The QSE Index rose 0.3% to close at 10,704.7. Gains were led by the Real Estate and Industrials indices, gaining 2.7% and 0.5%, respectively.

1. Page 1 of 7
QSE Intra-Day Movement
Qatar Commentary
The QSE Index rose 0.3% to close at 10,704.7. Gains were led by the Real Estate and
Industrials indices, gaining 2.7% and 0.5%, respectively. Top gainers were Ahli Bank
and Zad Holding Company, rising 6.9% and 4.9%, respectively. Among the top losers,
Widam Food Company fell 10.0%, while Qatar Cinema & Film Distribution Company
was down 9.8%.
GCC Commentary
Saudi Arabia: The TASI Index rose 1.3% to close at 8,623.9. Gains were led by the
Utilities and Capital Goods indices, rising 4.5% and 2.6%, respectively. Saudi
Fisheries Co. rose 10.0%, while Saudi Steel Pipe Co. was up 9.9%.
Dubai: The DFM Index gained 1.2% to close at 2,570.9. The Consumer Staples and
Disc. index rose 2.8%, while the Invest. & Fin. Services index gained 1.6%.
Almadina for Fin. and Inv. Co. rose 6.4%, while Damac Properties was up 5.8%.
Abu Dhabi: The ADX benchmark index rose 0.6% to close at 5,051.1. The Consumer
Staples index gained 2.7%, while the Insurance index rose 1.5%. Arkan Building
Materials Company gained 11.6%, while Al Qudra Holding was up 10.3%.
Kuwait: The KSE Index rose marginally to close at 4,783.6. The Financial Services
index gained 0.4%, while the Insurance index rose 0.2%. Credit Rating & Collection
gained 10.0%, while Burgan Company for Well Drilling Trading. was up 9.0%.
Oman: The MSM Index fell 0.2% to close at 4,159.9. Losses were led by the
Industrial and Financial indices, falling 0.2% and 0.1%, respectively. Gulf Invest
Services Holding fell 3.5%, while Oman Flour Mills was down 2.6%.
Bahrain: The BHB Index fell 0.8% to close at 1,379.3. The Commercial Bank index
declined 2.0%, while the other indices remained flat or ended in the green. Ahli
United Bank declined 4.5%, while Seef Properties was down 0.9%.
QSE Top Gainers Close* 1D% Vol. ‘000 YTD%
Ahli Bank 31.00 6.9 28.9 10.7
Zad Holding Company 124.99 4.9 0.0 20.2
Ezdan Holding Group 15.30 3.4 485.4 17.9
Qatar Oman Investment Company 6.09 3.2 5.4 14.0
Qatari German Co for Med. Devices 6.14 3.2 17.5 8.5
QSE Top Volume Trades Close* 1D% Vol. ‘000 YTD%
United Development Company 16.63 3.2 1,943.0 12.7
Qatar Aluminium Manufacturing 12.10 (0.4) 1,231.5 (9.4)
Doha Bank 20.68 (6.0) 1,041.8 (6.8)
Qatar First Bank 4.11 (0.5) 909.7 0.7
Qatar Gas Transport Company Ltd. 18.95 0.6 820.5 5.7
Market Indicators 28 Jan 19 27 Jan 19 %Chg.
