The QSE Index declined 0.3% with losses in the Transportation and Consumer Goods & Services indices. Qatar Islamic Insurance Company and Qatar Oman Investment Company were the top losers. Al Khaleej Takaful Insurance Company gained 10.0% and was among the top gainers. Trading volume rose 4.3% compared to the previous day. Regionally, indices in Saudi Arabia and Dubai declined marginally while Abu Dhabi and Kuwait rose. Qatari shareholders were net sellers while non-Qatari shareholders were net buyers.

1. Page 1 of 8
QSE Intra-Day Movement
Qatar Commentary
The QSE Index declined 0.3% to close at 10,687.3. Losses were led by the
Transportation and Consumer Goods & Services indices, falling 1.2% and 0.7%,
respectively. Top losers were Qatar Islamic Insurance Company and Qatar Oman
Investment Company, falling 3.3% and 2.3%, respectively. Among the top gainers,
Al Khaleej Takaful Insurance Company gained 10.0%, while Ahli Bank was up 3.1%.
GCC Commentary
Saudi Arabia: The TASI Index fell marginally to close at 8,399.4. Losses were led by
the Food & Staples and Health Care. Indices, falling 0.7% and 0.6%, respectively.
Saudi Cable Co. declined 3.1%, while United Int. Transportation Co was down 2.4%.
Dubai: The DFM General Index declined 0.2% to close at 2,493.9. The Investment &
Fin. Services index fell 1.3%, while the Banks index declined 0.4%. Dar Al Takaful
fell 4.6% while Emaar Malls fell 3.0%.
Abu Dhabi: The ADX General Index rose marginally to close at 4,956.0. The Real
Estate index gained 1.1%, while the Insurance index rose 0.2%. Methaq Takaful Ins.
gained 11.5% while Sharjah Cement and Industrial Development was up 7.3%.
Kuwait: The Kuwait Main Market Index rose 0.2% to close at 4,815.3. The
Technology index gained 9.5%, while Financial Services index rose 0.7%. ACICO
industries Co. gained 9.8%, while Automated Systems Company was up 9.5%.
Oman: The MSM 30 Index rose 0.1% to close at 4,181.7. However, all the indices
ended in the red. Oman Telecommunication rose 2.9%, while Oman Fisheries was
up 1.9%.
Bahrain: The BHB Index gained 0.2% to close at 1,352.5. The Commercial Bank
Index gained 0.5% while the Services index gained 0.4%. Khaleeji Commercial Bank
rose 5.7%, while Bahrain Islamic Bank was up 5.4%.
QSE Top Gainers Close* 1D% Vol. ‘000 YTD%
Al Khaleej Takaful Insurance Co. 9.90 10.0 332.7 15.3
Ahli Bank 31.96 3.1 2.4 14.1
Qatar General Ins. & Reins. Co. 45.15 1.2 6.7 0.6
The Commercial Bank 42.25 0.8 148.6 7.3
Qatar Insurance Company 39.90 0.8 210.0 11.1
QSE Top Volume Trades Close* 1D% Vol. ‘000 YTD%
Qatar Aluminium Manufacturing 12.36 0.3 1,598.8 (7.4)
Qatar First Bank 4.09 (0.7) 1,242.5 0.2
Masraf Al Rayan 41.20 (1.4) 641.9 (1.2)
Investment Holding Group 5.18 (1.7) 380.4 5.9
Ezdan Holding Group 15.05 0.7 377.5 15.9
Market Indicators 22 Jan 19 21 Jan 19 %Chg.
