MENA-1 MONDAY MORNING ROUND-UP

UAE
NBAD advises Kuwait on Failaka Island Central bank to review retail lending rules

Kuwait Qatar

Kuwaits Securities Group will pay dividends this year, says Chairman Al Mousa

IBQ sells Islamic operations to Barwa Bank Tasweeq sells first cargo of GTL naphtha from Pearl GTL

Bahrain

Bahrains CPI fell 1.3% Y-o-Y in July 2011

Agenda
Qatar Wed 24 August >> The National Leasing Holding Company BOD meeting

UAE News
NBAD advises Kuwait on Failaka Island Kuwait signed a USD7.7 million agreement with a group led by National Bank of Abu Dhabi (NBAD) [NBAD.AD] to conduct technical and feasibility studies over 27 months for the development of Failaka Island, Kuwait News Agency (KUNA) reported on 18 August 2011. (Bloomberg) National Bank of Abu Dhabi: AED11.00, Rating: Neutral, FV: AED13.00, MCap: USD8,602 million, NBAD UH / NBAD.AD Central bank to review retail lending rules The Central Bank of the UAE plans to review its retail lending rules at the beginning of 2012, the National reported, citing Saleh al-Tenaiji from the central banks supervision department. The central bank is currently receiving feedback from banks and customers. We will collect all of this information until it gets (to) such a time to study it and submit it to the board of directors to see if we need to amend the regulations, al-Tenaiji said. (Reuters)

Kuwait News
Kuwaits Securities Group will pay dividends this year, says Chairman Al Mousa Ali Al Mousa, Chairman of Kuwaits Securities Group Company (SGC) [SGCK.KW], said that the company will distribute dividends whether or not the company achieves profitability during the year. (Zawya Dow Jones)

Qatar News
IBQ sells Islamic operations to Barwa Bank International Bank of Qatar (IBQ) announced that it has sold its retail Islamic banking operations to Barwa Bank, Reuters reported. This transaction marks the first sale of an Islamic portfolio since Qatars decision to ban conventional banks from offering Islamic banking services. The sale includes IBQs Al Yusr retail loans and deposit account portfolios, the two Al Yusr branches, including ATMs, as well as the transfer of Al Yusr employees to Barwa Bank, IBQ said in a statement. The private and corporate banking portfolios are not part of the sale. IBQ is 30% owned by the National Bank of Kuwait (NBK) [NBKK.KW], while Barwa Bank is a subsidiary of Barwa Real Estate Company (BRES.QA). (Reuters, Trade Arabia)

National Bank of Kuwait: KWD1.00, Rating: Neutral, FV: KWD1.24, MCap: USD12,114 million, NBK KK / NBKK.KW Tasweeq sells first cargo of GTL naphtha from Pearl GTL Qatar International Petroleum Marketing Company (Tasweeq) announced that it has sold on 21 August 2011 its first cargo of GTL naphtha from Pearl GTL, the worlds largest gas-to-liquids (GTL) plant located in Qatar, The Peninsula Qatar reported. Qatar has appointed its state-owned marketing company, Tasweeq, to be the sole marketer of GTL naphtha. (The Peninsula Qatar)

Bahrain News
Bahrains CPI fell 1.3% Y-o-Y in July 2011 Consumer prices in Bahrain fell 1.3% Y-o-Y and increased 0.6% M-o-M in July 2011. Housing costs remained flat, while food prices rose 2.3% M-o-M. We expect an average annual deflation of 1.5% in 2011. (Reuters, Monica Malik)
[Note EFG Hermes is not responsible for the accuracy of news items taken from other media.] _________________________________________________________________________________________________________________ Our investment recommendations take into account both risk and expected return. We base our fair value estimate on a fundamental analysis of the companys future prospects, after having taken perceived risk into consideration. We have conducted extensive research to arrive at our investment recommendations and fair value estimates for the company or companies mentioned in this report. Although the information in this report has been obtained from sources that EFG Hermes believes to be reliable, we do not guarantee its accuracy, and such information may be condensed or incomplete. Readers should understand that financial projections, fair value estimates and statements regarding future prospects may not be realized. All opinions and estimates included in this report constitute our judgment as of this date and are subject to change without notice. This research report is prepared for general circulation and is intended for general information purposes only. It is not intended as an offer or solicitation with respect to the purchase or sale of any security. It is not tailored to the specific investment objectives, financial situation or needs of any specific person that may receive this report. We strongly advise potential investors to seek financial guidance when determining whether an investment is appropriate to their needs. No part of this document may be reproduced without the written permission of EFG Hermes.