In our continuing pro-active efforts to keep investors apprised of the most relevant and timely information on Alfa and its target markets, AGORACOM is pleased to present you with this latest Industry Report.

Alfa International Holdings Corp. conducts all its real-estate development business activities through its wholly owned subsidiary, Journey of Light, Inc. (JOL) A Memorandum of Understanding (“MOU”) between JOL and the Sultanate of Oman was announced August 01, 2005 for the construction of a tourism and residential real-estate development project called Omagine with a presently projected construction cost of approximately U.S. $1.6 billion.

Please find below an article which was published on the AME Info website which focuses on The Middle East Finance and Economy. This article focuses on Oman’s and its underlying economics. We believe that Oman represents an excellent investment opportunity due to the early stage of the development cycle when compared to Dubai and other GCC countries.

About AME Info:

AME Info is a leading provider of online business information in and about the Middle East region under the title ``AME Info - The ultimate Middle East business resource`` (AME Info). Currently carrying some 80,239 news articles, 2,405 upcoming events as well as covering contact and activity details of 299,907 companies from 14 countries, including:

Bahrain, Egypt, Iran, Iraq, Jordan, Kuwait, Lebanon, Oman, Palestine, Qatar, Syria, Saudi Arabia, United Arab Emirates and Yemen.

Regards,

AGORACOM Investor Relations

To read the entire article, please use the following link:

http://www.ameinfo.com/93008.html

Oman: Hydrocarbon sector to drive growth

1) Economic performance to remain robust. 2) The outlook will be supported by increased LNG exports. 3) Government policy is supporting the diversification program.

Thursday, August 03 - 2006

As with other regional oil exporting countries, the Omani economy is booming on the back of the strong oil price. Highlighting the strong economic performance, recently-released central bank data indicated that nominal GDP growth accelerated to 24% in 2005, from 13.7% in the previous year. We estimate real GDP growth was 5.5%. Importantly, the latest data shows the decline in annual oil production levels moderated in 2005, falling marginally by just 1% to 282.6m barrels. Furthermore, the 46.1% y/y rise in the average price of Omani oil to USD 50.3 pb more than compensated the lower output level; consequently, the hydrocarbon sector expanded by 44.3% y/y. The easy domestic liquidity conditions also supported the economic expansion and the non-oil sector grew by 9.2%.

Meanwhile, high energy prices also resulted in external and fiscal surpluses increasing, the build-up of FX reserves and the reduction of government debt levels. Total government debt levels stood at 8.6% of GDP at the end of 2005. Oman has indicated it will continue use its oil revenue to repay its debt in 2006, possibly cutting debt by 30%.

Robust growth will remain a feature of the Omani economy in 2006, with real GDP growth accelerating to 6.5%. This will be the highest growth levels since 2001. Again the higher oil price will more than compensate from the continued fall in oil output; production levels fell further to 763,000 bpd in Q1, from an average of 774,000 bpd in 2005.

Furthermore, Oman`s macroeconomic position will be supported by higher LNG exports after the third train at Qalhat, producing 3.3 million tonnes-a-year, came on stream in December 2005. These factors are reflected in exports increasing by 35.5% y/y in Q1 2006, while overall government revenue grew by 62.4% y/y. Earnings from natural gas increased substantially by 160.2% y/y to USD 487.3m. Importantly, Qalhat LNG has signed long-term sale and purchase agreements for the total production of the third train.

The economic expansion will also be driven by higher government spending, which will in turn support investment and private consumption. The expansionary budget plans to increase spending in `06 by 15.1% from the previous budget; this is markedly above the increases in previous budgets. Furthermore, the strong revenues will allow the government to intensify investment spending, both to increase oil production levels and to diversify the economy, namely in the downstream and tourism sectors. This diversification is particularly important for Oman given the fact that oil reserves are only slated to last for around 25-30 years, at current production levels.

On the upstream side, the government has announced plans to invest USD 10bn between 2006 and 2010 to enhance oil recovery and sustain oil production; Muscat wants to see oil flowing at 900,000 bpd by 2010. With regards to 2006, investment in the oil and gas sector is set to increase by over 39% from the 2005 budget. On the downstream side, the government is focusing in areas such as petrochemicals, aluminium smelting and fertilisers. The government also has plans to expand Port Salalah and develop a freetrade zone (FTZ) there (the first phase of which will cost in the region of USD100 million). Importantly, Oman is tapping into private and foreign investments and partnerships in its development plans.

Meanwhile, importantly for the development of the tourism sector, Sultan Qaboos bin Said al Said issued a royal decree in February formalising rules allowing non-Omanis to own real estate in the country. Under the decree, foreigners will be allowed to hold the title to homes inside specified tourism projects. Furthermore, property holders and their immediate families will also be entitled to obtain residential visas for Oman. The government hopes that it will attract longer-term visitors by allowing property ownership in its mixed resort and residential developments.

Tourism also remains a tenet for Oman`s diversification goals. The tourism sector has been particularly highlighted by the government as it is labour-intensive and is seen as a way of providing jobs for the increasing number of entrants to the work force. Several major tourism projects that are at various stages of planning and development, such as the Blue City development, an up-market residential, hotel and leisure resort on the Indian Ocean coast. The first phase alone is expected to create 7,000 direct jobs and 25,000 indirect jobs.

The economy will also benefit from a Free Trade Agreement (FTA) with the US. The US Senate approved the FTA with Muscat in June, despite concerns from the Democrats over workers rights and labour laws in Oman. The bill has to be approved by the House of Representatives and is due to be debated in July. Support for the bill should increase as a result of amendment made to Omani labour laws in early July. The new decree allows workers to form trade unions to protect their rights and lobby for better working conditions. The unions will be independent and representatives cannot be dismissed or punished for their role. It also allowed in principle, and for the first time, the organisation of `peaceful strikes`, although a ministerial decision will be issued to set the rules for such action. While this is a positive step, some US Democrats have suggested the law does not go far enough and the possibility of the FTA being caught up in pre-midterm election politicking cannot be ruled out.

Assuming the FTA is approved, it will be the second trade agreement that Washington has finalised with a GCC country, the first being with Bahrain. The FTA would boost US investment in Oman. On the trade front, tariffs would be lifted by both sides on 100% of industrial and consumer products, except for textiles and clothing. Muscat is particularly interested in increasing petrochemical and other downstream exports to the US. So far, trade links between the US and Oman have remained relatively small, amounting to around USD 1bn in 2005, which amounts to a small proportion of the USD 70bn in trade between the US and the Middle East Region. In addition, Oman will also benefit in areas such as technical co-operation and project finance.