Ijara Funds

The Fund Is Closed For New Investors

Fund Objective:
The investment objective of the Fund is to provide Investors with reliable and attractive monthly returns by participation in the WCYIF, which invests selectively in Ijara transactions that satisfy the requirements of the Islamic Shariah and which are approved by the Shariah Board. As described above, the Fund expects to repay Principal at the end of the Fund Term, and to provide "changing" yields.

Investment Strategy:
The Fund seeks to invest all its assets in direct purchase of equipment or portfolios of equipment which, in turn, will be leased to diversified lessees. The Fund will select high quality leased to diversified lessees. The Fund will select high quality leasees, focusing particularly on "Fortune 1000" companies. The equipment portfolio of the Fund will also have a diverse range of leasees and equipment types, thus reducing risk. The entire portfolio is invested in accordance with the principles of Islamic Sharia.

Fund Facts

Legal Structure:

An Un-incorporated investment that invests in WCYIF

Fund Term:

5 years (including a 3- months investment period)

Offering Period:

14 January 2007 to 8 February 2007

Subscription price:

US$ 10 per unit.

Minimum Investment:

US$ 3,000 with multiples of US$ 1,000 thereafter.

Investment Period:

3 months following the end of the offering period

Closing Date:

8 February 2007, or such other date as NBK shall deem necessary in its sole discretionInvestment Period Distributions Monthly distributions equal to the Murabaha yield on capital un-invested in lease transactions

Distributions:

Monthly distributions at the end of the 3 month Investment Period.
Capital repayment at maturity.
Initial rate is 2.50% p.a. over the average yield of 3 year US Treasury Notes for the preceeding 6 months.
The rate will be revised up or down annually by 30% of the change in the yield of the US Treasury Note.
The rate may not drop below 7.50% p.a. throughout the life of the Fund.

Sales Charge:

A one-time fee of up to 2.00% upon subscription.

Annual Management Fee:

1.25% per year.

Fund Manager:

Wafra Investment Advisory Group Inc.

Shariah Advisor:

A Shariah Board headed by Dr. Mohamed A. Elgari, Sheikh Yusuf Talal Delorenzo and Sheikh Nizam Yaquby.

Distributor:

National Bank of Kuwait S.A.K.

Auditor:

McGladrey & Pullen LLP.

Reporting:

Semi-annual customer statements and annual audited financial statements.