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## Dubai Financial Market Arkan Build. Mat. Co. Bank of Sharjah Emaar Properties Com. Group Cont. Co. GCC Top Losers NBQ Gulf Pharm. Ind. Allianz SF SADAFCO Mabanee Co.
##

16 Sep 12 284.1 473,757.7 8.4 3,983 38 22:8 1D% 0.4 0.4 0.3 0.4 0.2 0.5 (0.2) 0.3 1.7 Close# 1.02 0.81 1.18 3.58 1,340.00 Close
#

13 Sep 12 282.5 472,452.0 7.5 4,106 39 13:21 WTD% 0.4 0.4 0.3 0.4 0.2 0.5 (0.2) 0.3 1.7 1D% 6.3 3.8 3.5 3.2 3.1 YTD% 4.3 8.2 4.5 12.2 (8.0) 5.0 19.6 14.9 47.9 Vol. 000 26,916.3 716.1 1,612.9 24,280.5 85.2

%Chg. 0.6 0.3 12.3 (3.0) (2.6) TTM P/E N/A 9.7 11.4 10.8 10.7 3.1 12.3 14.0 14.1 YTD% 21.4 (19.8) (39.8) 39.3 (6.7) YTD% (8.8) 43.8 410.9 36.9 40.7

8,620

8,610
8,600 8,590

8,580
8,570 8,560 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00

Close 11,638.96 2,083.44 2,065.44 2,559.34 1,356.43 1,760.37 2,097.27 1,093.79 5,010.11 Exchange Dubai Abu Dhabi Abu Dhabi Dubai Kuwait Exchange Abu Dhabi Abu Dhabi

Qatar Commentary The QE index rose 0.4% to close at 8,600.0. Gains were led by the Consumer Goods & Services and Real Estate indices, gaining 1.7% and 0.5% respectively. Top gainers were Qatar Fuel Co. and Qatar Meat & Livestock Co., both rising 2.5%. Among the top losers, Mannai Corp. fell 1.7%, while Dlala Brokerage & Inv. Hold. Co. declined 1.2%. GCC Commentary Saudi Arabia: The TASI index declined 0.1% to close at 7,155.8. Both the Retail and Agriculture & Food Industries indices decreased 0.4%. SABB Takaful fell 3.1%, while Anaam Intern. Holding Group Co. was down 2.2%. Dubai: The DFM index increased 1.4% to close at 1,596.3. Gains were led by the Investment & Financial Services and Services indices, rising 2.5% and 2.4% respectively. Dubai Financial Market increased 6.3%, while Al Madina for Finance and Investment Co. gained 4.9%. Abu Dhabi: The ADX benchmark index rose 0.8% to close at 2,629.4. Gains were led by the Real Estate and Telecommunication indices, increasing 2.7% and 1.5% respectively. Eshraq Properties Co. rose 6.9%, while Arkan Building Materials Co. gained 3.9%. Kuwait: The KSE index decreased 0.1% to close at 5,785.3. The Parallel Market index fell 1.0%, while the Consumer Goods index decreased 0.9% respectively. Al-Shamel International Holding Co. declined 10.5%, while Sanam Real Estate Co. was down 8.6%. Oman: The MSM index gained 0.6% to close at 5,620.7. The Banking & Investment index rose 0.7%, while the Industrial index was up 0.5%. Oman United Ins. rose 6.4%, while Oman Inv. & Finance was up 4.7%. Qatar Exchange Top Gainers Qatar Fuel Co. Qatar Meat & Livestock Co. Commercial Bank of Qatar Doha Insurance Co. Qatar & Oman Investment Co. Qatar Exchange Top Vol. Trades Barwa Real Estate Co. Vodafone Qatar United Development Co. Qatar Gas Transport Co. Qatar & Oman Investment Co. Close* 294.50 66.90 75.50 30.00 12.41 Close* 30.55 9.04 18.75 16.00 12.41 1D% 2.5 2.5 2.3 1.7 1.3 1D% 1.2 0.0 (0.8) 0.1 1.3 Vol. 000 97.1 238.3 208.6 28.8 387.2 Vol. 000 2,957.6 1,391.5 598.3 407.7 387.2 YTD% 50.3 110.0 (10.1) 32.2 24.1 YTD% 2.0 19.7 7.2 (8.6) 24.1

