5 August Daily market report

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QE Intra-Day Movement
Qatar Commentary
The QE index rose 1.4% to close at 13,173.6. Gains were led by the Telecoms
and Industrials indices, gaining 2.8% and 1.5%, respectively. Top gainers were
Medicare Group and Dlala Brokerage & Inv. Holding Co., rising 6.5% and
5.8%, respectively. Among the top losers, Qatar General Ins. & Reins. Co. fell
5.7%, while Qatar Fuel Co. declined 0.7%.
GCC Commentary
Saudi Arabia: The TASI index rose 0.4% to close at 10,450.5. Gains were led
by Bank. & Fin. Serv. and Trans. indices, rising 1.7% and 1.0%, respectively.
Aljazira Takaful gained 9.6%, while MetLife AIG ANB Coop. Ins.was up 4.6%.
Dubai: The DFM index declined 0.9% to close at 4,842.8. The Real Estate &
Construction and Transportation indices fell 1.3% each. Gulfa Mineral Water &
Processing Ind. Co. declined 9.7%, while Arabtec Holding was down 2.1%.
Abu Dhabi: The ADX benchmark index fell 0.4% to close at 4,962.7. The
Energy index declined 1.8%, while Consumer index was down 1.7%. Int. Fish
Farming Holding declined 9.7%, while Comm. Bank Int. was down 4.5%.
Kuwait: The KSE index gained 0.3% to close at 7,166.8. The Oil & Gas index
rose 1.1%, while Telecommunication index was up 0.9%. Real Estate Asset
Management Co. gained 9.3%, while Zima Holding Co. was up 9.1%.
Oman: The MSM index rose 0.3% to close at 7,350.1. Gains were led by the
Financial index, rising 0.6%, while other indices ended in red. National Bank Of
Oman gained 3.1%, while Taageer Finance was up 2.0%.
Bahrain: The BHB index gained 0.8% to close at 1,487.3. The Services index
rose 4.1%, while the Commercial Banking index rose 0.8%. Bahrain
Telecommunication Co. gained 7.1%, while BBK was up 3.5%.
Qatar Exchange Top Gainers Close* 1D% Vol. ‘000 YTD%
Medicare Group 125.90 6.5 299.4 139.8
Dlala Brokerage & Inv. Holding Co. 58.20 5.8 131.2 163.3
Qatari Investors Group 55.00 5.6 229.0 25.9
United Development Co. 30.20 4.5 3,463.4 40.2
Qatar Oman Investment Co. 15.60 4.3 2,135.0 24.6
Qatar Exchange Top Vol. Trades Close* 1D% Vol. ‘000 YTD%
Qatar Oman Investment Co. 15.60 4.3 2,135.0 24.6
Salam International Investment Co. 19.75 3.9 1,572.3 51.8
Mazaya Qatar Real Estate Dev. 20.60 1.7 1,463.4 84.3
Vodafone Qatar 19.69 2.0 1,269.7 83.8
Market Indicators 05 Aug 14 04 Aug 14 %Chg.
Value Traded (QR mn) 789.3 871.1 (9.4)
Exch. Market Cap. (QR mn) 699,943.7 693,157.9 1.0
Volume (mn) 18.5 23.8 (22.3)
Number of Transactions 8,182 9,236 (11.4)
Companies Traded 43 41 4.9
Market Breadth 34:6 27:11 –
Market Indices Close 1D% WTD% YTD% TTM P/E
Total Return 19,648.36 1.4 2.3 32.5 N/A
All Share Index 3,323.17 1.2 2.1 28.4 16.1
Banks 3,196.02 0.9 1.7 30.8 15.6
Industrials 4,333.70 1.5 1.3 23.8 16.7
Transportation 2,307.82 0.9 3.5 24.2 14.8
Real Estate 2,821.61 1.4 5.1 44.5 15.2
Insurance 3,818.23 (0.1) 1.7 63.4 12.1
Telecoms 1,598.73 2.8 1.3 10.0 22.6
Consumer 7,330.96 0.9 4.5 23.2 28.0
Al Rayan Islamic Index 4,497.70 2.0 4.7 48.1 19.3
GCC Top Gainers##
Exchange Close#
1D% Vol. ‘000 YTD%
Bahrain Telecom Co. Bahrain 0.39 7.1 92.5 36.5
Qatari Investors Group Qatar 55.00 5.6 229.0 25.9
Ajman Bank Dubai 2.82 5.2 288.3 13.7
United Development Qatar 30.20 4.5 3,463.4 40.2
Bahrain Telecom Co. Bahrain 0.39 7.1 92.5 36.5
GCC Top Losers##
Exchange Close#
1D% Vol. ‘000 YTD%
Qatar Gen. Ins. & Re Qatar 45.00 (5.7) 1.6 12.7
Knowledge Eco. City Saudi Arabia 25.29 (3.1) 4,626.7 42.9
Comm. Real Estate Kuwait 0.10 (3.0) 905.9 5.4
Abu Dhabi Nat. Energy Abu Dhabi 1.10 (2.7) 1,203.8 (25.2)
Nat. Mobile Telecom. Kuwait 1.54 (2.5) 5.4 (12.5)
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)
Qatar Exchange Top Losers Close* 1D% Vol. ‘000 YTD%
Qatar General Ins. & Reins. Co. 45.00 (5.7) 1.6 12.7
Qatar Fuel Co. 217.80 (0.7) 12.3 (0.3)
Barwa Real Estate Co. 38.95 (0.6) 915.1 30.7
Commercial Bank of Qatar 67.00 (0.6) 273.4 13.6
Qatar German Co. for Med. Dev. 14.01 (0.6) 61.3 1.2
Qatar Exchange Top Val. Trades Close* 1D% Val. ‘000 YTD%
Qatar Islamic Bank 111.70 3.4 65,006.6 61.9
Masraf Al Rayan 54.20 1.7 50,163.2 73.2
Industries Qatar 173.00 0.6 42,419.4 2.4
Medicare Group 125.90 6.5 37,504.2 139.8
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* 13,173.64 1.4 2.3 2.3 26.9 216.74 192,204.5 16.2 2.2 3.8
Dubai 4,842.82 (0.9) 0.2 0.2 43.7 260.08 94,701.4 21.4 1.9 2.2
