Qatar

1. Page 1 of 6
QSE Intra-Day Movement
Qatar Commentary
The QSE Index declined marginally to close at 12,182.1. Losses were led by the
Real Estate and Telecoms indices, falling 1.8% and 0.7%, respectively. Top
losers were Ahli Bank and Qatar General Insurance & Reinsurance Co., falling
8.8% and 3.4%, respectively. Among the top gainers Gulf International Services
rose 5.8%, while Qatar Cinema & Film Distribution Co. was up 3.2%.
GCC Commentary
Saudi Arabia: The TASI Index fell 0.4% to close at 9,678.8. Losses were led
by the Transport and Energy & Utilities indices, falling 2.7% and 1.5%,
respectively. Bahri fell 4.0%, while SABB Takaful was down 2.8%.
Dubai: The DFM Index gained 1.0% to close at 4,029.2. The Financial &
Investment Services index rose 2.6%, while the Services index gained 2.3%.
Amlak Finance surged 14.7%, while Arab Insurance Group was up 8.8%.
Abu Dhabi: The ADX benchmark index fell marginally to close at 4,589.2. The
Banks and Telecommunication index declined 0.4% each. Union Insurance
Co. fell 9.8%, while Commercial Bank International was down 5.6%.
Kuwait: The KSE Index rose 0.2% to close at 6,313.0. The Insurance index
gained 2.0%, while the Telecommunication index rose 1.3%. Gulf Insurance
Group gained 6.7%, while Hilal Cement Co. was up 6.4%.
Oman: The MSM Index rose 0.2% to close at 6,467.7. Gains were led by the
Financial and Industrial indices, rising 0.4% and 0.1%, respectively. Gulf
International Chemicals rose 4.0% and Global Financial Invest. was up 3.6%.
Bahrain: The BHB Index declined marginally to close at 1,362.2. The
Commercial Bank index fell 0.1%, while the other indices ended flat. Bahrain
Islamic Bank declined 3.6%, while Al Salam Bank – Bahrain was down 0.7%.
QSE Top Gainers Close* 1D% Vol. ‘000 YTD%
Gulf International Services 82.40 5.8 1,455.1 (15.1)
Qatar Cinema & Film Distrib. Co. 45.30 3.2 0.4 13.3
Al Khaleej Takaful Group 44.00 1.1 20.6 (0.4)
Qatar Industrial Manufacturing Co. 46.00 0.9 2.6 6.1
Al Khalij Commercial Bank 22.54 0.7 255.4 2.2
QSE Top Volume Trades Close* 1D% Vol. ‘000 YTD%
Ezdan Holding Group 17.35 (2.6) 5,614.2 16.3
Vodafone Qatar 16.73 (2.5) 2,808.8 1.7
Barwa Real Estate Co. 51.20 (0.8) 2,151.8 22.2
Masraf Al Rayan 46.20 0.2 1,471.1 4.5
Gulf International Services 82.40 5.8 1,455.1 (15.1)
Market Indicators 3 Jun 15 2 Jun 15 %Chg.
