Our ongoing commitment to maintain our presence and grow our capabilities once the region turns out of recession remains undimmed. Our prudent management and continuing work on projects like the Al Raha Beach development will ensure we stay organisationally fit and ready for a recovery in activity. Our training and development programmes remain in place and we will continue with these activities in the region. We firmly believe that the Middle East has significant long- term opportunities - especially given our heritage, delivery track record and unique strength in the market. Abu Dhabi in particular has challenging and ambitious construction plans extending to 2030. The region possesses 40 per cent of the world's oil and gas reserves, making it a priority market for our business development activities over the coming period. Construction The undoubted highlight of the year was the testing, commissioning and handover of the extraordinary Atlantis Hotel, The Palm, Dubai, ahead of schedule and on budget. The official opening was a global media spectacular and a fitting showcase for our integrated construction capabilities in the region. Our joint venture company ALDAR Laing O'Rourke posted another good financial and operational performance, with significant progress made on the Al Raha Beach project. ALDAR is Abu Dhabi's largest property investment and development company, and we will continue to seek opportunities to partner with them to deliver future projects. Specialist businesses Crown House Technologies has a growing presence in the region and will receive continuing strategic focus, particularly in the energy sector. The market currently operates using traditional construction methodologies, with the mechanical and electrical ( M& E) components of a project delivered primarily by subcontractors. We are working hard to educate potential clients of the benefits of our Design for Manufacture and Assembly approach in the M& E phase, and remain confident that we will convert opportunities into secured work. One product, the bathroom pod, has already made notable inroads into the market. The Atlantis Hotel installed over 1,500 bathroom pods, and the business has an order placed for 5,000 more in Abu Dhabi. Our specialist joinery business has been operating in the region since 1984. It enjoyed another buoyant year and currently has a healthy order book with a high level of repeat custom. 02 Al Zeina, Al Raha Beach, Abu Dhabi, UAE Comprising a mixture of luxury apartments, villas and townhouses, Al Zeina is a residential development which sits at the heart of the exclusive Al Raha Beach development. Laing O'Rourke is the programme delivery partner responsible for managing construction of Al Zeina and the other precincts which comprise Al Raha Beach. 03 Dubai University Hospital, Dubai, UAE Laing O'Rourke is building University Hospital in Dubai, a new tertiary- care teaching hospital that will be a regional hub for world- class patient care and continuous learning. Scheduled for completion in 2011, the 400- bed medical centre was designed in collaboration with Harvard 03 Medical International. 02

Laing O'Rourke Annual Review 2009Operating review - Middle East and South Asia The lower level of activity in the region has reduced the demand for rebar products and plant. Select is in the process of transferring equipment back out of Dubai to areas of higher demand in our other international hubs. This process is a reversal of the mobilisation strategy Select employed in the region when the rate of demand was at its peak, highlighting the competitive advantage of Select's international coverage strategy, coupled with its ability to export plant and equipment rapidly overseas as required. Select has a continual- replacement programme and new purchases reflect the changing sectoral focus we are pursuing in the Middle East, targeting social infrastructure, energy, utilities and transport infrastructure work. For example, the business recently purchased rail equipment required for the North- South rail line project, in the Kingdom of Saudi Arabia. India The economic slowdown has not passed India by. There has been a significant reduction in real estate prices over the past year, which has impacted demand for construction services. Nevertheless, we continue to work on 15 schemes with our joint venture partner, but remain cautious over the medium term outlook. Outlook We remain committed to the region and view the strategic development of our presence across prioritised sectors in Abu Dhabi as a key goal. We will continue to tender for contracts with well- funded clients that offer appropriate growth opportunities, meet our earnings quality targets and are cash- positive in terms of their contracting arrangements. Additionally, we will continue to evaluate opportunities elsewhere in the UAE, particularly in programme management, leveraging our credentials from Al Raha Beach. Many of our Middle Eastern clients operate in multiple jurisdictions and we have established very strong contacts in the region over the last 30 years, which we continue to nurture and develop. Overall, despite the current challenges, we are confident the region offers good long- term prospects. We have the people, the client base, the delivery capabilities and the expertise to maximise opportunities as they present themselves. 01 Atlantis Hotel, The Palm, Dubai, UAE The prestigious Atlantis Hotel and Water Park was completed ahead of schedule in 2008. 01 46- 47