Page 1 of 6

QE Intra-Day Movement

Qatar Commentary

The QE Index rose 0.2% to close at 14,137.3. Gains were led by the Telecoms

and Banks & Financial Services indices, gaining 0.7% and 0.6%, respectively.

Top gainers were Qatar Oman Investment Co. and QNB Group, rising 3.7% and

1.8%, respectively. Among the top losers, Gulf International Services fell 1.1%,

while Qatar Insurance Co. declined 0.9%.

GCC Commentary

Saudi Arabia: The TASI Index fell 0.9% to close at 10,932.7. Losses were led by the Banks & Financial Services and Cement indices, falling 1.5% and 1.2%, respectively. Mubarrad declined 5.8%, while Al-Khodari fell 4.6%.

Dubai: The DFM Index gained 0.5% to close at 5,018.1. The Real Estate & Construction index rose 1.2%, while the Financial & Invest. Services index was up 1.0%. Commercial Bank of Dubai gained 4.8%, while Arabtec rose 3.7%.

Abu Dhabi: The ADX benchmark index fell 0.1% to close at 5,157.0. The Services index fell 4.9%, while the Insurance index declined 0.4%. Foodco Holding and National Marine Dredging Co. were down 10.0% each.

Kuwait: The KSE Index rose 0.6% to close at 7,544.1. The Oil & Gas index gained 2.3%, while the Technology index gained 1.1%. National Petroleum Services Co. rose 8.8%, while Jeeran Holding gained 8.1%.

Oman: The MSM Index fell 0.5% to close at 7,471.0. Financial index declined 1.0%, while the Services index was down 0.3%. Al Sharqia Investment Holding declined 2.8%, while Dhofar Cattle Feed fell 2.7%.

Bahrain: The BHB Index declined 0.1% to close at 1,466.2. The Commercial Banks index fell 0.2%, while the Services index was down 0.1%. Khaleeji Commercial Bank declined 2.0%, while Seef Properties was down 1.0%.

Qatar Exchange Top Gainers Close* 1D% Vol. ‘000 YTD%

Qatar Oman Investment Co. 18.43 3.7 1,353.0 47.2

QNB Group 209.00 1.8 240.2 21.5

Ooredoo 134.20 1.3 58.4 (2.2)

Doha Insurance Co. 35.40 1.1 74.0 41.6

Islamic Holding Group 108.50 1.1 137.7 135.9

Qatar Exchange Top Vol. Trades Close* 1D% Vol. ‘000 YTD%

Ezdan Holding Group 19.84 (0.2) 1,449.2 16.7

Qatar Oman Investment Co. 18.43 3.7 1,353.0 47.2

Qatar German Co for Medical Dev. 14.10 1.0 1,006.9 1.8

Mesaieed Petrochemical Hold. Co. 33.85 0.3 769.6 238.5

Mazaya Qatar Real Estate Dev. 24.60 0.6 641.4 120.0

Market Indicators 15 Sep 14 14 Sep 14 %Chg.

Value Traded (QR mn) 486.3 553.3 (12.1)

Exch. Market Cap. (QR mn) 751,418.0 748,454.9 0.4

Volume (mn) 10.9 12.1 (10.1)

Number of Transactions 6,048 6,089 (0.7)

Companies Traded 41 42 (2.4)

Market Breadth 24:11 20:19 –

Market Indices Close 1D% WTD% YTD% TTM P/E

Total Return 21,085.70 0.2 0.3 42.2 N/A

All Share Index 3,571.77 0.3 0.4 38.0 17.5

Banks 3,475.49 0.6 0.5 42.2 17.0

Industrials 4,691.92 (0.0) 0.1 34.1 19.0

Transportation 2,376.78 (0.0) (0.2) 27.9 15.2

Real Estate 2,977.94 0.0 (0.2) 52.5 15.9

Insurance 4,121.06 (0.5) (1.0) 76.4 13.0

Telecoms 1,690.27 0.7 2.0 16.3 23.9

Consumer 7,571.31 0.6 0.9 27.3 28.3

Al Rayan Islamic Index 4,787.68 0.0 0.4 57.7 20.6

GCC Top Gainers## Exchange Close# 1D% Vol. ‘000 YTD%

Com. Bank Of Dubai Dubai 6.50 4.8 10.0 50.8

IFA Hotels & Resorts Co. Kuwait 0.22 3.7 145.2 (21.4)

