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## AlAbdullatif Al Ahli Bank National Bank of RAK Kuwait Int. Bank Agility Public War. Co. GCC Top Losers Allianz SF Knowledge Eco. City Enaya Aluminum Bahrain Arabtec Holding Co.
##

26 Sep 12 175.8 469,082.1 4.2 2,270 37 5:28 1D% (0.5) (0.5) (0.6) (0.3) (0.1) (1.2) (0.1) (0.1) (0.6) Close# 30.80 68.00 4.40 260.00 530.00 Close
#

25 Sep 12 126.4 471,121.1 3.4 2,350 39 11:21 WTD% (1.1) (1.1) (1.3) (0.8) (0.0) (2.2) (0.3) (1.2) (0.3) 1D% 9.6 6.3 5.3 2.0 1.9 YTD% 3.2 6.9 3.9 10.4 (8.7) 2.2 15.7 15.1 45.4 Vol. 000 847.7 70.1 0.8 3,330.3 620.6

%Chg. 39.1 (0.4) 22.6 (3.4) (5.1) TTM P/E N/A

8,552 8,538 8,524 8,510 8,496 8,482 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00

Close 11,510.26 2,060.25 2,052.83 2,519.27 1,347.05 1,713.00 2,027.55 1,096.10 4,926.78 Exchange

Qatar Commentary The QE index fell 0.5% to close at 8,504.9. Losses were led by the Real Estate and Banks & Financial Services indices, declining 1.2% and 0.6% respectively. Top losers were Qatar German Co. for Med. Dev. and Barwa Real Estate Co., decreasing 3.8% and 1.8% respectively. Among the top gainers, Al Ahli Bank rose 6.3%, while Dlala Brokerage & Inv. Holding Co. increased 0.5%. GCC Commentary Saudi Arabia: The TASI index declined 1.4% to close at 6,878.7. Losses were led by the Multi-Investment and Insurance indices, falling 3.9% and 2.7% respectively. Both Saudi IAIC Cooperative Insurance Co. and Allianz Saudi Fransi Cooperative Insurance Co. were down 10.0%. Dubai: The DFM index fell 1.8% to close at 1,562.9. The Real Estate & Construction index declined 3.1%, while the Investment & Financial Services was down 2.6%. Dubai National Insurance & Reinsurance decreased 10.0%, while Al Madina for Finance & Investment Co. was down 9.5%. Abu Dhabi: The ADX benchmark index decreased 0.3% to close at 2,597.6. The Energy index declined 1.2%, while the Real Estate index fell 1.1%. Abu Dhabi Aviation Co. decreased 4.8%, while United Arab Bank fell 4.7%. Kuwait: The KSE index gained 0.3% to close at 5,945.4. Gains were led by the Technology and Health Care indices, rising 3.2% and 1.2% respectively. Injazzat Real Estate Dev. Co. rose 9.4%, while Equip. Hold. Co. gained 8.2%. Oman: The MSM index decreased 0.2% to close at 5,550.4. The Banking & Investment index fell 0.5%, while the Industrial index was down 0.2%. Dhofar International Dev.& Inv. Holding Co. fell 2.5%, while Oman National Investment Corp. declined 1.9%. Qatar Exchange Top Gainers Al Ahli Bank Dlala Brokerage & Inv. Holding Co. Qatar Navigation Salam International Investment Co. Gulf International Services Qatar Exchange Top Vol. Trades Masraf Al Rayan Commercial Bank of Qatar Barwa Real Estate Co. Qatar Gas Transport Co. Qatar German Co. for Med. Dev. Close* 68.00 42.40 60.90 13.55 27.05 Close* 27.00 74.00 29.75 15.79 13.77 1D% 6.3 0.5 0.3 0.2 0.2 1D% (0.6) (1.1) (1.8) (0.3) (3.8) Vol. 000 70.1 6.9 44.1 54.8 131.8 Vol. 000 912.7 512.4 496.1 282.7 217.0 YTD% 29.5 191.4 (20.4) 23.5 24.8 YTD% (3.1) (11.9) (0.7) (9.8) 62.8

YTD% 15.8 29.5 (3.3) 2.0 41.3 YTD% 163.7 40.5 N/A (24.2) 59.2

Saudi Arabia Qatar Abu Dhabi Kuwait Kuwait Exchange Saudi Arabia Saudi Arabia Saudi Arabia Bahrain Dubai

