The QSE Index declined 1.9% led by declines in the Real Estate and Consumer Goods & Services indices. Top losers were Dlala Brokerage & Invest. Holding Co. and Islamic Holding Group, falling 8.2% and 6.4% respectively. Regional indices also declined, with Saudi Arabia down 4.2% and Dubai down 5.4%. Qatar's real GDP is estimated to have grown 6% in 3Q2014 powered by non-hydrocarbon sectors like construction and trade, while the hydrocarbon sector declined around 3%.

1. Page 1 of 7
QSE Intra-Day Movement
Qatar Commentary
The QSE Index declined 1.9% to close at 12,327.6. Losses were led by the
Real Estate and Consumer Goods & Services indices, falling 4.2% and 2.7%,
respectively. Top losers were Dlala Brokerage & Invest. Holding Co. and Islamic
Holding Group, falling 8.2% and 6.4%, respectively. Among the top gainers,
Qatar General Ins. and Reins. Co. rose 9.1%, while Ahli Bank was up 7.0%.
GCC Commentary
Saudi Arabia: The TASI Index fell 4.2% to close at 8,486.6. Losses were led
by the Insurance and Transport indices, falling 6.9% and 5.8%, respectively.
WAFA Insurance and United Coop. Assurance Co. were down 10.0% each.
Dubai: The DFM Index declined 5.4% to close at 3,725.8. The Financial &
Investment Services and Real Estate & Const. indices fell 7.7% each. Drake &
Scull International and Islamic Arab Insurance Co. were down 10.0% each.
Abu Dhabi: The ADX benchmark index fell 2.2% to close at 4,444.0. The Real
Estate and Energy indices declined 8.0% each. Al Buhaira National Insurance
Co. and Eshraq properties Co. were down 10.0% each.
Kuwait: The KSE Index fell 1.8% to close at 6,510.1. The Financial Services
index declined 3.3%, while the Telecommunication index was down 3.0%. Al-
Qurain Holding Co. fell 14.3%, while Al Safat Real Estate Co. was down 9.8%.
Oman: The MSM Index declined 2.7% to close at 6,216.6. Losses were led by
the Financial and Industrial indices, falling 3.5% and 2.1%, respectively. Al
Sharqia Investment fell 9.8%, while Galfar Engineering & Con was down 5.5%.
Bahrain: The BHB Index fell 0.6% to close at 1,416.0. The Commercial Bank
index declined 1.1%, while the Services index was down 0.7%. Al Salam Bank
– Bahrain fell 9.5%, while National Bank of Bahrain was down 2.9%.
QSE Top Gainers Close* 1D% Vol. ‘000 YTD%
Qatar General Ins. and Reins. Co. 59.90 9.1 3.0 50.1
Ahli Bank 57.90 7.0 3.4 36.9
Aamal Co. 14.59 6.3 2,957.1 (2.7)
QNB Group 211.60 0.8 1,058.7 23.0
Qatar National Cement Co. 132.70 0.2 9.5 11.5
QSE Top Volume Trades Close* 1D% Vol. ‘000 YTD%
Barwa Real Estate Co. 42.00 (5.6) 4,871.3 40.9
Aamal Co. 14.59 6.3 2,957.1 (2.7)
Ezdan Holding Group 15.16 (4.1) 2,511.8 (10.8)
Mazaya Qatar Real Estate Dev. 19.10 (4.7) 2,425.3 70.8
Masraf Al Rayan 44.75 (3.8) 1,526.2 43.0
Market Indicators 30 Dec 14 29 Dec 14 %Chg.
Value Traded (QR mn) 1,050.1 979.2 7.2
Exch. Market Cap. (QR mn) 677,764.0 687,547.7 (1.4)
Volume (mn) 23.4 25.6 (8.7)
Number of Transactions 10,596 10,834 (2.2)
Companies Traded 43 42 2.4
Market Breadth 5:35 13:23 –
Market Indices Close 1D% WTD% YTD% TTM P/E
Total Return 18,386.53 (1.9) (1.0) 24.0 N/A
All Share Index 3,158.25 (1.6) (0.2) 22.1 15.0
Banks 3,215.19 (0.7) (0.7) 31.6 14.9
Industrials 4,083.10 (1.4) 1.6 16.7 14.2
Transportation 2,265.44 (2.0) (0.5) 21.9 13.3
Real Estate 2,269.08 (4.2) (2.5) 16.2 19.8
Insurance 3,958.03 0.6 3.1 69.4 12.1
