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QE Intra-Day Movement

Qatar Commentary

The QE Index rose marginally close at 14,137.7. Gains were led by the

Telecoms and Insurance indices, gaining 0.5% each. Top gainers were Islamic

Holding Group and Qatar National Cement Co., rising 5.3% and 2.5%,

respectively. Among the top losers, QNB Group fell 1.9%, while Ezdan Holding

Group declined 1.7%.

GCC Commentary

Saudi Arabia: The TASI Index rose 0.6% to close at 10,993.4. Gains were led by the Agriculture & Food Ind. and Transport indices, rising 1.5% and 1.1%, respectively. AXA Coop. Ins. gained 6.2%, while Al Rajhi Takaful was up 5.1%.

Dubai: The DFM Index declined 0.7% to close at 4,984.9. The Financial Ser. & Inv. index fell 2.2%, while the Real Estate & Const. index was down 1.2%. Arab Insurance declined 10.0%, while National Industries was down 7.5%.

Abu Dhabi: The ADX benchmark index fell 0.1% to close at 5,149.6. The Energy index fell 3.5%, while the Industrial index declined 2.0%. Int. Fish Farming fell 9.6%, while National Bank of Umm Al-Qaiwain was down 7.4%.

Kuwait: The KSE Index rose 0.4% to close at 7,572.7. The Financial Services index gained 1.0%, while the Telecommunication index was up 0.6%. Housing Finance Co. rose 10.6%, while Zima Holding Co. gained 7.3%.

Oman: The MSM Index rose 0.2% to close at 7,488.5. Gains were led by the Financial and Industrial indices rising 0.4% and 0.1%, respectively. Al Anwar Holding rose 3.2%, while HSBC Bank Oman was up 1.7%.

Bahrain: The BHB Index gained 0.2% to close at 1,468.8. The Industrial index rose 1.8%, while the Commercial Bank index was up 0.4%. Ithmaar Bank gained 3.0%, while Aluminium Bahrain was up 1.8%.

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

Islamic Holding Group 114.20 5.3 265.9 148.3

Qatar National Cement Co. 146.50 2.5 47.3 23.1

Qatar International Islamic Bank 94.00 1.8 1,019.1 52.4

Qatar General Ins. and Reins. Co. 47.70 1.5 32.6 19.5

Doha Insurance Co. 35.90 1.4 11.4 43.6

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

Ezdan Holding Group 19.50 (1.7) 3,371.9 14.7

Vodafone Qatar 22.11 1.3 2,873.7 106.4

Salam International Investment Co. 20.43 1.2 2,325.6 57.0

Masraf Al Rayan 56.60 0.5 1,882.9 80.8

Qatar Oman Investment Co. 18.60 0.9 1,752.5 48.6

Market Indicators 16 Sep 14 15 Sep 14 %Chg.

Value Traded (QR mn) 866.5 486.3 78.2

Exch. Market Cap. (QR mn) 749,349.4 751,418.0 (0.3)

Volume (mn) 19.6 10.9 79.8

Number of Transactions 8,412 6,048 39.1

Companies Traded 41 41 0.0

Market Breadth 23:15 24:11 –

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

Total Return 21,086.20 0.0 0.3 42.2 N//A

All Share Index 3,569.92 (0.1) 0.3 38.0 17.5

Banks 3,461.00 (0.4) 0.1 41.6 16.9

Industrials 4,703.12 0.2 0.3 34.4 19.1

Transportation 2,373.42 (0.1) (0.4) 27.7 15.2

Real Estate 2,980.74 0.1 (0.1) 52.6 15.9

Insurance 4,140.20 0.5 (0.6) 77.2 13.1

Telecoms 1,698.94 0.5 2.5 16.9 24.1

Consumer 7,593.19 0.3 1.2 27.7 28.4

Al Rayan Islamic Index 4,809.05 0.4 0.8 58.4 20.7

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

Abu Dhabi National Hotels Abu Dhabi 3.10 5.8 130.0 0.0

Dar Al Arkan Real Estate Saudi Arabia 14.78 4.7 78,194.7 50.1

Mediterranean & Gulf Ins. Saudi Arabia 58.43 4.1 1,061.3 67.4

Northern Region Cement Saudi Arabia 28.00 3.7 6,097.5 21.0

Ithmaar Bank Bahrain 0.17 3.0 215.0 (26.1)

