- The QSE Index in Qatar declined 0.5% led by losses in the Insurance and Real Estate indices. Gulf Warehousing Co. and Ahli Bank were the top losers. - Regional markets were mixed with Saudi Arabia down 1.2% while Kuwait rose 0.7%. - In economic news, US services PMI came in at 56.3 in November versus estimates of 57.3, signaling continued but slower expansion in the services sector.

1. Page 1 of 7
QSE Intra-Day Movement
Qatar Commentary
The QSE Index declined 0.5% to close at 13,690.0. Losses were led by the Insurance and Real Estate indices, declining 1.4% and 1.0%, respectively. Top losers were Gulf Warehousing Co. and Ahli Bank, falling 3.6% and 3.3%, respectively. Among the top gainers, Ooredoo rose 2.4%, while Doha Bank was up 1.0%.
GCC Commentary
Saudi Arabia: The TASI Index fell 1.2% to close at 9,404.8. Losses were led by the Insurance and Multi-Investment indices, falling 3.9% and 2.6%, respectively. Al-Khodari fell 9.9%, while Malath Insurance was down 9.8%.
Dubai: The DFM Index declined 0.1% to close at 4,625.8. The Telecommunication index fell 2.3%, while the Consumer Staples index was down 1.4%. Shuaa Capital declined 4.4%, while Al Salam Sudan fell 2.9%.
Abu Dhabi: The ADX benchmark index rose marginally to close at 4,965.1. The Bank index gained 0.6%, while the other indices ended in red or flat. Abu Dhabi Commercial Bank gained 4.2%, while Sharjah Islamic Bank rose 2.1%.
Kuwait: The KSE Index rose 0.7% to close at 7,047.3. The Telecommunication index gained 2.0%, while the Financial Services index was up 1.3%. ADNC rose 9.4%, while Gulf Glass Manufacturing was up 8.5%.
Oman: The MSM Index fell 1.2% to close at 7,051.70. Losses were led by the Services and Financial indices, falling 1.1% and 0.7%, respectively. Ooredoo fell 4.8%, while Bank Muscat was down 4.5%.
Bahrain: The BHB Index declined marginally to close at 1,448.3. The Insurance index fell 1.0%, while Commercial Bank was down 0.2%. Al Ahlia Insurance Co. declined 8.8%, while Trafco Group was down 3.5%.
QSE Top Gainers Close* 1D% Vol. ‘000 YTD%
Ooredoo
121.90
2.4
108.0
(11.2) Doha Bank 61.30 1.0 507.6 5.3 Masraf Al Rayan 50.40 0.8 1,098.1 61.0 Qatar Electricity & Water Co. 194.00 0.8 52.6 17.3 Aamal Co. 14.60 0.7 24.4 (2.7)
QSE Top Volume Trades Close* 1D% Vol. ‘000 YTD%
Vodafone Qatar
18.60
(1.1)
1,667.1
73.7 Gulf International Services 117.00 (3.1) 1,356.5 139.8
Masraf Al Rayan
50.40
0.8
1,098.1
61.0 Barwa Real Estate Co. 50.70 (1.2) 1,013.8 70.1
Ezdan Holding Group
18.69
(1.1)
818.6
9.9
Market Indicators 24 Nov 14 23 Nov 14 %Chg.
Value Traded (QR mn)
862.6
599.5
43.9 Exch. Market Cap. (QR mn) 742,436.4 745,921.5 (0.5)
Volume (mn)
11.1
7.9
40.5 Number of Transactions 7,933 5,673 39.8
Companies Traded
41
40
2.5 Market Breadth 8:28 9:28 –
Market Indices Close 1D% WTD% YTD% TTM P/E
Total Return
20,418.54
(0.5)
(1.1)
37.7
N/A All Share Index 3,473.34 (0.5) (1.1) 34.2 16.5
Banks
3,454.38
(0.6)
(1.4)
41.4
16.0 Industrials 4,506.68 (0.4) (0.9) 28.8 15.7
Transportation
2,413.31
(0.7)
(0.8)
29.9
14.2 Real Estate 2,762.52 (1.0) (1.2) 41.4 24.2
Insurance
4,048.47
(1.4)
(1.5)
73.3
12.4 Telecoms 1,510.61 1.5 0.2 3.9 20.9
Consumer
7,707.77
(0.0)
(0.8)
29.6
31.0 Al Rayan Islamic Index 4,636.16 (0.4) (1.3) 52.7 19.3
GCC Top Gainers## Exchange Close# 1D% Vol. ‘000 YTD%
Ajman Bank
Dubai
2.69
13.0
1,187.4
8.5 Abu Dhabi Com.Bank Abu Dhabi 7.87 4.2 2,336.5 21.1
Kuwait Int. Bank
Kuwait
0.30
3.5
411.9
0.0 Al-Qurain Petrochem. Kuwait 0.22 2.9 97.3 (2.7)
Ooredoo
Qatar
121.90
2.4
108.0
(11.2)
GCC Top Losers## Exchange Close# 1D% Vol. ‘000 YTD%
Med. & Gulf Ins.