Value Traded (QR mn) 303.4 164.4 84.5
Exch. Market Cap. (QR mn) 615,686.5 612,655.5 0.5
Volume (mn) 10.3 5.5 87.0
Number of Transactions 6,910 3,965 74.3
Companies Traded 45 43 4.7
Market Breadth 19:21 15:21 –
Market Indices Close 1D% WTD% YTD% TTM P/E
Total Return 18,860.55 0.3 (0.1) 3.9 15.6
All Share Index 3,236.17 0.5 0.1 5.1 16.2
Banks 3,901.18 0.1 (0.1) 1.8 14.3
Industrials 3,431.25 0.5 (0.3) 6.7 16.2
Transportation 2,191.20 0.2 0.3 6.4 12.7
Real Estate 2,458.97 2.7 1.4 12.4 22.1
Insurance 3,262.27 (0.2) (0.2) 8.4 19.4
Telecoms 1,010.34 0.1 0.2 2.3 41.0
Consumer 7,161.13 (0.6) (0.7) 6.0 14.6
Al Rayan Islamic Index 4,065.58 0.5 0.1 4.7 15.8
GCC Top Gainers
##
Exchange Close
#
1D% Vol. ‘000 YTD%
DAMAC Properties Dubai 1.28 5.8 10,665.0 (15.2)
Southern Prov. Cement Saudi Arabia 43.80 5.0 493.9 18.9
Saudi Electricity Co. Saudi Arabia 16.90 4.7 7,234.3 11.6
Saudi Cement Co. Saudi Arabia 56.90 4.6 307.2 17.2
Riyad Bank Saudi Arabia 22.40 4.2 2,565.5 13.0
GCC Top Losers
##
Exchange Close
#
1D% Vol. ‘000 YTD%
Ahli United Bank Bahrain 0.75 (4.5) 2,298.0 9.5
Mobile Telecom. Co. Saudi Arabia 9.45 (4.4) 13,902.2 14.3
Kuwait Finance House Kuwait 0.59 (1.8) 23,140.1 (3.1)
Co. for Cooperative Ins. Saudi Arabia 59.00 (1.3) 182.7 (2.2)
Etihad Etisalat Co. Saudi Arabia 17.98 (1.3) 3,498.6 8.4
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%
Widam Food Company 67.50 (10.0) 137.4 (3.6)
Qatar Cinema & Film Distribution 15.81 (9.8) 1.0 (16.9)
Doha Bank 20.68 (6.0) 1,041.8 (6.8)
Islamic Holding Group 20.02 (4.7) 34.7 (8.4)
Mannai Corporation 56.06 (3.2) 0.5 2.0
QSE Top Value Trades Close* 1D% Val. ‘000 YTD%
QNB Group 198.50 0.0 64,087.4 1.8
United Development Company 16.63 3.2 31,772.2 12.7
Doha Bank 20.68 (6.0) 21,166.0 (6.8)
Qatar Fuel Company 177.70 0.3 20,032.4 7.1
Industries Qatar 145.90 0.6 19,192.7 9.2
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* 10,704.73 0.3 (0.1) 3.9 3.9 83.09 169,129.1 15.6 1.6 4.1
Dubai 2,570.94 1.2 2.3 1.6 1.6 65.75 93,598.1 7.7 0.9 5.4
Abu Dhabi 5,051.07 0.6 0.6 2.8 2.8 57.11 138,073.8 13.6 1.5 4.8
Saudi Arabia 8,623.93 1.3 2.2 10.2 10.2 1,124.28 543,694.8 18.6 1.9 3.3
Kuwait 4,783.58 0.0 0.0 1.0 1.0 122.29 33,053.8 16.8 0.8 4.3
Oman 4,159.94 (0.2) (0.5) (3.8) (3.8) 3.49 18,157.7 8.3 0.7 6.2
Bahrain 1,379.27 (0.8) 0.4 3.1 3.1 5.47 21,076.6 8.8 0.9 5.9
Source: Bloomberg, Qatar Stock Exchange, Tadawul, Muscat Securities Market and Dubai Financial Market (** TTM; * Value traded ($ mn) do not include special trades, if any)
10,600
10,620
10,640
10,660
10,680
10,700
10,720
9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00

2. Page 2 of 7
Qatar Market Commentary
 The QSE Index rose 0.3% to close at 10,704.7. The Real Estate and
Industrials indices led the gains. The index rose on the back of buying
support from GCC and non-Qatari shareholders despite selling pressure
from Qatari shareholders.
 Ahli Bank and Zad Holding Company were the top gainers, rising 6.9%
and 4.9%, respectively. Among the top losers, Widam Food Company
fell 10.0%, while Qatar Cinema & Film Distribution Company was down
9.8%.
