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QE Intra-Day Movement

Qatar Commentary

The QE index rose 0.8% to close at 13,699.5. Gains were led by the Banks &

Financial Services and Consumer Goods & Services indices, gaining 1.7% and

0.3%, respectively. Top gainers were Doha Insurance Co. and Masraf Al Rayan

rising 8.3% and 2.9%, respectively. Among the top losers, Qatar General Ins.

and Reins. Co. fell 1.9%, while Qatar Insurance Co. declined 1.5%.

GCC Commentary

Saudi Arabia: The TASI Index rose marginally to close at 11,116.8. Gains were led by the Hotel & Tou. and Tele. & IT indices, rising 2.1% and 0.9%, respectively. WAFA Ins. gained 10.0%, while Sanad Insurance was up 9.8%.

Dubai: The DFM Index gained 1.5% to close at 5,140.8. The Banking index rose 1.8%, while the Inv. & Fin. Ser. index was up 1.7%. Gulfa Mineral Water & Processing Ind. surged 10.2%, while Emaar Properties Co. was up 4.5%.

Abu Dhabi: The ADX benchmark index gained 0.9% to close at 5,128.6. The Real Estate index rose 1.5%, while the Banking index was up 1.2%. Finance House Co. gained 11.1%, while Bank of Sharjah was up 3.3%.

Kuwait: The KSE Index fell 0.1% to close at 7,422.4. The Insurance index declined 0.6%, while the Consumer Goods index was down 0.5%. Commercial Bank Of Kuwait declined 6.8%, while Pearl Of Kuwait Real Est. fell 5.7%.

Oman: The MSM Index declined 0.2% to close at 7,355.9. All the indices ended in green. Oman Telecommunication fell 2.0%, while Sohar Power was down 1.1%.

Bahrain: The BHB Index gained 0.2% to close at 1,474.4. The Industrial index rose 1.0%, while the Services index was up 0.3%. Bahrain Duty Free Complex gained 3.8%, while Aluminum Bahrain was up 1.0%.

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

Doha Insurance Co. 32.50 8.3 213.7 30.0

Masraf Al Rayan 56.90 2.9 1,087.6 81.8

Qatar Islamic Bank 118.90 2.3 101.3 72.3

Medicare Group 132.50 1.9 21.5 152.4

Al Khaleej Takaful Group 47.95 1.9 177.7 70.8

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

Ezdan Holding Group 18.71 (0.1) 2,044.8 10.1

Vodafone Qatar 21.24 (0.0) 1,535.6 98.3

Masraf Al Rayan 56.90 2.9 1,087.6 81.8

Salam International Investment Co. 20.00 (1.5) 717.0 53.7

Mazaya Qatar Real Estate Dev. 25.00 0.6 444.8 123.6

Market Indicators 01 Sep 14 31 Aug 14 %Chg.

Value Traded (QR mn) 429.7 956.8 (55.1)

Exch. Market Cap. (QR mn) 725,835.3 721,181.0 0.6

Volume (mn) 9.7 17.5 (44.3)

Number of Transactions 4,707 8,467 (44.4)

Companies Traded 39 41 (4.9)

Market Breadth 23:12 22:11 –

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

Total Return 20,432.69 0.8 1.9 37.8 N/A

All Share Index 3,462.80 0.7 1.3 33.8 17.0

Banks 3,374.94 1.7 1.4 38.1 16.5

Industrials 4,548.14 (0.3) (0.4) 29.9 18.4

Transportation 2,296.28 (0.0) 3.7 23.6 14.7

Real Estate 2,885.17 0.1 2.0 47.7 15.4

Insurance 4,077.34 (0.7) (0.5) 74.5 12.9

Telecoms 1,574.36 0.3 8.2 8.3 22.3

Consumer 7,464.57 0.3 0.6 25.5 27.9

Al Rayan Islamic Index 4,729.55 0.8 2.2 55.8 20.4

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

Emaar Properties Dubai 11.65 4.5 111,917.9 67.7

Bank Of Sharjah Abu Dhabi 1.90 3.3 323.5 6.1

Union National Bank Abu Dhabi 6.95 3.0 948.4 24.3

Masraf Al Rayan Qatar 56.90 2.9 1,087.6 81.8

Dubai Islamic Bank Dubai 8.10 2.5 27,831.0 51.1

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

Com. Bank Of Kuwait Kuwait 0.69 (6.8) 0.2 3.5

Oman Telecom. Co. Muscat 1.73 (2.0) 389.4 14.6

Boubyan Bank Kuwait 0.50 (2.0) 124.3 (4.5)

