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QE Intra-Day Movement

Qatar Commentary

The QE Index declined 0.1% to close at 14,027.5. Losses were led by the

Banks & Financial Services and Telecoms indices, declining 0.5% and 0.1%,

respectively. Top losers were Dlala Brokerage & Inv. Holding Co. and Qatari

Investors Group, falling 2.1% and 2.0%, respectively. Among the top gainers,

Gulf Warehousing Co. rose 2.9%, while Qatar Oman Invest. Co. was up 1.5%.

GCC Commentary

Saudi Arabia: The TASI Index fell 0.2% to close at 11,126.0. Losses were led by the Energy & Utilities and Real Estate Dev. indices, falling 0.8% and 0.7%, respectively. ACIG declined 4.1%, while Ace Arabia Coop. Ins. fell 3.9%.

Dubai: The DFM Index declined 3.4% to close at 4,912.1. The Real Estate & Const. index fell 4.9%, while the Financial Serv. & Inv. index was down 4.4%. Arabtec declined 9.2%, while Gulf General Investment Co. was down 6.8%.

Abu Dhabi: The ADX benchmark index fell 1.0% to close at 5,116.0. The Real Estate index fell 4.2%, while the Investment & Financial Services index declined 3.7%. BILDCO fell 6.8%, while Methaq Takaful Ins. was down 5.0%.

Kuwait: The KSE Index rose 0.1% to close at 7,479.8. The Real Estate and Oil & Gas indices gained 0.4% each. Contracting & Marine Services Co. rose 7.8%, while Al Mudon International Real Estate Co. gained 7.6%.

Oman: The MSM Index rose 0.4% to close at 7,547.7. Gains were led by the Financial and Services indices, rising 1.1% and 0.4%, respectively. National Aluminium Products gained 4.5%, while Bank Nizwa rose 3.4%.

Bahrain: The BHB Index declined 0.2% to close at 1,461.2. The Commercial Banks index fell 0.7%, while the other indices ended in green or flat. Al Salam Bank declined 4.8%, while Al-Ahli United Bank was down 0.6%.

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

Gulf Warehousing Co. 53.00 2.9 469.5 27.7

Qatar Oman Investment Co. 17.66 1.5 1,138.8 41.1

Widam Food Co. 62.50 1.5 230.2 20.9

Barwa Real Estate Co. 42.55 1.4 2,141.5 42.8

Al Meera Consumer Goods Co. 190.00 1.3 51.4 42.5

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

Barwa Real Estate Co. 42.55 1.4 2,141.5 42.8

Qatar Gas Transport Co. 25.00 0.0 1,496.8 23.5

Vodafone Qatar 21.85 (0.7) 1,212.5 104.0

Qatar Oman Investment Co. 17.66 1.5 1,138.8 41.1

United Development Co. 29.70 0.3 1,052.6 37.9

Market Indicators 10 Sep 14 09 Sep 14 %Chg.

Value Traded (QR mn) 735.5 797.3 (7.8)

Exch. Market Cap. (QR mn) 743,177.7 744,128.8 (0.1)

Volume (mn) 15.7 18.4 (14.7)

Number of Transactions 7,468 7,824 (4.6)

Companies Traded 42 42 0.0

Market Breadth 20:17 25:11 –

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

Total Return 20,921.82 (0.1) 0.3 41.1 N/A

All Share Index 3,541.05 (0.1) 0.2 36.8 17.4

Banks 3,433.57 (0.5) (1.1) 40.5 16.8

Industrials 4,655.78 0.1 0.9 33.0 18.9

Transportation 2,373.45 0.6 2.6 27.7 15.2

Real Estate 2,984.30 0.9 3.6 52.8 15.9

Insurance 4,160.83 (0.1) 0.5 78.1 13.1

Telecoms 1,662.05 (0.1) 0.1 14.3 23.5

Consumer 7,474.76 0.1 0.4 25.7 27.9

Al Rayan Islamic Index 4,757.23 0.1 0.8 56.7 20.5

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

Co. for Cooperative Ins. Saudi Arabia 67.28 5.8 2,489.9 91.1

Bank Nizwa Oman 0.09 3.4 2,944.7 (10.8)

Ithmaar Bank Bahrain 0.16 3.2 200.0 (30.4)

