QE Intra-Day Movement

Market Indicators Value Traded (QR mn) Exch. Market Cap. (QR mn) Volume (mn) Number of Transactions Companies Traded Market Breadth Market Indices Total Return All Share Index Banks Industrials Transportation Real Estate Insurance Telecoms Consumer GCC Top Gainers## Kingdom Holding Co. Com. Real Estate Co. AlAbdullatif Nat. Investments Co. Allianz SF GCC Top Losers Al Ahli Bank Sharjah Islamic Bank Al-Qurain Petro. Co. Mannai Corp. Gulf Cable & Elect. Ind.
##

5 Sep 12 255.9 469,625.2 8.5 3,839 40 6:29 1D% (0.2) (0.3) (0.2) (0.4) 0.2 (0.4) (0.8) (0.2) (0.3) Close# 13.05 74.00 30.40 112.00 112.00 Close
#

4 Sep 12 368.3 468,833.2 13.4 3,993 41 23:15 WTD% (0.4) (0.4) (0.5) (0.5) (0.1) 2.2 (0.1) (1.8) 0.1 1D% 4.4 4.2 4.1 3.7 3.5 YTD% 2.5 6.0 3.3 9.9 (8.8) 2.0 12.1 14.5 37.9 Vol. 000 2,851.9 9,857.8 1,588.2 2,274.0 1,180.0

%Chg. (30.5) 0.2 (36.8) (3.9) (2.4) TTM P/E N/A 9.5 11.3 10.6 10.6 3.0 11.5 13.9 13.2 YTD% 47.5 (3.9) 14.3 (34.9) 308.8 YTD% 15.4 4.8 (14.0) 1.9 (25.4)

8,490 8,480 8,470 8,460 8,450 8,440 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00

Close 11,436.10 2,042.56 2,040.19 2,506.74 1,345.80 1,710.64 1,964.93 1,090.22 4,671.63 Exchange

Qatar Commentary The QE index fell 0.2% to close at 8,450.1. Losses were led by the Insurance and Industrials indices, declining 0.8% and 0.4% respectively. Top losers were Al Ahli Bank and Dlala Brokerage & Inv. Hold. Co., decreasing 3.0% and 2.1% respectively. Among the top gainers, Ezdan Real Estate Co. rose 3.3%, while Qatar German Co. for Med.Dev. increased 2.9%. GCC Commentary Saudi Arabia: The TASI index declined marginally to close at 7,049.5. Losses were led by the Media & Publishing and Agriculture & Food Industries indices, falling 0.7% and 0.4% respectively. Gulf General Cooperative Insurance fell 4.1%, while Al-Baha Dev. & Investment Co. was down 3.3% Dubai: The DFM index fell 0.3% to close at 1,550.1. Losses were led by the Services and Transportation indices, decreasing 0.8% and 0.6% respectively. Al-Mazaya Holding Co fell 9.7%, while Shuaa Capital was down 5.8%. Abu Dhabi: The ADX benchmark index rose 0.2% to close at 2,556.2. Gains were led by the Energy and Real Estate indices, both increasing 0.6%. Commercial Bank Intern. gained 9.5%, while Eshraq Properties Co. rose 3.5%. Kuwait: The KSE index gained 0.3% to close at 5,909.9. Gains were led by the Oil & Gas and Consumer Goods indices, rising 1.7% and 1.2% respectively. Credit Rating & Collection increased 8.8% , while Amar for Finance And Leasing Co. rose 8.2%. Oman: The MSM index increased marginally to close at 5,535.8. The Industrial index rose 0.5%. Top gainers were Dhofar Insurance and Dhofar Cattle Feed, rising 4.1% and 3.4% respectively.