Telecoms 1,438.03 (2.2) (0.3) (1.1) 19.9
Consumer 6,874.66 (2.7) (0.8) 15.6 27.6
Al Rayan Islamic Index 4,117.23 (2.4) (1.4) 35.6 17.1
GCC Top Gainers##
Exchange Close#
1D% Vol. ‘000 YTD%
Qatar Gen. Ins. & Rein. Qatar 59.90 9.1 3.0 50.1
Ahli Bank Qatar 57.90 7.0 3.4 36.9
Aamal Co. Qatar 14.59 6.3 2,957.1 (2.7)
IFA Hotels & Resorts Kuwait 0.19 5.6 726.7 (33.3)
Al-Qurain Petrochem. Kuwait 0.20 4.1 326.8 (8.1)
GCC Top Losers##
Exchange Close#
1D% Vol. ‘000 YTD%
Drake & Scull Int. Dubai 0.90 (10.0) 21,732.0 (37.5)
Deyaar Development Dubai 0.85 (10.0) 89,122.2 (16.1)
Med. & Gulf Ins. Saudi Arabia 46.30 (9.9) 1,300.6 32.7
Emaar Economic City Saudi Arabia 12.25 (9.7) 11,776.8 (7.9)
Dar Al Arkan Real Est. Saudi Arabia 8.42 (9.7) 74,336.7 (14.5)
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)
QSE Top Losers Close* 1D% Vol. ‘000 YTD%
Dlala Brokerage & Inv. Hold. Co. 43.00 (8.2) 474.5 94.6
Islamic Holding Group 122.00 (6.4) 676.0 165.2
Qatar Oman Investment Co. 15.10 (6.0) 466.8 20.6
National Leasing 20.05 (5.7) 286.0 (33.5)
Barwa Real Estate Co. 42.00 (5.6) 4,871.3 40.9
QSE Top Value Trades Close* 1D% Val. ‘000 YTD%
QNB Group 211.60 0.8 222,647.9 23.0
Barwa Real Estate Co. 42.00 (5.6) 202,613.2 40.9
Islamic Holding Group 122.00 (6.4) 86,662.0 165.2
Gulf International Services 98.90 (4.9) 74,642.5 102.7
Masraf Al Rayan 44.75 (3.8) 68,657.5 43.0
Source: Bloomberg (* in QR)
Regional Indices Close 1D% WTD% MTD% YTD%
Exch. Val. Traded
($ mn)
Exchange Mkt.
Cap. ($ mn)
P/E** P/B**
Dividend
Yield
Qatar* 12,327.62 (1.9) (1.0) (3.4) 18.8 288.36 186,114.0 15.9 2.0 3.8
Dubai 3,725.79 (5.4) (4.1) (13.0) 10.6 289.70 87,048.9 10.9 1.4 5.3
Abu Dhabi 4,444.03 (2.2) (2.0) (4.9) 3.6 98.34 123,228.8 12.0 1.5 3.7
Saudi Arabia 8,486.58 (4.2) (3.0) (1.6) (0.6) 2,538.02 493,961.7 16.1 2.1 3.2
Kuwait 6,510.11 (1.8) (1.0) (3.6) (13.8) 220.75 99,513.3 16.3 1.0 3.9
Oman 6,216.56 (2.7) (3.4) (4.4) (9.0) 19.43 24,354.1#
8.7 1.4 4.6
Bahrain 1,416.00 (0.6) 0.1 (0.9) 13.4 1.39 53,410.2 10.3 0.9 4.8
Source: Bloomberg, Qatar Stock Exchange, Tadawul, MSM, Dubai Financial Market and Zawya (** TTM; * Value traded ($ mn) do not include special trades, if any;
#
Value as of 29 December)
12,200
12,300
12,400
12,500
12,600
9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00

2. Page 2 of 7
Qatar Market Commentary
 The QSE Index declined 1.9% to close at 12,327.6. The Real
Estate and Consumer Goods & Services indices led the losses.
The index fell on the back of selling pressure from non-Qatari
shareholders despite buying support from Qatari shareholders.
 Dlala Brokerage & Investments Holding Co. and Islamic Holding
Group were the top losers, falling 8.2% and 6.4%, respectively.
Among the top gainers, Qatar General Insurance and
Reinsurance Co. rose 9.1%, while Ahli Bank was up 7.0%.
 Volume of shares traded on Tuesday fell by 8.7% to 23.4mn
from 25.6mn on Monday. However, as compared to the 30-day
moving average of 15.8mn, volume for the day was 47.5%
higher. Barwa Real Estate Co. and Aamal Co. were the most
active stocks, contributing 20.9% and 12.7% to the total volume
respectively.
Source: Qatar Stock Exchange (* as a % of traded value)
Earnings and Global Economic Data
Earnings Releases
Company Market Currency
Revenue
(mn) 3Q2014
% Change
YoY
Operating Profit
(mn) 3Q2014
% Change
YoY
Net Profit (mn)
3Q2014
% Change
YoY
Sahara Hospitality Co.
