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## IFA Hotels & Resorts Com. Real Est. Co Nat. Ind. Gr. Holding BBK Gulf Cable & Elec. Ind. GCC Top Losers
##

27 Sep 12 135.4 469,034.2 3.5 2,439 38 15:15 1D% (0.1) (0.1) (0.0) (0.1) (0.2) (0.5) 0.2 (0.0) 0.3 Close# 285.00 79.00 216.00 0.39 1,140.00 Close
#

26 Sep 12 175.8 469,082.1 4.2 2,270 37 5:28 WTD% (1.2) (1.1) (1.4) (0.9) (0.2) (2.7) (0.0) (1.3) (0.1) 1D% 7.5 5.3 4.9 3.7 3.6 YTD% 3.0 6.9 3.9 10.3 (8.9) 1.6 15.9 15.1 45.8 Vol. 000 0.6 7,591.1 6,952.7 25.0 104.2

%Chg. (23.0) (0.0) (16.3) 7.4 2.7 TTM P/E N/A 9.5 11.3 10.6 10.6 3.0 11.9 14.0 13.9 YTD% (40.0) 2.6 (16.9) (5.8) (19.7) YTD% (1.8) 38.7 27.4

8,510

8,505
8,500 8,495

8,490
8,485 8,480 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00

Close 11,495.05 2,059.06 2,052.73 2,516.59 1,344.12 1,704.04 2,032.53 1,095.72 4,939.53 Exchange Kuwait Kuwait Kuwait Bahrain Kuwait Exchange Muscat

Qatar Commentary The QE index fell 0.1% to close at 8,493.7. Losses were led by the Real Estate and Transportation indices, declining 0.5% and 0.2% respectively. Top losers were Al Ahli Bank and Doha Bank, decreasing 1.6% and 1.4% respectively. Among the top gainers, Qatar German Co. for Med. Dev. rose 3.3%, while Qatar General Ins. & Reins. Co. increased 1.5%. GCC Commentary Saudi Arabia: The TASI index declined 1.0% to close at 6,807.7. Losses were led by the Insurance and Real Estate Development indices, falling 2.7% and 2.1% respectively. Amana Cooperative Insurance Co. fell 10.0%, while Knowledge Economic City was down 9.7%. Dubai: The DFM index rose 0.4% to close at 1,569.5. The Telecommunication index rose 2.0%, while the Transportation index gained 1.1%. Al-Mazaya Holding Co. jumped 15.0%, while Ekttitab Holding Co. gained 6.4%. Abu Dhabi: The ADX benchmark index increased 0.2% to close at 2,603.0. The Real Estate index gained 0.6%, while the Banking index increased 0.5%. Eshraq properties Co. rose 3.2%, while Sudan Telecom. Co. was up 2.0%. Kuwait: The KSE index gained 0.8% to close at 5,990.5. Gains were led by the Technology index increased 2.6%, while the Real Estate index rose 1.7%. Both Flex Resorts & Real Estate co. and Dar Al Thuraya Real Estate Co. gained 9.1%. Oman: The MSM index decreased 0.4% to close at 5,529.2. Losses were led by the Banking & Investment and Services & Insurance indices, falling 0.5% and 0.1% respectively. United Finance declined 2.3%, while Gulf Int. Chemicals fell 1.9%. Qatar Exchange Top Gainers Qatar German Co. for Med. Dev. Qatar General Ins. & Reins. Co. Qatar & Oman Investment Co. Commercial Bank of Qatar Qatar Fuel Co Qatar Exchange Top Vol. Trades Barwa Real Estate Co. Masraf Al Rayan Qatar Gas Transport Co. Vodafone Qatar Qatar German Co for Medical Dev. Close* 14.22 54.80 11.91 74.50 286.20 Close* 29.45 27.00 15.81 9.05 14.22 1D% 3.3 1.5 0.8 0.7 0.4 1D% (1.0) 0.0 0.1 (0.2) 3.3 Vol. 000 210.3 1.0 41.6 132.8 9.1 Vol. 000 700.8 346.3 345.0 267.3 210.3 YTD% 68.1 11.2 19.1 (11.3) 46.0 YTD% (1.7) (3.1) (9.7) 19.9 68.1

1D% Vol. 000 (1.9) (1.9) (1.6) (1.4) (1.4) 514.3 1,567.6 3.9

Shell Oman Mar. Co.

