1. Page 1 of 7
QE Intra-Day Movement
Qatar Commentary
The QE Index rose 0.2% to close at 13,511.1. Gains were led by the Banks & Financial Services and Telecoms indices, rising 1.0% and 0.4%, respectively. Top gainers were QNB Group and Qatar Islamic Insurance Co., rising 2.2% and 2.0%, respectively. Among the top losers, Qatar German Co. for Medical Devices fell 2.5%, while Qatar National Cement Co. declined 2.1%.
GCC Commentary
Saudi Arabia: The TASI Index fell 1.9% to close at 10,177.1. Losses were led by the Petrochemical Ind. and Agriculture & Food Ind. indices, falling 3.5% and 2.7%, respectively. Allianz SF fell 6.2%, while APC was down 5.5%.
Dubai: The DFM Index declined 2.9% to close at 4,571.9. The Real Estate & Const. index fell 4.0%, while the Financial & Inv. Services index declined 3.2%. National General Insurance fell 10.0%, while Gulf Navigation was down 8.7%.
Abu Dhabi: The ADX benchmark index fell 1.1% to close at 4,891.6. The Real Estate index declined 4.8%, while the Investment & Fin. Serv. index fell 4.6%. Nat. Marine Dred. declined 9.8%, while Finance House was down 8.3%.
Kuwait: The KSE Index rose 0.3% to close at 7,580.8. The Banks index gained 1.1%, while the Real Estate index was up 0.7%. National Ranges Co. rose 7.2%, while Kuwait Syrian Holding was up 7.0%.
Oman: The MSM Index fell 0.4% to close at 7,166.7. Losses were led by the Financial and Industrial indices, falling 1.1% and 0.5%, respectively. Al Madina Investment fell 6.0%, while Al Sharqia Investment Holding was down 5.7%.
Bahrain: The BHB Index declined 0.4% to close at 1,459.5. The Services index fell 0.9%, while the Commercial Bank index was down 0.6%. Trafco Group declined 5.8%, while Bahrain CarPark Co. was down 5.3%.
Qatar Exchange Top Gainers Close* 1D% Vol. ‘000 YTD%
QNB Group
208.20
2.2
306.1
21.0 Qatar Islamic Insurance Co. 85.60 2.0 13.0 47.8 Zad Holding Co. 87.80 1.6 10.3 26.3 Al Khaleej Takaful Group 47.00 1.5 32.3 67.4 Vodafone Qatar 20.74 1.2 501.5 93.7
Qatar Exchange Top Vol. Trades Close* 1D% Vol. ‘000 YTD%
Ezdan Holding Group
19.85
(0.7)
2,430.9
16.8 Masraf Al Rayan 53.40 0.6 720.6 70.6
Vodafone Qatar
20.74
1.2
501.5
93.7 Salam International Investment Co. 19.50 0.0 349.4 49.9
QNB Group
208.20
2.2
306.1
21.0
Market Indicators 14 Oct 14 13 Oct 14 %Chg.
Value Traded (QR mn)
411.7
557.5
(26.2) Exch. Market Cap. (QR mn) 728,411.2 726,112.2 0.3
Volume (mn)
7.9
10.3
(23.9) Number of Transactions 4,638 5,623 (17.5)
Companies Traded
43
42
2.4 Market Breadth 15:23 22:16 –
Market Indices Close 1D% WTD% YTD% TTM P/E
Total Return
20,151.69
0.2
(2.3)
35.9
N/A All Share Index 3,420.09 0.1 (2.2) 32.2 16.7
Banks
3,369.01
1.0
(1.5)
37.9
16.1 Industrials 4,458.31 (0.5) (2.8) 27.4 15.8
Transportation
2,285.90
(0.8)
(1.8)
23.0
14.6 Real Estate 2,714.57 (0.5) (3.5) 39.0 24.0
Insurance
4,072.81
0.2
(1.1)
74.3
12.9 Telecoms 1,639.55 0.4 (1.9) 12.8 23.2
Consumer
7,419.57
(0.4)
(2.0)
24.7
27.7 Al Rayan Islamic Index 4,540.64 (0.0) (3.2) 49.6 19.4
GCC Top Gainers## Exchange Close# 1D% Vol. ‘000 YTD%
Abu Dhabi National Hotels
Abu Dhabi
3.75
7.1
551.0
21.0 Saudi Dairy & Food. Co. Saudi Arabia 124.22 5.5 164.4 44.0
IFA Hotels & Resorts Co.
Kuwait
0.21
5.0
511.0
(26.3) Com. Bank Of Kuwait Kuwait 0.69 4.5 16.0 3.5
National Investments Co.
