1. Page 1 of 8
QE Intra-Day Movement
Qatar Commentary
The QE index rose 0.6% to close at 13,173.3. Gains were led by the
Transportation and Telecoms indices, gaining 2.1% and 1.7%, respectively. Top
gainers were Dlala Brokerage & Investments Holding Co. and Qatar General
Insurance & Reinsurance Co., rising 7.6% and 4.6%, respectively. Among the
top losers, Zad Holding Co. fell 2.7%, while Al Ahli Bank declined 1.7%.
GCC Commentary
Saudi Arabia: The TASI index rose 0.1% to close at 9,810.8. Gains were led
by the Retail and Insurance indices, rising 1.2% and 0.6%, respectively. Al
Hammadi gained 9.7%, while Aldrees Petro. & Tran. Services was up 6.4%.
Dubai: The DFM index gained 1.9% to close at 4,858.3. The Inv. & Fin. Ser.
index gained 4.8%, while the Banking index rose 1.9%. National Industries
Group surged 12.9%, while Commercial Bank of Dubai was up 5.9%.
Abu Dhabi: The ADX benchmark index rose 1.2% to close at 4,985.5. The
Consumer index gained 4.1%, while the Energy index was up 2.3%. Int. Fish
Farming surged 13.9%, while Umm Al-Qaiwain Cement Ind. Co. was up 9.6%.
Kuwait: The KSE index gained 0.1% to close at 7,111.7. The Basic Material
index rose 1.3%, while the Banking index was up 0.6%. Pearl of Kuwait Real
Estate rose 12.1%, while Mubarrad Transport Co. was up 6.3%
Oman: The MSM index rose 0.4% to close at 7,196.5. Gains were led by the
Financial index rising 0.5%, while the Services index rose marginally. Financial
Services gained 8.6%, while Al Madina Takaful was up 3.3%.
Bahrain: The BHB index gained 0.9% to close at 1,484.1. The Investment
index rose 2.2%, while the Commercial Banking index was up 0.7%. Arab
Banking Corporation gained 5.4%, while Esterad Investment Co. was up 4.0%.
Qatar Exchange Top Gainers Close* 1D% Vol. ‘000 YTD%
Dlala Brokerage & Inv. Holding Co. 58.30 7.6 719.1 163.8
Qatar General Ins. & Reins. Co. 48.00 4.6 36.0 20.2
Doha Bank 61.40 4.2 502.1 5.5
Qatar Gas Transport Co. 23.95 3.7 2,348.4 18.3
Vodafone Qatar 20.10 3.4 3,484.5 87.7
Qatar Exchange Top Vol. Trades Close* 1D% Vol. ‘000 YTD%
Vodafone Qatar 20.10 3.4 3,484.5 87.7
Barwa Real Estate Co. 43.10 0.8 3,337.8 44.6
Salam International Investment Co. 19.00 1.1 3,076.2 46.0
Qatar Gas Transport Co. 23.95 3.7 2,348.4 18.3
Masraf Al Rayan 55.10 1.1 2,250.1 76.0
Market Indicators 16 Jul 14 15 Jul 14 %Chg.
Value Traded (QR mn) 1,008.8 569.0 77.3
Exch. Market Cap. (QR mn) 710,026.2 707,330.9 0.4
Volume (mn) 23.3 10.9 114.2
Number of Transactions 10,050 6,177 62.7
Companies Traded 43 40 7.5
Market Breadth 30:10 31:8 –
Market Indices Close 1D% WTD% YTD% TTM P/E
Total Return 19,647.92 0.6 2.0 32.5 N/A
All Share Index 3,322.99 0.5 1.7 28.4 15.8
Banks 3,187.31 0.4 1.4 30.4 15.7
Industrials 4,346.22 (0.4) 0.6 24.2 17.0
Transportation 2,328.37 2.1 4.1 25.3 14.5
Real Estate 2,800.71 0.6 2.4 43.4 14.0
Insurance 3,816.28 1.1 7.2 63.4 9.5
Telecoms 1,675.86 1.7 1.5 15.3 23.1
Consumer 7,006.64 0.9 2.2 17.8 27.6
Al Rayan Islamic Index 4,399.71 0.6 1.7 44.9 19.0
GCC Top Gainers##
Exchange Close#
1D% Vol. ‘000 YTD%
Com. Bank Of Dubai Dubai 6.25 5.9 356.9 45.0
Dubai Financial Market Dubai 3.64 5.5 40,583.6 47.4
Arab Banking Corp Bahrain 0.78 5.4 20.0 108.0
Dubai Investments Dubai 3.60 5.0 75,983.8 54.7
Al-Qurain Petrochem. Kuwait 0.26 4.8 779.8 17.1
GCC Top Losers##
Exchange Close#
1D% Vol. ‘000 YTD%
Tabuk Cement Saudi Arabia 30.51 (4.2) 504.5 7.8
Qassim Cement Saudi Arabia 98.57 (3.8) 85.4 10.1
Saudi Pharmaceutical Saudi Arabia 46.18 (2.7) 512.1 8.7
Saudi Ceramic Saudi Arabia 136.54 (2.5) 296.4 22.5
RAKBANK Abu Dhabi 8.70 (2.1) 87.4 21.9
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%
Zad Holding Co. 80.00 (2.7) 1.0 15.1
Al Ahli Bank 52.10 (1.7) 6.0 23.1
Commercial Bank of Qatar 69.00 (1.4) 504.2 16.9
Qatari Investors Group 55.40 (1.2) 79.7 26.8
Qatar Islamic Insurance Co. 81.00 (1.2) 10.3 39.9
Qatar Exchange Top Val. Trades Close* 1D% Val. ‘000 YTD%
Barwa Real Estate Co. 43.10 0.8 144,471.5 44.6
Masraf Al Rayan 55.10 1.1 124,924.6 76.0
QNB Group 178.00 0.1 75,741.1 3.5
Vodafone Qatar 20.10 3.4 69,135.8 87.7
Salam International Investment Co 19.00 1.1 58,440.0 46.0
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* 13,173.34 0.6 2.0 14.7 26.9 277.09 195,044.2 16.2 2.2 3.8
Dubai 4,858.29 1.9 6.2 23.2 44.2 768.23 92,985.8 26.1 1.9 2.1
Abu Dhabi 4,985.50 1.2 2.9 9.5 16.2 113.11 137,945.2 14.7 1.8 3.3
Saudi Arabia 9,810.81 0.1 0.1 3.1 14.9 1,630.76 534,349.6 19.5 2.4 2.9
Kuwait 7,111.66 0.1 0.5 2.0 (5.8) 52.84 111,685.7 16.9 1.1 3.9
Oman 7,196.52 0.4 0.1 2.7 5.3 17.52 26,507.1 12.3 1.7 3.9
Bahrain 1,484.12 0.9 3.0 4.0 18.8 3.28 54,366.5 11.6 1.0 4.6
Source: Bloomberg, Qatar Exchange, Tadawul, Muscat Securities Exchange, Dubai Financial Market and Zawya (** TTM; * Value traded ($ mn) do not include special trades, if any)
13,050
13,100
13,150
13,200
13,250
13,300
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 QE index rose 0.6% to close at 13,173.3. The
Transportation 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.