Abu Dhabi 4,962.72 (0.4) (1.8) (1.8) 15.7 62.55 136,725.9 14.2 1.8 3.3
Saudi Arabia 10,450.52 0.4 2.3 2.3 22.4 2,846.39 570,098.5 20.1 2.5 2.7
Kuwait 7,166.79 0.3 0.5 0.5 (5.1) 53.21 112,621.5 17.0 1.1 3.9
Oman 7,350.06 0.3 2.1 2.1 7.5 20.33 26,971.9 12.4 1.8 3.8
Bahrain 1,487.32 0.8 1.1 1.1 19.1 1.68 54,475.9 12.1 1.0 4.6
Source: Bloomberg, Qatar Exchange, Tadawul, Muscat Securities Exchange, Dubai Financial Market and Zawya (** TTM; * Value traded ($ mn) do not include special trades, if any)
12,950
13,000
13,050
13,100
13,150
13,200
9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00

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Qatar Market Commentary
 The QE index rose 1.4% to close at 13,173.6. The Telecoms and
Industrials indices led the gains. The index rose on the back of
buying support from non-Qatari shareholders despite selling
pressure from Qatari shareholders.
 Medicare Group and Dlala Brokerage & Inv. Holding Co. were
the top gainers, rising 6.5% and 5.8%, respectively. Among the
top losers, Qatar General Ins. & Reins. Co. fell 5.7%, while Qatar
Fuel Co. declined 0.7%.
 Volume of shares traded on Tuesday fell by 22.3% to 18.5mn
from 23.8mn on Monday. However, as compared to the 30-day
moving average of 14.4mn, volume for the day was 28.5%
higher. United Development Co. and Qatar Oman Investment
Co. were the most active stocks, contributing 18.8% and 13.8%
to the total volume respectively.
Source: Qatar 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
Bank Dhofar (BD) Fitch Oman VR/LT IDR BB/BBB+ BB+/BBB+  – –
Islamic Arab
Insurance Co.
(Salama)
S&P Dubai FSR/CCR BBB+/BBB+ BBB+/BBB+ – Stable 
Source: News reports (* LT – Long Term, ST – Short Term, FSR- Financial Strength Rating, FCR – Foreign Credit Rating, LCR – Local Currency Rating, IDR – Issuer Default Rating, SR – Support Rating, LC –
Local Currency, VR – Viability Rating, CCR – Counterparty Credit Rating)
Earnings Releases
Company Market Currency
Revenue
(mn)2Q2014
% Change
YoY
Operating Profit
(mn) 2Q2014
% Change
YoY
Net Profit (mn)
2Q2014
% Change
YoY
Abu Dhabi National Hotels
(ADNH)
Abu Dhabi AED 344.2 17.4% – – 41.4 44.2%
Bahrain Family Leisure Co.
(BFLC)
Bahrain BHD 0.3 -10.4% 0.0 37.7% 0.6 NA
Source: Company data, DFM, ADX, MSM
Global Economic Data
Date Market Source Indicator Period Actual Consensus Previous
08/05 US Markit Markit US Services PMI July 60.8 60.8 60.8
08/05 US Markit Markit US Composite PMI Jul y 60.6 – 60.6
08/05 US ISM ISM Non-Manf. Composite July 58.7 56.5 56
08/05 US Bloomberg IBD/TIPP Economic Optimism August 44.5 47.3 45.6
08/05 EU Markit Markit Eurozone Services PMI July 54.2 54.4 54.2
08/05 EU Markit Markit Eurozone Composite PMI July 53.8 54 53.8
08/05 France Markit Markit France Composite PMI July 49.4 49.4 49.4
08/05 France Markit Markit France Services PMI July 50.4 50.4 50.4
08/05 Germany Markit Markit Germany Services PMI July 56.7 56.6 56.7
08/05 Germany Markit Markit/BME Germany Composite PMI July 55.7 55.9 55.7
08/05 UK HM Treasury Official Reserves Changes July -$616M – $994M
08/05 UK Markit Markit/CIPS UK Composite PMI July 58.8 58 57.9
08/05 UK Markit Markit/CIPS UK Services PMI July 59.1 58 57.7
08/05 Spain Markit Markit Spain Services PMI July 56.2 55.2 54.8
08/05 Spain Markit Markit Spain Composite PMI July 55.7 – 55.2
08/05 Italy Markit Markit/ADACI Italy Composite PMI July 53.1 – 54.2
08/05 Italy Markit Markit/ADACI Italy Services PMI July 52.8 53.8 53.9
08/05 China Markit HSBC China Services PMI July 50.0 – 53.1
08/05 China Markit HSBC China Composite PMI July 51.6 – 52.4
08/05 Japan Markit Markit Japan Services PMI July 50.4 – 49.0
08/05 Japan Markit Markit/JMMA Japan Composite PMI July 50.2 – 50.0
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 64.29% 68.98% (37,043,928.21)
Non-Qatari 35.72% 31.02% 37,043,928.21

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News
Qatar
 Qatar stock market set to be flooded with more liquidity –
Qatar issued a law formally raising the limit of foreign ownership
in the listed companies to 49%. The move paves the way for
more liquidity flow into the country’s stock market that has a
capitalization of $192.21bn. The foreign ownership limit in most
listed companies was 25% earlier. Non-Qatari GCC nationals,
who were previously treated as foreigners for the purpose of
trading in Qatari stocks, are to be now treated as Qatari citizens.