1D% Vol. 000 (10.0) (6.4) (5.8) (4.8) (4.7) 3,838.8 4,051.7 1,123.3 22.0 10,086.8

72.25 15.45 49.20 0.50 2.41

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 Qatar German Co. for Med. Dev. Barwa Real Estate Co. Al Meera Consumer Goods Co. Zad Holding Co. Commercial Bank of Qatar Qatar Exchange Top Val. Trades Commercial Bank of Qatar Masraf Al Rayan Barwa Real Estate Co. QNB Group Qatar Meat & Livestock Co.
Source: Bloomberg (* in QR)

Close* 13.77 29.75 164.10 57.70 74.00 Close* 74.00 27.00 29.75 135.10 72.50

1D% (3.8) (1.8) (1.4) (1.4) (1.1) 1D% (1.1) (0.6) (1.8) (0.7) 0.0

Vol. 000 217.0 496.1 15.4 2.6 512.4 Val. 000 38,136.2 24,687.1 14,821.9 14,028.6 12,918.8

YTD% 62.8 (0.7) 8.6 21.5 (11.9) YTD% (11.9) (3.1) (0.7) (2.2) 127.6

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

Close 8,504.94 1,562.92 2,597.58 6,878.72 5,945.37 5,550.44 1,079.74

1D% (0.5) (1.8) (0.3) (1.4) 0.3 (0.2) (0.5)

WTD% (1.1) (2.6) (0.7) (2.5) 1.1 (0.9) (0.3)

MTD% 0.3 1.0 1.4 (3.6) 1.4 1.3 (0.6)

YTD% (3.1) 15.5 8.1 7.2 2.3 (2.5) (5.6)

Exch. Val. Traded ($ mn) 48.29 47.79 13.75 1,553.10 111.77 13.62 0.25

Exchange Mkt. Cap. ($ mn) 128,809.9 49,062.6 78,125.0 366,608.6 104,448.2 19,270.1 19,675.6

P/E** 9.0 14.3 9.1 14.3 31.7 10.6 10.2

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

Dividend Yield 4.4 4.0 4.8 3.4 3.4 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 fell 0.5% to close at 8,504.9. The Real Estate and Banks & Financial Services 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. Qatar German Co. for Med. Dev. and Barwa Real Estate Co. were the top losers, declining 3.8% and 1.8% respectively. Among the top gainers, Al Ahli Bank rose 6.3%, while Dlala Brokerage & Inv. Holding Co. increased 0.5%. Volume of shares traded on Wednesday increased by 22.6% to 4.2mn from 3.4mn on Tuesday. However, as compared to the 30-day moving average of 5.8mn, volume for the day was 28.6% lower. Masraf Al Rayan and Commercial Bank of Qatar were the most active stocks, contributing 21.9% and 12.3% to the total volume respectively.
Overall Activity Qatari Non-Qatari Buy %* 56.77% 43.23% Sell %* 42.36% 57.64% Net (QR) 25,332,374.63 (25,332,374.63)

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

Ratings and Global Economic Data

Ratings Updates
Company Mashreqbank (Mashreq) Agency Fitch Market Dubai Type* LT IDR/ ST IDR/ VR/ SR/ SR Floor/ Senior unsecured debt/ Subordinated debt LT IDR/ ST IDR/VR/ SR/ SR Floor/ Senior unsecured notes/ Senior unsecured - EMTN program/ Senior unsecured EMTN program Old Rating A/ F1/ bb+/ 1/ A/ A/ ANew Rating A/ F1/ bb+/ 1/ A/ A/ ARating Change Outlook Stable Outlook Change

BankMuscat

Fitch

Oman

A-/ F2/ bbb/ 1/ A-/ A-/ A-/ F2

A-/ F2/ bbb/ 1/ A-/ A-/ A-/ F2

Stable

Source: News reports (* LT Long Term, ST Short Term, FSR- Financial Strength Rating, IDR Issuer Default Rating, VR - Viability Rating, SR- Support Rating)