 Dlala Brokerage & Investments Holding Co. and Qatar General
Insurance and Reinsurance Co. were the top gainers, rising
7.6% and 4.6%, respectively. Among the top losers, Zad Holding
Co. fell 2.7%, while Al Ahli Bank declined 1.7%.
 Volume of shares traded on Wednesday rose by 114.2% to
23.3mn from 10.9mn on Tuesday. Further, as compared to the
30-day moving average of 15.2mn, volume for the day was
54.0% higher. Vodafone Qatar and Barwa Real Estate Co. were
the most active stocks, contributing 14.9% and 14.3% to the total
volume respectively.
Source: Qatar Exchange (* as a % of traded value)
Ratings, Earnings and Global Economic Data
Ratings Updates
Company Agency Market Type* Old Rating New Rating Rating Change Outlook Outlook Change
National Bank of
Abu Dhabi (NBAD)
CI
Abu
Dhabi
FSR/LT FCR/ST
FCR/SR
A+/AA-/A1+/1 A+/AA-/A1+/1 – Stable –
Bank Muscat S&P Oman LT CCR/ST CCR/SACP A-/A-2/bbb+ A-/A-2/a- – Stable –
Source: News reports (* LT – Long Term, ST – Short Term, FSR- Financial Strength Rating, FCR – Foreign Credit Rating, LCR – Local Currency Rating, IDR – Issuer Default Rating, SR – Support Rating, LC –
Local Currency, CCR – Counterparty Credit Ratings, SACP- Stand-alone Credit Profile)
Earnings Releases
Company Market Currency
Revenue
(mn)2Q2014
% Change
YoY
Operating Profit
(mn) 2Q2014
% Change
YoY
Net Profit (mn)
2Q2014
% Change
YoY
Alinma Tokio Marine Co.
(ATMC)
Saudi SR 35.4 100.9% – – -10.0 NA
Tabuk Agriculture
Development Co. (TADCO)
Saudi SR – – -1.3 NA 0.5 -79.8%
Saudi Enaya Cooperative
Insurance Co. (Enaya)
Saudi SR 4.8 -85.3% – – -11.3 NA
Takween Advanced
Industries (Takween)
Saudi SR – – 10.8 -19.4% 27.8 65.5%
National Gas &
Industrialization Co. (NGIC)
Saudi SR – – 32.8 -12.8% 38.2 1.1%
Saudi Printing & Packaging
Co. (SPPC)
Saudi SR – – 23.1 -24.5% 12.5 -38.1%
Methanol Chemicals Co.
(Chemanol)
Saudi SR – – 21.8 124.4% 15.9 39550.0%
The Co. for Cooperative
Insurance
Saudi SR 1,478.44 -2.8% – – 193.2 2753.7%
Umm Al-Qura Cement Co. Saudi SR – – -11.7 NA -11.7 NA
Saudi Steel Pipe Co. Saudi SR – – 19.9 -24.9% 15.6 -38.1%
Arabian Cement Co. Saudi SR – – 212.9 78.3% 199.8 60.2%
Mobile Telecommunications
Co. Saudi Arabia (Zain)
Saudi SR – – -136.0 NA -329.0 NA
Saudi Arabia Refineries Co. Saudi SR – – 14.7 -1.0% 14.6 2.8%
National Metal
Manufacturing & Casting Co.
Saudi SR – – 10.0 78.2% 8.8 108.5%
Savola Group Saudi SR – – 694.4 7.1% 513.3 32.4%
Saudi Kayan Petrochemical
Co.
Saudi SR – – 4.8 NA -133.1 NA
Buruj Cooperative Insurance
Co. (BCIC)
Saudi SR 120.6 73.1% – – -0.2 NA
City Cement Co. Saudi SR – – 65.2 -17.4% 62.2 -14.7%
Insurance House Co. (IH)* Abu Dhabi AED 58.1 39.2% 3.6 NA 4.2 NA
Manazel Holding Co.* Kuwait KD – – – – 1.7 -11.1%
Mobile Telecommunications
Co. (Zain Group)
Kuwait KD 316.0 1.0% – – 59.0 -2.7%
Oman Packaging Co.
(OPC)*
Oman OMR 6.3 -0.8% – – 0.1 -76.9%
Al Batinah Dev. Inv. Holding
(ABDIH)*
Oman OMR 2.2 146.4% – – 0.8 1638.1%
Oman Fiber Optic Co.