Value Traded (QR mn) 856.1 452.7 89.1
Exch. Market Cap. (QR mn) 649,801.2 650,910.7 (0.2)
Volume (mn) 20.0 12.2 63.7
Number of Transactions 8,382 6,090 37.6
Companies Traded 43 41 4.9
Market Breadth 16:23 21:17 –
Market Indices Close 1D% WTD% YTD% TTM P/E
Total Return 18,931.60 (0.0) 2.4 3.3 N/A
All Share Index 3,251.49 (0.2) 2.1 3.2 13.7
Banks 3,212.08 (0.0) 2.6 0.3 14.5
Industrials 3,978.06 0.7 4.7 (1.5) 14.0
Transportation 2,486.10 0.3 1.8 7.2 13.7
Real Estate 2,681.01 (1.8) (2.0) 19.4 9.5
Insurance 4,740.20 (0.5) (2.9) 19.7 21.9
Telecoms 1,248.71 (0.7) 6.6 (15.9) 25.1
Consumer 7,314.81 (0.6) 2.4 5.9 28.4
Al Rayan Islamic Index 4,658.66 (0.4) 2.9 13.6 14.2
GCC Top Gainers##
Exchange Close#
1D% Vol. ‘000 YTD%
Gulf Int. Services Qatar 82.40 5.8 1,455.1 (15.1)
Deyaar Development Dubai 0.80 3.9 40,984.7 (5.4)
Aldar Properties Abu Dhabi 2.77 3.7 27,314.0 4.5
Ajman Bank Dubai 2.05 3.5 557.2 (23.1)
Tabuk Cement Co. Saudi Arabia 26.73 3.1 581.8 7.8
GCC Top Losers##
Exchange Close#
1D% Vol. ‘000 YTD%
Al Ahli Bank Qatar 42.40 (8.8) 0.4 (14.6)
National Shipping Co. Saudi Arabia 52.78 (4.0) 1,235.8 55.3
Qatar Gen. Ins. & Re Qatar 56.50 (3.4) 3.0 10.1
Ezdan Holding Group Qatar 17.35 (2.6) 5,614.2 16.3
Vodafone Qatar Qatar 16.73 (2.5) 2,808.8 1.7
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%
Ahli Bank 42.40 (8.8) 0.4 (14.6)
Qatar General Ins. & Reinsur. Co. 56.50 (3.4) 3.0 10.1
Qatar German Co for Med. Dev. 17.90 (3.0) 229.3 76.4
Ezdan Holding Group 17.35 (2.6) 5,614.2 16.3
Vodafone Qatar 16.73 (2.5) 2,808.8 1.7
QSE Top Value Trades Close* 1D% Val. ‘000 YTD%
Gulf International Services 82.40 5.8 116,857.0 (15.1)
Barwa Real Estate Co. 51.20 (0.8) 109,554.9 22.2
Ezdan Holding Group 17.35 (2.6) 96,072.9 16.3
QNB Group 194.90 0.6 81,666.7 (8.5)
Masraf Al Rayan 46.20 0.2 67,032.6 4.5
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* 12,182.09 (0.0) 2.4 1.1 (0.8) 276.18 178,500.4 12.8 2.0 4.2
Dubai 4,029.20 1.0 0.7 2.7 6.8 256.71 98,774.0 9.3 1.5 5.4
Abu Dhabi 4,589.24 (0.0) 1.6 1.4 1.3 87.13 123,093.9 11.6 1.5 4.9
Saudi Arabia 9,678.75 (0.4) (0.8) (0.1) 16.1 1,639.60 568,214.1 20.3 2.3 2.8
Kuwait 6,313.04 0.2 (0.0) 0.3 (3.4) 60.50 96,518.3 16.0 1.1 4.2
Oman 6,467.70 0.2 1.2 1.3 2.0 10.79 24,707.1 9.3 1.4 4.1
Bahrain 1,362.20 (0.0) (0.3) (0.1) (4.5) 1.22 21,304.2 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)
11,700
11,800
11,900
12,000
12,100
12,200
9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00

2. Page 2 of 6
Qatar Market Commentary
 The QSE Index declined marginally to close at 12,182.1. The
Real Estate and Telecoms indices led the losses. The index fell
on the back of selling pressure from non-Qatari and GCC
shareholders despite buying support from Qatari shareholders.
 Ahli Bank and Qatar General Insurance & Reinsurance Co. were
the top losers, falling 8.8% and 3.4%, respectively. Among the
top gainers Gulf International Services rose 5.8%, while Qatar
Cinema & Film Distribution Co. was up 3.2%.
 Volume of shares traded on Wednesday rose by 63.7% to
20.0mn from 12.2mn on Tuesday. Further, as compared to the
30-day moving average of 16.5mn, volume for the day was
21.0% higher. Ezdan Holding Group and Vodafone Qatar were
the most active stocks, contributing 28.0% and 14.0% to the total
volume, respectively.