Saudi Arabia
60.54
(9.6)
1,797.1
73.5 Co. for Coop.Ins. Saudi Arabia 61.73 (8.8) 975.0 75.4
Ooredoo
Oman
0.71
(4.8)
3,087.3
18.0 Kingdom Holding Co. Saudi Arabia 18.93 (4.0) 2,235.1 (22.7)
Oman Telecom. Co.
Oman
1.69
(4.0)
3,418.2
12.0
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) QSE Top Losers Close* 1D% Vol. ‘000 YTD%
Gulf Warehousing Co.
61.00
(3.6)
131.2
47.0 Ahli Bank 55.00 (3.3) 3.5 30.0
Gulf International Services
117.00
(3.1)
1,356.5
139.8 Medicare Group 132.60 (1.8) 32.9 152.6
Qatar Industrial Manufacturing Co.
47.15
(1.8)
0.5
11.8
QSE Top Value Trades Close* 1D% Val. ‘000 YTD%
QNB Group
226.00
(1.5)
168,661.8
31.4 Gulf International Services 117.00 (3.1) 158,857.7 139.8
Industries Qatar
195.00
0.2
105,244.0
15.5 Masraf Al Rayan 50.40 0.8 54,593.4 61.0
Barwa Real Estate Co.
50.70
(1.2)
51,718.0
70.1
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*
13,690.02
(0.5)
(1.1)
1.4
31.9
236.87
203,873.0
17.6
2.2
3.4 Dubai 4,625.76 (0.1) 1.4 1.8 37.3 182.42 103,135.4 14.4 1.7 1.9
Abu Dhabi
4,965.07
0.0
0.1
2.1
15.7
88.34
134,062.2
13.4
1.7
3.3 Saudi Arabia 9,404.76 (1.2) (0.0) (6.3) 10.2 2,068.63 542,696.6 17.2 2.2 3.0
Kuwait
7,047.27
0.7
0.9
(4.3)
(6.7)
47.29
105,839.2
17.7
1.1
3.8 Oman 7,051.70 (1.2) (0.4) 1.1 3.2 34.17 26,282.3 9.9 1.5 4.0
Bahrain
1,448.25
(0.0)
0.5
0.3
16.0
13.47
54,120.7
10.5
0.9
4.7
Source: Bloomberg, Qatar Stock Exchange, Tadawul, Muscat Securities Exchange, Dubai Financial Market and Zawya (** TTM; * Value traded ($ mn) do not include special trades, if any)
13,50013,60013,70013,80013,9009:3010:0010:3011:0011:3012:0012:3013:00

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Qatar Market Commentary
 The QSE Index declined 0.5% to close at 13,690.0. The Insurance and Real Estate indices led the losses. The index fell on the back of selling pressure from Qatari shareholders despite buying support from non-Qatari shareholders.
 Gulf Warehousing Co. and Ahli Bank were the top losers, falling 3.6% and 3.3%, respectively. Among the top gainers, Ooredoo rose 2.4%, while Doha Bank was up 1.0%.
 Volume of shares traded on Monday rose by 40.5% to 11.1mn from 7.9mn on Sunday. However, as compared to the 30-day moving average of 13.3mn, volume for the day was 16.3% lower. Vodafone Qatar and Gulf International Services were the most active stocks, contributing 15.0% and 12.2% to the total volume respectively.