Saudi Dairy & Food. Saudi Arabia 128.98 3.2 125.2 49.5

Gulf Warehousing Co. Qatar 53.00 2.9 469.5 27.7

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

Arabtec Holding Co. Dubai 4.45 (9.2) 192,704.8 117.1

Dubai Financial Market Dubai 3.50 (4.9) 15,101.6 41.7

Deyaar Development Dubai 1.21 (4.7) 28,698.1 19.8

Drake & Scull Int. Dubai 1.29 (4.4) 15,446.4 (10.4)

Aldar Properties Abu Dhabi 3.93 (4.4) 33,402.8 42.4

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%

Dlala Brokerage & Inv Holding Co. 62.10 (2.1) 103.9 181.0

Qatari Investors Group 58.30 (2.0) 62.3 33.4

Salam International Investment Co 20.08 (1.8) 879.4 54.3

Gulf International Services 127.00 (1.0) 267.6 160.2

QNB Group 204.00 (1.0) 140.9 18.6

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

Barwa Real Estate Co. 42.55 1.4 91,636.8 42.8

Doha Bank 62.30 (1.0) 49,551.2 7.0

Islamic Holding Group 105.00 0.9 42,850.6 128.3

Qatar Gas Transport Co. 25.00 0.0 37,593.4 23.5

Masraf Al Rayan 56.10 (0.2) 37,267.8 79.2

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* 14,027.46 (0.1) 0.3 3.2 35.1 201.99 204,076.6 17.5 2.3 3.6

Dubai

4,912.14 (3.4) (4.1) (3.0) 45.8 517.04 95,453.3 20.4 1.8 1.9

Abu Dhabi

5,115.99 (1.0) (0.5) 0.7 19.2 116.88 138,859.0 14.5 1.8 3.2

Saudi Arabia

11,126.01 (0.2) 0.5 0.1 30.3 3,139.97 603,301.6 21.4 2.7 2.5

Kuwait 7,479.82 0.1 0.3 0.7 (0.9) 81.01 113,109.3 18.6 1.2 3.7

Oman 7,547.65 0.4 0.9 2.4 10.4 23.40 27,659.3 11.4 1.8 3.7

Bahrain 1,461.15 (0.2) (0.7) (0.7) 17.0 3.22 54,242.5 11.3 1.0 4.7

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

14,020

14,040

14,060

14,080

14,100

14,120

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 declined 0.1% to close at 14,027.5. The Banks & Fin. Services and Telecoms indices led the losses. The index fell on the back of selling pressure from Qatari shareholders despite buying support from non-Qatari shareholders.

Dlala Brokerage & Investment Holding Co. and Qatari Investors Group were the top losers, falling 2.1% and 2.0%, respectively. Among the top gainers, Gulf Warehousing Co. rose 2.9%, while Qatar Oman Investment Co. was up 1.5%.

Volume of shares traded on Wednesday fell by 14.7% to 15.7mn from 18.4mn on Tuesday. Further, as compared to the 30-day moving average of 17.6mn, volume for the day was 10.8% lower. Barwa Real Estate Co. and Qatar Gas Transport Co. were the most active stocks, contributing 13.6% and 9.5% 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

09/10 US Mortgage Bankers Asso. MBA Mortgage Applications 5-September -7.20% – 0.20%

09/10 US US Census Bureau Wholesale Inventories MoM July 0.10% 0.50% 0.30%

09/10 US US Census Bureau Wholesale Trade Sales MoM July 0.70% 0.60% 0.20%

09/10 France INSEE NSO Industrial Production MoM July 0.20% -0.50% 1.30%

09/10 France INSEE NSO Industrial Production YoY July 0.10% -0.30% -0.40%

09/10 France INSEE NSO Manufacturing Production MoM July -0.30% -0.30% 1.60%

09/10 France INSEE NSO Manufacturing Production YoY July 0.20% 0.20% 0.10%

09/10 Spain INE Industrial Output NSA YoY July 1.00% 0.40% 2.90%

09/10 Spain INE Industrial Output SA YoY July 0.80% 1.40% 0.80%

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

News

Qatar

Mazaya Kuwait sells shares in Mazaya Qatar (MRDS) –

Mazaya Holding Company (Kuwait) has made a partial sale of its investment in MRDS through reduction of its ownership from 5.7% to 1.0% (total of 4.7%). The shares were sold in the Qatar Stock Exchange (QE) for about KD7.7mn, realizing net profit of about KD3.3mn. (DFM)

BOI: Qatar businesses remain optimistic for 3Q2014, hydrocarbons sector optimism drops – According to the

