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QE Intra-Day Movement

Qatar Commentary

The QE Index rose 0.1% to close at 14,109.2. Gains were led by the Telecoms

and Consumer Goods & Services indices, gaining 1.3% and 0.3%, respectively.

Top gainers were Qatari Investors Group and Al Khalij Commercial Bank, rising

3.7% and 3.1%, respectively. Among the top losers, Ahli Bank fell 1.5%, while

Qatar General Ins. and Reins. Co. declined 1.3%.

GCC Commentary

Saudi Arabia: The TASI Index fell 0.3% to close at 11,027.0. Losses were led by the Real Estate Dev. and Multi-Investment indices, falling 1.5% and 1.2%, respectively. Nama Chemicals Co. declined 5.0%, while AICC was down 3.9%.

Dubai: The DFM Index gained 0.6% to close at 4,991.2. The Real Estate & Construction index rose 1.8%, while the Insurance index was up 0.1%. Al Salam Sudan gained 4.1%, while Arabtec rose 3.8%.

Abu Dhabi: The ADX benchmark index fell 0.4% to close at 5,159.7. The Energy index fell 0.9%, while the Real Estate index declined 0.8%. National Takaful Co. fell 7.0%, while Union National Bank was down 3.7%.

Kuwait: The KSE Index rose 0.1% to close at 7,496.5. The Consumer Services and Financial Services indices gained 0.7% each. Securities Group Co. rose 8.2%, while Credit Rating & Collection gained 7.8%.

Oman: The MSM Index fell 0.4% to close at 7,512.2. Services index declined 0.3%, while the Industrial indices was down 0.2%. ONIC. Holding declined 2.2%, while Gulf Investment Services fell 2.0%.

Bahrain: The BHB index declined 0.1% to close at 1,467.0. The Industrial index fell 0.4%, while the Commercial Banks index was down 0.1%. Al-Ahli United Bank declined 1.2%, while Bahrain Islamic Bank was down 0.6%.

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

Qatari Investors Group 61.40 3.7 529.6 40.5

Al Khalij Commercial Bank 23.29 3.1 445.0 16.5

Qatar International Islamic Bank 91.60 2.6 755.1 48.5

Ezdan Holding Group 19.87 1.9 3,040.2 16.9

Dlala Brokerage & Inv. Holding Co. 64.80 1.6 128.8 193.2

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

Ezdan Holding Group 19.87 1.9 3,040.2 16.9

Vodafone Qatar 22.00 0.9 1,199.0 105.4

Widam Food Co. 65.80 (0.2) 1,095.8 27.3

Qatar International Islamic Bank 91.60 2.6 755.1 48.5

National Leasing 28.30 (0.4) 530.9 (6.1)

Market Indicators 14 Sep 14 11 Sep 14 %Chg.

Value Traded (QR mn) 553.3 656.5 (15.7)

Exch. Market Cap. (QR mn) 748,454.9 747,640.6 0.1

Volume (mn) 12.1 10.9 10.7

Number of Transactions 6,089 6,146 (0.9)

Companies Traded 42 40 5.0

Market Breadth 20:19 21:15 –

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

Total Return 21,043.67 0.1 0.1 41.9 N/A

All Share Index 3,560.53 0.0 0.0 37.6 17.5

Banks 3,454.47 (0.1) (0.1) 41.4 16.9

Industrials 4,693.79 0.1 0.1 34.1 19.0

Transportation 2,377.08 (0.2) (0.2) 27.9 15.2

Real Estate 2,976.96 (0.2) (0.2) 52.4 15.9

Insurance 4,140.72 (0.6) (0.6) 77.2 13.1

Telecoms 1,678.11 1.3 1.3 15.4 23.8

Consumer 7,526.98 0.3 0.3 26.5 28.1

Al Rayan Islamic Index 4,787.18 0.4 0.4 57.7 20.6

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

Salhia Real Estate Co. Kuwait 0.40 6.7 0.1 0.0

Bank Albilad Saudi Arabia 57.31 4.2 1,777.1 63.7

Al Tayyar Saudi Arabia 139.58 4.2 850.9 63.1

Arabtec Holding Co. Dubai 4.60 3.8 94,178.7 124.4

Qatari Investors Group Qatar 61.40 3.7 529.6 40.5

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

Nama Chemicals Co. Saudi Arabia 17.00 (5.0) 7,963.5 21.0

Union National Bank Abu Dhabi 6.80 (4.2) 281.0 21.6

Etihad Atheeb Telecom Saudi Arabia 11.80 (3.4) 4,427.6 (18.1)