Source: Qatar Stock Exchange (* as a % of traded value)
Global Economic Data
Global Economic Data Date Market Source Indicator Period Actual Consensus Previous
11/24
US
Markit
Markit US Services PMI
November
56.3
57.3
57.1 11/24 US Markit Markit US Composite PMI November 56.1 – 57.2
11/24
France
Ministry of Economy
3M T-Bill Amount Sold
24-November
EU3,990M
–
EU3,996M 11/24 France Ministry of Economy 3M T-Bill Average Yield 24-November -0.02% – -0.02%
11/24
France
Ministry of Economy
3M T-Bill Bid/Cover Ratio
24-November
3.2
–
3.2 11/24 France Ministry of Economy 6M T-Bill Amount Sold 24-November EU1,793M – EU1,591M
11/24
France
Ministry of Economy
6M T-Bill Average Yield
24-November
-0.01%
–
-0.01% 11/24 France Ministry of Economy 6M T-Bill Bid/Cover Ratio 24-November 3.4 – 4.0
11/24
France
Ministry of Economy
12M T-Bill Amount Sold
24-November
EU1,694M
–
EU1,596M 11/24 France Ministry of Economy 12M T-Bill Average Yield 24-November -0.01% – -0.01%
11/24
France
Ministry of Economy
12M T-Bill Bid/Cover Ratio
24-November
4.4
–
4.2 11/24 Germany IFO Institute-Institut fuer IFO Business Climate November 104.7 103.0 103.2
11/24
Germany
IFO Institute-Institut fuer
IFO Current Assessment
November
110.0
108.0
108.4 11/24 Germany IFO Institute-Institut fuer IFO Expectations November 99.7 98.5 98.3
Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted)
News
Qatar
 Emir endorses Cabinet decisions on expropriation of real estate – HH the Emir Sheikh Tamim bin Hamad Al-Thani endorsed Cabinet decision No. 60 of 2014 expropriating some real estate for public interest. The decision stipulated that real estate necessary for the implementation of the project explained in the decision of the Minister of Municipality & Urban Planning No. 67 of 2014 shall be expropriated for public interest. The Emir also endorsed the following laws and Cabinet decisions on expropriating real estate for public interest: Law Nos 61, 63, 64, and 65 of 2014. The decisions stipulated that real estate necessary for the implementation of the projects explained in the decision of the Minister of Municipality & Urban Planning Nos 70, 83, 84 and 85 of 2014 shall be expropriated for public interest. The Cabinet endorsed decision Nos 66, 67, 68 and 69 of 2014 expropriating some real estate for public interest. The decisions stipulated that real estate necessary for the implementation of the project explained in the decision of the Minister of Municipality and Urban Planning No 86, 91, 97 and 98 of 2014 shall be expropriated for public interest. The decisions stipulated that the measures included in law No. 13 of 1988 for paying damages to the owners of the expropriated real estate are to be taken in accordance with this decision. The decisions are to go into force from the date of issue in the official gazette. The Emir also endorsed Cabinet Decision No. 71 of
2014 reforming the Committee of Trustees of the State Encouragement Award. (Gulf-Times.com)
 PM: Solid fundamentals bolster Qatar’s sustainability – Despite turbulent global market conditions, HE the Prime Minister and Minister of Interior Sheikh Abdullah bin Nasser bin Khalifa Al-Thani has reassured the economic sustainability of Qatar, which is anchored on solid economic fundamentals. He said that the economic growth of Qatar is well-connected with the development of the global economy and therefore the country is concentrating on following-up these developments and the potential consequences. He was referring to big-ticket projects that form part of the Qatar National Vision 2030 in the areas of infrastructure, economic growth, and building Qatari human capital. According to the Prime Minister, financial activities pave the way for more participation of the private sector in the economic environment. He emphasized that Qatar is constantly supporting the non-hydrocarbon sector through the expansion of industrial areas and by increasing the capacity of storage as well as the growth of small and medium-sized enterprises (SMEs). (Gulf-Times.com)
 QCB Governor reaffirms strength of Qatar banking sector – The Qatar Central Bank (QCB) Governor, HE Sheikh Abdullah bin Saud Al-Thani, said that Qatar's banking sector has performed outstandingly despite the challenges faced by the global financial sector. He said that such an outstanding performance reflects the strength of QCB's supervisory and Overall Activity Buy %* Sell %* Net (QR)
Qatari
43.26%
46.10%
(24,479,974.88) Non-Qatari 56.74% 53.90% 24,479,974.88

3. Page 3 of 7
regulatory role in ensuring the compliance of all banks operating in the country with laws and legislation governing the local and international financial sectors, including the calculation of bank capital adequacy based on the Basel Committee III requirements and QCB directives, which are being implemented since the beginning of 2014. He further added that QCB's supervisory role aims to ensure banks' compliance with laws on combating terrorism funding and money laundering so as to enhance the performance of the entire banking sector. (QNA)
 PM launches SEZ project – The Prime Minister & Minister of Interior, HE Sheikh Abdullah bin Nasser bin Khalifa Al Thani laid the foundation stone of the Ras Bufontas project, one of the three Special Economic Zones (SEZs) being developed to achieve economic diversification. The land plots for the first and second phases of development of the project will be delivered to investors in 1Q2016. The project is being developed by Manateq, a state-backed entity, which was specifically created in 2011 to provide the necessary infrastructure, policies, and services required by small and medium enterprises (SMEs). The ambitious Ras Bufontas project, strategically located near the Hamad International Airport, is being developed in an area spreading over 4.1 square kilometers. (Peninsula Qatar)