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

NBQ Abu Dhabi 3.24 (7.4) 125.0 (1.8)

Dana Gas Abu Dhabi 0.66 (5.7) 33,253.5 (27.5)

Dubai Investments Dubai 3.61 (2.7) 12,853.8 55.1

Union National Bank Abu Dhabi 6.70 (2.6) 636.4 19.8

Advanced Petrochem. Co. Saudi Arabia 57.49 (2.1) 1,092.1 40.9

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%

QNB Group 205.10 (1.9) 298.4 19.2

Ezdan Holding Group 19.50 (1.7) 3,371.9 14.7

Aamal Co. 16.15 (1.5) 42.6 7.7

Al Meera Consumer Goods Co. 187.50 (0.8) 37.3 40.7

Gulf Warehousing Co. 52.60 (0.6) 52.3 26.7

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

Masraf Al Rayan 56.60 0.5 107,194.8 80.8

Qatar International Islamic Bank 94.00 1.8 95,637.0 52.4

Ezdan Holding Group 19.50 (1.7) 66,211.6 14.7

Vodafone Qatar 22.11 1.3 63,607.7 106.4

QNB Group 205.10 (1.9) 62,422.9 19.2

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* 14,137.67 0.0 0.3 4.0 36.2 237.95 205,771.3 17.7 2.3 3.6

Dubai

4,984.92 (0.7) 0.5 (1.5) 47.9 344.16 96,166.4 20.7 1.8 1.9

Abu Dhabi

5,149.58 (0.1) (0.6) 1.3 20.0 72.38 139,430.0 14.6 1.8 3.2

Saudi Arabia

10,993.35 0.6 (0.6) (1.1) 28.8 2,289.96 596,783.2 21.1 2.7 2.6

Kuwait 7,572.68 0.4 1.1 1.9 0.3 133.12 113,564.5 19.0 1.2 3.6

Oman 7,488.47 0.2 (0.7) 1.6 9.6 19.71 27,445.3 11.3 1.7 3.7

Bahrain 1,468.84 0.2 0.1 (0.2) 17.6 12.25 54,359.3 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)

14,120

14,140

14,160

14,180

14,200

14,220

14,240

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

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Qatar Market Commentary

The QE Index rose marginally close at 14,137.7. The Telecoms and Insurance indices led the gains. The index rose on the back of buying support from non-Qatari shareholders despite selling pressure from Qatari shareholders.

Islamic Holding Group and Qatar National Cement Co. were the top gainers, rising 5.3% and 2.5%, respectively. Among the top losers, QNB Group fell 1.9%, while Ezdan Holding Group declined 1.7%.

Volume of shares traded on Tuesday rose by 79.8% to 19.6mn from 10.9mn on Monday. Further, as compared to the 30-day moving average of 17.0mn, volume for the day was 15.0% higher. Ezdan Holding Group and Vodafone Qatar were the most active stocks, contributing 17.2% and 14.7% to the total volume respectively.

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

Global Economic Data

Global Economic Data

Date Market Source Indicator Period Actual Consensus Previous

09/16 US Bureau of Labor Stat. PPI Final Demand MoM August 0.00% 0.00% 0.10%

09/16 US Bureau of Labor Stat. PPI Ex Food and Energy MoM August 0.10% 0.10% 0.20%

09/16 US Bureau of Labor Stat. PPI Final Demand YoY August 1.80% 1.80% 1.70%

09/16 US Bureau of Labor Stat. PPI Ex Food and Energy YoY August 1.80% 1.80% 1.60%

