Qa

1. Page 1 of 7
QSE Intra-Day Movement
Qatar Commentary
The QSE Index gained 0.6% to close at 12,121.1. Gains were led by the
Insurance and Banks & Financial Services indices, rising 1.0% and 0.7%,
respectively. Top gainers were Gulf Warehousing Co. and Doha Insurance Co.,
rising 2.2% and 1.9%, respectively. Among the top losers, Medicare Group fell
2.3%, while Widam Food Co. was down 2.1%.
GCC Commentary
Saudi Arabia: The TASI Index rose 0.4% to close at 9,136.3. Gains were led
by the Banks & Financial Services and Retail indices, rising 1.3% and 0.4%,
respectively. ANB Ins. rose 4.3%, while Banque Saudi Fransi was up 3.2%.
Dubai: The DFM Index declined 0.1% to close at 4,088.8. The
Telecommunication and Financial & Investment Services indices fell 0.7%
each. Amlak Finance declined 5.0%, while Ajman Bank was down 3.0%.
Abu Dhabi: The ADX benchmark index rose 0.6% to close at 4,726.7. The
Telecommunication index gained 1.5%, while the Energy index rose 1.4%.
Fujairah Building Ind. surged 14.7%, while National Takaful Co. was up 11.0%.
Kuwait: The KSE Index fell 0.1% to close at 6,181.9. The Basic material index
declined 1.6%, while the Technology index fell 1.2%. Securities Group Co. and
Gulf Glass Manufacturing Co. were down 8.3% each.
Oman: The MSM Index rose 0.2% to close at 6,444.0. Gains were led by the
Financial and Services indices, rising 0.5% and 0.1%, respectively. Al Sharqia
Invest. Holding rose 5.0%, while Al Batinah Dev. Inv. Holding was up 4.2%.
Bahrain: The BHB Index declined 0.3% to close at 1,350.4. The Hotel &
Tourism index fell 1.0%, while the Investment index declined 0.8%. National
Hotels Co. fell 6.7%, while Al Baraka Banking Group was down 5.5%.
QSE Top Gainers Close* 1D% Vol. ‘000 YTD%
Gulf Warehousing Co. 75.50 2.2 1.0 33.9
Doha Insurance Co. 26.50 1.9 0.1 (8.6)
Qatar Insurance Co. 97.00 1.1 51.9 23.1
QNB Group 191.00 1.1 274.8 (10.3)
National Leasing 20.99 0.9 18.7 4.9
QSE Top Volume Trades Close* 1D% Vol. ‘000 YTD%
Barwa Real Estate Co. 52.40 0.6 796.8 25.1
Salam International Investment Co. 13.99 (0.6) 655.1 (11.7)
Masraf Al Rayan 45.90 0.5 517.7 3.8
Ezdan Holding Group 17.80 0.6 454.4 19.3
Vodafone Qatar 16.46 0.2 292.8 0.1
Market Indicators 2 July 15 1 July 15 %Chg.
Value Traded (QR mn) 224.6 206.2 8.9
Exch. Market Cap. (QR mn) 645,392.5 641,643.9 0.6
Volume (mn) 4.5 4.9 (7.5)
Number of Transactions 2,475 2,954 (16.2)
Companies Traded 39 41 (4.9)
Market Breadth 25:12 18:18 –
Market Indices Close 1D% WTD% YTD% TTM P/E
Total Return 18,840.48 0.6 (0.1) 2.8 N/A
All Share Index 3,240.70 0.5 0.1 2.8 13.7
Banks 3,186.32 0.7 0.9 (0.6) 14.4
Industrials 3,957.81 0.6 0.7 (2.0) 14.0
Transportation 2,448.82 (0.7) (0.6) 5.6 13.5
Real Estate 2,754.80 0.6 (2.4) 22.7 9.7
Insurance 4,747.04 1.0 0.1 19.9 21.9
Telecoms 1,163.19 0.6 (0.1) (21.7) 23.4
Consumer 7,382.17 (0.5) (0.4) 6.9 28.7
Al Rayan Islamic Index 4,702.01 0.3 (0.7) 14.6 14.3
GCC Top Gainers##
Exchange Close#
1D% Vol. ‘000 YTD%
Drake & Scull Int. Dubai 0.81 11.5 69,551.1 (9.8)
Dana Gas Abu Dhabi 0.51 4.1 69,127.8 2.0
Banque Saudi Fransi Saudi Arabia 33.84 3.2 779.3 8.0
Commercial Facilities Kuwait 0.21 3.0 2.0 (25.1)
Kuwait Food Co. Kuwait 2.78 3.0 117.5 (0.7)
GCC Top Losers##
Exchange Close#
1D% Vol. ‘000 YTD%
Albaraka Banking Bahrain 0.69 (5.5) 56.0 (12.6)
Abu Dhabi Nat. Energy Abu Dhabi 0.70 (5.4) 590.2 (12.5)
Gulf Cable & Elec. Ind. Kuwait 0.56 (5.1) 194.4 (18.8)
Boubyan Petrochem. Kuwait 0.59 (4.8) 217.4 (9.2)
Ajman Bank Dubai 1.94 (3.0) 188.1 (27.2)
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)
QSE Top Losers Close* 1D% Vol. ‘000 YTD%
Medicare Group 185.60 (2.3) 5.9 58.6
Widam Food Co. 62.00 (2.1) 15.1 2.6
Qatar German Co for Med. Dev. 16.36 (1.5) 65.8 61.2
Dlala Brokerage & Inv Holding Co. 27.10 (1.3) 2.8 (19.0)
Qatar Navigation 97.80 (1.1) 10.6 (1.7)