Dar Al Arkan Real Estate Saudi Arabia 14.31 (3.2) 32,837.1 45.3

Com. Bank Of Kuwait Kuwait 0.68 (2.9) 12.1 2.0

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%

Ahli Bank 54.00 (1.5) 3.8 27.6

Qatar General Ins. and Reins. Co. 47.00 (1.3) 3.0 17.7

QNB Group 205.40 (1.2) 109.0 19.4

Qatar Islamic Insurance Co. 87.20 (0.8) 36.8 50.6

Qatar Gas Transport Co. 24.93 (0.7) 267.0 23.1

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

Widam Food Co. 65.80 (0.2) 72,902.6 27.3

Qatar International Islamic Bank 91.60 2.6 69,176.5 48.5

Ezdan Holding Group 19.87 1.9 60,260.4 16.9

Qatari Investors Group 61.40 3.7 32,639.7 40.5

Industries Qatar 194.00 0.0 32,548.6 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* 14,109.16 0.1 0.1 3.8 35.9 151.95 205,525.7 17.6 2.3 3.6

Dubai

4,991.23 0.6 0.6 (1.4) 48.1 233.06 96,634.6 20.7 1.8 1.9

Abu Dhabi

5,159.67 (0.4) (0.4) 1.5 20.3 33.96 139,598.1 14.6 1.8 3.2

Saudi Arabia

11,026.96 (0.3) (0.3) (0.8) 29.2 2,663.59 597,529.6 21.2 2.7 2.6

Kuwait 7,496.47 0.1 0.1 0.9 (0.7) 72.18 113,309.9 18.8 1.2 3.7

Oman 7,512.18 (0.4) (0.4) 2.0 9.9 14.78 27,511.2 11.3 1.7 3.7

Bahrain 1,467.02 (0.1) (0.1) (0.3) 17.5 2.48 54,330.5 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)

14,080

14,090

14,100

14,110

14,120

14,130

14,140

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 0.1% to close at 14,109.2. The Telecoms and Consumer Goods & Services indices led the gains. The index rose on the back of buying support from non-Qatari shareholders despite selling pressure from Qatari shareholders.

Qatari Investors Group and Al Khalij Commercial Bank were the top gainers, rising 3.7% and 3.1%, respectively. Among the top losers, Ahli Bank fell 1.5%, while Qatar General Insurance and Reinsurance Co. declined 1.3%.

Volume of shares traded on Sunday rose by 10.7% to 12.1mn from 10.9mn on Thursday. However, as compared to the 30-day moving average of 17.5mn, volume for the day was 30.8% lower. Ezdan Holding Group and Vodafone Qatar were the most active stocks, contributing 25.1% and 9.9% to the total volume respectively.

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

News

Qatar

Ezdan: 91.4% MoM growth for Qatari real estate in August –

According to Ezdan Holding Group’s monthly report, the real estate sector in Qatar witnessed significant growth with the combined value of transactions reaching QR1.9bn in August, up by 91.4% as compared to QR1.0bn in July 2014. The report said that Qatar’s real estate sector will experience higher growth in the coming months especially after summer holidays are over, noting that most major players in the real estate market are back in the market. Similarly, the GCC real estate sector maintained its positive performance in August, ignoring the summer season downturn. The report predicted that the GCC real estate sector to grow even further during the remaining months of 2014 due to the implementation of various real estate projects. (Peninsula Qatar)

Aon Hewitt: 5.2% average salary hike likely in 2015 –

According to Aon Hewitt, a global talent, retirement and health solutions company, companies across Qatar are expecting an average salary increase of 5.2% in 2015. The figure is slightly down from forecasted figures for 2013 and 2014, which stood at 5.6% each. The latest figure for 2015 indicates that companies across Qatar are being slightly more conservative with their budgets. However, employees in the country were actually given an average salary increase of 5.1% in 2014, slightly below the original projection of 5.6%. (Peninsula Qatar)