Saudi Arabia Kuwait Saudi Arabia Kuwait Saudi Arabia Exchange Qatar Abu Dhabi Kuwait Qatar Kuwait

1D% Vol. 000 (3.0) (2.2) (2.1) (2.0) (1.9) 4.4 190.7 571.0 1.1 2.1

60.60 0.88 184.00 100.90 1,060.00

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 Gainers Ezdan Real Estate Co. Qatar German Co. for Med. Dev. Qatar Cinema & Film Dist. Co. Qatar Navigation Al Khaliji Qatar Exchange Top Vol. Trades Ezdan Real Estate Co. Barwa Real Estate Co. Qatar German Co. for Med. Dev. Vodafone Qatar Masraf Al Rayan

Close* 22.00 12.55 58.00 60.10 17.46 Close* 22.00 29.10 12.55 8.99 27.05

1D% 3.3 2.9 1.8 0.8 0.3 1D% 3.3 (0.5) 2.9 0.0 (0.2)

Vol. 000 2,254.5 566.7 0.2 64.3 3.6 Vol. 000 2,254.5 1,630.5 566.7 447.6 342.3

YTD% (0.9) 48.3 (22.0) (21.4) 1.7 YTD% (0.9) (2.8) 48.3 19.1 (2.9)

Qatar Exchange Top Losers Al Ahli Bank Dlala Brokerage & Inv. Hold. Co. Mannai Corp. Islamic Holding Group Qatari Investors Group Qatar Exchange Top Val. Trades Ezdan Real Estate Co. Barwa Real Estate Co. Commercial Bank of Qatar Qatar Meat & Livestock Co. National Leasing
Source: Bloomberg (* in QR)

Close* 60.60 43.50 100.90 37.90 25.40 Close* 22.00 29.10 71.70 66.70 48.45

1D% (3.0) (2.1) (2.0) (1.8) (1.6) 1D% 3.3 (0.5) (1.0) (1.2) (0.6)

Vol. 000 4.4 8.9 1.1 207.1 237.0 Val. 000 49,715.3 47,967.4 23,145.1 13,759.7 9,578.8

YTD% 15.4 199.0 1.9 49.5 65.7 YTD% (0.9) (2.8) (14.6) 109.4 18.0

Regional Indices Qatar* Dubai Abu Dhabi Saudi Arabia Kuwait Oman Bahrain

Close 8,450.14 1,550.13 2,556.24 7,049.51 5,909.85 5,535.83 1,072.48

1D% (0.2) (0.3) 0.2 (0.0) 0.3 0.0 0.2

WTD% (0.4) 0.1 (0.2) (1.3) 0.8 1.0 (1.3)

MTD% (0.4) 0.1 (0.2) (1.3) 0.8 1.0 (1.3)

YTD% (3.7) 14.5 6.4 9.8 1.6 (2.8) (6.2)

Exch. Val. Traded ($ mn) 59.96 12.45 16.95 1,766.92 59.93 8.90 0.95

Exchange Mkt. Cap. ($ mn) 128,959.1 48,935.0 76,673.6 371,972.7# 100,133.9 19,197.4 19,531.3

P/E** 9.0 14.2 8.9 14.5 31.4 10.6 10.1

P/B** 1.7 0.7 1.0 1.9 1.1 1.5 0.8

Dividend Yield 4.4 4.1 4.8 3.3 3.4 4.5 4.6 Page 1 of 4

Source: Bloomberg, Qatar Exchange, Tadawul, Muscat Securities Exchange, Dubai Financial Market and Zawya (** TTM; * Value traded ($ mn) do not include special trades, if any) (#Value as of Sep. 4)

Qatar Market Commentary

The QE index fell 0.2% to close at 8,450.1. The Insurance and Industrials indices were the major contributors to the losses. The index declined due to selling pressure from non-Qatari shareholders despite buying support from Qatari shareholders. Al Ahli Bank and Dlala Brokerage & Inv. Hold. Co. were the top losers, decreasing 3.0% and 2.1% respectively. Among the top gainers, Ezdan Real Estate Co. rose 3.3%, while Qatar German Co. for Medical Devices increased 2.9%. Volume of shares traded on Wednesday decreased by 36.8% to 8.5mn from 13.4mn on Tuesday. However, as compared to the 30-day moving average of 5.2mn (excluding shares traded on special market), volume for the day was 62.5% higher as volumes continued to be boosted by special trades in Ezdan Real Estate Company. Barwa Real Estate Co. and Ezdan Real Estate Co. were the most active stocks, contributing 19.2% and 26.5% to the total volume respectively.
Overall Activity Qatari Non-Qatari Buy %* 75.50% 24.50% Sell %* 69.06% 30.94% Net (QR) 16,471,238.89 (16,471,238.89)