(SHC) *
Oman OMR 12.0 4.9% – – 2.0 7.8%
Source: Company data, DFM, ADX, MSM (*FY2013-14 results)
Global Economic Data
Date Market Source Indicator Period Actual Consensus Previous
12/30 US S&P/Case-Shiller S&P/CS 20 City MoM SA October 0.76% 0.40% 0.24%
12/30 US S&P/Case-Shiller S&P/CS Composite-20 YoY October 4.50% 4.40% 4.82%
12/30 US S&P/Case-Shiller S&P/CaseShiller 20-City Index NSA October 173.4 173.7 173.6
12/30 US S&P/Case-Shiller S&P/Case-Shiller US HPI YoY October 4.64% – 4.82%
12/30 US S&P/Case-Shiller S&P/Case-Shiller US HPI NSA October 167.1 – 167.5
12/30 US Conference Board Consumer Confidence Index December 92.6 93.9 91.0
12/30 EU European Central Bank M3 Money Supply YoY November 3.10% 2.60% 2.50%
12/30 EU European Central Bank M3 3-month average November 2.70% 2.50% 2.30%
12/30 UK Nationwide Building Soc. Nationwide House PX MoM December 0.20% 0.20% 0.30%
12/30 UK Nationwide Building Soc. Nationwide House Px NSA YoY December 7.20% 7.20% 8.50%
12/30 Spain INE Retail Sales YoY November 0.50% – 1.90%
12/30 Spain INE Retail Sales SA YoY November 1.90% 0.80% 1.00%
12/30 Spain INE CPI EU Harmonised YoY December -1.10% -0.70% -0.50%
12/30 Spain INE CPI YoY December -1.10% -0.70% -0.40%
12/30 Spain Bank of Spain Current Account Balance October 0.3B – 0.3B
12/30 Italy ISTAT Business Confidence December 97.5 96.7 96.5
12/30 Italy ISTAT Economic Sentiment December 87.6 – 87.6
12/30 Italy Banca D'Italia 5 Year Bond Allotment 30-December 2.846B – 3.500B
12/30 Italy Banca D'Italia 5 Year Bond Average Yield 30-December 1.0 – 0.9
12/30 Italy Banca D'Italia 5 Year Bond Bid/Cover Ratio 30-December 1.4 – 1.5
12/30 Italy Banca D'Italia 10 Year Bond Allotment 30-December 2.996B – 2.000B
12/30 Italy Banca D'Italia 10 Year Bond Average Yield 30-December 1.89% – 2.08%
12/30 Italy Banca D'Italia 10 Year Bond Bid/Cover Ratio 30-December 1.3 – 1.6
12/30 Italy ISTAT PPI MoM November -0.20% – -0.50%
12/30 Italy ISTAT PPI YoY November -1.60% – -1.50%
Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted)
Overall Activity Buy %* Sell %* Net (QR)
Qatari 58.33% 55.61% 28,675,571.38
Non-Qatari 41.66% 44.40% (28,675,571.38)

3. Page 3 of 7
News
Qatar
 MDPS: Qatar real economic growth estimated at 6% in
3Q2014 – According to the latest data released by the Ministry
of Development Planning & Statistics (MDPS), Qatar’s inflation-
adjusted (real) economy is estimated to have grown 6% YoY in
3Q2014, mainly powered by the non-hydrocarbon segment,
particularly construction and trade. However, the hydrocarbon
sector, witnessed almost a 3% YoY decline in 3Q2014. The
sector saw a 4.3% YoY decline in nominal growth on receding
crude oil production and some maintenance shutdowns in gas
plants. The decline in international price levels of crude oil and
gases in this quarter also led to a sharper decline in nominal
gross value addition of this sector. MDPS, in its recent Qatar
Economic Outlook 2014-16 Update, had forecasted the real
economic growth to be 6.3% for the whole of 2014. While flat
gas production and receding oil output are seen checking the
overall expansion in 2014, the commissioning of production from
the Barzan project in 2015 is set to support higher economic
growth in 2015–2016. The non-hydrocarbon segment witnessed
a robust 12% YoY expansion in 3Q2014, driven by electricity,
construction, trading, and transport & communication sectors.
The report said the 7% jump in the country’s population in
3Q2014 is another factor in contributing such a growth, adding
the sector had grown by 13.9% in nominal terms. The
manufacturing sector reported a 7.3% growth YoY on the back
of higher volumes of production of petrochemicals, fertilizers,
basic iron & steel products and other non-metallic mineral
products. The sector had witnessed a 9% rise in nominal terms.
Major public investments, especially in the infrastructure-related
projects continue to impact the growth in the construction sector,
which registered a robust 18.5% growth in 3Q2014. The trade,
hotel and restaurant sector witnessed a 13.7% growth in
3Q2014, spurred by high trading and hospitality activities seen
during Ramadan, a seasonal phenomenon. The transport &
communications segment grew 10.5% and 12.6% in real and
nominal terms, respectively, in 3Q2014. The finance, insurance,
real estate and business services sector showed a 13.7% and
19.9% growth in real and nominal terms in the review period,
while the government services witnessed 8.7% and 9%
expansion in real and nominal terms. (Gulf-Times.com)
 Al-Sharq: ORDS carries out restructuring to improve
services and performance – Al-Sharq has reported that
Ooredoo (ORDS) is working on restructuring jobs in different
administrative verticals. The restructuring drive aims to improve
the company’s performance and services. Some positions in
some departments have been eliminated as part of the
restructuring process. The restructuring process had started
many years ago and was subject to continuous assessment and
evaluation of employees. Accordingly, some employees were
awarded higher positions while some were moved to other
departments. (Peninsula Qatar)
 C-Ring Road third phase expansion to start on January 1 –
The Public Works Authority (Ashghal) will start working on the
third phase of the C-Ring Road project from January 1, 2015,
which is expected to be completed in two and a half months.