Kuwait
0.18
3.4
2,781.6
13.8
GCC Top Losers## Exchange Close# 1D% Vol. ‘000 YTD%
Nat. Marine Dredging Co.
Abu Dhabi
6.70
(9.8)
2.0
(22.1) Aldar Properties Abu Dhabi 3.35 (5.4) 22,540.8 21.4
City Cement Co.
Saudi Arabia
25.52
(5.2)
4,534.3
11.2 Bank Al-Jazira Saudi Arabia 30.81 (5.0) 7,747.2 9.3
Yanbu Nat. Petrochem.
Saudi Arabia
63.87
(4.7)
1,408.9
(13.4)
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 German Co. for Med. Dev.
13.19
(2.5)
79.8
(4.8) Qatar National Cement Co. 137.10 (2.1) 3.5 15.2
Gulf International Services
117.60
(2.0)
197.5
141.0 Doha Insurance Co. 32.50 (1.8) 21.8 30.0
Aamal Co.
15.01
(1.3)
162.2
0.1
Qatar Exchange Top Val. Trades Close* 1D% Val. ‘000 YTD%
QNB Group
208.20
2.2
63,473.1
21.0 Ezdan Holding Group 19.85 (0.7) 48,103.4 16.8
Industries Qatar
185.40
0.5
41,974.8
9.8 Masraf Al Rayan 53.40 0.6 38,182.4 70.6
Gulf International Services
117.60
(2.0)
23,369.7
141.0
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*
13,511.11
0.2
(2.3)
(1.6)
30.2
113.05
200,021.7
18.0
2.2
3.5 Dubai 4,571.90 (2.9) (7.5) (9.3) 35.7 248.00 101,147.2 19.0 1.7 2.1
Abu Dhabi
4,891.58
(1.1)
(3.7)
(4.2)
14.0
73.95
134,703.7
13.9
1.7
3.4 Saudi Arabia 10,177.11 (1.9) (6.2) (6.2) 19.2 2,016.40 553,355.3 19.5 2.5 2.8
Kuwait
7,580.83
0.3
(0.9)
(0.5)
0.4
85.53
112,516.9
19.3
1.2
3.7 Oman 7,166.73 (0.4) (4.2) (4.2) 4.9 50.93 26,523.6 10.9 1.6 3.9
Bahrain
1,459.49
(0.4)
(0.8)
(1.1)
16.9
1.04
54,214.8
11.3
1.0
4.7
Source: Bloomberg, Qatar Exchange, Tadawul, Muscat Securities Exchange, Dubai Financial Market and Zawya (** TTM; * Value traded ($ mn) do not include special trades, if any)
13,35013,40013,45013,50013,5509:3010:0010:3011:0011:3012:0012:3013:00

2. Page 2 of 7
Qatar Market Commentary
 The QE Index rose 0.2% to close at 13,511.1. Banks & Financial Services and Telecoms indices led the gains. The index rose on the back of buying support from non-Qatari shareholders despite selling pressure from Qatari shareholders.
 QNB Group and Qatar Islamic Insurance Co. were the top gainers, rising 2.2% and 2.0%, respectively. Among the top losers, Qatar German Co. for Medical Devices fell 2.5%, while Qatar National Cement Co. declined 2.1%.
 Volume of shares traded on Tuesday fell by 23.9% to 7.9mn from 10.3mn on Monday. Further, as compared to the 30-day moving average of 14.7mn, volume for the day was 46.5% lower. Ezdan Holding Group and Masraf Al Rayan were the most active stocks, contributing 31.0% and 9.2% to the total volume respectively.