Qatar Gen. Ins. & Reins. Qatar 46.10 (1.9) 1.3 15.5

Kuwait Foods (Americana) Kuwait 3.14 (1.9) 8.8 24.6

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%

Qatar General Ins. and Reins. Co. 46.10 (1.9) 1.3 15.5

Qatar Insurance Co. 98.50 (1.5) 49.3 85.2

Salam International Investment Co 20.00 (1.5) 717.0 53.7

Qatari Investors Group 58.20 (1.4) 29.4 33.2

Gulf Warehousing Co. 50.00 (1.0) 5.3 20.5

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

Masraf Al Rayan 56.90 2.9 60,851.4 81.8

QNB Group 197.00 1.8 54,956.6 14.5

Ezdan Holding Group 18.71 (0.1) 38,341.5 10.1

Vodafone Qatar 21.24 (0.0) 32,770.5 98.3

Islamic Holding Group 101.40 1.9 30,222.6 120.4

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* 13,699.51 0.8 1.9 0.8 32.0 118.02 199,314.4 17.1 2.3 3.7

Dubai

5,140.78 1.5 4.3 1.5 52.6 751.08 98,786.7 21.3 1.9 1.9

Abu Dhabi

5,128.57 0.9 1.1 0.9 19.5 145.03 140,073.0 14.5 1.8 3.2

Saudi Arabia

11,116.75 0.0 0.7 0.0 30.2 2,850.62 602,121.2 21.4 2.7 2.6

Kuwait 7,422.39 (0.1) 0.3 (0.1) (1.7) 72.90 113,173.0 18.1 1.2 3.7

Oman 7,355.94 (0.2) (0.1) (0.2) 7.6 14.11 27,051.9 11.1 1.7 3.8

Bahrain 1,474.42 0.2 (0.1) 0.2 18.1 0.59 54,388.1 11.3 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)

13,550

13,600

13,650

13,700

13,750

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 0.8% to close at 13,699.5. The Banks & Financial Services and Consumer Goods & Services indices led the gains. The index rose on the back of buying support from Qatari shareholders despite selling pressure from non-Qatari shareholders.

Doha Insurance Co. and Masraf Al Rayan were the top gainers, rising 8.3% and 2.9%, respectively. Among the top losers, Qatar General Insurance and Reinsurance Co. fell 1.9%, while Qatar Insurance Co. declined 1.5%.

Volume of shares traded on Monday fell by 44.3% to 9.7mn from 17.5mn on Sunday. Further, as compared to the 30-day moving average of 17.9mn, volume for the day was 45.6% lower. Ezdan Holding Group and Vodafone Qatar were the most active stocks, contributing 21.0% and 15.8% 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

09/01 France Ministry of the Economy 3M T-Bill Amount Sold 1-September EU3,991M – EU3,993M

09/01 France Ministry of the Economy 6M T-Bill Amount Sold 1-September EU2,093M – EU1,989M

09/01 France Ministry of the Economy 12M T-Bill Amount Sold 1-September EU2,095M – EU1,996M

09/01 Germany Destatis Private Consumption QoQ 2Q2014 0.10% 0.20% 0.80%

09/01 Germany Destatis Government Spending QoQ 2Q2014 0.10% 0.30% 0.40%

09/01 Germany Destatis Capital Investment QoQ 2Q2014 -2.30% -1.30% 2.90%

09/01 Germany Destatis Construction Investment QoQ 2Q2014 -4.20% -3.20% 4.10%

09/01 Germany Destatis Domestic Demand QoQ 2Q2014 0.10% – 0.90%

09/01 Germany Destatis Exports QoQ 2Q2014 0.90% 0.20% 0.00%

09/01 Germany Destatis Imports QoQ 2Q2014 1.60% 0.50% 0.50%

09/01 UK Markit Markit UK PMI Manufacturing SA August 52.5 55.1 54.8

09/01 UK London Gold Market Fix. London Gold Market PM Fix 1-September 1,286.5 – 1,285.8