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

Global Economic Data

Global Economic Data
Date 09/05 09/05 09/05 09/05 09/05 09/05 09/05 09/05 09/05 09/05 Market US US EU EU EU EU France Germany Italy China Source MBA Labor Department Markit Markit Eurostat Eurostat Markit Markit Markit Markit Indicator MBA Mortgage Applications Nonfarm Productivity PMI Composite PMI Services Euro-Zone Retail Sales (MoM) Euro-Zone Retail Sales (YoY) PMI Services PMI Services PMI Services HSBC Services PMI Period 31-August 2Q2012 August August July July August August August August Actual -2.50% 2.20% 46.3 47.2 -0.20% -1.70% 49.2 48.3 44 52 Consensus 1.80% 46.6 47.5 -0.20% -1.70% 50.2 48.3 43.3 Previous -4.30% -0.50% 46.5 47.9 0.10% -0.90% 50 50.3 43 53.1

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

News
Qatar QNB must make NSGB offer to Egyptian authority within 60 days Qatar National Bank must submit a tender offer to the Egyptian Financial Supervisory Authority to buy National Societe Generale Bank (NSGB) within 60 days of its expression of interest announced on August 30, 2012. If the offer is not made, or QNB withdraws its expression of interest, the law prevents the potential buyer from making any further bids for the next six months. (Bloomberg) Qatar T-bill yields rise on all maturities in September Qatar Central Banks three, six and nine-month Treasury bill yields increased in September for the first time in four months. The yield on the three-month bills rose six basis points to 1.25%. The yield on six-month bills climbed to 1.49% from 1.41% at last months sale, while the yield for nine-month bills inched up one basis point to 1.68%. The Central Bank issued QR2bn of threemonth treasuries this month and QR1bn each of six-month and nine-month bills. The yield on Qatars 4.5% dollar bonds due in January 2022 has risen eight basis points to 2.99% since the beginning of August. (Bloomberg) QCB: Remittances declined by 3% in 2011 According to QCBs Financial Stability Review, total outward remittance sent through the exchange houses in Qatar declined by 3% YoY and amounted to QR32.3bn in 2011. This was the equivalent to 5% of Qatars GDP in 2011. However, remittances to GCC countries have dropped sharply to 12% in 2011 from more than 20% in the previous year. (Gulf-Times.com) QCB: NAPS transaction value rises to QR40.5bn in Qatar in 2011 The QCB data indicate that the value and volume of transactions through automated teller machines (ATMs) and points of sale (PoS) have increased in Qatar in 2011, indicating higher usage of plastic money in the country. The value of transactions through automated teller machines (ATMs) and points of sale (PoS) on the National ATM & PoS Switch (NAPS) reached QR40.5bn in 2011, up 33% as compared to 2010 figures. The volume of transactions through NAPS exceeded 60.4mn in 2011, up 41% on 2010. QCB said the value of transactions through cheques grew moderately, whereas currency in circulation increased by around 14% last year. However, financial transactions between banks in Qatar settled through SWIFT system declined considerably indicating a low demand for interbank liquidity. (Gulf-Times.com) Qatar rank jumps in world competitiveness league Qatar is leading the Arab region and the Middle Eastern countries with 11th rank on the Global Competitiveness Index 2012-2013 released by the World Economic Forum. Qatar stood at 14th rank in 2011. The rankings are based on a combination of publicly available data and the results of the Executive Opinion Survey conducted by the World Economic Forum (WEF). (GulfTimes.com) Mannai, QTEL sign partnership accord Mannai Corp. and QTEL have signed a partnership agreement aimed at providing
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small and medium-sized businesses with information and computer technology products. Small and medium-sized businesses apply through the Mannai Corporation to access QTELs full range of products and services. (Gulf-Times.com) Al Million taxis to reach 500-mark by December Al Million Taxis, the private franchisee of Karwas taxi operations, is about to place all its allotted 500 vehicles on road well before its deadline in December. (Gulf-Times.com) Ezdan Real Estate Companys shares traded on Special Market Ezdan Real Estate Companys 1.7mn shares were traded on the Special Market on September 5. (QE) Qatar-based Tasweeq offers high-sulfur gasoil Qatar International Petroleum Marketing Co. (Tasweeq) has offered to sell a cargo of high-sulfur gasoil for loading from the port of Ras Laffan in October. The quantity offered is 304,000 barrels and the bids close on September 17. (Bloomberg) International ECB ready to waive preferred creditor status According to European Central Bank sources, ECB is ready to waive seniority status on the government bonds it buys under a new program. However, it is unlikely that ECB will announce that the bond purchases would be unlimited or even set internal targets for yields or spending beforehand. (Gulf-Times.com) UK PM to unveil planning reforms to boost economy UK Prime Minister David Cameron's office said the government is about to unveil planning reforms and new legislation today to kick start the construction sector, ease a chronic housing shortage and help stimulate the flagging economy. The government is expected to outline plans to relax planning laws, doubling the space currently allowed for property expansion, and launch a legislation allowing the government to underwrite infrastructure projects. (Reuters) UK rejects claim that it singled out Barclays in tax row UK has rejected a claim by Barclays that the bank was singled out for harsh treatment in a tax row and said the government took action due to the amount of tax at risk. (Reuters) Bank of Canada retains key rate, signals rate increase in future The Bank of Canada kept its main interest rate unchanged and reiterated that an increase may be needed as the domestic spending supports an economic recovery that is restrained by weak global demand for exports. The Central Bank said the countrys expansion will pick up through next year on business investment and consumer spending as shipments abroad slow down. (Bloomberg) Regional SATORP starts testing Jubail refinery Saudi-based Aramco and France-based Total have started testing their new refinery at Jubail. Saudi Aramco Total Refinery and Petrochemicals Companys (SATORP) new plant is designed to reduce Saudi reliance on imports and meet rapidly rising fuel demand. Around 54% of the project's output will be diesel and jet fuel, with an estimated quantity of 11.4mn tons per year. Annual gasoline and petcoke production is estimated to be around 2.8mn tons and 2.1mn tons respectively. (Reuters) KHC announces the expansion of Kingdom Hospital Kingdom Holding Companys (KHC) subsidiary, Kingdom Hospital, Riyadh has announced an expansion plan worth SR550mn in Saudi Arabia. This expansion plan is in accordance with the expected rise in the demand for healthcare in Saudi Arabia over the next two decades. (GulfBase.com)