Arabtec Holding Co. Dubai 4.77 3.7 193,494.7 132.7

Ithmaar Bank Bahrain 0.17 3.1 370.0 (28.3)

Investbank Abu Dhabi 3.00 2.7 1.8 22.7

GCC Top Losers## Exchange Close# 1D% Vol. ‘000 YTD%

Nat. Marine Dredging Co. Abu Dhabi 6.75 (10.0) 0.6 (21.5)

Abu Dhabi National Hotels Abu Dhabi 2.93 (9.8) 1.3 (5.5)

Saudi Hollandi Bank Saudi Arabia 51.01 (3.3) 191.0 46.4

Bank Albilad Saudi Arabia 55.47 (3.2) 1,020.0 58.5

Kuwait International Bank Kuwait 0.32 (3.0) 3,662.3 8.5

Source: Bloomberg (# in Local Currency) (

## GCC Top gainers/losers derived from the Bloomberg GCC

200 Index comprising of the top 200 regional equities based on market capitalization and liquidity)

Qatar Exchange Top Losers Close* 1D% Vol. ‘000 YTD%

Gulf International Services 124.20 (1.1) 84.5 154.5

Qatar Insurance Co. 98.60 (0.9) 15.4 85.3

Vodafone Qatar 21.82 (0.8) 536.6 103.7

Ahli Bank 53.60 (0.7) 0.2 26.7

Qatar Navigation 97.30 (0.4) 41.5 17.2

Qatar Exchange Top Val. Trades Close* 1D% Val. ‘000 YTD%

QNB Group 209.00 1.8 49,966.8 21.5

Qatar International Islamic Bank 92.30 0.8 41,238.3 49.6

Ezdan Holding Group 19.84 (0.2) 28,762.9 16.7

Mesaieed Petrochemical Hold Co. 33.85 0.3 26,092.2 238.5

Industries Qatar 194.00 0.0 25,011.8 14.9

Source: Bloomberg (* in QR)

Regional Indices Close 1D% WTD% MTD% YTD% Exch. Val. Traded

($ mn) Exchange Mkt.

Cap. ($ mn) P/E** P/B**

Dividend Yield

Qatar* 14,137.33 0.2 0.3 4.0 36.2 133.56 206,339.4 17.7 2.3 3.6

Dubai

5,018.11 0.5 1.2 (0.9) 48.9 414.94 96,795.6 20.8 1.9 1.9

Abu Dhabi

5,156.99 (0.1) (0.4) 1.5 20.2 87.06 139,524.5 14.6 1.8 3.2

Saudi Arabia

10,932.73 (0.9) (1.2) (1.6) 28.1 2,634.53 592,883.9 21.0 2.7 2.6

Kuwait 7,544.08 0.6 0.7 1.5 (0.1) 118.10 113,255.0 18.9 1.2 3.6

Oman 7,471.03 (0.5) (1.0) 1.4 9.3 17.96 27,423.2 11.2 1.7 3.7

Bahrain 1,466.18 (0.1) (0.1) (0.4) 17.4 1.91 54,318.9 11.4 1.0 4.6

Source: Bloomberg, Qatar Exchange, Tadawul, Muscat Securities Exchange, Dubai Financial Market and Zawya (** TTM; * Value traded ($ mn) do not include special trades, if any)

14,060

14,080

14,100

14,120

14,140

14,160

9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00

Page 2 of 6

Qatar Market Commentary

The QE Index rose 0.2% to close at 14,137.3. The Telecoms and Banks & Financial Services indices led the gains. The index rose on the back of buying support from non-Qatari shareholders despite selling pressure from Qatari shareholders.

Qatar Oman Investment Co. and QNB Group were the top gainers, rising 3.7% and 1.8%, respectively. Among the top losers, Gulf International Services fell 1.1%, while Qatar Insurance Co. declined 0.9%.

Volume of shares traded on Monday fell by 10.1% to 10.9mn from 12.1mn on Sunday. Further, as compared to the 30-day moving average of 17.5mn, volume for the day was 37.6% lower. Ezdan Holding Group and Qatar Oman Investment Co. were the most active stocks, contributing 13.3% and 12.4% to the total volume respectively.