Business Optimism Index (BOI), prepared by Dun & Bradstreet for the Qatar Financial Centre, the composite BOI for Qatar's non-hydrocarbon sector stands at 39 for 3Q2014, the same as for 3Q2013. However, it is 8 points lower than in 2Q2014, primarily because of the expected seasonal downturn in business activity during summer and the holy month of Ramadan. Within the non-hydrocarbon sector, manufacturing is the most optimistic for 3Q2014, backed by demand from new projects, an overall strong economy and a rising population. In the finance, real estate & business services sector, finance and insurance firms continue to have a stronger outlook than the real estate and business services segments. However, seasonal factors are the main cause for a sharp fall in the sector’s index. Overall, 61% of firms in the finance, real estate & business services sector expect an increase in sales, 64% expect an increase in orders and 40% expect to invest in business expansion in 3Q2014. Meanwhile, BOI showed that optimism in the hydrocarbon sector was on the decline in 3Q2014 and stood at 1, which was seven points lower than that in 2Q2014, due to escalating raw materials and labor costs. (Bloomberg, Gulf-Times.com)

BOI: Qatar SMEs more optimistic than larger entities –

According to the Business Optimism Index, Qatar’s small & medium enterprises (SMEs) are more optimistic than the larger entities in terms of the current business environment in the country. The BOI, prepared by Dun & Bradstreet for the Qatar Financial Centre, found that 53% of SMEs do not foresee any hindrances to their operations in 3Q2014, while it was only 45% for large companies. Dun & Bradstreet’s Associate Director Prashant Kumar said that it is important to note that SMEs are more optimistic than large companies, given their importance to the development of the overall economy. The survey found that demand expectations for both SMEs and larger companies are quite similar, but in terms of sales volume, the index for SMEs stood at 49 versus 51 for the larger companies. Large companies are more confident about profitability, while SMEs hold a stronger outlook with respect to number of employees. In addition, the index for net profits for large companies is higher at 41 as compared to 35 for SMEs, while 45% of SMEs plan to increase their headcount in 3Q2014 as compared to 39% among large companies. (Gulf-Times.com)

KPMG: Immense impact due to evolving insurance regulations – KPMG in Qatar held a seminar on evolving

insurance regulations and risk management best practices in Qatar and globally. KPMG Qatar’s Partner Yacoub Hobeika explained that the impact of international and regional reforms, put in place over the past few years following the global financial crisis six years ago, has been immense and has directly affected insurers. Hobeika said the company has observed numerous developments coming from the International Association Insurance Supervisors, Qatar Central Bank and the Qatar

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

Qatari 65.09% 67.68% (19,075,793.18)

Non-Qatari 34.91% 32.31% 19,075,793.18

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Financial Centre Regulatory Authority, which have had a positive impact on the sector. (Peninsula Qatar)

RasGas plans maintenance on 2 LNG plants in April 2015 –

Ras Laffan Liquefied Natural Gas Company (RasGas) is planning to shut two of its plants in Qatar for maintenance in April 2015. The company’s Train 3 and Train 4 will be shut for less than two weeks. Qatar is the biggest producer of LNG with close to a third of world’s LNG liquefaction capacity and the shutdown of RasGas’ trains may influence prices across Europe and Asia. Train 3 supplies LNG to Petronet LNG, while Train 4 produces the fuel for Petronet, Electricite de France SA, Eni SpA in Italy and Taiwan’s CPC Corp. (Bloomberg)

Social security allowances to be doubled, draft law on safety manual for small cargo ships ratified – HH The Emir

Sheikh Tamim bin Hamad Al-Thani has issued directives to the State Cabinet that the allowances for the beneficiaries of social security be raised. According to sources, allowances may be doubled from the current average of QR2,250 to between QR4,000 and QR5,000 a month. The sources said among some poor families, women get monthly social security allowance of QR900 each, while children get QR540 each, which will now increase. Meanwhile, the State Cabinet ratified a draft law on the issuance of a safety manual for small cargo ships that are not covered by the international maritime treaties in GCC states, and submitted it to the Advisory Council. The cabinet ratified the Minister of Interior’s draft decision to amend some provisions of Decision No. 8 of 2010 to set the country’s entry and exit ports. The amendment adds Hamad International Airport (HIA) to the airports, making them four, namely: Doha Airport, Al Khor Airport, Al Udeid Airport and HIA. (Peninsula Qatar)