Source: Qatar Exchange (* as a % of traded value)
Earnings and Global Economic Data
Earnings Releases Company Market Currency Revenue (mn)3Q2014 % Change YoY Operating Profit (mn) 3Q2014 % Change YoY Net Profit (mn) 3Q2014 % Change YoY United Electronics Co. (eXtra) Saudi Arabia SR – – 30.3 0.0% 29.7 1.0% Tourism Enterprise Co. (TECO) Saudi Arabia SR – – 2.4 2.1% 2.2 2.2%
Yanbu Cement Co. (YNCC)
Saudi Arabia
SR
–
–
172.0
16.2%
163.0
16.4% Oman Chlorine * Oman OMR 5.8 -10.6% – – 1.8 -28.3%
Sohar Power Co. (SPC) *
Oman
OMR
36.0
-1.0%
–
–
3.6
-17.4% Nat. Hospitality institute (NHIS) * Oman OMR 0.7 44.3% – – 0.0 NA
Sembcorp Salalah (SSPW) *
Oman
OMR
47.6
1.8%
–
–
10.5
16.9% Oman Chromite Co. (OCC) * Oman OMR 1.6 16.1% – – 0.4 62.8%
Salalah Port Services Co. (SPS) *
Oman
OMR
40.7
-4.4%
–
–
4.5
-6.1% Oman Cement Co. (OCOI) * Oman OMR 42.2 0.0% – – 11.4 -8.2%
Raysut Cements Co. (RCC) *
Oman
OMR
70.8
0.8%
–
–
20.9
8.7% National Aluminium Products Co. (NAPCO) * Oman OMR 13.5 -11.1% – – 0.5 -50.5%
Al Fajar Al Alamia Co. (AFAI)
Oman
OMR
4.2
-7.6%
–
–
0.3
-48.5% Gulf Investment Services Co. (GISI) * Oman OMR 4.4 9.1% – – 3.3 19.9%
United Finance
Oman
OMR
9.2
9.1%
–
–
3.5
29.4% Dhofar Beverages Food Stuff Co. (DBCI) ** Oman OMR 3.9 14.5% – – 0.3 98.4%
The Financial Corporation Co. (Fincorp)
Oman
OMR
0.8
-10.1%
0.3
-23.6%
0.4
-19.0% Packaging co. Ltd * Oman OMR 4.5 73.8% – – 0.0 -28.6%
Source: Company data, DFM, ADX, MSM (* 9M2014 results, ** FY2014 results)
Global Economic Data Date Market Source Indicator Period Actual Consensus Previous
10/14
US
Nat'l Fed. of Ind. Business
NFIB Small Business Optimism
September
95.3
95.8
96.1 10/14 EU ZEW ZEW Survey Expectations October 4.1 – 14.2
10/14
EU
Eurostat
Industrial Production SA MoM
August
-1.80%
-1.60%
0.90% 10/14 EU Eurostat Industrial Production WDA YoY August -1.90% -0.90% 1.60%
10/14
France
INSEE
CPI MoM
September
-0.40%
-0.30%
0.40% 10/14 France INSEE CPI YoY September 0.30% 0.40% 0.40%
10/14
Germany
ZEW
ZEW Survey Current Situation
October
3.2
15.0
25.4 10/14 Germany ZEW ZEW Survey Expectations October -3.6 0.0 6.9
10/14
UK
ONS
CPI MoM
September
0.00%
0.20%
0.40% 10/14 UK ONS CPI YoY September 1.20% 1.40% 1.50%
10/14
UK
ONS
CPI Core YoY
September
1.50%
1.80%
1.90% 10/14 UK ONS Retail Price Index September 257.6 257.9 257.0 Overall Activity Buy %* Sell %* Net (QR)
Qatari
49.70%
56.00%
(25,916,731.64) Non-Qatari 50.30% 44.01% 25,916,731.64

3. Page 3 of 7
10/14
UK
ONS
RPI MoM
September
0.20%
0.30%
0.40% 10/14 UK ONS RPI YoY September 2.30% 2.30% 2.40%
10/14
UK
London Gold Market Fix.
London Gold Market PM Fix
14-October
1,234.8
–
1,229.0 10/14 Spain INE CPI MoM September 0.20% 0.10% 0.20%
Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted
News
Qatar
 QCFS reports a 3.4% QoQ drop in 3Q2014 net profit – Qatar Cinema & Film Distribution Company (QCFS) reported a net profit of QR1.7mn in 3Q2014, up 8.9% YoY (down 3.4% QoQ). However, the company’s operating income dipped 15.8% YoY to QR3.2mn (-9.2% QoQ). The increase in earnings, despite a lower operating income, was supported by lower G&A expenses, finance costs, and higher dividend, rental and other income. (QE, Gulf-Times.com)
 QGMD to disclose results on October 19 – Qatar German for Medical Devices Company (QGMD) will disclose its 3Q2014 financial statements on October 19, 2014. (QE)
 WDAM to disclose results on October 23 – Widam Food Company (WDAM) will disclose its 3Q2014 financial statements on October 23, 2014. (QE)
 MDPS: Qatar inflation up 3.6% YoY on rising rents – According to the Ministry of Development Planning & Statistics (MDPS), fast rising rents, costlier furniture and transport led Qatar’s consumer price index (CPI) inflation to rise 3.6% YoY in September 2014. However, MDPS said that CPI inflation remained unchanged on a MoM basis in August 2014. The rent, fuel & energy group, which is the most influential group carrying the maximum weight of 32.2% in the CPI basket, recorded an increase of 8.1% YoY in September 2014. According to QNB Group (QNBK), the country’s inflation is expected to average 3.4% in 2014 as higher infrastructure spending will result in a large inflow of workers, putting pressure on housing and prices. The food, beverages & tobacco group, (13.2% weight) had risen 0.5% MoM and 0.9% YoY. The transport & communication group (20.5% weight) grew 2.7% YoY in September 2014, though it was down 0.4% MoM. (QNB Group; Peninsula Qatar)