 Volume of shares traded on Monday rose by 87% to 10.3mn from 5.5mn
on Sunday. However, as compared to the 30-day moving average of
11.9mn, volume for the day was 13.0% lower. United Development
Company and Qatar Aluminium Manufacturing Company were the most
active stocks, contributing 18.8% and 11.9% 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
01/28 Japan Bank of Japan PPI Services YoY December 1.10% 1.20% 1.20%
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
MCGS Medicare Group 30-Jan-19 1 Due
QIGD Qatari Investors Group 30-Jan-19 1 Due
QATI Qatar Insurance Company 3-Feb-19 5 Due
CBQK The Commercial Bank 4-Feb-19 6 Due
UDCD United Development Company 6-Feb-19 8 Due
QISI The Group Islamic Insurance Company 10-Feb-19 12 Due
QEWS Qatar Electricity & Water Company 10-Feb-19 12 Due
QIMD Qatar Industrial Manufacturing Company 10-Feb-19 12 Due
IQCD Industries Qatar 11-Feb-19 13 Due
DOHI Doha Insurance Group 13-Feb-19 15 Due
ORDS Ooredoo 13-Feb-19 15 Due
QOIS Qatar Oman Investment Company 20-Feb-19 22 Due
Source: QSE
News
Qatar
 IHGS reports net profit of QR0.8mn in 4Q2018 – Islamic Holding
Group (IHGS) reported net profit of QR0.8mn in 4Q2018 as
compared to net loss of QR0.7mn in 4Q2017 and net loss of
QR0.3mn in 3Q2018. The company's net brokerage and
commission income came in at QR1.0mn in 4Q2018, which
represents an increase of 75.4% YoY (+65.2% QoQ). Earnings
per share amounted to QR0.07 in FY2018 as compared to loss
per share of QR0.09 in FY2017. The company’s board of
directors proposed no dividend for FY2018. (QSE)
 QOIS’ board meets to discuss the financial statements ended
December 31, 2018 on February 20, 2019 – Qatar Oman
Investment Company (QOIS) announced that its board of
directors will meet on February 20, 2019 to discuss and adopt
financial statements of the company for the period ended
December 31, 2018. (QSE)
 The Commercial Bank hires ANZ for Kangaroo bond sale – The
Commercial Bank hired Australia & New Zealand Banking
Group Limited (ANZ) to arrange its first sale of Australian
Dollar bonds, according to sources. Qatar’s third-largest lender
by assets could sell the so-called Kangaroo bonds at the end of
the first quarter or in the second quarter. A potential offering
will depend on market conditions, sources said. The bank could
raise more than $216mn by selling bonds with a five-year tenor.
Kangaroo bonds are debt sold by foreign companies in
Australian Dollars. (Bloomberg)
 QNB Group: QCB’s foreign exchange reserves rose 2.2% to
$48.4bn in November 2018 – Qatar Central Bank’s (QCB) foreign
exchange reserves totaled $48.4bn in November 2018, a 2.2%
increase MoM, according to QNB Group’s recent report. QNB
Group stated that this equates to 8.7 months of import cover.
The country’s crude oil production marginally ticked down to
599,000 barrels per day (bpd) in November 2018 from
Overall Activity Buy %* Sell %* Net (QR)
Qatari Individuals 21.23% 54.47% (100,819,718.09)
Qatari Institutions 15.11% 11.48% 11,005,977.17
Qatari 36.34% 65.95% (89,813,740.92)
GCC Individuals 0.70% 1.30% (1,804,274.31)
GCC Institutions 5.11% 1.48% 11,010,842.68
GCC 5.81% 2.78% 9,206,568.37
Non-Qatari Individuals 7.69% 10.44% (8,361,106.84)
Non-Qatari Institutions 50.16% 20.83% 88,968,279.39
Non-Qatari 57.85% 31.27% 80,607,172.55

3. Page 3 of 7
609,000bpd in October 2018, QNB Group stated in its latest
‘Qatar Monthly Monitor’. Brent crude prices dropped to average
$57.7 for a barrel in December 2018. QNB Group’s data showed
Qatar’s trade balance was up 6.6% YoY in December. The fiscal
account surplus widened to 3.5% of GDP in the second quarter
due to higher oil prices. The current account surplus widened
further in the third quarter of 2018. December saw an increase
in local banks’ assets and credit, while deposit growth fell
marginally. Banks’ asset growth was 4.6% YoY in November
2018, while credit growth stood at 2.1%. Private sector and
public sector and non-resident deposits grew 0.5%, 3.5% and
2.9% respectively MoM in December. Qatar’s sovereign 5-year
CDS spreads remained stable at around 75 bps (0.75%), while
QIBOR and LIBOR three-month interest rates got stabilized
after converging. Broad money supply (M2) declined 4.6% YoY
in November, the report showed. (Gulf-Times.com)
 Qatar’s Energy Minister says plans to order 60 new LNG carriers
– South Korea's presidential office stated that Qatar's Energy
Minister, Saad Sherida Al-Kaabi outlined plans during a
bilateral summit to order 60 new Liquefied Natural Gas (LNG)
carriers. The Minister, who is also serves as Deputy Chairman of
Qatar Petroleum, said he expects cooperation with experienced
Korean shipbuilders on constructing the LNG carriers, according
to a statement issued by South Korea's presidential office.