Value Traded (QR mn) 222.6 252.7 (11.9)
Exch. Market Cap. (QR mn) 614,134.0 614,901.9 (0.1)
Volume (mn) 8.0 7.6 4.3
Number of Transactions 4,781 5,661 (15.5)
Companies Traded 44 44 0.0
Market Breadth 16:24 10:31 –
Market Indices Close 1D% WTD% YTD% TTM P/E
Total Return 18,829.80 (0.3) (0.9) 3.8 15.7
All Share Index 3,224.85 (0.2) (0.5) 4.7 16.2
Banks 3,910.70 (0.1) (0.2) 2.1 14.5
Industrials 3,414.39 (0.4) (1.4) 6.2 16.2
Transportation 2,173.72 (1.2) (3.6) 5.5 12.6
Real Estate 2,420.78 0.4 2.2 10.7 21.8
Insurance 3,243.74 0.8 (1.3) 7.8 19.3
Telecoms 1,009.28 (0.3) (0.9) 2.2 40.9
Consumer 7,099.97 (0.7) (2.0) 5.1 14.5
Al Rayan Islamic Index 4,066.08 (0.5) (0.9) 4.7 15.8
GCC Top Gainers
##
Exchange Close
#
1D% Vol. ‘000 YTD%
Dallah Healthcare Co. Saudi Arabia 65.70 3.0 203.8 16.9
Oman Telecom. Co. Oman 0.70 2.9 509.8 (11.2)
VIVA Kuwait Telecom Co. Kuwait 0.84 2.8 16.8 5.5
Abu Dhabi Comm. Bank Abu Dhabi 8.60 2.6 1,988.9 5.4
Saudi Telecom Co. Saudi Arabia 102.00 2.0 805.5 11.1
GCC Top Losers
##
Exchange Close
#
1D% Vol. ‘000 YTD%
Emaar Malls Dubai 1.60 (3.0) 4,138.5 (10.6)
Mobile Telecom. Co. Saudi Arabia 9.30 (1.9) 13,182.0 12.5
DP World Dubai 16.39 (1.8) 221.1 (4.2)
Middle East Healthcare Saudi Arabia 32.50 (1.7) 223.5 0.2
Qatar Gas Transport Co. Qatar 18.91 (1.6) 360.0 5.5
Source: Bloomberg (# in Local Currency) (## GCC Top gainers/losers derived from the S&P GCC
Composite Large Mid Cap Index)
QSE Top Losers Close* 1D% Vol. ‘000 YTD%
Qatar Islamic Insurance Company 55.11 (3.3) 6.0 2.6
Qatar Oman Investment 6.35 (2.3) 51.6 18.9
Qatari German Co for Med. Dev. 6.20 (2.1) 56.0 9.5
Investment Holding Group 5.18 (1.7) 380.4 5.9
Qatar Gas Transport Company 18.91 (1.6) 360.0 5.5
QSE Top Value Trades Close* 1D% Val. ‘000 YTD%
QNB Group 198.00 0.0 49,200.5 1.5
Masraf Al Rayan 41.20 (1.4) 26,474.0 (1.2)
Qatar Aluminium Manufacturing 12.36 0.3 19,794.2 (7.4)
Industries Qatar 146.40 (0.4) 13,703.5 9.6
Qatar Islamic Bank 158.00 0.0 13,111.3 3.9
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* 10,687.28 (0.3) (0.9) 3.8 3.8 60.98 168,702.6 15.7 1.6 4.1
Dubai 2,493.92 (0.2) (0.9) (1.4) (1.4) 21.48 91,895.6 7.5 0.9 7.3
Abu Dhabi 4,956.02 0.0 (0.6) 0.8 0.8 48.76 135,575.7 13.3 1.4 4.9
Saudi Arabia 8,399.40 (0.0) (0.6) 7.3 7.3 685.13 531,678.8 18.0 1.9 3.4
Kuwait 4,815.27 0.2 0.4 1.6 1.6 54.75 33,243.3 16.9 0.8 4.3
Oman 4,181.74 0.1 (1.3) (3.3) (3.3) 3.03 18,168.0 8.4 0.7 6.2
Bahrain 1,352.46 0.2 0.8 1.1 1.1 2.63 20,639.7 8.8 0.8 6.0
Source: Bloomberg, Qatar Stock Exchange, Tadawul, Muscat Securities Market and Dubai Financial Market (** TTM; * Value traded ($ mn) do not include special trades, if any)
10,640
10,660
10,680
10,700
10,720
10,740
9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00

2. Page 2 of 8
Qatar Market Commentary
 The QSE Index declined 0.3% to close at 10,687.3. The Transportation
and Consumer Goods & Services indices led the losses. The index fell on
the back of selling pressure from Qatari and GCC shareholders despite
buying support from non-Qatari shareholders.
 Qatar Islamic Insurance Company and Qatar Oman Investment
Company were the top losers, falling 3.3% and 2.3%, respectively.
Among the top gainers, Al Khaleej Takaful Insurance Company gained
10.0%, while Ahli Bank was up 3.1%.
 Volume of shares traded on Tuesday rose by 4.3% to 8mn from 7.6mn on
Monday. Further, as compared to the 30-day moving average of 7.3mn,
volume for the day was 9.5% higher. Qatar Aluminium Manufacturing
Company and Qatar First Bank were the most active stocks,
contributing 20.1% and 15.6% to the total volume, respectively.
