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QE Intra-Day Movement
Qatar Commentary
The QE Index rose 0.3% to close at 13,742.2. Gains were led by the Telecoms and Banks & Financial Services indices, gaining 1.8% and 0.9%, respectively. Top gainers were QNB Group and Qatar General Insurance and Reinsurance Co. rising 2.8% and 2.7%, respectively. Among the top losers, Al Meera Consumer Goods Co. fell 2.0%, while Qatari Investors Group declined 1.4%.
GCC Commentary
Saudi Arabia: The TASI Index fell 0.6% to close at 11,048.2. Losses were led by Banks & Fin. Services and Real Estate Dev. indices, falling 1.3% and 1.2%, respectively. Al-Khodari declined 3.8%, while Al Alamiya was down 2.7%.
Dubai: The DFM Index declined 0.5% to close at 5,115.4. The Real Estate & Construction index fell 1.7%, while the Services index was down 0.6%. Arab Insurance Group declined 9.1%, while National Industries Group fell 7.6%.
Abu Dhabi: The ADX benchmark index gained marginally to close at 5,129.1. The Consumer index rose 1.7%, while the Investment & Fin. Ser. index was up 1.0%. QCEM rose 10.8%, while Abu Dhabi Nat. Energy was up 3.4%.
Kuwait: The KSE Index rose 0.3% to close at 7,444.9. The Basic Material index gained 1.5%, while the Insurance index was up 1.0%. Ajwan Gulf Real Estate Co. gained 7.7%, while National Consumer Holding Co. was up 6.3%.
Oman: The MSM Index gained 0.6% to close at 7,400.0. Gains were led by the Financial and Services indices rising 1.1% and 0.6%, respectively. Oman and Emirates Inv. Holding and Al Jazeera Services were up 3.3% each.
Bahrain: The BHB Index declined 0.1% to close at 1,473.3. The Industrial index fell 1.0%, while the Services index was down 0.6%. Ithmaar Bank declined 2.9%, while Bahrain Telecommunication Company was down 1.1%.
Qatar Exchange Top Gainers Close* 1D% Vol. ‘000 YTD%
QNB Group
202.50
2.8
493.3
17.7 Qatar General Ins. and Reins. Co. 47.35 2.7 3.9 18.6 Ooredoo 126.00 2.4 202.4 (8.2) Commercial Bank of Qatar 70.60 2.0 580.9 19.7 Gulf International Services 118.00 1.2 136.4 141.8
Qatar Exchange Top Vol. Trades Close* 1D% Vol. ‘000 YTD%
Ezdan Holding Group
18.76
0.3
4,556.5
10.4 Mazaya Qatar Real Estate Dev. 25.00 0.0 2,196.7 123.6
Vodafone Qatar
21.30
0.3
1,346.5
98.9 Masraf Al Rayan 56.30 (1.1) 1,044.6 79.9
United Development Co.
29.00
(0.9)
648.3
34.7
Market Indicators 02 Sep 14 01 Sep 14 %Chg.
Value Traded (QR mn)
787.6
429.7
83.3 Exch. Market Cap. (QR mn) 729,765.4 725,835.3 0.5
Volume (mn)
16.8
9.7
72.8 Number of Transactions 7,559 4,707 60.6
Companies Traded
42
39
7.7 Market Breadth 19:19 23:12 –
Market Indices Close 1D% WTD% YTD% TTM P/E
Total Return
20,496.39
0.3
2.2
38.2
N/A All Share Index 3,476.33 0.4 1.7 34.3 17.0
Banks
3,405.25
0.9
2.3
39.3
16.7 Industrials 4,536.48 (0.3) (0.6) 29.6 18.4
Transportation
2,293.24
(0.1)
3.6
23.4
14.7 Real Estate 2,866.38 (0.7) 1.3 46.8 15.3
Insurance
4,083.08
0.1
(0.3)
74.8
12.9 Telecoms 1,603.48 1.8 10.2 10.3 22.7
Consumer
7,452.21
(0.2)
0.4
25.3
27.9 Al Rayan Islamic Index 4,702.29 (0.6) 1.6 54.9 20.3
GCC Top Gainers## Exchange Close# 1D% Vol. ‘000 YTD%
National Bank Of Bahrain
Bahrain
0.89
4.1
8.6
27.3 DP World Ltd. Dubai 19.69 3.6 100.6 11.2
Etihad Atheeb Telecom.