 HSBC: Qatar’s $200bn economy is insulated from sluggish global growth – HSBC chief economist (CEEMEA) Simon Williams said that Qatar’s $200bn economy “remains insulated from sluggish global growth” thanks to its hydrocarbon wealth and large public investment program designed to accelerate economic diversification. Williams said the central government budget continued to register large surpluses and the outlook remained bright. Public investments are expected to keep growth at roughly 6-7% over the medium-term, with non- hydrocarbon growth remaining at around 10%. HSBC global head (foreign exchange strategy) David Bloom said that the slowdown in global economic activity seems to be intensifying, with particular weakness in the Eurozone. Global financial markets suddenly seem very nervous about the economic growth prospects. (Gulf-Times.com)
 CBQK: Banking sector set to benefit from Qatar’s growth – According to the Commercial Bank of Qatar (CBQK), Qatar is in a strong position to continue its robust economic performance and its banking sector is now set to benefit from the nation’s anticipated economic growth. CBQK CEO Abdulla Al-Raisi said Qatar’s economy is expected to grow by an impressive 6.3% in 2014. The economic growth has come instead from the non- hydrocarbon sector and growth here is expected to be 11.5% for 2014, with the financial and construction sectors in particular, making large contributions. He said the huge infrastructural transformation in the country is providing tremendous opportunities for the private sector and project development — particularly infrastructure — is becoming the main driver of economic expansion. He added that with high levels of liquidity, Qatar’s banks are well provisioned to finance these major projects and expand their asset bases. (Gulf-Times.com)
 ORDS: Qatar’s network, mobile innovation to play key role in development – Ooredoo (ORDS) Chairman Sheikh Abdullah bin Mohamed bin Saud al-Thani said that Qatar’s solid investments in network and mobile innovation is expected to play a key role in transforming the country’s economic and financial sectors. He said the country’s investment in a nationwide communication infrastructure, “championed and led by Ooredoo,” was set to be “a vital economic asset.” Sheikh Abdullah said Qatar, with its strong program of investment in networks and mobile innovation, is well-positioned to play a leadership role in transforming both the finance sector and society as a whole. (Gulf-Times.com)
 GPCA: Qatar chemical industry 2013 sales revenue hit $11.5bn – According to the data published by Gulf Petrochemicals & Chemicals Association (GPCA), Qatar’s chemical industry generated $11.5bn in sales revenue in 2013. GPCA said in its latest industry report that petrochemicals revenues reached an all-time high in 2013 hitting the $89.4bn mark. Revenues from the GCC region petrochemicals grew by $6bn between 2012 and 2013, resulting in a 7.3% growth. Chemical sales revenue from the GCC is the second highest of any petrochemical producing region, after Asia. Saudi Arabia, the region’s largest petrochemical producer, accounted for 74.9% of the region’s chemical revenue, approximately $66.9bn in sales. (Gulf-Times.com)
International
 US services sector activity grows marginally; FHFA leaves loan limits unchanged – According to Markit’s industry report, the service sector in the US has expanded in November at a slower rate than in October as growth in new business slowed. Markit said its services flash Purchasing Managers Index (PMI) hit 56.3 in November, slightly below expectations and the lowest since April, compared with October's final reading of 57.1. The growth rate has slowed steadily since peaking this year at 61 in June, but is still above the 50 level. The services sector’s new business sub-index fell to 55.9 versus the final 57.8 reading in October. Markit's flash composite PMI, a weighted average of its manufacturing and services indexes, hit 56.1 in November versus 57.2 in October, with improvement in the employment sub-index as well. Meanwhile, the Federal Housing Finance Agency (FHFA) said it would leave unchanged next year the maximum loan size that government-controlled Fannie Mae and Freddie Mac can guarantee. FHFA, the US housing finance regulator, said it will allow the two mortgage finance giants to purchase loans of up to $417,000 for single-unit properties in all but 46 US counties next year. (Reuters)
 German business confidence gains in November – Business confidence in Germany rose unexpectedly for the first time in seven months after the country’s economy returned to growth and the European Central Bank added stimulus to the Eurozone. The IFO Institute’s Business Climate Index, based on a survey of 7,000 executives, advanced to 104.7 in November from 103.2 in October. According to a Bloomberg survey, economists predicted a decline to 103. Germany is pivotal to any sustained recovery in the Eurozone bloc. Even so, the pace of growth remains sluggish and the Bundesbank has said the nation’s economy will lack momentum at least until the end of 2014. (Bloomberg)
 ECB hails EU €300bn stimulus plan as growth booster – The European Central Bank’s (ECB) Governing Council member Ewald Nowotny hailed a planned €300bn investment program by the European Commission as a step to boost lagging investment that will weigh on productivity growth in Europe. Nowotny said the new European Commission is setting the right priorities by proposing an investment package combined with regulatory reforms targeted toward fostering smart infrastructure, education, research and energy. Nowotny said that the Central, Eastern & Southeastern Europe (CESEE) region had the best long-term growth prospects in Europe, but the annual growth differential to the Eurozone average would likely drop to below 2 percentage points from up to 4 points in the past. (Reuters)