Ahlibank offers one-stop-shop service for London property buyers – Ahlibank has launched a new service for investors

looking to purchase a property in London. The service, which boasts of competitive mortgage terms, is designed to make the process as simple as possible for those looking to add properties in the UK to their investment portfolio, with no need to open a UK bank account or pay the mortgage in British pounds. The bank said that it will arrange for the mortgage in Qatari riyals, and will handle the entire process with the property and legal partners in the UK. (Gulf-Tiimes.com)

Aspetar to expand services – Qatar’s Aspetar, the first

specialized orthopedic and sports medicine hospital in the Gulf region, will be open to the general public from early next year. Aspetar’s Director General Dr. Khalifa al-Kuwari said that the hospital is planning to collaborate with Weill Cornell Medical College in Qatar (WCMC-Q). Dr. Al-Kuwari pointed out that Aspetar is mainly covering orthopedic and sports medicine at present. WCMC-Q’s Dean Dr. Javaid Sheikh said the future collaboration between the organizations would result in the expansion of clinical training and research programs. (Gulf-Times.com)

Cape signs long-term service contract with Pearl GTL –

Singapore-based Cape announced that its Qatar operations have signed a five-year contract, with a one-year extension option, with Pearl GTL to provide multi-disciplinary maintenance services to the gas-to-liquids plant at Ras Laffan, Qatar. Pearl Gas to Liquids (GTL) is a joint venture of Shell and Qatar Petroleum, which is the world’s largest plant to turn natural gas into cleaner-burning fuels. (Bloomberg)

Qatar Airways Cargo to start freighters to Brussels, Shanghai – Qatar Airways Cargo is continuing its expansion

with the launch of two new freighter destinations: Brussels in Belgium and Shanghai in China. Brussels will be served four times weekly by the Airbus A330F freighter from October 1. A

tri-weekly non-stop Boeing 777 freighter service will operate on the Doha-Shanghai route from October 2. In addition, an additional Boeing 777 freighter frequency will be added on the Doha–Hong Kong route from October 1, bringing up the weekly frequencies to 14. (Peninsula Qatar)

International

US wholesale stocks barely rise; 3Q2014 GDP growth estimates cut; mortgage applications fall – Wholesale

inventories in the US barely rose in July, suggesting a slower pace of stock accumulation at the start of 3Q2014, which prompted economists to trim their growth estimates. The US Commerce Department said wholesale inventories edged up 0.1%, the smallest rise since July 2013, after a 0.2% gain in June. The rise in overall stocks among wholesalers in July was well below the 0.5% increase that Wall Street had anticipated, leading some economists to lower their GDP growth estimates for 3Q2014. Barclays cut its growth estimate by two-tenths of a percentage point to a 2.5% annual rate, while Action Economics lowered its forecast to 2.8% from 3.0%. Meanwhile, the Mortgage Bankers Association (MBA) said applications for US home mortgages fell last week to the lowest level since December 2000 as interest rates rose for the first time in four weeks. MBA said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, fell 7.2% in the week ended September 5. (Reuters)

RICS: UK house prices rise at slowest pace in a year –

According to a survey by the Royal Institution of Chartered Surveyors (RICS), British house prices rose at the slowest pace in a year during August 2014, which suggested that speculation about higher interest rates has dampened buyer confidence. RICS’ monthly house price balance fell to +40 last month, falling short of forecasts for +47 in a Reuters poll. Further, the data for July was revised down slightly to +48. Agreed sales fell for the first time since September 2012 and there was a second consecutive fall in buyer inquiries. The RICS survey of chartered surveyors added to evidence that London's housing market is cooling off after fervent price growth earlier this year. The London house price balance eased to +9 in August from +11. Earlier, the Bank of England (BoE) Governor Mark Carney said BoE may start to raise interest rates next spring, if the labor market continued to recover from the financial crisis. (Reuters)

France breaks 2015 deficit-cutting promise – France

announced that it was breaking the latest in a long line of promises made to European Union (EU) partners to cut its public deficit, conceding that it would take until 2017 to bring its finances in line with EU rules. The statement by Finance Minister Michel Sapin follows weeks of hints by Paris that weakness in the Eurozone's second-largest economy would prevent it from bringing its deficit below the EU ceiling of 3% of GDP next year as promised. Sapin insisted France was not seeking to change the rules, but wanted the deteriorating outlook for growth and inflation to be taken into account. Paris has led calls for a more flexible interpretation of EU budget regulations along with Italy, but German Chancellor Angela Merkel has rejected any bending of the rules and said Eurozone countries should stick to their commitments. (Reuters)