Saudi Arabia
12.14
3.4
8,060.6
(15.7) Abu Dhabi Nat. Energy Co. Abu Dhabi 1.22 3.4 907.6 (17.0)
QNB Group
Qatar
202.50
2.8
493.3
17.7
GCC Top Losers## Exchange Close# 1D% Vol. ‘000 YTD%
Salhia Real Estate Co.
Kuwait
0.37
(3.9)
3.0
(8.8) Emaar Properties Dubai 11.30 (3.0) 51,121.5 62.7
Ithmaar Bank
Bahrain
0.17
(2.9)
84.0
(28.3) Dana Gas Abu Dhabi 0.71 (2.7) 11,655.5 (22.0)
Saudi British Bank
Saudi Arabia
62.78
(2.3)
292.5
42.7
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%
Al Meera Consumer Goods Co.
185.70
(2.0)
57.1
39.3 Qatari Investors Group 57.40 (1.4) 53.1 31.4
Widam Food Co.
60.10
(1.3)
4.2
16.2 Qatar National Cement Co. 141.20 (1.3) 1.3 18.7
Qatar Islamic Bank
117.50
(1.2)
246.1
70.3
Qatar Exchange Top Val. Trades Close* 1D% Val. ‘000 YTD%
QNB Group
202.50
2.8
99,287.2
17.7 Ezdan Holding Group 18.76 0.3 86,331.8 10.4
Masraf Al Rayan
56.30
(1.1)
59,295.4
79.9 Mazaya Qatar Real Estate Dev. 25.00 0.0 54,967.9 123.6
Qatar International Islamic Bank
88.70
0.6
51,090.9
43.8
Source: Bloomberg (* in QR) Regional Indices Close 1D% WTD% MTD% YTD% Exch. Val. Traded ($ mn) Exchange Mkt. Cap. ($ mn) P/E** P/B** Dividend Yield
Qatar*
13,742.22
0.3
2.2
1.1
32.4
216.30
200,393.6
17.2
2.3
3.7 Dubai 5,115.44 (0.5) 3.8 1.0 51.8 402.80 98,261.9 21.2 1.9 1.9
Abu Dhabi
5,129.07
0.0
1.1
0.9
19.6
85.11
140,509.1
14.5
1.8
3.2 Saudi Arabia 11,048.19 (0.6) 0.1 (0.6) 29.4 2,767.52 599,217.7 21.2 2.7 2.6
Kuwait
7,444.94
0.3
0.6
0.2
(1.4)
86.09
113,449.4
18.3
1.2
3.7 Oman 7,400.04 0.6 0.5 0.4 8.3 16.49 27,198.7 11.1 1.7 3.7
Bahrain
1,473.29
(0.1)
(0.2)
0.1
18.0
0.84
54,372.0
11.3
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)
13,65013,70013,75013,80013,8509:3010:0010:3011:0011:3012:0012:3013:00

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Qatar Market Commentary
 The QE Index rose 0.3% to close at 13,742.2.The Telecoms and Banks & Financial Services 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 General Insurance and Reinsurance Co. were the top gainers, rising 2.8% and 2.7%, respectively. Among the top losers, Al Meera Consumer Goods Co. fell 2.0%, while Qatari Investors Group declined 1.4%.
 Volume of shares traded on Tuesday rose by 72.8% to 16.8mn from 9.7mn on Monday. However, as compared to the 30-day moving average of 17.9mn, volume for the day was 5.8% lower. Ezdan Holding Group and Mazaya Qatar Real Estate Development were the most active stocks, contributing 27.1% and 13.0% 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
Dar Al-Arkan Real Estate Development Company
Moody’s
Saudi Arabia
LT CFR/PDR
–
Ba3/ Ba3
–
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, CFR – Corporate Family Rating, PDR – Probability of Default Rating )
Global Economic Data Date Market Source Indicator Period Actual Consensus Previous
09/02
US
Markit
Markit US Manufacturing PMI
August
57.9
58.0
58.0 09/02 US ISM ISM Manufacturing August 59.0 57.0 57.1
09/02
US
SM
ISM Prices Paid
August
58.0
58.5
59.5 09/02 US US Census Bureau Construction Spending MoM July 1.80% 1.00% -0.90%
09/02
US
Bloomberg
IBD/TIPP Economic Optimism
September
45.2
45.5
44.5 09/02 EU Eurostat PPI MoM July -0.10% -0.10% 0.20%
09/02
EU
Eurostat
PPI YoY
July
-1.10%
-1.10%
-0.80% 09/02 UK Markit Markit/CIPS UK Construction PMI August 64.0 61.5 62.4
09/02
UK
London Gold Market Fix.
