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First Quarter 2010


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Annual Report 2009


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Shares in First Bahrain are presently traded on a Secondary Market at Global Investment House.

Our Auditors
First Bahrain’s financials are reviewed quarterly and audited annually by a highly professional external audit team

We also have engaged Protiviti to conduct quarterly internal audits help us improve risk management and to ensure our operations are in line with best practice.

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On behalf of the Board of Directors, it is my privilege and responsibility to present this Annual Report and Consolidated Financial Statements of First Bahrain Real Estate Development Company (First Bahrain) for the year ended 31 December 2009.

As you review the details which follow, you will see that First Bahrain is reporting a loss for the year in the amount of KD 2.41 million, due solely to a reduction in the value of its land bank in Bahrain. This loss is a sober reflection of the current market environment. Despite this loss due to a provision against our highest valued asset, a 236,000 square foot plot of land strategically located across from the City Centre Mall in the Seef District of Bahrain, 2009 has been a year of significant progress in the life of the company.

Accordingly, I am very pleased to report that 2009 saw the completion of the first phase of the company�s inaugural project, a warehousing and logistics development located at the Bahrain Investment Wharf. Likewise, it is with great pleasure that I report the first phase of the project has been completed on-time and on-budget. In this regard, the Board has expressed their pride in the performance of the Executive Management of First Bahrain, who demonstrated their skills and expertise in achieving this significant milestone. The three buildings which make up Phase I offer 130,000 square feet of leasable warehouse space to the market. First Bahrain will begin to see income generation from this project in 2010.

Reflecting on 2009, due primarily to the reduction in the value of our land in Seef, the assets of the Company stood at KD 41.7 million at the end of 2009, down from KD 42.6 million at the end of 2008. The net loss for the year was KD 2.41 million, reversing the majority of the KD 2.59 million gain reported the previous year. This swing in the reported income of the Company over the past two years is directly tied to the volatility in the fair value of the land at Seef. With the write-down loss, the total equity of the Company contracted to KD 40.5 million from KD 42.0 million in 2008.

The Company continued its phased development of the Majaal property at BIW using its own capital in lieu of debt, which remained constant at KD 0.4 million. Accordingly, Current Assets reduced from KD 12.9 million to KD 10.7 million resulting in increases in the value of the Investment Properties Under Development, which grew from KD 8.2 million to KD 10.2 million.

Highlighting the solid liquidity of the Company and its debt free position, First Bahrain finished 2009 with its Current Assets being 8 times greater than its Total Liabilities.

Such metrics give evidence of the Company�s consistently prudent approach to business. It also underlines our differentiated Sharia-compliant investment philosophy, which focuses on developing domestic demand-driven projects that will bring enduring value and sustainable prosperity to the local community, while also contributing to the growth of the economy.

Looking forward, there is still significant uncertainty as major companies in the region continue to flirt with default; however we do see signs of hope emerging and are cautiously optimistic about the prospects for the year ahead. With our conservative and prudent business approach � providing stability in a time of crisis � and our focused investment strategy for the near term, First Bahrain is well positioned to take advantage of new opportunities during the coming year, and to build upon these for the future.

On behalf of the Board of Directors, I would like to extend my best wishes to H.H. Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah, the Amir of the State of Kuwait, and to H.H. Sheikh Nawaf Al-Ahmad Al-Jaber Al-Sabah, the Crown Prince of the State of Kuwait, for their tireless dedication to the economic future and prosperity of the State of Kuwait. My thanks are also due to the State�s government ministries, supervisory bodies, and regulatory authorities, for their continued constructive cooperation and guidance.

I also express my sincere appreciation to our shareholders for their confidence and support; to our clients for their loyalty and trust; to our business partners for their advice and encouragement; and to our management and staff for their professionalism and dedication.

May Almighty God grant us all sustained success and prosperity

Salah Ahmed Al Wuhaib
Chairman