Source: Qatar Exchange (* as a % of traded value)

Ratings and Global Economic Data

Ratings Updates

Company Agency Market Type* Old Rating New Rating Rating Change Outlook Outlook Change

Kuwait Projects Company Holding (KIPCO)

Moody’s Kuwait LT IR/ST IR/DIR Baa3/P-3/

Baa3 Baa3/P-3/

Baa3 – Stable

Al Hilal Bank (AHB) Fitch Abu

Dhabi LT IDR/ST IDR/VR/SR/SUC

A+/ F1/bb-/1/A+

A+/ F1/bb/1/A+

Stable –

Source: News reports (* LT – Long Term, ST – Short Term, FSR- Financial Strength Rating, FCR – Foreign Credit Rating, LCR – Local Currency Rating, IDR – Issuer Default Rating, SR – Support Rating, LC – Local Currency, IR–Issuer Rating, DIR – Debt Instrument Ratings, SUC – Senior Unsecured Certificates)

Global Economic Data

Date Market Source Indicator Period Actual Consensus Previous

09/15 US Federal Reserve Industrial Production MoM August -0.10% 0.30% 0.40%

09/15 US Federal Reserve Capacity Utilization August 78.80% 79.30% 79.20%

09/15 US Federal Reserve Manufacturing (SIC) Production August -0.40% 0.10% 1.00%

09/15 EU Eurostat Trade Balance SA July 12.2B 15.5B 13.8B

09/15 EU Eurostat Trade Balance NSA July 21.2B – 16.8B

09/15 UK Rightmove Rightmove House Prices MoM September 0.90% – -2.90%

09/15 UK Rightmove Rightmove House Prices YoY September 7.90% – 5.30%

Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted

News

Qatar

QNBK acquires additional 11% stake in Ecobank for $283mn – QNB Group (QNBK) has acquired an additional

holding of 11.0% in Ecobank Transnational Incorporated (Ecobank). QNB Group’s total stake in Ecobank is now 23.5% (The two stakes include the current outstanding ordinary shares and the conversion of QNB’s convertible preference shares). The cost of this additional holding was equivalent to $283mn. The acquisition was funded through existing resources and QNBK will account for Ecobank as an Associate in accordance with International Financial Reporting Standards. QNB Capital and Morgan Stanley are acting as financial advisors to QNB in relation to this transaction. This enables QNB Group to become the largest shareholder whilst strengthening the partnership with Ecobank, a leading pan-African bank and is a fundamental step towards QNB’s strategy of being a MEA Icon by 2017. (QNB Group Press Release)

S&P to move Qatar, UAE stocks to emerging indices on September 22 – Ratings agency Standard & Poor's (S&P) said

S&P Dow Jones will move Greek stocks into emerging indices on September 22, while formally upgrading Qatar and the UAE from frontier indices to emerging markets. S&P's decision to re-classify the three countries as emerging markets was announced on October 2013, which came after similar moves by

rival index provider, MSCI. In November 2013, MSCI moved Greece to emerging markets from its developed indices and re-classified Qatar and the UAE as emerging markets at the end of May 2014. S&P said Greece and Qatar would carry weights of 0.8% and 0.9% of the S&P emerging markets BMI index, while the UAE would have 1.0%. (Reuters)

Qatar Re sees 60% jump in gross premiums to $550mn in 2014 – Qatar Re, a wholly-owned subsidiary of Qatar Insurance

Company (QATI), which is slated to become a global multi-line reinsurer, is expecting its gross premiums to grow more than 60% to $550mn by the end of 2014. The company is expanding into liability and facultative property lines of business and is growing its presence in the Americas and Asia. At present, agriculture, credit and surety, energy, marine, aviation and engineering businesses account for about a third of the company’s portfolio. Property (17%), motor liability (30%) and Lloyd’s third-party capacity (20%) complete the company’s well-diversified book of business. Geographically, Qatar Re has built a far more balanced portfolio. As of June 30, 2014, its European business accounted for more than 50% of the company’s portfolio, followed by the Americas (25%), Asia (17%), Africa (3%) and Oceania (3%). (Gulf-Times.com)

NDSQ hopes to double its workforce – Nakilat Damen

Shipyards Qatar’s (NDSQ) Managing Director Jan-Wim Dekker

Overall Activity Buy %* Sell %* Net (QR)

Qatari 62.54% 65.04% (12,124,101.23)

Non-Qatari 37.46% 34.96% 12,124,101.23

Page 3 of 6

stated the company hopes to double the number of its workers from 900 to about 1,800 in the coming years in order to cope with the expanding maritime industry in Qatar. According to Dekker, the company recently completed building new 22 vessels and has done 14 refits on its yards. NDSQ also built two 16-meter long mooring boats for towage operator Nakilat-SvitzerWijsmuller (NSW). These vessels will work on a long-term charter for Qatar Petroleum and will be part of the growing fleet of NSW vessels in the Port of Ras Laffan. (Gulf-Times.com)