WDAM’s GM replaced – Widam Food Company (WDAM)

announced that its General Manager, Yousef Mohammed Salih Al-Awadi is no longer working with the company and its Managing Director, Abdul Rahman Hamad Srai Al Kaabi, is now in charge of managing the position until a new GM is appointed. (QE)

ICAEW: Intra-regional trade growth key to Qatar diversification – ICAEW, a global organization of chartered

accountants, in its latest ‘Economic Insight’ report, said the increasing intra-regional trade is central for fulfilling Qatar’s diversification objectives and could help assuage disruption caused by political turbulence in the Middle East. Qatar’s economy is moving in the right direction, with the government investing in transformative transport and logistics networks to boost freight and passenger capacity. As per the report, the GCC nations are leading the region’s current rail and aviation investment boom as they race to encourage more cross-border trade and address increasing congestion issues in the face of rapid population growth and expanding tourism markets. The report indicated that the high investment levels in Qatar will support growth over the medium term, with its real GDP

expected to grow 6.3% in 2014 and annual growth rising above 7% during 2015-16. (Gulf-Times.com)

EQ: Clear definition set to empower SME sector – Enterprise

Qatar (EQ), the promoter of small & mid-sized businesses, has come out with a proper definition of SMEs that will help them qualify for various SME-dedicated schemes. According to the newly-formulated definition, those companies registered in accordance with the Qatari law, which have less than 250 employees and less than QR100mn in annual turnover, will primarily come under the category of SMEs. EQ’s CEO Omran bin Hamad Al Kuwari said this definition of SMEs was evolved by EQ in coordination with various stakeholders, including the Ministry of Economy & Commerce, the Ministry of Finance and the Qatar Development Bank. (Peninsula Qatar)

Ashghal: Phase 1 of C-Ring Road project opens – The Public

Works Authority (Ashghal) opened the first phase of the C-Ring Road project on schedule, which has been built with a view to ease traffic congestion during peak hours. The opening of the first phase is considered to be an important step towards enhancing the C-Ring Road’s capacity, which involves a 6.3-kilometer stretch from C-Ring Road’s intersection with Salwa Road (Jabur bin Ahmed intersection) to Umm Ghuwailina roundabout, which experiences high densities of traffic. (Gulf-Times.com)

UDCD appoints Memac Ogilvy as its ad agency – The United

Development Company (UDCD) has chosen Memac Ogilvy as its advertising agency after an extensive review of various marketing and advertising agencies. The Memac Ogilvy team has been selected to lead all strategic branding and creative efforts with a goal to accelerate the marketing efforts of UDCD’s urban development, the Pearl-Qatar Island. Memac Ogilvy will help guide UDCD’s brand strategy and create integrated marketing campaigns, including print, broadcast and out-of-home advertising. (Bloomberg)

CAPA: QA, Etihad seen as restructuring partners for troubled Malaysia Airlines – According to an aviation market

analyst at the Center for Aviation (CAPA), the ongoing massive restructuring at troubled Malaysia Airlines could include expanded partnerships or even equity partnerships with Middle East Airlines such as Qatar Airways and Etihad. CAPA said that the existing codeshare agreements between the airlines could result in either QA or Etihad buying a stake in Malaysia Airlines. The troubled airline is about to be delisted from the Kuala Lumpur Stock Exchange and brought under custody of Malaysia’s sovereign wealth fund Khazanah Nasional to proceed with a restructuring plan that includes the layoff of at

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

Qatari 68.91% 70.27% (7,478,936.61)

Non-Qatari 31.08% 29.74% 7,478,936.61

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least 6,000 staff of its almost 20,000 employees and cutting unprofitable routes as part of a $1.9bn overhaul. (Gulf-Times.com)