 CBMFM wins HVAC contract from QP – Cofely Besix Mannai Facility Management (CBMFM) has been awarded its first contract by Qatar Petroleum (QP) to maintain and replace all the heating, ventilating & air conditioning (HVAC) equipment located at Dukhan Fields in Qatar. CBMFM will be responsible for maintaining more than 1,200 HVAC equipments in Dukhan Fields, covering an area of around 65 kilometers and containing 700 oil & gas and water injection wells. The contract with Qatar Petroleum is valid for an initial five-year period and will require a total of 120 operational personnel. (QE)
 MARK’s unit IBB appoints new CCO – The Islamic Bank of Britain (IBB), owned by Masraf Al Rayan (MARK), announced the appointment of Keith Leach as the company’s new Chief Commercial Officer (CCO). Leach will be responsible to grow IBB’s corporate & real estate business, focusing on higher value transactions. His appointment follows the bank’s acquisition by Masraf Al Rayan earlier in the year. A capital investment worth £100mn from IBB’s parent company will support its expansion plans. Appointed to the position from his role at the Arab Banking Corp (ABC), Leach has more than 30 years of banking experience with Lloyds, Ahli United, and ABC, 20 years of which has been spent in the UK Islamic finance industry. (Gulf- Times.com)
 Qatargas launches Plateau Maintenance Project – Qatargas announced the successful start-up of its Plateau Maintenance Project (PMP), which aims to ensure the production capacity of
Qatargas 1 is steadily maintained at 10mn tons per annum (mta) of liquefied natural gas (LNG). The project involved drilling and completing offshore wells, adding new onshore facilities for sulfur handling and modifying existing LNG production trains 1, 2 and 3. (Bloomberg)
 Companies line up to be listed on QE – The Qatar Exchange’s (QE) CEO Rashid bin Ali Al Mansoori said a good number of companies will get listed on Qatar bourse in the coming months. Al Mansoori stated that several companies have expressed their interest in listing on the QE and the bourse is waiting for the procedures to be completed. (Peninsula Qatar)
 CommScope, ORDS partner to develop smarter data center – Infrastructure services provider, CommScope has partnered with Ooredoo (ORDS) at its Qatar Data Center in Mesaimeer to create a smarter data center by implementing intelligent LED lighting and infrastructure services. ORDS implemented CommScope's Redwood, imVision and Systimax services to support a fully integrated, intelligent IT & facilities infrastructure at its data center. (Bloomberg)
 Tower in Al Dafna sold for record QR490mn – A tower in posh Al Dafna area of Doha was recently sold for a record QR490mn, translating to QR200,000 per square meter. According to the Real Estate Registration Department at the Ministry of Justice, another high-profile deal was for a house measuring 1,763 square meter in Bin Mahmood in Doha, which was sold for QR83mn at QR47,000 per square meter. Real estate transactions rose to a record high of QR1.5bn in the week from September 28 to October 2 after a protracted lull. A total of 171 deals worth QR1.49bn were concluded in the week as compared to 157 in the week before (September 21 to 25) and the total value was QR831.6mn. Some eight plots measuring 658 square meters were sold in Al Asmakh locality of the city, each for QR20mn. (Peninsula Qatar)
 QA to add second A380 on Doha-London route; signs deal for 20 new aircraft – Qatar Airways (QA) will add a second A380 superjumbo plane to its Doha-London route in December, following the inaugural flight on the popular route on October 10, 2014. Meanwhile, QA has signed a MoU with Gulfstream Aerospace Corporation for the purchase of up to 20 aircraft, including firm orders and options for the all-new, wide-cabin G500 and G650ER aircraft. (Bloomberg)
International
 Dollar rises on prospects of US economic growth outpacing peers – The US dollar gained versus its peers for a second day amid speculation that the US economy will outpace other Group- of-10 nations. The Bloomberg Dollar Spot Index, which tracks the greenback against 10 major currencies, rose just before the Federal Reserve releases its ‘Beige Book’ on economic conditions. The euro fell ahead of a speech by European Central Bank President Mario Draghi amid concerns about Germany slipping toward recession. The pound touched an 11-month low after a report showed inflation in the UK fell to levels unseen in five years. According to Bloomberg, the US economy is set to expand 2.2% this year and 3% in 2015. The surveys predict that the Eurozone will grow 0.8% in 2014 and 1.3% in 2015, while Japan will gain 1% in 2014 and 1.2% in 2015. (Bloomberg)