This means their ownership of Qatari stocks will not be counted
in as being part of foreign ownership. Meanwhile, QNA said the
Emir HH Sheikh Tamim bin Hamad Al Thani had issued Law No.
9 of 2014, which amends some provisions of Law No. 13 of
2000 regulating investment of non-Qatari capital in economic
activity. The law says that listed companies should seek
approval from the Ministry of Economy and Commerce to
amend their Articles of Association to raise the foreign
ownership limit to 49%. QNA said the legislation also provides
for raising this percentage (49) for foreigners further with
approval from the State Cabinet. The law is to be effective from
the date of issue and is to be published in the official gazette.
(Peninsula Qatar)
 QCB auctions T-bills worth QR4bn – The Qatar Central Bank
(QCB) has auctioned treasury bills worth QR4bn on August 5,
2014, for which it received bids totaling QR5.305bn. T-bills worth
QR2bn with a three-month maturity period were auctioned at a
yield of 0.73%. T-bills with a six-month maturity period worth
QR1bn were sold at a yield of 0.96%, while T-bills with nine-
month maturity period worth QR1bn were auctioned at a yield of
1.10%. (QCB)
 MERS reports QR112.8mn net profit in 1H2014 – Al-Meera
Consumer Goods Company (MERS) reported a net profit of
QR112.8mn in 1H2014 as compared to QR57.6mn in 1H2013.
The Company’s EPS amounted to QR5.64 in 1H2014 versus
QR3.16 in 1H2013. (QE)
 QNB Group: Qatar’s international reserves hit record
$42.2bn in June – The QNB Group (QNBK) in its latest ”Qatar
Monthly Monitor” said, Qatar’s international reserves surged to
$42.2bn in June, driven by a large current account surplus.
QNBK said the country’s international reserves have been
“steadily rising” over the years on large current account
surpluses. The latest available information suggests that import
cover stood at 7.9 months at the end of June, well above the
IMF recommended level of three months for pegged exchange
rates. QNBK said Qatar’s current account balance stood at
$17.2bn in the first quarter of 2014. The report showed Qatar’s
foreign merchandise trade balance registered a surplus of
QR32.3bn in June 2014. The surplus fell 1.3% YoY due to a
large increase in imports (23.3%), reflecting strong domestic
demand. Meanwhile, merchandise exports grew by 3.3% on
high gas & oil prices. Total exports in June stood at QR41.5bn,
while imports stood at QR9.2bn. Japan topped the export
destinations in June accounting for 26% of Qatar’s exports,
followed by South Korea (18%) and India (11%). The UAE was
the largest exporter to Qatar in June (13%), closely followed by
China (11%) and the US (10%). According to QNBK, domestic
demand in Qatar is growing strongly on the back of “investments
and private consumption”. Strong domestic demand from
investments and private consumption drove double-digit non-
hydrocarbon growth (11.5%) in 1Q2014. QNBK said quoting the
Ministry of Development Planning and Statistics (MDPS), the
share of investment in GDP rose to 28.2%, as compared to
26.8% a year earlier. (Gulf-Times.com)
 QNB Group: Non-hydrocarbon sector grows double-digit in
Qatar – Strong domestic demand from investments and private
consumption drove double-digit non-hydrocarbon growth
(11.5%) in 1Q2014. The QNB Group’s (QNBK) ‘Qatar monthly
monitor’ noted that the share of investment in GDP rose to
28.2% as compared to 26.8% a year earlier. Citing the Ministry
of Development Planning and Statistics (MDPS) report, QNB
analysts said the growth is driven by the implementation of
major projects in preparation for the 2022 FIFA World Cup. The
share of private consumption to GDP rose to 13.8% in 1Q2014
as compared to 13.2% a year earlier. The share of private
consumption remains low by international standards, but is
expected to rise over the medium-term. Qatar’s overall CPI
inflation fell to 2.8%, partially due to falling international food
prices. Foreign inflation contributed 0.4% to overall inflation in
June 2014. The contribution of domestic inflation fell to 2.4%
notwithstanding rising rent, fuel and energy inflation (7.4%).