QP appoints Managing Director – Qatar Petroleum (QP) has

appointed Engineer Saad Sherida Al Kaabi as the company’s new Managing Director. Al-Kaabi joined QP in 1986 as a student studying petroleum & natural gas engineering at Pennsylvania State University in the US. In 1991, he graduated with a Bachelor of Science degree in petroleum & natural gas engineering. Immediately after graduation, he joined QP’s Reservoir & Field Development Department, where he progressed through various petroleum engineering, technical, commercial and supervisory positions. (Gulf-Times.com)

QDREIC offers luxury project in Turkey – Qatari Diar Real

Estate Investment Company (QDREIC) said that it is embarking on a brand-new seaside residential project in Istanbul, Turkey. The ‘Sea Pearl Ataköy’ development is steeped in luxury and innovation. Overlooking the Sea of Marmara, the newest QDREIC project in Ataköy is situated in one of the most sought after residential zones in Turkey. The development will comprise 1,474 luxurious apartment units and a deluxe five-star hotel with high-end boutiques, featuring global brands and lavish restaurants. (Peninsula Qatar)

International

BIS: Central banks inflating elevated asset prices; growing foreign fund influence a risk for emerging markets – The

Bank for International Settlements (BIS) said financial asset prices are at elevated levels and market volatility remains exceptionally subdued thanks to ultra-loose monetary policies implemented by central banks around the world. In its quarterly review, the BIS said by fostering risk-taking and the search for yield, accommodative monetary policies thus continued to contribute to an environment of elevated asset price valuations and exceptionally subdued volatility. The institution had warned earlier this year that rock-bottom interest rates have led to worrying signs of unsustainable growth in property and credit markets in some countries. The US Federal Reserve is on course to bring its bond-buying program to an end in October and is expected to begin raising interest rates next year. However, while the Fed is stepping back, the European Central Bank (ECB) is stepping up, by offering billions of euros of liquidity to banks, and purchasing assets to ward off deflation and revive flagging growth. Meanwhile, BIS said the global fund management industry is a potential source of risk for emerging markets because of its vast size and herd-like investor behavior that can exacerbate asset price fluctuations. BIS further added that the selloff that rocked emerging economies last year was a reminder of how the activity of large asset managers can significantly affect small and illiquid asset markets. (Reuters)

UK banks slam leverage plans as too complex, may increase risk – Britain's banks have slammed plans to impose

new capital rules for lenders and said the Bank of England’s (BoE) leverage ratio proposals are far too complex and could encourage banks to take more risks. Simon Hills, Director at the British Bankers' Association (BBA) said there is a risk that the current proposals will increase costs for bank customers and conflict with other rules that seek to make banks safer. The BoE has proposed changes to the framework for the leverage ratio – which is a measure of equity as a percentage of assets, without adjusting for riskiness. The proposals are expected to result in Britain lifting the minimum leverage ratio for banks in the future, possibly to 4% or 5%. Banks currently need to have a leverage ratio of at least 3%, in line with the global standard. The BoE's

Financial Policy Committee is due to reveal changes to the leverage ratio framework in November. (Reuters)

German business lobby group calls EU sanctions a mistake – The leader of a German business lobby stated the European

Union's (EU) new economic sanctions against Russia are a mistake, because they were imposed just as a week-old ceasefire was bringing calm to the embattled east of Ukraine. Eckard Cordes, Chairman of Germany's Committee on Eastern European Economic Relations, said his group had wanted sanctions to be delayed to help bolster the ceasefire. The US and EU imposed new sanctions against Russia on September 12, tightening financial measures against Moscow due to its intervention in Ukraine. EU sanctions would limit Russian oil companies’ access to funds. Sanctions from the US hit Russia's biggest bank and an arms maker, and barred US-based firms from helping five Russian oil firms explore oil deposits. Cordes said German exports to Russia could fall as much as 20-25% this year due to the effect of sanctions. Germany Economy Minister Sigmar Gabriel said, however, he believed the sanctions would have an effect on Putin. Germany is Russia's biggest trading partner in the EU and sold about €36bn of goods there last year. (Reuters)