Financial details of the plan were not disclosed. South Korea's
Daewoo Shipbuilding & Marine Engineering Company’s CEO
said most of the LNG carriers owned by Qatar were built by
Korea's top three shipbuilders. He said he hoped South Korea
would be considered a primary option for building new LNG
carriers for Qatar. (Zawya)
 Ashghal on track to spend more than QR45bn on projects in the
next five years – Aligned with Qatar's efforts to support private
sector growth, the Public Works Authority (Ashghal) has
provided more than QR1.8bn worth of contracts to local
companies in the past 18 to 20 months, according to an Ashghal
official, who said the authority will be investing more than
QR45bn in projects in the next five years. Engineer Ahmed Ali
al-Ansari, Technical Office Manager at Ashghal, made the
statement during the announcement of Qatar Development
Bank’s ‘Government Procurement & Contracting Conference &
Exhibition’ (Moushtarayat 2019) slated from March 31 to April
2 in Doha. He said ‘Moushtarayat 2019,’ now on its fourth
edition, is a chance for local industries and companies,
suppliers, contractors, and manufacturers to identify the
business opportunities available in the market. During the
event, Al-Ansari said, Ashghal will announce all the details
needed to guide businesses that are interested in participating
in many of Ashghal’s projects, and to assist them in how to
engage with the authority. (Gulf-Times.com)
 National companies secure QR71bn in government contracts
during Moushtarayat 2018 – National companies secured more
than QR71bn worth of government contracts during the third
edition of the ‘Government Procurement & Contracting
Conference & Exhibition’ (Moushtarayat) organized by Qatar
Development Bank (QDB) in Doha last year, according to a
Ministry of Finance (MoF) official. Abdulaziz Zeid Rashid Al-
Taleb, Director of MoF’s Government Procurement Regulatory
Department, said 67% of the contracts were distributed by the
government among local producers, contractors, service
providers, and suppliers. (Gulf-Times.com)
 Moushtarayat 2019 to provide SMEs greater access to tenders –
With an estimated cumulative value of QR6.5bn worth of job
opportunities created for small and medium-sized enterprises
(SMEs) in its previous edition, Qatar Development Bank’s
(QDB) ‘Moushtarayat 2019’ aims to provide SMEs with greater
accessibility to government procurement by linking them with
major buyers, a QDB official has said. “The exhibition is an
important platform for SMEs to communicate with government
agencies and to identify tenders and contracts, thus opening
the horizons of cooperation with government agencies and
winning their tenders. QDB’s efforts will help enhance SMEs’
market position both technically and financially by assisting to
localize supply chains. The active participation of
entrepreneurs and SMEs in the previous three editions of
Moushtarayat underscored the success of the event and
demonstrated how deeply they valued new public sector
opportunities,” QDB’s Business Localization Department
Manager, Mohamed Mubarak Al-Mansouri said. He said
‘Moushtarayat 2019’ is the latest in a series of integrated
programs and initiatives offered by QDB to support SMEs. (Gulf-
Times.com)
 Qatar announces QR4bn pilot PPP Program – Qatar unveiled a
major Public Private Partnership (PPP) pilot project before
potential investors, involving the construction of 45 schools in
the public sector with an estimated capital expenditure of
QR4bn. Divided into six packages, the projects are to be
completed within next five years. The project delivery dates
range from 2021 to 2023. The private sector will finance, build
and maintain the schools and government will run the
educational facilities. Ministry of Education and Higher
Education (MoEHE), Ministry of Finance, Public Works
Authority (Ashghal) and the Technical Committee are the key
stakeholders of the PPP Program. MoEHE will be in charge of
operations of the schools and the contract management,
whereas the Ministry of Finance will be in charge of payment
guarantee and the PPP policy and guidance. (Peninsula Qatar)
 Deutsche Bank said to get Qatar’s pledge as merger talks take
hold – Deutsche Bank AG won a commitment for new
investment from Qatar as the troubled German lender moves
toward a potential merger with Commerzbank AG. The
investment is likely to be made through the Qatar Investment
Authority, the country’s sovereign wealth fund, according to
sources. (Bloomberg)
 Shura discuses draft law on concession to WOQOD – The Shura
Council, at its weekly meeting chaired by Speaker HE Ahmed
Bin Abdullah Bin Zaidal Mahmoud, discussed a draft law on the
concession granted to Qatar Fuel Company (WOQOD) for the
marketing, sale, and transportation of gas and petroleum
products. Subsequently, the council referred the draft law to the
Economic and Financial Affairs Committee for consideration
and report thereon to the council. The committee chaired by
Rapporteur Ali Bin Abdal Latifal Misnad reviewed the draft law
and decided to continue the review in its next meeting. (Qatar
Tribune)
 Vodafone Qatar on the cusp of 5G revolution, after QR8bn and a
decade of innovation – Ten years ago, Vodafone Qatar was a

4. Page 4 of 7
fledgling telecom firm that was building up a network from
scratch. Today, it’s at the cusp of a 5G revolution that will
enable people and businesses enjoy ultra-fast internet in Qatar
on a large scale. “It is exciting to imagine what the advances in
the technologies of tomorrow will be capable of,” Vodafone
Qatar’s CEO, Sheikh Hamad Abdulla Jassim Al Thani said.