2.35 520.00 66.90 54.70 0.51

Agility Public Ware. Co. Kuwait Al Ahli Bank Doha Bank Renaissance Services Qatar Qatar Muscat

170.8 (14.7) 606.7 (6.2)

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 Al Ahli Bank Doha Bank Al Khaliji Barwa Real Estate Co. Gulf Warehousing Co. Qatar Exchange Top Val. Trades Industries Qatar Barwa Real Estate Co. Commercial Bank of Qatar Doha Bank Masraf Al Rayan
Source: Bloomberg (* in QR)

Close* 66.90 54.70 17.22 29.45 40.35 Close* 140.10 29.45 74.50 54.70 27.00

1D% (1.6) (1.4) (1.0) (1.0) (1.0) 1D% (0.2) (1.0) 0.7 (1.4) 0.0

Vol. 000 3.9 170.8 19.0 700.8 22.1 Val. 000 21,269.3 20,770.2 9,857.9 9,380.9 9,352.3

YTD% 27.4 (14.7) 0.3 (1.7) 8.6 YTD% 5.3 (1.7) (11.3) (14.7) (3.1)

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

Close 8,493.70 1,569.50 2,602.97 6,807.71 5,990.54 5,529.21 1,083.37

1D% (0.1) 0.4 0.2 (1.0) 0.8 (0.4) 0.3

WTD% (1.2) (2.2) (0.5) (1.0) 1.9 (1.3) 0.1

MTD% 0.1 1.4 1.6 (4.6) 2.2 0.9 (0.3)

YTD% (3.3) 16.0 8.4 6.1 3.0 (2.9) (5.3)

Exch. Val. Traded ($ mn) 37.18 29.70 24.36 1,434.21 171.19 13.41 1.29

Exchange Mkt. Cap. ($ mn) 128,796.8 49,182.7 78,269.2 363,540.7 105,445.4 19,187.1 19,728.4

P/E** 9.0 14.4 9.1 14.1 32.1 10.6 10.2

P/B** 1.7 0.7 1.0 1.8 1.1 1.5 0.8

Dividend Yield 4.4 4.0 4.7 3.6 3.3 4.5 4.5 Page 1 of 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)

Qatar Market Commentary

The QE index fell 0.1% to close at 8,493.7. The Real Estate and Transportation 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 Doha Bank were the top losers, declining 1.6% and 1.4% respectively. Among the top gainers, Qatar German Co. for Med. Dev. rose 3.3%, while Qatar General Ins. & Reins. Co. increased 1.5%. Volume of shares traded on Thursday declined by 16.3% to 3.5mn from 4.2mn on Wednesday. Further, as compared to the 30-day moving average of 5.8mn, volume for the day was 39.8% lower. Barwa Real Estate Co. and Masraf Al Rayan were the most active stocks, contributing 20.1% and 9.9% to the total volume respectively.
Overall Activity Qatari Non-Qatari Buy %* 60.56% 39.44% Sell %* 45.21% 54.80% Net (QR) 20,791,534.10 (20,791,534.10)

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

Ratings and Global Economic Data

Ratings Updates
Company Qatar Islamic Bank (QIB) Agency Fitch Market Qatar Type* $1.5bn trust certificate issuance program Old Rating New Rating A(EXP)
#

Rating Change

Outlook

Outlook Change

Source: News reports (* LT Long Term, ST Short Term, FSR- Financial Strength Rating, IDR Issuer Default Rating, #- Expected rating assigned)