(OFO)*
Oman OMR 12.1 -17.8% – – 3.9 109.8%
Source: Company data, DFM, ADX, MSM (*1H2014 results)
Overall Activity Buy %* Sell %* Net (QR)
Qatari 63.31% 70.54% (72,822,900.92)
Non-Qatari 36.68% 29.47% 72,822,900.92

3. Page 3 of 8
Global Economic Data
Date Market Source Indicator Period Actual Consensus Previous
07/16 US MBA MBA Mortgage Applications 11 July -3.60% – 1.90%
07/16 US BLS PPI Final Demand MoM June 0.40% 0.20% -0.20%
07/16 US BLS PPI Final Demand YoY June 1.90% 1.90% 2.00%
07/16 US US Treasury Total Net TIC Flows May $35.5B – $120.9B
07/16 US Federal Reserve Industrial Production MoM June 0.20% 0.30% 0.50%
07/16 US Federal Reserve Capacity Utilization June 79.10% 79.30% 79.10%
07/16 US Federal Reserve Manufacturing (SIC) Production June 0.10% 0.30% 0.40%
07/16 US NAHB NAHB Housing Market Index July 53.0 50.0 49.0
07/16 EU Eurostat Trade Balance SA May 15.3B 16.0B 15.2B
07/16 EU Eurostat Trade Balance NSA May 15.4B 16.5B 15.4B
07/16 UK ONS Claimant Count Rate June 3.10% 3.10% 3.20%
07/16 UK ONS Average Weekly Earnings 3M/YoY May 0.30% 0.50% 0.80%
07/16 UK ONS ILO Unemployment Rate 3Mths May 6.50% 6.50% 6.60%
07/16 UK ONS Employment Change 3M/3M May 254K 243K 345K
07/16 China NBS Fixed Assets Ex Rural YTD YoY June 17.30% 17.20% 17.20%
07/16 China NBS Retail Sales YTD YoY June 12.10% 12.20% 12.10%
07/16 China NBS Retail Sales YoY June 12.40% 12.50% 12.50%
07/16 China NBS Industrial Production YTD YoY June 8.80% 8.80% 8.70%
07/16 China NBS Industrial Production YoY June 9.20% 9.00% 8.80%
07/16 China NBS GDP YTD YoY 2Q2014 7.40% 7.40% 7.40%
07/16 China NBS GDP SA QoQ 2Q2014 2.00% 1.80% 1.50%
07/16 China NBS GDP YoY 2Q2014 7.50% 7.40% 7.40%
Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted)
News
Qatar
 DHBK 2Q2014 YoY profitability driven on the back of core
banking income aided by investment income – DHBK
reported a net profit of QR387.7mn, broadly inline with our
estimate of QR384.3mn (BBG consensus: QR375.8mn and
Reuters consensus: QR380.4mn). Net profit grew by 9.8% YoY
(down 2.9% QoQ). The robust performance on a YoY basis was
mainly attributed to core banking income complimented by
investment income. DHBK posted a net interest income of
QR490.1mn, increasing by 5.6% YoY (+1.0% QoQ). The bank’s
annualized NIM continued to remain under pressure (3.0% in
2Q2014 vs. 3.09% in 1Q2014). Moreover fees and commissions
surged by 35.1% YoY (+44.3% QoQ) reaching QR137.1mn. On
the other hand, weak QoQ profitability was due to a surge in
loan loss provisions (QR95.5mn in 2Q2014 vs. QR56.4mn in
1Q2014) coupled with an 18.6% rise in operating expenses
(+17.1% YoY). Doha Bank’s loans and deposits grew by 10.2%
(+4.4% QoQ) and 4.6% (+2.3% QoQ) YTD, respectively. Thus,
Doha Bank’s LDR rested at 102% at the end of 2Q2014 vs.
100% at the end of 1Q2014 (97% at the end of 2013). On the
other hand, the bank’s investment portfolio receded by 2.4%
QoQ (down 16.1% YTD). (QNBFS, QE)
 DBIS registers a strong YoY comeback with a net profit of
QR33.7mn in 2Q2014 – Dlala Brokerage & Investments Holding
Company (DBIS) reported a net profit of QR33.7 in 2Q2014 as
compared to a net loss of QR39.2mn in 2Q2013. The
Company’s EPS stood at QR1.52 in 2Q2014 vs. a loss of
QR1.76 in 2Q2013. DBIS’ net brokerage & commission income
rose to QR24.6mn in 2Q2014 compared to QR8.6mn in
2Q2013.The Company’s investment income also grew strongly
to QR15.2mn in 2Q2014 as compared to QR3.0mn in
2Q2013.(QE)
 MCGS posted a net profit of QR47.0mn in 2Q2014, up
124.1% YoY – Medicare Group (MCGS) reported a net profit of
QR81.0mn in 1H2014 as compared to QR45.3mn in 1H2013.
For 2Q2014, the company posted a net income of QR47.0mn
representing a 124.1% YoY growth (+37.8% QoQ basis).
MCGS’ EPS stood at QR2.88 as of June 30, 2014 vs. QR1.61
for the corresponding period in 2013. The company’s operating
income grew 21.6% YoY to QR134.9mn in 2Q2014 (+13.5%
QoQ basis). (QE)
 UNCTAD: Qatar’s outward FDI increases to $8.02bn –
Qatar’s outward foreign direct investment (FDI) flow surged to
$8.02bn in 2013, accounting for 14% of the country’s gross fixed
capital formation (GFCF) as compared to $1.8bn (3.4% of
GFCF) in 2012. GFCF is a measure of the investment value of a
country’s acquisitions of new or existing fixed assets.
Separately, Qatar’s outward FDI stocks also jumped in 2013.