09/16 EU Eurostat Labour Costs YoY 2Q2014 1.20% – 0.90%

09/16 Germany ZEW ZEW Survey Current Situation September 25.4 40.0 44.3

09/16 Germany ZEW ZEW Survey Expectations September 6.9 5.0 8.6

09/16 UK ONS CPI MoM August 0.40% 0.40% -0.30%

09/16 UK ONS CPI YoY August 1.50% 1.50% 1.60%

09/16 UK ONS CPI Core YoY August 1.90% 1.80% 1.80%

09/16 UK ONS Retail Price Index August 257.0 256.9 256.0

09/16 UK ONS RPI MoM August 0.40% 0.40% -0.10%

09/16 UK ONS RPI YoY August 2.40% 2.40% 2.50%

09/16 UK ONS RPI Ex Mort Int.Payments (YoY) August 2.50% 2.50% 2.60%

09/16 UK ONS PPI Input NSA MoM August -0.60% -0.40% -1.60%

09/16 UK ONS PPI Input NSA YoY August -7.20% -6.80% -7.30%

09/16 UK ONS PPI Output NSA MoM August -0.10% -0.10% -0.10%

09/16 UK ONS PPI Output NSA YoY August -0.30% -0.20% -0.10%

09/16 UK ONS PPI Output Core NSA MoM August 0.10% 0.00% 0.00%

09/16 UK ONS PPI Output Core NSA YoY August 0.90% 0.90% 0.90%

09/16 UK ONS ONS House Price YoY July 11.70% – 10.20%

09/16 Spain INE Labour Costs YoY 2Q2014 -0.10% – -0.20%

09/16 China National Bureau of Stat. Foreign Direct Investment YoY August -14.00% 0.80% -16.90%

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

News

Qatar

GDI signs QR825mn rig deal with Keppel FELS – Gulf Drilling

International (GDI), a wholly-owned subsidiary of Gulf International Services (GISS), has signed a construction pact with Singapore-based Keppel FELS for a new jack-up drilling rig ‘Halul’ at an estimated cost of QR825mn. The new jack-up drilling rig is scheduled for delivery in 1Q2016. Halul will have accommodation facilities for 150 persons and a cantilever outreach of 70 feet and be rated for 300 feet water depth and a drilling depth of 30,000 feet. The rig will be enabled by an offline stand building and comes equipped with all the features, facilities and equipment. Halul will become the fifth KFELS B Class designed rig in GDI’s fleet. Upon delivery in 2016, it will join Qatar Petroleum’s offshore operation as the fourth jack-up rig supplied by GDI. (Gulf-Base.com)

MARK transfers ownership of Al Rayan Partners – Masraf Al

Rayan (MARK) announced to its shareholders that the process of transferring the ownership of Al Rayan Partners company from Al Rayan Investment LLC to be owned by MARK has been completed in accordance with the MARK’s Board Decision and its plan to restructure its group companies. MARK’s Board of Directors saw it suitable that Al Rayan Investment (which is fully owned by MARK) to focus on its core business: investment and financial advisory activities. Accordingly, the decision was made to transfer the ownership of Al Rayan Partners to MARK, where its engineering department will manage Al Rayan Partners operations as it has the expertise. Meanwhile, MARK’s management is also studying the potential to convert the ownership of its share in Linc Facility Services company to the ownership of Al Rayan Partners due to the similar nature of their activities. (QE)

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

Qatari 67.76% 70.59% (24,475,682.81)

Non-Qatari 32.23% 29.41% 24,475,682.81

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QIF announces 22% returns to shareholders – Qatar

Investment Fund (QIF), the London-listed fund established to invest in opportunities in Qatar and the GCC region, has announced about 22% returns to its shareholders for the year ended June 30, 2014. The fund’s net asset value growth compares with 23.9% rise in the Qatari stock market and 11.7% in the MSCI Emerging Markets Index. QIF’s Chairman Nick Wilson said that the Qatari economy continues to forge ahead with encouraging growth in the non-hydrocarbon Qatari economy, supportive demographics, and expansionary fiscal spending. The board has proposed to pay a raised dividend of 3.5 cents per ordinary share (3.2 cents per share in 2013). (Gulf-Times.com)

Ooredoo Kuwait cuts jobs – Ooredoo Kuwait has cut 165 jobs

as its market share shrinks and profits fall. The job losses account for about 15% of its workforce. The company has struggled in its home market in Kuwait following the launch of the country's third mobile operator, Viva Kuwait, in 2008 which aggressively cut prices to woo customers. (Reuters)