QSE Top Value Trades Close* 1D% Val. ‘000 YTD%
QNB Group 191.00 1.1 52,264.8 (10.3)
Barwa Real Estate Co. 52.40 0.6 41,843.1 25.1
Masraf Al Rayan 45.90 0.5 23,635.9 3.8
Industries Qatar 142.70 0.8 13,662.6 (15.1)
Salam International Investment Co 13.99 (0.6) 9,131.8 (11.7)
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* 12,121.08 0.6 (0.1) (0.7) (1.3) 82.19 177,224.8 12.8 1.9 4.2
Dubai 4,088.82 (0.1) (1.4) 0.0 8.3 204.66 104,630.3 13.1 1.5 5.3
Abu Dhabi 4,726.72 0.6 (0.7) 0.1 4.4 43.99 128,838.1 11.9 1.5 4.7
Saudi Arabia 9,136.34 0.4 (2.5) 0.5 9.6 1,521.30 540,675.0 19.2 2.2 2.9
Kuwait 6,181.89 (0.1) (0.5) (0.3) (5.4) 32.45 96,495.0 15.9 1.0 4.2
Oman 6,443.96 0.2 0.0 0.3 1.6 15.40 25,331.8 9.7 1.5 4.0
Bahrain 1,350.38 (0.3) (1.3) (1.3) (5.3) 1.14 21,119.8 8.7 0.9 5.2
Source: Bloomberg, Qatar Stock Exchange, Tadawul, Muscat Securities Exchange, Dubai Financial Market and Zawya (** TTM; * Value traded ($ mn) do not include special trades, if any)
12,040
12,060
12,080
12,100
12,120
12,140
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 gained 0.6% to close at 12,121.1. The Insurance
and Banks & Financial Services indices led the gains. The index
rose on the back of buying support from Qatari and GCC
shareholders despite selling pressure from non-Qatari
shareholders.
 Gulf Warehousing Co. and Doha Insurance Co. were the top
gainers, rising 2.2% and 1.9%, respectively. Among the top
losers, Medicare Group fell 2.3%, while Widam Food Co. was
down 2.1%.
 Volume of shares traded on Thursday fell by 7.5% to 4.5mn from
4.9mn on Wednesday. Further, as compared to the 30-day
moving average of 11.7mn, volume for the day was 61.3% lower.
Barwa Real Estate Co. and Salam International Investment Co.
were the most active stocks, contributing 17.6% and 14.5% to
the total volume, respectively.
Source: Qatar Stock Exchange (* as a % of traded value)
Ratings, Earnings and Global Economic Data
Ratings Updates
Company Agency Market Type* Old Rating New Rating Rating Change Outlook Outlook Change
Union National
Bank (UNB)
Capital
Intelligence
Abu
Dhabi
FSR/LT FCR/ST
FCR/SR
A+/A+/A1/1 A+/A+/A1/1 – Stable –
National Bank of
Abu Dhabi
(NBAD)
S&P
Abu
Dhabi
LT CCR/ST CCR 'AA-/A-1+ 'AA-/A-1+ – Stable –
Source: News reports (* LT – Long Term, ST – Short Term, FSR- Financial Strength Rating, FCR – Foreign Currency Rating, LCR – Local Currency Rating, IDR – Issuer Default Rating, SR – Support Rating, LC
– Local Currency, CCR – Counterparty Credit Rating)
Earnings Releases
Company Market Currency
Revenue
(mn) 2Q2015
% Change
YoY
Operating Profit
(mn) 2Q2015
% Change
YoY
Net Profit (mn)
2Q2015
% Change
YoY
Yanbu Cement Co. (YCC) Saudi SR – – 250.0 9.2% 246.0 2.1%
Source: Company data, DFM, ADX, MSM
Global Economic Data
Date Market Source Indicator Period Actual Consensus Previous
07/02 US Bureau of Labor Stat. Average Hourly Earnings YoY June 2.00% 2.30% 2.30%
07/02 US Bureau of Labor Stat. Underemployment Rate June 10.50% 10.70% 10.80%
07/02 US Department of Labor Initial Jobless Claims 27-June 281K 270K 271K
07/02 US Department of Labor Continuing Claims 20-June 2264K 2236K 2249K
07/02 US Bloomberg Bloomberg Consumer Comfort 28-June 44.0 – 42.6
07/02 US National Ass. of Purcha ISM New York June 63.1 – 54.0
07/02 US Census Bureau Factory Orders May -1.00% -0.50% -0.70%
07/02 EU Eurostat PPI MoM May 0.00% 0.10% -0.10%
07/02 EU Eurostat PPI YoY May -2.00% -2.00% -2.10%
07/03 EU Eurostat Retail Sales YoY May 2.40% 2.30% 2.70%
07/03 UK Markit Markit/CIPS UK Services PMI June 58.5 57.5 56.5
07/03 UK Markit Markit/CIPS UK Composite PMI June 57.4 56.7 55.8
07/02 UK Nationwide Buil. Society Nationwide House Px NSA YoY June 3.30% 4.50% 4.60%
07/03 Spain Markit Markit Spain Services PMI June 56.1 58.4 58.4
07/03 Spain Markit Markit Spain Composite PMI June 55.8 57.8 58.3