Source: Qatar Stock Exchange (* as a % of traded value)
Ratings and Global Economic Data
Ratings Updates
Company Agency Market Type* Old Rating New Rating Rating Change Outlook Outlook Change
Al Khalij Commercial
Bank
Moody’s Qatar LT CRA/ST CRA – A2(cr)/Prime-1(cr) – – –
Barwa Bank Moody’s Qatar LT CRA/ST CRA – A1(cr)/Prime-1(cr) – – –
The Commercial
Bank of Qatar
Moody’s Qatar LT CRA/ST CRA – Aa3(cr)/Prime-1(cr) – – –
Doha Bank Moody’s Qatar LT CRA/ST CRA – A1(cr)/Prime-1(cr) – – –
Masraf Al Rayan Moody’s Qatar LT CRA/ST CRA – A1(cr)/Prime-1(cr) – – –
Qatar International
Islamic Bank
Moody’s Qatar ST CRA – Prime-1(cr) – – –
Qatar National Bank Moody’s Qatar LT CRA/ST CRA – Aa2(cr)/Prime-1(cr) – – –
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, CRA – Counterparty Risk Assessment)
Global Economic Data
Date Market Source Indicator Period Actual Consensus Previous
06/03 US ADP ADP Employment Change May 201K 200K 165K
06/03 US Census Bureau Trade Balance April -$40.9B -$44.0B -$50.6B
06/03 EU Eurostat Unemployment Rate April 11.10% 11.20% 11.20%
06/03 EU Eurostat Retail Sales MoM April 0.70% 0.60% -0.60%
06/03 EU Eurostat Retail Sales YoY April 2.20% 2.00% 1.70%
06/03 EU European Central Bank ECB Main Refinancing Rate 3-June 0.05% 0.05% 0.05%
06/03 EU European Central Bank ECB Deposit Facility Rate 3-June -0.20% -0.20% -0.20%
06/03 EU European Central Bank ECB Marginal Lending Facility 3-June 0.30% 0.30% 0.30%
06/03 UK Markit Markit/CIPS UK Services PMI May 56.5 59.2 59.5
06/03 UK Markit Markit/CIPS UK Composite PMI May 55.8 58.4 58.4
06/03 UK British Retail Consortium BRC Shop Price Index YoY May -1.90% -1.80% -1.90%
06/03 Spain Markit Markit Spain Services PMI May 58.4 59.4 60.3
06/03 Spain Markit Markit Spain Composite PMI May 58.3 58.7 59.1
06/03 Italy Markit Markit/ADACI Italy Services PMI May 52.5 52.8 53.1
06/03 Italy Markit Markit/ADACI Italy Composite PMI May 53.7 53.7 53.9
06/03 China Markit HSBC China Composite PMI May 51.2 – 51.3
06/03 China Markit HSBC China Services PMI May 53.5 – 52.9
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 70.67% 52.59% 154,831,449.69
GCC 3.37% 9.71% (54,179,055.65)
Non-Qatari 25.95% 37.71% (100,652,394.04)

3. Page 3 of 6
News
Qatar
 Vodafone Qatar earnings bang in line with our estimate but
continued ARPU erosion due to prepay competition
remains a concern; stay Reduce – Vodafone Qatar (VFQS)
reported a net loss of QR66mn for the quarter ended March
2015, which was right in line with our estimate of QR65mn.
Revenue however dipped 3% QoQ (up 4% YoY) to QR571.2mn
vs. our estimate of QR611.6mn. While mobile subs at 1.444mn
were in line with our estimate of 1.445mn, quarterly ARPU fell
yet again, down 4% QoQ from QR120 to QR115 and a
significant 10% YoY fall from QR128; we had been expecting a
flattish QR120 in ARPU for the March quarter. Profitability
metrics improved with gross margin of 53.5% (3QFY2015:
50.1%/our estimate: 50.1%) and EBITDA margin: 23.5%
(3QFY2015: 21.3%/our estimate: 22.1%) driven by costs
enhancements and scale benefits. Dividends of QR0.21 also in
line with our expectation of QR0.20. This translates into a yield
of 1.3% at yesterday’s close of QR16.73. VFQS declared a
dividend of QR0.17 in FY2014. Still room to fall – management
believes 1QFY2016 top-line will decline YoY. VFQS reported
QR584.8mn in 1Q2015 revenue. This would imply a further
downward adjustment in our model. Pricing pressure in prepay
since June 2014 has taken QR600mn off the mobile market and
has hurt Vodafone disproportionately. New move by ORDS
in postpay will hurt further. VFQ has seen good traction from
the recently introduced Red plan offering 10GB local internet,
unlimited local calls/SMS for QR250/month. However,
competition’s move to cut postpay pricing by 30% (QR55/month
and above for one year) could impact ARPUs further.