QNBK analysts expect further growth in population to drive
domestic inflation, leading to a modest rise in overall inflation to
3.4% for 2014 as a whole. However, there is a small risk that the
fast-growing economy could lead to supply bottlenecks owing to
limited domestic logistics capacity, pushing up inflation more
than expected. (Peninsula Qatar)
International
 Sturdy US services, factory data boost growth picture – US
services sector activity hit an 8-1/2 year high in July and factory
orders surged in June, bolstering expectations of solid economic
growth in the third quarter. The recent reports added to
employment and consumer spending data in suggesting
sustained momentum in the economy that could bring the
Federal Reserve closer to raising interest rates. The Institute for
Supply Management's services index rose to 58.7 in July from
56.0 in June. While the index only dates to 2008, an
examination of subcomponents with a longer track record
indicate that was the highest level of activity since December
2005. A reading above 50 indicates expansion. Activity in the
sector, which accounts for more than 80% of the US economy,
was boosted by a jump in orders, which touched their highest
point in nearly nine years. A sub-index gauging services industry
employment also rose as did order backlogs, but export order
growth moderated. (Reuters)
 Markit: US services sector growth dips in July – According to
a survey by Markit, the pace of growth in the US services sector
dipped in July as compared to June, but still posted its second-
highest reading in 4-1/2 year. Markit said its final services
Purchasing Managers Index hit 60.8 in July, down from the
preliminary reading of 61.0, which was also the reading for June.
The 61.0 print for June was the highest final reading for any
month since the survey began in October 2009. A reading above
50 signals expansion in economic activity. Markit’s Chief
Economist Chris Williamson said that the services sector grew
at a rapid pace, just slightly weaker than June’s post-recession
high, accompanied by a surge in factory production. However,
there are signs that the growth could cool in the coming months.
The survey indicated that the rate of job creation has waned, as
have inflows of new business. (Reuters)
 Argentina says to formally demand US banks make bond
payouts – Argentina will formally demand that intermediary
banks charged with delivering the country's debt payments
make hundreds of millions of dollars in payouts that were due in
June but that have been blocked by a US court. Argentina
defaulted last week after losing a long legal battle with hedge
funds that rejected the terms of debt restructurings in 2005 and
2010. The government deposited payments owed to holders of

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its restructured bonds with intermediaries Citibank Argentina
and Bank of New York Mellon. US District Judge Thomas Griesa
said the deposits were illegal because he had ordered Argentina
not to pay restructured bondholders without paying the holdouts
at the same time. The economy ministry will formally demand
that Bank of New York Mellon and Citibank Argentina make the
payouts despite Griesa's order. (Reuters)
 BRC: UK shop prices fall in July at fastest rate since 2006 –
The British Retail Consortium (BRC) said that prices in British
shops fell in July at the fastest rate since records began seven-
and-a-half years ago, marking 15 months of sinking prices. The
BRC said retail prices in July were 1.9% lower than a year
earlier, marking the largest decline in shop prices since the
series started in December 2006. Prices had fallen by 1.8% in
June. Food prices rose just 0.3%, also the smallest rise on
record as compared to 0.6% in the previous month. The BRC
said there was deep and widespread discounting across grocery
stores. Prices of furniture, electrical goods and gardening tools
fell at a faster rate in July. Official data last month showed
consumer price inflation (CPI) increased to 1.9% in June, just
below the Bank of England's 2% target, although economists
said the rise was driven by one-off factors. (Reuters)
 Surprise jump in UK services PMI heralds continued strong
growth – Britain's services industry grew last month at the
fastest pace since November, raising the chance that the rapid
economic recovery will continue for the rest of the year and
potentially bring forward a rise in interest rates. The monthly
Markit/CIPS purchasing managers index for the services sector
beat economists' expectations and contrasted with a mostly
downbeat recent string of economic data. A similar survey of
manufacturing hit a one-year low last week, but the rebound in
services took the composite PMI for the private sector as a
whole to a three-month high. This may encourage the Bank of
England to rethink a prediction made in May that the economy
would slow slightly in the second half of 2014. (Reuters)
Regional
 GCC FDI falls by 14.6% to reach $24bn in 2013 – According
to a report released by the United Nations Conference on Trade
and Development (UNCTAD), foreign direct investment (FDI) in
the GCC region fell for the fifth consecutive year in 2013. GCC
FDI declined 14.6% from $28bn in 2012 to $24bn in 2013. This
comes despite an improvement in world FDI, which increased by
9.1% to reach $1.5tn in 2013. As a result, the GCC’s share of
world FDI has fallen to 1.6% from 4.2% in 2009. The UAE led
the GCC in FDI for the first time in 2013, with $10.5bn, pushing
Saudi Arabia into second place. Along with Bahrain, the UAE is
the only country to record four consecutive years of increasing
FDI inflows, as investors return to the property, manufacturing
and services sectors and as the country gears up for the Dubai
World Expo in 2020. Saudi Arabia has experienced five
consecutive years of declining FDI flows. FDI decreased by 24%
from $12.2bn in 2012 to $9.3bn in 2013. FDI flows to Kuwait are
estimated to have decreased to $2.3bn in 2013. (GulfBase.com)
 Saudi labor ministry asks for SR14.9bn annually on reforms
– According to a Saudi Ministry of Labor report, the ministry is
asking the government to spend SR14.9bn annually on labor
market reforms and take steps to move Saudi citizens into
private sector jobs. The reforms include quotas for companies to
hire Saudi nationals, levies on firms which employ large
numbers of foreigners, and training and unemployment benefits
schemes. The ministry’s report said that the reforms had
achieved initial success in 2013, with the number of Saudis
working in the private sector rising to about 1.5mn at the end of
2013 from 681,481 people before the reforms began. The
proportion of Saudi nationals employed in the private sector
climbed to 15.15% in 2013 from 9.9% in 2009. Meanwhile, the
unemployment rate fell to 11.7% at the end of 2013 from 12.1%
in 2012. (GulfBase.com)
 SWCC’s Yanbu plant to install another desalination unit –