07/03 Italy Markit Markit/ADACI Italy Services PMI June 53.4 52.3 52.5
07/03 Italy Markit Markit/ADACI Italy Composite PMI June 54.0 53.3 53.7
07/03 China Markit HSBC China Composite PMI June 50.6 – 51.2
07/03 China Markit HSBC China Services PMI June 51.8 – 53.5
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 44.88% 37.83% 15,848,273.06
GCC 5.12% 3.58% 3,472,808.12
Non-Qatari 50.00% 58.60% (19,321,081.18)

3. Page 3 of 7
News
Qatar
 DHBK issues Tier 1 capital instruments amounting to
QR2bn – Doha Bank (DHBK) has issued Tier 1 capital
instruments amounting to QR2bn on June 30, 2015, as per
terms of the issuance set by Qatar Central Bank. The decision
followed DHBK’s extraordinary general meeting on March 4,
2015. (QSE)
 QGRI to disclose financials on July 26 – Qatar General
Insurance and Reinsurance Company (QGRI) will announce the
financial reports for the period ending June 30, 2015 on July 26,
2015. (QSE)
 QNNS’ Qatar Shipping acquires 100% control in two LNG
carriers – Qatar Shipping Company, a wholly-owned subsidiary
of Milaha (QNNS), has acquired the remaining 60% interest in
each of the two entities that own the Liquefied Natural Gas
(LNG) carriers, Milaha Ras Laffan and Milaha Qatar, from
Societe Generale, thereby increasing its stake in those entities
from 40% to a controlling 100%. Milaha Ras Laffan was built in
2004 with a capacity of 138,273 cubic meters (cbm), while
Milaha Qatar was built in 2006 with a capacity of 145,602 cbm.
The vessels are chartered to RasGas under a 25 year long-term
fixed time charter agreement. Milaha Ras Laffan and Milaha
Qatar have approximately 14 years and 16 years remaining,
respectively, under the time charter agreement. (QSE)
 DHBK: Qatar’s 2015 GDP per capita expected to be above
$81,000, highest among GCC countries – Doha Bank (DHBK)
CEO Dr. R Seetharaman said Qatar’s GDP per-capita in 2015 is
expected to be above $81,000, the highest among the GCC
countries. Speaking at a knowledge sharing session in
Ahmedabad, India, Seetharaman said Qatar’s economy is
expected to grow by more than 7% in 2015. The construction
sector is expected to witness a double-digit growth in 2015,
thereby supporting the non-hydrocarbon sector diversification.
On major opportunities in Qatar, he said bidding is expected to
be carried out on projects worth more than $31bn in 2015. The
major sectors, which are expected to witness activity, include
the construction and transport sectors. Qatar’s recent interim
budget has earmarked $18bn for major projects in health,
education, infrastructure and transportation as well as projects
related to the 2022 FIFA World Cup. (Gulf-Times.com)
 MDPS: Qatar real GDP grows by 4.1% in 1Q2015 – According
to a preliminary estimate by the Ministry of Development
Planning & Statistics (MDPS), Qatar’s real GDP growth in
1Q2015 accelerated by 4.1% as compared to the estimate of
1Q2014. However, the growth is 3.4% on a QoQ basis. The real
GDP in 1Q2015 touched QR199.21bn as compared to
QR191.31bn recorded in 1Q2014. The country’s nominal GDP
or GDP at current prices is estimated at QR173.03bn for
1Q2015, reflecting a decrease of 14.0% YoY (down 5.7% QoQ).
In real gross value added (GVA) terms, the mining and
quarrying sector witnessed a decline of 0.1% YoY in 1Q2015
(up 4.2% QoQ ). The reduction in international price levels of
crude oil in 1Q2015 has led to a sharper decline in nominal GVA
of mining and quarrying sector. In 1Q2015, the nominal GVA
estimate of this sector showed a decline of 31.5% YoY (down
12.5% QoQ). The growth of non-mining and quarrying sector
accelerated 8.9% in real terms in 1Q2015 YoY. The high growth
in 1Q2015 is the result of double digit rise seen mainly in
construction, trading, hospitality and financial sectors, coupled
with over 10% jump in the country’s population during 1Q2015.