4. Page 4 of 7
 Citigroup to exit consumer banking in 11 markets – Citigroup Inc., the US banking major that gets the most revenue from overseas markets, announced plans to exit consumer banking in 11 markets as the CEO Michael Corbat seeks to simplify the firm and boost returns. The bank said the sale of its businesses, a majority of which already are under way, are expected to be completed by the end of 2015. The units will be moved into the lender’s collection of unwanted assets for reporting purposes in 1Q2015. These actions come two years after Corbat was named the CEO to replace Vikram Pandit, who made expanding into emerging markets one of his central strategies. Since taking over, Corbat has announced plans to fire 11,000 workers and pull back from consumer banking in markets with low returns including Spain, Greece and Turkey. (Bloomberg)
 Merkel vows austerity even as German growth projection cut – According to sources, German Chancellor Angela Merkel told lawmakers that Germany will not raise its public spending to stimulate the economy even after her government slashed growth forecasts for 2014 and 2015. The Economy Ministry said Europe’s biggest economy will probably grow by 1.2% this year and by 1.3% in 2015, marking respective drops from 1.8% and 2.0% forecast in April. Merkel, addressing a closed-door meeting of members of her Christian Democratic Union in Berlin, vowed that her government will pursue its balanced budget goal regardless of the outlook. (Bloomberg)
 Italy, China sign business deals worth €8bn – Italy and China have signed business deals worth about €8bn in various sectors ranging from energy to engineering, in efforts to deepen Beijing's commercial ties with the Eurozone's third largest economy. China has already spent well over €5bn buying stakes in some of Italy's biggest companies in 2014. Italian Prime Minister Matteo Renzi said these deals should open the way to further accords with China in the future. With Italy's economy now back in recession for the third time since 2008 and foreign investors wary of the country's notorious red tape and unpredictable legal system, Renzi's government has been keen to woo cash-rich buyers from China. (Reuters)
 BoJ: QE makes it easier for banks to lend, helps economy – The Bank of Japan’s (BoJ) Executive Director Masayoshi Amamiya said that the central bank's quantitative easing (QE) makes it easier for banks to lend money as it pushes interest rates lower. QE also helps increase demand for funding and contributes to overall growth. Amamiya is the architect of the BoJ's quantitative easing and is in charge of an important division that determines monetary policy options. Amamiya stated that, BoJ Governor Haruhiko Kuroda thinks a weak yen is a plus for the Japanese economy as long as currency moves reflect fundamentals. Amamiya said a weak yen is a positive for exporters, but can be a negative factor for household incomes and companies that import goods. (Reuters)
 China factory-gate price drop matches 1997 Asian-crisis levels – China’s factory-gate prices fell in September for a record-tying 31st month, while consumer inflation eased to the slowest pace since January 2010, adding to signs of tepid demand in the economy. The National Bureau of Statistics said the producer price index dropped 1.8% YoY, compared with the median projection of a 1.6% decline in a Bloomberg survey. Meanwhile, the consumer price index rose 1.6%, below estimates for a 1.7% gain, after 2% increase in August. The drop in producer prices matches a streak from 1997 to 1999, when a financial crisis roiled Asia. Now a property slump in China is pushing down the nation’s annual growth is the slowest pace since 1990, while the People’s Bank of China Governor
Zhou Xiaochuan said that inflation will probably stay mild. (Bloomberg)
Regional
 SHB provides SR121.5mn financing to SMS – Specialized Marine Services (SMS) has signed an agreement with Saudi Hollandi Bank (SHB) to obtain a Murabaha and Ijara financing package totaling SR121.5mn. SMS is a joint venture between Ports Development Company and National Port Services. (GulfBase.com)