Abe remains neutral on whether to raise Japan sales tax to 10% – Japanese Prime Minister Shinzo Abe said he remained

neutral on whether to proceed with a hike in Japan's sales tax to 10%, adding that decision would hinge on the strength of economic indicators for the current quarter. Abe has to decide by the end of the year whether to proceed with a plan to raise the consumption tax to 10% from 8% in 2015, after a hike from 5% in April sent consumption into a sharp contraction. Abe said he wanted to see how the economy performs in 3Q2014 after GDP contracted by 7.1% in 2Q2014 as a result of the previous tax increase. Abe further added that, his goal is to restore growth in the world's third-largest economy and end 15 years of deflation. At the same time, he has pledged to curb government debt, which is well over twice the size of GDP, the heaviest debt burden in the industrialized world. (Reuters)

Bloomberg: Li Keqiang’s options narrow as Chinese growth slowdown deepens – Chinese Premier Li Keqiang’s options

have narrowed down to either stimulating China’s economy or missing his 2014 growth target of 7.5%. The weakest industrial-output expansion since the global financial crisis, and the moderating investment and retail sales growth indicated in data released September 13, underscore the risks of a deepening economic slowdown led by a slumping property market. Helen Qiao, Chief Greater China Economist at Morgan Stanley, Hong Kong said this is a pretty important wakeup call for the Chinese government. The government is trying hard to reach its growth target, which could be possible if they roll out more easing measures now. The slowdown in August economic data that showed a second straight decline in imports and a 40% drop in the broadest measure of new credit will test Li Keqiang’s resolve to avoid stronger monetary stimulus to meet his 7.5% goal. According to the International Monetary Fund, an unprecedented lending spree from 2009 to 2013 led to a surge in debt on a scale that has triggered banking crises in other economies, underscoring the premier’s reluctance to stimulate. (Bloomberg)

Regional

Nikken Sekkei to unveil $12bn projects at Dubai show –

Japanese architecture firm, Nikken Sekkei will showcase $12bn worth of projects, to be developed in the UAE, Saudi Arabia, Russia and Mongolia, at the upcoming Cityscape Global exhibition. The event is scheduled from September 21, 2014 to

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September 23, 2014 at the Dubai International Convention & Exhibition Centre. (Bloomberg)

SABIC, CAS collaborate on technology research – Saudi

Basic Industries Corporation (SABIC) and the Chinese Academy of Sciences (CAS) have signed a strategic collaboration agreement to further research, intellectual exchange and talent development. The five-year agreement with a multi-million US dollar investment by SABIC will cover joint research in the chemical and chemical engineering fields to develop advanced technologies, which will allow SABIC to bring the results of this collaborative research to the market. (GulfBase.com)

Savola to sell its entire stake in Masharef Project for SR593.5mn; hires JPM for $4.3bn Americana bid – Savola

Group has signed an agreement to sell its entire stake in Masharef Project, a real estate development project located in Jeddah, to Kinan International Company for Real Estate Development. The sold 30.4% stake represents Savola's entire ownership in Masharef at a total price of SR593.5mn. The buyer, 29.9% owned by Savola, will pay for the stake in four installments to December 2017. Savola will book a net capital gain of around SR187mn, which will be reflected in its 3Q2014 financials. Proceeds from the sale will be used to support the firm's core businesses of food and retail. Meanwhile, according to sources, Savola Group has hired JPMorgan Chase & Co (JPM) to advise on a potential bid for Kuwait Food business (Americana). Non-binding bids for the $4.3bn Americana are due next month. (Tadawul, Bloomberg)

SCC’s Turkish subsidiary signs SR97mn contracts – Saudi

Cable Company (SCC) announced that its Turkey-based subsidiary, Demirer Kablo has signed a contract for supply, installation and inspection of power cables in the Middle East region. The project will cost SR97mn and will be financed through a letter of credit. The company is expected to complete the project by July 2016. (Tadawul)

Aljazira Takaful gets SAMA approval for its insurance product – Aljazira Takaful Taawuni Company (Aljazira Takaful)

has obtained the Saudi Arabian Monetary Agency’s (SAMA) final approval for using its Rental Protection Plan product. (Tadawul)

Saudi Arabia eyes SR75bn investments in JIC – According to

Arab News, the Saudi Arabian government aims to attract foreign investments worth SR75bn and create about 100,000 jobs at its Jazan Industrial City (JIC). The main attraction of the new industrial city project is that if major companies are ready to invest and transfer their technology, the government will pay them 75% of their project cost in soft loans spread over 20 years. (GulfBase.com)