Japanese business mood turns positive – A government

survey showed confidence among big Japanese manufacturers turned positive in 3Q2014 and they expect business conditions to improve further in the following quarter, suggesting a gradual economic recovery from the slump after April's sales tax hike. The survey also showed that companies are growing more positive on business investment, boding well for the

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government's goal of fostering a sustainable growth cycle led by pick up in business activity, higher wages and stronger consumer spending. The Business Survey Index (BSI) of sentiment among large manufacturers stood at plus 12.7 in July-September 2014, improving from minus 13.9 in the prior three months. The index is seen improving to plus 15.1 in October-December 2014. The joint survey by the Ministry of Finance and the Cabinet Office suggests that the central bank's key tankan survey out on October 1 is likely to show a steady improvement in business sentiment in July-September. (Reuters)

China premier seeks to reassure investors amid probes –

Chinese Premier Li Keqiang sought to counter perceptions that his government is making it tougher for foreign companies to operate in the nation, pledging a wider opening to outside investment. Li Keqiang said the Chinese government will attract more imports, punish intellectual-property violators and treat foreign and domestic companies equally. A spate of antitrust probes of foreign companies and state-media stories criticizing overseas brands have escalated concern that China is pursuing a mercantilist agenda to boost its own enterprises. With foreign direct investment into China leveling off, Li Keqiang’s latest remarks adds to his earlier statements, when he said foreign firms have only been targeted in 10% of anti-monopoly probes. (Bloomberg)

Regional

OPEC cuts demand outlook by due to US shale – The

Organization of Petroleum Exporting Countries (OPEC) has reduced forecasts for its crude oil supply by the most in at least three years, as surging North American shale output reduces reliance on the group’s supplies. OPEC expects it will need to pump an average of 29.2mn barrels a day of crude next year, 200,000 barrels a day less than it forecast a month ago. The group boosted estimates for supplies from countries outside OPEC by the same amount. This change implies that OPEC’s 12 members would need to cut their output by about 1.1mn barrels a day from the 30.3mn they produced in August 2014. (Bloomberg)

GPCA: GCC fertilizer industry strengthening food security –

According to a report by the Gulf Petrochemicals & Chemicals Association (GPCA) and Nexant, the GCC’s export-oriented fertilizer industry is set to play a key role in fortifying global food security. The report named “Role of GCC Fertilizers in Addressing Food Security” stated that upcoming fertilizer capacity additions for ammonia and urea will be critical for farmlands in South and South East Asia, which are highly populous regions lacking natural resources to produce fertilizers. According to GPCA data, the GCC’s fertilizer capacity reached 42.7mn tons in 2013, nearly half of which was exported to markets across the world. The GCC’s fertilizer sector is also growing: production gained 4% from the previous year, while the global fertilizer industry grew by just 1.7% in the same period. (Peninsula Qatar)

Saxo to add Saudi equities on its trading platform – Saxo

Bank, the online Danish bank, is planning to add Saudi equities to its trading platform after Saudi Arabia said that it expects to open its $603bn stock exchange to direct foreign investment in 2015. The bank’s head in Dubai Jakob Beck Thomsen said that it is also seeking to add equities in the UAE, Egypt and Qatar to its online trading products. Thomsen said that the bank had put off adding UAE equities to its trading products, because it was waiting to see if a planned merger of the Dubai Financial Market and the Abu Dhabi Securities Exchange takes place. Saxo now has decided to add them as the merger does not appear to be happening. (Bloomberg)

Saudi investment in 76 green building projects to exceed $26bn – According to the Saudi Green Building Forum,

investment in green building projects in Saudi Arabia is set to exceed $26bn across 76 projects. These projects include the King Abdullah Financial District, the world’s largest green building development, covering more than 1.6mn square meters of area. (GulfBase.com)

International Group of Luxury Fragrances launched in Saudi Arabia – A consortium of international fragrance retailers

has launched the International Group of Luxury Fragrances (IGLF) in Saudi Arabia. IGLF will house interactive stalls in popular malls in Riyadh, Jeddah and Dammam by 2014-end, for facilitating consumers to truly appreciate the charisma of the luxurious world of scents. Saudi Arabia has one of the highest per capita consumption of fragrances in the world and Saudi nationals are known for their sophisticated usage of fragrances as a part of their daily ritual. The layering of complementary fragrances to create a personal signature is an art form in Saudi Arabia. (GulfBase.com)

