AlNukhba Quarterly Report

The Fund is an open-ended collective investment scheme, registered with and regulated by the Bahrain Monetary Agency.

The investment objective of the Fund is to achieve long-term capital appreciation, whilst adhering to Shari’ah. The Fund will seek to achieve this objective by actively investing predominantly in listed and unlisted equities and equity related securities in the GCC countries as per the Shari’ah guidelines. Companies in other countries may be added to the investment universe if the Fund company perceives that such markets offer attractive investment opportunities.

FUND PERFORMANCE DATA:

NAV per Share : US$101.70

1 Month: 2.38%

3 Month: -

1 Year -

Since Inception(24/04/2005) 1.70%

REPORT OF THE PORTFOLIO MANAGER

3rd QUARTER 2005

After posting good gains during the first weeks of September, the GCC markets corrected somewhat as oil prices retreated from their record levels. Al-Tawfeek is well positioned to take advantage of seasonal factors that are expected to push prices higher over the next 4 month period. However, we do believe that the markets will see some volatility and perhaps a slowdown in trading activity as we hit the holy month of Ramadan in October. Our strategy is to hold through as it would be difficult to trade this volatility that is expected to be short lived. This is mainly due to the end of the holy month coinciding with the majority of companies' third quarter announcement which will result in increasing volumes and investors interest in the markets.

Expectations for the 3rd Quarter:
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PERFORMANCE REVIEW

FUND'S PERFORMANCE ()

GEOGRAPHICAL DISTRIBUTION (30 /09/ 2005)

COUNTRY %

1. EGYPT 42.4%

2.KUWAIT 22.2%

3. MOROCCO 2.2%

4. S. AFRICA 7.6%

4. SHORT TERM 25.6%

SECTOR DISTRIBUTION (30 /09/ 2005 )

Sector %

1. Maroc Telecom 2.2

2. Orascom 21.2

3. Vodafone 9.1

4. Mobinil 12.2

5. MTC 14.6

6. NMTC 7.5

7. MTN 7.6

8. Short Term Inv. 26.6