Source: Qatar Stock Exchange (* as a % of traded value)
Global Economic Data and Earnings Calendar
Global Economic Data
Date Market Source Indicator Period Actual Consensus Previous
01/22 UK UK Office for National Statistics Jobless Claims Change December 20.8k – 24.8k
Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted)
Earnings Calendar
Tickers Company Name Date of reporting 4Q2018 results No. of days remaining Status
QNCD Qatar National Cement Company 23-Jan-19 0 Due
NLCS Alijarah Holding 24-Jan-19 1 Due
DHBK Doha Bank 27-Jan-19 4 Due
WDAM Widam Food Company 27-Jan-19 4 Due
QIIK Qatar International Islamic Bank 27-Jan-19 4 Due
IHGS Islamic Holding Group 28-Jan-19 5 Due
MCGS Medicare Group 30-Jan-19 7 Due
QIGD Qatari Investors Group 30-Jan-19 7 Due
QATI Qatar Insurance Company 3-Feb-19 11 Due
CBQK The Commercial Bank 4-Feb-19 12 Due
UDCD United Development Company 6-Feb-19 14 Due
QEWS Qatar Electricity & Water Company 10-Feb-19 18 Due
QIMD Qatar Industrial Manufacturing Company 10-Feb-19 18 Due
DOHI Doha Insurance Group 13-Feb-19 21 Due
ORDS Ooredoo 13-Feb-19 21 Due
Source: QSE
Overall Activity Buy %* Sell %* Net (QR)
Qatari Individuals 26.04% 51.78% (57,294,885.68)
Qatari Institutions 7.29% 14.32% (15,647,072.58)
Qatari 33.33% 66.10% (72,941,958.26)
GCC Individuals 0.49% 0.42% 146,945.74
GCC Institutions 2.14% 4.65% (5,582,255.76)
GCC 2.63% 5.07% (5,435,310.02)
Non-Qatari Individuals 9.23% 9.16% 147,079.80
Non-Qatari Institutions 54.81% 19.67% 78,230,188.48
Non-Qatari 64.04% 28.83% 78,377,268.28

3. Page 3 of 8
News
Qatar
 QNB Group recognized as most valuable banking brand in the
MEA – QNB Group was recognized as the most valuable banking
brand in the Middle East and Africa (MEA) once again with a
brand value worth $5.04bn, according to the annual report
prepared by Brand Finance and published by ‘The Banker’
magazine. QNB Group is the largest financial institution in the
MEA. QNB Group’s brand value grew to $5.04bn in 2018
compared to $4.2bn in the previous year, a 19% YoY increase,
defending the 61st place in the top 500 banking brands
worldwide. The group’s brand also continued to be market
dominant in the MEA amid an average regional brand value
increase of 9%. The group reaffirmed its ‘AA+’ brand strength
rating with a positive outlook, making it the highest rated
banking brand in Qatar. QNB Group’s Brand Strength Index
(BSI) continued to increase to 79 out of 100, driven by its strong
financial performance and growing international footprint. The
group’s brand continued to drive growth in Southeast Asia in
support of its vision to become a leading bank in the Middle
East, Africa, and Southeast Asia (MEASEA) by 2020. (Gulf-
Times.com)
 N-KOM welcomes the first FSRU at the Erhama Bin Jaber Al
Jalahma Shipyard – Nakilat-Keppel Offshore & Marine (N-KOM)
has recently received its first floating storage regasification
unit (FSRU) project at the Erhama Bin Jaber Al Jalahma
Shipyard. The FSRU owned by Excelerate Energy (USA) will
undergo dry-docking, maintenance and upgrades at the facility,
which is renowned for its expertise in handling gas carriers.
During its dry-docking, the FSRU will undergo several
modifications and retrofitting of new systems, including the
installation of a ballast water treatment system (BWTS). Till
date, N-KOM has completed six such BWTS installations for
various types of vessels such as LNG and LPG vessels as well as
very large crude carriers (VLCCs). (Qatar Tribune)
 QEWS, Siemens cooperate to develop local engineering talent –
Qatar Electricity and Water Company (QEWS) and Siemens will
work together to explore opportunities for the training of Qatari
national engineers as part of efforts to support the development
of local engineering talent. They will also together further
knowledge transfer and enhance the maintenance and
operational efficiency of QEWS' power plant assets and the
IPPs (independent power producers). As per the MoU, the two
organizations agreed to collaborate in support of Siemens
supplied technology at QEWS facilities, including gas turbines,
steam turbines, generators, ancillaries and controls. (Gulf-
Times.com)
 QIGD to hold its EGM on February 10, 2019 – Qatari Investors
Group’s (QIGD) board of directors are pleased to invite
shareholders to attend the Extraordinary General Assembly
meeting (EGM), which is to be held on February 10, 2019. In
case the quorum is not met, the second meeting will be held on
February 20, 2019. The agenda of the meetings is to amend the
Articles of Association of the company in respect to the
nominal value of the shares of the listed companies in
accordance with the decision of Qatar Financial Markets
Authority (QFMA) and authorize the board of directors to
process the necessary amendments before the competent
authorities. (QSE)
 Qatari banks' non-resident deposits jump 21.75% to
QR164.26bn in November 2018 – Non-resident deposits within
Qatar’s banking system witnessed a robust 21.75% YoY
expansion to QR164.26bn in November 2018, indicating the
strong confidence among international investors in the local
economy amidst the continuing economic and trade blockade.
