----

|                               | Pages  |
|------------------------------------|--------|
|                               |   |
|                               |   |
|                               |   |
| Directors’ report            | 1      |
|                               |   |
|                               |   |
|                               |   |
| Independent auditor’s report | 2 - 3  |
|                               |   |
|                               |   |
|                               |   |
| Statement of financial position    | 4      |
|                               |   |
|                               |   |
|                               |   |
| Statement of comprehensive income  | 5      |
|                               |   |
|                               |   |
|                               |   |
| Statement of changes in equity     | 6      |
|                               |   |
|                               |   |
|                               |   |
| Statement of cash flows            | 7      |
|                               |   |
|                               |   |
|                               |   |
| Notes to the financial statements  | 8 - 24 |

----

| Chairman Alternate |   |
|--------------------|--------|
|               |   |

----

----

----

|                                 |   |   |   |   | 2009   |   |        | 2008   |   |
|--------------------------------------|--------|--------|--------|--------|--------|--------|-------------|--------|--------|
|                                 |   | Notes  |   |   | AED    |   |        | AED    |   |
| ASSETS                               |   |   |   |   |   |   |        |   |   |
|                                 |   |   |   |   |   |   |        |   |   |
| Non-current assets                   |   |   |   |   |   |   |        |   |   |
| Intangible assets                    |   |   | 5      |   |   |   | 9,354       |   |   |   | 13,779 |   |
| Property, plant and equipment        |   |   | 6      |   |   |   | 37,580,294  |   |   |   | 57,414,287 |   |
|                                 |   |   |   |   |   |   |        |   |   |   |   |   |
|                                 |   |   |   |   |   |   |        |   |   |   |   |   |
| Total non-current assets             |   |   |   |   |   |   | 37,589,648  |   |   |   | 57,428,066 |   |
|                                 |   |   |   |   |   |   |        |   |   |   |   |   |
|                                 |   |   |   |   |   |   |        |   |   |   |   |   |
| Current assets                       |   |   |   |   |   |   |        |   |   |   |   |   |
| Trade and other receivables          |   |   | 7      |   |   |   | 153,000     |   |   |   | 52,330 |   |
| Prepayments                          |   |   |   |   |   |   | 699,460     |   |   |   | 696,504 |   |
| Cash and bank balances               |   |   |   |   |   |   | 1,324,316   |   |   |   | 1,150,670 |   |
|                                 |   |   |   |   |   |   |        |   |   |   |   |   |
|                                 |   |   |   |   |   |   |        |   |   |   |   |   |
| Total current assets                 |   |   |   |   |   |   | 2,176,776   |   |   |   | 1,899,504 |   |
|                                 |   |   |   |   |   |   |        |   |   |   |   |   |
|                                 |   |   |   |   |   |   |        |   |   |   |   |   |
| Total assets                         |   |   |   |   |   |   | 39,766,424  |   |   |   | 59,327,570 |   |
|                                 |   |   |   |   |   |   |        |   |   |   |   |   |
| EQUITY AND LIABILITIES               |   |   |   |   |   |   |        |   |   |   |   |   |
|                                 |   |   |   |   |   |   |        |   |   |   |   |   |
| Equity                               |   |   |   |   |   |   |        |   |   |   |   |   |
| Share capital                        |   |   | 8      |   |   |   | 1,000,000   |   |   |   | 1,000,000 |   |
| Accumulated losses                   |   |   |   |   |   |   | (39,824,216 | )      |   |   | (9,803,977 | ) |
|                                 |   |   |   |   |   |   |        |   |   |   |   |   |
|                                 |   |   |   |   |   |   |        |   |   |   |   |   |
| Net deficit                          |   |   |   |   |   |   | (38,824,216 | )      |   |   | (8,803,977 | ) |
|                                 |   |   |   |   |   |   |        |   |   |   |   |   |
|                                 |   |   |   |   |   |   |        |   |   |   |   |   |
| Non-current liabilities              |   |   |   |   |   |   |        |   |   |   |   |   |
| Provision for end of service benefit |   |   | 9      |   |   |   | 244,607     |   |   |   | 122,268 |   |
| Bank borrowings                      |   |   | 10     |   |   |   | 25,289,412  |   |   |   | 29,706,887 |   |
| Advances from shareholders           |   |   | 11     |   |   |   | 36,841,982  |   |   |   | - |   |
|                                 |   |   |   |   |   |   |        |   |   |   |   |   |
|                                 |   |   |   |   |   |   |        |   |   |   |   |   |
| Total non-current liabilities        |   |   |   |   |   |   | 62,376,001  |   |   |   | 29,829,155 |   |
|                                 |   |   |   |   |   |   |        |   |   |   |   |   |
|                                 |   |   |   |   |   |   |        |   |   |   |   |   |
| Current liabilities                  |   |   |   |   |   |   |        |   |   |   |   |   |
| Trade and other payables             |   |   |   |   |   |   | 329,917     |   |   |   | 557,085 |   |
| Due to related parties               |   |   | 11     |   |   |   | 4,802,393   |   |   |   | 33,222,460 |   |
| Bank borrowings                      |   |   | 10     |   |   |   | 11,082,329  |   |   |   | 4,522,847 |   |
|                                 |   |   |   |   |   |   |        |   |   |   |   |   |
|                                 |   |   |   |   |   |   |        |   |   |   |   |   |
| Total current liabilities            |   |   |   |   |   |   | 16,214,639  |   |   |   | 38,302,392 |   |
|                                 |   |   |   |   |   |   |        |   |   |   |   |   |
|                                 |   |   |   |   |   |   |        |   |   |   |   |   |
| Total liabilities                    |   |   |   |   |   |   | 78,590,640  |   |   |   | 68,131,547 |   |
|                                 |   |   |   |   |   |   |        |   |   |   |   |   |
|                                 |   |   |   |   |   |   |        |   |   |   |   |   |
| Total equity and liabilities         |   |   |   |   |   |   | 39,766,424  |   |   |   | 59,327,570 |   |
|                                 |   |   |   |   |   |   |        |   |   |   |   |   |