Global Economic Data

Date 09/27 09/27 09/27 09/27 09/28 09/28 09/28 09/27 09/27 09/27 09/27 09/27 09/28 09/27 09/27 09/28 09/28 09/28 09/28 09/28 09/28 09/27 09/27 09/27 09/27 09/28 09/28 09/29 Market US US US US US US US EU EU EU EU EU EU Germany Germany Germany Germany France France France France UK UK Italy Italy Italy Italy China Source Commerce Department Labor Department Labor Department Bloomberg Commerce Department Commerce Department Univ. of Michigan Eurostat Eurostat Eurostat Eurostat Eurostat Eurostat Destasis Destasis Destasis Destasis Insee Insee Insee Insee ONS ONS Istat Istat Istat Istat HSBC Indicator Personal Consumption Initial Jobless Claims Continuing Claims Bloomberg Consumer Comfort Personal Income Personal Spending U. of Michigan Confidence Business Climate Indicator Euro-Zone Consumer Confidence Euro-Zone Economic Confidence Euro-Zone Indust. Confidence Euro-zone Services Confidence Euro-Zone CPI Estimate (YoY) Import Price Index (MoM) Import Price Index (YoY) Retail Sales (MoM) Retail Sales (YoY) Gross Domestic Product (QoQ) Gross Domestic Product (YoY) Producer Prices (MoM) Producer Prices (YoY) GDP (QoQ) GDP (YoY) Business Confidence Economic Sentiment PPI (MoM) PPI (YoY) HSBC Manufacturing PMI Period 2Q2012 22-September 15- September 23- September August August September September September September September September September August August August August 2Q2012 2Q2012 August August 2Q2012 2Q2012 September September August August September Actual 1.50% 359K 3,271K -39.6 0.10% 0.50% 78.3 -1.34 -25.9 85 -16.1 -12 2.70% 1.30% 3.20% 0.30% -0.80% 0.00% 0.30% 1.20% 2.60% -0.40% -0.50% 88.3 75.5 0.80% 3.00% 47.9 Consensus 1.70% 375K 3,288K 0.20% 0.50% 79 -1.2 -25.9 86.1 -15 -11.1 2.40% 0.80% 2.70% 0.20% -0.90% 0.00% 0.30% 0.60% 2.00% -0.50% -0.50% 87.5 0.30% 2.50% Previous 1.70% 385K 3,275K -40.8 0.10% 0.40% 74.3 -1.18 -24.6 86.1 -15.4 -10.8 2.60% 0.70% 1.20% -1.00% -1.60% 0.00% 0.40% 0.40% 1.30% -0.30% -0.10% 87.3 79 0.20% 2.20% 47.6

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

News
Qatar Qatars economy grows 5% YoY, non-energy sectors fuel GDP growth Qatars economy grew 5% YoY in inflationadjusted terms during the 2Q2012, as strong expansion in nonenergy sectors, including finance and construction as well as investment in the government sector, largely offset the impact of energy sector. GDP growth slowed from the first quarter, when it was 6.9% YoY, in 2Q2012 GDP climbed 2.5% QoQ. Qatars
Page 2 of 6

