portfolio and expand its aircraft acquisitions and leasing activities, with an extensive search for attractive assets and quality airline lessees. Other high quality transactions are being contemplated to supplement the existing portfolio, benefiting from the current environment of healthy growth of the aviation industry worldwide and particularly in the Middle East. 
Mr. Safwan Kuzbari, CEO for Novus explained that the aviation industry is expected to witness major growth. Falak’s investment is backed by strong assets most of which are in severe shortage in today’s market.  
Air traffic in the Middle East is one of the fastest growing in the world with passenger traffic forecasted to grow by over 6 percent per annum over the next 20 years. 
Mr. Abdalla Janahi, UIB’s acting CEO said, “UIB is one of the major investors along with ILIC the co-sponsor of the Fund who has underwritten $50 million towards this Fund. He explained that UIB’s investment strategy focuses on providing unique opportunities to its customer base. Mr. Janahi continued, “FALAK Fund’s uniqueness stems from the fact that the assets of the Fund already exist and are producing income and that the cash flow is stable and reliable.”

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