 Russia sees $140bn annual loss from oil, sanctions – Russia’s Finance Minister Anton Siluanov said the country stands to lose as much as $140bn a year as a result of lower oil prices and Western sanctions, underlining the risks of a prolonged stalemate over Ukraine. The drop in the cost of

4. Page 4 of 7
hydrocarbons is pushing the economy of the world’s biggest energy exporter toward a recession, while penalties imposed over Russia’s role in the Ukrainian crisis discourage investors and curb domestic demand. According to sources, President Vladimir Putin asked his economic team for a plan to survive a decade of sanctions. Siluanov said the Russian economy, which is already growing at the slowest pace in four years, will sink into a recession next year if the price of oil drops to $60 per barrel and sanctions are stiffened. Crude prices began sliding in June, and Brent crude, the grade traders look at for pricing Russia’s main export blend Urals, dropped below $80 in November. (Bloomberg)
Regional
 Gulf Finance sees greater potential in lending to smaller SMEs – Gulf Finance Corporation’s CEO, David Hunt, said that the company sees huge growth opportunities in financing smaller SMEs and micro-businesses. He added that the company finances enterprises with very low turnovers starting from AED1mn to up to AED25mn and employs from 4 or 5 and up to 25 people. Gulf Finance’s current loan book exceeds AED700mn and it is projected to grow in high double digits this year. The company’s associate, Gulf Installments Company in Saudi Arabia has built a loan book worth AED130mn in a short span of time since its launch in 2013. The company’s vision is to provide growth finance to SMEs and it wants to position itself as the preferred source of finance for them. (GulfBase.com)
 MENA to spend $300bn on water, desalination projects by 2022 – Governments in the Middle East & North Africa (MENA) are expected to spend an estimated $300bn on water and desalination projects by 2022. This underscores the importance of the International Water Summit (IWS) being held in January 2015, when more than 70 global experts will address key water sustainability and security challenges in the region. (GulfBase.com)
 KPMG: 2015 an active year for SWFs in Middle East – According to a report by KPMG in collaboration with the Institutional Investor’s Sovereign Wealth Center, Middle Eastern Sovereign Wealth Funds (SWFs) have been forced to navigate shifting economic currents at home and abroad, as they seek to invest their oil capital to generate the best returns. The UAE is home to one of the largest SWFs in the world, which has played a significant role in establishing relations with African countries, resulting in commitments worth $19 billion across 17 infrastructure projects. This paves the way for future investments as economic linkages between the UAE and Africa continues to strengthen. The year 2015 is set to be an active year for SWFs in the region. Global SWFs currently control an aggregate of approximately $5tn in assets under management, out of which the GCC SWFs account for approximately 40% share. (GulfBase.com)
 E&Y: Smaller strategic deals to lead sustainable MENA M&A growth – According to Ernst & Young’s (E&Y) MENA 3Q2014 M&A Update, M&A deal activity in the MENA region rose by 17% in 3Q2014, with 109 deals as compared to 93 deals in 3Q2013. However, the announced deal value declined by 47% from $17.5bn in 3Q2013 to $9.3bn in 3Q2014, indicating a preference for smaller strategic deals. Domestic and outbound deal values decreased by 70% and 59% YoY respectively, while the inbound deal value rose by 16% YoY in 3Q2014. However, the domestic deal activity saw an increase of 59% YoY, while inbound and outbound deal activities dropped as compared to 3Q2013. EY’s latest MENA Capital Confidence Barometer (CCB) highlighted that the increased deal volume is expected to continue as more than half of the MENA respondents expect
their company to pursue an acquisition over the next 12 months. (GulfBase.com)
 NCB: Saudi business optimism improves on strong GDP – According to the Saudi Business Optimism Index (BOI) survey for 4Q2014, released by the National Commercial Bank (NCB), in association with the Dun & Bradstreet South Asia Middle East Ltd, business optimism among both the hydrocarbon and non- hydrocarbon sectors in Saudi Arabia have brightened in 4Q2014 as compared to from the previous quarter, fueled by expectations that the Saudi GDP will grow 4.6% in 2014 despite the weakening of oil markets. The BOI survey showed strengthening of sentiments in the Saudi oil & gas sector with the composite index pegged at 34 in 4Q2014, 9 points higher on a QoQ basis and 4 points higher on a YoY basis. The BOI for selling prices has firmed up by 5 points to reach 18 in 4Q2014, with 23% of the participants expecting an increase to offset higher raw materials prices and in anticipation of new projects. The BOI for net profits has jumped to 68 in 4Q2014 from 35 in 3Q2014 and has touched the highest level in the series. (GulfBase.com)
 MEED: Saudi petrochemical projects worth $15bn underway – MEED, the Middle East Business Intelligence, has listed 26 projects worth $15bn that are underway in the Saudi petrochemical sector, while another $46bn worth projects are proposed. The plastic industry is being developed to support economic diversification away from hydrocarbons. To complement the ongoing development, Saudi Plastics & Petrochem 2015, the 12th International Plastics & Petrochemicals Trade Fair is being held from March 1-3, 2015, offering a platform for industries to showcase their latest technologies, products and services. (Gulf-Base.com)