|  /s/ Khalid Al Marri  |   |  /s/ Snehan Olikara  |
|---------------------------------|--------|---------------------------|
| Chairman Alternate              |   | Business Finance Director |
|                            |   |                      |

----

|                                             |   |   |   |   | 2009   |       |        | 2008   |   |
|--------------------------------------------------|--------|--------|--------|--------|--------|------------|-------------|--------|--------|
|                                             |   | Notes  |   |   | AED    |       |        | AED    |   |
|                                             |   |   |   |   |   |       |        |   |   |
| Revenue                                          |   |   |   |   |   | 209,300    |        |   |   | - |   |
| Cost of service                                  |   |   |   |   |   | (2,774,212 | )           |   |   | - |   |
|                                             |   |   |   |   |   |       |        |   |   |   |   |
|                                             |   |   |   |   |   |       |        |   |   |   |   |
| Loss from operations                             |   |   |   |   |   | (2,564,912 | )           |   |   | - |   |
| Depreciation of property, plant and equipment    |   |   | 6      |   |   |       | (14,854,375 | )      |   |   | (160,994 | ) |
| Impairment loss on property, plant and equipment |   |   | 6      |   |   |       | (6,992,146  | )      |   |   | - |   |
| Administrative expenses                          |   |   |   |   |   |       | (2,534,227  | )      |   |   | (5,011,017 | ) |
| Marketing expenses                               |   |   |   |   |   |       | (258,537    | )      |   |   | (967,774 | ) |
| Finance costs                                    |   |   |   |   |   |       | (2,816,042  | )      |   |   | (1,691,775 | ) |
|                                             |   |   |   |   |   |       |        |   |   |   |   |   |
|                                             |   |   |   |   |   |       |        |   |   |   |   |   |
| Loss for the year                                |   |   | 12     |   |   |       | (30,020,239 | )      |   |   | (7,831,560 | ) |
|                                             |   |   |   |   |   |       |        |   |   |   |   |   |
| Other comprehensive income                       |   |   |   |   |   |       | -           |   |   |   | - |   |
|                                             |   |   |   |   |   |       |        |   |   |   |   |   |
|                                             |   |   |   |   |   |       |        |   |   |   |   |   |
| Total comprehensive loss for the year            |   |   |   |   |   |       | (30,020,239 | )      |   |   | (7,831,560 | ) |
|                                             |   |   |   |   |   |       |        |   |   |   |   |   |
|                                             |   |   |   |   |   |       |        |   |   |   |   |   |

----

|                                  |   | Sharecapital |      |   | Accumulatedlosses |   |        | Netdeficit |   |
|---------------------------------------|--------|--------------|-----------|--------|-------------------|--------|-------------|------------|--------|
|                                  |   | AED          |      |   | AED               |   |        | AED        |   |
|                                  |   |         |      |   |              |   |        |       |   |
| Balance at 1 January 2008             |   |         | 1,000,000 |   |              |   | (1,972,417  | )          |   |   | (972,417 | ) |
|                                  |   |         |      |   |              |   |        |       |   |   |   |   |
| Total comprehensive loss for the year |   |         | -         |   |              |   | (7,831,560  | )          |   |   | (7,831,560 | ) |
|                                  |   |         |      |   |              |   |        |       |   |   |   |   |
|                                  |   |         |      |   |              |   |        |       |   |   |   |   |
| Balance at 1 January 2009             |   |         | 1,000,000 |   |              |   | (9,803,977  | )          |   |   | (8,803,977 | ) |
|                                  |   |         |      |   |              |   |        |       |   |   |   |   |
| Total comprehensive loss for the year |   |         | -         |   |              |   | (30,020,239 | )          |   |   | (30,020,239 | ) |
|                                  |   |         |      |   |              |   |        |       |   |   |   |   |
|                                  |   |         |      |   |              |   |        |       |   |   |   |   |
| Balance at 31 December 2009           |   |         | 1,000,000 |   |              |   | (39,824,216 | )          |   |   | (38,824,216 | ) |
|                                  |   |         |      |   |              |   |        |       |   |   |   |   |