 Amadeus: Saudi Arabia leads the Mideast travel market – According to a report, ‘Shaping the Future of Travel in the Gulf Cooperation Council (GCC)’ released by Amadeus, the expanding population will be the key travel driver in the Gulf region. With 28mn residents, Saudi Arabia is the most populous of the lot and will constitute around 60% of the GCC population in 2030, while the UAE, Oman, and Kuwait will add more than a third to their population over the same period. Amadeus Saudi Arabia’s General Manager, Nashat Bukhari said that Saudi Arabia currently leads the Middle East market in terms of domestic and international air travel volume, and will continue to do so, primarily because of its youth-driven demographics, high level of smart device penetration, and diversification of economy. Saudi Arabia is using its hydrocarbon revenues to drive strategic infrastructural growth, a fact that is expected to trigger unprecedented growth in the region’s seasonal and corporate travel sectors. (GulfBase.com)
 SHB reports SR461.8mn net profit in 3Q2014 – Saudi Hollandi Bank (SHB) reported a net profit of SR461.8mn in 3Q2014 as compared to SR433.26mn in 3Q2013, reflecting a YoY increase of 6.6%. EPS as of September 30, 2014 amounted to SR2.85 as against SR2.42 a year earlier. The bank’s total assets stood at SR91.59bn at the end of September 2014 as against SR77.97bn a year ago. Loans & advances stood at SR63.37bn, while customer deposits stood at SR72.69bn. (Tadawul)
 Riyad Bank reports SR1,076mn net profit in 3Q2014 – Riyad Bank reported a net profit of SR1,076mn in 3Q2014 as compared to SR998mn in 3Q2013, reflecting a YoY increase of 7.82%. EPS as of September 30, 2014 amounted to SR1.1 as against SR0.97 a year earlier. The bank’s total assets stood at SR217.07bn at the end of September 2014 as against SR201.8bn a year ago. Loans & advances stood at SR140.7bn, while customer deposits stood at SR161.64bn. (Tadawul)
 Etisalat signs strategic deal with FFZ – Emirates Telecommunication Corporation (Etisalat) and Fujairah Free Zone (FFZ) have signed a strategic partnership agreement. The agreement allows Etisalat to deliver, on priority, advanced telecom and information and communications technology services to FFZ tenants with direct access to Etisalat services. (GulfBase.com)
 ENBD, MetLife sign strategic partnership agreement – Emirates NBD (ENBD) has entered into a strategic partnership agreement with MetLife to provide comprehensive life insurance solutions to ENBD’s more than one million customers in the UAE. (GulfBase.com)
 MoE: Falling oil prices not to impact UAE GDP – According to the UAE Ministry of Economy (MoE), falling oil prices will not hurt the gross domestic product (GDP) growth of the UAE in 2014. Although the governments in the region rely heavily on oil income, they have built up huge financial reserves and carry very low debt, which effectively means they can continue spending on economic growth if needed. Lower oil prices will not

5. Page 5 of 7
translate directly into lower real GDP growth, which will slow only if oil production decreases. (GulfBase.com)
 Etihad Airways revenue up 29% in 3Q2014 to $1.8b – Etihad Airways’ revenue increased 29% to $1.8bn in 3Q2014 with passenger traffic fed into its network from airlines it partly owns increasing. The airline carried 3.9mn passengers during the July-September period, which was 30% more than the 3mn passengers it carried over the same period last year. The contribution of its code-share partnerships and from the airlines it partly owns increased by 41% with an estimated 1.1mn added onto Etihad flights. The code-share and equity partnerships contributed $352mn of revenue, representing 27% of the airline’s passenger revenue. Cargo revenue climbed 16% YoY in 3Q2014 to $284mn with Etihad Cargo carrying 144,498 tons of freight and mail between July and September. (Bloomberg)
 Tasweek reveals a robust real estate sector for UAE during 3Q2014 – Tasweek Real Estate Development and Marketing’s latest comprehensive market intelligence report shows a robust real estate sector during 3Q2014 in step with the UAE’s surging economy. Market drivers include rapid population growth, the government’s globalization policies, and improving income levels. A number of new property development projects are being launched as the UAE’s population continues to increase at approximately 7.6% per annum, one of the world’s highest population growth rates. The population is projected to hit 9.9mn by 2014-end and 18.83mn by 2023. (GulfBase.com)