09/01 Spain Markit Markit Spain Manufacturing PMI August 52.8 53.3 53.9

09/01 Italy Markit Markit/ADACI Italy Manufacturing PMI August 49.8 51.0 51.9

09/01 Italy Italian Treasury Budget Balance August -7.5B – -1.6B

09/01 China China Fed. of Logistics Manufacturing PMI August 51.1 51.2 51.7

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

News

Qatar

Surge in demand for labor camps as worker inflow increases – According to an estimate by Al Asmakh Real Estate

Development Company (AREDC), as many as 1mn new beds would be required to accommodate new workers entering the country and existing labor accommodations need to be upgraded in view of the strict guidelines issued by the National Human Rights Commission (NHRC). As per the NHRC’s new guidelines issued in 2013, double-decker beds in makeshift labor camps on construction sites are banned. Not more than four workers are to be housed in a room in provisional labor lodging at a construction site and the area allocated to each worker in the shared room must at least be 4 square meters of free space. AREDC said in a report that there has been a surge in demand for additional labor camps within Qatar owing to strict implementation of global norms in housing workers on project sites. The report said that around 500,000 more blue-collar workers would be required for ongoing and proposed infrastructure construction. AREDC observed that the upcoming FIFA 2022 World Cup has kicked off a multibillion-dollar construction boom in Qatar, due to which the inflow of new workers has substantially increased. (Gulf-Times.com)

QA launches 787 Dreamliner service to Vienna – Qatar

Airways (QA) has launched its Boeing 787 Dreamliner aircraft on the Vienna route. The rising demand from the region and the airline’s steadfast commitment to the Austrian market has resulted in the Dreamliner’s introduction, bringing an additional capacity of 92% per week compared to the current A320. QA is the first airline to start a scheduled 787 Dreamliner service to Vienna. (Bloomberg)

Dragon Mart to be fully ready before Eid – According to the

Chinese retailer, Dragon Mart’s Marketing & Logistics Manager Yang Qi, all shops in the mart are expected to be open before Eid Al Adha. Currently, 80% of shops in the mart are open, which had earlier announced its opening in July. The mart is located at Barwa Commercial Avenue in the Industrial Area and is spread across 21,000 square meters, housing about 280 shops and stalls. Yang Qi said that around 100,000 people are expected to visit the mart every month. (Peninsula Qatar)

Ooredoo’s Myanmar start-up focuses on pay-as-you-go –

Ooredoo Myanmar’s CEO Ross Cormack said that the company will focus on adding more pay-as-you-go subscribers in Myanmar, but may provide monthly mobile contracts and fixed services in the long-term. Cormack said that the firm has not decided whether to expand into post-paid contracts. Last year,

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

Qatari 66.01% 65.33% 2,883,599.71

Non-Qatari 33.99% 34.66% (2,883,599.71)

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Ooredoo (ORDS) and Norway's Telenor Group won telecom licenses in the Southeast Asian country, whose mobile penetration is among the lowest globally (about 10%). Since its launch in August 2, ORDS has already sold more than 1mn pre-paid SIM cards. (Reuters)

International

AmCham says China subjectively enforcing laws on foreign companies – According to the American Chamber of

Commerce (AmCham), the Chinese government is targeting foreign companies with opaque laws and rules, contributing to a deteriorating environment for investment in the nation. Members of AmCham, which represents US businesses in China, said they have growing perceptions that multinational companies are under selective and subjective enforcement by Chinese government agencies. Greg Gilligan, the AmCham Group’s Chairman, stated that Chinese laws lack transparency and they are at times only vaguely related to the particular case. Dozens of foreign companies are being targeted in probes, with Chinese regulators opening an anti-monopoly investigation on Microsoft Corp. and the state media accusing Apple Inc. of using its iPhone to steal state secrets. Gilligan said AmCham members have serious concerns that Chinese rules are changing again for foreign companies in such a way that it is difficult for local managers to anticipate or adapt to. (Bloomberg)