(Peninsula Qatar)
 MDPS revises base year of national accounts from 2004 to
2013 – The Ministry of Development Planning and Statistics
(MDPS) reported revision in base year of the national accounts
from 2004 to 2013. Accordingly, Qatar’s nominal GDP rose
more than six times when compared to the nominal GDP of
QR115bn in 2004 to QR735bn in 2013. With the new base year
as 2013, the real GDP level (QR735bn) of Qatar in 2013 grew
by around three times as compared to the level (QR266bn)
estimated as per 2004 base, registering an average annual
growth rate of 12% during 2004 to 2013. The real GDP growth
(provisional) of the year 2014 at 2013 (new base year) prices is
estimated at 4%. The mining and quarrying sector growth was
down to 1.5%, while the non-mining sector growth was up by
10.6%. The base year is normally expected to be changed every
5 to 10 years. (QSA)
 MoLSA to crack down on firms flouting labor law – Al Sharq
reported that the Ministry of Labor and Social Affairs (MoLSA) is
set to launch a comprehensive campaign to ensure the
compliance of companies with stipulations of the labor law. The
search campaign will focus on compliance with the revised
working hours for summer - until August 31 - at outdoor sites.
Strict penalties will be imposed on violating companies, ranging
from suspension of their transactions at the MoLSA to closing
down the facility. Labor inspectors will also look for companies
that employ workers without proper work permits or those who
are not sponsored by them. (Gulf-Times.com)
 ORDS begins next phase of fiber roll-out – The Chairman of
Ooredoo(ORDS), Sheikh Abdulla bin Mohammed bin Saud Al
Thani, announced that the next phase of ORDS Fiber roll-out
has begun, which will position Qatar as one of the top five
countries in the world for fiber penetration upon completion.
(Peninsula Qatar)
 Qatar to privatize some government-funded investment
firms – Qatar News Agency (QNA) reported that Chairman of
Supreme Council for Economic Affairs & Investment, Emir HH
Sheikh Tamim bin Hamad Al Thani has issued directives to
privatize some government and semi-government-funded
investment companies within a specific timetable. (Peninsula
Qatar)
 PHCC to open new health center on July 5 – The Primary
Health Care Corporation (PHCC) will open the Al Ghuwairiya
Health Center in northern Qatar on July 5, 2015. The new health
center was built by the Public Works Authority (Ashghal).
(Gulftimes.com)
 BMI Research: Qatar’s air, sea freight set for growth in 2015
– According to BMI Research, tonnage throughput through Doha
Port has been forecast to grow by 36% in 2015 and average
24.5% until 2019. Air freight tons at Hamad International Airport
may grow by 4% in 2015 and average 4.7% until 2019. The
Qatari shipping sector continued to be dominated by the export
of the country’s key commodity, natural gas, through the export
terminal of Ras Laffan. Much of this is transported by national
carrier Nakilat. BMI said that freight trade may decline 1.7% in
2015 in view of the lower petroleum prices. The trade decline
until 2019 may average 4.8%. The awarding of two major road
contracts in Qatar reinforces BMI’s views that transport will be
the major focus of infrastructure investment over the next few
years and that the road sector will register a period of growth.
The new contracts, worth around QR10.4bn for the New Orbital
Highway and Truck Route, which aims to cut congestion in Doha
by looping around the city, enabling heavy vehicles travelling
from the New Doha Port to the Ras Laffan industrial area to
bypass urban areas. This will also boost road haulage volumes
from the facility. (Gulftimes.com)
International

4. Page 4 of 7
 US June payroll data dampens September rate hike bets –
US job growth slowed in June and Americans left the labor force
in droves, tempering expectations for a September interest rate
hike from the Federal Reserve. The US Labor Department said
non-farm payrolls rose 223,000 in June after a downwardly
revised 254,000 increase in May, with construction and
government employment unchanged, and the mining sector
purging more jobs. April payrolls were also lowered, meaning
60,000 fewer jobs were created during the two months than
previously reported. The unemployment rate fell two-tenths of a
percentage point to 5.3%, the lowest since April 2008, but that
was a sign of weakness as 432,000 people dropped out of the
labor force. Still, June's payrolls increase ran well above the
average for the first five months and the jobless rate is near the
5.0-5.2% range most Fed officials consider consistent with full
employment. (Reuters)
 PMI: Global business growth weakens as prices jump – The
global business growth was at its weakest since the start of
2015 in June as firms hiked prices at the fastest rate in nine
months. JPMorgan's Global All-Industry Output Index, produced
with Markit, fell to a five-month low of 53.1 in June from May's
53.6. The sub-index measuring output prices rose to 51.3, its
highest reading since September. It has been above the 50
mark that divides growth from contraction since October 2012. A
global PMI covering the service industry also fell to a five-month
low, coming in at 53.5 as compared to 54.0 in May. The global
PMI combines survey data from countries including the US,
Japan, Germany, France, Britain, China and Russia. (Reuters)
 Eurozone business growth at four-year high amid Greek
crisis – Eurozone business activity expanded at its fastest pace
in four years in June as the European Central Bank's stimulus
package more than offset fears Greece could crash out of the
currency union. The final composite June PMI from Markit,
which combines manufacturing and services activity and is seen
as a good guide to growth, came in at 54.2, just above a
preliminary reading of 54.1 and well ahead of May's 53.6. That
was its highest reading since May 2011. The index has now
been above the 50 mark that separates growth from contraction
for two years. Price discounting helped drive up the service
industry PMI, which makes up the bulk of the Eurozone
economy. It rose to 54.4 from May's 53.8, matching the
preliminary estimate. To meet the demand, services took on
staff at the second fastest rate since mid-2011. The employment
sub-index was 52.2, below the previous month's 52.6. Markit
said the data pointed to 2Q2015 economic growth of 0.4%.