Saline Water Conversion Corporation (SWCC) said that the
second unit of the new desalination plant, which is under
construction in Yanbu, will be installed by this weekend. The unit
was delivered by Doosan Global for the desalination and power
generation facility of the Yanbu Third Phase project. The project
is believed to be the largest desalination plant in the world. The
new unit is the second of six units to be supplied by Doosan
Global for the Yanbu project that will supply 550,000 cubic meter
of water to the Madinah province when completed. The first unit
of the project was installed in May 2014. While Doosan supplies
four units, two units will be manufactured in the Kingdom as part
of a technology transfer agreement. The third and fourth units
will be installed in November 2014, while the fifth and sixth units
will be installed by 1H2016. (GulfBase.com)
 SABB HSBC Saudi PMI rises to 60.1 in July 2014 – The
seasonally adjusted SABB HSBC Saudi Arabia Purchasing
Managers Index (PMI) rose to 60.1 points in July 2014 from 59.2
points in June, on a scale where the 50-point level separates
expansion of activity from contraction. The sub-index for output,
at 65.3 points, was the highest since February 2012, while the
sub-index for new orders was the highest since September
2013. The companies that participated in the survey cited rising
numbers of new projects and good market conditions for July's
rapid growth in activity. The growth in Saudi Arabia's non-oil
business activity accelerated to its fastest level in July since
September 2012, while the growth in the UAE's non-oil private
sector edged down in the month but remained high by historical
standards, the survey showed. The Saudi growth was boosted
by strong output and new orders. However, the capacity
constraints were evident in a rise in the sub-index for backlogs
of work, which at 55.6 points was the highest since the survey
began in August 2009. The rates of inflation of purchase costs,
staff costs and overall input prices accelerated in July from
June, as was the growth in output prices. The UAE index, which
measures the performance of the manufacturing and services
sectors, was at 58.0 points in July 2014, down from 58.2 points
in June 2014. The output growth dropped to 61.6 points in July
from 63.3 points in June 2014, while the growth of new orders
fell more moderately. The employment growth slowed slightly
but stayed comfortably in the positive territory. Input price
inflation edged down to 55.0 points, while output price growth
increased slightly but was still negative at 49.5 points.
(GulfBase.com)
 SAMA appoints Vice-Governor – Saudi Arabian Monetary
Agency (SAMA) has appointed Mr. Abdulaziz bin Saleh bin
Othman Al Furaih as the Vice-Governor. Al Furaih served as
Deputy CEO in Riyadh Bank before joining SAMA as Vice-
Governor. (Bloomberg)
 Saudi Aramco awards $54mn EPC contract to Essar
Projects – Saudi Arabian Oil Company (Saudi Aramco) has
awarded a $54mn engineering, procurement and construction
(EPC) contract to India-based Essar Projects. The project
involves the upgradation of a Crude Stabilization Unit at
Aramco’s Abqaiq Plant in Shaybah. The scope of work entails
engineering, procurement and construction of a crude tank,
replacement of crude pumps and associated civil, piping,
electrical and instrumentation facilities. The work is expected to
take 29 months to complete. (Bloomberg)

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 JETRO: UAE-Japan trade hits AED94.91bn in 1H2014 –
According to Japan External Trade Organization (JETRO), the
total trade between the UAE and Japan grew by around 3.2% to
AED94.91bn in 1H2014 as compared to around AED90.22bn in
1H2013. The UAE exports to Japan rose by 1.5% to AED78.1bn
in 1H2014 as compared to AED76.96bn in 1H2013. The UAE
exports to Japan accounted for around 27% of Japan’s total
imports from the Middle East during 1H2014 which stood at
$79.3bn. The UAE is Japan’s second trade partner in the Middle
East after Saudi Arabia. The UAE imports from Japan also rose
by around 12% to AED16.81bn in 1H2014 as compared to
AED15.01bn in 1H2013. The surplus of the UAE balance of
trade slightly dropped in the first 6 months of 2014 owing to the
robust growth of imports. It stood at AED61.33bn as compared
to AED61.95bn in 1H2013. The UAE imports accounted for
around 34% of Japan’s total exports to the Middle East, which
stood at $13.64bn in 1H2014. (GulfBase.com)
 Du launches VoLTE technology for first time in Mideast –
Emirates Integrated Telecommunications Company (Du) has
launched a Voice over LTE (VoLTE) technology for the first time
in the Middle East. The customers of Du in the UAE will be able
to simultaneously access the internet at 4G LTE speeds while
making a crystal-clear voice call, made possible by the VoLTE
technology. Du has announced the successful completion of its
network’s first VoLTE call. (GulfBase.com)
 DFM enrolls 5 brokerage firms to margin trading members –
Dubai Financial Market (DFM) announced that Al Safwa Islamic
Financial Services, Global for Shares & Bonds, Al Fardan
Financial Services, Al Brooge Securities and Al-Sharhan Stock
Center have been accredited to provide margin trading. With
this, the total number of DFM brokerage firms providing this
service has reached to 24. (DFM)
 AE wins $7.8mn University of Dubai MEP deal – AE Arma-
Elektropanç (AE) has won a $7.8mn contract to carry out MEP
works on the first phase of the University of Dubai project in
Dubai Academic City. Main contractor Kier Dubai awarded AE
the deal which will see the firm work on the university’s main
building, management faculty buildings, and the information
technology departments. Covering a confined space of 21,200
square meters, the University of Dubai project comprises a
number of phases and is affiliated with the Dubai Chamber of
Commerce and Industry (DCCI). (Bloomberg)
 NBAD OneShare underperforms benchmark in 1H2014 –
National Bank of Abu Dhabi (NBAD) reported a rise of 8.5% for
its NBDA OneShare MSCI UAE UCITS ETF for 1H2014, as
against a benchmark performance of 11.1%. Top five relative
holdings in the ETF are Air Arabia, Shuaa Capital, Ral
Properties, Dana Gas and Eshraq Properties. The realized
tracking error for the period was 2.4%. This was slightly above
what was initially anticipated, according to the fund manager’s
report. The report stated that dividends are usually paid out after
a period of six weeks in the UAE. During the dividend season
(February-April 2014), at a time when the market was strong,
the fund held receivables on dividends which created a drag on
performance. The lag between receiving and reinvesting cash
led to a variance, which led to a tracking error which was higher
than anticipated. (GulfBase.com)
 Reem Mall work to start early in 2015 – Construction work on
The Reem Mall in Abu Dhabi is set to begin at the start of 2015.