Hollande, Draghi agree on threat of Eurozone deflation –

French President Francois Hollande and European Central Bank chief Mario Draghi agreed that deflation and weak growth were threatening the European Union's economy. Draghi called last week for greater emphasis on fiscal stimulus over austerity, which irritated German leaders but were welcomed in France because they hinted at a shift away from a current emphasis on budgetary austerity. The two men shared the view that weak growth and a threat of deflation in the European Union were problems that needed to be addressed. France has been singled out as a laggard in an otherwise tepid European recovery due to its weak growth rate, record-high unemployment rate and repeated delays in bringing its public deficit below EU targets. Hollande told Draghi that France – which has already been granted two reprieves on its deficit-reduction targets – would respect commitments to enact structural reforms and bring down the deficit. (Reuters)

Markit: Eurozone factory growth slows in August; Germany posts budget surplus – According to Markit, the Eurozone’s

manufacturing growth slowed slightly more than expected last month as new orders dwindled and factories suffered amid rising tensions in Ukraine. Factories barely increased their prices last month, and manufacturing activity in France fell at the fastest pace in 15 months, which is disappointing news for the ECB just before Thursday's monetary policy-setting meeting. Markit's final manufacturing Purchasing Managers' Index came in at 50.7 for August, the lowest in over a year and below July's 51.8. Still, August did mark the 14th month the index has been above the 50 line that separates growth from contraction. The factory PMI for Germany fell to an 11-month low of 51.4. Similarly, the PMI for France declined to 46.9. Meanwhile, Germany posted a budget surplus of €16.1bn in 1H2014, highlighting the strength of the country's finances at a time when Berlin faces pressure to loosen its fiscal reins and spend more to boost flagging growth in Europe. The data from the Federal Statistics Office showed that the federal government posted a surplus of €4.0bn in the first six months of the year, the first time since 1991. The overall surplus amounted to 1.1% of GDP, which puts Germany on track to post its third straight budget surplus in 2014. Last year, its surplus represented 0.3% of GDP, while it was 0.1% in 2012. (Reuters)

Rising Japanese pay and bonuses offer relief for Abe –

According to government data, Japanese summer bonuses rose in July and regular pay grew for the second straight month, suggesting some firms are gradually raising wages. Data from the labor ministry indicated that real wages, which are adjusted to reflect changes in consumer prices, slipped in July for the 13th straight month, but the pace of decline slowed from the previous month. Wage earners' special payments, which are predominantly summer bonuses, grew 7.1% annually in July after a revised 2.0% gain in June. A ministry official said summer bonuses were favorable so far this year as compared to last year. Regular pay rose 0.7% YoY in July after a revised 0.2% gain in June, which was the first increase in 27 months, indicating regular pay may have hit a bottom. The wage report offers some relief for Prime Minister Shinzo Abe's government after the recent weak economic data suggested that soft exports and a sales tax increase in April could drag on the economy longer than expected. (Reuters)

Retreat in China's PMIs heightens calls for policy easing –

According to recent surveys, growth in China's vast factory sector cooled in August as foreign and domestic demand slowed, spurring new calls for more policy easing to prevent the economy from stumbling once more. The Purchasing Managers' Index (PMI) published by the National Bureau of Statistics fell from a 27-month high to 51.1 in August, slightly less than forecast as factories shed jobs for the 24th consecutive month. Another private PMI was more torpid. The HSBC/Markit PMI eased to 50.2 in August, which is only a shade above the 50-point mark demarcating an expansion in activity from a contraction. The declines in both PMIs prompted some analysts to reiterate their support for more policy action to lift the fading growth momentum in the world's second-biggest economy. (Reuters)