----

|                                                                |   | 2009   |        |   | 2008   |   |
|---------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|
|                                                                |   | AED    |        |   | AED    |   |
|                                                                |   |   |        |   |   |   |
| Operating activities                                                |   |   |        |   |   |   |
| Loss for the year                                                   |   |   | (30,020,239 | )      |   |   | (7,831,560 | ) |
| Adjustments for:                                                    |   |   |        |   |   |   |   |   |
|   Amortisation of intangible assets                       |   |   | 4,425       |   |   |   | 3,921 |   |
|   Depreciation of property, plant and equipment           |   |   | 14,854,375  |   |   |   | 160,994 |   |
|   Impairment loss on property, plant and equipment        |   |   | 6,992,146   |   |   |   | - |   |
|   Finance costs                                           |   |   | 2,816,042   |   |   |   | 1,691,775 |   |
|   Provision for end of service benefit                    |   |   | 123,604     |   |   |   | 115,747 |   |
|                                                                |   |   |        |   |   |   |   |   |
| Operating cash flows before movements in  working capital |   |   | (5,229,647  | )      |   |   | (5,859,123 | ) |
|   (Increase)/decrease in trade and other receivables      |   |   | (100,670    | )      |   |   | 17,495 |   |
|   Increase in prepayments                                 |   |   | (2,956      | )      |   |   | (19,620 | ) |
|   (Decrease)/increase in trade and other payables         |   |   | (227,168    | )      |   |   | 412,249 |   |
|                                                                |   |   |        |   |   |   |   |   |
|                                                                |   |   |        |   |   |   |   |   |
|  Cash used in operations                                       |   |   | (5,560,441  | )      |   |   | (5,448,999 | ) |
|                                                                |   |   |        |   |   |   |   |   |
|  End of service benefit paid                                   |   |   | (1,265      | )      |   |   | - |   |
|                                                                |   |   |        |   |   |   |   |   |
|                                                                |   |   |        |   |   |   |   |   |
| Net cash used in operating activities                               |   |   | (5,561,706  | )      |   |   | (5,448,999 | ) |
|                                                                |   |   |        |   |   |   |   |   |
| Investing activities                                                |   |   |        |   |   |   |   |   |
| Purchase of intangible assets                                       |   |   | -           |   |   |   | (17,700 | ) |
| Purchase of property, plant and equipment                           |   |   | (2,012,528  | )      |   |   | (14,098,750 | ) |
|                                                                |   |   |        |   |   |   |   |   |
|                                                                |   |   |        |   |   |   |   |   |
| Net cash used in investing activities                               |   |   | (2,012,528  | )      |   |   | (14,116,450 | ) |
|                                                                |   |   |        |   |   |   |   |   |
| Financing activities                                                |   |   |        |   |   |   |   |   |
| Bank borrowings obtained                                            |   |   | -           |   |   |   | 8,855,291 |   |
| Bank borrowings paid                                                |   |   | (110,823    | )      |   |   | (2,022,552 | ) |
| Advances from shareholders and related parties, net                 |   |   | 8,421,915   |   |   |   | 14,106,888 |   |
| Finance costs paid                                                  |   |   | (563,212    | )      |   |   | (1,133,788 | ) |
|                                                                |   |   |        |   |   |   |   |   |
|                                                                |   |   |        |   |   |   |   |   |
| Net cash from financing activities                                  |   |   | 7,747,880   |   |   |   | 19,805,839 |   |
|                                                                |   |   |        |   |   |   |   |   |
|                                                                |   |   |        |   |   |   |   |   |
| Net increase in cash and cash equivalents                           |   |   | 173,646     |   |   |   | 240,390 |   |
|                                                                |   |   |        |   |   |   |   |   |
| Cash and cash equivalents at the beginning of the year              |   |   | 1,150,670   |   |   |   | 910,280 |   |
|                                                                |   |   |        |   |   |   |   |   |
|                                                                |   |   |        |   |   |   |   |   |
| Cash and cash equivalents at the end of the year                    |   |   | 1,324,316   |   |   |   | 1,150,670 |   |
|                                                                |   |   |        |   |   |   |   |   |

----

|                                                                              |                                                                                                                                                                       |
|-----------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · IAS 1 (as revised in 2007) Presentation of Financial Statements  | IAS 1 (2007) has introduced terminology changes (including revised titles for the financial statements) and changes in the format and content of the financial statements. |

| 2.2 | Standards and Interpretations adopted with no effect on the financial statements (continued) |
|-----|----------------------------------------------------------------------------------------------|

| · IFRS 1 (revised) First time Adoption of IFRS and IAS 27 (revised) Consolidated and Separate Financial Statements  | The amendments deal with the measurement of the cost of investments in subsidiaries, jointly controlled entities and associates when adopting IFRSs for the first time and with the recognition of dividend income from subsidiaries in a parent’s separate financial statements.                       |
|------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · Improving disclosures about Financial Instruments (Amendments to IFRS 7 Financial Instruments: Disclosures)       | The amendments to IFRS 7 expand the disclosures required in respect of fair value measurements and liquidity risk. The Company has elected not to provide comparative information for these expanded disclosures in the current year in accordance with the transitional reliefs offered in these amendments. |
| · IFRS 8 Operating Segments                                                                                         | IFRS 8 is a disclosure Standard that requires re-designation of the Company’s reportable segments based on the segments used by the Chief Operating Decision Maker to allocate resources and assess performance.                                                                                        |