London Gold Market PM Fix
2-September
1,267.0
–
1,286.5 09/02 Spain Spanish Labour Ministry Unemployment MoM Net ('000s) August 8.1 21.8 -29.8
Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted
News
Qatar
 QCB auctions T-bills worth QR4bn – The Qatar Central Bank (QCB) has auctioned treasury bills worth QR4bh on September 2, 2014, for which it received bids totaling QR11.24bn. T-bills worth QR2bn with a three-month maturity period were auctioned at a yield of 0.71%. T-bills worth QR1bn with a six-month maturity period were sold at a yield of 0.89%, while T-bills worth QR1bn with a nine-month maturity period were auctioned at a yield of 0.99%. (QCB)
 Qatar real estate sector’s weekly deals drop 37.5% to QR473mn – Ezdan Real Estate Company citing a bulletin issued by the Real Estate Registration Department at the Ministry of Justice said that Qatar’s real estate sector saw transaction value drop 37.5% to QR473mn in the third week as against the previous week. However, the number of transactions witnessed a 9% growth to 150 deals as compared to 138 in the previous week. The average daily value of real estate transactions amounted to around QR94.6mn as against QR151.4mn in the previous week. Al Rayyan municipality recorded the largest number of transactions at 82 or 54.7% of the total deals at a total value of QR184.8mn, followed by Umm Salal 15 transactions (18.1%) at QR85.6mn and Doha 14 (23%) at QR108.6mn among others. In terms of total transactions
during the week in all regions, land lot transactions acquired 80.5% of the total property transactions, which amounted to QR381mn. Meanwhile, the volume of trading in real estate registered with the Real Estate Registration Department at Ministry of Justice during the period from August 24-28 stood at QR514.1mn. Most of the sales were registered in the municipalities of Umm Salal, Al-Khor, Al Thakhira, Doha, Al Rayyan, Al Za'ayen and Al Wakra. (Gulf-Times.com, Peninsula Qatar)
 QSTP partners with US-based GFCC – Qatar Science & Technology Park (QSTP) has joined the Global Federation of Competitiveness Councils (GFCC), based in Washington, DC. Dr. Thomas Zacharia, Executive Vice President, Research and Development, Qatar Foundation (QF) and Chairman of the QSTP Board, has been named in the GFCC Board. QSTP, part of QF’s Research & Development (QF R&D), was created to help develop Qatar’s “post-carbon economy” by encouraging companies and research institutes to create intellectual property and commercialize their technology in Qatar. (Gulf-Times.com)
 Barwa Bank appoints new Group Chief Administrative Officer and Head of Qatarization – Barwa Bank has appointed Abdulla Majed al-Malki as Group Chief Administrative Officer and Abdulaziz Sultan al-Kuwari as Head of Qatarization. Prior to Overall Activity Buy %* Sell %* Net (QR)
Qatari
58.53%
66.86%
(65,566,479.76) Non-Qatari 41.47% 33.14% 65,566,479.76

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joining Barwa Bank, al-Malki served as HR and Administration Manager at the Qatar Development Bank for four years, after spending nearly a decade at RasGas and a year at Qatari Diar. With more than five years of experience in the domain, al- Kuwari recently served as Qatarization and talent development manager at HSBC. His new position at Barwa Bank Group is aligned with the Qatar’s strategic plan to further develop the national workforce. (Gulf-Times.com)
 Q-Chem, Gasal sign long-term pipeline network agreement – Qatar Chemical Company (Q-Chem) and Gasal have signed a long-term pipeline network pact – a strategic deal by which Gasal will supply the necessary nitrogen for the Ras Laffan Olefins Company’s (RLOC) ethylene cracker in Ras Laffan Industrial City. Gasal, a JV involving Qatar Intermediate Industries Company (Alwaseeta), Qatar Industrial Manufacturing Company (QIMD), and the French industrial gas company Air Liquide, has been supplying nitrogen to RLOC since 2009 using a dedicated unit situated at the RLOC premises. According to the new signed agreement, Gasal will connect RLOC through its pipeline network. (Gulf-Times.com)