EY: Growth of Islamic insurance sector rebounding –

According to a study by Ernst & Young (EY), growth of Takaful (Islamic insurance) business is rebounding, fuelled by improved economic conditions across its core markets and increased underwriting needs from the broader Islamic banking sector. Expansion of the core markets in the Gulf and Southeast Asia has helped the sector reach $12.3bn in gross contributions globally in 2013. EY estimated that Saudi Arabia and Malaysia command 70% of the business, and the sector is expected to grow 14.4% in 2014, up from 11.7% in 2012, and reach $18.6bn in gross contributions by 2016. EY’s estimates show Takaful growth in Southeast Asia is now outpacing the Middle Eastern markets, expanding by around 22% annually as compared to 11.7% for Saudi Arabia and 12.1% for the rest of the GCC. The sector will also benefit from an upswing in banking penetration across its core markets. (GulfBase.com)

Itqan Capital to boost Islamic finance business – Jeddah-

based Islamic investment firm Itqan Capital, is planning to expand its investment and advisory activities in Saudi Arabia after it received regulatory approval to boost its capital. Local investment firms are poised to see an uptick in activity as the Saudi stock exchange opens up to direct investment by foreign institutions early next year. The firm, which is part of the Al Baraka Banking Group, will increase its capital by SR100mn to SR173.4mn by the October-end. Itqan currently manages four Shari’ah-compliant funds. The capital increase will see Al Baraka Banking Group become the majority shareholder in Itqan with a stake of around 58%, while Al Baraka Islamic Bank will hold an additional 25%. (Reuters)

Czech-Saudi Chamber inaugurated in Prague – Saudi

businessman and Honorary Consul of the Czech Republic in the Kingdom have launched the Czech-Saudi Chamber of Commerce in Prague, the Czech Republic capital. The chamber aims to develop and strengthen economic ties between the two countries. The Czech-Saudi Chamber will be a sponsor of the first Czech-Saudi Business Forum, which will be held in Prague on November 5, 2014 and is organized by Shobokshi Investment. (GulfBase.com)

Kingdom to study opening nation’s debt markets –

According to the investment banking unit of Mashreq Bank, banks with experience in arranging Islamic bond sales may stand to benefit from the potential opening of Saudi Arabia’s debt market to foreign investors. Saudi Arabia is working on new rules aimed at promoting the local currency bond and sukuk market. The rules, which could be published early 2015, are

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expected to allow foreign investors to buy local currency bonds for the first time. According to data compiled by Bloomberg, seven of the top 10 underwriters of Saudi Arabian Sukuk issues this year were local banks. Restricting primary investments to Saudi citizens is a means for the government to redistribute oil wealth by allowing locals to profit from asset-price gains after they have been sold to the public. There are about $30bn of outstanding bonds issued in Saudi riyals. (Bloomberg)

Bahri appoints CEO – The National Shipping Company of

Saudi Arabia’s (Bahri) board of directors has decided to appoint Engr. Ibrahim Abdulrahman Al-Omar as the company’s CEO, effective from October 1, 2014. (Tadawul)

Saudi Aramco, Sinopec to start test runs at Yanbu refinery – Saudi Arabian Oil Company (Saudi Aramco) and its JV partner

China Petroleum & Chemical Corporation (Sinopec) have started test runs at their 400,000 bpd Yanbu refinery. This puts the new plant on schedule to begin commercial exports in November, possibly even by the second half of October. Yanbu will be the second major refinery to come online in Saudi Arabia in a year, following the September 2013 start-up of the similar 400,000 bpd Jubail plant, a JV between Saudi Aramco and France's Total. (Reuters)

PetroRabigh invites banks to back JV expansion – Rabigh

Refining & Petrochemical Company (PetroRabigh) announced that it is formally inviting banks to provide financing for the SR32bn expansion of its petrochemicals complex in Saudi Arabia. PetroRabigh is a JV between Saudi Aramco and Sumitomo Chemical. The requests for proposals were issued by the parent firms to local and international banks on September 9, 2014 with financing of the expansion to be split between conventional loans and Shari’ah-compliant facilities. The new facility, known as Rabigh II, is to be built as an expansion of PetroRabigh's existing petrochemical plant, increasing output and introducing higher-margin products. The ownership of Rabigh II will be transferred to PetroRabigh in 4Q2014. (Reuters)