However, total deposits were on the downswing due to the
decline in public and private sector deposits, according to the
Qatar Central Bank’s data for November. Various reports
including from the International Monetary Fund stated the
non-resident deposits, which initially declined (after the
embargo started in June 2017) but rebounded, indicating the
resiliency in the domestic macro economy. From QR199.19bn in
January 2017, non-resident deposits touched a low of
QR134.92bn in November 2017. Between June and November
2017, deposits had declined approximately QR36bn. However,
after November 2017, there was largely a steady accretion in
the non-resident deposits. Out of the total QR164.26bn non-
resident deposits, those with Qatari banks amounted to
QR162bn (about 99% of the total non-resident deposits) and
those with non-Qatari lenders were QR2.26bn (2%). Out of the
QR162bn non-resident deposits with Qatari banks, as much as
91%, or QR146.84bn, was from traditional banks and the
remaining QR15.16bn, or 9%, from Islamic banks. A large chunk
of non-resident deposits in the foreign banks were from non-
Arab entities, which contributed QR2.14bn in November 2018.
Otherwise, total deposits in Qatar’s commercial banks
registered a marginal 1.02% YoY decline to QR794.08bn in
November 2018. Total private sector deposits were down 0.45%
YoY to QR357.46bn and total public sector deposits shrank
11.65% to QR272.36bn in November previous year. (Gulf-
Times.com)
 HIA to handle over 53mn passengers a year by 2022 – Hamad
International Airport’s (HIA) phase two expansion plans which
were launched last year will enable the airport to accommodate
more than 53mn passengers annually by 2022. Phase two of the
expansion plan marks a key development in the airport’s
growth and in Qatar’s transportation and communications
sector, HIA stated. In addition to the immediate benefits of
increased space and capacities, the construction of the Airport
City will also provide significant future investment
opportunities including a free trade zone, office and business
complex, and hotels. A new cargo terminal will also be
constructed, increasing HIA’s capacity to 3mn tons per year and
accommodating the expected surge in freight traffic. The
developments in infrastructure play a key role in Qatar’s
preparations to host the 2022 FIFA World Cup, where the
country will witness a spike in tourists and visitors to
experience the global sporting event. Further, HIA is the second
best airport in the world for On-Time Performance (OTP)
according to OAG’s Punctuality League report. As per OAG, the
leading global provider of digital flight information, Qatar’s
state-of-the-art airport ranked second in the major airports
category (from 20 to 30mn departing seats per annum) with
85.41% of its flights operating on time. (Gulf-Times.com)

4. Page 4 of 8
 Additional residential units supply put pressure on prices –
With an addition of 1,265 new villas and apartments during
4Q2018, total housing stock in Qatar by the end of 2018 reached
at 290,000 units. The additional supply of residential units
continued to put downward pressure on prices of residential
properties as well as rents, the findings of a latest study
showed. The Valustrat Price Index (VPI)-Residential for
4Q2018, showed an overall 9.3% annual and 1% quarterly
decline in capital values. Villa and freehold apartment prices
saw marginal declines, QoQ, of 1.1% and 1.2%, respectively.
The correction in prices of real estate properties have created a
good opportunity for foreign investors and expatriates living in
Qatar to own a home in the country, host of the 2022 FIFA
games. Amongst freehold apartments, Lusail witnessed the
highest overall decline in values followed by West Bay Lagoon
and The Pearl. Villas coped well this quarter as only a few
locations experienced price declines. According to the report,
quarterly capital depreciation of between 2% to 5% was
observed in clusters of West Bay Lagoon, Al Waab, Fereej
Soudan, Umm Salal Mohammad and Al Kharaitiyat. Gross
yields for residential units averaged an overall 4.9%, adjusted
by 5.9% for apartments and 4.4% for villas. (Peninsula Qatar)
 Qatar Airways Cargo commences freighter operations to
Almaty – Qatar Airways Cargo has commenced freighter
operations to Almaty in Kazakhstan, its second new
destination so far this year, offering more than 200 tons of
capacity each week to the Kazakh city. (Gulf-Times.com)
 Ooredoo scores first international 5G call – Ooredoo Group
announced it has successfully tested the first International 5G
call in the Arab World. Ooredoo Qatar became the first operator
in the world to launch a live, commercially available 5G
network in May 2018 and has since worked tirelessly to ensure
it will be ready for use as soon as 5G devices become
commercially available. (Peninsula Qatar)
 Qatar Chamber, Pakistani Prime Minister discuss private sector
cooperation – Qatar Chamber expressed its keenness on further
bolstering the trade cooperation between Qatar and Pakistan;
and Qatari companies’ interests in deepening relations with
their counterparts in Pakistan. The Chamber shared its
thoughts during a meeting with the visiting Pakistan’s Prime
Minister, Imran Khan. The meeting reviewed ways of
enhancing trade cooperation and investment opportunities
available in both countries. It also discussed the possibility of
establishing joint projects between Qatari and Pakistani
businessmen, especially in the food and industry sectors.