 MERS to open eight new malls – Al Meera Consumer Goods Company (MERS) is planning to open eight new malls by the end of 2014. The retailer also plans to roll out nine new branches in and outside Doha during 4Q2014. The new branches will be opened in Jeryan Nejaima, Al Wakra, Al Thumama, Al Wajba, Muaither, Al Azizia, Zakhira, Al Muraikh and at Gulf Mall. MERS said that the company is working to its full potential to finalize the construction phase of new malls to achieve a wider spread that satisfies its customers. MERS will open its branches as soon as it obtains permits and approvals from the authorities. According to the company, the construction of the Jeryan Nejaima branch is expected to be completed soon. Facing the Lekhwiya Stadium, the branch will meet the needs of consumers in the area by offering all products they may need. The branch spreads over an area of 5,526 square meters, of which 1,207 square meters goes to the supermarket. The Jeryan Nejaima branch will include 19 stores offering a variety of services to visitors as well as four restaurants. (Peninsula Qatar)
 QA to launch non-stop flights to Cape Town from November 3 – Qatar Airways (QA) will operate a new non-stop five-times- weekly service between Doha and Cape Town from November 3. Cape Town, which is currently served by QA three-times-a- week via Johannesburg, is one of the airline’s most popular African destinations. The route will be operated by QA’s Boeing 787 Dreamliner aircraft, which features 22 seats in business class and 232 seats in economy class. (Gulf-Times.com)
 QA hires former Cargolux APAC head – Matthew Ma has joined Qatar Airways as Vice-President Cargo Asia at Qatar Airways (QA). He has over 45 years of experience in the freight industry. He worked at Cargolux for 41 years, starting off as Regional Manager, Space Control and Charter Sales for Cargolux, USA, based in Montreal and Seattle. He then returned to Hong Kong to head the Cargolux Asia & Pacific region, where he remained until joining Qatar Airways Cargo. (Bloomberg)
International
 US manufacturing grows at fastest pace in three years; construction spending hits highest level in 5-1/2 years – Gains in manufacturing boosted the US expansion in August, led by a surge in orders for plastics and metals that powered the world’s largest economy past a global slowdown. The Institute for Supply Management’s index unexpectedly climbed to 59, the highest level since March 2011, from July’s 57.1, beating all forecasts in a Bloomberg survey of economists. The orders gauge was the strongest in a decade, the Tempe Arizona-based
group reported. American factories are benefiting from a rebound in auto sales and robust business spending on new plants and equipment that are helping industries rise above the political tensions weighing on Europe. Faster wage growth is now needed to sustain the advance and broaden household purchases beyond automobiles. Meanwhile, the construction spending rebounded strongly to hit its highest level in more than 5-1/2 years in July as private construction increased and state and local government outlays surged, in a further sign of vigor in the economy. The Commerce Department said construction spending increased 1.8% to an annual rate of $981.31bn, the highest level since December 2008. July's percentage increase was the largest since May 2012 and reflected gains across all categories, with the exception of federal government. It followed June's revised 0.9% decline. (Bloomberg, Reuters)
 UK shop price decline eases in August; construction growth strongest in seven months – The British Retail Consortium (BRC) said prices in British shops fell last month at a slightly slower pace although food price inflation remained at record low levels. The BRC said retail prices in August were 1.6% lower than a year earlier, compared with a 1.9% decline in July which was the steepest fall in the survey's more than seven-year history. Food prices rose 0.3% in August, matching July's record low. The BRC further added that deflation of prices for home improvement and gardening products and hardware accelerated in August. Official data last month showed the consumer price index (CPI) inflation fell to 1.6% in June, comfortably below the Bank of England's 2.0% target. The CPI measures a wider basket of goods and services than the BRC index, which covers 500 products commonly bought in shops. Meanwhile, the industry data showed the construction output in Britain grew at its fastest pace in seven months in August, boosting job creation but also putting strain on suppliers. The monthly Markit/CIPS purchasing managers' index (PMI) for construction climbed to 64.0 in August from 62.4 in July, exceeding all the forecasts in a Reuters poll of economists. Markit said the output grew in the housing, commercial and civil engineering markets. Readings above 50 indicate MoM growth in activity. Those below 50 represent contraction. (Reuters)