----

| 2 | Adoption of new and revised International Financial Reporting Standards (IFRSs) (continued) |
|---|---------------------------------------------------------------------------------------------|

| 2.2 | Standards and Interpretations adopted with no effect on the financial statements (continued) |
|-----|----------------------------------------------------------------------------------------------|

| · Amendments to IFRS 2 Share-based Payment - Vesting Conditions and Cancellations                                                                                                                   | The amendments clarify the definition of vesting conditions for the purposes of IFRS 2, introduce the concept of ‘non-vesting’ conditions, and clarify the accounting treatment for cancellations.                                                                                                                                                                                                                                               |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · IAS 23 (as revised in 2007) Borrowing Costs                                                                                                                                                  | The principal change to the Standard was to eliminate the option to expense all borrowing costs when incurred. This change has had no impact on these financial statements because as per transitional provision, it is not required to capitalise borrowing costs relating to qualifying assets for which the commencement date of capitalisation is before the effective date of the standard.                                                             |
| · Amendments to IAS 32 Financial Instruments: Presentation and IAS 1 Presentation of Financial Statements – Puttable Financial Instruments and Obligations Arising on Liquidation   | The revisions to IAS 32 amend the criteria for debt/equity classification by permitting certain puttable financial instruments and instruments (or components of instruments) that impose on an entity an obligation to deliver to another party a pro-rata share of the net assets of the entity only on liquidation, to be classified as equity, subject to specified criteria being met.                                                                  |
| · IFRIC 13 Customer Loyalty Programmes                                                                                                                                                         | The Interpretation provides guidance on how entities should account for customer loyalty programmes by allocating revenue on sale to possible future award attached to the sale.                                                                                                                                                                                                                                                                             |
| · IFRIC 15 Agreements for the Construction of Real Estate                                                                                                                                      | The Interpretation addresses how entities should determine whether an agreement for the construction of real estate is within the scope of IAS 11 Construction Contracts or IAS 18 Revenue and when revenue from the construction of real estate should be recognised.                                                                                                                                                                                       |
| · IFRIC 16 Hedges of a Net Investment in a Foreign Operation                                                                                                                                   | The Interpretation provides guidance on the detailed requirements for net investment hedging for certain hedge accounting designations.                                                                                                                                                                                                                                                                                                                      |
| · IFRIC 18 Transfers of Assets from Customers (adopted in advance of effective date of transfers of assets from customers received on or after 1 July 2009)                                    | The Interpretation addresses the accounting by recipients for transfers of property, plant and equipment from ‘customers’ and concludes that when the item of property, plant and equipment transferred meets the definition of an asset from the perspective of the recipient, the recipient should recognise the asset at its fair value on the date of the transfer, with the credit recognised as revenue in accordance with IAS 18 Revenue. |

----

| 2 | Adoption of new and revised International Financial Reporting Standards (IFRSs) (continued) |
|---|---------------------------------------------------------------------------------------------|

| 2.2 | Standards and Interpretations adopted with no effect on the financial statements (continued) |
|-----|----------------------------------------------------------------------------------------------|

| · IAS 39 (revised) Financial Instruments: Recognition and Measurement and IFRIC 9 Embedded Derivatives  | The  amendments  clarify  the  accounting  for  embedded derivatives in the case of a reclassification of a financial asset out of the  “fair value through profit or loss” category as permitted  by  the  October 2008  amendments  to  IAS 39 Financial Instruments: Recognition and Measurement. |
|------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · Improvements to IFRSs (2008)                                                                          | Amendments to IFRS 5, IAS 1, IAS 16, IAS 19, IAS 20, IAS 23, IAS 27, IAS 28, IAS 29, IAS 31, IAS 36, IAS 38, IAS 39, IAS 40 and IAS 41 resulting from the May and October 2008 Annual Improvements to IFRSs majority of which are effective for annual periods beginning on or after 1 January 2009.                                                                                                                                               |

|   New Standards and amendments to Standards:                                                                                                                                                                                                                                                                  | Effective forannual periodsbeginning on or after                           |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                    | --------------------------------------------                               |
|                                                                                                                                                                                                                                                                                                                    |                                                                       |
| · IFRS 1 (revised) First time Adoption of IFRS – Amendment on additional exemptions for First-time Adopters                                                                                                                                                                                             | 1 July 2009 and1 January 2010                                              |
| · IFRS 3 (revised) Business Combinations – Comprehensive revision on applying the acquisition method and consequential amendments to IAS 27 (revised) Consolidated and Separate Financial Statements, IAS 28 (revised) Investments in Associates and IAS 31 (revised) Interests in Joint Ventures  | 1 July 2009                                                                |
| · IAS 39 (revised) Financial Instruments: Recognition and Measurement – Amendments relating to Eligible Hedged Items (such as hedging inflation risk and hedging with options)                                                                                                                     | 1 July 2009                                                                |
| · IFRS 2 (revised) Share-based payment – Amendment relating to Group cash-settled Share-based payments                                                                                                                                                                                             | 1 January 2010                                                             |
| · IAS 32 (revised) Financial Instruments: Presentation – Amendments relating to classification of Rights Issue                                                                                                                                                                                     | 1 February 2010                                                            |
| · IAS 24 Related Party Disclosures – Amendment on disclosure requirements for entities that are controlled, jointly controlled or significantly influenced by a Government                                                                                                                         | 1 January 2011                                                             |
| · IFRS 9 Financial Instruments:Classification and Measurement (intended as complete replacement for IAS 39 and IFRS 7)                                                                                                                                                                                   | 1 January 2013                                                             |
| · Amendments to IFRS 2, IFRS 5, IFRS 8, IAS 1, IAS 7, IAS 17, IAS 18, IAS 36, IAS 38 and IAS 39 resulting from April 2009 Annual Improvements to IFRSs.                                                                                                                                                  | Majority effective for annual periods beginning on or after 1 January 2010 |