The third phase extends from the middle point between Rawdat
Al Khail and New Slata intersections to the middle point between
Rawdat Al Khail and Al Mansoura intersections. All four phases
of the C-Ring Road project are expected to be completed in
2Q2015. (Peninsula Qatar)
 Qatar Chamber CEO sees ‘positive 2015’ for SMEs – Qatar
Chamber CEO Remy Rowhani has provided an optimistic
forecast for the country’s small and medium-sized enterprises
(SMEs), saying 2015 would be a “positive year” for the private
sector. (Gulf-Times.com)
International
 US consumer confidence rises in December – According to a
private sector report, the consumer confidence in the US
increased in December, bolstered by a brightening jobs situation
that left perceptions about economic conditions at a high last
seen in February 2008. The Conference Board, an industry
group, said its index of consumer attitudes rose to 92.6 from an
upwardly revised 91.0 the month before. According to a Reuters
poll, economists expected a reading of 93.0 for December.
November was originally reported as 88.7. The expectations
index in December was 88.5 versus November's revised 89.3,
and the present situation index rose to 98.6 from a revised 93.7
in November. The present situation index is now at its highest
level since February 2008. The "jobs hard to get" index was 27.7
in December, versus a revised 28.7 in November. (Reuters)
 S&P/Case-Shiller: US home price growth slows further in
October – According to a recent survey, the single-family home
price appreciation in the US slowed less than forecast in
October, as there were hints of some reacceleration in home
prices in some cities by year-end. The S&P/Case Shiller
composite index of 20 metropolitan areas gained 4.5% YoY in
October, as compared to a revised 4.8% YoY increase in
September. On a seasonally adjusted monthly basis, prices in
the 20 cities rose 0.8% MoM. However, non-seasonally adjusted
prices fell 0.1% MoM in the 20 cities; analysts had expected
them to be unchanged. A broader measure of national housing
market activity rose at a 4.6% YoY, compared with a 4.8% rate
in September. The seasonally adjusted 10-city gauge rose 0.7%
in October versus a revised 0.2% gain in September, while the
non-adjusted 10-city index dipped 0.1% for the second straight
month in October. (Reuters)
 US opens door to oil exports after year of pressure – The
Obama administration bowed to months of growing pressure
over a 40-year-old ban on exports of most domestic crude,
taking two steps expected to unleash a wave of ultra-light shale
oil onto global markets. The Bureau of Industry and Security
(BIS), which regulates export controls, said it had granted
permission to "some" companies to sell lightly treated
condensate abroad. Condensate is a form of ultra-light crude.
Some two dozen energy companies had asked the agency for
clarification on permissible exports earlier in 2014, but until
December 30, those requests had been put on indefinite hold.
The BIS also released guidance in the form of FAQs, to explain
what kind of oil was generally allowed under the ban, the first
effort by the administration to clarify an issue that has caused
confusion and consternation in energy markets for more than a
year. The two measures are clearest signs yet that the
administration is ready to allow more of the booming US shale
oil production to be sold overseas, where drillers have said it
can fetch a premium of $10 a barrel or more. (Reuters)
 Nationwide: UK house price inflation slows to 13-month low
– According to a survey from mortgage lender Nationwide,
British house prices rose at their slowest annual rate in more
than a year in December but the market looks set to recover in
2015 if the economy improves as expected. Nationwide said
house prices rose 7.2% YTD, the smallest annual increase since
November 2013 and slowing for the fourth consecutive month.
British housing market activity and price rises have been slowing
since the middle of the year, in part because of steps taken by
regulators to require lenders to make tougher checks on
borrowers' ability to repay mortgages. House price growth in

4. Page 4 of 7
4Q2014 – which many analysts view as the best guide to the
short-term trend in house prices – nevertheless ticked up to
1.0%, from 0.9% in 3Q2014. And although annual house price
inflation fell in 12 out of 13 British regions – with only the north of
England seeing faster growth – Nationwide expects the market
to recover in 2015. (Reuters)
 Japan's ruling coalition approves corporate tax cuts to spur
growth – Japan's ruling coalition has approved a tax reform
plan that will cut corporate taxes from April 2015 and pledges
further reductions in coming years in a bid by Prime Minister
Shinzo Abe to boost profitability and bolster economic growth.
The plan approved by Abe's Liberal Democratic Party (LDP) and
its coalition partner Komeito would cut the overall effective
corporate tax rate by 2.51 percentage points to 32.1% from April
and then to 31.3% in 2016. Abe had pledged in June to lower
the corporate tax rate to below 30% over the coming years to
help pull Japan out of nearly two decades of deflation. Earlier in
2014, Abe eliminated a levy on companies imposed in 2012 to
help fund disaster relief. Takeshi Noda, chairman of the LDP's
tax panel, estimated that the corporate tax cut would amount to
about $3.32bn over the next two fiscal years. Abe hopes the tax
cuts will encourage companies to raise wages, which would spur
consumer spending, and to invest some of the $1.9tn in cash
held by companies outside the financial sector. (Reuters)
 China to relax restrictions on banks' yuan trading, adding
transparency; December factory gauge falls – China will
relax restrictions on banks' yuan trading starting in 2015, in a
small but significant move toward relaxing its capital controls.