1D% Vol. 000 (8.3) (4.3) (2.1) (1.9) (1.8) 95.0 3.0 762.0 57.7 296.8

1.65 2.92 140.00 63.25 1,100.00

Saudi Arabia Saudi Arabia Kuwait

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 Mannai Corp. Dlala Brokerage & Inv. Hold. Co. United Development Co. Ezdan Real Estate Co. Qatar Insurance Co. Qatar Exchange Top Val. Trades Barwa Real Estate Co. Qatar Fuel Co. Industries Qatar Qatar Meat & Livestock Co. Commercial Bank of Qatar
Source: Bloomberg (* in QR)

Close* 97.00 42.50 18.75 20.35 71.00 Close* 30.55 294.50 143.30 66.90 75.50

1D% (1.7) (1.2) (0.8) (0.7) (0.6) 1D% 1.2 2.5 0.8 2.5 2.3

Vol. 000 0.4 7.6 598.3 200.3 22.0 Val. 000 90,695.4 28,914.4 17,964.9 15,899.4 15,656.3

YTD% (2.0) 192.1 7.2 (8.3) 9.8 YTD% 2.0 50.3 7.7 110.0 (10.1)

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

Close 8,600.04 1,596.27 2,629.44 7,155.77 5,785.33 5,620.70 1,074.53

1D% 0.4 1.4 0.8 (0.1) (0.1) 0.6 0.3

WTD% 0.4 1.4 0.8 0.7 (0.1) 0.6 0.3

MTD% 1.4 3.1 2.6 0.2 (1.3) 2.6 (1.1)

YTD% (2.0) 17.9 9.5 11.5 (0.5) (1.3) (6.0)

Exch. Val. Traded ($ mn) 78.02 74.44 29.80 1,003.81 85.16 15.11 1.32

Exchange Mkt. Cap. ($ mn) 130,141.2 49,606.1 78,600.7 382,308.2 99,371.8 19,418.0 19,561.0

P/E** 9.1 14.6 9.2 14.8 30.2 10.7 10.1

P/B** 1.7 0.7 1.1 1.9 1.1 1.6 0.8

Dividend Yield 4.3 4.0 4.7 3.3 3.5 4.5 4.6 Page 1 of 5

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

Qatar Market Commentary

The QE index rose 0.4% to close at 8,600.0. The Consumer Goods & Services and Real Estate indices were the major contributors to the gains. The index increased on the back of buying support from non-Qatari shareholders despite selling pressure from Qatari shareholders. Qatar Fuel Co. and Qatar Meat & Livestock Co. were the top gainers, both rising 2.5%. Among the top losers, Mannai Corp. fell 1.7%, while Dlala Brokerage & Inv. Hold. Co. declined 1.2%. Volume of shares traded on Sunday increased by 12.3% to 8.4mn from 7.5mn on Thursday. Moreover, as compared to the 30-day moving average of 5.8mn, volume for the day was 46.1% higher. Barwa Real Estate Co. and Vodafone Qatar were the most active stocks, contributing 35.1% and 16.5% to the total volume respectively.
Overall Activity Qatari Non-Qatari Buy %* 68.27% 31.73% Sell %* 75.61% 24.38% Net (QR) (20,883,783.92) 20,883,783.92