----

| 2 | Adoption of new and revised International Financial Reporting Standards (IFRSs) (continued) |
|---|---------------------------------------------------------------------------------------------|

|   New Interpretations and amendments to Interpretations:                                                                       | Effective forannual periodsbeginning on or after |   |
|------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------|--------|
|                                                                                                                                     |                                             |   |
|                                                                                                                                     |                                             |   |
| · IFRIC 17: Distributions of Non-cash Assets to Owners                                                                    | 1 July 2009                                      |
| · IFRIC 19: Extinguishing Financial Liabilities with Equity Instruments                                                   | 1 July 2010                                      |
| · Amendment to IFRIC 14: IAS 19: The limit on a defined Benefit Asset, Minimum Funding Requirement and their interaction  | 1 January 2011                                   |
| · Amendment to IFRIC 16: Hedges of a Net Investment in a Foreign Operation                                                | 1 July 2009                                      |
| · Withdrawal of IFRIC 11 IFRS 2: Group and Treasury Share Transactions                                                    | Withdrawn as of1 January 2010                    |   |

----

| Building improvements  | 20%    |
|------------------------|--------|
| Furniture and fixtures | 20%    |
| Office equipment       | 25%    |
| Motor vehicles         | 20%    |
| Simulation equipment   | 25%    |
|                   |   |

----

----

----

----

| 4 | Critical accounting judgments and key sources of estimation uncertainty |
|---|-------------------------------------------------------------------------|

| 5            | Intangible assets |
|---------------------------------------------------------------------|-------------------|

|                     |   | 2009   |   |   | 2008   |   |
|--------------------------|--------|--------|--------|--------|--------|--------|
|                     |   | AED    |   |   | AED    |   |
| Cost                     |   |   |   |   |   |   |
| At 1 January             |   |   | 17,700 |   |   |   | - |   |
| Additions                |   |   | -      |   |   |   | 17,700 |   |
|                     |   |   |   |   |   |   |   |   |
|                     |   |   |   |   |   |   |   |   |
| At 31 December           |   |   | 17,700 |   |   |   | 17,700 |   |
|                     |   |   |   |   |   |   |   |   |
| Accumulated amortisation |   |   |   |   |   |   |   |   |
| At 1 January             |   |   | 3,921  |   |   |   | - |   |
| Charge for the year      |   |   | 4,425  |   |   |   | 3,921 |   |
|                     |   |   |   |   |   |   |   |   |
|                     |   |   |   |   |   |   |   |   |
| At 31 December           |   |   | 8,346  |   |   |   | 3,921 |   |
|                     |   |   |   |   |   |   |   |   |
| Carrying amount          |   |   |   |   |   |   |   |   |
| At 31 December           |   |   | 9,354  |   |   |   | 13,779 |   |
|                     |   |   |   |   |   |   |   |   |
|                     |   |   |   |   |   |   |   |   |