The changes will replace daily caps on banks' foreign exchange
positions with weekly limits, and for the first time establish
unified standards for total foreign exchange positions that banks
can hold. The State Administration of Foreign Exchange (SAFE)
published a set of new rules to simplify 14 sets of related
regulations and add new provisions liberalizing banks' forex
trading practices. The yuan has lost 1.3% so far in December
and looks set to close the year down 2.8% in the face of bearish
pressure which is expected to last well into 2015. Meanwhile, a
Chinese factory gauge sank to a seven-month low in December,
holding near a preliminary reading and putting pressure on
policy makers to provide more support to the world’s second-
largest economy. The final reading of the Purchasing Managers’
Index (PMI) from HSBC Holdings Plc and Markit Economics was
49.6 In December from 50 in November, compared with the
December 16 reading of 49.5. The Bloomberg median estimate
was for 49.5. (Reuters, Bloomberg)
Regional
 China to step up FTA talks with GCC members – China and
members of the GCC will speed up free trade agreement (FTA)
talks as Beijing accelerates efforts to sign such agreements.
China and GCC members started free trade talks in 2004, and a
deal will help China cut costs on energy imports from the region.
(GulfBase.com)
 APICORP: Investments in Arab Energy to total $685bn over
next five years – According to a report released by the Arab
Petroleum Investments Corporation (APICORP), energy capital
investments in the Arab world will total $685bn over the next five
years. Set against the backdrop of continuing regional turmoil,
uncertainty in many global and regional economies, and a
declining oil price, APICORP’s latest Arab Energy Investment
Outlook predicted lower investment levels as compared to the
previous year’s report. It stated that the energy sector
investments would have dipped even further had it not been for
an apparent catch-up effect, particularly evident in the power
sector, as well as ever-increasing project costs. APICORP’s
report highlighted the growing divide between the GCC and rest
of the Arab region in terms of their credit ratings, and it
pinpointed three primary constraints on energy investments.
These were: the unrelenting cost of project inflation, the
paradoxical scarcity of fuel and feedstock such as natural gas
and ethane, and the accessibility of funding, which will be
exacerbated if oil prices remain low and below the national
breakeven levels over the long-term. (GulfBase.com)
 SEC signs deal for integrated gas/solar plant – State-owned
utility Saudi Electricity Company (SEC) signed a contract worth
SR1bn to buy generators for the kingdom's first fossil fuel-fired
power plant that will also produce solar energy. The 550-
megawatt integrated solar combined cycle (ISCC) plant will
primarily burn natural gas, but will generate 50 MW of solar
energy to increase fuel efficiency at the planned facility near
Tabuk on the Red Sea coast. As per the source, General
Electric will supply generating units to the plant. ISCC plants
reduce emissions of climate-warming carbon by increasing the
amount of steam available for driving power generation turbines,
without having to burn more gas or oil. SEC said the project,
expected to cost a total of SR2.5bn, would be fully operational
before the end of 2017. (Reuters)
 Reuters: OPEC oil output hits six-month low in December
on Libya – According to a Reuters survey, OPEC's oil supply
fell by 270,000 barrels per day (bpd) in December to a six-month
low as fighting cut Libyan output, offsetting record Iraqi southern
exports and stable Saudi Arabian production. The survey
indicates Libyan turmoil is effectively lowering output by the
OPEC, even after oil ministers decided at a meeting in Vienna
last month against a formal reduction to defend market share.
As per the survey based on shipping data and information from
sources at oil companies, OPEC and consultants, Supply from
OPEC averaged 29.98mn bpd in December, down from a
revised 30.25mn bpd in November. The drop in OPEC output
since September reduces the size of the projected market
surplus in 2015, but if supply remains at December's rate the
group will be pumping close to 2mn bpd more than the demand
for its crude in the first half. OPEC forecasts demand for its
crude will average 28.22 million bpd in the first six months of
2015. (Reuters)
 Saudi coffee market rises sharply to SR15bn – A local Saudi
brand Bonnon Coffee, part-owned by the Sedco Holding Group,
CEO Khalid Bin Hamad, said that coffee sales in Saudi Arabia
will rise by 77% in 2016 thereby overtaking tea sales, pointing
out that the growth in coffee processing has helped boost the
Saudi coffee market to SR15bn. Meanwhile, tea sales are
projected to rise by only 49% amid the stiff competition among
global and local companies. According to the International
Coffee Organization (ICO), 1.4bn cups of coffee are consumed
a day worldwide. Coffee consumption has risen sharply in Saudi
Arabia whereby 18,000 tons worth SR203mn are imported.
(GulfBase.com)
 NCB: KSA financial sector remains expansionary despite oil
shock – According to a report released by the National
Commercial Bank (NCB), Saudi Arabian economy has the
benefit of substantial reserve assets to overcome shocks to the
oil sector. The financial sector in the Kingdom remains
expansionary despite the turbulent oil and equity markets.
Aggregate money demand continues to push growth in supply,
which had annually peaked in October 2014 at 14.7%. Broad
money supply (M3) growth retained its double-digit growth at
13.4% in September 2014. Therefore, the annualized growth
rate of money supply in 3Q2014 concluded levels on par with.