Regional

SAMA publishes new consumer lending regulations – Saudi

Arabian Monetary Agency (SAMA) has published new consumer lending regulations which give it the power to cap retail lending at individual banks and limit the fees that banks can charge. The regulations, published on SAMA’s website, said that the regulator may, at its discretion, impose a restriction on a creditor under which its consumer financing portfolio may not exceed a specified percentage of its total financing portfolio. Also, all fees, costs and administrative services charges collected by banks must not exceed either 1% of the financing amount or SR5,000, whichever is lower. The rules could dent profit growth at banks, especially those that rely heavily on retail activity. Saudi banks' combined consumer loan book stood at SR333.8bn ($89 billion) at the end of March, up 8.6% year-on-year. That was 28.7% of all their lending. (Reuters)

KAEC to launch Al-Talah Gardens villas and Manazel plots – King Abdullah Economic City (KAEC) is expecting yet another

fast sell-out when it launches sales of villas at Al-Talah Gardens 1 phase three and land plots at Manazel Al-Murooj. At the sales events, the villas at Al-Talah Gardens 1 phase III will be offered to families who will enjoy community amenities, including a mosque, school, club house and retail outlets surrounding a green area. The land plots being offered for Manazel 4 are located in the prestigious Al-Murooj district adjacent to the sports complex, extensive parkland, and in close proximity to the golf course and the shores of the Red Sea. (GulfBase.com)

EPM expands capabilities in Saudi Arabia – Emerson

Process Management (EPM) has expanded the capabilities of its Jubail facility to include the production, testing, and servicing of pressure reducing regulators. This investment is part of

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Emerson’s long-term commitment to address the growing needs of its customers in Saudi Arabia and the Middle East region. Emerson Jubail facility, opened in 2011 in partnership with leading industrial enterprise Saudi FAL, can now deliver an annual production capacity of 2,500 Fisher pressure reducing regulators, which are used in a wide range of applications including process and specialty gas processing, natural gas distribution, and fuel gas supply. The facility can also conduct full assembly and testing of Emerson’s regulators, and provide complete repair and calibration services. (GulfBase.com)

SPC’s affiliate wins pipe supply contract – Global Pipes

Company, an affiliate of Saudi Steel Pipe Company (SPC) has won a contract worth more than SAR292mn to manufacture and supply 32 inch pipes for Saudi Aramco. These pipes will be used to transport gas and liquefied natural gas. This contract is the first direct endorsement of Saudi Aramco to SPC’s affiliate. (Tadawul)

Al-Khodari signs agreement for surplus equipment auction – Abdullah A. M. Al-Khodari Sons Company (Al-Khodari) as part

of its annual plan to upgrade its plant and equipment, has signed an agreement with Abdullah Fouad Holding Company (Auction Division) to conduct an auction of its surplus equipment to be held between October 28 to October 30, 2014 at the Al Khodari yard in Dammam. (Tadawul)

SAMA extends temporary approval for UCA’s insurance products – United Cooperative Assurance Company (UCA) has

announced that it received a letter from the Saudi Arabian Monetary Agency (SAMA) on August 31, 2014 containing an extension of the temporary approval for three months starting September 1, 2014 up to November 30, 2014 for the following products: Motor – All Risks (Commercial), Motor Third-Party Liability and Motor – All Risks (Private). (Tadawul)

ANB insurance announces issuance of property insurance policy – Metlife-AIG-ANB Cooperative Insurance Company

(ANB insurance) announced the issuance of a property insurance policy for a face value of SR217.84mn with an annual premium of SR103,472 in favor of American International School, which is housed in the Bustan Village compound in Riyadh owned by Olayan Real Estate Company. The contract is for one year effective September 1, 2014 and renewable based on the mutual agreement. The board of directors’ member Mrs. Lama Alhajj Ibrahim has a direct interest in the contract as the MD of the Bustan Village compound. (Tadawul)

Maaden’s subsidiary begins commercial production – Saudi

Arabian Mining Company (Maaden) announced the beginning of commercial production of the Aluminum Smelter at its subsidiary (Maaden Aluminum Company (MAC)) on September 1, 2014. The smelter has an annual production capacity of 740,000 tons of aluminum, with commercial operations expected to begin impacting Maaden's financials from 3Q2014 onward. (Tadawul)

