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QE Intra-Day Movement

Qatar Commentary

The QE index declined 3.1% to close at 13,443.2. Losses were led by the

Telecoms and Transportation indices, declining 10.0% and 3.1%, respectively.

Top losers were Ooredoo and Vodafone Qatar, falling 10.0% each. Among the

top gainers, Qatar Insurance Co. rose 2.0%, while QNB Group was up 1.8%.

GCC Commentary

Saudi Arabia: The TASI index rose 0.1% to close at 11,042.0. Gains were led by the Insurance and Telecommunication & IT indices, rising 1.3% and 0.7%, respectively. Al Alamiya gained 10.0%, while WAFA Insurance was up 9.9%.

Dubai: The DFM index declined 1.2% to close at 4,928.2. The Real Estate & Construction index fell 1.6%, while the Transportation index was down 1.0%. Arab Insurance Group fell 9.8%, while Ajman Bank was down 4.0%.

Abu Dhabi: The ADX benchmark index fell 1.1% to close at 5,071.0. The Industrial index declined 3.2%, while the Energy index was down 1.8%. Gulf Livestock Co. fell 10.0%, while Union Cement Co. was down 9.8%.

Kuwait: The KSE index rose 0.1% to close at 7,403.8. The Technology index gained 1.4%, while the Basic Material index was up 1.2%. Housing Finance Co. rose 10.6%, while Taiba Kuwaiti Holding Co. was up 7.1%.

Oman: The MSM index rose 0.2% to close at 7,361.2. Industrial index rose 0.2%, while the Financial index rose marginally. Takaful Oman Insurance gained 2.0%, while Dhofar Int. Dev. And Inv. Hold. was up 1.8%.

Bahrain: The BHB index gained 0.1% to close at 1,475.7. The Hotel & Tourism index rose 2.1%, while the Industrial index was up 1.4%. Gulf Hotel Group gained 2.9%, while Aluminium Bahrain was up 1.4%.

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

Qatar Insurance Co. 100.00 2.0 28.5 88.0

QNB Group 202.00 1.8 2,419.4 17.4

Gulf Warehousing Co. 50.50 1.0 20.5 21.7

Widam Food Co. 60.80 0.5 101.7 17.6

Mannai Corp. 112.00 0.0 32.0 24.6

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

Mazaya Qatar Real Estate Dev. 24.50 (1.2) 2,974.0 119.1

Ezdan Holding Group 18.70 (2.9) 2,744.0 10.0

QNB Group 202.00 1.8 2,419.4 17.4

Masraf Al Rayan 52.00 (7.8) 2,385.0 66.1

Industries Qatar 193.50 (1.3) 2,335.8 14.6

Market Indicators 28 Aug 14 27 Aug 14 %Chg.

Value Traded (QR mn) 1,678.0 967.9 73.4

Exch. Market Cap. (QR mn) 719,428.8 736,429.6 (2.3)

Volume (mn) 22.0 18.0 22.0

Number of Transactions 10,445 8,980 16.3

Companies Traded 43 42 2.4

Market Breadth 4:37 12:24 –

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

Total Return 20,050.35 (3.1) (2.4) 35.2 N/A

All Share Index 3,417.26 (2.5) (1.7) 32.1 16.8

Banks 3,328.94 (2.1) (1.1) 36.2 16.3

Industrials 4,565.56 (2.2) (0.3) 30.4 18.5

Transportation 2,214.34 (3.1) (5.1) 19.2 14.2

Real Estate 2,829.30 (2.7) (4.6) 44.9 15.1

Insurance 4,095.86 0.8 1.5 75.3 12.9

Telecoms 1,454.94 (10.0) (8.0) 0.1 20.6

Consumer 7,419.46 (1.3) (2.5) 24.7 27.7

Al Rayan Islamic Index 4,627.60 (3.3) (3.4) 52.4 19.9

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

Com. Bank Of Kuwait Kuwait 0.72 5.9 0.1 8.0

Mediterranean & Gulf Ins. Saudi Arabia 50.29 5.6 1,974.4 44.1

Jazeera Airways Kuwait 0.47 4.5 191.2 (6.1)

Kuwait International Bank Kuwait 0.33 3.1 1,996.0 11.9

Solidarity Saudi Takaful Saudi Arabia 22.71 2.8 5,792.8 (12.3)