HSBC: UAE businesses may continue to grow According to the HSBC Purchasing Managers Survey, non-oil business activity in the UAE is almost steady in August compared to the previous month. However, a rise in new orders to a three-month high signaled a continued expansion of the private sector economy. The HSBC UAE Purchasing Managers Index dropped to 53.3 in August, from 53.4 in July. Total new orders rose at the sharpest rate for the three months till August amid reports of improved market conditions, firm demand and higher sales efforts. Growth of new orders was not limited to the domestic market as sales to foreign markets were reported to have risen in August. (GulfBase.com) Dubais passenger traffic climbs 6% in July Passenger traffic at Dubai International Airport climbed 6% from a year earlier in July, with monthly traffic surpassing 5mn passengers for the first time. Dubai is investing $7bn on the expansion of its airport. (Reuters) UAE-based Al Habtoor eyes IPO in Dubai UAE-based Al Habtoor Group is considering an initial public offering (IPO) in Dubai. It had earlier unveiled plans to develop a new $1.33bn hotel and entertainment complex in Dubai. The group expects revenues to rise 15% this year in the wake of 10% growth during 2010-2011 period. (Reuters) UAE to buy planes worth $224bn in two decades The UAE is on track to emerge as the worlds third biggest market for new aircraft deliveries with total orders worth $223.9bn to be made over a 20-year period. (GulfBase.com) Qantas ties up with Emirates, ends British Airways alliance Qantas Airways will work with Emirates on European routes as it ends a partnership with British Airways after almost two decades in a bid to end losses on international operations. The accord will let Qantas add more than 60 new one-stop destinations to its network, as it shifts its European hub to Dubai from Singapore. The two airlines will offer 98 flights a week to Dubai under the 10-year agreement. The Emirates deal will probably be worth more than A$90mn a year to Qantas, as it will boost the carriers appeal to corporate travelers and grow its international business. (Bloomberg) Borrowing costs for Abu Dhabi-based Emal set to rise Emirates Aluminum (Emal) will have to pay much higher rates to borrow money from banks to help finance its $4bn smelter expansion. This is due to the impact of the Eurozone crisis on infrastructure lending in the Middle East. Emal aims to raise about $2.8bn via the loan. Pricing on the 15.5-year loan starts at 225 basis points and increases to 300 bps over the loans term. (Reuters) Emal to witness increase in its power capacity The electric power generation capacity of Emirates Aluminum (Emal) will increase with arrival of the first power plant unit for the projects second phase. The capacity will increase by 1,000MW to reach 3,000MW on completion. (GulfBase.com) Central Bank of Bahrains T-bills oversubscribed 288% Central Bank of Bahrain (CBB) announced that a BDH30mn monthly issue of the government treasury bills has been oversubscribed by 288%. The bills have a maturity of 182 days and a weighted average interest rate of 1.33%, compared with 1.36% for the previous issue on August 12, 2012. (AME Info) Bahraini mortgage lending doubles Bahraini mortgage lending doubled in 1H2012 as the government increased efforts to get more people to buy their own homes after protests in 2011caused economic growth to slump. Home loans soared to BHD702mn in the period, from BHD355.4mn a year ago. Total loans to consumers gained 5% to BHD6.78bn. (Bloomberg)
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Rebased Performance