(Reuters)
 PMI: Japan services activity expands at fastest pace in nine
months – According to a PMI survey, Japanese services sector
activity expanded at the fastest pace in nine months in June,
suggesting domestic demand is strengthening in the world's
third-largest economy. The Markit/Nikkei Japan Services PMI
rose to a seasonally adjusted 51.8 in June from 51.5 in May.
The index remained above the 50 threshold that separates
expansion from contraction for the third consecutive month. The
index for new business rose to 52.6 from 52.2 to indicate the
fastest growth in seven months. The outstanding business
component of the PMI index rose to 51.3 from 50.6 in May.
Strong domestic demand is essential to the Bank of Japan's
drive to lift consumer inflation to 2% by 1H2016 and eliminate
the risk of a return to nagging deflation. (Reuters)
 China freezes IPOs to stem stock market bleeding – China is
suspending initial public offerings, creating a market stabilization
fund and telling investors not to panic in an effort to shore up its
stock market, which has had the largest three-week drop since
1992. The Shanghai Composite Index fell 5.8% on Friday,
bringing the decline since its June 12 peak to 29%. According to
company filings to the exchanges Saturday evening, 10
companies will suspend IPOs on the Shanghai Stock Exchange
and 18 will do the same at the Shenzen Stock Exchange. The
financial magazine Caijing reported that the move was ordered
at a meeting of the State Council, China’s cabinet, and will be
enforced by the China Securities Regulatory Commission,
without saying how it obtained the information or how long the
planned freeze would last. Halting IPOs may stem the diversion
of funds away from the current listings. (Bloomberg)
Regional
 MEED: Economic activity in GCC region fell by just under
30% during 1H2015 – According to MEED Projects, the
economic activity in the GCC region fell by just under 30%
during 1H2015. The value of contracts awarded during 1H2015
in the GCC region fell by 26% as compared to 1H2014. As per
the report, the awards during 1H2015 were $75bn, down from
$102bn as compared to 1H2014. The total mergers and
acquisitions (M&A) activity targeting the region dropped 19.4%
to $18.9bn in 1H2015. MEED had reported in May 2015 that the
projects market was underperforming in 2015 as compared to
2014. (GulfBase.com)
 IATA: Mideast airlines witnessed 18.1% cargo growth in
May 2015 – The International Air Transport Association (IATA)
said that Middle Eastern carriers have seen their air cargo
business grow by 18.1% in May 2015, on the back of increased
trade within the region, as well as shippers taking advantage of
the Gulf carriers’ hub strategy. As per the IATA’s report, carriers’
air cargo capacity expanded by 19.4% in May 2015. The IATA
said that the main reason for the flattening in the global trend is
the adverse developments in Asia Pacific. Carriers in Asia
Pacific recorded a 2.8% YoY rise in freight ton kilometers (FTKs)
in May 2015. The region has experienced notable slowdown in
imports & exports over recent months. Compared to May 2014,
FTK growth was 2.1%, the slowest rate in 2015 and outpaced by
a capacity expansion of 4.3%. On a YTD basis, freight volumes
are up 4% from the previous year, but much of that growth was
realized in the latter part of 2014. (GulfBase.com)
 IATA: Middle East carriers’ passenger demand soared 14%
in May 2015 – According to a report released by IATA,
passenger demand of Middle East carriers soared 14% in May
2015 as compared to May 2014, driven by increasing market
activities in the non-oil sector and a surge in pre-Ramadan
travel. While the carriers’ capacity rose 19.7%, the load factor
fell 3.7 percentage points to 74.6%. Globally, the demand
increased in both domestic and international passenger
segments in May 2015, particularly in Asia Pacific. Total
revenue passenger kilometers (RPKs) rose 6.9%, which was an
improvement on the April YoY increase of 5.7%. The May 2015
capacity (available seat kilometers or ASKs) increased by 6.5%
and the load factor rose 0.3 percentage points to 79.3%.