Recommendation and valuation: We rate VFQS a Reduce with a
price target of QR14.60. The stock continues to benefit from
buying appetite fueled by the company’s transformation into a
fully Shari’ah-compliant business. However, VFQS remains
expensive at close to 16x FY2018e EV/EBITDA. (QNBFS
Research, Company Financials)
 Moody's assigns CR Assessments to seven Qatari banks –
Moody's Investors Service has assigned Counterparty Risk
Assessments (CR Assessments) to seven Qatari banks, in line
with its revised bank rating methodology. Moody's also affirmed
the subordinated debt ratings of two Qatari banks and withdrew
the outlooks on these subordinated instruments for its own
business reasons. The CR Assessments assigned to seven
banks are – Al Khalij Commercial Bank {(A2(cr)/Prime-1(cr)},
Barwa Bank {A1(cr)/Prime-1(cr)}, The Commercial Bank of
Qatar {Aa3(cr)/Prime-1(cr)}, Doha Bank {A1(cr)/Prime-1(cr)},
Masraf Al Rayan {A1(cr)/Prime-1(cr)}, Qatar International Islamic
Bank {Prime-1(cr)} and Qatar National Bank {Aa2(cr)/Prime-
1(cr)}. (GulfBase.com)
 ORDS unveils ‘enhanced backup and storage service’ for
businesses – Ooredoo (ORDS) has launched an “enhanced
Managed Backup and Managed Storage service” for businesses
in Qatar. The launch of the combined solution is the latest in a
series of new services targeting Qatar’s small and medium-sized
business sector, as the company continues to enhance the
range of options available for organizations of all sizes. The new
solution is designed as a standardized turnkey solution for
businesses that require remote data protection easily and cost-
effectively, without having to invest in infrastructure. (Gulf-
Times.com)
 MERS opens 43rd branch in Jeryan Njeima – Al Meera
Consumer Goods Company (MERS) has opened a new branch
in Jeryan Njeima, a Doha suburb, near the College of North
Atlantic – Qatar, making it the 43rd addition to the supermarket
chain. MERS will have a total of 56 outlets across the country
following the completion of 14 new shopping malls. (Gulf-
Times.com)
 MDPS: Visitors to Qatar rise 11% YoY during YTD April 2015
– Qatar’s Ministry of Development Planning & Statistics (MDPS),
in its monthly bulletin, reported that visitors to Qatar increased
by 11.1% YoY during YTD up to April 2015. Visitors from the
GCC countries made up the highest proportion (41.6%) of total
visitors. As per the report, vehicles registered in April 2015
reached 9,937 compared to 11,368 in March 2015. The
country’s population reached 2.343mn in April 2015, up 8.7% as
compared to April 2014, when population attained 2.155mn.