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

Ooredoo Qatar 114.30 (10.0) 315.9 (16.7)

Vodafone Qatar Qatar 19.34 (10.0) 1,826.6 80.6

Masraf Al Rayan Qatar 52.00 (7.8) 2,385.0 66.1

Qatar Electricity & Water Qatar 171.00 (7.6) 104.7 3.4

Abu Dhabi Com. Bank Abu Dhabi 8.01 (5.8) 8,079.9 23.2

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%

Ooredoo 114.30 (10.0) 315.9 (16.7)

Vodafone Qatar 19.34 (10.0) 1,826.6 80.6

Masraf Al Rayan 52.00 (7.8) 2,385.0 66.1

Qatar Electricity & Water Co. 171.00 (7.6) 104.7 3.4

Qatar Navigation 89.00 (4.8) 68.9 7.2

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

QNB Group 202.00 1.8 486,476.0 17.4

Industries Qatar 193.50 (1.3) 453,609.0 14.6

Masraf Al Rayan 52.00 (7.8) 130,379.5 66.1

Qatar Islamic Bank 119.00 (4.4) 101,629.5 72.5

Mazaya Qatar Real Estate Dev. 24.50 (1.2) 73,656.1 119.1

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* 13,443.16 (3.1) (2.4) 4.4 29.5 460.83 197,555.2 16.8 2.2 3.7

Dubai

4,928.22 (1.2) 0.4 2.0 46.2 340.51 94,652.1 20.5 1.8 1.9

Abu Dhabi

5,070.97 (1.1) 0.4 0.3 18.2 72.30 139,205.0 14.3 1.8 3.3

Saudi Arabia

11,042.03 0.1 2.9 8.1 29.4 2,666.15 599,222.6 21.2 2.7 2.6

Kuwait 7,403.83 0.1 0.7 3.8 (1.9) 76.97 113,361.8 18.0 1.2 3.7

Oman 7,361.15 0.2 0.0 2.2 7.7 15.22 27,070.9 11.1 1.7 3.8

Bahrain 1,475.68 0.1 (0.5) 0.3 18.2 0.67 54,357.6 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)

13,400

13,500

13,600

13,700

13,800

13,900

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 3.1% to close at 13,443.2. The Telecoms and Transportation indices led the losses. The index fell on the back of selling pressure from Qatari shareholders despite buying support from non-Qatari shareholders.

Ooredoo and Vodafone Qatar were the top losers, falling 10.0% each. Among the top gainers, Qatar Insurance Co. rose 2.0%, while QNB Group was up 1.8%.

Volume of shares traded on Thursday rose by 22.0% to 22.0mn from 18.0mn on Wednesday. Further, as compared to the 30-day moving average of 17.7mn, volume for the day was 24.1% higher. Mazaya Qatar Real Estate Dev. and Ezdan Holding Group were the most active stocks, contributing 13.5% and 12.5% to the total volume respectively.

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

Ratings, Earnings and Global Economic Data

Ratings Updates

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

Abu Dhabi National Insurance Company (ADNIC)

S&P Abu

Dhabi FSR A- A- – Positive –

Source: News reports (* LT – Long Term, ST – Short Term, FSR- Financial Strength Rating, FCR – Foreign Credit Rating, LCR – Local Currency Rating, IDR – Issuer Default Rating, SR – Support Rating, LC – Local Currency)

Earnings Releases

Company Market Currency Revenue

(mn)2Q2014

% Change

YoY

Operating Profit

(mn) 2Q2014

% Change

YoY

Net Profit (mn)

2Q2014

% Change

YoY

DP World (DPW) * Dubai USD 1,660.00 – – – 332.0 25.8%

Source: Company data, DFM, ADX, MSM (* 1H2014 results)