Vodafone Qatar is primed to be at the forefront of the digital
revolution taking shape in Qatar, having already invested
QR8bn in attendant infrastructure, research and technology
over the past decade, Sheikh Hamad said. While around 50% of
the investment went into developing technologies related to
mobility, the CEO said, at least $1bn was invested in providing
innovative offerings in the past two years. Further at the
forefront of these innovations is Vodafone Qatar’s preparation
to launch 5G on a large scale in Qatar. (Qatar Tribune)
 MPHC’s board meets to discuss the financial statements ended
December 31, 2018 on February 14, 2019 – Mesaieed
Petrochemical Holding Company (MPHC) announced that its
board of directors will meet on February 14, 2019 to discuss and
adopt financial statements of the company for the period ended
December 31, 2018. (QSE)
 MARK postponed its EGM to February 25, 2019 due to lack of
quorum – Masraf Al Rayan (MARK) announced that the Extra-
Ordinary General Meeting (EGM) of bank, which scheduled on
January 28, 2019 is postponed. The next meeting will be held on
February 25, 2019, immediately after the Ordinary General
Assembly meeting of the bank. (QSE)
 GISS’ board meets to discuss the financial statements ended
December 31, 2018 on February 13, 2019 – Gulf International
Services (GISS) announced that its board of directors will meet
on February 13, 2019 to discuss and adopt financial statements
of the company for the period ended December 31, 2018. (QSE)
 QAMC’s board meets to discuss the financial statements ended
December 31, 2018 on February 20, 2019 – Qatar Aluminum
Manufacturing Company (QAMC) announced that its board of
directors will meet on February 20, 2019 to discuss and adopt
financial statements of the company for the period ended
December 31, 2018. (QSE)
International
 CBO: US tariffs will slow GDP growth – Tariffs imposed by the
President Donald Trump’s administration will limit growth of
US real gross domestic product by an average of 0.1% each year
for the next 10 years if they remain in place at current levels,
according to the Congressional Budget Office (CBO). The
nonpartisan agency stated growth of GDP - a measure national
economic output - would be curbed by a drop in consumer
spending power and a fall in US exports. Those declines would
be only partly offset by an expected increase in output as
domestic goods replace imports, CBO stated in its budget and
economic outlook for 2019-2029. President Donald Trump’s
administration last year slapped tariffs on goods from China
and other countries, as Trump sought better trade terms. The
outlook for the impact of these tariffs, and retaliation from
trading partners, was part of the CBO’s updated budget
forecasts. The tit-for-tat tariff war with China has cost both
countries billions of Dollars. Global stocks were down on
Monday after data showed profits at China’s industrial firms
shrank for a second straight month in December, the latest
indication of the trade war’s toll. (Reuters)
 US delays fourth-quarter GDP report after government
shutdown – The US Commerce Department’s Bureau of
Economic Analysis stated it was delaying the release of
advance fourth-quarter gross domestic product data scheduled
for Wednesday because of the just-ended five-week partial
government shutdown. The record-long shutdown prevented
the collection of reports ranging from retail sales to
construction spending, which go into the calculation of the GDP
report. Economists, investors and businesses count on data
from the Commerce Department agencies, including the Census
Bureau, which were shuttered during the 35-day partial closure
of the government. BEA spokesman Thomas Dail said no new
release dates had been set for the postponed reports and that
the agency was consulting with Census and other data
suppliers to determine the availability of data used to produce
economic indicators. (Reuters)
 UK's Hammond to deliver spring fiscal statement on March 11,
2019 – British Finance Minister, Philip Hammond will deliver
his spring fiscal statement on March 11, 2019, Sky News
reported. The date could be brought forward to February to free
up time for parliament to pass Brexit legislation ahead of
Britain’s planned exit from the European Union on March 29,
Sky News stated. In December, Hammond said he intended to
make the statement, which is an update on the economic
outlook rather than a full budget, in either late February or in
March and that he did not expect to give the statement before