International passenger demand rose 7.1% in May 2015 as
compared to May 2014, with airlines in all regions except Africa
recording growth. (Gulftimes.com)
 Middle East lenders struggle with falling loan pricing –
According to sources, the reluctance of local lenders to join the
$3bn loan for Abu Dhabi National Energy Company (TAQA),
which is in general syndication, is highlighting how previously
liquid local Middle East banks are struggling with falling loan
pricing. Reportedly, the deal had already attracted $3bn of
commitments before general syndication, but has struggled to
draw in any further banks because of tight pricing and concerns
over the company's underlying financial health. (GulfBase.com)

5. Page 5 of 7
 CDSI: Saudi economy accelerates in 1Q2015, may not be
sustained – According to the Central Department of Statistics &
Information (CDSI), Saudi Arabia's economy accelerated in
1Q2015, showing the world's top oil exporter can cope with low
energy prices, but the growth may slow as the government faces
pressure to rein in spending. The GDP, adjusted for inflation,
grew 2.4% from a year earlier in 1Q2015, against a revised
1.6% in 4Q2014. The figures indicated that Saudi Arabia had
offset the impact of oil's 50% plunge since mid-2014 with a
combination of heavy state spending and a strong private
sector. The oil sector, which accounts for around 40% of the
economy, grew 1.8% in 1Q2015 as Saudi Arabia ramped up
production to gain global market share. It had shrunk 0.7% in
4Q2014. The private sector expanded 3.3%, slowing from 4.7%
but staying robust as the retail and construction industries
boomed. (Reuters)
 Foreign investors buy more shares in Tadawul – Foreign
investors bought 2.33% of all shares purchased on the Saudi
Stock Exchange (Tadawul) in June 2015, the first month since
new rules allowed more overseas investment in Tadawul.
Overseas investors, including residents and holders of swaps
and qualified foreign investment licenses, purchased SR2.63bn
of shares. They sold SR3.57bn of shares during the same
period or 3.16% of the total shares sold. As compared to May
2015 when foreigners purchased SR1.35bn of shares,
accounting for 0.83% of the total shares bought. The same
month, they sold SR1.29bn in shares or 0.8% of the total shares
sold. The transactions were made solely through swaps that
month. The data revealed that Saudi Arabia’s investors bought
SR107.8bn of shares during June 2015, equating to 95.55% of
the total. Saudis sold SR107.43bn of shares or 95.24% of those
sold. (Reuters)
 Frost & Sullivan: Mall rental rates curbing retail growth in
Saudi – According to a report released by Frost & Sullivan, high
rental rates in the top-tier malls are deterring the growth of Saudi
Arabia’s retail market, an indication that the Kingdom is currently
facing a great challenge due to scarcity of human resources
owing to high attrition rates. Availability of substitute products
and expensive e-commerce transactions due to high bank rate
are some of the other deterrents faced by the retail sector in
Saudi Arabia. The major factors fueling the growth of the retail
industry in the Kingdom are the increasing consumers’
disposable income, high marginal propensity to consume,
increasing growth rate of the GDP, and government spending. In
addition, the KSA’s favorable demographic attributes make it
one of the youngest and fastest expanding consumer groups in
the world. Saudi Arabia is the second largest retail market in the
GCC region after the UAE with an estimated sales of $98bn in
2011. (GulfBase.com)
 Jadwa Investment: KSA bank deposits rose by SR20.1bn
MoM in May 2015 – According to the Saudi Chartbook of July
2015, released by Jadwa Investment, Saudi bank deposits
increased by SR20.1bn MoM in May 2015. Both demand
deposits as well as time and savings deposits rose. Saudi bank
credit to the private sector recorded a monthly acceleration in
May 2015 following a slowdown during the January-April period
of 2015. The MoM falls in foreign exchange reserves continued
to shrink, boosted in part by the partial recovery in oil prices and
revenues. Government accounts remained negative at $15.4bn
in May 2015. This came on the back of a net withdrawal from
the government deposits and reserve accounts, totaling $20.5bn
in May 2015. As per the report, ATM withdrawals and point of
sale transactions increased by 7.8%, and 10% YoY,
respectively. The PMI fell to 57, its lowest level in 2015, owing to
slower seasonal activity ahead of Ramadan. Cement production
and sales grew in May 2015 by 9%, and 7.1% YoY, respectively,
but are likely to fall in coming months due to slower seasonal
activity in Ramadan. The growth in total deposits also spanned
both the government and private sectors. Demand deposits rose
by SR10.7bn MoM, while time and savings deposits recorded a
SR12.8bn increase, the highest in ten months. As per the
Chartbook, the growth in deposits spanned both the government
and private sectors. In May 2015, Saudi Arabia’s CPI rose to
2.1% YoY, its first rise in nine months, but this was mainly due
to a lower base effect. (GulfBase.com)
 King Salman opens mega airport in Madinah – The King of
Saudi Arabia, Salman bin Abdulaziz Al Saud opened the new
Prince Mohammed bin Abdul Aziz International Airport in
Madinah. The new airport, built on an area of 4mn square
meters, would in its first phase handle 8mn passengers a year,
increasing the number to 18mn in the second phase and then
40mn after the third and final phase. The General Authority for
Civil Aviation (GACA) has been operating the airport on a trial
basis since April 2015 to check systems. It is the first airport in
the Kingdom constructed and operated entirely by the private
sector. (GulfBase.com)
 NBAD: UAE personal loans hit AED1.3tn in one year –
According to the National Bank of Abu Dhabi (NBAD), personal
borrowing in the UAE is again picking up with the amount of
loans granted to the UAE residents in 1Q2015 increasing by
6.5% from a year earlier. During March 2014-15, consumers in
the UAE pocketed a total of AED1.3tn in personal loans. First
Gulf Bank (FGB) and Abu Dhabi Commercial Bank (ADCB),
account for 52% of the total amount of borrowings. NBAD
reported that personal borrowings represent 30% of the total
loans granted by the UAE banks. Banking sector liquidity has
improved significantly since the economic downturn in 2008. In
June 2014, the loan-to-deposit ratio (LTD) touched a historical
low at 87%, but since then the numbers have been growing.