Global Economic Data

Date Market Source Indicator Period Actual Consensus Previous

08/28 US Department of Labor Initial Jobless Claims 23-August 298K 300K 299K

08/28 US Bureau of Eco. Analysis GDP Annualized QoQ 2Q2014 4.20% 3.90% 4.00%

08/28 US Bureau of Eco. Analysis Personal Consumption 2Q2014 2.50% 2.40% 2.50%

08/28 US Bureau of Eco. Analysis GDP Price Index 2Q2014 2.10% 2.00% 2.00%

08/28 US Bureau of Eco. Analysis Core PCE QoQ 2Q2014 2.00% 2.00% 2.00%

08/28 US Bloomberg Bloomberg Consumer Comfort 24-August 37.3 – 36.6

08/28 US Nat. Assoc. of Realtors Pending Home Sales MoM July 3.30% 0.50% -1.30%

08/28 US Nat. Assoc. of Realtors Pending Home Sales YoY July -2.70% -3.50% -4.70%

08/28 US US Dep. of Energy EIA Natural Gas Storage Change 22-August 75.0 77.0 88.0

08/29 US Bureau of Eco. Analysis Personal Income July 0.20% 0.30% 0.50%

08/29 US Bureau of Eco. Analysis Personal Spending July -0.10% 0.20% 0.40%

08/28 EU European Central Bank M3 Money Supply YoY July 1.80% 1.50% 1.60%

08/28 EU European Central Bank M3 3-month average July 1.50% 1.30% 1.20%

08/28 EU European Commission Economic Confidence August 100.6 101.5 102.1

08/28 EU European Commission Industrial Confidence August -5.3 -4.5 -3.8

08/29 EU Eurostat Unemployment Rate July 11.50% 11.50% 11.50%

08/29 EU Eurostat CPI Estimate YoY August 0.30% 0.30% 0.40%

08/29 France INSEE PPI MoM July -0.30% 0.00% 0.00%

08/29 France INSEE PPI YoY July -0.60% 0.40% 0.40%

08/28 Germany Deutsche Bundesbank Unemployment Change (000's) August 2K -5K -12K

08/28 Germany Deutsche Bundesbank Unemployment Rate August 6.70% 6.70% 6.70%

08/29 Germany Destatis Retail Sales MoM July -1.40% 0.10% 1.00%

08/29 Germany Destatis Retail Sales YoY July 0.70% 1.50% 0.10%

08/28 UK London Gold Market Fix. London Gold Market PM Fix 28-August 1,292.0 – 1,282.8

08/29 UK GfK NOP (UK) GfK Consumer Confidence August 1.0 -1.0 -2.0

08/28 Spain INE CPI YoY August -0.50% -0.60% -0.30%

08/28 Italy ISTAT Retail Sales MoM June 0.00% -0.50% -0.60%

08/28 Italy ISTAT Retail Sales YoY June -2.60% -0.60% -0.40%

08/28 China Nat. Bureau of Statistics Industrial Profits YoY July 13.50% – 17.90%

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

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

Qatari 29.09% 35.12% (101,315,214.37)

Non-Qatari 70.91% 64.88% 101,315,214.37

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News

Qatar

QNB Group: Qatar’s real estate prices still remain within fundamentals – Qatar’s real estate prices continue to reach

record highs. According to the Real Estate Price Index (REPI) published by the Qatar Central Bank (QCB), average prices for land, commercial and residential properties in June 2014 stood 20% above their peak in September 2008. This could suggest a potential overheating of the real estate sector. Closer analysis, however, indicates that the increase is still within the fundamentals of Qatar’s fast growing economy and rapid population growth. The QCB publishes the REPI on a monthly basis on its website. The index was developed to measure the average increase in real estate prices in Qatar. It is based on Ministry of Justice data on land and property transactions published on a weekly basis. According to the latest data, the REPI increased 21.5% in the first six months of 2014, showing a significant acceleration compared with the 6.2% increase in the second half of 2013. Are these large increases in real estate prices in line with economic fundamentals or a sign of another real estate bubble? To answer this question, we compared the real estate price index to two measures of fundamentals in the economy. One measure is based on push factors affecting real estate prices. The other measure is based on price movements in the economy. Both measures suggest that real estate prices continue to be in line with economic fundamentals. Overall, both measures suggest that Qatar’s real estate prices continue to be in line with economic fundamentals. Qatar’s fast growing economy and rapid population growth seem to justify a rapid increase in real estate prices, which remains in line with other nominal developments in the economy. Further rapid increases in real estate prices could, however, signal overheating and a potential for another real estate bubble. (QNB Group)

