Honorable Shareholders,

Peace and God’s Mercy and Blessings be upon you!

On behalf of my colleagues, members of the Board and myself, it is my pleasure to discuss with you the annual report of TAMDEEN SHOPPING CENTERS Company for the fiscal year ended on 31st December 2008.

Despite the world economic crisis that swept the entire globe during the third quarter of year 2008, the Company persisted in achieving its strategic goals while adopting a conservative approach compatible with the requirements of the overall circumstances and the international economic occurrences.

During the year 2008, TAMDEEN SHOPPING CENTERS completed increasing the capital from KD 50,000,000 (Fifty Million Kuwaiti Dinars) to KD 100,000,000 (One Hundred Million Kuwaiti Dinars) with the aim to support the financing of growth and expansion plans as well as strengthening the Company’s financial position. Moreover, the Company is rapidly progressing with completion of the 360 Mall with more than 85% of the building, construction and installation accomplished. Constructed on the most advanced, world-renown designs with investments exceeding KD 77,000,000 (Seventy Seven Million Kuwaiti Dinars), the 360 Mall concept is an outstanding transformation in the world of shopping center designs. Occupancy rates in the complex have already surpassed 90% of the total leasing space in anticipation of its upcoming opening. The Company’s management has now reached the final stage of arrangements to inaugurate this prestigious project during the second quarter 2009.

The Company has also moved forward in commencing the construction and development works at a group of medium-sized commercial projects in Salmiya and Sulaibkhat areas, and it is expected to operate the first project in Salmiya, prior to the end of 2009. In addition, necessary permits have been obtained from the Municipal Council to reorganize another land with an area of 102,336 square meters situated in Messilah named “Almysam”. Currently, the Company is embarking on a study of the ideal methods of developing this project.

Honorable Shareholders,

TAMDEEN SHOPPING CENTERS has also increased the size of its investments in its affiliate, TAMDEEN ENTERTAINMENT COMPANY, which specialized in providing distinct entertainment services within shopping centers during the year 2008. The total investment has reached KD 2,125,000 (Two Million One Hundred Twenty Five Thousand Kuwaiti Dinars), and the Company expects to realize excellent profits from this investment in line with its continued policy of lending support to its main business of real estate development.

In addition, the Company also participated in the establishment of TAMDEEN MASAKEN COMPANY with 20% of the capital, which amounts to KD 1,000,000 (One Million Kuwaiti Dinars). TAMDEEN MASAKEN specializes in non-commercial real estate investment.

Moreover, the Company participated in the establishment of the TAMDEEN BAHRAINI REAL ESTATE Company in the Kingdom of Bahrain with a stake amounting to 59% of the capital, BD 40,000,000 (Forty Million Bahraini Dinars). This company is involved in designing and developing a commercial project to be built on a 178,400 square meters company-owned plot at Alareen district in the south of the Kingdom of Bahrain.

In addition to the previously mentioned projects, TAMDEEN SHOPPING CENTERS continues to reinforce its relationship with its associate companies by lending them technical and administrative support. In favor of this principle, the Company continues to manage the commercial developments of its associate companies, the Fahaheel Water Front – Al Kout and Al Manshar Towers & Complex as well as rendering management services to these complexes in a manner consistent with the requirements of the current period.

Honorable Shareholders,

The Company has embarked upon initializing the implementation of an administrative and operational development plan in order to enhance the efficiency of its services offered in the domain of managing the commercial complexes, whereby one of the world-class experienced houses was appointed to conclude devising the systems of work and operations as well as the organizational structures within the Company. In addition to reinforcing the implementation of modern administrative concepts and inputs, such as “corporate governance”, the plan will assist in qualifying the Company in the future to embark on a larger regional perspective in this domain.

Honorable Shareholders,

I would like to seize this opportunity to extend, on behalf of my colleagues, the board members and myself, the highest thanks and profound gratitude to His Highness, the Amir, Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah, may God protect him; His Highness, the Crown Prince, Sheikh Nawaf Jaber Al-Ahmed Al-Jaber Al-Sabah, may God protect him, and His Highness, the Prime Minister, Sheikh Naser Al-Mohammed Al-Ahmad Al-Sabah, may God protect him, for their continued support to the private sector in the country.

In conclusion, I would like to express my sincere appreciation and thanks to the board members, executive management team, and all staff for the sincere efforts they put forth in assisting the Company realize a successful and sustained achievement of all its objectives in the Year 2008.

God is the guardian of success,

Peace and God’s mercy and blessings be upon you,

Marzouq Jassim Al-Marzouq
Chairman