14 May 2007 13:20 hrs

1. Investor Presentation 14 May 2007 13:20 hrs www. shafafiyah.com.kw

2. Agenda of Presentation 2006: Key Milestones 2007: Road Map Performance Highlights: Last 5 Years 2007: Destination

3. 2006: Key Milestones • Record profits at US$ 101 million over 25% of 2005 US$ 81 million • BIS ratio at 28.3% and balance sheet liquidity at 38% • ROAE at 23.5% and ROAA at 5%. Operating expense to operating income low at 30.4% (2005: 27%) • Assets under management exceed US$ 6.4 billion

4. 2006: Key Milestones Cont/… • Improved franchise value • Obtained investment grade rating Baa3 from Moody’s • Capital Intelligence upgraded foreign currency rating to BBB+ • Expansion of financial services network • Commercial banking license obtained in Syria. Syria Gulf Bank (SGB) will be operational 2Q 2007. UGB owns 24% equity stake and will manage SGB • United Gulf Financial Services, Qatar operational since June 2006 • Management of Bank of Baghdad, Iraq/new business initiatives launched • Tunis International Bank Representative Office in Libya operational • Manafae Investment Company in Kuwait operational • MOU signed to establish joint venture investment company in Tunis • MOU signed to establish an investment company in Abu Dhabi • Improved funding mix • Raised Lower Tier 2 US$ 100 million floating rate notes with maturity of 10 years • Increased short term interbank lines from US$ 800 million (December 2005) to US$ 1.1 billion resulting in enhanced credibility and liquidity

5. Our People

6. Agenda of Presentation 2006: Key Milestones 2007: Road Map Performance Highlights: Last 5 Years 2007: Destination

7. 2007: 1Q Key Milestones • Record 1Q07 profit of US$ 115.5 million including exceptional gains of US$ 88 million on asset sales • US$ 15 million gain on UPAC sale to hit 2Q07 • BIS ratio more than 30% and balance sheet liquidity in terms of bank and call deposits at 25% • Unrecognized (hidden) value increased to US$ 312 million • Share price reflects exceptional performance • Market capitalization in excess of US$ 1 billion

8. 2007: Road Map Bank of Baghdad new branches planned in north Syria Gulf Bank to start commercial operations/UGB management Algeria Gulf Bank to expand Branch network to 6 Investment joint venture company in Tunis Investment joint venture company in UAE Continued growth of KAMCO wealth management Exits & Realizations: Telecommunications assets, UFK, UPAC Fully underwritten 5-year syndicated facility US$ 125 million

9. 2007: Road Map Progress SYRIA CYPRUS IRAQ TUNISIA PALESTINE JORDAN KUWAIT ALGERIA LIBYA QATAR BAHRAIN EGYPT UAE SAUDI ARABIA OMAN • Bank of Baghdad – commercial bank, Iraq • KAMCO – asset management company, Kuwait • Jordan Kuwait Bank – commercial bank, Jordan • Jordan Kuwait Bank, Branch in Cyprus • Jordan Kuwait Bank, Branch in Nablus (Palestine) • Algeria Gulf Bank – commercial bank, Algeria • Tunis International Bank – commercial bank, Tunisia • UGB Securities – brokerage company, Bahrain • Syria Gulf Bank – commercial bank, Syria • United Gulf Financial Services Company (UGFS), Qatar • TIB representative office in Libya • Investment joint venture company in UAE (under formation) • Investment joint venture company in Tunis (under formation) • Investment company in Jordan (planned) • Investment company in Syria (planned)

10. Agenda of Presentation 2006: Key Milestones 2007: Road Map Performance Highlights: Last 5 Years 2007: Destination

11. Performance Highlights: Last 5 Years

12. Agenda of Presentation 2006: Key Milestones 2007: Road Map Performance Highlights: Last 5 Years 2007: Destination

13. 2007: Destination Net Income Return on Average Assets In US$ Million Earnings Per Share Return on Average Equity In US Cents

14. Projected vs Achieved Performance Actual vs Projected Net Income In US$ Million

15. Thank You www.ugbbah.com