Euromoney conference in November 2014 – Euromoney has

announced that its Third Euromoney Qatar Conference on the topic ‘Global Finance: Re-launched’ will take place from 24-25 November 2014. (Zawya)

International

Automotives weigh on US factory output; outlook still upbeat – The US manufacturing output fell for the first time in

seven months during August 2014, but the underlying trend remained consistent with a steadily expanding factory sector. That view was bolstered by other data published on September 15, which showed factory activity in New York State rising to its highest level in nearly five years. The Federal Reserve said factory production dropped 0.4% last month as motor vehicle production fell sharply, after surging in July. The drop, which followed a gain of 0.7% in July, went against economists' expectations for a 0.3% rise. Motor vehicle output declined 7.6% in August after a 9.3% jump in July. Excluding automobiles, manufacturing output gained 0.1% in August. So far in 3Q2014, factory production is running at a 4.6% annual pace, a sign that manufacturing will continue to support the overall economic growth. (Reuters)

OECD slashes growth forecasts, urges aggressive ECB action – The Organization for Economic Cooperation &

Development (OECD) slashed its growth forecasts for major developed economies on September 15, urging more aggressive stimulus by the European Central Bank (ECB) to ward off the risk of deflation in the Eurozone. The OECD’s call adds to growing pressure on the ECB to boost growth ahead of a meeting of finance ministers and central bankers from the Group of 20 countries later this week. Updating its growth forecasts for major developed economies, the OECD projected growth in the Eurozone at only 0.8% this year and rising only slightly next year to 1.1%. That marked a sizeable downgrade from its Economic Outlook for the Eurozone in May, when the organization forecast growth of 1.2% in 2014 and 1.7% in 2015. In comparison, the OECD saw the US economy growing 2.1% this year before accelerating to 3.1% in 2015. Meanwhile, the OECD slashed its growth forecast for Italy this year to -0.4% versus 0.5% growth forecast in May, a far sharper cut than for any other Group of Seven economy, leaving Italy alone in the negative territory. (Reuters)

Euro zone trade surplus rises in July on growing exports –

The European Union's Statistics office Eurostat’s data showed the trade surplus in the Eurozone rose year on year in July, as exports grew 3% YoY much faster than imports 1% YoY in 3Q2014. Eurostat said the non-seasonally adjusted external trade surplus of the 18 countries sharing the euro stood at €21.2bn in July, up from €18.0bn in July 2013. Adjusted for seasonal swings, exports edged 0.2% lower in July against June, while imports rose 0.9% MoM. The seasonally adjusted trade balance was a €12.2bn surplus, down from €13.8bn in June and €15.2bn in May. However, the trade deficit with Russia, Europe's main oil & gas supplier, rose slightly to €31.7bn in 1H2014 from €29.5bn in 1H2013, because

Eurozone’s exports to Russia tumbled 14% and the value of imports fell only 6%. (Reuters)

Paris, Beijing work to boost French Yuan investments –

Coinciding with a visit to Paris by Chinese Vice Premier Ma Kai, France announced that BNP Paribas Investment Partners and Carmignac have become the first French firms authorized to invest in China's mainland securities market via a RQFII license. The Bank of China was appointed as the Yuan clearing service in Paris and two French groups were awarded licenses for investing in China's mainland securities in a move to expand Yuan markets. Competition is fierce among Europe's major financial centers to trade in China's currency, the Chinese Yuan, (Renminbi) with Paris battling Frankfurt and London to capitalize on China's growing financial clout. Launched in 2011, the Renminbi Qualified Foreign Institutional Investor (RQFII) scheme allows financial institutions to use offshore Yuan to invest in mainland stock, bond and money market instruments. RQFII is one of the very few channels through which foreigners can tap into these markets. (Reuters)

China's fiscal spending growth eases in August – According

to the data from the Ministry of Finance, China's fiscal spending expenditure growth eased to 6.2% YoY in August, reflecting the government's efforts to reduce spending after a surge in previous months. Spending growth decelerated after a rise of 9.6% in July and gains of 26.1% and 24.6% in June and May respectively. Of the total CNY9.0tn of government spending in the first eight months, money disbursed on public housing projects grew the most, up 28.3% YoY to CNY294.5bn. Expenditure on the transportation sector rose 24.2% to CNY624.1bn, while spending on grain & oil reserves grew 22.1% to CNY124.2bn. Beijing has unveiled a slew of targeted measures since April 2014 to help shore up the economy, including accelerating construction of some infrastructure projects and increasing bank lending. (Reuters)