KCBK appoints new Group CEO – Al Khalij Commercial Bank

(KCBK) has appointed Fahad Abdulla Al Khalifa as its new Group Chief Executive Officer. Al-Khalifa is a senior banker with more than 20 years of experience; he has held prominent positions in Qatari banks, including the Qatar Central Bank and QNB Group, which translates into knowledge and perspective with regards to local and regional markets (Gulf-Times.com)

HSBC Qatar, Al Jaber Engineering sign QR1bn deal for Kahramaa’s Project – HSBC Bank Middle East Ltd Qatar

(HSBC Qatar) has signed a deal worth QR1bn of contract-related finance facilities with Al Jaber Engineering Company to support Qatar General Electricity & Water Corporation’s (Kahramaa) pipelines for the Mega Reservoirs Project. HSBC Qatar’s CEO Abdul Hakeem Mostafawi said that the transaction reinforces the bank’s capabilities to provide sophisticated infrastructure finance in the local market. The Mega Reservoirs Project will increase the capacity of the water reserve to last for seven days. (Gulf-Times.com)

ABS to start work on Qatar’s first liftboat – Nakilat-Keppel

Offshore & Marine (N-KOM) has selected ABS, a US-based provider of classification services to the global offshore industry, to build the first self-elevating unit ever to be built in Qatar. The project will also be the first offshore new build project undertaken by the shipyard. Customized for the Middle East & North Africa region, the LB310S will be a four-legged liftboat capable of field transit and elevated operations in water depths up to 65 meters. (Bloomberg)

Doha hotels record a 13.8% RevPAR growth in July 2014 –

Hotels in Doha experienced a 5.5 percentage point growth in occupancy to 47.6% in July 2014, driving a 13.8% growth in RevPAR to $95.91. Hotels recorded a marginal increase of ARR

by 0.7% to $201.56, maintaining YTD figures of $217.79. A regional trend of strong banquet revenues during the holy month of Ramadan continued in Doha with hotels experiencing a 39.0% growth during the month. A 15.2% rise in total revenues coupled with efficient operating expenses resulted in an 86.7% rise in GOPPAR to $53.22. Doha was one of the strongest performing hospitality markets in the region during July 2014 with a rise registered in all key performance indicators. (Bloomberg)

MOMUP to develop housing units for 28,000 workers – The

Ministry of Municipality & Urban Planning (MOMUP) is looking forward to develop a number of housing complexes for accommodating nearly 28,000 workers. These new residential facilities will be consisting of seven complexes, each with a capacity to house about 4,000 low-income workers. In addition to these housing facilities, there will be a separate complex that will house basic service providers and facilities, including services of the Ministry of Interior such as police, immigration and traffic. MOMUP is soon expected to float tenders inviting local contracting companies to design, build and operate these complexes. (Peninsula Qatar)

FAO: Qatar’s SFP an example for others – Sahara Forest

Project’s (SFP) pilot facility in Qatar has been cited by the Food & Agriculture Organization (FAO) of the United Nations as an example for making high-quality and diverse food productions in desert areas, while minimizing the energy and freshwater needs. The pilot facility is a partnership between Yara International, Qatar Fertiliser Company and the SFP, which has designed a technological system where waste from one process is used as a resource for another. The pilot operations have verified the viability of profitable, large-scale, seawater-cooled greenhouse production round-the-year in Qatar, with an efficient process that consumes half the fresh water than in comparable greenhouses. With positive data emerging from field operations and strong results in Qatar, the SFP started its business implementation phase on October 1, 2013. (Gulftimes.com)

International

US consumer spending falls for first time in six months –

American consumers have become thriftier, trimming their spending as bigger wage gains fail to materialize, while using every opportunity to rebuild nest eggs. This may result in a lower economic growth. According to the Commerce Department figures, household purchases unexpectedly declined 0.1% in July 2014, the first drop in six months, after rising 0.4% in June. Incomes rose at the slowest pace of the year and savings climbed to the highest level since the end of 2012. While an improving job market is lifting confidence, it is yet to spur the broad-based increases in pay that will boost demand at retailers. The weak start for consumer spending, which accounts for almost 70% of the US economy, prompted some economists to cut their third-quarter growth estimates even as other data showed manufacturing was strengthening. (Bloomberg)

Eurozone inflation slows as Draghi hints at ECB stimulus; Italy posts biggest consumer price decline – Inflation in the