 SAMA: House prices rise in Riyadh despite new supply – According to the Saudi Arabian Monetary Agency (SAMA), residential prices in Riyadh rose by 5-7% in 2013 and are expected to continue to move in an upward direction in the short to medium-term, with new supply unlikely to be able to fully offset demand. In the 10 years to 2013, the number of inhabitants in the Kingdom increased by 36% to 30mn. Riyadh, which accounts for one-quarter of Saudi Arabia's total population, has been among the fastest growing cities in the state in recent years. The Department of Statistics & Information shows that the average household size in the administrative region of Riyadh is 5.6, and only 60% of housing units in Saudi Arabia are owner-occupied. In comparison, the levels of owner- occupation in the neighboring countries such as the UAE (75%), Qatar (80%), Bahrain (82%) and Oman (83%) are much higher. (GulfBase.com)
 Investcorp positive on Saudi investment outlook – Investcorp is quite optimistic about investments in Saudi Arabia and is positive on the Kingdom's growth prospects over the coming period driven by a number of key fundamentals, including the macroeconomic environment, attractive demographics and a healthy financial system. Investcorp’s Managing Director, Walid Majdalani said Saudi Arabia's increasingly deregulated and competitive economic environment is facilitating rapid growth in business development within the private sector, which is assuming an increasingly important role in the Kingdom's economy. Investcorp believes that Saudi Arabia is primed for a steady long-term growth with exciting prospects across infrastructure, manufacturing, energy related services and retail sectors. Saudi Arabia is the region's largest economy, which is expected to exceed global growth with real GDP growth of 4.6% forecasted for 2014, as compared to 3.3% for the rest of the world. Saudi Arabia continues to diversify

5. Page 5 of 7
away from oil with its non-oil sector’s contribution to GDP increasing from 45% in 2008 to 53% in 2013. (Bahrain Bourse)
 FALCOM conducts rebalancing process – FALCOM Financial Services has conducted a rebalancing process on November 23, 2014, on the components of the FALCOM Saudi Equity ETF basket and FALCOM Petrochemical ETF basket in line with the benchmark index. (Tadawul)
 Saudi Orix approves capital increase – Saudi Orix Leasing Company (Saudi Orix) announced that its EGM has approved the board of director’s recommendation to increase the company’s capital through bonus shares and rights issue. The company’s capital after the bonus share issue will increase to SR450mn from SR340mn, while the number of shares will increase to 45mn from 34mn. The bonus issue will be carried out through capitalization of SR110mn from the retained earnings account as of October 16, 2014. One bonus share for approximately three shares will be offered. Meanwhile, the company’s capital after the right share issue will increase to SR550mn from SR450mn, while the number of shares will increase to 55mn from 45mn. The total proceeds from this offering will amount to SR100mn. One right will be issued for approximately every four share owned. The offer price is the nominal value of SR10 per share. The aim of the company for raising capital is to strengthen the capital base of the company, which will contribute to the growth in the coming years. (Tadawul)
 ACE Arabia suffers fire accident, expects maximum loss of SR6mn – ACE Arabia Cooperative Insurance Company (ACE Arabia) announced that a fire accident occurred at one of the warehouses of Al Abdullatif Industrial Investment Company located at Riyadh 2nd Industrial City. ACE Arabia has assigned loss assessors licensed by Saudi Arabian Monetary Agency to assess the damage caused by the fire. The affected property is fully insured and reinsurance arrangements are in place with reputed reinsurance securities. The estimated financial impact on Ace Arabia from this fire accident shall not exceed SR6mn and will appear in its financial results for 4Q2014. (Tadawul)
 Emaar’s board approved special dividend – Emaar Properties’ board approved a special cash dividend of AED9bn (AED1.257 per share translating into a yield of 11.1%) to its shareholders. The special cash dividend follows the successful IPO and listing of the Emaar Malls Group. With the approval of this dividend, the total value of dividends to be distributed to Emaar’s shareholders in 2014 will be over AED17.12bn. (Gulf- Base.com)
 DP World, QPG plan cruise route – DP World and China’s Qingdao Port Group (QPG) will work to develop cruise services between the Yellow Sea industrial hub and Dubai. The operators will also enhance trade volumes and stimulate business growth between the Port of Qingdao and the ports of Jebel Ali and Mina Rashid. The deal includes a feasibility study into the opening of a cruise route. DP World and QPG are already joint venture partners in China. (GulfBase.com)
 Depa benefited from flurry of Dubai hotel construction activities – Depa returned to the black again as the company benefited from a flurry of hotel construction activities in Dubai and closed down loss-making parts of the business. The Nasdaq Dubai-listed interiors company, which is 24% owned by Dubai-based contractor Arabtec, reported a net profit of AED19mn in 3Q2014 as compared to an AED22mn loss in 3Q2013. Depa said that it was benefiting from its strategy to be more selective by signing contracts with low-risk profiles and healthy margins while also gaining from a spate of hotel constructions in Dubai in the run-up to the World Expo 2020.