economy is dominated by energy production, which accounts for roughly half of output. However, that sector grew in real terms by only 0.8% YoY and shrank 0.1% QoQ, because of softer global oil prices. By contrast, the financial services sector grew 12.1% YoY, transport and communications output rose 18%, and the construction sector increased 10%. Qatars General Secretariat for Development Planning (GSDP) expects the country to see a robust growth in its real GDP of 6.2% in 2012. Although hydrocarbon growth will slow, growth outside the sector including downstream processing and petrochemical industries will continue at a fast pace. (Gulf-Times.com) Qatar worries about value of dollar, euro Qatars Prime Minister Sheikh Hamad bin Jassim al-Thani said Qatar a major investor in US and European assets, is worried that haphazard attempts by governments to shore up their economies could weaken the dollar and euro. He said the central banks were right by acting quickly to prevent worse crises, but with more money being printed, the value of money is bound to go down very soon. However, he added that Qatar would retain its holdings in strategic stocks and that it would continue to invest in new promising assets. He said he is optimistic about the longer-term future of the global banking industry, since better regulation and capital-raising would strengthen banks after some years. (Reuters) QNB study: Qatari banks lend QR480bn, public sector drives growth According to a QNB study, Qatari banks have disbursed loans totaling QR480bn in the year up to August, up 18.5% on 2011, reflecting heightened economic activity in Qatar. The public sector, principally government and semi-government agencies, was the main driver of loan growth, consuming QR201.3bn up to August, up 35% compared to the previous year. Loans to the real estate and construction sectors rose 10.2% during the year up to August 2012. The services sector more-than-doubled its outstanding loan amount from QR30.3bn in 2011 to QR74.5bn in August this year. The main borrowers in the sector were air transportation, sea transportation and hotels. Consumption or retail loans declined by 18% during the year up to August 2012. (Gulf-Times.com) Demand for housing units rises 5% According to a report published by NAI-Qatar, a real estate service provider firm, there has been a 5% increase in the demand for housing units in Qatar since August this year. There has been an upward trend for furnished and unfurnished apartments by 5.36% and 2.52% respectively. There has also been a rise in the demand for furnished villas by 4.64% as against a decrease by 0.84% for unfurnished villas. (Gulf-Times.com) Siemens appoints new CEO for Qatar to expand footprint in growth market Siemens, the global player in electronics and electrical engineering operating in the energy, infrastructure, industry and healthcare sectors, announced the appointment of Bernhard Fonseka as new CEO for its rapidly-expanding operations in Qatar. Fonseka will take on his new role at Siemens WLL, the Qatari unit of Siemens AG, from October 1, 2012. (AME Info) Xstrata-Glencore said to resolve takeover offer before deadline Xstrata is set to recommend shareholders vote in favor of a 20.5bn ($33bn) sweetened takeover offer by Glencore International Plc after revising the voting structure and winning assurances it will have a majority of the Board. Glencore earlier this month raised its offer to 3.05 of its shares for each one in Xstrata from 2.8, after investors said the original bid undervalued the Swiss mining company. (Bloomberg) QNB, QFA sign three-year agreement QNB Group has signed an agreement with the Qatar Football Association to

sponsor the key championships for the next three years. The agreement entitles QNB to act as the strategic sponsor for the Qatar National football team and HH Emir Cup, HH the Heir Apparent Cup, and the official sponsor of Sheikh Jassim Cup, and Qatar stars League as well as the exclusive sponsor of Qatar Stars Cup. (Gulf-Times.com) Gulf International Services signals significant changes to ownership of Al Koot Insurance & Reinsurance Gulf International Services, a wholly owned subsidiary of Al Koot Insurance & Reinsurance, has been invited by the Government of Qatar to participate in discussions on reviewing the countrys insurance industry. The discussions may result in significant changes to the ownership and operations of the subsidiary. (QE) Maintenance on the Qatar Exchange website The Qatar Exchange announced that the QE website will be unavailable from 08:00 am to 07:00 pm on 28 October 2012 due to scheduled maintenance work. (QE) Dlala Brokerage & Investment Holding to disclose 3Q2012 results on October 4 Dlala Brokerage & Investment Holding will disclose its 3Q2012 financial statements for the period ending September 30, 2012 on October 4. (QE) International FSA seeks to mend broken LIBOR, proposes new plan The UK Financial Services Authority (FSA) delivered a 10-point plan to overhaul LIBOR, but stopped short of scrapping the benchmark interest rate. The FSAs plan includes oversight by a new panel from 2013. Until now, LIBOR rates have been set daily by the British Bankers Association (BBA) on the basis of estimates submitted by various global banks. (Reuters) Fitch affirms UK at AAA but warns on debt, economy Fitch Ratings has affirmed the UKs AAA sovereign rating, however warned that government debt levels and lackluster growth could threaten the top-notch grade. Fitch cited the UK's diversified economy, robust institutions and political stability for its decision, adding that the country's independent monetary policy framework gives it added flexibility. However, the ratings agency said weaker-than-expected growth and fiscal outturns in 2012 have increased pressure on the UK's AAA rating, which has been on a negative outlook since March 2012. Moreover, Fitch expects the economy to contract by 0.3% in 2012 compared to an expectation of growth of 0.8%, when the UK sovereign rating was last formally reviewed in March 2012. (Bloomberg) Spain to borrow 207.2bn of debt amid rescue pressure Spains Budget Minister Cristobal Montoro said Spain plans to borrow 207.2bn in 2013. He said Spains debt will widen to 90.5% of its GDP in 2013 as the state absorbs the cost of bailing out its banks, the power system and its Eurozone partners Greece, Ireland and Portugal. Moreover, he said the budget deficit will be 7.4% of its economic output and expects to achieve the deficit target of 6.3%. (Bloomberg) Greek coalition partners agree on bulk of cuts The leaders of Greece's three-party coalition have agreed on most of the austerity measures demanded by international creditors in exchange for more loans for the country's bailout package. Talks on the 13.5bn package of spending cuts and revenue measures had been ongoing since early September. The agreement will still have to win approval from both Greece's international creditors and the country's parliament. (WSJ) Fitch cuts 2012 growth forecasts for China, India as risks to global recovery mount Fitch Ratings has cut its 2012 growth forecasts for China to 7.8% from 8% and India to 6% from 6.5%.
Page 3 of 6