The project is to go through a single-phase construction period
and will take around three years to complete, officially opening
in 2018. An investment of around $1bn will be put into The
Reem Mall project and will include around 450 stores, 85
restaurants, and a range of entertainment features across three
floors. National Real Estate Company (NREC), which is
developing the mall, has appointed Stuart Ingram as Director of
development for project. Ingram will be responsible for all
aspects of development and delivery of the project.
(GulfBase.com)
 Adnoc Distribution closes 3 service stations for
maintenance – Abu Dhabi National Oil Company for
Distribution (ADNOC Distribution) has announced the closure of
Al Samha 1, Zafaranah and Al Mushrif service stations in the
emirate of Abu Dhabi beginning from August 3, 2014 for a
period of four months. Part of the company’s ongoing efforts to
modernize its service station network, the closure will facilitate
the deployment of general maintenance works as well as
upgrade of equipment and machinery. Adnoc Oasis convenient
stores at Al Samha 1 and in Al Mushrif service stations will
continue to remain operational during the maintenance period,
while the Adnoc Oasis store in Zafaranah will be closed. Adnoc
Distribution has also announced the use of alternative service
stations to ensure customers are not inconvenienced by the
closure. The closure of these three stations is part of company’s
regular maintenance plan which covers the entire service station
network. (GulfBase.com)
 TCA Abu Dhabi: Abu Dhabi hotel guests up 28% in 1H2014
– According to the figures released by Abu Dhabi Tourism &
Culture Authority (TCA Abu Dhabi), more than 1.7mn guests
checked into Abu Dhabi’s hotels and hotel apartments in
1H2014, marking a 28% uplift on 1H2013. The arrivals delivered
5,147,392 guest nights, which was up 22% on the comparative
period in 2013 with occupancy climbing 8% YoY. Hotel and
room revenues both jumped 15% to AED3.089bn and AED1,
578bn respectively. Guest nights and revenues with occupancy
also rebounded to reach 77%. The half year performance was
aided by a jump in YoY uplift for the month of June 2014 when
guest arrivals rose 14% to 264,203, guest nights climbed 18% to
771,997, the average length-of-stay nudged up 4% to 2.92
nights and occupancy moved up 8% to 70%. Hotel revenues
rose 16% to AED413mn. The number of hotels in the emirate
stood at 154 in June 2014 with a total of 27,405 rooms as
against 145 hotels in June 2013, accounting for 25,270 rooms.
(GulfBase.com)
 Mubadala to get 10.5% stake in Batista’s mining unit –
Brazilian tycoon Eike Batista will transfer 17.1mn shares
(10.5%) of his iron ore mining company MMX Mineraçao e
Metalicos SA to Abu Dhabi government investment fund
Mubadala Development Corporation. The transaction will cut
Batista’s stake to 46% of the Rio de Janeiro-based company.
The move will end his full control of the company, but he will
remain the largest shareholder. The transaction should be
completed by the end of September 2014. Batista has debts
with Mubadala related to deals he made before the collapse and
break-up of his giant EBX industrial group that includes MMX.
Batista will also transfer 185.6mn shares of Prumo Logistica SA
(10.44%) to Mubadala in 3Q2014. (GulfBase.com, Bloomberg)
 Kuwait real estate sector sales reach KD522mn in June –
Kuwait’s real estate market has achieved a record breaking
performance in 1H2014 with sales reaching KD522mn in June
2014. The sector broke the KD500mn-mark for the first time and
saw its third monthly record performance in under a year.