(GulfBase.com)
 Gulf Petrochem acquires Essar Petroleum East Africa –
UAE-based Gulf Petrochem Group (GPG) has acquired Essar
Petroleum East Africa in a bid to enhance the group’s services
and products for the downstream supply chain in the oil & gas
sector in East Africa. Following the transaction, Essar Petroleum
will be renamed as Aspam Energy (Kenya) Limited. Apsam will
continue with the commitment to cater to customers in East
Africa, who were earlier serviced by Essar in the fuel retailing
segment. This acquisition allows Gulf Petrochem to efficiently
cater to East African customers and capitalize on a market
which they plan to make its East African hub. Gulf Petrochem
has secured the due approvals from the Energy Regulatory
Commission (ERC), the Competition Commission and other
regulatory bodies. (GulfBase.com)
 DSI increases GCC ownership limit to 100% – Dubai-based
engineering & construction company, Drake & Scull International
(DSI) has increased the limit for which nationals from the GCC
region can hold their shares to 100% from 49%, effective July 2,
2014. UAE nationals currently hold 51.02% of the company's
stock, with the remaining GCC nations owning 5.85%. (Reuters)
 Dubai Municipality working on $473mn projects – The Gulf
News reported, citing a top official, that Dubai Municipality is
currently working on 23 main projects worth around $473mn,
including a fish market, Dubai Safari and the Thuraya
astronomical observatory. The work on some of these projects
had started in 2014 and is now expected to be ready in 2015.
The new municipality building in Al Garhoud area, where work is
currently going on, is slated to be completed by December 31,
2015. In 2016, the municipality will complete nine main projects,

6. Page 6 of 7
including the $83mn African Village phase of the overall billion-
dirham Dubai Safari project, which is expected to open in
3Q2016. Among the new projects added to the municipality’s
growing list of projects is the Dubai Club for Special Sports,
which will be ready by October 2016. (GulfBase.com)
 TAQA denies merger talks – Abu Dhabi National Energy
Company (TAQA) has confirmed that it is not engaged in merger
discussions with any government or other entity. (ADX)
 ADNOC to expand network of service stations – Abu Dhabi
National Oil Company (ADNOC) is planning to grow its network
of service stations throughout the Emirate of Sharjah, with its
first acquired station Al Dar having opened on June 30, 2015.
ADNOC Distribution CEO Abdulla Salem Al Dhaheri said that AI
Dar service station is the first service station as part of the
transfer of assets agreement signed with Emirates National Oil
Company (ENOC) for the transfer of 25 non-operational service
station facilities in Sharjah to Adnoc Distribution’s network. He
disclosed that in Sharjah each station will have an investment of
AED400,000. ADNOC is planning to invest a further AED100mn
in its branding alone. (GulfBase.com)
 Al Jaber seeks new terms for $4.5bn restructured debt –
According to sources, Al Jaber Group is talking with banks to
refinance around $4.5bn of debt it restructured in 2014 to
improve terms imposed by creditors. The company is keen to
revise the tough terms of its restructured deal, while hoping to
take advantage of low interest rates and reduce the interest rate
on its debt and extend the maturity of its loans. Creditors have
so far pushed back on any new deal, though, with some
claiming the company has not fulfilled the conditions of the
original agreement signed in June 2014. (Gulftimes.com)
 Kuwait may issue bonds to finance deficit – Kuwait’s finance
minister, Anas al-Saleh said that Kuwait is considering issuing
bonds among various options to finance a budget deficit created
by low oil. He said a specialized team at the central bank is
studying this issue and the decisive factor will be what's best for
the country, in addition to the economic benefit to the markets.
He did not specify if Kuwait was considering international or
domestic bonds. The government does not have outstanding
dollar bonds and has only a modest amount of domestic debt.
(Reuters)
 Al Hassan bags $10.65mn electrical work contract – Al
Hassan Engineering Company Abu Dhabi, 49% owned by Al
Hassan Engineering Company, has received letter of intent from
Hyundai Engineering & Construction for $10.65mn for electrical
work for the Satah al-Razboot (SARB) Package 4 Project. The
project duration is 20 months from June 2015. (MSM)
 ONIC Holding gets nod to reduce merger notice period –
Oman National Investment Corporation Holding (ONIC Holding)
announced that His Excellency the Minister of Commerce has
approved the company’s request to reduce the merger notice
period from three months to one month pursuant to Article
13(bis)(8) of the Commercial Companies Law (Royal Decree
No. 04/74, as amended). (MSM)
 Bank Muscat leads Omani firms in Forbes Top 500 in Arab
World – Bank Muscat has topped the rankings among the
Omani companies in the Forbes Top 500 companies in the Arab
World 2015. The bank was ranked 44 in the top 500 companies
that celebrated the region’s corporate success. The rankings
were based on the financial performance as of December 2014
and featured publicly-listed companies across Arab countries.