According to United Nations Conference on Trade and
Development (UNCTAD) World Investment Report 2014, the
outward FDI stocks jumped to $28bn, as compared to $20bn
recorded in 2012. But the inward FDI stocks dropped marginally
to $29bn from $30bn.The inward FDI flows also shrank minus
$840mn of GFCF as compared to 2012’s $327mn. (Peninsula
Qatar)
 ABank bond offers pick-up to parent CBQK – Turkey-based
Alternatifbank (ABank) appeared to be offering a 45-55 basis
point pick-up to majority owner Commercial Bank of Qatar
(CBQK) when it set guidance for a new five-year note. The
lender, rated A1/A-/A, set initial price thoughts of 160-170 bps
over mid-swaps on a new Reg S only senior unsecured note
with the deal size expected to be $250mn. CBQK owns a
74.25% stake in ABank. CBQK recently issued a 2.875%, 2019
note that was trading at a Z-spread of 109 bps around the time
of announcement. A new five-year CBQ trade would price
around Z+115 bps, suggesting that the pick-up on offer is
around 45-55 bps. (Reuters)
 Qatari real estate deals stood at QR25.43bn in 1H2014 – The
real estate registration department at the Ministry of Justice
registered transactions amounted to around QR25.43bn in

4. Page 4 of 8
1H2014. The list of properties traded in 1H2014 includes open
plots of land, two-floor villas, annexes, houses, towers,
residential buildings, complexes and shops. These are located
in the municipalities of Umm Salal, Al Khor, Al Dhakira, Doha, Al
Rayyan, Al Shamal, Al Daayen and Al Wakra. The total
transactions in January amounted to QR4.75bn as compared to
QR2.87bn in February, QR4.199bn in March, QR3.39bn in April,
QR6.24bn in May, and QR3.96bn in June. (Bloomberg)
 ORDS to pay interest to GMTN holders on August 18 & 21 –
Ooredoo’s (ORDS) announced that its wholly-owned subsidiary
Ooredoo International Finance (OIFL) will pay its Global Medium
Term Note (GMTN) holders principal and interest payments on
August 18, 2014 and August 21, 2014. (QE)
 QA finalizes $18.9bn Boeing 777X plane deal – Boeing
Company said that Qatar Airways (QA) has finalized an order for
50 777-9Xs wide-body jets, worth $18.9bn at current list prices.
QA has also agreed to rights to buy 50 additional 777-9X jets. If
the rights are exercised, QA’s 777X order would increase to 100
airplanes, valued at $37.7bn at list prices. According to Boeing,
QA also plans to order four 777 Freighters with an option for four
more, which will have a combined value of $2.4bn at list prices.
(Reuters)
 Healthcare providers under SAHA to double in next phase –
The National Health Insurance Company’s (NHIC) Acting CEO
Dr. Faleh Mohamed Hussein Ali has said that the number of
clinics and hospitals that will provide services under the Social
Health Insurance System (SAHA) will double in the next phase
to 100 from the current 52. The healthcare providers include
public and private hospitals, as well as medical complexes and
clinics. Further, he revealed that more than 150,000 citizens had
benefited within two months of the launch of the second phase
of SAHA on April 30. Dr. Faleh warned against the manipulation
of the system, which could be committed by some clinics or
hospitals, such as giving drugs not needed by the patient,
repetition of medical tests or treatment of a patient for diseases
which are not included in the insurance coverage such as plastic
surgery of the nose and recorded on grounds of the correction of
a congenital defect. Dr. Faleh warned that clinics and hospitals
are under the control of the National Health Insurance Company
and the security authorities responsible for maintaining the
State’s public funds. (Gulf-Times.com)
International
 US factory output surges in second quarter, housing
improving – US manufacturing output rose at its fastest pace in
more than two years in the second quarter, suggesting the
economy was regaining enough momentum to lift growth
throughout the year. Recent data showed inflation stirring at the
factory gate and the housing market getting back on track after
its recovery stalled late last year. The Federal Reserve said
factory production increased at a 6.7% annual rate, the quickest
pace since the first quarter of 2012. That was a signficiant
increase from the January-March period's tepid 1.4% pace.
However, the manufacturing output increased only 0.1% in June
after a 0.4 % gain in the prior month. But a strong performance
in the second quarter coupled with a report on Tuesday that
showed a surge in factory activities in New York state left
economists confident the sector was on solid ground and would
continue to support the overall economy. (Reuters)
 Yellen says asset values are not out of line with past norms
– Federal Reserve Chairman Janet Yellen said stock and bond
valuations are not out of line with historical norms even as some
prices seem on the “high side.” Yellen told lawmakers on the
second day of the semi-annual testimony that Fed officials are
watching for excessive risk-taking, mindful that holding interest
rates low can prompt a “reach for yield.” She considers
safeguarding financial stability a Fed mandate, reserved the
right to aid failing broker-dealers and called a proposal to require
the Fed to adopt a rule for monetary policy a “grave mistake.”
Yellen said the threats to financial stability are at a moderate
level and not at a high level. She further added that while “some
pockets” show “stretched” valuations, traditional gauges “are not
outside of historical norms” and there are no “alarming warning
signals”across markets. The Fed chief said accommodation is
necessary even if it may prompt investors to take on more risk.