Exceptional performances across all three sectors helped push
sales up, with the commercial sector recording its best figures
yet. Sales in the residential sector reached KD172mn in June,
reflecting a 3.4% YoY increase. The number of transactions in
June reached 590, up 25% YoY. The sector recorded a little
over KD1bn in sales in 1H2014, growing by 17% as compared
to 1H2013. However, the number of transactions in 1H2014

of 7
dropped by 9% YoY. Sales in the investment sector stood at
KD235mn in June 2014, up 90% YoY. However, the sector also
experienced a slight decline of 1% YoY in the number of
transactions. With larger values but fewer transactions, the
average transaction size increased in June to KD1.3mn. Sales
in the investment sector during 1H2014 totaled KD964mn, up
52% YoY; the number of transactions was up by 12%. Sales in
the commercial sector more than doubled YoY as sales totaled
KD114mn in June. The sector recorded 9 transactions; down by
25% YoY. Sales for 1H2014 reached KD273mn, up 60% YoY.
The Kuwait Credit Bank (KCB) approved 530 loans worth
approximately KD32mn in June. The value of loans approved
declined by 2% on a YoY basis. Meanwhile, the value of loans
disbursed by KCB reached KD20mn, reflecting a YoY increase
of 80%. (GulfBase.com)
 CBO: Service sector follows oil in Oman’s GDP growth –
According to a report by the Central Bank of Oman (CBO),
Oman’s service sector is occupying the second position of
dominance after the hydrocarbon sector as far as the
composition of the country’s GDP is concerned. With a share of
39.7% in total real GDP, the sector witnessed a growth of 7.4%
during 2012 as compared to 7.7% during 2011. According to the
report, increased expenditure on public administration and
defense, social expenditure on education and health and
infrastructure building had a positive impact on the services
growth in the recent period. The share of services sector
increased from 34.9% during 2012 to 37.3% during 2013. In
terms of growth, the sector posted a growth of 10% during 2013
as against 15.1% in 2012. Wholesale and retail trade with a
share of 8.4% in the overall real GDP and 21.2% of the services
sector performed very well with a growth rate of 13.0% during
2012 as compared to 7.5% in 2011. (GulfBase.com)
 Sumail Estate to get OMR50mn infrastructure facilities –
Sumail Industrial Estate in Oman is in the final stages of
evaluating bids for the infrastructure facilities construction worth
OMR50mn. The infrastructure facilities will include roads and
sewerage networks for the estate. There are only three
companies which are in the fray for final allotment, with Larsen &
Toubro (Oman) with the lowest bid. The other two companies
are Galfar Engineering & Contracting and Egyptian Contracting
Co. & Partners. The Sumail Industrial Estate attracted
investments worth OMR125mn in 2013. (GulfBase.com)
 Al Suwadi Power appoints new CFO – Al Suwadi Power
Company has appointed Mr. Muhammad Fawad Akhtar as the
new Chief Financial Officer (CFO) effective August 1, 2014,
replacing Mr. Cliff Dickinson, who has resigned as CFO effective
July 31, 2014. (MSM)
 Al Anwar announces agreed price for stake sale in Taageer
Finance – Al Anwar Holdings announced that the price agreed
in the Share Purchase Agreement signed regarding the sale of
company’s entire stake in Taageer Finance Company is
OMR0.162 per share of Taageer. If the transaction is approved
by the Central Bank of Oman (CBO) and the Capital Market
Authority (CMA), Al Anwar will record a profit of OMR0.269mn in
the group financials and OMR2.842mn in parent company
financials. (MSM)
 KEO bags contract for design of Duqm SEZ industrial zones
– The Special Economic Zone Authority of Duqm (SEZAD) has
awarded a contract to KEO International Consultants to provide
consultancy services. KEO’s role is to provide advisory services
to the Authority in the development of the Northern and Central
Industrial Zones — two massive parcels of real estate that
encompass a significant chunk of the SEZ. In addition to
carrying out planning, feasibility study, and design of these
industrial zones, KEO will also prepare the final detailed design
for the development of these areas. (Bloomberg)
 Gulf Hotels Group signs restaurant fit-out deal – Gulf Hotels
Group has signed an agreement with Almoayyed Interiors to
carry out the interior fit-out for a new Indian restaurant at the
Gulf Hotel Bahrain. The new 120-seat Indian restaurant is being
developed in partnership with leading Indian chef Vineet Bhatia,
who operates acclaimed restaurants in Europe and the Middle
East, including two Michelin starred restaurants in London and
Geneva. (GulfBase.com)
 BIBF signs deal with University of Bolton – Bahrain Institute
of Banking & Finance (BIBF) has signed a MoU with the
University of Bolton to develop an MBA in Islamic banking. As
per the MoU, BIBF will act as lead content provider for Islamic
finance subjects and will supervise all dissertations, while the
University of Bolton faculty will deliver the core MBA subjects.
Graduates of BIBF's Islamic finance programs will be eligible for
exemptions from some of the subjects, providing them with a
shortened pathway to obtain an MBA with a specialization in
Islamic finance. (GulfBase.com)
 ABG & WB to begin research on risk-management
challenges – Al Baraka Banking Group announced its
collaboration with the World Bank (WB) to begin a research
partnership. The partnership’s first initiative will be a study
examining the risk-management challenges facing Islamic
banks, with a particular focus on Musharaka and Mudaraba
under the profit-and-loss-sharing system. The preliminary
findings of the research are expected to be available in 1Q2015.
(GulfBase.com)
 VC Bank reports 84% increase in FY2014 net profit –
Venture Capital Bank BSC (VC Bank) reported a net profit of
$15mn for the year ended June 30, 2014, representing an 84%
increase over $8.1mn profit for the year ended June 30, 2013.