 Drop in volatile energy prices depresses Eurozone producer prices in July – A drop in the highly volatile energy prices depressed Eurozone producer prices in July as expected, underlining disinflationary pressures in the single currency area ahead of the European Central Bank's monetary policy meeting. The EU's statistics office Eurostat said prices at factory gates in the 18 countries sharing the Euro fell as anticipated by 0.1% in July against June and dropped 1.1% on the year. The annual drop was the steepest since April's 1.2% decline. Producer prices are an early indication of price trends. Unless their fluctuations are absorbed by retailers, they eventually translate into consumer inflation or deflation. The data showed both the monthly and the annual declines were influenced by a 0.6% and 3.5% drop respectively in the costs of energy. Prices in all other sectors, such as durable and non-durable consumer goods, were flat in July when compared with June. (Reuters)
 Abe to unveil new cabinet in effort to boost economy – Japanese Prime Minister Shinzo Abe may place an advocate of pro-market reforms in charge of the government pension fund and name a rising female politician as industry minister in a cabinet reshuffle on September 3, as he seeks to restore momentum to his “Abenomics” policies. According to sources, Yasuhisa Shiozaki, who favors changing the Government Pension Investment Fund to let it buy more risky assets, may be brought in as health minister, which would put him in charge of the world’s biggest retirement fund. Yuko Obuchi, dubbed by

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monthly magazine Sapio as the “next prime minister-but-one,” will oversee the nation’s nuclear industry in the Ministry of Economy, Trade and Industry post. The changes to the longest- serving cabinet since World War II come 20 months after Abe took office pledging to reflate the economy and adopt a tougher security stance amid a territorial dispute with an increasingly assertive China. Wages have not kept pace with inflation, and cabinet support has drifted below 50% in recent polls from highs of more than 70% in April last year. (Bloomberg)
 China August services activity edges up but property weighs – A recent government survey showed the activity in China's services sector recovered slightly in August, suggesting the sector remains relatively resilient compared to the manufacturing sector. The National Bureau of Statistics said the official non-manufacturing purchasing managers' index (PMI) rose to 54.4 from July’s six month low. The government is determined to achieve its 7.5% economic growth target for 2014 to keep employment stable and rein in financial risks while pushing long-term reforms to put the world's second-largest economy on a more sustainable footing. The services purchasing managers' index (PMI) compiled by HSBC/Markit jumped to 54.1 in August - the strongest in 17 months - from a nine-year low of 50.0 in July. A reading above 50 in PMI surveys indicates an expansion in activity, while one below the threshold points to a contraction. (Reuters)
Regional
 IdealRatings’ new screening service tackles Sukuk compliance hurdles – US-based IdealRatings, in cooperation with Saudi Arabian financial institutions, has developed a new screening method for Sukuk, aimed at reducing the cumbersome approval process that these instruments often require. Islamic finance is now a $1.7 trillion global industry, but its growth has exposed weaknesses such as the lack of a clear consensus on what products are permissible. The Shari’ah boards of individual banks and investment firms can issue conflicting rulings. The screening product studies and categorizes Sukuk, which will allow Islamic banks to adhere to their guidelines more efficiently, reducing the time and costs of due diligence in each deal. Over the past two years, issuance of sukuk in Saudi Arabia has expanded due to increased liquidity, comparatively low borrowing costs and a desire to diversify beyond bank loans. (Reuters)