Global Economic Data

Date 09/26 09/26 09/26 09/26 09/26 09/26 09/26 09/26 09/26 09/26 Market US US US France France France Germany Germany Italy Italy Source MBA Commerce Department Commerce Department Insee Labor Ministry Labor Ministry Destasis Destasis Istat Istat Indicator MBA Mortgage Applications New Home Sales New Home Sales MoM Consumer Confidence Indicator Jobseekers- Net Change Total Jobseekers Consumer Price Index (MoM) Consumer Price Index (YoY) Retail Sales s.a. (MoM) Retail Sales (YoY) Period 21-September August August September August August September September July July Actual 2.80% 373K -0.30% 85 23.9 3011.0k 0.00% 2.00% -0.20% -3.20% Consensus 380K 2.20% 86 30 0.00% 2.00% 0.00% -0.80% Previous -0.20% 374K 3.60% 86 41.3 2987.1k 0.40% 2.10% 0.40% -0.50%

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

News
Qatar Qatar Holding denies AUX stake talks Qatar Holding has denied that it is in talks to buy a minority stake in the Brazilian gold company AUX, owned by billionaire Eike Batista. Qatar Holding has made it clear that it has never been involved in discussions on acquiring any stake in AUX. (GulfBase.com) Qatargas signs long-term agreement with KEPCO Qatargas Operating Company Ltd (Qatargas) has signed a new long-term sales and purchase agreement to Liquefied Natural Gas (LNG) with the Kansai Electric Power Company (KEPCO) of Japan. Under the agreement, Qatargas 3 will deliver 0.5mn tons of LNG per annum for a period of 15 years starting from 2013. (AME Info) QIB plans to issue dollar-denominated sukuk issue Qatar Islamic Bank (QIB) plans to issue a dollar-denominated sukuk under its recently approved $1.5bn sukuk issuance program. Deutsche Bank, HSBC, Standard Chartered and QInvest are mandated for the sukuk. Investor meetings will begin today in Kuala Lumpur followed by Singapore before moving to Abu Dhabi and Dubai on September 30. They will conclude in London on October 1. (GulfBase.com) QE conducts survey to evaluate listed companies investor relations efforts According to Qatar Exchanges (QE) survey on investor relation (IR) practices of QE-listed companies, over 80% of the listed companies have or are in the process of establishing a dedicated IR department. It also showed that about 70% of the companies upload disclosures on their company websites in addition to placing them on QEs corporate news service. Nearly 50% of the listed companies IR departments report to either the CEO or CFO. (QE) Al Khalijis Board approves changing core banking system Al Khaliji Commercial Banks (Al Khaliji) board has approved changing the banks core banking system. The board also discussed a number of other business, operational and governance issues on the agenda. (QE)
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 QTEL to disclose its 3Q2012 financial statements on October 21 Qatar Telecom (QTEL) will disclose its 3Q2012 financial statements for the period ending September 30, 2012 on October 21. (QE) International ECB not to fill Greek budget gaps The European Central Bank (ECB) Governing Council member, Jens Weidmann said ECB will not fill potential financing gaps in Greece's budget. Earlier, Greek Deputy Finance Minister Christos Staikouras said Athens could ask the ECB to roll over its Greek bonds to help Athens plug any financing gaps from a budget shortfall or lower than expected privatization revenue. (Reuters) Germany clears last hurdle to ESM bailout fund ratification Germany has cleared the last legal hurdle to ratify the Eurozone's new bailout fund with a cabinet declaration that addresses concerns raised by the country's Constitutional Court. Germany is the last country in the 17-member Eurozone to complete ratification of the European Stability Mechanism (ESM). (Reuters) Spain to pass reforms, budget cuts with eye on aid Spain will announce a series of economic reforms and a tight 2013 budget today, aimed at avoiding the political humiliation of asking for an international bailout from Brussels. Prime Minister Mariano Rajoy will enact further cutbacks as his efforts to bring down public deficits have been undermined by falling tax revenues in recessionary condition. Reforms intended to win over skeptical investors are likely to include a new tax oversight body as recommended by Brussels, limitations on early retirement, new taxes on greenhouse emissions and stock transactions, and eliminating some tax exemptions. Spain is negotiating the terms of a European aid package that would ease Madrid's unsustainable borrowing costs. (Reuters) Greek government completes draft of austerity cuts, lenders object to austerity plan Greece's government has finished drafting a series of austerity cuts worth 12bn to appease international lenders. The bulk of cuts in the unpopular package involve slashing wages, pensions and welfare benefits. However, Greece's foreign lenders have rejected some parts of a 12bn austerity package prepared by the Greek government. The so-called "Troika" of inspectors from the European Commission, the European Central Bank and the International Monetary Fund need to approve the austerity plan to trim roughly 11.7bn from the state budget over the next two years. This is essential for Athens to get a green light for the bailout money it needs to avoid bankruptcy. (Reuters) Chinese industrial profits fall 6.2% in August Chinese industrial companies profit dropped for a fifth month in August, adding to signs the nations economic slowdown is extending into a seventh quarter. The National Bureau of Statistics said net income fell 6.2% from a year earlier to 381.2bn yuan ($60.4bn). Thats the fastest drop this year and compares with a 5.4% decline in July and a 1.7% slide in June. This may increase pressure to step up easing measures as risks grow that annual expansion in the economy will be the weakest in 22 years. (Bloomberg) Regional Gulf states heading for larger budget surpluses According to Reuters poll, most Gulf Arab oil exporters will enjoy larger budget surpluses in 2012 than previously estimated, because the crude oil prices have rebounded. This is in spite of a weak global economic outlook which limits GDP growth rates. (GulfBase.com)