Eurozone slowed in August and the region’s unemployment rate remained close to a record high, increasing pressure on the European Central Bank (ECB) to take action. Eurostat data showed that consumer prices rose 0.3% in August from a year earlier after a 0.4% increase in July. That was the weakest rate since October 2009, which was in line with the median forecast in a Bloomberg News survey. Eurostat said unemployment remained at 11.5% in July. Recent data adds to the case for more stimulus when policy makers meet next week. ECB

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President Mario Draghi has pointed to sliding investor bets on prices, sparking a debate about whether quantitative easing is needed to steer inflation in the 18-nation region toward the ECB’s goal of around 2% and foster economic growth. Meanwhile, consumer prices in Italy dropped the most since records began after the Eurozone’s third-largest economy slipped into recession this month, which adds to concerns that the region might be headed toward deflation. Italy’s inflation rate based on EU measurements fell 0.2% in August from a year earlier, which is more than the median forecast of a 0.1% decline in a Bloomberg News survey. Prices also fell 0.2% from July. Data also showed unemployment at a record high in the second quarter. The slump comes as Prime Minister Matteo Renzi is under pressure to deliver on his program of reforms. (Bloomberg)

Lagarde backed by IMF board after meeting on French court case – The International Monetary Fund Managing Director

Christine Lagarde received renewed support from the fund’s board as a French court’s decision to put her under formal investigation for negligence threatens to sully the organization’s reputation. The IMF board said the executive board continues to express its confidence in the managing director’s ability to effectively carry out her duties. The statement eases pressure on Lagarde, who has denied any wrongdoing throughout more than three years of procedures that scrutinized a decision she made as France’s finance minister in 2008. The IMF board, which was aware of the court case when she was selected in 2011 as the first woman to lead the IMF, has expressed support at every step. The latest turn in the legal process has refocused attention on an institution roiled by the 2011 arrest of Dominique Strauss-Kahn, her predecessor, on charges including the attempted rape of a hotel maid. (Bloomberg)

Japan’s July output misses estimates as spending slumps – Industrial production in Japan rose less than expected in July,

while household spending slumped and the inflation rate remained unchanged, highlighting the challenge of boosting the world’s third-largest economy. According to the Japanese trade ministry, output expanded by 0.2% from June, less than the forecast for a 1.0% gain in a Bloomberg News survey of 31 economists. The statistics bureau said consumer prices excluding fresh food rose 3.3% from a year earlier, at the same pace as June. Recent data underscores weakness in the economy following a sales-tax hike in April, which is hurting consumption. This data also puts pressure on the government and the Bank of Japan to consider adding stimulus to support the economy before another planned increase in the levy. (Bloomberg)

Brazil goes into recession for first time in 5 years – Brazil’s

first recession in more than five years fueled a rally in equities as investors bet President Dilma Rousseff will fail to get re-elected next month. The Bovespa extended its best month since January 2012, gaining 1.7% to 61,288.15 on August 30, 2014. According to Bloomberg data, the cost to protect the nation’s debt securities against non-payment for five years fell today to the lowest level since May 2013. The national statistics agency said GDP shrank by 0.6% in the April-June period over the previous three months, after contracting a revised 0.2% in the first quarter. It is the first time the biggest economy in Latin America contracted for two consecutive quarters since the aftermath of the global financial crisis in 2008. Rousseff has struggled to revive the economy with tax cuts, billions of dollars in credit and higher social spending. Both consumer and business confidence has eroded in the run-up to the first round presidential vote on Oct. 5. (Bloomberg)

India’s growth quickens most in two years boosting Modi –

India’s economic growth accelerated to the fastest pace in more than two years, beating estimates, after the central bank refrained from raising interest rates. The Central Statistical Office said GDP rose 5.7% in the three months ended June 2014 from a year earlier, the biggest gain since the quarter through March 2012 and compared with the 4.6% in the previous quarter. The median of 48 estimates in a Bloomberg News survey was for a 5.5% gain. Stronger growth is crucial for Prime Minister Narendra Modi to honor a pledge of narrowing the budget deficit to a seven-year low, while keeping subsidies largely unchanged in his spending plan. He faces the challenge of rejuvenating Asia’s third-largest economy amid a risk that a weak monsoon will hurt crops and stoke the region’s fastest inflation. (Bloomberg)