During the meeting, Khan stressed the strength of both
countries relations, affirming his country’s keenness to bolster
cooperation ties with Qatar in all aspects. (Peninsula Qatar)
International
 US home sales hit three-year low, prices rise slowly – US home
sales tumbled to their lowest level in three years in December
and house price increases slowed sharply, suggesting a further
loss of momentum in the housing market. The weak report from
the National Association of Realtors (NAR) on Tuesday was the
latest indication of slowing economic growth. A survey last
Friday showed consumer sentiment dropped in January to its
lowest level since President Donald Trump was elected more
than two years ago. Existing home sales were now the weakest
since Trump was elected, said MUFG’s Chief Economist, Chris
Rupkey, “signaling the initial confidence boost from the new
ideas and new legislation is falling flat.” The NAR stated
existing home sales declined 6.4% to a seasonally adjusted
annual rate of 4.99mn units last month. That was the lowest
level since November 2015. Economists polled by Reuters had
forecasted existing home sales falling 1.0% to a rate of 5.25mn
units in December. Existing home sales, which make up about
90% of US home sales, plunged 10.3% from a year ago. For all of
2018, sales fell 3.1% to 5.34mn units, the weakest since 2015.
The housing market has been stymied by higher mortgage rates
as well as land and labor shortages, which have led to tight
inventory and more expensive homes. (Reuters)
 Increasing labor market boosts UK’s economy ahead of Brexit –
British workers saw their pay grow at the fastest pace in over
10 years and employment jumped much more than expected in
the three months to the end of November, contrasting with
other signs of an economic slowdown ahead of Brexit. Average
weekly earnings, including bonuses, rose by 3.4% on the year,
the Office for National Statistics (ONS) stated, the biggest rise
since mid-2008 and beating the average forecast of 3.3% in a
Reuters poll of economists. After adjusting for inflation, total
pay rose at the fastest pace in two years, but Britons are still
earning less in real terms than they were before the financial
crisis. ONS stated that the number of people in work increased
in the three months to November by the largest amount in
seven months, although it is unclear if businesses will maintain
hiring at this pace as uncertainty around Brexit mounts. With
little time left until Britain is due to leave the European Union
on March 29, there is no agreement in London on how it should
exit the world’s biggest trading bloc, and a growing chance of a
‘no-deal’ exit with no provision to soften the economic shock.
(Reuters)
 Eurozone’s banks see moderation in loan demand, tighter
standards – Eurozone’s banks expect to tighten credit standards
for business and housing loans in the first quarter and
experience a moderation in loan demand, the European Central
Bank (ECB) stated in a quarterly survey of the bloc’s top banks.
Buying EUR2.6tn ($3tn) of public and private bonds over the
past four years, the ECB has pushed borrowing costs to a record
low, hoping to stimulate borrowing and spending, all with the
ultimate aim of boosting inflation. However, its stimulus
scheme is now winding down, raising concerns that borrowing
costs could rise just as the Eurozone economy is going through
its biggest growth slump in years. In the last quarter of 2018,
credit standards - banks’ internal guidelines or loan approval
criteria - were broadly stable for mortgage and corporate
lending but tightened for consumer credit, the ECB added.
Competitive pressures contributed to an easing of credit
standards for loans to enterprises and housing loans, while
lower risk perceptions contributed to an easing of credit in
mortgage lending, the ECB stated. However, banks’ risk
tolerance contributed to a tightening of standards in the case of
business loans and the cost of funding had a broadly neutral
impact. (Reuters)
 German investor morale brightens, but view on current
condition grim – Morale among German investors improved
slightly in January, but their assessment of the economy’s

5. Page 5 of 8
current condition deteriorated to a four-year low, a survey
showed, sending mixed signals for the growth outlook of
Europe’s largest economy. Weaker growth in emerging
markets, trade disputes driven by US President, Donald
Trump’s ‘America First’ policies and the possibility that Britain
will leave the European Union without a deal in March are
putting the brakes on a nine-year expansion. The ZEW research
institute stated its monthly survey showed economic
sentiment among investors rose to -15.0 from -17.5 in
December. This compared with a consensus forecast of -18.4.