(QSA)
 Cabinet reviews draft law to regulate government tenders –
The State Cabinet, at its routine weekly meeting on Wednesday,
referred the draft law on regulating tenders issued by the
government entities (after incorporating the changes
recommended by the Advisory Council) for final approval by the
higher authorities. The draft law, once in force, will apply to all
the ministries, and other government bodies and agencies,
including the authorities and institutions. The cabinet also
endorsed a draft to issue executive regulations or by-laws for
the above-cited draft law. The regulations basically talk of
procedures for bidding, the powers of the tenders & auctions
committees, opening envelopes and payment of insurance
premiums, deciding on bids, framework contracts, two-stage
tendering, restricted tendering, qualifying companies, practice,
competition, direct agreement, contract signing & execution,
sale of items, renting of real estate & movables, classification of
contractors and evaluating their performance among others. The
government will set up one or several committees to float
tenders to award state contracts or conduct auctions or sign
direct agreements with concerned parties to carry out state
contracts. However, the committee or committees will have no
jurisdiction over contracts concerning defense departments or
public security agencies like the police. Further, the draft law will
not apply to Qatar Petroleum as well, and to entities the Cabinet
excludes based on the recommendations of the Ministry of
Finance. (Peninsula Qatar)
International
 US trade deficit narrows in April – The US Commerce
Department said that the trade gap narrowed to $40.9bn in April
from March's revised deficit of $50.6bn. The 19.2% drop in the
April trade deficit was the largest decrease since early 2009,
and the deficit was about $3bn less than forecast. Exports
increased 1.0% to $189.9bn in April with foreign sales of US
services edging up to a record high of $60.9bn. Imports fell 3.3%
to $230.8bn as West Coast ports cleared a backlog created by a
labor dispute that was settled earlier in 2015. The trade data
supported the notion that the US economy has recovered
somewhat from a contraction in 1Q2015 and bolstered
expectations the Federal Reserve may consider raising interest
rates later this year. Meanwhile, a report by payrolls processor
ADP showed that private employers added 201,000 jobs in May,
the most since January 2015. (Reuters)
 Eurozone retail sales up, unemployment down in April –
According to data published by the European Union's statistics
office Eurostat, eurozone retail sales rose and unemployment
fell in April, adding to signs of economic recovery in the single
currency area. Eurostat said that retail sales in the 19 countries
sharing the euro rose 0.7% MoM and 2.2% YoY in April. Further,
unemployment fell to 11.1% of the workforce in April from a
downwardly revised 11.2% in March as the number of people
without jobs fell by 130,000 people to 17.846mn. The data adds

4. Page 4 of 6
to other signs of economic recovery in the eurozone, which
returned to inflation in May after five months of falling prices and
stagnation, following an acceleration in economic growth in
1Q2015. (Reuters)
 OECD cuts global growth forecast, says recovery taking
hold – The Paris-based think tank, Organisation for Economic
Cooperation and Development (OECD) has cut its global
economic growth forecast for 2015 but says it expects lower oil
prices to ensure a gradual recovery, even if weak investment
remains a worry. The global economy is now forecasted to grow
at 3.1% in 2015, down from the 3.7% predicted in November
2014. The OECD said that it expected a rise in pace to global
GDP growth of 3.8% in 2016, with China's heady GDP
expansion rate of recent years tapering to 6.8% in 2015 and
6.7% in 2016, versus 7.4% in 2014. US growth is now seen at
2.0% for 2015, marginally lower than 2.2% in 2014, before
picking up to 2.8% in 2016. The eurozone countries are
expected to post GDP growth of 1.4% in 2015 and 2.1% in
2016, aided by the triple-booster of cheaper oil, European
Central Bank’s asset-buying and the rise in the dollar exchange
rate. (Reuters)
 Brazil raise rates for sixth straight time – Brazil has raised
interest rates for the sixth straight time as policy makers work to
convince investors that inflation will reach target. The central
bank increased the benchmark Selic rate by a half percentage
point to 13.75% on Wednesday, the highest since January 2009.
Economists and traders bet that the deepest recession in 25
years will prevent the central bank President, Alexandre Tombini
from raising interest rates as much as needed to slow inflation to
the 4.5% target in 2016. Meanwhile, Tombini has pledged to do
what it takes to meet the goal even as unemployment rises. He
said that the inflation outlook for 2016 has not improved enough.