The monetary base expansion peaked in July 2014 at the rate of
16.7%, and moderated in the following consecutive months to

5. Page 5 of 7
11.3%, and 8.5%, in 3Q2014. Demand deposits, which account
for around 56% of the money supply reached SR940.8bn at the
end of September 2014, surging by 13.9% YoY. Referring to
inflation, the report said that consumer prices continued to edge
higher in September 2014 following a demand pull in August
2014. Annualized CPI recorded a 2.8% upturn in August 2014
and September 2014 from 2.6% in July 2014, putting the
average inflation rate for the quarter at around 2.75%. The
shifting cyclicality of Ramadan amplified annualized price
changes for the most important category, food and beverages,
which rose by 2.9% YoY. (GulfBase.com)
 Saudi Ceramic BoD recommends Ceramics Pipe
acquisition, opening of investment portfolio – Saudi Ceramic
Company’s board of directors has recommended the cash
acquisition of the other shareholders’ shares of Ceramics Pipe
Company (closed joint stock company). The company will
prepare a MoU to be presented at the upcoming ordinary
general meeting. Saudi Ceramic currently owns 50% of
Ceramics Pipe. Ceramic Pipe capital amounts to SR193mn,
divided into 19.3mn shares. The finical effect will be determined
after preparation of the MoU. The purpose of this acquisition is
to merge the activities of both these companies as well as to
increase operational efficiency. Meanwhile, Saudi Ceramic will
open an investment portfolio (internally funded) for participating
in initial public offerings in the Saudi Arabian stock market to
generate additional sources of income in line with CMA’s
regulations. The party to manage this portfolio will be selected
later. (Tadawul)
 Saudi Ceramic BoD recommends SR100mn dividend for
FY2014, SR125mn capital increase – Saudi Ceramic’s board
of directors has also recommended the distribution of 20% cash
dividend (SR2 per share) amounting to SR100mn for FY2014.
The cash dividends will include the issued bonus shares as well.
Shareholders registered at of the end of trading on the general
assembly meeting day, which will be announced in due course
after obtaining the necessary approvals from the official bodies,
will be eligible for dividends. Meanwhile, the company’s board of
directors has recommended the increase of capital from
SR375mn to SR500mn being 33% increase by issuing 12.5mn
shares with value of SR125mn and number of shares will
increase from 37.5mn shares to 50mn shares. The increase will
be funded from retained earnings after the approval of the
extraordinary general assembly and the official bodies. This will
be done through issuing one bonus share for every three
existing shares owned by the shareholders and registered at the
end of trading day on the date of the extraordinary general
assembly. Each shareholder will receive whole number of
shares the fractions will be combined and sold according to
market price and the return will be distributed to all shareholders
pro rata, the sale will be performed within 30 days of the date of
distribution. This capital increase is in line with the growth of
Saudi Ceramic as well as to complement its expansion and to
ensure the strength of the company’s financial position.
(Tadawul)
 Sipchem announces initial start-up of EVA film plant – Saudi
International Petrochemical Company (Sipchem) has
commenced the initial start-up of the ethylene-vinyl acetate
(EVA) film plant of the Saudi Specialized Products Company
(SSPC). Sipchem Chemicals Company, an affiliate of Sipchem
owns 75% of SSPC, while Hanwha Chemical Corporation Korea
owns 25%. The initial start-up will continue until the completion
of testing and will ensure the efficiency of the plant equipment.
The total estimated cost of the project is SR150mn, with an
annual production capacity of 4,000 metric tons. The EVA film
plant for manufacture of solar panels is located in the industrial
zone of Hail. (Tadawul)
 Riyad Bank recommends SR0.35 per share dividend for
2H2014 – Riyad Bank has recommended a dividend of SR0.35
per share for 2H2014. (Reuters)
 Ajman approves AED1.61bn budget – His Highness Shaikh
Humaid bin Rashid Al Nuaimi, Member of Supreme Council and
Ruler of Ajman, has approved the general budget of the Ajman
government for the fiscal year 2015, with a total expenditure of
about AED1.61bn and estimated revenues reaching
AED1.61bn. Shaikh Humaid issued Emiri Decree No. 14 of 2014
which takes effect on January 1, 2015. The 2015 budget is
23.44% larger than the 2014 budget, explaining that the growth
in expenses was a result of the government’s interest in the
emirate’s developmental projects. He said that the increase in
revenues is a result of opening new channels for investments in
the emirate. The budget includes 33% for the economic affairs
sector, 32% for housing and community facilities, 22% for the