The indicator, nevertheless, remained well-below the long-term
average at 22.4 points, the institute stated. A separate gauge
measuring investors’ assessment of the economy’s current
conditions plunged to hit a four-year low at 27.6. Analysts had
expected the indicator to edge down to 43.5 from 45.3 in the
previous month. Wambach said investors had already
considerably lowered their expectations for economic growth in
the past months. (Reuters)
 BoJ to retain ultra-low rates, global slowdown raises fresh
policy challenge – The Bank of Japan (BoJ) is set to cut its
inflation forecasts and maintain its ultra-loose monetary policy,
as pressure on the economy mounts in the face of slowing
global demand, dealing another blow to its years-long efforts to
foster durable growth. The deteriorating global outlook also
means the BoJ is some way off from exiting a sweeping
stimulus program begun in 2013, which policymakers have
acknowledged will do more harm than good the longer it is
retained. Sources have told Reuters the central bank will
maintain its view that Japan’s economy, the world’s third
largest, will continue to expand at a modest pace. Yet, the rising
pressure on global growth from a trade war between the US and
China - Japan’s biggest trading partners - has many analysts
wary about the outlook. A Reuters poll of economists showed
those external factors have increased the chances of Japan
sliding into a recession this coming fiscal year starting in April,
making it ever so harder for the BoJ to reach its 2% inflation
target. Moreover, the International Monetary Fund (IMF)
trimmed its global growth forecasts and a survey showed
increasing pessimism among business chiefs amid the trade
tensions. (Reuters)
 Japan’s exports post worst fall in two years as trade war bites –
Japan’s exports in December fell the most in more than two
years, dragged by plummeting shipments to China and regional
markets as weak global demand and US-Sino trade frictions
take their toll on the trade-reliant economy. Exports in
December fell 3.8% from a year earlier, Ministry of Finance
(MoF) data showed, bigger than a 1.9% drop expected by
economists in a Reuters poll. It was the sharpest YoY decline
since October 2016. The trade data underscores rising external
pressure on the world’s third largest economy and comes hours
before the Bank of Japan delivers its policy decision at a two-
day meeting ending later in the day. The central bank is widely
expected to maintain its massive monetary stimulus, with
inflation stubbornly weak and global economic momentum
cooling. Soft exports will likely dent Japan’s economy over the
coming quarters, already feeling the strain from a slowdown in
China - a major market for its key manufacturers who ship
equipment and supplies used by Chinese manufacturers of
semiconductors, mobile phones and other goods. (Reuters)
Regional
 Gulf gets boost as billions pour in before bond index entry –
Government bonds issued by Saudi Arabia and four other Gulf
states are outperforming debt from other regions, on
expectations their inclusion in JPMorgan’s bond indexes will
pull in up to $40bn in foreign investment. JPMorgan told
investors in September that Saudi Arabia, Qatar, the UAE,
Bahrain and Kuwait will join its emerging-market government
bond indexes this year, in phases starting January 31 and
running to September 30. The indexes are performance
benchmarks for emerging-market debt; membership can help a
country sell bonds and cut borrowing costs. Fund managers
estimated the index inclusion will generate $30bn to $40bn by
September. “We estimate roughly $30bn to 35bn would be the
total inflow by September 2019. However, the majority of that
(more than half) would be active money that has already come
in,” Director of fixed income at Emirates NBD Asset
Management, Parth Kikani said. More than $15bn in new
money has already been invested in GCC sovereign debt before
the index entry, he said. GCC governments have become some
of the biggest debt issuers globally over the past few years,
tapping international capital markets to plug budget deficits
caused by a slump in oil prices. (Reuters)
 Islamic trade finance still ‘under-addressed opportunity’ –
Among the core opportunities seen for the Islamic finance
industry in the near future, there remains one segment that
repeatedly appears in studies and forecasts: Islamic trade
finance. A new analysis, the ‘State of the Global Islamic
Economy Report 2018/19’, the latest edition of the annual
working paper on the Islamic economy produced by Thomson
Reuters and US-based research firm DinarStandard, lists
Islamic trade finance once more as one of the under-addressed
opportunities in the industry. Given that global trade is a
$12.3tn-industry, the report suggested that there was a huge
potential for a variety of trade financing options which go
beyond currently used Islamic trade finance structures mainly
based on murabaha (sales contract), ijarah (leasing agreement),
diminishing musharakah (joint ownership) and wakalah
(agency contract). (Gulf-Times.com)
 IMF raises Saudi Arabia’s economic growth forecast for 2020 –
The International Monetary Fund (IMF) raised its growth
forecast for Saudi Arabia in 2020, although it stated that the
Kingdom’s economy will expand slower than expected this
year. In its World Economic Outlook update for January, the
IMF raised its growth forecast for the Kingdom to 2.1%, up 0.2
percentage points from a previous projection. However, the IMF
has lowered its forecast for this year to just 1.8%, down from
the 2.4% it predicted in October, and is pessimistic about oil
prices over the next two years. (Zawya)
 Saudi Arabia sells SR5.37bn Sukuk in monthly issue – Saudi
Arabia's Finance Ministry issued SR5.37bn in domestic Sukuk,
under its monthly issuance program, the Saudi Arabian state
news agency stated. It has also issued SR1.725bn worth of
Sukuk by re-opening a previous debt sale originally made in
September last year, it stated. (Zawya)
 Saudi Arabia’s December consumer price index accelerates
2.2% YoY – Saudi Arabia's annual inflation rate accelerated at a
slower pace of 2.2% in December from 2.8% in November,

6. Page 6 of 8
official data showed. On a MoM basis, inflation rate fell 0.3% in
December. (Zawya)
 Saudi Aramco eyes multi-billion-Dollar US gas acquisitions –
Saudi Aramco is looking to acquire natural gas assets in the US
and is willing to spend billions of Dollars there as it aims to
become a global gas player, the company’s CEO, Amin Nasser
said. He told Reuters that the company wants to increase its US
investments. It already owns Motiva, the biggest US oil
refinery. “We have agreed to bring an additional $10bn in the
Motiva refining complex. We do have appetite for additional
investments in the US. Saudi Aramco’s international gas team
has been given an open platform to look at gas acquisitions
along the whole supply chain. They have been given significant
financial firepower in the billions of Dollars,” he added. Saudi
Aramco’s gas expansion strategy needs $150bn of investment
over the next decade as the company plans to increase output
and later become a gas exporter, he said in November. The firm
plans to boost its gas production to 23bn standard cubic feet
(scf) per day over the next decade, from 14bn scf now. (Reuters)
 Bloomberg: Saudi Aramco talking to credit rating agencies
before bond deal – Saudi Aramco is talking to credit rating
agencies ahead of its landmark bond deal, the CEO of Saudi
Aramco, Amin Naser told Bloomberg television. He also said
that a decision would be made soon about the size of the deal.