ECRA: Saudi-Egypt electricity grid project to be finalized soon – Saudi Arabia’s Electricity & Co-Generation Regulatory

Authority’s (ECRA) Governor, Dr. Abdullah Al-Shehri said the Saudi-Egyptian Electricity Grid project is about to be finalized. ECRA is seeking to boost its activities by introducing international experts to help monitor some of its local operations. Infrastructure construction for the joint Saudi-Egyptian Electricity Grid project was meant to begin in 2015, but has been delayed. The project will allow both Saudi Arabia and Egypt to generate and share an additional 3,000 megawatts of electricity during peak hours via a 20-kilometer long underwater cable crossing the Gulf of Aqaba. (GulfBase.com)

AGIC, SK Gas sign JV deal for PDH plant – Advanced

Petrochemical Company (APC) announced that its subsidiary, Advanced Global Investment Company (AGIC) has signed a joint venture agreement with SK Gas Company to establish SK

Advanced Company Limited (SKC) in Ulsan, Korea for the production of propylene (PDH Plant). The total cost of the PDH Plant is expected to be around SR3.75bn and it will be financed 40% by equity from shareholders and 60% by SKC through borrowing from lenders. AGIC will own 35% equity stake, which will be financed by APC. The project has commenced the construction activities and the PDH plant is scheduled to start up in 1H2016, with a design capacity of 600,000 metric tons per annum. (Tadawul)

Mashreq opens smart banking branch in Al Ain – Mashreq

Bank has opened a smart banking branch in Al Ain. The branch offers transactional, payment, wealth, small business, private banking and corporate and institutional banking services. Other offers to be rolled out within the first 100 days of the branch’s opening will include a Takaful offering with free accidental coverage of AED500,000 as well as gift vouchers for loans taken through the bank. (GulfBase.com)

Empower secures $128mn financing facility from DIB –

Empower, a district cooling services provider, has secured a $127.8mn financing from Dubai Islamic Bank (DIB), marking the first Islamic financing facility availed by the company. The facility has been granted for five years tenure, payable over half yearly installments, which will fund Empower’s multi-plant district cooling network in Dubai’s Business Bay area. (GulfBase.com)

Emaar looks to raise AED5.8bn from malls unit's IPO –

Dubai based Emaar Properties is seeking to raise as much as AED5.8bn from an initial public offer of shares in its shopping malls unit Emaar Malls Group (EMG). Emaar expects to sell 2bn shares in EMG, representing 15.4% of the unit's share capital. (Reuters)

Emaar unveils BLVD Heights residences – Emaar Properties

has unveiled BLVD Heights in Downtown Dubai. The new project comprises two residential towers with a joint podium or platform and boasts 280 luxurious residential apartments consisting of one to three rooms. Sales were held on a first-come first-served basis on September 13, 2014. (GulfBase.com)

Dubai RTA completes phase II of Jumeirah Corniche project – Dubai’s Roads & Transport Authority (RTA) has completed the

second phase of the Jumeirah Corniche Development project spanning 2.5 kilometers. The RTA added that the beach side will extend to 4.5 km after the development project and is due to open within September 2014. (GulfBase.com)

Tabreed, MEL sign long-term deal – National Central Cooling

Company (Tabreed) has signed a long-term concession agreement with Meraas Leisure & Entertainment (MEL) to provide 45,600 tons of cooling to Meraas’ new Dubai Parks & Resorts development in Jebel Ali. The district cooling structure being developed by Tabreed is expected to be completed in 2016. (DFM)

Dubai SME, EMF sign MoU – Dubai SME, the agency of the

Department of Economic Development mandated to promote the SME sector, and Epoc Messe Frankfurt (EMF) have signed a MoU in order to encourage the development of local SMEs within the security sector. (Bloomberg)