----

|                     |   | Building improvements |    |   | Furniture andfixtures |   |    | Officeequipment |   |   | Motor vehicles |   |   | Simulation equipment |   |   | Capital workin progress |   |       | Total  |   |
|--------------------------|--------|-----------------------|---------|--------|-----------------------|--------|---------|-----------------|--------|--------|---------------------|--------|--------|----------------------|--------|--------|-------------------------|--------|------------|--------|--------|
|                     |   | AED                   |    |   | AED                   |   |    | AED             |   |   | AED                 |   |   | AED                  |   |   | AED                     |   |       | AED    |   |
| Cost                     |   |                  |    |   |                  |   |    |            |   |   |                |   |   |                 |   |   |                    |   |       |   |   |
| 1 January 2008           |   |                  | -       |   |                  |   | 116,836 |            |   |   | 8,538               |   |   |                 | -      |   |                    |   | -          |   |   |   | 43,352,407 |   |   |   | 43,477,781 |   |
| Additions                |   |                  | 312,428 |   |                  |   | 354,516 |            |   |   | 242,053             |   |   |                 | 74,000 |   |                    |   | -          |   |   |   | 13,115,753 |   |   |   | 14,098,750 |   |
|                     |   |                  |    |   |                  |   |    |            |   |   |                |   |   |                 |   |   |                    |   |       |   |   |   |   |   |   |   |   |   |
|                     |   |                  |    |   |                  |   |    |            |   |   |                |   |   |                 |   |   |                    |   |       |   |   |   |   |   |   |   |   |   |
| 1 January 2009           |   |                  | 312,428 |   |                  |   | 471,352 |            |   |   | 250,591             |   |   |                 | 74,000 |   |                    |   | -          |   |   |   | 56,468,160 |   |   |   | 57,576,531 |   |
| Additions                |   |                  | -       |   |                  |   | -       |            |   |   | -                   |   |   |                 | -      |   |                    |   |       |   |   |   | 2,012,528 |   |   |   | 2,012,528 |   |
| Transfer                 |   |                  | -       |   |                  |   | -       |            |   |   | -                   |   |   |                 | -      |   |                    |   | 58,480,688 |   |   |   | (58,480,688 | ) |   |   | - |   |
|                     |   |                  |    |   |                  |   |    |            |   |   |                |   |   |                 |   |   |                    |   |       |   |   |   |   |   |   |   |   |   |
|                     |   |                  |    |   |                  |   |    |            |   |   |                |   |   |                 |   |   |                    |   |       |   |   |   |   |   |   |   |   |   |
| At 31 December 2009      |   |                  | 312,428 |   |                  |   | 471,352 |            |   |   | 250,591             |   |   |                 | 74,000 |   |                    |   | 58,480,688 |   |   |   | - |   |   |   | 59,589,059 |   |
|                     |   |                  |    |   |                  |   |    |            |   |   |                |   |   |                 |   |   |                    |   |       |   |   |   |   |   |   |   |   |   |
|                     |   |                  |    |   |                  |   |    |            |   |   |                |   |   |                 |   |   |                    |   |       |   |   |   |   |   |   |   |   |   |
| Accumulated depreciation |   |                  |    |   |                  |   |    |            |   |   |                |   |   |                 |   |   |                    |   |       |   |   |   |   |   |   |   |   |   |
| 1 January 2008           |   |                  | -       |   |                  |   | 954     |            |   |   | 296                 |   |   |                 | -      |   |                    |   | -          |   |   |   | - |   |   |   | 1,250 |   |
| Charge for the year      |   |                  | 51,155  |   |                  |   | 67,213  |            |   |   | 36,459              |   |   |                 | 6,167  |   |                    |   |       |   |   |   |   |   |   |   | 160,994 |   |
|                     |   |                  |    |   |                  |   |    |            |   |   |                |   |   |                 |   |   |                    |   |       |   |   |   |   |   |   |   |   |   |
|                     |   |                  |    |   |                  |   |    |            |   |   |                |   |   |                 |   |   |                    |   |       |   |   |   |   |   |   |   |   |   |
| 1 January 2009           |   |                  | 51,155  |   |                  |   | 68,167  |            |   |   | 36,755              |   |   |                 | 6,167  |   |                    |   | -          |   |   |   | - |   |   |   | 162,244 |   |
| Charge for the year      |   |                  | 62,486  |   |                  |   | 94,270  |            |   |   | 62,647              |   |   |                 | 14,800 |   |                    |   | 14,620,172 |   |   |   | - |   |   |   | 14,854,375 |   |
| Impairment loss          |   |                  | -       |   |                  |   | -       |            |   |   | -                   |   |   |                 | -      |   |                    |   | 6,992,146  |   |   |   |   |   |   |   | 6,992,146 |   |
|                     |   |                  |    |   |                  |   |    |            |   |   |                |   |   |                 |   |   |                    |   |       |   |   |   |   |   |   |   |   |   |
|                     |   |                  |    |   |                  |   |    |            |   |   |                |   |   |                 |   |   |                    |   |       |   |   |   |   |   |   |   |   |   |
| At 31 December 2009      |   |                  | 113,641 |   |                  |   | 162,437 |            |   |   | 99,402              |   |   |                 | 20,967 |   |                    |   | 21,612,318 |   |   |   | - |   |   |   | 22,008,765 |   |
|                     |   |                  |    |   |                  |   |    |            |   |   |                |   |   |                 |   |   |                    |   |       |   |   |   |   |   |   |   |   |   |
| Carrying amount          |   |                  |    |   |                  |   |    |            |   |   |                |   |   |                 |   |   |                    |   |       |   |   |   |   |   |   |   |   |   |
| At 31 December 2009      |   |                  | 198,787 |   |                  |   | 308,915 |            |   |   | 151,189             |   |   |                 | 53,033 |   |                    |   | 36,868,370 |   |   |   | - |   |   |   | 37,580,294 |   |
|                     |   |                  |    |   |                  |   |    |            |   |   |                |   |   |                 |   |   |                    |   |       |   |   |   |   |   |   |   |   |   |
| At 31 December 2008      |   |                  | 261,273 |   |                  |   | 403,185 |            |   |   | 213,836             |   |   |                 | 67,833 |   |                    |   | -          |   |   |   | 56,468,160 |   |   |   | 57,414,287 |   |
|                     |   |                  |    |   |                  |   |    |            |   |   |                |   |   |                 |   |   |                    |   |       |   |   |   |   |   |   |   |   |   |