Regional

Rezaik Abdallah Al-Gedrawi to construct 1,340 apartments in KAEC – Rezaik Abdallah Al-Gedrawi Company has signed

two contracts with King Abdullah Economic City (KAEC) for the construction of 1,340 residential apartments and associated infrastructure in the first phase of Al-Shurooq District worth SR400mn, along with the infrastructure works at Al-Talah Gardens 3 worth SR135mn. (GulfBase.com)

First Saudi all-female business process service centre opens – Saudi Aramco, General Electric Company and Tata

Consultancy Services have jointly inaugurated Saudi Arabia’s first all-female business process service center. The Riyadh-based center, which is supported by the Human Resources Development Fund Program, complements Saudi Arabia's localization targets, and strengthens local job creation and economic diversification. The 3,200 square meter facility will create up to 3,000 local jobs for Saudi women within the next three years. (GulfBase.com)

Saudi fund to buy POSCO unit stake – Korea Economic Daily

has reported that South Korean steelmaker POSCO is planning to sell about 30-40% stake in Posco Engineering & Construction to an unidentified Saudi Arabian sovereign wealth fund in a deal worth nearly $966.28mn. (GulfBase.com)

ACSA commences operations – Alpen Capital Saudi Arabia

(ACSA) has been licensed by the Saudi Capital Markets Authority (Saudi CMA) to commence operations. The company has established its first office in Riyadh and will provide conventional and Shari’ah-based corporate finance advisory services to clients including high net-worth individuals and

Page 4 of 6

institutional clients across Saudi Arabia and the GCC region. In addition, ACSA will provide opportunities for international and regional investors to invest in Saudi Arabia. (GulfBase.com)

Saudi industrial units receive SR1.01tn loans – According to

Arab News report, government-run financing agencies in Saudi Arabia have distributed loans worth SR1.01tn to 6,751 industrial firms so far. These loans were distributed under 23 industrial categories to companies employing a total of 905,400 workers. The companies dealing in the petrochemical and chemical products were the biggest beneficiaries, netting loans worth SR459bn (45.3% of total amount), followed by coke & refined oil products, non-metallic mineral products, basic metals, and food & beverages. (GulfBase.com)

Vela vessel transferred to Bahri's ownership – The National

Shipping Company of Saudi Arabia (Bahri) announced that ‘Sirius Star’, a VLCC vessel in the Vela fleet, has been transferred to Bahri's ownership on September 15, 2014 for a cash consideration of SR323.7mn. The ship’s name has been changed to ‘Manifah’. The remaining Vela vessels shall be transferred to Bahri on a staggered basis as per the vessel delivery schedule, which is expected to be completed by the end of 2014. (Tadawul)

RSH shareholders to approve Sukuk issuance – Red Sea

Housing Services Company’s (RSH) board of directors has invited the company’s shareholders to attend an extraordinary general assembly meeting (EGM) to be held on October 19, 2014 for approving the issuance of Sukuk in compliance with Shari’ah principles. Additionally, EGM will also discuss approving the conclusion of an agreement with Saleh Mohammed Binladin in the amount of SR883,390 annually against the 3-years lease of a property in Rabigh to construct a labor camp for GS Engineering Company, which will expire in 2015, once the EGM approves his appointment as such is considered related party transaction. There are no specific conditions under this agreement. (Tadawul)

HSBC appoints acting CEO for Saudi Arabia – HSBC

Holdings has appointed Deputy Chief Executive and Chief Operating Officer for Saudi Arabia Nabeel Shoaib as the acting CEO, following the exit of the current CEO, Walid Khoury. (Bloomberg)

Musharaka Capital gets CMA approval to offer fund – The

Saudi CMA’s Board of Commissioners has given approval to Musharaka Capital Company to offer Musharaka IPO Fund. (Tadawul)

UAE money supply aggregate M0 up 6.3% to AED72.1bn in July 2014 – The Central Bank of the UAE announced that the

money supply aggregate M0 increased by 6.3% from AED67.8bn at the end of June 2014 to AED72.1bn at the end of July 2014. However, the money supply aggregate M1 decreased by 0.2% from AED434.3bn in June 2014 to AED433.6bn in July 2014. Similarly, the money supply aggregate M2 comprising M1 and quasi-monetary deposits decreased by 1.2% from AED1.14tn in June 2014 to AED1.13tn in July 2014. The money supply aggregate, M3, rose by 0.7% from AED1.33tn in June 2014 to AED1.34tn in July 2014. The total bank assets improved by 0.1% during July 2014 to reach AED2.24tn, while the total bank loans & advances improved by 0.8% reaching AED1.34tn. (GulfBase.com)