Yellen said she is “optimistic about the economy,” while
answering questions on topics ranging from bank regulation and
mortgage lending to auto sales & industrial output. (Bloomberg)
 British pay growth slows to record low even as jobless rate
falls – British workers' earnings grew at the slowest rate on
record in the three months to May, one gauge showed, even as
unemployment fell further, giving the Bank of England pause for
thought as it prepares to start raising interest rates. Official data
released on Wednesday showed earnings, excluding bonuses
rose by an annual 0.7% in the three months through May. That
was less than half the rate of inflation and the slowest growth in
regular pay since records began in 2001, taking some of the
shine off the economic recovery which Britain's ruling
Conservative Party is hoping will help deliver success in next
year's national elections. British government bond prices briefly
rose and sterling fell on the weak earnings numbers, which
could ease pressure on the BoE to raise interest rates later this
year. (Reuters)
 BRICS ink $50bn lender in World Bank, IMF challenge –
Leaders of the five BRICS nations have agreed on the structure
of a $50bn development bank by granting China its
headquarters and India its first rotating presidency. Brazil,
Russia and South Africa were given posts or units in the new
bank. According to a statement issued at a summit in Fortaleza,
Brazil the leaders also formalized the creation of a $100bn
currency exchange reserve, which member states can tap in
case of balance of payment crises. Both initiatives, which
require legislative approval, are designed to provide an
alternative to financing from the International Monetary Fund
and the World Bank, where BRICS countries have been seeking
more say. According to economists surveyed by Bloomberg, the
measures coincide with a slowing of economic growth in the five
countries to about 5.4% this year from 10.7% in 2007. According
to an e-mailed statement, IMF Managing Director Christine
Lagarde congratulated the BRICS on establishing the reserve
arrangement and said the Washington-based lender would be
“delighted” to work together on the international safety net
designed to preserve financial stability. (Bloomberg)
 China, Japan add treasuries on US yield advantage – China
and Japan, the two largest foreign buyers of Treasuries,
increased their holdings of the debt in May as US yields that
were higher than those of Germany and most other large
sovereign issuers boosted demand. The two countries, which
held a total of $2.49tn of US government securities, or 21% of
the $12.08tn of the publicly held debt, were the biggest overseas
buyers of Treasuries for the month, with Japan purchasing
$10.4bn and China $7.7bn. Total foreign holdings rose $15.1bn,
the 10th consecutive monthly gain, the longest streak of
purchases since January 2012 through March 2013. Overseas
investors have boosted the pace of their purchases this year,
increasing their stake in the debt by $174bn or 2.7% this year, to
a record $5.98tn. That compares with $228.2bn for all of 2013,
indicating a 4.1 % rise that was the smallest since 2006.
(Bloomberg)

5. Page 5 of 8
 Litigation costs hit Bank of America's quarterly profit –
Bank of America Corp said its second-quarter profit fell 43%, a
bigger decline than analysts had expected, after it posted $4bn
of litigation expenses linked to mortgage disputes following the
financial crisis. The expenses included a $650mn settlement
with American International Group and money it set aside for an
expected settlement with the Department of Justice. Bank of
America has already agreed to pay $50bn to settle
disagreements stemming from the market meltdown in 2008.
The expenses far exceeded the $471mn in legal charges the
bank posted in last year's second quarter, although it was less
than the $6 billion it recorded in this year's first quarter. Higher
legal costs overshadowed the increased profits that many of the
bank's main businesses posted. Retail banking earnings,
including credit cards, rose 28.5% to $1.79bn. Commercial and
investment banking profit rose 4.3% to $13.5bn, thanks in part to
a record quarter in underwriting equities. (Reuters)
Regional
 Naru Capital ties up with SABS Group for real estate deals
in Riyadh – Naru Capital has signed a partnership deal with
Saudi-based Salman Abdullah Bin Saedan Real Estate Group
(SABS Group) to achieve higher returns in real estate deals in
Riyadh. As a deal facilitator, Naru Capital has drawn upon its
extensive contacts book of trusted investors to introduce an
exciting Bin Saedan Real Estate Fund, and capitalize on the
extraordinary returns available through its Private Real Estate
Multi-Project Fund, worth SR170mn. (GulfBase.com)
 Saudia carries 14mn passengers in 1H2014 – Saudi Arabian
Airlines’ (Saudia) Acting Director General, Abdul Aziz Al-Hazmi,
said that the airline carried more than 14mn passengers on
94,000 flights in 1H2014. The company achieved an on-time
performance of 90.06% over the same period. There was a 11%
increase in the number of passengers carried during the
reporting period as it rose from 12.7mn to 14.1mn. The number
of flights operated by the airline in 1H2014 jumped 8% from
87,389 to 94,069. Saudia ferried 7.84mn passengers between
the Kingdom’s cities as against 7.41mn in 1H2013. The airline
operated 59,404 domestic flights in the first half of 2014 with an
on-time performance of 90.83%.The number of passengers
grew by 5.8% in the domestic sector and number of flights grew
4% as compared to 1H2013. The domestic sector accounted for
67.89% of flights and 55.71% of passengers in 1H2014. On the
international sector, Saudia carried 6.23mn passengers in
1H2014 as against 5.26mn in 1H2013, indicating an increase of
18.46% or 971,786 passengers. (GulfBase.com)
 GASCO signs deal with JIPCO for purchase of 100
Mercedes-Benz trucks – The National Gas and Industrial
Company (GASCO) has signed an agreement with the Juffali
Industrial Products Company (JIPCO), the exclusive agent for
Mercedes-Benz trucks in Saudi Arabia. Under the terms of the
agreement, GASCO will acquire 100 Mercedes-Benz trucks.
(GulfBase.com)
 Flynas’ local market share rises to 15.9% – According to a
statistical report released by King Khalid International Airport
(KKIA), Flynas has transported 837,000 passengers onboard its
local flights from KKIA in 1H2014, up 34% as compared to
624,000 passengers in 1H2013, representing a growth of 34%.
The total market share of Flynas in the domestic aviation sector
rose to 15.92%, as compared to 13.51% in 1H2013. In addition,
the statistical data revealed that the number of passengers on
local flights has reached 5.3mn in 1H2014 as compared to
4.6mn in 1H2013, reflecting an increase of 13.8%.