SCAD: Abu Dhabi non-oil exports rise by 11.5% – According

to Statistics Centre–Abu Dhabi (SCAD), non-oil exports from Abu Dhabi rose 11.5% in 2Q2014, as the Emirate continued to build its transportation infrastructure. At AED27.6bn, non-oil imports in 2Q2014 were up 7.5% YoY and represented about three times the value of non-oil exports, which stood at AED9.53bn. Manufactured goods were the largest category among non-oil exports, increasing by AED245mn or 10.8% YoY. Exports of non-ferrous metals increased by AED84mn, offsetting

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a decrease in iron and steel exports, which fell by AED83mn. Almost 86% of Abu Dhabi’s non-oil exports went to Asia in 2Q2014. Saudi Arabia was the leading destination with AED1.5bn worth of exports, followed by India. Exports to Africa stood at 6.3% and Europe at 5.8%. Asia was also the top destination for Abu Dhabi’s re-exports in 2Q2014; taking in 83.5% of total re-exports. (Bloomberg)

Markaz: GCC primary issue of bonds and Sukuk reaches $56.7bn in 1H2014 – Kuwait Financial Centre (Markaz) in its

GCC Bonds & Sukuk Market Survey said that aggregate primary issuance of bonds and Sukuk in the GCC totaled $56.71bn in 1H2014, a 24.71% increase from 1H2013. In June 2014, a total of $15.55bn was raised through 44 issues, the most active month in terms of both the amount raised and the number of issuances. The GCC bonds market is composed of sovereign and corporate bonds and Sukuk issuances denominated in local and foreign currencies. A total of $24.57bn was raised by Sovereign and Corporate bond and Sukuk issuances in 1H2014, an increase of 2.09% from 1H2013. Conventional issuances raised $18.02bn, or 73.34% of the total amount raised in GCC bonds and Sukuk market during 1H2014. This was a substantial increase of 44.31% as compared to 1H2013. Sukuk issuance totaled $6.55bn in 1H2014. (GulfBase.com)

KNPC selects NBK Capital to advise on Clean Fuels Project – Kuwait National Petroleum Company (KNPC) has chosen

National Bank of Kuwait's investment banking arm, NBK Capital, to advise it on financing options for its multi-billion-dollar Clean Fuels Project. The Clean Fuels Project will upgrade and expand two of the Gulf Arab state's largest existing refineries with a focus on producing higher-value products such as diesel and kerosene for export. NBK Capital will evaluate funding requirements and structures for the state-run refiner and will be in charge of raising finance on the best possible terms for KNPC. The project is expected to be completed by May 2018 and to be fully operational by 2018-end. (Reuters)

Bank Muscat enhances debit card security for online transactions – Bank Muscat, in association with Visa, has

enhanced its debit card security for online transactions. The initiative to introduce ‘Verified by Visa’ feature for debit cards comes as part of the bank’s strategy to take the lead in introducing innovative products and services. Bank Muscat was the first bank in Oman to introduce this feature for its credit cards in 2009 and is now taking the lead for debit cards as well. Incidentally, it is also amongst few banks in the region to offer this enhanced security to its debit cardholders. (GulfBase.com)

CBO’s foreign assets grow 12.4% – Central Bank of Oman’s

(CBO) foreign assets as at June 2014-end rose to more than OMR7.1bn, a growth by 12.4% as compared to the OMR6.3bn in June 2013. CBO witnessed a growth in foreign currency deposits, which rose to OMR1.2bn by June 2014-end, a growth by OMR201mn YoY. The reserve account with the International Monetary Fund (IMF) rose from OMR146.3mn to OMR154.1mn. The value of securities also rose to about OMR5.7bn as compared to OMR5.1bn as at June 2013-end. CBO statistics point out that the total assets of the bank by the end of June 2014 rose to OMR7.3bn; a growth by OMR801mn YoY supported by the increase in foreign currency deposits, securities, fixed assets and bullions. The money issued by CBO as at June 2014-end, rose to OMR1.5bn, an increase by OMR230.5mn YoY. (GulfBase.com)

Raysut Cement, Barwaaqo sign JV deal – Raysut Cement

Company has signed a joint venture (JV) agreement with Barwaaqo Cement Company - Somali land. Under the terms of the agreement, a terminal shall be constructed for the Packing

and distribution of bagged and bulk cement using the latest technologies and provided with latest equipment and machinery at Berbera port – Somali land with a storing capacity of 12,000 tons. The total investment cost of the project is about $7.5mn. The construction works and the terminal operation is expected to be completed by 2015-end. (MSM)