President Dilma Rousseff’s administration has raised taxes and
cut spending this year to rebuild credibility and help the central
bank tame inflation. (Bloomberg)
Regional
 Emaar EC signs SR1.25bn Murabaha deal with Alinma Bank
– Emaar The Economic City (Emaar EC) has signed the
Murabaha agreement with Alinma Bank for SR1.25bn loan. The
loan duration is for eight years from June 3, 2015 to May 31,
2023. The company will use the loan to develop the industrial
valley district in King Abdullah Economic City (KAEC). The
facility is guaranteed by lands within the KAEC. (Tadawul)
 SAICO gets SAMA temporary nod for 25 insurance products
– Saudi Arabian Cooperative Insurance Company (SAICO) has
obtained temporary approval from the Saudi Arabian Monetary
Agency (SAMA) to use 25 insurance products for six months
starting from June 1, 2015. (Tadawul)
 SAMA green signal to Trade Union for insurance products –
Trade Union Cooperative Insurance Company has obtained
temporary approval from the Saudi Arabian Monetary Agency
(SAMA) to use the motor comprehensive – private, motor
comprehensive – commercial, and motor third party liability
insurance products for three months. (Tadawul)
 SAMA extends temporary approval to UCA insurance
products – United Cooperative Assurance Company (UCA) has
obtained the Saudi Arabian Monetary Agency’s (SAMA)
approval for the extension of the temporary approval for its
insurance products. The products include motor – all risks
(commercial), motor third party liability and motor – all risks
(private). UCA will use the products for three months starting
from June 2, 2015 to August 31, 2015. (Tadawul)
 Al Alamiya gets SAMA temporary approval extension – Al
Alamiya for Cooperative Insurance Company has obtained the
Saudi Arabian Monetary Agency’s (SAMA) approval for the
extension of the temporary approval for its insurance products.
The products include the comprehensive motor insurance and
motor third party liability insurance. UCA will use the products
for three months starting from June 2, 2015 to August 31, 2015.
(Tadawul)
 NCB: Contracts reach SR57.3bn in 1Q2015 in Saudi Arabia
– According to a report released by the National Commercial
Bank (NCB), the value of contracts awarded in Saudi Arabia
reached SR57.3bn in 1Q2015, recording a marginal decrease of
7% on a QoQ basis. The contracts awarded during 1Q2015
reflect the continued strength of the construction industry and
also shows that the Kingdom can afford to keep spending close
to its recent past levels even as oil prices have dipped. The
main contributing sector was health care, accounting for 26% of
awarded contracts at (SR15bn), followed by residential real
estate (SR12bn) and industrial (SR6bn). The Construction
Contracts Index increased to 290.78 points by 1Q2015-end,
from 234.48 points recorded at the end of 2014, yet it is below
the year end peak of 2013’s 465.03 points. (GulfBase.com)
 KSA non-oil private sector growth slows to 1-year low In
May – According to a survey conducted jointly by Markit
Economics, Saudi British Bank and HSBC Bank, Saudi Arabia's
non-oil private sector expanded at a slower pace in May 2015,
reaching the lowest since May 2014. The seasonally adjusted
purchasing managers' index (PMI), for the non-oil private sector
fell to 57.0 in May from 58.3 in April. However, any reading
above 50 indicates expansion in the sector. The rate of growth
in the sector was weaker in May with the expansion in activity
was the least marked in four months and below the long-run
trend. New orders increased in May due to deliberate sales
efforts and improving market conditions, although the rate of
growth eased to the weakest since September 2011.
(GulfBase.com)
 IMF: Saudi Arabia may issue government bonds in 2015 –
The International Monetary Fund (IMF) said that the Saudi
Arabian government may resume issuing bonds in 2015, easing
downward pressure on the country's foreign reserves caused by
low oil prices. As per the Ministry of Finance data, bond issues
would be a big shift in the Saudi economic policy. Riyadh has
been focusing on paying down its obligations; public debt fell to
SR44.3bn at the end of 2014, or just 1.6% of GDP. However,
the plunge in global oil prices since June 2014 has adversely
affected Saudi oil export revenues. Finance Minister Ibrahim
Alassaf has indicated about the bond issues. The government
last issued a development bond in 2007. (GulfBase.com)
 Sedco acquires 40% stake in AlShiaka – Sedco Holding
Group has acquired 40% stake in AlShiaka, a leading Saudi
Arabian men’s clothes designing and making company.