Al Ibrahim set for SR5bn Cityscape debut – Saudi Arabia-

based investment and development company, Al Ibrahim Investment Group (Al Ibrahim) is set to make its Cityscape Global debut with a SR5bn investment purse and the goal of developing long-term strategic partnerships to grow its real estate portfolio. The company's Cityscape debut comes ahead of its $480mn REIT announcement as it looks to partner up on real estate portfolio developments including substantial land bank opportunities. (Bloomberg)

Dubai World offers incentives to extend $25bn debt deal –

According to sources, Dubai World is offering creditors a series of incentives to lengthen a $25bn debt restructuring deal, including shares in global ports firm DP World as collateral. The company is also offering to return cash throughout the loan's lifespan, more assets as collateral, a higher interest rate and an early repayment of a first tranche of debt due next year. In addition, the Dubai government will make extra funds available to Dubai World. In return, the firm wants creditors to grant it more time to meet a second, larger repayment currently due in 2018. (Reuters)

Colliers International: Dubai home-price growth slows in 2Q2014 – According to Colliers International, Dubai residential

property-price growth slowed in 2Q2014 after mortgages were restricted and the government increased a transaction tax to damp the market. Property values rose 3% QoQ, down from 6% growth registered in 1Q2014. Prices rose 20% YoY in 2Q2014. Prices for apartments, which accounted for two thirds of all residential deals, climbed 18% YoY in 2Q2014. (Bloomberg)

IDC: IT spend by UAE businesses to top $8bn by 2017 –

Businesses in the UAE are at the forefront of adopting technology to deliver customer benefits, as the UAE’s IT spend set to top $8bn by 2017. As per IT research company, IDC, business IT spending in the UAE is set to grow by 74% from a projected $4.63bn in 2014 to $8.06bn in 2018. Public sector investment across government, education, and healthcare will drive the majority of business IT growth, along with finance, energy, and consumer device purchases. (GulfBase.com)

Emirates NBD launches $500mn perpetual bond at 6.375% –

Emirates NBD has launched a $500mn, Tier 1 capital-boosting bond at 6.375%. Pricing guidance for the perpetual bond is in the area of 6.5%. The order book closed in excess of $1.3bn. Citigroup, Commerzbank, Deutsche Bank, Morgan Stanley, Standard Chartered and Emirates NBD's own investment banking arm were arranging the sale. (Reuters)

Sharjah issues debut 10-year Sukuk – The Government of

Sharjah announced its debut transaction in the debt capital markets with a AED2.8bn 10-year Sukuk Al Ijara priced at 3.764%. This is not only Sharjah’s first issuance, but also the first time a sovereign has executed a 10-year Sukuk in its debut issuance. HSBC acted as the global coordinator for the transaction, with KFH Investment, National Bank of Abu Dhabi, Sharjah Islamic Bank and Standard Chartered acting as joint lead managers. Al Hilal Bank, Dubai Islamic Bank and Arab Banking Corporation were appointed as co-lead managers for the transaction. (Bloomberg)

DSE Oman wins four MEP contracts worth AED168mn –

Drake & Scull Engineering (DSE) Oman, the subsidiary of Drake & Scull International (DSI), has won four major MEP contracts worth a total value of AED168mn. Under the terms of the first agreement, DSE Oman will provide MEP services for a government facility in Al Ghubrah, Muscat. The company has commenced work on the site, which is scheduled for completion in 2015. Further, DSE Oman will undertake complete MEP works for a government complex in Nizwa, which is spread over an area of 36,452 square meters, encompassing residential and essential services facilities. The project is scheduled for completion in 2016. In addition, DSE Oman will deliver MEP services for a prestigious leisure and tourism project. DSE Oman will also extend its services for upgrading core MEP systems at a major oil refinery, where it will provide engineering, procurement and construction (EPC) services. (DFM)

TAQA appoints acting CFO – Abu Dhabi National Energy

Company (TAQA) has appointed Ryan Wong, currently Group Vice-President, Treasury, to the position of acting Chief Financial Officer (CFO) effective from October 1, 2014. Wong will replace Stephen Kersley, who has held the role of CFO since May 2011 and has decided to leave the company effective November 1, 2014. (ADX)