S&P: Takaful growth prospects diverging According to a report by S&P, the global takaful market is becoming an increasingly significant niche within the wider insurance industry. The ratings agency stated that takaful is most prevalent in the GCC region and Southeast Asia. S&P has anticipated the rapid growth rate that the global takaful market has seen so far will slow down, given the stuttering global economy and the relative maturity of some of the larger takaful markets. In this global growth pattern, S&P expects the GCC market to continue to significantly grow faster than local and global conventional insurance, while Southeast Asia is likely to see constrained growth due to tightening regulatory requirements in Malaysia. (Reuters) Middle East telcos mull alliance to challenge Facebook might Middle East telecommunications firms are discussing the idea of creating a pan-Arab online platform that would earn them more revenue from their networks by challenging Facebook and other Western internet behemoths. The ambitious project faces technical and financial obstacles and may never be implemented on a large scale. However, proponents argue the common language and culture shared by the worlds more than 350mn Arabic speakers, along the webs of affiliated companies which Gulf operators own across the MENA region, could make the project viable. (Gulf-Times.com) Saudi oil output stood at 9.8mn barrels for August Saudi Arabias daily crude oil production averaged 9.753mn barrels last month and its supply to the market stood at 9.835mn barrels. The Kingdom said it will continue to produce at these levels if needed and remains committed to meeting higher customer demand. (Bloomberg) Saudi Arabia extends bid deadline for air license Saudi Arabias General Authority for Civil Aviation extended a deadline for airlines to bid for a license to operate local and international flights from the Kingdom until next month. The extension was granted based on the request from the companies bidding for the license. (Bloomberg) GE wins $1.2bn in contracts for gas-powered turbines General Electric Company's power and water division has won contracts worth $1.2bn from power producers in the US, Japan and Saudi Arabia for its newly-developed heavy-duty gas turbines. GE will supply six heavy-duty gas turbines to a Japanese utility Chubu for a 2,300MW plant, and eight gas turbines for a Saudi Electric Company project in Riyadh. GE expects to deliver these turbines between 2013 and 2016. (Reuters) Sahara Petrochemicals Co signs SR500mn three-year credit facilities agreement with Riyad Bank The Sahara Petrochemicals Company has signed a three-year standby medium-term revolving credit facilities agreement worth SR500mn with Riyad Bank. This facility is supposed to provide standby support for the companys financial requirements for working capital and the needs of the companys future investments. (Tadawul) SFD to finance SR828.7mn for Tunisia projects Saudi Fund for Development signed three agreements to provide soft loans worth SR828.7mn to finance Tunisias development projects, bringing the total SFD loans to the country to SR2.2bn. SFD will give SR450mn for an electricity project in Sousa, SR318.75mn to finance a gas pipeline project and SR60mn to develop the countrys vocational training system. (GulfBase.com) Abdullah A. M. Al-Khodari Sons Co wins two contracts from Ministry of Municipal & Rural Affairs Abdullah A. M. AlKhodari Sons Company has won two contracts from Ministry of Municipal & Rural Affairs for waste collection and transport in
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Tabuk City (Area 1) and (Area 2), valued at SR39.8mn and SR35.8mn respectively. (Tadawul) Kafala approves SR66.9mn in business guarantees Kafala has approved SR66.9mn in business guarantees for 100 small & medium sized businesses in the Saudi tourism and entertainment industry. The Director of Saudi Industrial Development Fund (SIDF), Ali bin Abdullah Al-Aid said the participating banks have already provided SR132.6mn to fund 65 businesses in tourism and entertainment industry. He said SIDF guarantees up to 80% of the total value of finance given to tourism and entertainment activities, where each guarantee is worth up to SR1.6mn. (GulfBase.com) SCB grants SR4.7bn loans According to Saudi Saving & Credit Bank (SCB) Director Dr. Abdulaziz Al-Hunaishil, SCB has granted SR4.7bn in loans since the beginning of 2012. The bank has financed 2,369 entrepreneurs with more than SR187mn, and granted social loans worth more than SR4.5bn to 130,173 citizens for marital, family and house restoration purposes. (GulfBase.com) UAE Central Bank seeks solution for loan defaulted by nationals The UAE Central Bank has asked banks and financial institutions to find a solution to the issue of settling the loans defaulted by the UAE nationals. (GulfBase.com) JP Morgan Chase and Blakeney Management invest $20mn in Dubai e-commerce firm J.P. Morgan Chase and Blakeney Management have invested over $20mn in a Dubai-based ecommerce firm, Namshi, which sells designer clothing, shoes and accessories. Namshi offers over 400 international brands to customers across the Gulf region. The firm plans to use the investment to expand its service, mainly in Saudi Arabia. (Reuters) Sharjah house rents stable in 3Q2012 According to a report from the property management company Asteco, Sharjah rents have returned to a stable position in 3Q2012 after witnessing a 6% decline in 2Q2012. In 2Q2012, apartment rental rates declined due to stricter accommodation rules introduced by the Sharjah government. (GulfBase.com) Chemical, oil & gas sector in Jafza generated trade worth AED45bn in 2011 Jafza has recorded a 6% jump in the number of new companies to 421 in the chemical and oil & gas sector in 2011. Together these companies generated trade worth AED45bn in 2011. The combined sector has seen a growth of 32% over the last three year. (AME Info) NBF to replace Barclays on the UAE rate panel National Bank of Fujairah has been chosen to replace Barclays on the panel which sets the Emirates interbank offered rate (EIBOR). In July, Barclays withdrew from the EIBOR panel which determines the indicative interbank lending rates, weeks after it paid a $453mn fine to the US and British regulators for manipulating the London interbank offered rate (LIBOR). (Reuters) Mina al-Ahmadi refinery restarts Kuwaits Mina Al-Ahmadi refinery has been restarted after a brief shutdown on Wednesday and is expected to return to full capacity within 24 hours. The refinery was forced to shut down after supply of sea water pumped to it stopped. After the water flow was restored, the refinery was restarted. (Reuters)