Regional

Reuters: OPEC oil output rises in August as Libyan recovery holds – According to a survey by Reuters, OPEC's oil

production has risen in August from July, as a recovery in Libyan supply held up and Angola and Iran boosted supplies, outweighing a further decline in Iraq. The survey also found Saudi Arabia and other core Gulf OPEC producers kept output largely flat and have not cut back to prop up prices, which in August dipped to a 14-month low near $101 a barrel, or to make room for higher Libyan output. Supply from the Organization of the Petroleum Exporting Countries has averaged 30.15mn barrels per day (bpd) in August, up from 30.06mn bpd in July, based on shipping data and information from sources at oil companies, OPEC and consultants. (Reuters)

Mobily aims to become ICT major – Etihad Etisalat Company

(Mobily) has built world class data centers across Saudi Arabia, as part of its plan to transform from just a telecommunication provider to a leading services provider of information, communication & technology (ICT) by 2020. This major milestone is considered a foundation in the company’s transformation journey toward the full ICT rollout. In order to become a leading provider of ICT services, Mobily is forging strategic partnerships with major international companies who provide new technological solutions. (GulfBase.com)

JODI: Saudi crude exports fall in June as domestic demand rises – According to data published by Joint Oil Data Initiative

(JODI), Saudi crude exports fell in June 2014 to their lowest levels in almost three years as oil use in the country’s power sector rose and local refineries processed high volumes. Saudi Arabia exported 6.946mn barrels per day (bpd) in June 2014, slightly down from the 6.987mn bpd in May 2014. The Kingdom’s production inched up to 9.780mn bpd in June 2014, from 9.705 million bpd in May 2014. Refiners processed 2.055mn bpd of crude in June 2014, slightly down from 2.136mn bpd in May 2014, which was the highest since JODI records began in 2002. Saudi oil usage for power generation surged to 827,000 bpd in June 2014 from 680,000 bpd in May 2014 and 484,000 bpd in April 2014. Crude burning for power in June was the highest since March 2013. (GulfBase.com)

Arab News: Saudi oil usage tops economic growth –

According to Arab News, citing a study by Kuwaiti Diplomatic Center, Saudi Arabia’s annual rate of energy consumption has grown to an average of 3.8mn oil barrels per day, marking an increase of more than 5%, while the economic growth rate reached 4%. Saudi Arabia has the highest rate of energy consumption in the world, which will reach 8.4mn oil barrels if the issue is not dealt with properly. Energy consumption is mostly in the electricity & desalination sector with 52%, followed by the transport & industrial sector with 21%. The report

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concluded that Saudi Arabia should expand its production of natural gas as well as look for imports and explore solar power generation sources to meet its electricity needs. (GulfBase.com)

Saudi Aramco seeks interest for work on unconventional gas – According to sources, four companies have expressed

interest in bidding for work on unconventional gas in Saudi Arabia as the Saudi Arabian Oil Company (Saudi Aramco) pushes ahead with its plans to develop challenging shale deposits. The companies are South Korea's GS Engineering & Construction, Italy's Maire Tecnimont, Japan's JGC and Canada's SNC-Lavalin. The project will involve building processing facilities, wellheads and pipelines for the shale gas in Turaif in the northern part of Saudi Arabia, where a big mining project Waad al-Shamal is under development. (Reuters)

KHC to increase loan size to $750mn – The Kingdom Holding

Company (KHC) is about to sign a loan deal of about $750mn to refinance its existing debt. The loan has been increased from $550mn, and will be priced at about 2 percentage points above the London interbank offered rate, compared with about 3 percentage points on the existing debt. The maturity of the original loan, signed last year, has been extended by two years to 2018. KHC’s lenders include Citigroup, Deutsche Bank, Credit Agricole, Banque Saudi Fransi and Samba Financial Group. Citigroup was hired by KHC to coordinate the refinancing. (Bloomberg)

UAE, Mexico to sign two energy deals – The UAE and Mexico

are expected to sign at least two major energy deals to coincide with the visit of Mexican president to the UAE in December. According to Mexico’s ambassador to the UAE, Francisco Alonso, Mexico is at the advanced stages of a memorandum of understanding with Mubadala Petroleum and is working on finalizing another one with Abu Dhabi National Oil Company. (GulfBase.com)