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

News
Qatar Qatar tops GCC rail investments with $41.8bn plans According to a Zawya report; Qatars railway plans lead the GCC countries rail plans, with an estimated $41.8bn worth of projects in the pipeline. The report said rail projects worth as much as $149bn are in the planning or construction stages across the GCC region over the next decade. (Qatar Tribune) EFG Hermes shareholders approve QInvest deal Shareholders of EFG Hermes has reaffirmed their approval for a planned tie-up with QInvest after demands by the regulator for more information on the deal were met. The Egyptian Financial Supervisory Authority (EFSA) had earlier rejected decisions approved by EFG shareholders in June because the firm had not clarified on points including minority rights. (Reuters) QIB board backs $1.5bn sukuk program Qatar Islamic Bank's (QIB) board has approved its $1.5bn sukuk issuance program. The bank has hired HSBC Holdings, Standard Chartered, Deutsche Bank AG and QInvest to manage the issuance. (Reuters) Mannai Corporation to meet on October 1 to discuss proposed increase of share capital Mannai Corporation announced that its next board meeting will be held on October 1 to discuss the proposed increase of Mannai Corporation share capital by way of rights issue to company shareholders. (QE) QTEL offer for Wataniya Telecom shareholders open till October 4 Qatar Telecom (Qtel) has had positive response thus far to its offer to acquire all of the issued share capital it does not currently own in Wataniya Telecom, and wishes to remind shareholders that they have until 4th October to accept the Offer of KD2.6 per share. (QE) QFIB acquires prime properties in Central London Qatar First Investment Bank (QFIB) has acquired two properties in Central London the Leinster Inn Hotel at Leinster Square, and Westbourne House, Westbourne Grove, London. QFIB has acquired these prime properties in association with a consortium of investors from the GCC. The consortium has appointed the Alchemi Group, a UK-based property development company, as the development manager. Through these acquisitions, QFIB aims to capitalize on the growing demand for real estate in Central London by converting both the properties into high-end luxury residential apartments. (AME Info) Trading suspended for Ezdan Real Estate Co shares today due to companys EGM Qatar Exchange (QE) has suspended trading on Ezdan Real Estate Companys shares today due to the companys scheduled EGM. (QE) International ECB: Spain must seek aid first before ECB buys bonds European Central Bank (ECB) policymaker Ewald Nowotny said Spain would have to apply for a rescue package in order to qualify for inclusion in the ECBs plan to buy debt of struggling Eurozone members. Nowotny said it is up to individual countries to ensure that the ECBs bond-buying plan helps to overcome the Eurozones sovereign debt crisis. (Gulf-Times.com) Brazils Central Bank cuts reserve requirements Brazils Central Bank has reduced reserve requirements to free up 30bn reais ($14.9bn) in credit as President Dilma Rousseff pushes banks to lower borrowing costs in the country. Over the past year, the Central Bank has cut its benchmark rate by 500 basis points, more than all Group of 20 nations, though borrowing costs are still among the highest in the world. The average interest rate charged for personal loans stood at 36% in July. (Bloomberg) Finance industry warns of cliff effect in ECBs bond plan The Institute of International Finance (IIF) has warned the ECBs plan to buy sovereign bonds may result in a cliff effect if a country fails to meet conditions tied to the purchases. IIFs market monitoring group said termination of bond purchases could lead to an abrupt market correction. The IIFs risk group, headed by Jacques de Larosiere and David Dodge, urged Eurozone governments to pursue structural reforms that will ensure a path to economic growth, echoing concerns by the ECB that it has only bought time for the Eurozone nations to implement reforms needed to stabilize their economies. Further delays in reviewing Greek budget-cutting plans and unblocking aid would be a key source of event risk. (Bloomberg) OPEC governor: Oil above $100 no threat to world economy Irans OPEC governor Mohammad Ali Khatibi said Current oil prices above $100 a barrel are not a threat to the world economy and political pressure on producers to raise output is driven by the approach of US presidential elections. (Qatar Tribune) Regional Deutsche Bank to trim Mideast investment banking staff Deutsche Bank is trimming several senior executive jobs in its investment banking business in Dubai, including directors, as it cuts costs to adapt to a tougher global investment banking environment. According to a source familiar with the matter, at