HIA sees 2.16mn passengers in July – Hamad International

Airport (HIA) has witnessed about 2.16mn passengers departing, transferring or arriving into Qatar in July 2014. Qatar’s new gateway saw an 11.36% passenger increase in July 2014 as compared to July 2013. Cargo numbers have also increased at HIA with an additional 12.76% traffic in July 2014. All cargo operations are now operating out of the new airport where the facility is fully automated, creating a seamless experience for both the cargo agents and customers. (Gulf-Times.com)

Hilton plans largest Middle East resort in Qatar – According

to the Hilton Hotels & Resorts’ Global Head Rob Palleschi, the hotel chain is planning to build the largest resort in the Middle East in Qatar. The resort will be located at Salwa beach in Qatar and occupy 257 acres of the coast. Hilton Worldwide is planning develop this large resort with investment from Al-Rayyan Hospitality. The proposed Hilton Salwa Beach Resort & Villas is set to be based 97 kilometers from the capital city of Doha, with extensive facilities surrounding it. In addition to docks for 362 boats, the 104 hectares resort will host a water park, a yacht club, luxury marina, dive center and commercial space. (Bloomberg)

KPMG: Family businesses could benefit from investment from HNWIs – According to a survey by KPMG International,

about four-fifths of Middle-Eastern businesses are seeking external finance, while three in five have previously offered equity in their business to external investors. As per the survey, 58% of family businesses globally are seeking external financing to fund their investment plans, but it is challenging to find the right strategic investment partner. This is not the case in Qatar, where there are banks that are willing to lend to family businesses. However, the survey identifies that high net worth individuals (HNWIs) are an untapped resource in the region. (Peninsula Qatar)

Airbus A380 delivered to QA – The first Airbus A380 aircraft

has been delivered to Qatar Airways (QA) during a ceremony in Hamburg, Germany. QA is set to receive four Airbus A380s by the end of 2014. (Gulf-Times.com)

International

American incomes still stagnant after recession; weak gasoline, food prices dampen producer inflation – A report

from the US Census Bureau showed the country's median household income edged up just $180 in 2013 to $51,939, a gain deemed statistically insignificant. Income at the median level, meaning half the country earned more and half earned

less, has declined nearly $5,000 since 2007 when the nation fell into a deep downturn. These figures indicate the reason why many Americans think the US remains in recession and why President Barack Obama's approval ratings have hovered near 40%. Obama took office a few months before the recession ended in June 2009, and a frustratingly slow economic recovery has vexed his presidency and could weigh on his Democratic Party in November's Congressional elections. The US Congress and the White House raised taxes on most Americans in 2013, while cutting back government spending, which was a major factor holding back economic growth. Meanwhile, US producer prices were flat in August, pointing to muted inflation pressures that should allow the Federal Reserve to bid its time for raising interest rates. The Labor Department said falling gasoline and food prices have restrained its producer price index for final demand in August. Prices received by the nation's farms, factories and refineries had edged up 0.1% in July. (Reuters)

ECB invites banks to tap new funds for business lending –

The European Central Bank (ECB) invited banks to bid for a fresh round of long-term loans, which it hopes will stimulate lending to businesses and reinvigorate the Eurozone economy. The program is a key plank of the ECB’s efforts to stave off the threat of deflation and breathe life into the Eurozone economy, which stagnated in 2Q2014. At 0.3%, inflation is running well below the ECB target of just under 2%. The ECB will announce how much it is granting banks in new loans on September 18, doling out the fresh cash just as the cheap three-year long-term loans that it issued in late 2011 and early 2012 approach expiry. The new targeted funds will also offer banks long-term funding at interest rates close to zero, but will be tied to lending to smaller firms that are the Eurozone's economic backbone. Analysts are skeptical this operation will boost lending and expect to see only modest take-up. (Reuters)