Al Fajar shareholders to approve dividends – Al Fajar Al

Alamia Company’s (Al Fajar) board of directors has invited shareholders for the company’ ordinary annual general meeting to consider and approve cash dividend of 5% on paid up share capital equivalent to baiza 5 for each share, as well as to authorize the BoD to propose and pay interim dividends based on the available profits for the year 2013-14 up to a maximum amount of 10% of the paid up capital (10 baize per share). (MSM)

CIO: Bahrain GDP grows 5.6% in 2Q2014 – According to

Central Informatics Organization (CIO), Bahrain's economy grew by 5.6% in 2Q2014 at constant prices and 7% at current prices on a YoY basis. The oil sector rose by 9.3% at constant prices and 12.5% at current prices, and the non-oil sector rose by 4.7% at constant prices and 5.2% at current prices. Bahraini economy had posted reasonable level of growth despite regional and global instability, thanks to the increase of oil and gas production, as well as the good results achieved by non-oil sectors. (GulfBase.com)

Fuji Electric begins work on Dilmunia substation – Japan-

based Fuji Electric, which has been awarded with a supply and installation contract, has begun the work on the primary substation serving the landmark Dilmunia at Bahrain health Island. The 66kV substation is a developmental milestone, as it will deliver electricity to roughly 40% of the ambitious 125-hectare, $1.6bn man-made island. The civil works contract has been awarded to Bahrain-based contractor Cebarco, which has recently started work on the site that will accommodate the substation. Fuji Electric will build the substation itself abroad and then deliver it to Bahrain in stages. (Bahrain Bourse)

Alba plans listing on Tadawul – According to Sources,

Aluminium Bahrain (Alba) is planning to cross list its shares in Saudi Stock Exchange (Tadawul), seeking to improve its valuation rather than raise money from the listing. Alba has a primary listing in Bahrain with its global depository receipts trading in London. (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 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

(0.3%)

0.1% 0.1%

(0.1%)

(0.4%) (0.4%)

0.6%

(0.8%)

(0.4%)

0.0%

0.4%

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 1,229.70 0.0 0.0 2.0 DJ Industrial 16,987.51 0.0 0.0 2.5

Silver/Ounce 18.64 0.0 0.0 (4.3) S&P 500 1,985.54 0.0 0.0 7.4

Crude Oil (Brent)/Barrel (FM Future)

97.11 0.0 0.0 (12.4) NASDAQ 100 4,567.60 0.0 0.0 9.4

Natural Gas (Henry Hub)/MMBtu

3.80 0.0 0.0 (12.4) STOXX 600 344.27 0.0 0.0 (1.3)

LPG Propane (Arab Gulf)/Ton 108.25 0.0 0.0 (14.3) DAX 9,651.13 0.0 0.0 (5.0)

LPG Butane (Arab Gulf)/Ton 125.50 0.0 0.0 (8.1) FTSE 100 6,806.96 0.0 0.0 (1.0)

Euro 1.30 0.0 0.0 (5.7) CAC 40 4,441.70 0.00 0.0 (2.7)

Yen 107.34 0.0 0.0 1.9 Nikkei 15,948.29 0.0 0.0 (4.0)

GBP 1.63 0.0 0.0 (1.7) MSCI EM 1,061.53 0.0 0.0 5.9

CHF 1.07 0.0 0.0 (4.3) SHANGHAI SE Composite 2,331.95 0.0 0.0 8.7

AUD 0.90 0.0 0.0 1.4 HANG SENG 24,595.32 0.0 0.0 5.6

USD Index 84.24 0.0 0.0 5.3 BSE SENSEX 27,061.04 0.0 0.0 29.7

RUB 37.75 0.0 0.0 14.9 Bovespa 56,927.81 0.0 0.0 12.1

BRL 0.43 0.0 0.0 1.1 RTS 1,213.27 0.0 0.0 (15.9)

202.7

168.6

151.2