 Air Berlin, Alitalia sign codeshare deal – Air Berlin and Alitalia, both soon to be part-owned by Etihad Airways, have agreed to cooperate on over 400 routes from October 2014, hoping to boost ticket sales. The airlines, both battling to return to profitability, said the codeshare deal would cover 412 flights between Italy, Germany, Austria and Switzerland. Under the codeshare agreements, both airlines have agreed to jointly market a particular route though only one airline will operate the actual flight. The combined sales effort helps fill seats. (Reuters)
 DI’s Masharie targets 36% YoY growth – Masharie, the private equity arm of Dubai Investments (DI), is poised for aggressive growth in the coming years, driven by the expansion plans of its existing portfolio companies and aggressive acquisitions in identified sectors across the region. With surging demand in both contracting and manufacturing sectors, especially in construction and real estate-related businesses in the Gulf and Middle East, Masharie expects the top-line from its existing portfolio to reach around AED750mn in 2014 (36% growth over AED550mn in 2013) and is targeting 20-25% growth over the next three years. In terms of growth from new acquisitions, Masharie is eyeing significant forays in the range of AED60mn to AED100mn in consumer, health and hospitality sectors. (DFM)
 Emaar looks to sell land plot, no deal yet – Emaar Properties is looking to sell a land plot in downtown Dubai and had received some offers for it, but no deal had been concluded yet. Commenting on a report by the local media, Emaar said the sale was in the normal course of business. The company did not confirm or deny the AED303mn figure mentioned in the report as the sale price. (Reuters)
 IDS helps ADFCA’s adoption of EMF – Injazat Data Systems (IDS), in collaboration with Abu Dhabi Food Control Authority (ADFCA), has announced that they have implemented a comprehensive strategy to adopt Enterprise Mobility Framework (EMF) to accelerate the transformation of ADFCA’s business into the digital world. This initiative will accelerate ADFCA’s mission to develop a sustainable food sector that ensures the delivery of safe food to the public. (GulfBase.com)
 Bank Sohar to proceed with OMR40mn rights issue – Bank Sohar’s board of directors has decided to proceed with the issuance of ordinary equity shares on a rights basis to existing shareholders of the bank, up to an amount of OMR40mn, subject to regulatory approvals. The issue is in place of the issuance of OMR70mn of compulsorily convertible bonds (CCBs) on a private placement basis approved by the BoD, as disclosed on May 14, 2014. The board decided not to issue the CCBs, due to uncertainty regarding its eligibility as an additional Tier I instrument. Only OMR40mn is being issued now as this is the capital requirement to support the bank’s future growth, while the remaining OMR30mn may be issued in the future, depending on the bank’s needs. (Bahrain Bourse)
 OAB to finance property buyers of SBJ – Saraya Bandar Jissah (SBJ), the company developing Oman`s newest Integrated Tourism Complex (ITC) have partnered with Oman Arab Bank (OAB) to offer a wide range of attractive options to prospective buyers for financing their new villas, townhouses, duplexes or apartments. (GulfBase.com)
 Bank Muscat set to launch new service to help SMEs – Bank Muscat is all set to launch a new service benefiting micro and small businesses. The new service will significantly contribute to supporting small businesses by offering them the necessary facilities to take their first step confidently in the journey of success as well as encouraging the youth to join the world of entrepreneurship. (GulfBase.com)
 Moody’s: Oman CMA new regulations credit positive for insurance market – According to Moody's Investors Service, the Capital Market Authority's (CMA) new regulations requiring Omani insurers to be listed on the Muscat Securities Market (MSM) and maintain capital of at least OMR10mn will strengthen the Omani insurance industry. In addition, the new Muscat Securities Market listing requirement will lead to a number of insurance IPOs in the coming years, boosting the market's access to capital. The new requirements will improve insurance companies' access to capital markets, enhance transparency and stabilize the overall insurance market. (GulfBase.com)
 Oman TRA: OMR77mn invested in telecom sector in 2013 – According to Oman's Telecommunications Regulatory Authority (TRA), the investments in the telecom sector in Oman totaled OMR77.88mn in 2013. The areas of investment included fixed telephone, internet, and mobile communication services. Additionally, the total telecom sector’s revenue from operators and resellers reached around OMR749mn at the end of 2013, reflecting an increase of around OMR40mn as compared to 2012. Meanwhile, the TRA said that the number of mobile subscribers had increased over the past five years and reached 5,617,426 in 2013. This is an increase of 6.4% as compared to 2012 when the number stood at 5,277,591. (GulfBase.com)