AlShiaka will utilize Sedco’s capital and expertise to drive its
strategic growth. This investment is in line with Sedco’s strategic
approach to invest in new viable ventures in the region.
(GulfBase.com)
 ENR: Saudi Arabia PMI declines in May 2015 – According to
the Emirates NBD Research (ENR), Saudi Arabia’s headline
Purchasing Managers’ Index (PMI) declined to 57 in May 2015,
the lowest reading since May 2014. The average PMI reading
during January to May 2015 stood at 58.4, marginally higher
than the 58.2 average over January to May 2014, suggesting
that the pace of growth in the non-oil sector has held up despite
sharply lower oil prices. Output, new orders and new export
orders growth, all slowed in May 2015 as compared to April

5. Page 5 of 6
2015. But the output and new orders sub-indices remained
above 60.0, indicating very strong demand in the Kingdom. The
export orders index eased to 56.7 in May 2015 from 58.9 in April
2015, the lowest reading since June 2014. Slower growth was
also evident in the employment component of the PMI.
(GulfBase.com)
 Cylingas completes half of its project in Fujairah – Cylingas,
a subsidiary of Emirates National Oil Company (ENOC), has
achieved a key milestone by completing 50% of its modular
petroleum regeneration and processing plant in Fujairah without
losing time. The plant has a processing capacity of 7,500 barrels
per day (bpd) while the storage tank terminal has a capacity of
101,000 cubic meters, making it a significant third party contract
for Cylingas. (GulfBase.com)
 NBAD to meet investors for potential capital-boosting bond
– National Bank of Abu Dhabi (NBAD) is planning to meet its
fixed income investors ahead of a potential dollar-denominated
capital-boosting bond issue. NBAD will meet investors in Asia
and Europe, and would issue a bond during the course of 2015
subject to market conditions. The bond issue, rated six notches
lower than the lender's rating at Baa3/BBB- by Moody's and
Standard and Poor's respectively, will boost the NBAD’s Tier 1
(core) capital. (Reuters)
 Emaar Properties beachfront project to cost AED10bn – The
state-run WAM news agency has reported that Emaar
Properties' mixed-use beachfront development in Dubai's Al
Mamzar district is expected to have a preliminary cost of
AED10bn. The project, announced in 2014 in cooperation with
the Dubai Municipality, will have 4,000 residential units, 300
hotel rooms, and 250,000 square meters of retail outlets.
(Reuters)
 IAF arranges financing for DIL – Integrated Alternative
Finance (IAF), a subsidiary of Abu Dhabi Financial Group
(ADFG), has structured and financed a mezzanine debt facility
for Downtown Investments Limited (DIL), the owner of the Taj
Dubai, located in prime Downtown Dubai. The facility for DIL
was structured alongside senior debt provided by five regional
lenders and equity provided by DIL’s parent with a total project
cost of AED700mn. (GulfBase.com)
 Aldar to launch sale for Meera Shams Abu Dhabi – Aldar
Properties will launch sales for its Meera residential
development in Shams Abu Dhabi on Reem Island at a two-day
sales event at the Crowne Plaza Abu Dhabi, Yas Island during
June 13-14, 2015. Meera features two 26-storey towers with 408
apartments. One, two and three-bedroom apartments are priced
at AED900,000, AED1.2mn and AED1.6mn, respectively. (ADX)
 Warba Bank to acquire auto finance portfolio from AMIFC –
Warba Bank has signed a bond with Al Mulla International
Finance Company (AMIFC) to acquire an auto financing portfolio
of a cumulative value of KD20mn with a profit sharing
arrangement. This transaction reaffirms Warba’s proven strategy
of collaborating with local companies’ across different sectors,
which is Shari’ah-compliant. (GulfBase.com)
 NBO launches contactless payments in Oman, oil price
slump will not affect banking sector – National Bank of Oman
(NBO) has launched a pilot project for contactless payment,
which made it the first bank in Oman to introduce the cutting-
edge technology. The new scheme, which is the result of joint
efforts by NBO and MasterCard, will allow customers to make
payments for small ticket items at the checkout, without the
need to enter a PIN or sign a receipt. The bank said during the
pilot project, contactless card holders will be able to purchase
items costing less than OMR10 with a simple tap of their card.