 Islamic finance seeks to go green with eco-friendly products – Financial products-based on renewable energy and sustainable agriculture are emerging in Islamic finance, with asset managers seeking a crossover opportunity between ethical and Shari’ah-compliant investing. In April, the Dubai Supreme Council of Energy and the World Bank signed an agreement to develop funding for the emirate's green investment program, including green Islamic bonds. Further, firms in Britain, Canada and Hong Kong are also offering Shari’ah-compliant investments in sustainable farming ventures, which may attract money from Islamic investors in the Gulf and Southeast Asia as well as from local investors. (Reuters)
 Arabian Travel Market to focus on $140bn family travel segment – Family centric travel, which accounted for around 12.5% of the $1.07tn global tourism market, has been selected as the official show theme for the Arabian Travel Market (ATM) Expo 2015, which takes place at the Dubai International Convention & Exhibition Centre from May 4, 2015 to May 7, 2015. According to Thomson Reuters' data, the value of the global family tourism segment stood at $140bn in 2013. That figure is set to rise to over $180bn by 2018 with growth expected to continue at a rate of 4.79% annually until 2020, as compared
to just 3.8% overall tourism growth. The ATM 2015 line-up will include a number of dedicated seminar sessions, addressing issues such as how Gulf destinations can boost their appeal to the lucrative family tourism segment and develop family-specific amenities; the pressing need for value-for-money accommodation options; and the rise in aspirational travel from high-spending families for whom the experience outweighs the expense. (GulfBase.com)
 SEC awards Siemens two SVC contracts – Siemens has signed two contracts with the Saudi Electricity Company (SEC) for the construction of Static Var Compensators (SVCs) at Madinah East, Hail-2 and Al Jouf-2 380kV substations. Under the scope of these contracts, Siemens will provide SVC plus and protection systems, transformers, switchgears, civil and electro- mechanical works within a period of 24 months. SVC plus will be used for the first time in Saudi Arabia to enhance the performance of the SEC’s transmission networks in the Western and Central regions of Saudi Arabia. (GulfBase.com)
 AlKhair sukuk fund eyes fixed income markets – AlKhair Capital Saudi Arabia has launched the AlKhair Capital Plus Sukuk Fund on June 1, 2014, which is an open-ended, Shari’ah- compliant investment fund for investment in fixed income markets. The fund is aimed at generating regular income as well as achieving capital appreciation by investing in globally- diversified fixed income securities. Investors will be able to invest with a minimum subscription of $10,000 at an initial NAV of $100 per unit. (GulfBase.com)
 Jadwa Investment: Saudi bank deposits hit all-time high of SR1.5tn – According to Jadwa Investment’s latest Saudi Chart Book, the total bank deposits in Saudi Arabia reached a new all- time high of SR1.5tn in July 2014. Bank deposits climbed 1.7% in July to cross the SR1.5tn mark for the first time. This lifts the YoY growth rate to 14.5%, the fastest in the last 12 months. The increase in deposits in July reflects a steady rise in private sector deposits as well as a seasonal spike in public sector deposits. Banks remain highly liquid with deposits at the Saudi Arabian Monetary Agency (SAMA) rising to a four-month high of SR78.4bn in July, which is beyond the statutory requirement. This has also pulled the loan-to-deposit ratio down to 79.8%, indicating that banks still have plenty of room to step up lending. Banks have recorded all-time high monthly profits in five of the last seven months, including July 2014. Bank lending to the private sector rose 0.5% in July, which is the slowest monthly increase since December 2013, pulling the YoY rate down to 11.8%. Consumer spending also remained robust, with cash withdrawals from ATMs hitting a new high. Meanwhile, the overall Saudi non-oil Markit/HSBC PMI registered 60.1 in July 2014, the fastest rate of expansion since September 2012. The value of cash withdrawals from ATMs was at an all-time high in July, rising 8.3% YoY. (GulfBase.com)
