KM Properties has already committed an investment of $290million to develop a 700-room hotel and serviced apartment projectin Dubai, scheduled to open or business in the summer of 2008. Theproject also will act as a model for attracting investors androlling out the company's multi-market development plan.

The new-concept hotel chain, a brand name for which has not beenestablished, will encompass significant elements that have not beenaddressed or targeted by existing hotel flags. Chief among them isthat the hotels will abide by the Islamic Shari'ah principles,which address many aspects of day-to-day life; politics, economics,banking, business law, contract law, and social issues. The newlycreated hospitality flag may also take over the management ofexisting properties.

KM also has formed a Shari'ah-compliant hospitality operatorcompany to operate hotels on behalf of the fund. The company plansto operate Shari'ah-compliant properties throughout the Middle Eastand Asia. During the first 12 months of the fund, the company hopesto be operating hotels in Saudi Arabia, Morocco, Turkey, Malaysia,and India. Three operating agreements have been signed and severalmore are in being negotiated.