Both countries face a deteriorating global growth outlook with diminished capacity to respond by domestic policy loosening, as compared with 2009. Slower exports are weighing on China's growth, but Fitch views the slowdown also reflects the authorities' efforts to squeeze inflation out of the system after the strong credit-led stimulus during 2009-2010. Fitch expects slowing construction activity to knock about 0.8% points off China's growth in 2012. Further, Fitch projects India's general government deficit at 8.5% of GDP in fiscal 2012, leaving little room for fiscal easing. The agency has revised down its expectations in the Eurozone to a 0.5% contraction in 2012 and just 0.3% growth in 2013, while the US growth forecast remains unchanged at 2.2-2.3%. (Bloomberg) Regional US signs agreement with GCC members to explore ways to boost trade, investment with the region The US has signed a framework agreement with Saudi Arabia and other members of the GCC to explore ways to boost trade and investment with the region. The US already has free trade agreements with Oman and Bahrain, and individual trade and investment framework agreements with four other GCC members. (GulfBase.com) OPECs General Secretary: Crude oil market well-supplied OPEC General Secretary Abdalla El-Badri said the global oil market has sufficient supplies and there is no scarcity. He added that OPECs spare production capacity remains at relatively comfortable levels and total commercial stock levels are healthy as well. (Bloomberg) US Export-Import Bank approves $4.98bn loan for Saudi petrochemical site The US Export-Import Bank has approved a $4.98bn direct loan to help build a petrochemical complex in Saudi Arabia, being built by Sadara Chemical Company, a joint venture between Dow Chemical and Saudi Arabian Oil Company. The loan is the biggest in the bank's history which will support nearly 18,000 American jobs across 13 states. Approximately 70 companies including Dow, KBR, ABB Inc and more than 20 small businesses are expected to export US goods and services to the facility in Jubail Industrial City II in eastern Saudi Arabia under the loan. Government export credit agencies in Britain, Germany, France and South Korea are also helping to finance construction of the complex. (Reuters) Saudi Ministry of Housing to start work on 500,000 houses Saudi Arabias Ministry of Housing will start implementing the second phase of King Abdullahs project to construct 500,000 housing units at the cost of SR250bn from December 2012. The second phase will consist of building 150,000 housing units for low-income Saudis in 15 provinces. The ministry plans to begin the last phase after two years. (GulfBase.com) Saudi-India trade surges to SR137bn Saudi Arabia's trade with India has reached SR137bn in the FY2011-2012. Crude oil imports from the Kingdom form a major chunk in India's import trade basket. (GulfBase.com) Marafiq signs desalination plant agreement Saudi Arabias Power & Water Utility Company for Jubail and Yanbu (Marafiq) has signed contracts for two projects in Jubail that include a reverse osmosis desalination plant and building 249 residential units for Marafiq employees in Jabail. (GulfBase.com) Abdullah A M Al-Khodari Sons Co signs SR79.9mn contract with Ministry of Municipal & Rural Affairs Abdullah A. M. Al-Khodari Sons & Company has signed a SR79.9mn contract with the Ministry of Municipal & Rural Affairs to construct an underpass at the intersection of Hizam Road with Taif Alternate Road. (Tadawul)