 UAE, Thailand enjoy strong trade relations – According to Thailand’s Department of International Trade Promotion in Dubai, the UAE and Thailand enjoy strong trade relations and the volume of trade between them stood at $20.51bn in 2013. The bilateral trade is growing at a rate of over 5% currently and is expected to rise manifold in the near future. (GulfBase.com)
 Amadeus Gulf, ATS sign strategic partnership – Amadeus Gulf has entered into a partnership with travel management company, ATS. The partnership mandates Amadeus Gulf to provide both air and non-air content to ATS through its products and services such as the corporate booking tool ATM, Amadeus’ TRAACS–Back Office System, Amadeus Ticket Changer, as well as Print My Trip and the popular Master Pricer

5. Page 5 of 6
technologies. ATS will gain a competitive edge by leveraging Amadeus’s superior global distribution service. (GulfBase.com)
 Etihad–Alitalia deal likely to be cleared by 2014-end – According to sources, Etihad Airways and Italian airline, Alitalia are expected to win the EU regulatory clearance for their tie-up by the end of 2014 with minor concessions. The deal is expected to be notified to the European Commission in September 2014 which should be a conditional phase-one clearance. A phase-one review by the EU antitrust authority lasts 25 working days, which is extended by 10 additional working days if companies offer concessions to allay competition concerns. (Reuters)
 CBI ramps up SME support facility to AED1bn – Commercial Bank International (CBI) announced that it has allocated financing worth AED1bn in 2014 for supporting small and medium-sized enterprises (SMEs) operating in the UAE. In support of its SME business expansion strategy across various economic segments, CBI has recently opened its first dedicated business banking center in Jebel Ali Free Zone. The opening of the facility has been driven by increasing demand from the burgeoning SME sector. (GulfBase.com)
 Sharjah to arrange investor meets for debut Sukuk – The Emirate of Sharjah will arrange investor meetings this week in Asia, the Middle East and Europe ahead of a potential debut issue of its sovereign Sukuk. Sharjah is keen on expanding its investor base; although it is growing robustly, it lacks the big oil reserves of Abu Dhabi or the commercial glamour of neighboring Dubai. The Emirate has appointed HSBC, Kuwait Finance House, the National Bank of Abu Dhabi, Sharjah Islamic Bank and Standard Chartered to arrange the roadshows. An access to international markets will help Sharjah diversify its funding base, reduce costs and extend its debt maturity profile. (GulfBase.com)
 DIB denies seeking a controlling stake in Bank Panin Syariah – Dubai Islamic Bank (DIB) has ruled out seeking a controlling stake in Indonesia-based Bank Panin Syariah, and stated its plans are limited to raising its stake to 40% from 25% now. DIB bought 2.42bn shares in the listed Shari’ah-compliant lender in June 2014, which was its first foray into Southeast Asia. (Reuters)
 DSOA supports Islamic Economy initiative – The Dubai Silicon Oasis Authority (DSOA), the regulatory body for Dubai Silicon Oasis (DSO) – an integrated free zone technology park – has announced its plans to provide support to startups and seed ventures engaged in the Islamic economy domain through the Dubai Technology Entrepreneurship Centre (DTEC). Set to be operational by 1Q2015, DTEC will provide startups a nurturing business environment across an area of 3,600 square meters. In addition to providing logistical support, seed money and relevant incentives, DSO will engage the support of its partners including technology companies to host global events, roadshows and networking platforms, for marketing Dubai as the platform of choice for Arabic digital content creation and online solutions. (GulfBase.com)
 Emirates launches Oslo, Brussels routes – Emirates Airlines launched its service to Oslo international airport on September 2, 2014, marking the beginning of daily direct flights between Dubai and the Norwegian capital. Further, Emirates will start direct daily service to Brussels in Belgium on September 5. The airline already has direct daily flights to Copenhagen in Denmark and Stockholm in Sweden. (Bloomberg)