ONS: UK inflation slips back, house price growth hits seven-year high – The Office for National Statistics (ONS) said

inflation in the UK edged down last month, but the house price growth surged in July at the fastest annual pace since in seven years. ONS said consumer prices rose 1.5% on the year in August, the lowest increase since May, compared with 1.6% in July. The ONS said compared with July, the consumer price index in August was up 0.4%. The data is unlikely to shift expectations among economists that the Bank of England (BoE) will keep interest rates on hold until around 2Q2015. The BoE Governor Mark Carney said the central bank may begin raising interest rates next spring if the labor market continues to recover from the financial crisis. Another set of data from the ONS showed house prices in Britain rose 11.7% in the year to July. Other surveys since then have suggested the rapid pace of house price growth has started to cool. In London, which led the surging house price growth earlier this year, property prices rose 19.1% on the year, down slightly from 19.3% in June. (Reuters)

Japan's negative yields show BoJ's limits, as QQE expectations rise – The Bank of Japan (BoJ) has begun paying

banks for the privilege of lending them cash in a sign the central bank is reaching the limits of its power to boost the economy. Negative yields are more than a footnote in the BoJ's unprecedented Quantitative and Qualitative Easing (QQE) policy. They show that the BoJ Governor Haruhiko Kuroda's 18-month-old monetary experiment is struggling halfway to its 2% inflation goal. The BoJ already buys most of the government's debt issuance, and it paid financial institutions more for three-month and six-month government debt than it will receive when the bills are redeemed. This force-feeding of cash into the banking system pushed the three-month yield as low as -0.015% and the six-month yield to -0.020%. (Reuters)

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China broadens stimulus with $81bn fund injection – China

has signaled serious concern about the nation’s economic slowdown, and is reportedly injecting $81bn into the nation’s largest banks. According to sources, the People’s Bank of China (PBoC) started channeling the cash to the nation’s five biggest banks for a three-month period. Such a credit expansion would build on targeted measures to shore up growth, as Premier Li Keqiang stops short of broad-based monetary and fiscal stimulus, which risks increasing dangers from bad loans. The move would see China join the European Central Bank in adding liquidity, while the US prepares to scale back stimulus. (Bloomberg)

Regional

OPEC may pump less oil in 2015 – OPEC’s Secretary

General, Abdalla El-Badri said the group may cut its production next year. The OPEC’s daily output target could fall by 500,000 barrels to 29.5mn barrels per day in 2015. The group’s monthly report on September 10, 2014 showed demand for its oil will drop to 29.2mn bpd in 2015 from 29.5mn bpd in 2014. (Bloomberg)

SEC signs strategic partnership with Wipro Arabia – The

Saudi Electricity Company (SEC) has entered into a strategic partnership with Wipro Arabia, a subsidiary of India-based IT company, Wipro. Under the agreement, Wipro will implement the plant maintenance and project system functionality of the SAP ERP application for SEC's distribution business line across Saudi Arabia. Once implemented, the system is expected to enable SEC to have an integrated system that offers centralized and standardized processes across its plants. This will help ensure uptime of distribution networks, expense controls and effective utilization of assets. (GulfBase.com)

Libanet signs aircraft services contract with SGS – Libanet,

an aviation industry services provider, has signed a three-year aircraft fleet services contract with Saudia Ground Services Company (SGS) to provide a range of services to all carriers serving four largest airports in Saudi Arabia. Through this agreement, SGS, which handles ground services in the kingdom's airports, is subcontracting its aircraft services to Libanet. Libanet is committed to perform services to more than 320,000 aircraft for all carriers. The airports covered by the contract are: Riyadh, Jeddah, Dammam and Madinah. (GulfBase.com)

PTT, Saudi Aramco tie up in bid for $22bn Vietnam refinery – Thailand-based energy company, PTT has tied up with Saudi

Aramco to submit a proposal to the Vietnamese government for building a $22bn refinery and petrochemical complex in Vietnam. PTT and Saudi Aramco will each own 40% of the project at Binh Dinh's Nhon Hoi Economic Zone, with the Vietnamese government holding the remaining 20%. (GulfBase.com)

SABB/HSBC EMI: Saudi non-oil producing private sector gains momentum – SABB/HSBC Emerging Markets Index