Zain Saudi extends SR9.75bn loan maturity for second time Zain Saudi has extended the maturity of a SR9.75bn loan by two months for the second time, which was initially due in July. The firm has received an approval from lenders to extend the maturity date for the joint Murabaha by two additional months, changing the maturity date to November 28. Furthermore, the firm said it has paid back part of the loan, SR750mn on August 27 and is in the process of finalizing a long-term finance agreement to replace its current loan. (Reuters) NATPET signs SR974mn Islamic bridging facility agreement Alujain Corporations affiliate, National Petrochemical Industrial Company (NATPET) has signed an Islamic bridging facility agreement worth SR974mn with Banque Saudi Fransi and SAMBA Financial Group. The facilitys proceeds will be used to fully prepay the balance of SR854mn of its existing term loan, and SR120mn will be used for working capital needs and equity investments in downstream projects. (Tadawul) BAHRI unit receives new chemical tanker NCC REEM National Shipping Company of Saudi Arabias (BAHRI) subsidiary, National Chemical Carriers Ltd. (NCC) received a new chemical tanker named NCC REEM with DWT of 45,000 tons from Shinasb of South Korea. This is a part of nine vessels previously contracted by NCC from this yard during 2006-2007 for a total value of approximately SR1,722mn. (Tadawul) UAE non-oil trade grows by 2.3% in 1Q2012 According to Federal Customs Authority (FCA), exports from the UAE were up 38% YoY in 1Q2012 to AED34.3bn. The UAEs imports increased by 6% YoY in 1Q2012, while re-exports reached to AED47.8bn. The non-oil foreign trade rose by 2.3% YoY to AED238.4bn in 1Q2012. (GulfBase.com) Eshraq Properties acquires Nuran Marina Hotel Apartments Eshraq Properties has acquired Nuran Marina, a serviced hotel apartment owned by Emaar Properties. Eshraq Properties said this purchase is part of its strategy to acquire various real estate projects across the country. (Reuters) Emaar Hospitality Group inks contract to operate a resort in Kenya Dubai-based Emaar Hospitality Group has signed a new management contract to operate a resort near Masai Mara safari in Kenya. (GulfBase.com) Abu Dhabi International Airport traffic surges in July Abu Dhabi International Airports passenger traffic increased by 16.7% YoY to 1.35mn passengers in July. Cargo traffic also reflected a similar increase to reach 50,371 tons in July, reflecting a YoY increase of 27.7%. Total arrival and departure transfers also reported a significant increase with 42.6% and 37.1% respectively. (GulfBase.com) ADCB sues Zabeel Investments Abu Dhabi Commercial Bank (ADCB) has filed a legal claim against Dubai's Zabeel Investments. This is a second time in a month a creditor has resorted to the courts to recover debt from a company owned by the crown prince of Dubai. ADCB filed the case on September 19, claiming $107.13mn from Zabeel saying it failed to meet repayment obligations. (Reuters) DREC to manage troubled Zabeel Investments Stateowned property firm, Dubai Real Estate Corp (DREC) has taken over the management of troubled Zabeel Investments. Zabeel's assets will now be managed by DREC, since it owes approximately AED6bn to mostly local banks. (Reuters) Emirates Airline wants 40 more Airbus A380s Emirates Airline President Tim Clark said the company intends to buy another 40 Airbus A380 jets, on top of 90 already on order. Emirates has 23 of these superjumbo jets in service at the end of August. (Reuters)
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 Emirates Steel completes AED7bn Phase 2 expansion Abu Dhabi-based Emirates Steel has completed the AED7bn Phase 2 expansion program, which has increased its output to 3.5mn metric tons per annum, making it one of the biggest integrated steel makers in the region. (GulfBase.com) Petrofac bags $200mn project in Kuwait Petrofac has been awarded a US$200mn engineering, procurement & construction (EPC) project for a new power distribution network in Kuwait. The project was awarded by the Kuwait Oil Company which is expected to be completed within 24 months. (Reuters) Oman plans to boost budget spending by 10% in 2013 The Government of Oman plans to boost its 2013 budget spending by 10% over this year's plan to fund new infrastructure projects. The spending hike will contribute to countrys growth by funding development projects such as airports, ports, roads, hospitals and in the energy sector. The 2013 budget plan would be based on an oil price of $85 per barrel and assume a deficit of about the same size as the shortfall originally projected for 2012. (Reuters) Galfar Engineering & Contracting Co gets OMR22.5mn more for road work Galfar Engineering & Contracting Company has received an additional OMR22.5mn for Hasik and Shuwaimiyah road project in Oman. The road project was originally awarded for around OMR68.5mn, which was estimated on the basis of an aerial survey. However, the overall work and the subsequent costs have substantially increased due to several plan changes. (GulfBase.com) Bahrain launches plan to stimulate its economy Bahraini government has directed all its ministries and government departments to develop a comprehensive plan to set up major development projects. These plans will spur the nations economy and serve government policies in industrial, oil and tourism sectors. Further, the government asked to speed up finalizing the technical and executive aspects of the projects to be implemented as part of the GCC Development Fund. (GulfBase.com) Three Bahraini Islamic banks to merge by 2012-end The Central Bank of Bahrain has confirmed the merger of three Bahraini Islamic lenders, Capivest, Elaf Bank and Capital Management House into a single entity with $400mn asset base and $350mn shareholder equity. (GulfBase.com) Mumtalakat to issue $97.7mn Islamic bond Bahraini sovereign wealth fund Mumtalakat has priced a $97.7mn fiveyear sukuk on September 7 via Standard Chartered and CIMB Islamic banks. The issue date for the sukuk will be October 4, while the maturity date is October 3, 2017. The profit rate on sukuk is 5.5%. (GulfBase.com) Arcapita Bank asks for Shari'ah-compliant bankruptcy finance from the US court Bahrain-based Arcapita Bank has asked US Bankruptcy Court to approve its request for a $150mn debtor-in-possession financing package from Silver Point Finance. (GulfBase.com) GFH Capital limited signs agreement to lead, arrange Leeds City Holdings acquisition GFH Capital limited, a unit of the Bahraini investment firm Gulf Finance House (GFH), will lead and arrange the purchase of Britain's Leeds United Football Club. (Reuters)