(GulfBase.com)
 SaudiGulf signs maintenance service agreement with IAE;
taps V2500 engines for 4 aircrafts – Saudi Arabia-based
SaudiGulf Airlines has selected the International Aero Engines
(IAE) V2500 engine to power four A320ceo aircrafts and has
signed an eight-year V-Services (SM) maintenance service
agreement with IAE. SaudiGulf is planning to commence
services in 2015. IAE is a multinational aero engine consortium
whose shareholders comprise Pratt & Whitney, Pratt & Whitney
Aero Engines International GmbH, Japanese Aero Engines
Corporation and MTU Aero Engines. (GulfBase.com)
 ECRA: Saudi Arabia nears completion of joint electricity
projects – Saudi Electricity and Cogeneration Regulatory
Authority’s (ECRA) Deputy Governor, Nasser Al-Qahtani, said
that Saudi Arabia is nearing the completion of a number of joint
electricity projects with other countries in the MENA region, as it
seeks to boost sources for its domestic electricity consumption.
A number of studies are currently being conducted to finalize
projects linking Saudi Arabia’s electricity grid with countries in
the region, including Turkey and Egypt. The tenders for
contractors involved in the Saudi-Egyptian electricity grid project
have been delayed until December 2014. The project will allow
both Saudi and Egypt to generate and share an additional 3,000
megawatts of electricity during the peak hours via a 20 kilometer
underwater cable crossing the Gulf of Aqaba. (GulfBase.com)
 CDSI: Saudi Arabia June inflation unchanged at 2.7% –
According to the Central Department of Statistics and
Information (CDSI), Saudi Arabia's inflation rate remain
unchanged at 2.7%, YoY, for the third consecutive month in
June 2014. Foodstuffs, housing and related services remain the
main sources of inflation despite a MoM decline in food prices,
as core inflation stabilized for the second consecutive month in
June. The CDSI estimate of core inflation, which excludes food
& rent and other housing services, remained flat at 2.1% YoY for
the second consecutive month in June. Core inflation was
mainly driven by a seasonal increase in the home furniture
segment during the summer months (4.9% YoY), which carries
a 9.1% weight in the CPI basket. Foodstuffs, which account for
21.7% of the CPI basket, saw prices rise by 2.8% YoY in June,
adding 0.67% to the headline figure. At this level, the food index
recorded the lowest annual increase since April 2010. Rental
inflation climbed back over 4% in June. The increase in this
group is being driven by the rent component, which increased
4.6% YoY in June, as compared to 4.2% in May. Transport
inflation remained in the negative territory. The CDSI expects
inflation to gradually increase in 2H2014 as compared to
1H2014. (GulfBase.com)
 Saudi oil exports hit 1.38bn barrels in 1H2014 – According to
experts, Saudi Arabia exported nearly 1.38bn barrels of oil in
1H2014 that yielded SR565bn. The local consumption is
projected to hit 395mn barrels, or 22% of the total production
over the same period. (GulfBase.com)
 SASCO to distribute SR33.75mn dividend for 1H2014 –
Saudi Automotive Services Company (SASCO) has announced
the distribution of 7.5% dividend (SR0.75 per share) amounting
to SR33.75mn for 1H2014. The shareholders registered in the
registers of the Securities Depository Center (Tadawul) on July
23, 2014 will be eligible for dividends. The dividend distribution
date will be disclosed later. (Tadawul)
 Jarir Marketing to distribute SR108mn dividend for 2Q2014
– Jarir Marketing Company’s board of directors (BoD) has
recommended the distribution of 12% dividend (SR1.2 per
share) amounting to SR108mn for 2Q2014. The shareholders
registered in the registers of the Securities Depository Center

6. Page 6 of 8
(Tadawul) on August 5, 2014 will be eligible for dividends. The
dividends will be distributed on August 8, 2014. (Tadawul)
 Tadawul to be remain closed from July 25 on occasion of
Eid Al Fitr – The Saudi Stock Exchange (Tadawul) will
remained closed from July 25, 2014 on the occasion of Eid Al
Fitr. Trading will resume on August 3, 2014. (Tadawul)
 Savola Group to distribute SR266.99mn dividends for
2Q2014 – The Savola Group’s board of directors has approved
the distribution of 5% dividends (SR0.50 per share) amounting
to SR266.99mn for 2Q2014. The shareholders registered in the
company books at the end of the trading day on July 23, 2014
will be eligible for dividends. The dividend payments will be
processed as of August 11, 2014. (Tadawul)
 Sipchem to distribute SR0.60 per share dividend for 1H2014
– Saudi International Petrochemical Company (Sipchem)
announced that the National Commercial Bank (NCB) will
distribute dividends to Sipchem shareholders for 1H2014 at rate
of SR0.60 per share on July 17, 2014. The eligibility of dividends
shall be for the shareholders registered in the registers of
Sipchem in the Securities Depository Center (Tadawul) on July
6, 2014. (Tadawul)
 Saudi CMA approves SVCIC’s capital reduction – Saudi
CMA’s board of commissioners has approved the Saudi Venture
Capital Investment Company’s (SVCIC) request to decrease its
capital from SR375mn to SR251.25mn. (Tadawul)
 Saudi CMA approves Rasmala Saudi’s cancellation of
authorization – Saudi’s CMA board of commissioners has
approved the Rasmala Investments Saudi Arabia Company’s
(Rasmala Saudi) request to cancel the authorization to conduct
the securities business of arranging and advising. (Tadawul)
 Saudi CMA approves SGSAR’s business profile amendment
– Saudi’s CMA board of commissioners has approved the
Societe Generale Saudi Arabia’s (SGSAR) request to amend its
business profile by cancelling its dealing as agent, managing
investment fund, discretionary portfolio management, and
custody. SGSAR is now authorized to conduct arranging and
advising activities. (Tadawul)
 Bank Aljazira reports net profit of SR166.7mn in 2Q2014 –
Bank Aljazira reported a net profit of SR166.7mn in 2Q2014 as
compared to SR167.4mn in 2Q2013. The net profit for 1H2014
reached SR326mn as compared to SR312mn in 1H2013,
reflecting an increase of 4.5%. The bank’s total assets stood at
SR65.8bn at the end of June 2014 as compared to SR56.3bn a
year earlier. EPS amounted to SR0.82 as compared to SR0.78
a year earlier. Loans & advances stood at SR38.9bn, while
customer deposits stood at SR51.8bn. (Tadawul)
 Etihad chief aims to seal Alitalia deal as union warns on
jobs – Etihad Airways’ CEO James Hogan said that a deal to
acquire nearly half of Alitalia could be wrapped up this month
but warned that cuts would be needed to make the loss-making
carrier profitable, prompting opposition from Italy's largest union.