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least seven people would be leaving front office roles, and three or four of the jobs would be at the director level. (Reuters) GACA to finalize bidding process The General Authority of Civil Aviation (GACA) has met with seven foreign airlines shortlisted from a total of 14 carriers, briefing them on the procedure to finalize the bidding process for airline license this month. GACA has said licensing will not be awarded this month as previously reported, but should be ready by February next year. (GulfBase.com) Saudi Arabia in talks with Turkey on power-grid link Saudi Arabias Electricity & Co-Generation Regulatory Authority Governor Abdullah al-Shehri said the country is engaged in talks with Turkey to connect its power grid and is studying a possible link with Egypt. A tie-up with Turkey would open the doors to power connections across Europe and international links would create export opportunities for Saudi producers of renewable energy. Moreover, he said Saudi Arabia seeks private investment in its effort to develop solar power and other forms of renewable energy. He said the country is aiming to make solar projects operational within 10 years. (Bloomberg) HSBC Saudi pipeline to cement top underwriter title HSBC Holdings is in talks to bring more Saudi Arabian companies to the bond market as growth in the biggest Arab economy helps the bank fend off rivals for the regions top underwriter title. London-based HSBC helped arrange $6.4bn of sukuk in the Kingdom, accounting for 70% of its Middle East bond business. The bank was sole underwriter for a SR15bn offering in January by the General Authority of Civil Aviation to fund an airport in the Red Sea port city of Jeddah. (Bloomberg) RCJY signs SR175.5mn contract with APTC Contracting Co Royal Commission for Jubail and Yanbu (RCJY) has signed a contract for the construction of a number of support buildings at Jubail Industrial College. The contract, valued at SR175.5mn, was signed with the APTC Contracting Company based in Dammam. The company will undertake the construction of a training center, seven commercial units, a conference hall, a mosque, a security building and two water tanks. (AME Info) ACE Arabia receives extension of temporary approval for 29 insurance products from SAMA ACE Arabia Cooperative has received extension of temporary approval for 29 insurance products from SAMA. (Tadawul) Al Ahsa Development Co approves extension of MoU with Indonesian Co Al Ahsa Development Companys board has received extension for a previously signed MoU with an Indonesian company, a manufacturer of fabrics for an additional period of four months ending December 31, 2012. The MoU aims to re-operate the companys textile factory within the period stipulated by the MoU. The MoUs scope of works includes feasibility studies on management model, technical, marketing, and financial aspects, and to begin commercial operation of textile factory. (Tadawul) Saudi retailer Alhokair signs SR517mn loan facility Saudi Arabian retailer, Fawaz Abdulaziz Alhokair & Company has signed an Islamic loan facility worth SR517mn with Samba Financial Group. The loan will be used to finance the acquisition of Nesk Group. (Bloomberg) Saudi Arabias GOSI invests $13.5bn in listed companies The General Organization for Social Insurance (GOSI), the Saudi Arabian semi state-run pension fund has invested SR50.7bn in 62 companies listed on the Saudi stock exchange. Investments include SR18.8bn in banks, SR17.9bn in industrial companies and SR10.3bn in services and telecommunications companies. (Bloomberg)