Al Alamiya receives SAMA’s temporary approval for insurance products – Al Alamiya for Cooperative Insurance

Company announced that it received a letter from the Saudi Arabian Monetary Agency (SAMA) on August 31, 2014 containing temporary approval for use of insurance products for three months starting September 1, 2014 to November 30, 2014 for Comprehensive Motor Insurance and Motor Third-Party Liability Insurance. (Tadawul)

Salama receives SAMA’s temporary approval for insurance products – Salama Cooperative Insurance Company

announced that it received a letter from the Saudi Arabian Monetary Agency (SAMA) on August 31, 2014 containing temporary approval for use of insurance products for three

months from September 1, 2014 to November 30, 2014 for the following products: Motor - Comprehensive and Motor – TPL. (Tadawul)

Emirates NBD plans Tier 1 bond – Emirates NBD will

announce plans to sell a benchmark-sized capital-boosting bond, looking to take advantage of favorable markets to strengthen its reserves. Emirates NBD has chosen Citigroup, Commerzbank, Deutsche Bank, Morgan Stanley, Standard Chartered and its own investment banking arm to arrange investor meetings ahead of a potential issue. The US dollar-denominated bond, which will boost the bank's Tier 1 - or core - capital, will have a perpetual tenor which can only be redeemed by the bank after six years and be of benchmark size - traditionally understood to mean worth upwards of $500mn. (Reuters)

UAE stakeholders close ranks to ensure usage of green diesel – Emirates National Oil Company (ENOC) has joined

hands with governmental stakeholders to implement the UAE Federal Cabinet decision no. 37 of 2013, on making the use of the environment-friendly Green Diesel mandatory across the UAE. A stakeholder meeting led by ENOC Industrial Products Marketing (EIPM) at ENOC Headquarters was attended by representatives of Emirates Authority for Standardization & Metrology (ESMA), Dubai Department of Economic Development (DED), Dubai Civil Defense, Dubai Municipality and Emarat. The stakeholders emphasized the need to take concerted action to ensure the security of supply and usage of the new ‘Ultra-low Sulfur Diesel,’ which is more environment-friendly and helps in reducing toxic vehicle exhaust emissions. An inspection campaign will be held to ensure that the diesel used conforms to the new Federal standards from September 7, 2014. (Gulf-Base.com)

Sweid & Sweid launches high-end office project – Dubai-

based Sweid & Sweid Development announced that it has commenced construction work on The Edge; a commercial building in the heart of Dubai Internet City (DIC). The Edge will offer boutique offices and single-owner, large and continuous commercial space in Dubai. The Edge when built will be spread over 100,000 square feet of gross floor area stretched out over seven stories, including retail areas on the ground floor. In addition, the building will boast of over 80,000 square feet of underground parking space. (GulfBase.com)

Deyaar expands portfolio with launch of ‘Montrose’ –

Deyaar Development announced the launch of Montrose, a project which comprises three towers – a hotel apartment and two residential towers. The residential units at Montrose will open for sale on September 6, 2014 at Deyaar’s new sales and service center in the Burlington Tower, Business Bay. Interested investors pre-registering online will receive priority consideration. Each tower comprises three basement levels and 19 stories. The two residential towers feature 68 one-bedroom, 68 two-bedroom, five three-bedroom and two four-bedroom apartments. The hotel apartment tower has been designed to feature 88 studios, as well as 68 one-bedroom and 24 two-bedroom units. (DFM)

Meraas Holding seeks up to $4bn loan – Meraas Holding, a

state-owned property firm, is in talks with banks to raise up to $4bn. The company is developing some of Dubai's most ambitious real estate projects. (Reuters)

Emirates not interested in Qantas investment – Dubai-based

airline, Emirates’ chief commercial officer, Thierry Antinori said that airline is not interested in investing in the international operations of Qantas. He said that doesn't fit with the airline's

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strategy. Qantas is hiving off its international arm from its domestic business. (Reuters)