February 26. (Reuters)
 Eurozone’s lending growth defies gloom, M3 jumps in December
– Eurozone’s lending growth held steady last month, while a
broader indicator of money circulating in the economy surged,
data showed defying multiplying signs of gloom in the 19-
member currency bloc. With the area’s three biggest economies
- Germany, France and Italy - barely growing last quarter and
sentiment indicators heading lower, banks were expected to
tighten lending, putting a further brake on growth. Yet, figures
published by the European Central Bank (ECB) remained at or
near their post-crisis highs, supporting the ECB’s argument that
the bloc was experiencing a slowdown and not a downturn or
the start of a recession. Household lending held steady at post-
crisis high of 3.3%, while corporate lending expanded by 4.0%,
not far from its post-crisis peak of 4.3% hit in September. ECB’s
President, Mario Draghi warned last week that the growth dip
could be bigger and longer than previously feared but stuck to
his previous view that the slowdown was temporary and not
the beginning of a recession. Still, markets now see almost no
chance of an interest rate increase this year and instead see
more stimulus measures from the ECB, possibly fresh loans to
the bank sector, in part to maintain ample liquidity and the flow
of credit to the corporate sector. The annual growth rate of the
M3 measure of money supply, which often foreshadows future
activity, jumped to 4.1% from 3.7% in November, beating
market expectations for 3.8%. It was the best M3 reading since
last June. (Reuters)
 Japan cuts view of exports as US-China trade war hurts trade –
Japan has cut its assessment of exports in January for the first
time in three months due to the trade war between the US and

5. Page 5 of 7
China in a warning that the fallout is spreading to the world’s
third-largest economy. The Cabinet Office, which helps
coordinate government policy, said exports have weakened
recently in its monthly economic report for January. This
marked a downgrade from last month when it said exports had
flattened. Shipments of electronics and semiconductor
manufacturing equipment to China have slowed sharply
because of the trade dispute and waning smartphone demand,
making it more difficult for Japan’s policymakers to ensure
healthy economic growth. “We need to keep in mind that there
is uncertainty about how trade disputes and China’s economic
outlook will affect the global economy,” the report showed.
Japan’s exports in December fell 3.8% from a year earlier, its
sharpest YoY decline since October 2016, dragged by
plummeting shipments to China. Exports account for around
17% of the country’s GDP. The Cabinet Office left unchanged
its overall assessment that the economy is in gradual recovery,
but many economists have warned that growth this year will
not be as robust as last year because of increasing risks to the
outlook. In addition to the US-China trade row, Japanese
policymakers are wary of Britain’s departure from the European
Union and the risk of a sudden spike in the Yen. The
government turned more pessimistic on consumer prices,
highlighting the Bank of Japan’s struggles to generate lasting
inflation. (Reuters)
Regional
 ENBD: GCC bonds drew half of $30bn expected flows already –
Bonds of GCC nations have already attracted about half of the
expected $30bn in inflows from their inclusion in JPMorgan
Chase & Co.’s emerging-market bond indexes, according to
Emirates NBD Asset Management (ENBD). Active money
managers have started positioning before the inclusion
beginning January 31, according to Director of fixed income,
Parth Kikani. “Passive money will come in the rest of 2019.
That will provide a good bid for the market and lower the risk
premium on Gulf bonds,” he added. (Bloomberg)
 Saudi Arabian government will spend $27bn on industry plan –
Saudi Arabia’s government will spend $27bn in 2019 and 2020
as part of its industrial development program, Deputy Minister
of Energy, Industry and Mineral Resources, Aabed Abdullah Al-
Saadoun said. The program is offering investment opportunities
in mining, industry, logistics and energy sectors inside the
Kingdom. The program is offering investors the opportunity to
invest in projects such as plants that manufacture rubber,
catalysts and vehicles, he said. Saudi Arabia’s 2019 budget
allocated SR33bn for the energy, industry, mining and logistics
sectors, Energy Minister, Khalid Al-Falih said in December.