public services sector, and 13% for the system and public safety
affairs sector. (GulfBase.com)
 IIF: UAE $700bn spending on track – The Institute of
International Finance (IIF) said that the relatively low fiscal and
external current account breakeven price of oil and ample
foreign assets will enable the UAE to press ahead with an
estimated $700bn worth of infrastructure projects, which are
expected to come on stream over the next 15 years, spurring
credit growth in the banking sector. The UAE’s nominal GDP is
poised to touch $435bn in 2016, up from $417bn in 2014 and
$405bn in 2015 under a predicted baseline oil price scenario of
$78 and $85 per barrel respectively in 2015 and 2016. With the
economic growth set to hover between 4.8% and 5.1% in the
next two years, the UAE will post a current account balance of
$29.9bn and $30.2bn respectively in 2015 and 2016, accounting
for 7.4% and 6.9% of the GDP. IIF Deputy Director, Dr Garbis
Iradian said that the Emirates will record a fiscal balance of
1.8% and 2.8% of the GDP respectively in 2015 and 2016. The
coming years will also see the country’s public foreign assets
swell from $573bn in 2014 to $615bn in 2015 and $652bn in
2016. The government debt will increase to 22.1% and 23.3% of
the GDP respectively in 2015 and 2016. (GulfBase.com)
 DEWA signs MoU with TECOM Investments – Dubai
Electricity and Water Authority (DEWA) has signed a MoU with
TECOM Investments to enhance cooperation and invest in their
partnership to support developmental initiatives and projects,
particularly DEWA’s Smart initiatives. These include electric
vehicle charging infrastructure and smart applications through
smart meters and grids. Under the terms of the MoU, the two
sides will promote joint work and exchange of knowledge,
expertise, experiences, and best practices in various disciplines
related to common areas of work, in addition to conducting joint
research and consultations on projects that support the
sustainable development of Dubai. (GulfBase.com)
 ENOC reduces domestic diesel prices – Emirates National Oil
Company (ENOC) has further reduced domestic diesel prices in
line with the international decrease in crude oil prices, passing
on benefits to customers in the shortest time possible. ENOC
reduced diesel prices by an additional 20 fils to AED3.10 per
liter, effective as of December 30, 2014. The revised price is
applicable across the entire service station network of ENOC
and EPPCO. (GulfBase.com)
 DIA: Russia turmoil slows passenger traffic growth – Dubai
International Airport (DIA) has witnessed slower movement in
passenger traffic in November 2014 because of the geopolitical
and economic instability hitting Russia. Passenger traffic related

6. Page 6 of 7
to Russia and other countries in the Commonwealth of
Independent States plunged 18.2% YoY in November 2014.
This cut growth in total passenger traffic through DIA, which
rose 4.3% to 5.57mn people in November 2014, slowing from
5.7% growth in October 2014. In the first 11 months of this year,
passenger traffic climbed 5.9% to 63.98mn people. The growth
was interrupted earlier this year by an 80-day runway
refurbishment project that temporarily cut the airport's capacity.
Cargo volume through DIA dropped 8% from a year earlier in
November 2014 to 205,375 tons, while cargo handled in the first
11 months shrank 2.7% to 2.16mn tons because of the shift of
dedicated freighter services to Dubai's other main airport, Al
Maktoum International, in May 2014. (Bloomberg)
 NBK: Kuwait inflation down 3% in October 2014 – According
to a report released by the National Bank of Kuwait (NBK),
Kuwait’s inflation in the consumer price index (CPI) eased
slightly to 3% YoY in October 2014, as inflation in most
components slowed. Core inflation eased slightly from 3.3%
YoY in September 2014 to 3.1% YoY in October 2014, as
housing inflation remained unchanged and inflation in other
major components decelerated. As per the report, food inflation
witnessed a marginal slowdown in October 2014 and is
projected to continue easing in the coming months in line with
lower international food inflation. A stronger Kuwaiti dinar is also
expected to help keep domestic inflation under control.
Inflationary pressures appear modest and headline inflation is
seen ending 2014 at an annual average of 3.0%. Inflation in the
food price index eased slightly in October 2014, from 2.7% YoY
in September 2014 to 2.6% YoY. The data also showed that the
inflation in housing services remained unchanged at 4.4% YoY
in October 2014. (GulfBase.com)
 GCC–Stat: Oman’s inflation lowest in GCC states –
According to a report released by the Statistical Centre for the
Cooperation Council for the Arab Countries of the Gulf (GCC–
Stat), Oman registered the lowest inflation rate of 1.02% among
GCC countries in October 2014. Inflation rates across the GCC
region ranged between 1.02% and 3.11% in October 2014, as