Etihad opens new contact center – Etihad Airways has

completed the final phase of the development of its Al Ain contact center facility. With the opening of a second contact center, Etihad has brought the number of contact centers within the UAE to three and a total of four worldwide. The center will operate 24/7 with a desk capacity of 70 agents who provide bilingual Arabic and English assistance to the airline’s guests. (GulfBase.com)

Du Telecom to expand 4G LTE network for better connectivity – Emirates Integrated Telecommunications

Company (Du Telecom) said that it will expand its 4G LTE network by 25% by the end of 2014, in a move that would enable faster connectivity. The company also plans to deploy the IP Multimedia Subsystem on its network later in 2014, further enhancing its customers’ experience when they use its network. (GulfBase.com)

Arabtec’s former CEO confirms discussions to sell stake to Aabar – Hasan Ismaik, former CEO at Arabtec Holding

confirmed that he is currently in talks with Aabar Investments to sell his stake in the company, but that a resolution has not been reached yet. After resigning from his post, Hasan Ismaik retained his 28.85% stake in the company, making him the largest shareholder. (GulfBase.com)

Blackstone, Fajr Capital to acquire minority stake in Gems Education – Blackstone Group and Fajr Capital are planning to

acquire a 20% stake in Gems Education, a Dubai-based international education company. The transaction would be valued at $350mn, and a formal agreement to buy the minority stake may be reached in the next couple of weeks. (GulfBase.com)

Damac Properties to sell second batch of Akoya golf course villas – Damac Properties announced that it is planning to sell

another tranche of villas in its Akoya golf course scheme on the outskirts of Dubai. The company is yet to decide how many homes would be included in the second batch of sales but said that four-bedroom villas would start at AED2.25mn. Sales for the second phase of the 55mn square foot scheme off the Umm Suqeim Road will open on September 3, 2014. (GulfBase.com)

APU re-launches AED6mn retail store – Azizia Panda United

(APU) has re-launched its AED6mn HyperPanda store in Dubai Festival City on August 28, 2014. The company is planning to invest around SR3bn in the UAE market in the next three years, while its investment in Saudi Arabia will be around SR1-2bn per annum from 2015 onward. (GulfBase.com)

DSC development plans major retail expansion – The $4bn

Dubai Sports City (DSC) development in Dubai is set for a major retail expansion. DSC’s Chief Financial Officer, Vijay Sajjanhar said the company’s current focus is on developing the retail side of the 50mn square feet site in Dubailand. This has led to a concerted push to develop the conjoined Canal Promenade and the Canal Residence West project located on the east side of DSC. At the Canal Promenade, a 1.5 kilometer pedestrian walkway running alongside a 1.2 kilometer man-made canal (as yet unfilled) is to be completed in the next 12 months, while fit-outs for four retail spaces are underway. (GulfBase.com)

ADCB sells $80mn 2044 bonds – Abu Dhabi Commercial Bank

(ADCB) on August 26, 2014 placed $80mn in bonds with a 0% coupon, maturing in 2044. The bond was priced at 100%. The transaction was conducted via SPV ADCB Finance and was arranged by ANZ. (Bloomberg)

Burgan Bank plans bond issue – Kuwait-based Burgan Bank

has chosen banks to arrange meetings with investors ahead of a potential issue of a capital-boosting bond. The lender will hold roadshows in Asia, the UAE and Europe from September 4, 2014 for a bond issue that enhances the bank's Tier 1 capital ratio, subject to market conditions. Should the US dollar-denominated bond issue happen, it will have a perpetual lifespan and be of benchmark size – traditionally meant worth upward of $500mn. Burgan Bank’s investor meetings will be arranged by HSBC as global coordinator and Citigroup, JPMorgan and the National Bank of Abu Dhabi as lead managers. (Reuters)

Arab Contractors completes 70% of Al-Jahra Road project –

Egypt-based Arab Contractors Company announced that it has completed 70% of the works of Al-Jahra Road project. The company added that the work is on full swing and the project will be completed as per schedule in early 2016. (Bloomberg)

Oman asks PDO to raise oil production – The Omani

government has instructed the state-owned Petroleum Development Oman (PDO) to raise its crude production to 600,000 barrels per day (bpd), from its long-term plateau of 500,000-550,000 bpd annual production set by the company three years ago. The increase in crude production will be achieved by applying the latest drilling technology and focusing on boosting output from several small areas and with sour gas injection. (GulfBase.com)

