MANAMA, 10 December 2007 — The UK’s Financial Services Authority (FSA) is to authorize BIIH General, the general insurance subsidiary of British Islamic Insurance Holdings (BIIH), provided it complies with a number of important conditions set out by the regulatory body.

BIIH was formed in 2006 and raised a capital of £19 million from Gulf-based institutional and private investors during the year. Since then the company has been working intensively with accountants, lawyers, actuaries, takaful consultants and regulatory advisers to finalize its business plan, submit its regulatory application and gain permission from the FSA to provide Shariah- compliant insurance services in the United Kingdom.

Bradley Brandon-Cross, CEO, BIIH said in a statement yesterday: “I am delighted that the FSA have completed their initial review. This moves us one step closer to full regulatory approval.”

Investors from Saudi Arabia contributed more than 50 percent of the paid-up capital of the company in 2006, and through their support, the company is aiming to become the leading provider of Shariah-compliant insurance products in the UK and Europe.

Abdulaziz Aljomaih, chairman of BIIH, highlighted the large-scale business opportunity for takaful products in the UK and the tremendous investment opportunity for Gulf citizens wishing to invest in Islamic financial services outside the region. He said: “There are opportunities for investors to look beyond Muslim countries and explore the growth potential offered by the fast growing number of Muslim consumers in Western economies. Through other recent initiatives in Shariah-compliant banking products, the Muslim community in the UK is demonstrating an increased awareness and understanding of Islamic financial services and is keen to use takaful products. Add to this the high level of insurance penetration in the UK, and the investment opportunity seems obvious.”

“We have had great support from Saudi Arabian investors” Brandon-Cross added. “As the heart of the Muslim world, we anticipate and welcome further investors and cooperation from Saudi Arabia and the GCC as a whole as the company grows. BIIH has the opportunity to become the market leading provider of Shariah-compliant insurance in the UK and Europe — a perfect example of cooperation and collaboration between the UK and the Gulf region.”

Aljomaih Holdings in Riyadh is the core founder of the company. Key non-Saudi investors include Dubai Bank in the UAE and International Investment Bank in Bahrain.