Meanwhile, NBO CEO Ahmed Al Musalmi said a decline in
crude prices is not expected to have any major impact on the
banking sector in Oman in the near future. However, if low oil
prices persist, the overall economy will be affected. He said the
sector would remain unaffected, at least for 2015 and 2016. The
good thing about Oman is a very low level of debt, he added.
(GulfBase.com)
 PDO to lift oil output to 600,000 bpd before 2019 – Petroleum
Development Oman (PDO) MD Raoul Restucci has said that the
company may increase its crude production to 600,000 barrels
per day (bpd) before 2019. Earlier, in May 2015, PDO
announced its plans to increase production by 5% to an average
of 600,000 bpd for 10 years from 2019. PDO is spending half of
its $40bn planned investment in projects over the next five
years. (GulfBase.com)
 OPWP targets 5% cut in power sector gas consumption in
2015, plans five IWPs – Oman Power & Water Procurement
Company (OPWP) is targeting a 5% reduction in the
consumption of natural gas by the nation’s power sector in 2015.
The move is part of a slate of strategic initiatives, which include
plans for a number of major power and water schemes, outlined
for tendering and implementation during 2015. Meanwhile,
OPWP is planning to initiate tendering processes for developing
five new Independent Water Projects (IWPs) in 2015 and 2016
to meet increasing demand for domestic potable water.
(GulfBase.com)

6. 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
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Page 6 of 6
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
May-11 May-12 May-13 May-14 May-15
QSE Index S&P Pan Arab S&P GCC
(0.4%)
(0.0%)
0.2%
(0.0%)
0.2%
(0.0%)
1.0%
(0.8%)
(0.4%)
0.0%
0.4%
0.8%
1.2%
SaudiArabia
Qatar
Kuwait
Bahrain
Oman
AbuDhabi
Dubai
Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D%* WTD%* YTD%*
Gold/Ounce 1,185.05 (0.7) (0.5) 0.0 MSCI World Index 1,789.91 0.4 0.6 4.7
Silver/Ounce 16.54 (1.5) (1.3) 5.3 DJ Industrial 18,076.27 0.4 0.4 1.4
Crude Oil (Brent)/Barrel (FM
Future)
63.80 (2.6) (2.7) 11.3 S&P 500 2,114.07 0.2 0.3 2.7
Crude Oil (WTI)/Barrel (FM
Future)
59.64 (2.6) (1.1) 12.0 NASDAQ 100 5,099.23 0.4 0.6 7.7
Natural Gas (Henry
Hub)/MMBtu
2.63 0.4 (0.3) (12.0) STOXX 600 395.93 0.6 1.6 7.5
LPG Propane (Arab Gulf)/Ton 41.25 (9.1) (6.5) (15.8) DAX 11,419.62 1.5 2.6 7.8
LPG Butane (Arab Gulf)/Ton 57.00 (3.8) 0.9 (9.2) FTSE 100 6,950.46 0.1 (0.1) 4.1
Euro 1.13 1.1 2.6 (6.8) CAC 40 5,034.17 1.3 3.1 9.6
Yen 124.25 0.1 0.1 3.7 Nikkei 20,473.51 (0.6) (0.7) 12.7
GBP 1.53 (0.0) 0.3 (1.5) MSCI EM 995.83 (0.4) (0.8) 4.1
CHF 1.07 (0.1) 0.7 6.5 SHANGHAI SE Composite 4,909.98 0.2 6.5 52.2
AUD 0.78 0.2 1.9 (4.7) HANG SENG 27,657.47 0.7 0.9 17.2
USD Index 95.47 (0.4) (1.5) 5.8 BSE SENSEX 26,837.20 (2.0) (4.2) (3.8)
RUB 54.30 2.8 3.8 (10.6) Bovespa 53,522.91 (1.2) 3.3 (9.3)
BRL 0.32 (0.2) 1.4 (15.5) RTS 947.28 (2.7) (2.2) 19.8
175.1
142.4
129.2