----

|              |   | 2009   |    |   | 2008   |   |
|-------------------|--------|--------|---------|--------|--------|--------|
|              |   | AED    |    |   | AED    |   |
|              |   |   |    |   |   |   |
| Trade receivables |   |   | 108,000 |   |   |   | - |   |
| Other receivables |   |   | 45,000  |   |   |   | 52,330 |   |
|              |   |   |    |   |   |   |   |   |
|              |   |   |    |   |   |   |   |   |
|              |   |   | 153,000 |   |   |   | 52,330 |   |
|              |   |   |    |   |   |   |   |   |

|                                                                    |                 |   | 2009 and 2008 |   |
|-------------------------------------------------------------------------|----------------------|--------|---------------|--------|
|                                                                    | Place ofregistration |   | %             |   |   | Number ofshares |   |   | AED |   |
|                                                                    |                 |   |          |   |   |   |   |   |   |   |
| Al Qudra Holding P.J.S.C.                                               | UAE                  |   |          | 60     |   |   |   | 600 |   |   |   | 600,000 |   |
| Center of Excellence for Applied Research   and Training | UAE                  |   |          | 30     |   |   |   | 300 |   |   |   | 300,000 |   |
| GSE Power Systems, Inc.                                                 | USA                  |   |          | 10     |   |   |   | 100 |   |   |   | 100,000 |   |
|                                                                    |                 |   |          |   |   |   |   |   |   |   |   |   |   |
|                                                                    |                 |   |          |   |   |   |   |   |   |   |   |   |   |
|                                                                    |                 |   |          | 100    |   |   |   | 1,000 |   |   |   | 1,000,000 |   |
|                                                                    |                 |   |          |   |   |   |   |   |   |   |   |   |   |

|                 |   | 2009   |    |   | 2008   |   |
|----------------------|--------|--------|---------|--------|--------|--------|
|                 |   | AED    |    |   | AED    |   |
|                 |   |   |    |   |   |   |
| At 1 January         |   |   | 122,268 |   |   |   | 6,521 |   |
| Charge for the year  |   |   | 123,604 |   |   |   | 115,747 |   |
| Paid during the year |   |   | (1,265  | )      |   |   | - |   |
|                 |   |   |    |   |   |   |   |   |
|                 |   |   |    |   |   |   |   |   |
| At 31 December       |   |   | 244,607 |   |   |   | 122,268 |   |
|                 |   |   |    |   |   |   |   |   |

|                                   |   | 2009   |        |   | 2008   |   |
|----------------------------------------|--------|--------|-------------|--------|--------|--------|
|                                   |   | AED    |        |   | AED    |   |
|                                   |   |   |        |   |   |   |
| Term loan                              |   |   | 36,371,741  |   |   |   | 34,229,734 |   |
| Less: non-current portion of term loan |   |   | (25,289,412 | )      |   |   | (29,706,887 | ) |
|                                   |   |   |        |   |   |   |   |   |
|                                   |   |   |        |   |   |   |   |   |
| Current portion of term loan           |   |   | 11,082,329  |   |   |   | 4,522,847 |   |
|                                   |   |   |        |   |   |   |   |   |

----

|                       |   | 2009   |       |   | 2008   |   |
|----------------------------|--------|--------|------------|--------|--------|--------|
|                       |   | AED    |       |   | AED    |   |
|                       |   |   |       |   |   |   |
| Within one year            |   |   | 11,082,329 |   |   |   | 4,522,847 |   |
| In the second year         |   |   | 6,911,740  |   |   |   | 7,268,900 |   |
| In the third to fifth year |   |   | 18,377,672 |   |   |   | 22,437,987 |   |
|                       |   |   |       |   |   |   |   |   |
|                       |   |   | 36,371,741 |   |   |   | 34,229,734 |   |
|                       |   |   |       |   |   |   |   |   |

| -   | First degree commercial mortgage in favour of the bank to be concluded upon the completion of the project over the Company’s assets; |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------|

| -   | Assignment of the standby LC for US$ 2,110,000 received from GSE Power Systems, Inc. under the simulators supply contract; |
|---------------|----------------------------------------------------------------------------------------------------------------------------|

| -   | Assignment of all contracts payments from prospective clients in favour of the bank; |
|---------------|--------------------------------------------------------------------------------------|

| -   | Post dated cheques covering installments with fixed date and amount in favour of the bank; |
|---------------|--------------------------------------------------------------------------------------------|

| -   | Corporate guarantees on joint and several basis from the shareholders; and |
|---------------|----------------------------------------------------------------------------|

| -   | Endorsement of the insurance policies over the Company’s assets to the bank as first loss payee. |
|---------------|--------------------------------------------------------------------------------------------------------|

----

|                                                   |   | 2009   |       |   | 2008   |   |
|--------------------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                                   |   | AED    |       |   | AED    |   |
|                                                   |   |   |       |   |   |   |
| Al Qudra Holding P.J.S.C.                              |   |   | 22,321,313 |   |   |   | - |   |
| Center of Excellence for Applied Research and Training |   |   | 10,991,157 |   |   |   | - |   |
| GSE Power Systems, Inc.                                |   |   | 3,529,512  |   |   |   | - |   |
|                                                   |   |   |       |   |   |   |   |   |
|                                                   |   |   |       |   |   |   |   |   |
|                                                   |   |   | 36,841,982 |   |   |   | - |   |
|                                                   |   |   |       |   |   |   |   |   |