MoTC floats tender to select consultant for road project –

Oman’s Ministry of Transport & Communications (MoTC) has floated a tender to select a consultant for supervising the phase two of Ibri-Yanqul roadway dualisation project. The scope of work involves conversion to a four-lane dual carriageway from the existing single carriageway between Ibri and Yanqul. It includes several intermittent grade-separated interchanges,

Page 6 of 7

cross-drainage structures, and other facilities. For smooth implementation, the 33-kilometer long project has been divided into two segments and a contract for the first segment was awarded in 2013. Further, MoTC has also floated two tenders more; one for selecting a consultant for Izki-Nizwa dualisation and another for supervising Ibri-Al Dariz-Miskin road dualisation work. (GulfBase.com)

Bahrain to meet investors ahead of sovereign bond –

Bahrain has chosen four banks to arrange investor meetings in preparation for a potential long-dated sovereign bond issue. Bahrain has chosen Citigroup, Gulf International Bank, Mitsubishi UFJ and Standard Chartered to arrange the roadshows, which will begin on September 2, 2014. A dollar-denominated bond of benchmark size traditionally meant upward of $500mn in total could follow the roadshows, subject to market conditions. (GulfBase.com)

Contacts

Saugata Sarkar Abdullah Amin, CFA Shahan Keushgerian

Head of Research Senior Research Analyst Senior Research Analyst

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

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

Sahbi Kasraoui Ahmed Al-Khoudary QNB Financial Services SPC

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

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

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

COPYRIGHT: No part of this document may be reproduced without the explicit written permission of QNBFS. Page 7 of 7

Rebased Performance Daily Index Performance

Source: Bloomberg Source: Bloomberg

Source: Bloomberg Source: Bloomberg (*Market closed on 29 August 2014)

80.090.0

100.0110.0120.0130.0140.0150.0160.0170.0180.0190.0200.0210.0

Jul-10 Jul-11 Jul-12 Jul-13 Jul-14

QE Index S&P Pan Arab S&P GCC

0.1%

(3.1%)

0.1% 0.1% 0.2%

(1.1%) (1.2%)

(4.0%)

(3.0%)

(2.0%)

(1.0%)

0.0%

1.0%

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 1,287.81 (0.1) 0.6 6.8 DJ Industrial 17,098.45 0.1 0.6 3.1

Silver/Ounce 19.47 (0.2) 0.2 (0.0) S&P 500 2,003.37 0.3 0.8 8.4

Crude Oil (Brent)/Barrel (FM Future)

103.19 0.7 0.9 (6.9) NASDAQ 100 4,580.27 0.5 0.9 9.7

Natural Gas (Henry Hub)/MMBtu

4.03 0.1 4.3 (7.3) STOXX 600 342.00 0.3 1.6 4.2

LPG Propane (Arab Gulf)/Ton 102.88 0.6 1.4 (18.5) DAX 9,470.17 0.1 1.4 (0.9)

LPG Butane (Arab Gulf)/Ton 120.00 1.4 1.9 (12.1) FTSE 100 6,819.75 0.2 0.7 1.0

Euro 1.31 (0.4) (0.8) (4.4) CAC 40 4,381.04 0.3 3.0 2.0

Yen 104.09 0.4 0.1 (1.2) Nikkei 15,424.59 (0.2) (0.7) (5.3)

GBP 1.66 0.1 0.2 0.2 MSCI EM 1,087.88 0.1 0.4 8.5

CHF 1.09 (0.3) (0.5) (2.8) SHANGHAI SE Composite 2,217.20 1.0 (1.1) 4.8

AUD 0.93 (0.2) 0.2 4.7 HANG SENG 24,742.06 0.0 (1.5) 6.2

USD Index 82.75 0.3 0.5 3.4 BSE SENSEX* 26,638.11 0.0 0.8 25.8

RUB 37.12 1.1 2.8 12.9 Bovespa 61,288.15 1.7 4.9 19.0

BRL 0.45 0.1 1.8 5.6 RTS 1,190.23 (2.4) (5.5) (17.5)

193.2

167.2

149.9