ENR: UAE registers loan growth of 7.1% YoY in July 2014 –

According to Emirates NBD Research (ENR), lending in UAE grew by AED11.0bn (0.8% MoM) in July 2014, with annual loan growth at 7.1% YoY. Deposits in the UAE banking system increased by just AED 4.6bn (0.3% MoM) in July 2014.

Residents’ deposits increased by AED8.8bn in July 2014, which points to an outflow of non-residents’ deposits of AED4.2bn during the month. Nevertheless, the annual growth in deposits accelerated to 12.1% YoY in July from 11.5% YoY in June 2014. Consequently, the loan to deposit ratio increased slightly to 95.4% in July 2014 from 95.0% in June 2014. Government deposits increased 12.3% MoM in July 2014, but were still nearly 16% YoY. While government deposits are quite volatile on a monthly basis, the trend since April has been higher; government deposits grew an average of 7.8% MoM between April 2014 and July 2014, compared with average MoM decline of 1.3% in 1Q2014. (GulfBase.com)

Fujairah terminal gets ISO accreditation – Gulf Petrochem’s

Fujairah terminal has been awarded with ISO certification for its quality, occupational health, safety and environmental policies. (GulfBase.com)

Ajman plans AED2.1bn international airport – The UAE’s

smallest Emirate Ajman is set to develop a new international airport with an investment of AED2.1bn to help support its future plans for boosting economy and tourism. When completed, the new Ajman International Airport is expected to handle around one million passengers a year. To be constructed in the Al Manama area of Ajman, the airport will be an eco-friendly project in implementation of the Ajman Vision 2021. It is expected to be launched in 2018, and will include arrival and departure lounges, hangars and cargo handling buildings. (GulfBase.com)

FANR gives nod for ENEC’s two new nuclear reactors – The

UAE’s Federal Authority for Nuclear Regulation (FANR) has authorized the Emirates Nuclear Energy Corporation (ENEC) to begin building two additional nuclear power reactors. The license to construct the third and fourth reactors at the Barakah site in the Western Region of the Abu Dhabi emirate was approved by the FANR board of management. ENEC will construct two Korean-designed, advanced pressurized water reactors, each capable of producing 1,400 megawatts of electricity. The license permits ENEC to construct the reactors but ENEC must apply for a separate operating license before it can begin to operate them. (Bloomberg)

DIB boosts 2014 loan growth forecasts; to raise stake in Bank Panin Syariah – Dubai Islamic Bank (DIB) has raised

loan growth forecasts for 2014 as it increases its corporate and real estate businesses amid the fastest economic expansion in the lender’s home market for at least seven years. DIB’s CEO, Adnan Chilwan said lending is expected to grow 15-20% in 2014, more than the 10-15% it had previously forecasted. As Dubai’s economy expands, the state-controlled lender is focusing on all business lines including corporate and commercial real estate. Adnan further added that the company will continue to expand to take advantage of the emirate’s buoyant property market, while keeping its proportion of total lending at about 25%. Meanwhile, DIB has submitted a proposal to the Indonesian Financial Services Authority to increase its stake in Bank Panin Syariah to 40% from 24.9% currently. (Bloomberg, Reuters)

Omniyat set to unveil 3 mega-projects worth over AED3.5bn – Omniyat is planning to launch three mega-projects worth

AED3.5bn during the upcoming property show, Cityscape Global 2014, in Dubai. The event is scheduled to be held from September 21, 2014 to September 23, 2014 at the Dubai International Convention & Exhibition Centre. Omniyat prime showpiece at the event will be ‘One at Palm Jumeirah’, a landmark joint project in collaboration with Drake & Scull

Page 5 of 6

International (DSI); while the other two prestigious projects will be located on prime plots in Dubai. (GulfBase.com)

Dubai's Atlantis resort to get $1.4bn expansion – Investment

Corporation of Dubai and Kerzner International Holdings said they will build a $1.4bn expanse of lavish suites and residences next to the famed Atlantis resort on Dubai's man-made palm-shaped island as part of the emirate's drive to build up tourism revenue. The Royal Atlantis Resort and Residences will feature modern architecture that allows for sky-high gardens and private infinity pools overlooking the island and water. There will also be 250 luxury residences in the resort. (Bloomberg)