Nakheel opens community retail mall – Dubai developer

Nakheel said that it has opened Jumeirah Park Pavilion, the first of five community retail malls underway across Dubai. Jumeirah Park Pavilion is a 10,600 square meter retail and dining facility in the heart of New Dubai. It has 28 shops, restaurants and cafes, including a Geant Easy supermarket as the anchor store. Others are underway at Discovery Gardens (already partly open and due to fully open this month), Al Furjan, International City, Jumeirah Islands and Badrah, with more in the pipeline. The company is also building large-scale malls at Palm Jumeirah, Deira Islands and Jumeirah Village and expanding Dragon Mart and Ibn Battuta malls. (Gulf-Base.com)

MIST signs research agreement with Tadweer – The Masdar

Institute of Science and Technology (MIST) and Tadweer (Center of Waste Management – Abu Dhabi), have signed a two-year research agreement focused on improving the process for the production of biodiesel from waste cooking oil. The research will focus on achieving fundamental improvement of the process of converting waste cooking oil to biodiesel through further experimentation and sensitivity studies. Processing and reusing waste cooking oil as fuel is an environmentally friendly sustainable energy solution that can contribute to the targets for renewable energy uptake within the UAE and abroad. Biodiesel is bio-renewable, carbon-neutral and rapidly biodegradable. (GulfBase.com)

Aldar Properties completes sale of residential tower – Aldar

Properties has completed the sale of a residential tower in Marina Square to MAG F5 Holdings, a joint venture between MAG Group and Fortune|5 Investments. The sale is a part of Aldar’s broader strategy of injecting capital into new developments and to diversify its customer base with institutional investors. The tower, located in Marina Square on the Reem Island, comprises 202 completed units that are ready for handover across 44,424 square meter of sellable area. (ADX)

ADIB, Barclays conclude sale of UAE retail banking business – Abu Dhabi Islamic Bank (ADIB) and Barclays have

announced the formal completion of the sale of Barclays’ UAE Retail Banking business with effect from September 1, 2014. Both the companies will now work closely to ensure the seamless transition of over 110,000 customers onto the ADIB banking platform. In order to ensure an uninterrupted service, clients will be supported by the 145 staff personnel that have joined ADIB from Barclays while continuing to operate out of their existing branches in Dubai and Abu Dhabi. Pursuant to the transaction, ADIB will serve over 700,000 customers across a network of 85 branches, 660 ATMs, internet and mobile platforms backed by two call centers. (Bloomberg)

Masdar delivers Samoa’s 1st wind farm – Abu Dhabi based

renewable energy company, Masdar has delivered Samoa’s first wind farm. The wind farm will supply 1,500 MWh of power annually, delivering $475,000 in annual fuel cost savings. The 550 kWe project is the second completed under the UAE’s $50mn Pacific Partnership Fund, which is managed by Abu Dhabi Fund for Development. (GulfBase.com)

Kuwait's CPI inflation eases to 2.7% in July 2014 – Inflation

as per the consumer price index (CPI) of Kuwait eased from 2.9% YoY in June 2014, to 2.7% YoY in July 2014, amid a slowdown across most sectors. Core inflation has outstripped the headline inflation rate for three months now on housing price pressures. Food price inflation maintained its downward trend in July, edging down from 2.5% YoY in June to 2.0% YoY in July.

The relatively lower international food prices played a significant role in keeping local food inflation more subdued in 2014. (GulfBase.com)

Iran to supply natural gas to Oman – Iran has announced that

it will soon begin supplying gas to Oman, as per the agreement reached between the two countries. Iranian Oil Minister Bijan Namdar Zanganeh said that the gas negotiations with Oman are over and as both sides have agreed, Iran will export 20mn cubic meters (mcm/d) of gas per day to Oman in the near future. (GulfBase.com)

Cluttons: Transfer of cargo activities to Sohar vital to Oman’s growth – According to international real estate

consultant, Cluttons, the transfer of most commercial cargo activities from the Muscat port to Sohar, is critical for boosting tourism and future industrial development in Oman. The Oman government’s deadline for receiving container, cargo, vehicle carriers and project materials vessels at Sultan Qaboos Port (SQP) was set on August 31, 2014 after which they will be transferred to the Sohar Industrial Port. The last four months of 2015 will be then allocated for clearing goods at the Muscat port warehouses and yards before it is converted into a tourism hub. (GulfBase.com)