 ADIA reports 21.7% rise in passenger traffic for July 2014 – Abu Dhabi International Airport (ADIA) witnessed a 21.7%
increase in its passenger traffic for July 2014. A total of 1,703,995 passengers passed through ADIA in July 2014, compared with 1,399,695 in July 2013. Aircraft movements reached 13,188, representing a 16.1% YoY growth. Cargo activity was also on the rise recording 67,456 tons in July 2014; a 5.7% increase YoY. (Bloomberg)
 ADNH appoints new CEO – Abu Dhabi National Hotels (ADNH) has appointed Ignace Bauwens as the company’s CEO, effective from September 1, 2014. (ADX)
 FRiENDi plans to unveil 4G services in Oman – Oman-based FRiENDi Mobile is planning to launch 4G services within a year, besides setting up exclusive flagship stores in different regions to support customers and strengthen its presence across the country. The company plans to rollout branded FRiENDi stores with the start of a flagship store in Assalah Tower in Al Ghubra. FRiENDi will soon inaugurate the first shop at Assalah Tower, which will serve customers right from providing simple information about products & services to fully supporting during any major issues. (GulfBase.com)
 OOC partners with Schleupen to deploy risk management systems; signs $1.85bn club loan – Oman Oil Company (OOC) has partnered with Germany-based Schleupen to provide sophisticated risk management services to its member companies. OOC will leverage the unique capabilities of various systems developed by the European IT-services market leader in the risk management business sector to optimize its risk management activities ranging from identification through evaluation to business risks reporting. Meanwhile, OOC has reportedly signed a $1.85bn unsecured financing with various banks. The deal comprises three and five-year tranches, and was self arranged as a club deal. JP Morgan is believed to be one of the lenders. (GulfBase.com) (Bloomberg)
 AER: Economic cost of power sector subsidy rises 12% in 2014 – According to Omani Authority for Electricity Regulation (AER), the economic cost of subsidizing Oman’s rapidly expanding power generation and related water desalination sector is projected at OMR973.7mn in 2014. When compared with a total economic cost of OMR871.7mn during 2013, this represents an increase of nearly 12%. Every year, Oman’s Ministry of Finance provides grants to licensed supply & distribution companies in the form of electricity subsidies as calculated by the authority. The figures underscore the heavy economic cost of financially supporting the Sultanate’s electricity & water sector, which has been growing at a phenomenal rate of around 10% annually. (GulfBase.com)
 ABG appoints senior VP – Al Baraka Banking Group (ABG) announced the joining of Mohammed Abdullah El-Qaq to the executive management of the group as the Senior Vice President and Head of the Commercial Banking Department. (Bahrain Bourse)

6. 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,
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Page 6 of 6
Rebased Performance Daily Index Performance
Source: Bloomberg Source: Bloomberg
Source: Bloomberg 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
Aug-10 Aug-11 Aug-12 Aug-13 Aug-14
QE Index S&P Pan Arab S&P GCC
(0.6%)
0.3% 0.3%
(0.1%)
0.6%
0.0%
(0.5%)
(1.2%)
(0.6%)
0.0%
0.6%
1.2%
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 1,265.40 (1.6) (1.7) 5.0 DJ Industrial 17,067.56 (0.2) (0.2) 3.0
Silver/Ounce 19.17 (1.5) (1.5) (1.5) S&P 500 2,002.28 (0.1) (0.1) 8.3
Crude Oil (Brent)/Barrel (FM
Future)
100.34 (2.4) (2.8) (9.4) NASDAQ 100 4,598.19 0.4 0.4 10.1
Natural Gas (Henry
Hub)/MMBtu
4.01 (0.5) (0.5) (7.7) STOXX 600 342.75 (0.0) 0.2 4.4
LPG Propane (Arab Gulf)/Ton 101.75 (1.0) (1.0) (19.6) DAX 9,507.02 0.3 0.4 (0.5)
LPG Butane (Arab Gulf)/Ton 121.25 (0.8) (0.8) (10.7) FTSE 100 6,829.17 0.1 0.1 1.2
Euro 1.31 0.0 0.0 (4.4) CAC 40 4,378.33 (0.0) (0.1) 1.9
Yen 105.09 0.7 1.0 (0.2) Nikkei 15,668.60 1.2 1.6 (3.8)
GBP 1.65 (0.8) (0.8) (0.5) MSCI EM 1,086.73 (0.4) (0.1) 8.4
CHF 1.09 0.1 (0.1) (2.8) SHANGHAI SE Composite 2,266.05 1.4 2.2 7.1
AUD 0.93 (0.6) (0.7) 4.0 HANG SENG 24,749.02 (0.0) 0.0 6.2
USD Index 82.99 0.3 0.3 3.7 BSE SENSEX 27,019.39 0.6 1.4 27.6
RUB 37.45 0.4 0.9 13.9 Bovespa 61,895.98 1.2 1.0 20.2
BRL 0.45 0.1 (0.2) 5.3 RTS 1,177.93 0.0 (1.0) (18.4)
197.5
168.7
151.2