Emaar says first tranche of malls IPO already covered –

Emaar Properties said institutional investors have committed to buying all the shares offered to them in the flotation of its shopping malls business only a day after the initial public offering (IPO) was launched. Emaar, in a brief statement to the Dubai bourse, said it had received sufficient orders to cover the entire tranche allocated to the qualified institutional investors at all prices within the range of AED2.50-2.90 per share. (Reuters)

SCAD: Abu Dhabi’s cost of living goes up by 2.9% –

According to data released by Statistics Centre - Abu Dhabi (SCAD), Abu Dhabi’s inflation rate in consumer prices for the first eight months of 2014 was 2.9%. The consumer price index (CPI) rose to 127.4 points during the first eight months of 2014, up from 123.8 points during the same period of 2013. CPI increased by 3.5% YoY and 0.5% MoM in August 2014. The most significant groups, which experienced YoY increases in prices during August 2014 were Furnishings, household equipment & routine household maintenance (13.0%) followed by Miscellaneous goods & services (5.2%), Alcoholic beverages & tobacco (6.4%), Housing, water, electricity, gas & other fuels with 4.4%, and Restaurants & hotels with 4.2%. (GulfBase.com)

Orpic plans 3-week turnaround at refinery – Oman Oil

Refineries and Petroleum Industries Company (Orpic) plans a scheduled turnaround work at its 106,000 barrels per day Mina al-Fahal refinery in November 2014 for three weeks. (GulfBase.com)

Turkiye Finans to establish in Bahrain – Turkiye Finans

Katilim Bankasi, Turkey-based Islamic lender, is planning to establish a presence in Bahrain. The move would help rekindle Bahrain's Islamic banking sector, which includes six retail banks and 18 wholesale banks. As of June 2014, they held a combined $24.6bn in assets, a 5.2% YoY. Saudi Arabia's National Commercial Bank is the largest shareholder in Turkiye Finans. (GulfBase.com)

CBB treasury bills oversubscribed – Central Bank of Bahrain

(CBB) announced that BHD45mn issue of Government Treasury Bills has been oversubscribed by 209%. The bills, carrying a maturity of 91 days, are issued by the CBB, on behalf of the Kingdom of Bahrain. The issue date of the bills is September 17, 2014 and the maturity date is December 17, 2014. The weighted average rate of interest is 0.69%, compared to 0.70%, for the previous issue on September 10, 2014. (GulfBase.com)

GDN: Bahrain mulls new laws to boost property market –

According to Gulf Daily News (GDN), Bahrain government aims to introduce new laws to encourage real estate expansion and possibly revive stalled projects across the kingdom. The cabinet discussed ways to boost Bahrain's real estate sector and also improve the investment environment. (GulfBase.com)

ICAEW: Bahrain-GCC links contribute to trade growth –

ICAEW, a global organization of chartered accountants, in its latest ‘Economic Insight: Middle East Q3 2014’ report, said, Bahrain’s deeper links that it has established with other

economies in the region has been a substantial contributor to Bahrain’s trade growth over the past decade. According to the report, Bahrain’s total goods exports growth over the period was accounted in exports to other regional countries. However, Bahrain will face more competition from its GCC neighbors over the next four years as they race to increase their freight and passenger capacity in a bid to encourage more cross-border trade. Currently, Bahrain is the fourth most open trade market in the GCC, scoring 79% on the Heritage Foundation’s Trade Freedom Index, ahead of Saudi Arabia and Kuwait. The report further found that government consumption and infrastructure developments should support growth in Bahrain of around 3.8% in 2014, with similar levels expected for 2015-16. GCC nations plan to invest a massive $134bn in transformative railway infrastructure, with Saudi Arabia, Qatar and the UAE leading the charge with investment plans worth $45bn, $37bn and $22bn respectively. Bahrain’s $7.9bn rail plans are comparatively smaller, with only Kuwait set to invest less than the kingdom. (GulfBase.com)

Contacts

Saugata Sarkar Abdullah Amin, CFA Shahan Keushgerian

Head of Research Senior Research Analyst Senior Research Analyst

Tel: (+974) 4476 6534 Tel: (+974) 4476 6569 Tel: (+974) 4476 6509

saugata.sarkar@qnbfs.com.qa abdullah.amin@qnbfs.com.qa shahan.keushgerian@qnbfs.com.qa