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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 Sep-12

0.5%
0.0%
122.2 107.5 101.7 106.0 98.2

0.3%

(0.5%)
(1.0%)

(0.5%) (1.4%)

(0.5%)

(0.2%) (0.3%)

(1.5%)
(2.0%)

(1.8%)
Saudi Arabia Kuwait Bahrain Abu Dhabi Oman
Dubai
YTD% 9.8 14.0 18.8 23.4 3.5 8.1 5.3 (8.9) 20.6 6.6 5.4

(2.5%)

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 ($) 1,752.75 33.96 110.92 1.29 77.75 1.62 1.06 1.04 79.89 31.33 0.49

1D% (0.4) 0.6 0.2 (0.2) (0.1) (0.1) (0.2) (0.2) 0.4 0.9 (0.3)

WTD% (1.1) (1.7) (1.3) (0.8) (0.5) (0.4) (0.7) (0.8) 0.7 1.0 (0.5)

YTD% 12.1 21.9 2.1 (0.7) 1.1 4.0 (0.0) 1.6 (0.4) (2.5) (8.3)

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 13,413.51 1,433.32 3,093.70 7,276.51 5,768.09 3,414.84 8,906.70 2,004.17 18,632.17 60,478.05 1,456.99

1D% (0.3) (0.6) (0.8) (2.0) (1.6) (2.8) (2.0) (1.2) (0.3) (0.0) (3.6)

WTD% (1.2) (1.8) (2.7) (2.3) (1.4) (3.3) (2.2) (1.1) (0.6) (1.4) (4.3)

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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