(Zawya)
 Saudi Aramco's rating ambitions face Saudi Arabia’s economic
curb – Saudi Aramco is pushing for a top credit rating ahead of
its first international bond sale, but Saudi Arabia’s sluggish
economy may curb the state-owned oil firm’s ambitions. Saudi
Aramco intends to issue its first US Dollar-denominated bonds,
expected to be at least $10bn, in the second quarter to help
finance the acquisition of a stake in SABIC, the world’s fourth-
largest petrochemicals maker. Saudi Aramco’s CEO, Amin
Nasser said last week that Saudi Aramco was talking to credit
rating agencies ahead of its debut on the international capital
markets, which comes after it last year pulled what would have
been the biggest ever stock flotation. As the world’s top oil
producer, Saudi Aramco expects to match the ratings of Exxon
and Shell, sources said. Exxon is rated ‘triple-A’ by agency
Moody’s and ‘AA+’ by its rival S&P, putting it on par with the
rating of the United States. But this would put Aramco, which
declined to comment, four to six “notches” above Saudi Arabia
itself, creating an unprecedented gap between a state-owned
firm and its government. Bond market investors expect Saudi
Aramco to have a similar, if not lower, rating than Saudi Arabia,
meaning its bonds will have to offer a higher yield than
government debt to attract buyers. (Reuters)
 Saudi Arabia will build metal smelter with Trafigura worth
$2.8bn – Saudi Arabia has signed an agreement to build a metal
smelter with global commodities trader Trafigura worth $2.8bn,
according to a statement reviewed by Reuters. The project with
Trafigura Singapore will be the first copper smelter in a GCC
country and it aims to produce 400,000 tons of copper, 200,000
tons of zinc, and 55,000 tons of lead annually. (Reuters)
 Eastman Chemical agrees to build $500mn resins factory in
Saudi Arabia – Eastman Chemical reached a partnership
agreement with Alrafiyah to set up a factory for hydrocarbon
resins valued at about $500mn, according to Saudi Arabian
government statement. (Bloomberg)
 Saudi Arabia will lend SR3.15bn for Chinese-built chemical
plant – Saudi Arabia will make a loan of SR3.15bn to China-
based chemical producer Pan-Asia PET Resin for a facility the
company is building in Jazan, in Kingdom’s south, Director-
General of Saudi Industrial Development, FundIbrahim Al-
Mojel said. The Petrochemical project will be announced on
Tuesday, is located near Saudi Aramco refinery on southern
Red Sea coast. (Bloomberg)
 Saudi Arabia’s November trade surplus stood at SR59.124bn –
The General Authority for Statistics in Riyadh published data
on foreign merchandise trade for November. The Kingdom’s
trade surplus stood at SR59.124bn in November 2018 as
compared to SR70.308bn in October 2018. November’s oil
exports came in at SR75.8bn versus SR94.3bn in the previous
month. Non-oil exports rose 8.4% YoY to SR20.6bn in
November 2018. November’s imports stood at SR37.2bn, which
represents declined of 8.5% YoY. (Bloomberg)
 Saudi Arabia’s December bank assets rise 1.3% MoM; a rise of
2.5% YoY – Saudi Arabian Monetary Authority published
banking data which showed that in December the total bank
assets rose to SR2,363.4bn from SR2,332.6bn in the previous
month, representing a rise of 1.3% MoM. The total bank assets
stood at SR2,305.8bn in the same month a year ago,
representing a rise of 2.5% YoY. (Bloomberg)
 Saudi Arabia’s foreign reserves drop the most in 20 months in
December – Saudi Arabia’s net foreign assets dropped the most
in almost two years in December, according to central bank’s
data, amid a decline in oil prices. Reserves stood at the
equivalent of $489.4bn, compared with $497.1bn in the
previous month. Brent crude prices dropped by 8.4% in
December. Saudi Arabia relies on income from oil exports for
the majority of government revenue. (Bloomberg)
 Saudi Arabia’s December net foreign assets fall to SR1,835.87bn
– Saudi Arabian Monetary Authority published reserves data

6. Page 6 of 7
for December which showed that Saudi Arabia’s December net
foreign assets fell to SR1,835.87bn. The total reserve assets fell
to SR1,862.2bn from SR1,891.4bn in November. Investment in
foreign securities fell to SR1,198.3bn from SR1,198.6bn in
November. Foreign exchange and deposits abroad fell to
SR625.8bn from SR654.8bn in November. SAMA’s net foreign
assets stood at SR1,865.1bn at the end of November,
representing a fall of 0.05% MoM. (Bloomberg)
 Dubai airport handles 89.1mn passengers in 2018, misses target
– Dubai International Airport handled 89.1mn passengers in
2018, missing its target but remaining the world’s busiest for
international travelers. Passenger traffic rose one percent last