The bank reported total income of $23.7mn for the year
compared with total income of $15.3mn for the prior year ended
June 30, 2013. Net profit and total revenue for the final quarter
ended June 30, 2014 amounted to $9.7mn and $12.4mn
respectively, compared to $1mn and $4.3mn respectively for the
comparative quarter ended June 30, 2013. Total balance sheet
assets as of June 30, 2014 amounted to $249mn, indicating a
13% YoY growth. Total assets under management rose 8% to
$1.24bn as compared to $1.1bn as of June 30, 2013. The
bank’s capital adequacy ratio stands at a very robust 46.5%,
considerably higher than the minimum requirement of the
Central Bank of Bahrain (CBB) of 12%. (GulfBase.com)
 GFH repays $33mn debt in 2014; BHB announces increase
in GFH paid-up capital – Gulf Finance House (GFH) has repaid
$25mn to debt holders marking total debt principal payments of
$33mn so far in 2014. This sum represents more than 15% of
GFH’s total outstanding facilities. GFH’s outstanding facilities
stand at $169mn representing a sound leverage ratio of close to
0.28. Meanwhile, the Bahrain Bourse (BHB) announced that the
paid-up capital of Gulf Finance House (GFH) has been
increased due to the issuance of 129,452,537 shares, pursuant
to the approval from the EGM held on April 14, 2014, and this
will be effective August 6, 2014. The previous total outstanding
shares were 3,358,017,401 & the new outstanding shares are
3,487,469,938, whereas the previous total paid-up capital was
$1.033bn and the new total paid up capital is $1.073bn. (Bahrain
Bourse)

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: This publication has been prepared by QNB Financial Services SPC (“QNBFS”) a wholly-owned subsidiary of Qatar National Bank (“QNB”). QNBFS is regulated by the Qatar
Financial Markets Authority and the Qatar Exchange; QNB is regulated by the Qatar Central Bank. This publication expresses the views and opinions of QNBFS at a given time only. It is not an
offer, promotion or recommendation to buy or sell securities or other investments, nor is it intended to constitute legal, tax, accounting, or financial advice. We therefore strongly advise potential
investors to seek independent professional advice before making any investment decision. Although the information in this report has been obtained from sources that QNBFS believes to be
reliable, we have not independently verified such information and it may not be accurate or complete. While this publication has been prepared with the utmost degree of care by our analysts,
QNBFS does not make any representations or warranties as to the accuracy and completeness of the information it may contain, and declines any liability in that respect. QNBFS reserves the
right to amend the views and opinions expressed in this publication at any time. It may also express viewpoints or make investment decisions that differ significantly from, or even contradict, the
views and opinions included in this report.
COPYRIGHT: No part of this document may be reproduced without the explicit written permission of QNBFS.
Page 7 of 7
Rebased Performance Daily Index Performance
Source: Bloomberg Source: Bloomberg
Source: Bloomberg (* Market closed on 05 August 2014) Source: Bloomberg
80.0
90.0
100.0
110.0
120.0
130.0
140.0
150.0
160.0
170.0
180.0
190.0
200.0
210.0
Jul-10 Jul-11 Jul-12 Jul-13 Jul-14
QE Index S&P Pan Arab S&P GCC
0.4%
1.4%
0.3%
0.8%
0.3%
(0.4%)
(0.9%)
(1.6%)
(0.8%)
0.0%
0.8%
1.6%
SaudiArabia
Qatar
Kuwait
Bahrain
Oman
AbuDhabi
Dubai
Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D% WTD% YTD%
Gold/Ounce 1,288.82 0.0 (0.3) 6.9 DJ Industrial 16,429.47 (0.8) (0.4) (0.9)
Silver/Ounce 19.78 (1.9) (2.7) 1.6 S&P 500 1,920.21 (1.0) (0.3) 3.9
Crude Oil (Brent)/Barrel (FM
Future)
104.61 (0.8) (0.2) (5.6) NASDAQ 100 4,352.84 (0.7) 0.0 4.2
Natural Gas (Henry
Hub)/MMBtu
3.85 1.5 2.7 (11.4) STOXX 600 332.10 0.3 0.1 1.2
LPG Propane (Arab Gulf)/Ton 99.38 (0.4) (0.9) (21.4) DAX 9,189.74 0.4 (0.2) (3.8)
LPG Butane (Arab Gulf)/Ton 117.50 (0.6) (0.2) (13.4) FTSE 100 6,682.48 0.1 0.0 (1.0)
Euro 1.34 (0.3) (0.4) (2.7) CAC 40 4,232.88 0.4 0.7 (1.5)
Yen 102.60 0.0 (0.0) (2.6) Nikkei 15,320.31 (1.0) (1.3) (6.0)
GBP 1.69 0.1 0.4 2.0 MSCI EM 1,063.11 (0.6) 0.3 6.0
CHF 1.10 (0.3) (0.4) (1.8) SHANGHAI SE Composite 2,219.95 (0.2) 1.6 4.9
AUD 0.93 (0.3) (0.1) 4.4 HANG SENG 24,648.26 0.2 0.5 5.8
USD Index* 81.33 0.0 0.0 1.6 BSE SENSEX 25,908.01 0.7 1.7 22.4
RUB 36.04 0.6 0.7 9.6 Bovespa 56,202.10 (0.7) 0.5 9.1
BRL 0.44 (1.0) (1.1) 3.5 RTS 1,191.37 (1.7) (1.8) (17.4)
189.3
160.7
144.7

5 August Daily market report

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