(Reuters)
 Saudi Arabia eyes billions of Dollars in entertainment
investments – Saudi Arabia stated that it expects billions of
Dollars to be pumped into a nascent state-backed
entertainment sector and is eyeing dozens of Western acts,
including an exhibition NBA basketball game and a Spanish-
style running of the bulls. The Kingdom is trying to shake off its
ultra-conservative image in a drive to keep tourist Dollars at
home, lure foreign visitors, create jobs for young Saudi
Arabians and improve the quality of life in a country where
cinemas and public concerts were banned until recently.
(Reuters)
 UAE's MBF, Turkey's Bogazici will set up tech investment fund
– UAE's MBF and Turkey's Bogazici will set up a tech
investment fund Venture fund, and the size will be of $200mn.
The fund will invest in Eastern Europe, Middle East and North
Africa. The fund is interested in assets in risk management,
crypto currencies and healthcare technologies. The cooperation
protocol has been signed by Sharjah’s Sheikh, Ahmed Bin
Sultan Al Qasimi and Bogazici Ventures’ Chairman, Baris
Ozistek. (Bloomberg)
 DP World says US-China spat is slowing short-term
investments – Global ports operator DP World Ltd. stated that
the US-China trade war is weighing on its ability to invest as
banks become more cautious in making decisions on lending.
While the infrastructure sector has not been affected as much
as some other industries, ripple effects from the spat are
impacting short-term decisions, CEO, Sultan Ahmed bin
Sulayem said. Dubai-based harbor operator is still seeing
growth in many key markets, he said. Technological challenges
are the most pressing concern, both in terms of the impact on
shops that sell goods shipped around the world and on the
supply chain itself, with a risk that costly innovations could
become obsolete tomorrow, he said. Investment will be limited
to the most stable markets with strong governance, he added,
with DP World still smarting from having its stake in a port in
Djibouti nationalized by the government. That move has led
banks to increase requirements for collateral and loan
guarantees, he said, adding that the company will pursue
settlements with anyone infringing on its investments.
(Bloomberg)
 Alwaleed's Kingdom Holding backs Uber merger talks with
Careem – Kingdom Holding Co., one of Careem Networks FZ’s
biggest backers, supports a potential merger between the
Middle East ride-hailing firm and Uber Technologies Inc. (Uber),
according to the Head of Prince Alwaleed Bin Talal’s
investment firm. “We don’t interfere nor are we party to the
discussions, and if it ever happens I think we are supportive of
it yes,” CEO, Talal Bin Ibrahim Al Maiman said. Uber is in talks
to acquire Careem to help the ride-hailing giant expand in the
Middle East in a deal that could value the Dubai-based firm at
$2bn to $2.5bn, sources said. Saudi Arabian billionaire Alwaleed
joined a $500mn fundraising round by Careem in 2017 and
invested again in October. Kingdom Holding Co. also has a seat
on the company’s board. (Bloomberg)
 Masdar Clean Energy eyes stake in Hero Future Energies – Abu
Dhabi’s Masdar Clean Energy is in exclusive talks to acquire
30%-35% stake in Hero Future Energies, Economic Times (ET)
reported. Hero Future Energies hopes to raise $300mn to
$350mn from the stake sale. JP Morgan is advising the company
on stake sale. (Bloomberg)
 Dana Gas to invest $5bn in Egypt in coming years – Dana Gas
has invested around $2bn in Egypt since 2007 and plans to
increase investments by another $5bn in the coming years,
Dana Gas’ CEO, Patrick Allman-Ward said. (Bloomberg)
 Kuwait Finance House, Ahli United Bank to consider merger
reports this week – Kuwait Finance House and Bahrain-based
Ahli United Bank’s boards will meet this week to consider
valuation reports on a potential merger, and a deal that would
create the Gulf’s sixth-biggest lender with $92bn in assets. The
boards will meet on January 24, 2019 to consider the studies by
HSBC Holdings and Credit Suisse Group, the lenders stated.