compared to the same period in 2013. As per the report, the
UAE recorded the highest inflation rate among GCC states,
registering an increase of 3.11%, followed by 3% in both Kuwait
and Qatar, 2.6% in Saudi Arabia and 2.5% in Bahrain. The
October 2014 inflation rates showed a slight increase of 0.2% in
Saudi Arabia, 0.11 % in the UAE, 0.1% on a MoM basis in both
Oman and Qatar, while prices in Bahrain and Kuwait remained
stable. Meanwhile, Qatar was the only GCC country where
prices for food and beverages decreased in October 2014 by
0.6% YoY. (GulfBase.com)
 GBCM acquires Oman-based brokerage business of Bank
Muscat – Gulf Baader Capital Markets (GBCM), a subsidiary of
Gulf Investment Services Holding Company, has acquired the
Oman-based brokerage business of Bank Muscat, which
provides brokerage services for securities traded on the Muscat
Securities Market (MSM) and other GCC markets on mutually
agreeable terms. This acquisition is line with GBCM’s strategy to
further reinforce its dominant position in the institutional and
corporate brokerage business and strengthen its position in the
retail brokerage business. The company has received the
necessary approval from the Capital Market Authority (CMA) for
this acquisition and the process of opening of brokerage
accounts of erstwhile customers of Bank Muscat is expected to
be completed in 1Q2015. Meanwhile, for Bank Muscat the
divestment is line with its ongoing review of strategic alternatives
and operational priorities, and has no material impact on the
bank’s other existing operations. Bank Muscat brokerage will
cease to operate from February 10, 2015. (MSM)
 Port Services BoD approves disposal of some assets – Port
Services Corporation’s board of directors has approved the
disposal of some of its assets, which include cargo handling
equipments and marine tug boats that were rendered surplus to
operation’s requirements consequent to the shifting of major
vessel and cargo operations out of Port Sultan Qaboos. The
disposed equipments and tug boats will be sold through a public
auction on December 31, 2014. (MSM)

7. Contacts
Saugata Sarkar Abdullah Amin, CFA Shahan Keushgerian
Head of Research Senior Research Analyst Senior Research Analyst
Tel: (+974) 4476 6534 Tel: (+974) 4476 6569 Tel: (+974) 4476 6509
saugata.sarkar@qnbfs.com.qa abdullah.amin@qnbfs.com.qa shahan.keushgerian@qnbfs.com.qa
Sahbi Kasraoui Ahmed Al-Khoudary QNB Financial Services SPC
Manager – HNWI Head of Sales Trading – Institutional Contact Center: (+974) 4476 6666
Tel: (+974) 4476 6544 Tel: (+974) 4476 6548 PO Box 24025
sahbi.alkasraoui@qnbfs.com.qa ahmed.alkhoudary@qnbfs.com.qa Doha, Qatar
Disclaimer and Copyright Notice: This publication has been prepared by QNB Financial Services SPC (“QNBFS”) a wholly-owned subsidiary of QNB SAQ (“QNB”). QNBFS is regulated by the
Qatar Financial Markets Authority and the Qatar Exchange QNB SAQ 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. QNBFS accepts no liability
whatsoever for any direct or indirect losses arising from use of this report. Any investment decision should depend on the individual circumstances of the investor and be based on specifically
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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. QNBFS does not make
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Page 7 of 7
Rebased Performance Daily Index Performance
Source: Bloomberg Source: Bloomberg
Source: Bloomberg Source: Bloomberg (*$ adjusted returns)
80.0
100.0
120.0
140.0
160.0
180.0
200.0
220.0
Nov-10 Nov-11 Nov-12 Nov-13 Nov-14
QSE Index S&P Pan Arab S&P GCC
(4.2%)
(1.9%) (1.8%)
(0.6%)
(2.7%)
(2.2%)
(5.4%)
(7.0%)
(5.6%)
(4.2%)
(2.8%)
(1.4%)
0.0%
SaudiArabia
Qatar
Kuwait
Bahrain
Oman
AbuDhabi
Dubai
Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D%* WTD%* YTD%*
Gold/Ounce 1,200.55 1.5 0.4 (0.4) MSCI World Index 1,721.01 (0.6) (0.5) 3.6
Silver/Ounce 16.31 3.1 1.5 (16.2) DJ Industrial 17,983.07 (0.3) (0.4) 8.5
Crude Oil (Brent)/Barrel (FM
Future)
57.90 0.0 (2.6) (47.7) S&P 500 2,080.35 (0.5) (0.4) 12.6
Crude Oil (WTI)/Barrel (FM
Future)
54.12 1.0 (1.1) (45.0) NASDAQ 100 4,777.44 (0.6) (0.6) 14.4
Natural Gas (Henry
Hub)/MMBtu
3.12 3.6 13.2 (28.2) STOXX 600 341.02 (1.1) (1.1) (8.4)
LPG Propane (Arab Gulf)/Ton 50.25 (2.4) (5.2) (60.3) DAX 9,805.55 (1.3) (1.3) (9.6)
LPG Butane (Arab Gulf)/Ton 64.50 (1.5) (4.8) (52.5) FTSE 100 6,547.00 (1.1) (0.9) (8.9)
Euro 1.22 0.0 (0.2) (11.5) CAC 40 4,245.54 (1.8) (1.4) (12.9)
Yen 119.48 (1.0) (0.7) 13.5 Nikkei 17,450.77 (0.6) (1.3) (5.8)
GBP 1.56 0.3 0.0 (6.0) MSCI EM 954.58 (0.4) 0.2 (4.8)
CHF 1.01 0.1 (0.1) (9.7) SHANGHAI SE Composite 3,165.81 0.3 0.7 46.0
AUD 0.82 0.6 0.8 (8.2) HANG SENG 23,501.10 (1.1) 0.7 0.8
USD Index 89.99 (0.2) (0.0) 12.4 BSE SENSEX 27,403.54 0.7 1.2 26.5
RUB 56.38 (3.6) 5.4 71.5 Bovespa 50,007.41 0.9 0.9 (13.4)
BRL 0.38 2.1 0.8 (10.7) RTS 790.71 (0.6) (4.6) (45.2)
177.1
133.3
``
121.9