Abu Dhabi's state-owned Etihad plans to buy 49% of the loss-
making airline in a deal that Rome hopes will bring Alitalia the
money it needs to invest in a new strategy focused on more
lucrative long-haul routes. CEO James said that while all parties
were focusing on concluding the negotiations by the end of this
month, the deadline could be extended if needed. A final
agreement has been held up by talks over thousands of job cuts
and debt restructuring at Alitalia requested by Etihad as a
condition for the deal. (Reuters)
 ACC wins contract to build 81-storey tower in India – UAE-
based Arabian Construction Company (ACC) has been awarded
a contract by realty organization Brys Group to build an 81-
storey tower in Noida, northern India. The project will be the
second ACC will be undertaking in the territory and its fourth in
India. (GulfBase.com)
 Diagnos signs contract with Al Manama Medical Center –
Canada-based healthcare technical services provider, Diagnos
Inc. has signed a contract with Al Manama Medical Center for
the deployment of a screening unit and usage of CARA in the
UAE, a project fully supported by the UAE Ministry of Health.
(Bloomberg)
 Aabar in talks for 50% of Ex-CEO’s Arabtec stake –
According to sources, Aabar Investments is engaged in talks to
acquire at least half of a 28.9% stake in Arabtec Holding from
former-CEO, Hasan Ismaik. Aabar is reportedly negotiating a
price of AED5 to AED6 per share. At the top end of that range,
half of Ismaik’s 1.27bn shares would be worth about $1.03bn.
The transaction is likely to increase Aabar’s holding in Arabtec
to more than 30%, making it the company’s largest shareholder.
(Bloomberg)
 DNIR appoints General Manager – Dubai National Insurance &
Reinsurance Company (DNIR) has promoted Ramez Abou Zaid
to the General Manager position of the company. (DFM)
 DEWA awards Solar Innovation Center contract – Dubai
Electricity and Water Authority (DEWA) has awarded the
consultancy services to design and supervise the construction of
its new project, Solar Innovation Center (SIC), to a US-based
Ted Jacobs Engineering Group (TJEG). The SIC will be a main
focal point for companies, researchers, university students,
individuals working in the field of solar energy as well as for
developers and manufacturers of clean-energy technologies.
The center is expected to be completed by November 2015.
(Bloomberg)
 Dana Gas gets approval for AED7.3mn capital increase –
The Competent Authorities have approved the increase of Dana
Gas’ share capital by AED7.3mn arising out of the conversion of
voluntary conversion notices that amounted to $1.5mn of
convertible Sukuks. The company has submitted the required
applications and documents to the Abu Dhabi Securities
Exchange (ADX) to deliver the shares to the relevant Sukuk
certificate holders. (GulfBase.com)
 Aldar signs deal with Retail Arabia – Aldar Properties has
signed a partnership agreement with Retail Arabia, a leading
regional retail franchise owner for Yas Mall. The partnership
includes a new concept House of Fraser department store
spanning 110,000 square feet, the first Hamleys store in Abu
Dhabi, as well as the first Joe Fresh store in the UAE.
(GulfBase.com)
 Gulf Capital to consider IPO – Private-equity firm Gulf Capital
is considering an initial public offering (IPO) in what would be
the UAE’s first listing of a buyout firm. The firm has hired
advisors, including National Bank of Abu Dhabi to help arrange
the sale on the Abu Dhabi stock exchange. (Bloomberg)
 NBK 2Q2014 profit jumps 29% to KD60.9mn – National Bank
of Kuwait (NBK) reported a net profit of KD60.9mn in 2Q2014 as
compared to KD47.2mn in 2Q2013, reflecting an increase of
29%. The bank's net profit in 1H2014 also increased 12.6% to
KD144.8mn from KD128.5mn in 1H2013. The bank's assets
grew by 11.7% to KD20bn as on June 30, 2014 from a year
earlier. Loans & advances rose 9.6% YoY and stood at
KD11.3bn. (Reuters)
 Boubyan Bank reports net profit of KD12.57mn in 1H2014 –
Boubyan Bank reported net profit of KD12.57mn in 1H2014 as

7. Page 7 of 8
compared to KD6.26mn in 1H2013. EPS amounted to 6.40 fils
as compared to 3.19 fils a year earlier. (Bloomberg)
 OTI signs 1.05bn uncommitted borrowing base facility –
Oman Trading International (OTI) has signed a $1.05bn
uncommitted borrowing base facility. The facility will be used for
meeting the company’s working capital needs and the
refinancing of the previous $600mn club deal facility. The facility
was launched at $800mn on April 11, 2014 and was
substantially oversubscribed in syndication, enabling an
increase of the facility size to $1.05bn, while still scaling back
lenders’ participations. The facility has a tenor of 36 months
from the closing date of July 3, 2014 and further diversifies OTI’s
banking relationships. (GulfBase.com)
 GPIC secures ISO certification – Gulf Petrochemical
Industries Company (GPIC) has secured the ISO 17025:2005
quality standard certification. The certification relates to general
requirements for efficiency testing laboratories, calibration by the
International Service for Reliability based in the US and approval
by the International Co-operation Agency of reliability
laboratories. This is a proof that the company's laboratory
operations match international standards in testing and
examination of products to ensure compliance with the highest
degree of health and safety. The certification is expected to
remove technical obstacles to the commercial exchanges & sale
of the company's products to various countries. GPIC was the
first Bahraini oil & gas company to receive the ISO 17025:2005
certificate of reliability without the help of any external
specialized expertise. (GulfBase.com)
 CBB: Sukuk Al Ijara oversubscribed by 240% – The Central
Bank of Bahrain (CBB) announced that the monthly issue of
Sukuk Al Ijara short-term Islamic leasing bonds has received
subscription to the tune of 240%. Subscriptions worth BHD48mn
were received for the BHD20mn issue. The issue, carrying a
maturity of 182 days, matures on January 15, 2015. The
expected return on the issue is 0.80% as compared to 0.85% for
the previous issue dated June 19, 2014. (GulfBase.com)
 VIVA signs deal with Fakhro Group – VIVA Bahrain has
entered into a partnership with the Fakhro Group to offer state-
of-the-art IP PBX and unified information & communications
technology (ICT) bundled solutions. An IP PBX is a private
branch exchange (telephone switching system within an
enterprise) that switches calls between VoIP (Voice over
Internet Protocol or IP) users on local lines while allowing all
users to share a certain number of external phone lines.