Guggenheim Partners forms asset management JV – Abu

Dhabi-based KBBO Group and US-based financial services firm, Guggenheim Partners entered into an agreement to form a joint venture, Guggenheim KBBO Partners in Dubai. The newly established JV will specialize in delivering advisory services to leading operating companies in the Middle East and global asset management solutions to family offices and institutional investors in the region. (Reuters)

Kuwait OPEC governor expects oil to return to $100 level –

Kuwait OPEC Governor Nawal Al-Fuzaia said that a recent drop in oil prices was due to a rise in supply and slower summer demand and that she expected prices to rise again and maintain the $100 per barrel level. In relation to oil prices, the current drop is due to a rise in supply, specifically the return in

Page 6 of 7

production from Libya. There are also supplies from US shale, and there is a slowing in demand for crude in the summer. She expects prices will rise and maintain the level of $100 per barrel, citing geopolitical reasons and pending winter demand. (Peninsula Qatar)

TIC becomes exclusive Oman partner in Duqm rare-earths project – Takamul Investment Company (TIC), the downstream

subsidiary of Oman Oil Company, has been named the exclusive Omani partner in the development of a major rare earths project planned in the Special Economic Zone (SEZ) at Duqm. The project’s lead developer, Canada-based Medallion Resources Ltd., granted the special partnership status to TIC as part of amendments to a MoU signed by both the entities in 2013. The revised MoU allows Medallion to pursue partnership opportunities with parties within the GCC states but outside Oman, with TIC remaining the exclusive development partner in Oman. Earlier in June 2013, Medallion signed a MoU with TIC to conduct studies investigating the viability of constructing a monazite-based, rare-earth extraction facility in the Omani industrial city of Duqm. The facility, capable of producing a concentrate containing 10,000 tons of rare-earth oxides annually, is estimated to cost around $50mn. (GulfBase.com)

PEIE: Consortium to invest OMR500mn in Oman’s industrial estates – The Public Establishment for Industrial Estates

(PEIE), CEO Hilal bin Hamad Al Hasani said that a new consortium comprising international and local companies will start functioning early in 2015 with a plan to invest OMR500 million in industrial estates. He further added that, this consortium aims at investing on providing infrastructure, superstructure, public utilities, establishment of service centers, and integrated commercial and residential cities in the various industrial estates. (Bloomberg)

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 7 of 7

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

(0.2%) (0.1%)

0.1%

(0.2%)

0.4%

(1.0%)

(3.4%)(4.0%)

(3.2%)

(2.4%)

(1.6%)

(0.8%)

0.0%

0.8%

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 1,249.79 (0.5) (1.5) 3.7 DJ Industrial 17,068.71 0.3 (0.4) 3.0

Silver/Ounce 18.97 (0.5) (1.2) (2.6) S&P 500 1,995.69 0.4 (0.6) 8.0

Crude Oil (Brent)/Barrel (FM Future)

98.04 (1.1) (2.8) (11.5) NASDAQ 100 4,586.52 0.8 0.1 9.8

Natural Gas (Henry Hub)/MMBtu

3.96 0.6 3.3 (8.7) STOXX 600 344.70 (0.2) (1.2) (1.7)

LPG Propane (Arab Gulf)/Ton 106.88 0.5 1.2 (15.5) DAX 9,700.17 (0.2) (0.9) (5.1)

LPG Butane (Arab Gulf)/Ton 124.38 (0.1) (1.1) (8.4) FTSE 100 6,830.11 0.6 (1.2) (1.2)

Euro 1.29 (0.2) (0.3) (6.0) CAC 40 4,450.79 (0.14) (1.2) (3.1)

Yen 106.86 0.6 1.7 1.5 Nikkei 15,788.78 (0.1) (0.8) (4.6)

GBP 1.62 0.7 (0.7) (2.1) MSCI EM 1,075.22 (1.1) (2.0) 7.2

CHF 1.07 (0.4) (0.6) (4.7) SHANGHAI SE Composite 2,318.31 (0.2) (0.2) 8.2

AUD 0.92 (0.5) (2.4) 2.7 HANG SENG 24,705.36 (1.9) (2.1) 6.0

USD Index 84.28 0.0 0.6 5.3 BSE SENSEX 27,057.41 (0.8) (0.9) 29.9

RUB 37.32 0.8 0.8 13.6 Bovespa 58,198.66 (1.5) (6.4) 16.2

BRL 0.44 (0.4) (2.2) 3.0 RTS 1,239.09 (0.6) (1.4) (14.1)

201.6

169.2

151.8