Haya Water to invest OMR100mn annually over next decade – Oman based Haya Water will be investing an average of

OMR100 million each year on various projects in the next decade, including the construction of sewage network, sea fallout system and sewage treatment plants. Haya Water’s projects general manager said that a budget of around OMR2.2bn had been envisaged for the implementation of projects between 2002 and 2025. (GulfBase.com)

Gulf Air cuts losses by 1/3rd on higher revenue – Gulf Air

has claimed that it has cut YoY losses by nearly a third and increased overall revenue by 10% in 1H2014, due to increased revenues. In May, the airline had said that it had cut losses by more than BD100mn or 52% during the January-December period of 2013, netting YoY cost-savings of 28% and 14% passenger yield increase. The airline’s target for 2014 is to continue toward long-term sustainability, further cutting losses. (GulfBase.com)

Kerzner to open One&Only resort in Bahrain – Kerzner

International Holdings has entered into an agreement with Sevens Holding to develop and operate a new One&Only resort in Seef, Bahrain. This new resort is scheduled to begin welcoming guests in 2016. With approximately 150 luxurious guest rooms and suites as well as villas and estates, world-class dining and retail options, plus a One&Only Spa, the resort is set to become a destination for both business and leisure. (GulfBase.com)

Fitch: No impact on Batelco's ratings from Sivasankaran bankruptcy – Fitch Ratings has said that there is no impact on

Bahrain Telecommunications Company's (Batelco; BBB-/Negative) ratings, following the Supreme Court of the Seychelles' recent declaration of bankruptcy of Mr. Sivasankaran, a creditor of a Batelco subsidiary. Given the lack of certainty around the timing and amount recoverable from the creditor, Fitch said it has conservatively not reflected any potential benefit from these developments in Batelco's ratings. (Reuters)

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 (* Market closed on 01 September 2014) Source: Bloomberg (* Market closed on 01 September 2014)

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

0.0%

0.8%

(0.1%)

0.2%

(0.2%)

0.9%

1.5%

(0.8%)

0.0%

0.8%

1.6%

2.4%

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 1,286.00 (0.1) (0.1) 6.7 DJ Industrial* 17,098.45 0.0 0.0 3.1

Silver/Ounce 19.47 0.0 0.0 0.0 S&P 500* 2,003.37 0.0 0.0 8.4

Crude Oil (Brent)/Barrel (FM Future)

102.79 (0.4) (0.4) (7.2) NASDAQ 100* 4,580.27 0.0 0.0 9.7

Natural Gas (Henry Hub)/MMBtu*

4.03 0.0 0.0 (7.3) STOXX 600 342.86 0.3 0.3 4.4

LPG Propane (Arab Gulf)/Ton* 102.88 0.0 0.0 (18.5) DAX 9,479.03 0.1 0.1 (0.8)

LPG Butane (Arab Gulf)/Ton* 120.00 0.0 0.0 (12.1) FTSE 100 6,825.31 0.1 0.1 1.1

Euro 1.31 (0.0) (0.0) (4.5) CAC 40 4,379.73 (0.0) (0.0) 2.0

Yen 104.35 0.2 0.2 (0.9) Nikkei 15,476.60 0.3 0.3 (5.0)

GBP 1.66 0.1 0.1 0.3 MSCI EM 1,090.57 0.2 0.2 8.8

CHF 1.09 (0.1) (0.1) (2.9) SHANGHAI SE Composite 2,235.51 0.8 0.8 5.6

AUD 0.93 (0.1) (0.1) 4.7 HANG SENG 24,752.09 0.0 0.0 6.2

USD Index* 82.75 0.0 0.0 3.4 BSE SENSEX 26,867.55 0.9 0.9 26.9

RUB 37.29 0.5 0.5 13.4 Bovespa 61,141.27 (0.2) (0.2) 18.7

BRL 0.45 (0.3) (0.3) 5.2 RTS 1,177.66 (1.1) (1.1) (18.4)

196.9

169.2

151.5