(GulfBase.com)

8. Contacts
Saugata Sarkar Abdullah Amin, CFA Shahan Keushgerian
Head of Research Senior Research Analyst Senior Research Analyst
Tel: (+974) 4476 6534 Tel: (+974) 4476 6569 Tel: (+974) 4476 6509
saugata.sarkar@qnbfs.com.qa abdullah.amin@qnbfs.com.qa shahan.keushgerian@qnbfs.com.qa
Sahbi Kasraoui Ahmed Al-Khoudary QNB Financial Services SPC
Manager – HNWI Head of Sales Trading – Institutional Contact Center: (+974) 4476 6666
Tel: (+974) 4476 6544 Tel: (+974) 4476 6548 PO Box 24025
sahbi.alkasraoui@qnbfs.com.qa ahmed.alkhoudary@qnbfs.com.qa Doha, Qatar
DISCLAIMER: This publication has been prepared by QNB Financial Services SPC (“QNBFS”) a wholly-owned subsidiary of Qatar National Bank (“QNB”). QNBFS is regulated by the Qatar
Financial Markets Authority and the Qatar Exchange; QNB is regulated by the Qatar Central Bank. This publication expresses the views and opinions of QNBFS at a given time only. It is not an
offer, promotion or recommendation to buy or sell securities or other investments, nor is it intended to constitute legal, tax, accounting, or financial advice. We therefore strongly advise potential
investors to seek independent professional advice before making any investment decision. Although the information in this report has been obtained from sources that QNBFS believes to be
reliable, we have not independently verified such information and it may not be accurate or complete. While this publication has been prepared with the utmost degree of care by our analysts,
QNBFS does not make any representations or warranties as to the accuracy and completeness of the information it may contain, and declines any liability in that respect. QNBFS reserves the
right to amend the views and opinions expressed in this publication at any time. It may also express viewpoints or make investment decisions that differ significantly from, or even contradict, the
views and opinions included in this report.
COPYRIGHT: No part of this document may be reproduced without the explicit written permission of QNBFS.
Page 8 of 8
Rebased Performance Daily Index Performance
Source: Bloomberg Source: Bloomberg
Source: Bloomberg (*Market closed on 16 July 2014) Source: Bloomberg
80.0
90.0
100.0
110.0
120.0
130.0
140.0
150.0
160.0
170.0
180.0
190.0
200.0
210.0
Jul-10 Jul-11 Jul-12 Jul-13 Jul-14
QE Index S&P Pan Arab S&P GCC
0.1%
0.6%
0.1%
0.9%
0.4%
1.2%
1.9%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
SaudiArabia
Qatar
Kuwait
Bahrain
Oman
AbuDhabi
Dubai
Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D% WTD% YTD%
Gold/Ounce 1,299.20 0.4 (2.9) 7.8 DJ Industrial 17,138.20 0.5 1.1 3.4
Silver/Ounce 20.77 0.4 (3.2) 6.7 S&P 500 1,981.57 0.4 0.7 7.2
Crude Oil (Brent)/Barrel (FM
Future)
105.85 (0.2) (0.8) (4.5) NASDAQ 100 4,425.97 0.2 0.2 6.0
Natural Gas (Henry
Hub)/MMBtu
4.10 (0.3) 0.4 (5.6) STOXX 600 342.97 1.3 1.8 4.5
LPG Propane (Arab Gulf)/Ton* 103.75 0.0 0.4 (18.0) DAX 9,859.27 1.4 2.0 3.2
LPG Butane (Arab Gulf)/Ton 122.88 (0.1) (0.5) (9.5) FTSE 100 6,784.67 1.1 1.4 0.5
Euro 1.35 (0.3) (0.6) (1.6) CAC 40 4,369.06 1.5 1.2 1.7
Yen 101.67 (0.0) 0.4 (3.5) Nikkei 15,379.30 (0.1) 1.4 (5.6)
GBP 1.71 (0.0) 0.1 3.5 MSCI EM 1,066.83 0.0 0.8 6.4
CHF 1.11 (0.3) (0.7) (0.6) SHANGHAI SE Composite 2,067.28 (0.1) 1.0 (2.3)
AUD 0.94 (0.0) (0.3) 5.1 HANG SENG 23,523.28 0.3 1.2 0.9
USD Index 80.56 0.2 0.5 0.7 BSE SENSEX 25,549.72 1.3 2.1 20.7
RUB 34.41 0.1 0.6 4.7 Bovespa 55,717.36 (0.5) 1.7 8.2
BRL 0.45 (0.2) (0.1) 6.3 RTS 1,350.52 (0.1) (2.4) (6.4)
189.3
154.2
139.7