Abdullah Al-Othaim Markets Cos board proposes cash dividends for FY2011 Abdullah Al-Othaim Markets Companys board has proposed the distribution of cash dividends of SR22.5mn for the fiscal year 2011, at SR1 per share. Dividends will be paid to shareholders at the end of trading of the General Assembly meeting day, which will be announced later. Payment date will also be announced after the approval of the shareholders General Assembly. (Tadawul) Empower repays AED83mn loan installment Emirates Central Cooling Systems Corporation (Empower) has cleared a half-yearly loan installment of AED83mn, part of its syndicated loan facility from a consortium of banks, with Emirates NBD being the facility agent. This loan was used to build Empower's plants and networks in Dubai International Financial Centre, Business Bay, Mirdif, TECOM C and Al Quoz projects. (AME Info) Emaar Properties to build five-star hotel in Dubai Emaar Properties is planning to build a new hotel in downtown Dubai. The proposed project is Emaar Properties first major hotel project since the emirate's property crisis erupted in 2009. Emaar said the construction of the five-star hotel will be financed mainly through pre-sales of serviced apartments. The hotel will have 200 rooms and 542 serviced apartments. Apartment sales will begin from September 22. (Reuters) Dubai Airports to expand cargo facilities in $7.8bn plan Dubai Airports said it will expand the cargo handling facilities at the Dubai International Airport by adding two new buildings, as part of its $7.8bn strategic plan to build a global air transport hub. The airport operator, which runs both Dubai International and Dubai World Central, said the expansion was in response to the growing volumes of freight transported through Dubai. (GulfTimes.com) Dubai plans bond sale to repay AED6.5bn debt; economy to grow 4% this year According to Abdulrahman Al Saleh, Director General of Dubais Finance Department, Dubai plans bond sale to repay AED6.5bn debt due April 2013. He reportedly said Dubais economy is set to grow 4% this year. The Growth will be supported by tourism, trade and transport. (Bloomberg) Dar Al Takaful eyes 40% growth Dar Al Takaful said it is confident of achieving premium targets set for 2012 through its plans to introduce various products to target small & medium enterprises, travel, medical and institutional businesses to bring profitable volumes. The company said it intends to grow by at least 40% every year for the next two years. (GulfBase.com) Emirates Glass partners wins projects worth AED20mn in Turkey Emirates Glass (EGL), wholly owned by Dubai Investments, has received AED20mn worth of orders in Turkey for projects to install self-cleaning glass. Emirates Glass has signed a partnership with property investment and development major, Feryapi on a portfolio of projects. (AME Info) Al Qasba receives 1.3mn visitors in 1H2012 According to Al Qasba Development Authority, Al Qasba has attracted 1.3mn visitors in 1H2012. Most number of visitors came for leisure and recreational purposes, with 379,193 visitors arriving at the restaurants and cafes in Al Qasba. (AME Info) 3,565 Abu Dhabi residential units completed in 2Q2012 According to Statistics CentreAbu Dhabis report, a total of 1,516 buildings were completed in the Emirate of Abu Dhabi during 2Q2012, of which 68% were in Abu Dhabi, 9% in Al Ain and 23% in Al Gharbia. Out of total buildings completed during this period, 89 were completed with extensions on the same parcel of land and additions of new units to existing buildings. Moreover, a total of 3,302 residential units were completed in
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the Abu Dhabi region during 2Q2012, indicating a increase of 17.2% QoQ, while the number of residential units completed in Al Gharbia region advanced 42.2% QoQ to reach 118 units. However, residential units in Al Ain region declined by 44 units to reach 145 units. (GulfBase.com) Nawras launches fixed number portability service for corporate customers Nawras has started to offer the first fixed number portability 'FNP' service in Oman. The introduction of this service gives business customers the opportunity to keep their existing numbers when joining Nawras from another telecommunications operator. (AME Info) Warba Bank launches Murabaha finance Warba Bank has launched Murabaha service to finance customer needs. Compliant with Islamic Shariah principles, the new service allows customers to purchase their goods and pay their easy installments within a wide range of six months to 15 years period. (GulfBase.com) Bahrain set to implement new building regulations Bahrain is set to implement new building regulations from 2013. The regulations will require new developments to be constructed as per international environmental standards. The new building code also requires the use of eco-friendly best practices in all new developments. (GulfBase.com) Al Baraka Turk Participation Bank concludes Islamic finance deal in Turkey Al Baraka Turk Participation Bank, a subsidiary banking unit of Al Baraka Banking Group, has concluded an Islamic finance deal worth $450mn with the participation of a group of major international banks. A total of 32 banks participated in the facility, including Standard Chartered Bank, Noor Islamic Bank, ABC Islamic Bank and Emirates NBD. Bank Islam Brunei Berhad Darussalam and Al Hilal Bank were nominated as the Mandated Lead Arrangers. (Bahrain Bourse) BMMI receives new bridge contract BMMI has won a new bridge contract worth $25mn from the Defense Logistics Agency of the US Government as an extension to its current Prime Vendor Contract. The contract term will be from November 1, 2012 to January 17, 2013. (Bahrain Bourse)

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Rebased Performance

Daily Index Performance

140.0 130.0 120.0 110.0 100.0

90.0
98.2 123.6 109.1 103.1 106.0

1.5%
1.0% 0.5% 0.0% 0.4% 0.6% 0.3%

1.4% 0.8%

Saudi Arabia

Kuwait

Bahrain

Abu Dhabi

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

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 ($) 1,770.40 34.66 117.59 1.31 78.39 1.62 1.08 1.06 78.85 30.46 0.50

1D% 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

WTD% 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

YTD% 13.2 24.5 8.2 1.3 1.9 4.3 1.4 3.3 (1.7) (5.2) (7.3)

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

Close 13,593.37 1,465.77 3,183.95 7,412.13 5,915.55 3,581.58 9,159.39 2,123.85 18,464.27 62,105.47 1,589.40

Oman

1D% 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

WTD% 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Dubai
YTD% 11.3 16.6 22.2 25.7 6.2 13.3 8.3 (3.4) 19.5 9.4 15.0

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

Qatar

80.0

(0.5%)

(0.1%)

(0.1%)

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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