Daily Index Performance

140.0 130.0 120.0 110.0 100.0 90.0

80.0
Jan-10 May-10 Sep-10 Jan-11 May-11 Sep-11 Jan-12 May-12

0.4%
121.4 107.8 101.4 106.0 98.2

0.3%
0.2% 0.0% 0.2%

0.2% 0.0% (0.0%) (0.2%)

(0.2%)
Saudi Arabia

(0.4%)

(0.3%)
Kuwait Bahrain Abu Dhabi Oman Dubai
YTD% 6.8 11.6 17.8 18.1 1.5 7.8 2.7 (7.4) 12.0 0.2 0.7 0.1 (0.1) (0.9) (0.2) (1.8) (0.5) (0.7) (0.3) 0.1

4
QE Index S&P Pan Arab S&P GCC

Source: Bloomberg

Source: Bloomberg

Asset/Currency Performance Gold Silver Crude Oil (Brent) Euro Yen GBP CHF AUD USD Index RUB BRL
Source: Bloomberg

Close ($) 1,693.00 32.26 114.14 1.26 78.39 1.59 1.05 1.02 81.24 32.27 0.49

1D% (0.2) (0.3) (0.4) 0.3 (0.1) 0.2 0.0 (0.3) (0.1) (0.2) 0.2

WTD% 0.1 1.6 (1.5) 0.2 0.0 0.2 (0.1) (1.2) 0.0 (0.1) (0.5)

YTD% 8.3 15.8 5.0 (2.8) 1.9 2.3 (1.7) (0.2) 1.3 0.4 (8.5)

Global Indices Performance DJ Industrial S&P 500 NASDAQ 100 DAX FTSE 100 CAC 40 Nikkei Shanghai BSE Sensex Bovespa RTS
Source: Bloomberg

Qatar

Close 13,047.48 1,403.44 3,069.27 6,964.69 5,657.86 3,405.79 8,679.82 2,037.68 17,313.34 56,863.91 1,391.02

1D% 0.1 (0.1) (0.2) 0.5 (0.2) 0.2 (1.1) (0.3) (0.7) 1.1 (1.0)

WTD% (0.3) (0.2)

Contacts

Ahmed M. Shehada
Head of Trading Tel: (+974) 4476 6535 ahmed.shehada@qnbfs.com.qa

Keith Whitney
Head of Sales Tel: (+974) 4476 6533 keith.whitney@qnbfs.com.qa

Saugata Sarkar
Head of Research Tel: (+974) 4476 6534 saugata.sarkar@qnbfs.com.qa

Sahbi Kasraoui
Manager - HNWI Tel: (+974) 4476 6544 sahbi.alkasraoui@qnbfs.com.qa

QNB Financial Services SPC

Contact Center: (+974) 4476 6666 PO Box 24025 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.

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