The profits hike in 3Q2014 came despite a 10.39% decline in revenues, which slipped to AED517mn from AED577mn a year earlier. (GulfBase.com)
 Deyaar to showcase two high-end projects – Deyaar Development (Deyaar) is set to showcase two of its high-end projects Montrose and The Atria as part of its participation at the upcoming Property Show 2014. Montrose is located at Barsha South at the extension of Umm Suqeim toward Mohammed Bin Zayed Road, while The Atria is a 1.25mn square feet luxury mixed-use twin tower complex located at the Business Bay. (GulfBase.com)
 Barclays hires RBS corporate bankers for Dubai Expansion – According to sources, Barclays has hired two corporate bankers from the Royal Bank of Scotland Group (RBS) in Dubai as it expands in the region. Barclays’ head of the business in the UAE and Gulf countries, Rezwan Mirza, said the company is planning to increase the number of corporate bankers in the Gulf by more than 10% in 2014 as economic growth improves. RBS is weighing the sale of its Middle East corporate loan book as it reviews its international business. Reportedly, RBS has dismissed most of its team overseeing debt-capital markets in the central and eastern Europe, Middle East and Africa. (Bloomberg)
 Etihad Rail signs maintenance deal with Adnoc – Etihad Rail has signed an operations and maintenance agreement with Abu Dhabi National Oil Company (Adnoc). The agreement is in line with the first phase of project to construct a 264 kilometer route for the transportation of sulphur. Under the terms of the agreement, which is signed for a 30-year period, Etihad Rail will be responsible for the maintenance and management of the rail facilities and the transportation of sulphur, while Adnoc will have the responsibility of loading sulphur and unloading it at the treatment plants. (Gulf-Base.com)
 DCCI members’ exports, re-exports hit AED241bn – According to a study by the Dubai Chamber of Commerce & Industry (DCCI), the total exports of members in the first 10 months of 2014 peaked to a high of AED241bn, reflecting a growth of around 1% YoY. The Chamber members’ exports and re-exports for the month of October are valued at AED21.9bn, and the number of members who exported reached 5,310. The GCC remained the largest export market of Dubai Chamber members, with export to the region touching AED13.8bn in October, equaling to 63% of the total for the month. Meanwhile, members’ exports to the region was lower by 1% YoY in October 2014 as Saudi Arabia retained its dominance with 54% of the total exports and re-exports of members to GCC valued at AED7.5mn, or 34% of the total global exports and re- exports.(Gulf-Base.com)
 NBAD, ADFG conclude AED1.8bn financing deal – National Bank of Abu Dhabi (NBAD) and Abu Dhabi Financial Group (ADFG) have announced the completion of an AED1.8bn financing deal for one of the largest redevelopment projects in prime Central London. 1 Palace Street comprises 271,051 square feet of space adjacent to Buckingham Palace in the exclusive area between St James’s, Mayfair and Belgravia. The development of 72 luxury apartments, a restaurant and health center, is expected to be completed in late 2017. Integrated Alternative Finance (IAF), a subsidiary of Abu Dhabi Financial Group (ADFG), sourced, structured, and arranged the deal with NBAD. The loan was structured through a combination of senior debt and a preferred equity tranche underwritten by IAF. (GulfBase.com)
 KNPC to invest $40bn on new refinery and clean fuels projects – Kuwait National Petroleum Company (KNPC) is

6. Page 6 of 7
planning to spend $40bn in the period to 2022 on projects including a new refinery and a clean fuels project. The new refinery, Al-Zour, which is due to be completed in 2019, will be the largest in the Middle East with a capacity of 615,000 barrels per day (bpd). Kuwait currently has three refineries with a combined capacity of 930,000 bpd. The oldest, Shuaiba, with a capacity of 200,000 bpd will be closed after Al-Zour goes on stream. Under the clean fuels project, the capacity of the Mina al-Ahmadi refinery will drop to 347,000 bpd from 466,000 bpd, while Mina Abdullah's will rise to 454,000 bpd from 270,000 bpd. These projects would be completed between 2018 and 2022. Contracts worth around $12bn were awarded in February to international companies including Japan's JGC Corporation, Britain's Petrofac Limited and US-based Fluor Corporation for construction work on the project. (Reuters)
 Dow CEO: Not quitting Kuwait, but shifting strategy – US- based Dow Chemical Company CEO, Andrew Liveris said that the company is not pulling out of Kuwait but is shifting strategy, after Dow Chemical announced plans to reduce its equity positions in all of its Kuwaiti ventures. Earlier, in November 2014 Dow Chemical announced that as part of a $7-$8.5bn divestiture plan, it would reduce its equity positions in all of its Kuwaiti ventures, in order to release capital for other strategic purposes. (Reuters)
 OOC subsidiaries, affiliates ink OMR17mn deals with SMEs – Oman Oil Company's (OOC) subsidiaries and affiliates signed 35 contracts with local Small and Medium Enterprises (SMEs) worth over OMR17mn at the recently concluded Business Opportunities Forum. To provide new avenues for companies looking to establish a foothold in the oil, gas & energy sectors, the group presented over 142 additional contracts exceeding OMR500mn that are up for grabs in the coming year and highlighted the currently available business opportunities for SMEs within OOC and its group of companies' portfolio of projects. (Gulf-Base.com)