(EMI), a monthly indicator derived from the PMI surveys, rose to a 17-month high of 52.5 in August 2014, up from 51.7 in July 2014. That signaled stronger output growth across the global emerging markets, led by a sharper increase in Chinese service sector activity. However, the EMI remained below its long-run average of 53.8 since 2005. The EMI Index indicated that the expansion rate of Saudi Arabia’s non-oil producing private sector gained momentum during August 2014, with output, new orders and employment all increasing at stronger rates as compared to July 2014. Inventory accumulation also strengthened as companies retained optimism regarding future activity requirements. (GulfBase.com)

BCIC gets SAMA’s approval for its insurance products –

Buruj Cooperative Insurance Company (BCIC) announced that it received the Saudi Arabian Monetary Agency’s (SAMA) temporary approval on extending the sales & marketing of its 14 insurance products. (Tadawul)

SASCO announces opening of investment portfolio – Saudi

Automotive Services Company (SASCO) announced that it has completed the transactions of opening an investment portfolio managed by Saudi Fransi Capital Company. This investment portfolio aims at diversifying resources of investments and revenues for the company as per the regulations of the Saudi Capital Market Authority (Saudi CMA), taking into consideration that the financing of such activities are provided from self-financing. (Tadawul)

MMG sells marine services division for SR200mn –

Mohammad Al Mojil Group Company (MMG) announced the sale of its marine services division, along with its assets and crew, for SR200mn. The sale of the division is a principal component of an asset sale program established as part of MMG’s restructuring plan. The division’s principal activities were servicing the offshore oil & gas facilities of Saudi Aramco on a contractual basis. The proceeds from the sale will be used to repay short-term facilities granted by MMG’s lenders in 2012, the repayment of which was due in 2013, but was extended pending receipt of these funds. (Tadawul)

APC shareholders approve Sukuk issue – Advanced

Petrochemical Company’s (APC) shareholders approved the issuance of Sukuk in compliance with Shari’ah principles in the Ordinary General Assembly Meeting held on September 15, 2014. APC’s shareholders approved to authorize their board of directors to take all necessary measures to issue such bonds, once the necessary approvals from the relevant authorities have been received. (Tadawul)

GASCO BoD recommends SR33.75mn dividend for 3Q2014 – National Gas & Industrialization Company’s (GASCO) board of

directors has recommended the distribution of 4.5% dividend (SR0.45 per share), amounting to SR33.75mn for 3Q2014. Shareholders, who are registered with the Securities Depository Center (Tadawul) on September 20, 2014, will be eligible to receive the dividend. The dividend will be distributed on October 1, 2014. (Tadawul)

Bahri completes procedures for share capital increase –

The National Shipping Company of Saudi Arabia (Bahri) has announced the completion of the statutory procedures for the increase of its share capital on September 15, 2014, including the amendment of its commercial registration certificate, from SR3,150mn to SR3,937.5mn through the issuance of 78.75mn new shares, which have been deposited in the investment portfolio account of Saudi Aramco Development Company, a subsidiary fully owned by Saudi Aramco, noting that the total number of shares prior to the increase in share capital was 315mn shares and became 393.75mn following the increase in share. (Tadawul)

Corporate earnings to soar before opening up of Saudi stock market – The opening of Saudi Arabia's stock market to

direct foreign investment by early 2015 is set to coincide with a rapid pick-up in earnings growth in the Kingdom, which has lagged the region over the past few years. The combined net profits of Saudi Arabia's leading companies are expected to rise 17% in 2014 and 11% in 2015, largely on the back of petrochemical producers and banks, although a number of companies in other sectors also promise strong growth. This positive outlook puts Saudi Arabia on par with Qatar, where

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profit growth is set to average 13% in 2014 and 2015, and Abu Dhabi, which is expected to average 17%. (Reuters)

UAE corrugated packaging market worth $4.6bn – According

to the ‘Future of Corrugated Board Packaging up to 2019’ report, the global corrugated packaging industry generated nearly 90mn tons of finished products, worth over $140bn in 2013. As per the report, global demand for corrugated packaging material is expected to grow 4% annually over the next five years to reach $176bn by 2019. UAE traded over 3mn tons of corrugated packed products (worth $4.6bn in 2013) either consumed domestically or re-exported to other parts in Middle East, Africa and parts of Asia. (GulfBase.com)