Sahbi Kasraoui Ahmed Al-Khoudary QNB Financial Services SPC

Manager – HNWI Head of Sales Trading – Institutional Contact Center: (+974) 4476 6666

Tel: (+974) 4476 6544 Tel: (+974) 4476 6548 PO Box 24025 sahbi.alkasraoui@qnbfs.com.qa ahmed.alkhoudary@qnbfs.com.qa Doha, Qatar

DISCLAIMER: This publication has been prepared by QNB Financial Services SPC (“QNBFS”) a wholly-owned subsidiary of Qatar National Bank (“QNB”). QNBFS is regulated by the Qatar Financial Markets Authority and the Qatar Exchange; QNB is regulated by the Qatar Central Bank. This publication expresses the views and opinions of QNBFS at a given time only. It is not an offer, promotion or recommendation to buy or sell securities or other investments, nor is it intended to constitute legal, tax, accounting, or financial advice. We therefore strongly advise potential investors to seek independent professional advice before making any investment decision. Although the information in this report has been obtained from sources that QNBFS believes to be reliable, we have not independently verified such information and it may not be accurate or complete. While this publication has been prepared with the utmost degree of care by our analysts, QNBFS does not make any representations or warranties as to the accuracy and completeness of the information it may contain, and declines any liability in that respect. QNBFS reserves the right to amend the views and opinions expressed in this publication at any time. It may also express viewpoints or make investment decisions that differ significantly from, or even contradict, the views and opinions included in this report.

COPYRIGHT: No part of this document may be reproduced without the explicit written permission of QNBFS. Page 6 of 6

Rebased Performance Daily Index Performance

Source: Bloomberg Source: Bloomberg

Source: Bloomberg Source: Bloomberg, *$ adjusted returns, (# Market closed on September 15)

80.090.0

100.0110.0120.0130.0140.0150.0160.0170.0180.0190.0200.0210.0

Aug-10 Aug-11 Aug-12 Aug-13 Aug-14

QE Index S&P Pan Arab S&P GCC

(0.9%)

0.2%

0.6%

(0.1%)

(0.5%)

(0.1%)

0.5%

(1.2%)

(0.6%)

0.0%

0.6%

1.2%

Saud

i Ara

bia

Qata

r

Kuw

ait

Bah

rain

Om

an

Abu D

habi

Dubai

Asset/Currency Performance Close ($) 1D% WTD% YTD%

Global Indices Performance Close 1D%* WTD%* YTD%*

Gold/Ounce 1,233.28 0.3 0.3 2.3 DJ Industrial 17,031.14 0.3 0.3 2.7

Silver/Ounce 18.68 0.2 0.2 (4.1) S&P 500 1,984.13 (0.1) (0.1) 7.3

Crude Oil (Brent)/Barrel (FM Future)

96.65 (0.5) (0.5) (12.8) NASDAQ 100 4,518.90 (1.1) (1.1) 8.2

Natural Gas (Henry Hub)/MMBtu

3.91 2.7 2.7 (10.0) STOXX 600 343.91 (0.4) (0.4) (1.7)

LPG Propane (Arab Gulf)/Ton 110.00 1.6 1.6 (13.0) DAX 9,659.63 (0.2) (0.2) (5.2)

LPG Butane (Arab Gulf)/Ton 125.25 0.2 0.2 (7.7) FTSE 100 6,804.21 (0.3) (0.3) (1.3)

Euro 1.29 (0.2) (0.2) (5.8) CAC 40 4,428.63 (0.62) (0.6) (3.3)

Yen 107.19 (0.1) (0.1) 1.8 Nikkei# 15,948.29 0.0 0.0 (4.0)

GBP 1.62 (0.2) (0.2) (2.0) MSCI EM 1,055.78 (0.5) (0.5) 5.3

CHF 1.07 (0.2) (0.2) (4.5) SHANGHAI SE Composite 2,339.14 0.2 0.2 8.9

AUD 0.90 (0.1) (0.1) 1.2 HANG SENG 24,356.99 (1.0) (1.0) 4.5

USD Index 84.26 0.0 0.0 5.3 BSE SENSEX 26,816.56 (1.1) (1.1) 28.2

RUB 38.33 1.5 1.5 16.6 Bovespa 57,948.76 0.9 0.9 13.1

BRL 0.43 (0.0) (0.0) 1.0 RTS 1,194.73 (1.5) (1.5) (17.2)

203.1

167.6

150.5