Bismillahal-Rahmanal-Rahim

I am proud of the fact that Gulf Navigation Holding “GNH” is the regional's leader in maritime and shipping services and the only shipowning company among the three transportation companies listed on Dubai Financial Market and one of top 10 heavily traded shares companies in the market.

I am happy to inform you all that we have achieved remarkable results for the year 2008. We were able to deliver what we promised from the solid performance and the superior financial results to the impressive growth across all business areas during the year. The company posted a record net profit of AED 148.22 Million for the year ended on December 31, 2008. Profit is up by 27.73% as compared to the AED 116.04 Million for 2007. Our revenues rose to 395.95 Million, an increase of 45% over that of 2007. Moreover the company's total assets rose to 3.04 Billion, an increase of 13% over that of 2007.

GNH's excellent results last year are marked by a massive increase in revenues and profits with a much lesser percentage increase in overheads and expenditure.

A dividend of 8 fils per share, equivalent to AED132.4 million, and Directors' remuneration of AED5.056 million have been proposed for the approval of the shareholders.

2009 year look likely to be very challenging for Gulf Navigation Holding. The world has been hit by a financial crisis, unprecedented in the last 50 years, and we cannot be immune to that. However, we believe that the innovation will lead to growth even in recession. If we are looking to maintain our market share, and perhaps post growth despite the recession, innovation is key and innovation is our core strategy, utilizing innovation will constantly strengthen the gains made in the past years.

It is going to be tough year ahead, but I firmly believe that Gulf Navigation will be stronger at the end of it. We have always performed strongly as we have experienced tough times before however difficult circumstances seem again now, I believe that we will look back on this time as one of opportunity and since we deal with fundamental business and we have pool of talent, difficult times are a wonderful opportunity to improve market shares - we intend to take that opportunity.

Thank you.

Engineer Abdullah Abdul Rahman Al Shuraim

Chairman of the board of directors