(GulfBase.com)
 BHB announces commencement of BHD200mn Ijarah
Sukuk subscription – Bahrain Bourse (BHB) announced that
Bahraini and non-Bahraini investors can directly subscribe
through the primary market in the Government Islamic Lease
(Ijarah) Sukuk Issue No. 23. Investors will be able to trade the
Sukuk in the secondary market at BHB once listed on BHB,
which is expected to be on July 26, 2015. The Bourse specified
that the subscription period through the registered brokers is
effective July 2-7. The BHD200mn securities will be issued at a
par value of BHD1 each on July 9, 2015 for a period of 10 years
ending on July 9, 2025. The expected annual return (rent) on
these securities is 5%, and will be paid every six months on
January 9 and July 9h every year throughout the period of this
issue, in which the first return payment will be paid on January
9, 2015 and the last return payment on July 9, 2025. (Bahrain
Bourse)

7. Contacts
Saugata Sarkar Sahbi Kasraoui QNB Financial Services SPC
Head of Research Head of HNI Contact Center: (+974) 4476 6666
Tel: (+974) 4476 6534 Tel: (+974) 4476 6544 PO Box 24025
saugata.sarkar@qnbfs.com.qa sahbi.alkasraoui@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
engaged investment 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. 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. For reports dealing with Technical Analysis,
expressed opinions and/or recommendations may be different or contrary to the opinions/recommendations of QNBFS Fundamental Research as a result of depending solely on the historical
technical data (price and volume). 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. This report may not be reproduced in whole or in part without permission from QNBFS
COPYRIGHT: No part of this document may be reproduced without the explicit written permission of QNBFS.
Page 7 of 7
Rebased Performance Daily Index Performance
Source: Bloomberg Source: Bloomberg
Source: Bloomberg (
#
Market closed on 3 July 2015) Source: Bloomberg (*$ adjusted returns;
#
Market closed on 3 July 2015)
80.0
100.0
120.0
140.0
160.0
180.0
Jul-11 Jul-12 Jul-13 Jul-14 Jul-15
QSE Index S&P Pan Arab S&P GCC
0.4%
0.6%
(0.1%)
(0.3%)
0.2%
0.6%
(0.1%)
(2.0%)
(1.0%)
0.0%
1.0%
SaudiArabia
Qatar
Kuwait
Bahrain
Oman
AbuDhabi
Dubai
Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D%* WTD%* YTD%*
Gold/Ounce 1,168.48 0.2 (0.6) (1.4) MSCI World Index 1,744.49 (0.2) (1.8) 2.0
Silver/Ounce 15.70 (0.0) (0.7) (0.0) DJ Industrial#
17,730.11 0.0 (1.2) (0.5)
Crude Oil (Brent)/Barrel (FM
Future)
60.32 (2.8) (4.6) 5.2 S&P 500#
2,076.78 0.0 (1.2) 0.9
Crude Oil (WTI)/Barrel (FM
Future)# 56.93 0.0 (4.5) 6.9 NASDAQ 100#
5,009.21 0.0 (1.4) 5.8
Natural Gas (Henry
Hub)/MMBtu# 2.79 0.0 0.7 (7.0) STOXX 600 383.42 (0.7) (4.1) 2.4
LPG Propane (Arab Gulf)/Ton#
43.00 0.0 4.6 (12.2) DAX 11,058.39 (0.6) (4.5) 2.7
LPG Butane (Arab Gulf)/Ton#
53.50 0.0 (4.9) (18.3) FTSE 100 6,585.78 (0.9) (3.4) 0.3
Euro 1.11 0.3 (0.5) (8.1) CAC 40 4,808.22 (0.8) (5.7) 3.0
Yen 122.79 (0.2) (0.9) 2.5 Nikkei 20,539.79 0.3 0.0 14.5
GBP 1.56 (0.2) (1.1) (0.0) MSCI EM 964.31 (0.7) (1.7) 0.8
CHF 1.06 0.3 (0.8) 5.7 SHANGHAI SE Composite 3,686.92 (5.8) (12.0) 14.0
AUD 0.75 (1.4) (1.7) (8.0) HANG SENG 26,064.11 (0.8) (2.2) 10.4
USD Index#
96.11 0.0 0.7 6.5 BSE SENSEX 28,092.79 0.4 1.2 1.8
RUB 55.97 0.8 2.1 (7.8) Bovespa 52,519.41 (2.1) (3.1) (11.3)
BRL 0.32 (1.1) (0.2) (15.5) RTS 919.61 (1.3) (2.5) 16.3
145.6
121.6
116.4