Page 5 of 6

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

1.0% 0.5%
122.1

0.8%
0.3%

0.2%

0.4%

0.0%
107.1

(0.5%)
101.2 106.0 98.2

(0.1%) (0.4%)
(1.0%)

(1.0%)
Saudi Arabia

(1.5%)

Kuwait

Bahrain

Abu Dhabi

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 ($) 1,772.10 34.54 113.30 1.29 77.96 1.62 1.06 1.04 79.94 31.18 0.49

1D% (0.3) (0.3) (0.1) (0.4) 0.5 (0.4) (0.3) (0.6) 0.5 0.5 0.2

WTD% (0.1) 0.0 0.8 (0.9) (0.3) (0.4) (0.8) (0.8) 0.8 0.5 (0.2)

YTD% 13.3 24.0 4.3 (0.8) 1.4 4.0 (0.1) 1.7 (0.3) (3.0) (8.0)

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

Close 13,437.13 1,440.67 3,116.23 7,216.15 5,742.07 3,354.82 8,870.16 2,086.17 18,762.74 59,175.86 1,475.70

Oman

1D% (0.4) (0.4) (0.6) (1.0) (0.6) (2.5) (0.9) 1.5 1.0 (1.8) 0.1

WTD% (1.0) (1.3) (2.0) (3.2) (1.9) (5.0) (2.6) 2.9 0.1 (3.5) (3.1)

Dubai
YTD% 10.0 14.6 19.6 22.3 3.0 6.2 4.9 (5.1) 21.4 4.3 6.8

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

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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