DTCM, Dubai Culture to promote tourism – Dubai’s

Department of Tourism and Commerce Marketing (DTCM) and Dubai Culture & Arts Authority (Dubai Culture) have signed a MoU to further unite their efforts in promoting Dubai’s cultural and heritage tourism offerings and implement the emirate’s vision and strategy. The agreement includes plans to leverage the expertise of each entity in developing program and events to promote cultural and heritage tourism. (GulfBase.com)

Dewa achieves record increase in energy generation –

Dubai Electricity and Water Authority (Dewa) has announced that the 2Q2014 has seen a record YoY increase in electricity generation to meet customers’ needs for economic, social and domestic activities in Dubai. Dewa’s MD & CEO, Saeed Mohammed Al Tayer said that Power generation reached 10,692 gigawatt hours (GWh) in 2Q2014 compared with 9,739 GWh during 2Q2013 with growth rate of around 10%. (GulfBase.com)

MPM Properties: Dubai real estate market value appreciates in some areas – According to latest quarterly real estate report

by MPM Properties, Dubai’s real estate market shows a divergence in performance with continued value appreciation of plus 5% QoQ in some areas contrasted by other areas seeing values falling by 1-5%. The report also highlights that sales volumes have slowed from the peak of market activity witnessed at the beginning of 2014. MPM Properties’ CEO, Paul Maisfield said that the slowdown must be put into context as YoY price growth of over 30% has been witnessed in many parts of the city. A combination of seasonal factors, the ebbing of the Expo 2020 effect and the growing impact of the mortgage cap rules has all contributed to the dynamics of the market in the last quarter. (GulfBase.com)

Hong Kong boosts Dubai’s Islamic capital bid – Government

of Hong Kong is deciding to list its Sukuk bonds on NASDAQ Dubai. In its first issue of Islamic securities, Hong Kong has sold $1bn worth of sovereign bonds, although it actually attracted orders of up to $5bn. The notes, which will be US dollar-dominated and valid for five years, have been issued with a profit rate of just two-plus per cent. This transaction strengthens Dubai’s bid to become a global Islamic finance capital. (GulfBase.com)

Arabtec not aware of potential stake sale by former CEO –

Dubai contractor Arabtec Holding (Arabtec) said that it was unaware of any stake sale agreement between its largest shareholders. Earlier, on September 15, 2014, Arabtec shares jumped 3.7% to AED4.77 following a report that its former chief executive Hasan Ismaik had agreed to sell half of his 27.9% stake in the firm to Abu Dhabi state fund Aabar Investments at a price of between AED5.00 and 5.50 per share. (Reuters)

ADIB expands UAE network with three new branches – Abu

Dhabi Islamic Bank (ADIB) has expanded its branch network across the UAE to 83, with the addition of three new branches,

as part of a focus on providing easy access to services and enhancing the customer experience. (GulfBase.com)

NBAD appoints CEO for Asia – National Bank of Abu Dhabi

(NBAD) has appointed Susan Yuen as its CEO in Asia. Ms. Susan will be responsible to define and implement NBAD’s strategy in Asia and have oversight of the bank’s current presence in Hong Kong, Malaysia and Shanghai and consider future expansion plans to Singapore. (GulfBase.com)

Bidders line up for Kuwait's Americana – According to

sources, up to three bidders could submit offers to buy a majority stake in Kuwait Food Company (Americana) ahead of a deadline for second-round bids in mid-October. A joint bid from private equity giants KKR & Co and CVC Capital Partners is also expected while a bid from a third party could materialize. One of the bidders, Savola Group, said on September 16, 2014 that it had appointed JP Morgan to advise on a potential purchase of a stake in Americana, although the Saudi firm cautioned it had not yet signed any agreement to invest. (Reuters)