Kuwait Finance House stated that its meeting will take place
after trading hours and will also consider proposed exchange
share ratios. Kuwait Finance House and Ahli United Bank in
July stated that they had started renewed discussions for a
potential merger. Initial talks between the banks faltered over
price, sources said. (Bloomberg)
 Oman sells OMR104mn 91-day bills at a yield of 2.507% – Oman
sold OMR104mn of bills due on April 24, 2019 on January 21,
2019. The bills were sold at a price of 99.379, having a yield of
2.507% and will settle on January 23, 2019. (Bloomberg)
 Bahrain got first funds from Gulf aid last year – Bahrain has
received the first installment of a $10bn aid package pledged by
its Gulf allies last year, its central bank’s Governor, Rasheed
Mohammed Al Maraj said. “This has been within the program
we have agreed. The first payment was last year and I think
this year this will continue,” he said. He did not disclose the size
of the first installment. Bahrain was expected to receive $2bn
late last year, officials told Reuters, as part of a $10bn aid
package that Saudi Arabia, Kuwait and the UAE pledged to
avoid the risk of a debt crisis in the island Kingdom. (Reuters)

7. Page 7 of 8
 Bahrain sells BHD100mn 364-day bills; bid-cover at 2.03x –
Bahrain sold BHD100mn of bills due on January 23, 2020.
Investors offered to buy 2.03 times the amount of securities
sold. The bills were sold at a price of 95.299, having a yield of
4.88% and will settle on January 24, 2019. (Bloomberg)

8. Contacts
Saugata Sarkar, CFA, CAIA Shahan Keushgerian Zaid al-Nafoosi, CMT, CFTe
Head of Research Senior Research Analyst Senior Research Analyst
Tel: (+974) 4476 6534 Tel: (+974) 4476 6509 Tel: (+974) 4476 6535
saugata.sarkar@qnbfs.com.qa shahan.keushgerian@qnbfs.com.qa zaid.alnafoosi@qnbfs.com.qa
QNB Financial Services Co. W.L.L.
Contact Center: (+974) 4476 6666
PO Box 24025
Doha, Qatar
Disclaimer and Copyright Notice: This publication has been prepared by QNB Financial Services Co. W.L.L. (“QNBFS”) a wholly-owned subsidiary of Qatar National Bank (Q.P.S.C.). QNBFS is
regulated by the Qatar Financial Markets Authority and the Qatar Exchange. Qatar National Bank (Q.P.S.C.) 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
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Page 8 of 8
Rebased Performance Daily Index Performance
Source: Bloomberg Source: Bloomberg
Source: Bloomberg Source: Bloomberg (*$ adjusted returns)
45.0
70.0
95.0
120.0
Dec-14 Dec-15 Dec-16 Dec-17 Dec-18
QSE Index S&P Pan Arab S&P GCC
(0.0%)
(0.3%)
0.2% 0.2%
0.1% 0.0%
(0.2%)
(0.5%)
0.0%
0.5%
SaudiArabia
Qatar
Kuwait
Bahrain
Oman
AbuDhabi
Dubai
Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D%* WTD%* YTD%*
Gold/Ounce 1,285.27 0.7 0.3 0.2 MSCI World Index 1,978.83 (1.1) (1.1) 5.0
Silver/Ounce 15.34 0.5 (0.0) (1.0) DJ Industrial 24,404.48 (1.2) (1.2) 4.6
Crude Oil (Brent)/Barrel (FM Future) 61.50 (2.0) (1.9) 14.3 S&P 500 2,632.90 (1.4) (1.4) 5.0
Crude Oil (WTI)/Barrel (FM Future) 52.57 (2.3) (2.3) 15.8 NASDAQ 100 7,020.36 (1.9) (1.9) 5.8
Natural Gas (Henry Hub)/MMBtu 3.16 (7.9) (7.9) (2.8) STOXX 600 355.09 (0.3) (0.5) 4.4
LPG Propane (Arab Gulf)/Ton 68.00 (1.1) (1.1) 6.3 DAX 11,090.11 (0.4) (0.9) 4.4
LPG Butane (Arab Gulf)/Ton 68.88 1.8 1.8 (0.9) FTSE 100 6,901.39 (0.5) (0.4) 4.3
Euro 1.14 (0.0) (0.0) (0.9) CAC 40 4,847.53 (0.4) (0.5) 1.7
Yen 109.37 (0.3) (0.4) (0.3) Nikkei 20,622.91 (0.2) 0.3 4.1
GBP 1.30 0.5 0.6 1.6 MSCI EM 1,010.63 (0.8) (0.7) 4.7
CHF 1.00 (0.0) (0.2) (1.6) SHANGHAI SE Composite 2,579.70 (1.3) (1.1) 4.5
AUD 0.71 (0.5) (0.6) 1.1 HANG SENG 27,005.45 (0.7) (0.3) 4.3
USD Index 96.30 (0.0) (0.0) 0.1 BSE SENSEX 36,444.64 (0.4) 0.2 (1.1)
RUB 66.53 0.2 0.4 (4.6) Bovespa 95,103.38 (1.5) (1.4) 10.8
BRL 0.26 (1.3) (1.3) 2.0 RTS 1,169.79 (0.1) (0.6) 9.5
87.5
83.0
79.2