 NCSI: Cargo at Salalah port rises 29% – According to the vessel movement report released by the National Centre for Statistics and Information (NCSI), Salalah port registered an increase in vessel movement in terms of export and import cargos by 28.9% YoY at the end of July 2014. During the same period, vessel movement at Port Sultan Qaboos witnessed a decline in terms of export and import cargoes by 4.5% at the end of July 2014, as compared to the same period in 2013. The total volume of import and export cargoes at Port Sultan Qaboos declined by 4.5% from 3.15mn tons at the end of July 2013 to 3mn tons at the end of July 2014. The drop is attributed to the decline of the total import cargo at Port Sultan Qaboos by 6% totaling 2.42mn tons at the end of July 2014, as compared to 2.57mn tons for the same period in 2013. Meanwhile, import and export cargo at Salalah port recorded a significant growth of

6. Page 6 of 7
28.9% at the end of July 2014 reaching 6.04mn tons as against 4.68mn tons during the corresponding period in 2013. The increase was a result of the growth of the total import cargo by 19% at the end of July 2014, registering 723,000 tons, as compared to 607,000 tons during the same period of 2013. Additionally, export cargo exports at Salalah port grew by 30.3% during the same period from 4.08mn tons in 2013 to 5.31mn tons in 2014. (GulfBase.com)
 NBO reports 19% YoY rise in 9 months net profit – National Bank of Oman (NBO) reported a net profit of OMR37.1mn for the nine months ended September 30, 2014 as compared to OMR31.2mn for the same period in 2013. The bank’s total assets stood at OMR3,385mn at the end of September 2014 as against OMR2,994.6mn a year ago. Loans & advances stood at OMR2,259.8mn, while customer deposits stood at OMR2,721.3mn. (MSM)
 Ahli Bank reports OMR19mn net profit – Ahli Bank reported a net profit of OMR19.1mn for the nine months ended September 30, 2014 as compared to OMR18.0mn for the same period in 2013. The bank’s total assets stood at OMR1.6bn at the end of September 2014 as against OMR1.34bn a year ago. Loans & advances stood at OMR1.33bn, while customer deposits stood at OMR1.04bn. (MSM)
 Bahrain’s Takaful premiums post 7% growth – According to Abdul Rahman Al Baker, executive director of financial institutions supervision, Central Bank of Bahrain (CBB), increasing demand for Shari’ah-compliant insurance in Bahrain has led to Takaful premiums growing more than 7% in 2013. The Takaful (Islamic insurance) market has grown by around 14 times in terms of premiums as compared to the 2003 level. (GulfBase.com)

7. 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
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Page 7 of 7
Rebased Performance Daily Index Performance
Source: Bloomberg Source: Bloomberg
Source: Bloomberg Source: Bloomberg, *$ adjusted returns.
80.0
100.0
120.0
140.0
160.0
180.0
200.0
220.0
Sep-10 Sep-11 Sep-12 Sep-13 Sep-14
QE Index S&P Pan Arab S&P GCC
(1.9%)
0.2% 0.3%
(0.4%) (0.4%)
(1.1%)
(2.9%)
(3.6%)
(3.0%)
(2.4%)
(1.8%)
(1.2%)
(0.6%)
0.0%
0.6%
Saudi Arabia
Qatar
Kuwait
Bahrain
Oman
Abu Dhabi
Dubai
Asset/Currency Performance Close ($) 1D% WTD% YTD%
Global Indices Performance Close 1D%* WTD%* YTD%*
Gold/Ounce 1,232.88 (0.2) 0.8 2.3 DJ Industrial 16,315.19 (0.0) (1.4) (1.6)
Silver/Ounce 17.39 (0.6) (0.0) (10.7) S&P 500 1,877.70 0.2 (1.5) 1.6
Crude Oil (Brent)/Barrel (FM
Future)
85.04 (4.3) (5.7) (23.2) NASDAQ 100 4,227.17 0.3 (1.1) 1.2
Natural Gas (Henry
Hub)/MMBtu
3.91 0.9 1.3 (10.1) STOXX 600 321.53 (0.1) 0.1 (10.1)
LPG Propane (Arab Gulf)/Ton 90.00 (5.3) (5.0) (28.9) DAX 8,825.21 0.1 0.6 (15.2)
LPG Butane (Arab Gulf)/Ton 108.00 (4.4) (4.2) (20.4) FTSE 100 6,392.68 (0.4) (0.1) (9.0)
Euro 1.27 (0.7) 0.2 (7.9) CAC 40 4,088.25 0.19 0.5 (12.6)
Yen 107.05 0.2 (0.6) 1.7 Nikkei 14,936.51 (1.6) (1.6) (10.0)
GBP 1.59 (1.1) (1.1) (3.9) MSCI EM 992.08 0.1 0.2 (1.1)
CHF 1.05 (0.6) 0.3 (6.4) SHANGHAI SE Composite 2,359.48 (0.3) (0.6) 10.2
AUD 0.87 (0.7) 0.3 (2.3) HANG SENG 23,047.97 (0.4) (0.1) (1.1)
USD Index 85.82 0.3 (0.1) 7.2 BSE SENSEX 26,349.33 (0.8) (0.2) 25.4
RUB 40.87 0.9 1.2 24.3 Bovespa 58,015.46 (0.3) 5.4 10.9
BRL 0.42 (0.3) 0.6 (1.6) RTS 1,075.45 (0.1) 1.0 (25.5)
194.1
157.5
141.8