Omantel denies WorldCall rumor – Oman

Telecommunications Company (Omantel) announced that news regarding WorldCall Telecom Limited (an Omantel's subsidiary) circulated in Pakistan is inaccurate. The company continues providing telecom services as usual. Earlier, Pakistan Telecommunications Authority (PTA) issued a determination order to temporarily suspend the license granted to the company to provide WLL services due to an old dispute on spectrum fees. The company appealed against the determination and the High Court in Lahore issued a stay order in favor of the company. However, the company's management is working with PTA to resolve the disputed case. (GulfBase.com)

AMC’s IPO opens on September 16, 2014 – Al Maha

Ceramics (AMC) will float its OMR7.9mn initial public offering (IPO) on September 16, 2014. Oman Arab Bank's investment banking division is advising Al Maha Ceramics (AMC) on its proposed IPO of 20mn shares. The offer price of a share is 397 baisas. Al Anwar Holding is the majority stakeholder of Al Maha Ceramics with a 37% stake. Apart from Al Anwar, other major shareholders are Ministry of Defence Pension Fund and Mustafa Sultan Enterprises. AMC’s stakeholders are divesting their holding in favor of investing public and the proceeds of the share offer will go to the stakeholders who divest their holding. The share offer will be opened for public subscription for one month until October 15, 2014. (GulfBase.com)

Oman's Orpic to invite bids for LPP by early 2015 – Liwa

Plastics Project (LPP) in Oman will close the pre-qualification document collection process on September 18, 2014. The pre-qualification tender is for engineering, procurement and construction (EPC) work packages on the $3.6bn Sohar-based petrochemical project. It is Oman Oil Refineries & Petroleum Industries (Orpic) intention to issue to the prequalified applicants the actual invitation to tender for the four work packages at the beginning of 2015, once the current front-end engineering design (FEED) has been finalized. (GulfBase.com)

Investcorp acquires US real estate assets for $250mn –

Investcorp announced that its US-based real estate arm, through separate transactions, has acquired a portfolio of office and industrial properties in Durham, North Carolina, Seattle in Washington and Jacksonville in Florida for approximately $250mn. Collectively, the properties acquired consist of nearly 2.2mn square feet and have an average occupancy rate of 87%. (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.

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

0.6%

0.0%

0.4%0.2% 0.2%

(0.1%)

(0.7%)

(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 1,235.59 0.2 0.5 2.5 DJ Industrial 17,131.97 0.6 0.9 3.3

Silver/Ounce 18.72 0.2 0.4 (3.9) S&P 500 1,998.98 0.7 0.7 8.1

Crude Oil (Brent)/Barrel (FM Future)

99.05 2.5 2.0 (10.6) NASDAQ 100 4,552.76 0.7 (0.3) 9.0

Natural Gas (Henry Hub)/MMBtu

3.85 (1.6) 1.1 (11.5) STOXX 600 342.84 (0.1) (0.5) (1.8)

LPG Propane (Arab Gulf)/Ton 110.75 0.7 2.3 (12.5) DAX 9,632.93 (0.0) (0.3) (5.3)

LPG Butane (Arab Gulf)/Ton 127.13 1.5 1.7 (6.4) FTSE 100 6,792.24 0.2 (0.2) (1.1)

Euro 1.30 0.2 (0.0) (5.7) CAC 40 4,409.15 (0.19) (0.8) (3.5)

Yen 107.13 (0.1) (0.2) 1.7 Nikkei 15,911.53 (0.1) (0.1) (4.1)

GBP 1.63 0.3 0.1 (1.7) MSCI EM 1,054.07 (0.2) (0.7) 5.1

CHF 1.07 0.3 0.1 (4.3) SHANGHAI SE Composite 2,296.56 (1.9) (1.8) 6.8

AUD 0.91 0.7 0.6 2.0 HANG SENG 24,136.01 (0.9) (1.9) 3.6

USD Index 84.07 (0.2) (0.2) 5.0 BSE SENSEX 26,492.51 (1.0) (2.1) 27.0

RUB 38.27 (0.2) 1.4 16.4 Bovespa 59,114.66 3.0 3.9 16.5

BRL 0.43 0.6 0.6 1.6 RTS 1,202.00 0.6 (0.9) (16.7)

203.2

168.2

151.0