year, operator Dubai Airports stated, its weakest annual growth
rate in at least a decade and short of its 90.3mn target. Dubai
airport, the hub for airlines Emirates and Flydubai, saw growth
slow throughout 2018 after 15 years of strong increases. Among
other factors, the Gulf’s economic slowdown because of low oil
prices has dented the region’s travel industry. (Reuters)
 IMF says economic growth in Kuwait to strengthen on the back
of oil prices – The International Monetary Fund (IMF) stated
that Kuwait’s non-oil growth is projected to increase to about
3.5% in 2020, from 2.5% last year, as higher oil prices will boost
capital spending. “The mission has assumed an average oil price
of $57 per barrel in 2019–20, increasing to $60 per barrel over
the medium term,” the IMF stated. “As capital project
implementation accelerates, non-oil growth is projected to
increase to about 3.5 percent in 2020.” The IMF also stated that
the recent OPEC decision to cut production is expected to hold
oil output to 2% growth in 2019, which could rebound to 2.5%
in 2020 given spare capacity. The inflation rate is expected to
rise in 2019–20 to about 2.5% as deflationary factors seen in
2018 unwind, IMF stated. It stated that higher oil revenues and
investment income helped improve the overall fiscal balance in
2017/18 to an estimated surplus of 8% of GDP, which will reach
almost 12% of GDP in fiscal year 2018/19. Delays to the
passage of a new debt law have left the government unable to
issue debt since October 2017, forcing it to draw on the state
General Reserve Fund for financing, including to repay
maturing debt, the IMF stated. “Continued fiscal consolidation
will be needed to reduce financing needs over the medium
term,” IMF added. (Reuters)
 National Bank of Bahrain’s posts net income of BHD70mn in
FY2018 – National Bank of Bahrain reported net income of
BHD70mn in FY2018 as compared to BHD61mn in FY2017. It
proposed a dividend of BHD0.025 per share for 2018. It also
proposed one bonus share for ten shares held. (Bloomberg)
 Investcorp announces acquisition of Health Plus – Investcorp, a
leading global provider and manager of alternative investment
products, announced its acquisition of Health Plus
Management, LLC (Health Plus), a provider of business
management and operations services for independent
physician practices in the physical medicine and rehabilitation
market. The terms of the transaction were not disclosed. Based
in Long Island, New York, Health Plus provides physician-
owned practices with an effective administrative solution for
outsourcing non-medical, front and back office operations.
Services include site selection and buildout, front and back
office management, marketing, human resources support,
technology and reporting. (Peninsula Qatar)
 Bahrain sells BHD70mn 91-day bills; bid-cover at 1.18x –
Bahrain sold BHD70mn of bills due on May 1, 2019. Investors
offered to buy 1.18 times the amount of securities sold. The bills
were sold at a price of 98.939, having a yield of 4.24% and will
settle on January 30. (Bloomberg)

7. 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
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Page 7 of 7
Rebased Performance Daily Index Performance
Source: Bloomberg Source: Bloomberg
Source: Bloomberg (
#
Market was closed on January 28, 2019) 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
1.3%
0.3%
0.0%
(0.8%)
(0.2%)
0.6%
1.2%
(1.0%)
(0.5%)
0.0%
0.5%
1.0%
1.5%
SaudiArabia
Qatar
Kuwait
Bahrain
Oman
AbuDhabi
Dubai
Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D%* WTD%* YTD%*
Gold/Ounce 1,303.38 0.0 0.0 1.6 MSCI World Index 1,989.18 (0.6) (0.6) 5.6
Silver/Ounce 15.74 (0.0) (0.0) 1.6 DJ Industrial 24,528.22 (0.8) (0.8) 5.1
Crude Oil (Brent)/Barrel (FM Future) 59.93 (2.8) (2.8) 11.4 S&P 500 2,643.85 (0.8) (0.8) 5.5
Crude Oil (WTI)/Barrel (FM Future) 51.99 (3.2) (3.2) 14.5 NASDAQ 100 7,085.69 (1.1) (1.1) 6.8
Natural Gas (Henry Hub)/MMBtu 3.06 (1.3) (1.3) (5.8) STOXX 600 354.38 (0.7) (0.7) 4.8
LPG Propane (Arab Gulf)/Ton 65.00 (4.8) (4.8) 1.6 DAX 11,210.31 (0.4) (0.4) 6.1
LPG Butane (Arab Gulf)/Ton#
70.50 0.0 0.0 1.4 FTSE 100 6,747.10 (1.0) (1.0) 3.6
Euro 1.14 0.2 0.2 (0.3) CAC 40 4,888.58 (0.5) (0.5) 3.2
Yen 109.35 (0.2) (0.2) (0.3) Nikkei 20,649.00 (0.1) (0.1) 4.3
GBP 1.32 (0.3) (0.3) 3.2 MSCI EM 1,028.06 (0.4) (0.4) 6.4
CHF 1.01 0.1 0.1 (1.1) SHANGHAI SE Composite 2,596.98 (0.1) (0.1) 6.2
AUD 0.72 (0.2) (0.2) 1.7 HANG SENG 27,576.96 0.0 0.0 6.5
USD Index 95.75 (0.1) (0.1) (0.4) BSE SENSEX 35,656.70 (1.3) (1.3) (3.1)
RUB 66.27 0.4 0.4 (4.9) Bovespa 95,443.88 (2.2) (2.2) 11.7
BRL 0.27 0.3 0.3 3.1 RTS 1,178.91 (1.1) (1.1) 10.3
89.0
84.4
79.3