|                                                   |   | 2009   |      |   | 2008   |   |
|--------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
|                                                   |   | AED    |      |   | AED    |   |
|                                                   |   |   |      |   |   |   |
| Al Qudra Holding P.J.S.C.                              |   |   | -         |   |   |   | 20,467,301 |   |
| Center of Excellence for Applied Research and Training |   |   | -         |   |   |   | 9,275,646 |   |
| GSE Power Systems, Inc.                                |   |   | 2,012,528 |   |   |   | 3,479,513 |   |
| Al Qudra General Trading L.L.C.                        |   |   | 1,570,800 |   |   |   | - |   |
| Al Qudra Education L.L.C.                              |   |   | 1,219,065 |   |   |   | - |   |
|                                                   |   |   |      |   |   |   |   |   |
|                                                   |   |   |      |   |   |   |   |   |
|                                                   |   |   | 4,802,393 |   |   |   | 33,222,460 |   |
|                                                   |   |   |      |   |   |   |   |   |

|                                      |   | 2009   |      |   | 2008   |   |
|-------------------------------------------|--------|--------|-----------|--------|--------|--------|
|                                      |   | AED    |      |   | AED    |   |
|                                      |   |   |      |   |   |   |
| Purchase of property, plant and equipment |   |   | 2,012,528 |   |   |   | 13,115,753 |   |
|                                      |   |   |      |   |   |   |   |   |
|                                      |   |   |      |   |   |   |   |   |
| Advances received                         |   |   | 6,409,387 |   |   |   | 14,106,888 |   |
|                                      |   |   |      |   |   |   |   |   |
|                                      |   |   |      |   |   |   |   |   |
| Key management compensation               |   |   | 1,348,735 |   |   |   | 1,290,907 |   |
|                                      |   |   |      |   |   |   |   |   |
|                                      |   |   |      |   |   |   |   |   |

----

|                                                     |   | 2009   |       |   | 2008   |   |
|----------------------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                                     |   | AED    |       |   | AED    |   |
|                                                     |   |   |       |   |   |   |
| Staff costs                                              |   |   | 3,343,612  |   |   |   | 2,852,418 |   |
|                                                     |   |   |       |   |   |   |   |   |
|                                                     |   |   |       |   |   |   |   |   |
| Amortisation of intangible assets                        |   |   | 4,425      |   |   |   | 3,921 |   |
|                                                     |   |   |       |   |   |   |   |   |
|                                                     |   |   |       |   |   |   |   |   |
| Depreciation of property, plant  and equipment |   |   | 14,854,375 |   |   |   | 160,994 |   |
|                                                     |   |   |       |   |   |   |   |   |
|                                                     |   |   |       |   |   |   |   |   |
| Impairment loss on property, plant and equipment         |   |   | 6,992,146  |   |   |   | - |   |
|                                                     |   |   |       |   |   |   |   |   |

----

----

|                                          | Effectiveinterest |   | Less than3 months |      |   | 3 months to1 year |   |       | 1 year to5 years |   |   | Total      |   |
|-----------------------------------------------|-------------------|--------|-------------------|-----------|--------|-------------------|--------|------------|------------------|--------|--------|------------|--------|
| 2009:                                         | rate              |   | AED               |      |   | AED               |   |       | AED              |   |   | AED        |   |
| Financial liabilities                         |              |   |              |      |   |              |   |       |             |   |   |       |   |
| Non-interest bearing  Instruments   |              |   |              | 5,132,310 |   |              |   | -          |             |   |   | 36,841,982 |   |   |   | 41,974,292 |   |
| Variable interest rate  instruments | Note 10           |   |              | 882,365   |   |              |   | 10,199,964 |             |   |   | 25,289,412 |   |   |   | 36,371,741 |   |
|                                          |              |   |              |      |   |              |   |       |             |   |   |       |   |   |   |   |   |
|                                          |              |   |              |      |   |              |   |       |             |   |   |       |   |   |   |   |   |
|                                          |              |   |              | 6,014,675 |   |              |   | 10,199,964 |             |   |   | 62,131,394 |   |   |   | 78,346,033 |   |
|                                          |              |   |              |      |   |              |   |       |             |   |   |       |   |   |   |   |   |

|                                          | Effectiveinterest |   | Less than3 months |      |   | 3 months to1 year |   |       | 1 year to5 years |   |   | Total      |   |
|-----------------------------------------------|-------------------|--------|-------------------|-----------|--------|-------------------|--------|------------|------------------|--------|--------|------------|--------|
| 2008:                                         | Rate              |   | AED               |      |   | AED               |   |       | AED              |   |   | AED        |   |
| Financial liabilities                         |              |   |              |      |   |              |   |       |             |   |   |       |   |
| Non-interest bearing  Instruments   |              |   |              | 557,085   |   |              |   | 33,222,460 |             |   |   | -          |   |   |   | 33,779,545 |   |
| Variable interest rate  instruments | Note 10           |   |              | 1,549,202 |   |              |   | 2,973,645  |             |   |   | 29,706,887 |   |   |   | 34,229,734 |   |
|                                          |              |   |              |      |   |              |   |       |             |   |   |       |   |   |   |   |   |
|                                          |              |   |              |      |   |              |   |       |             |   |   |       |   |   |   |   |   |
|                                          |              |   |              | 2,106,287 |   |              |   | 36,196,105 |             |   |   | 29,706,887 |   |   |   | 68,009,279 |   |
|                                          |              |   |              |      |   |              |   |       |             |   |   |       |   |   |   |   |   |

----