 Octal signs 20 contracts with small enterprises in Oman – Octal, a clear rigid food packaging material supplier was recognized for signing the largest number of contracts with local businesses and small and medium enterprises (SMEs) during its participation at the recently concluded Business Opportunities Forum. Octal signed a total of 20 contracts with Omani businesses and SMEs to supply various products and services including raw materials and process chemicals, lab supplies, logistics services, administration and training, as well as information technology and office provisions among others. (Gulf-Base.com)
 Majan Glass reports small fire accident – Majan Glass Company announced that on November 23, 2014 there was a small fire at the backyard store of the company that was brought under control by the company. ROP, Civil Defence and Insurance have been duly informed. The company is in process of calculating the exact quantity and value of loss. (MSM)
 Aqar sells entire units of Rimal2 – Al Khonji Real Estate Development Company (Aqar) announced that it sold out the entire Rimal2 project, which confirms the success of the project and the strong demand from all investors, within and outside. Aqar’s Chairman and CEO, Mohammed bin Abdullah Al Khonji, said that the success of Rimal2 project, located in Wilayat Bousher, is a natural reflection of the status of the project and its level of quality in terms of design and services it provided. The important aspects that contributed to the selling of the project are the economic and commercial status of Oman. (GulfBase.com)
 Batelco ready to expand services; mulls Umniah Mobile sale – Bahrain Telecommunication Company (Batelco) announced that it is extending its portfolio of global services and is now able to reach several locations including the US, Europe and Asia. The portfolio includes International Private Leased Line, Multiprotocol Label Switching and Ethernet services to any country through Batelco's own network and beyond through reliable partners in various geographies. The company said it has 21 active points-of-presence covering the Middle East region and Europe and is promoting Bahrain as a gateway for global providers who require connectivity into and out of the Middle East and Gulf region. Meanwhile, sources reported that Batelco is considering a sale of its Jordanian mobile operator Umniah Mobile Company. Batelco has hired Citigroup to help manage the sale. The sale of Umniah may fetch about $500- 600mn for Batelco. Umniah has more than 3mn customers in Jordan and a market share of about 31.5%. (Gulf-Base.com, Bloomberg)
 KPMG: Bahrain offers low-cost environment for financial services – According to a report by KPMG, Bahrain has one of the lowest costs of operating a financial services business in the GCC region, with the average cost of key aspects such as licensing and registration, commercial rental rates, manpower costs, and communication and utility expenses, being significantly lower. The report compares the cost of operating a financial services business to other selected GCC countries, and concludes that the cost would be, on average, around 40% lower in the Kingdom. The report also includes an overview of the average cost of living, focusing on the cost of education and the cost of renting residential properties. Both cost of living measures were higher in other GCC states, making Bahrain the most affordable country to live in. (GulfBase.com)
 OBG: Infrastructure growth key to Bahrain’s industrial sector – According to a report by Oxford Business Group (OBG), infrastructure projects worth an estimated $22bn, which are expected to be rolled out in Bahrain before 2020, will boost the Kingdom’s industrial sector via improved transport links and massive facilities. However, falling oil revenue may impact funding availability for some capital works, potentially cooling long-term prospects in the sector. Many of these projects, such as the $2.5bn expansion of production capacity at Aluminium Bahrain (Alba) with the opening of a sixth production line and upgrades to the processing facilities of the Bahrain Petroleum Company (Bapco), are linked to the industrial expansion program. (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
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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. QNBFS accepts no liability
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Page 7 of 7
Rebased Performance Daily Index Performance
Source: Bloomberg Source: Bloomberg
Source: Bloomberg Source: Bloomberg, *$ adjusted returns. (# Market closed on November 24)
80.0
100.0
120.0
140.0
160.0
180.0
200.0
220.0
Oct-10 Oct-11 Oct-12 Oct-13 Oct-14
QSE Index S&P Pan Arab S&P GCC
(1.2%)
(0.5%)
0.7%
(0.0%)
(1.2%)
0.0%
(0.1%)
(1.8%)
(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 1,197.09 (0.4) (0.4) (0.7) DJ Industrial 17,817.90 0.0 0.0 7.5
Silver/Ounce 16.48 0.2 0.2 (15.4) S&P 500 2,069.41 0.3 0.3 12.0
Crude Oil (Brent)/Barrel (FM
Future)
79.68 (0.8) (0.8) (28.1) NASDAQ 100 4,754.89 0.9 0.9 13.8
Natural Gas (Henry
Hub)/MMBtu
4.06 (5.9) (5.9) (6.6) STOXX 600 345.72 0.5 0.5 -5.1
LPG Propane (Arab Gulf)/Ton 76.38 0.7 0.7 (39.6) DAX 9,785.54 0.9 0.9 -7.7
LPG Butane (Arab Gulf)/Ton 96.75 (3.3) (3.3) (28.7) FTSE 100 6,729.79 0.0 0.0 -5.5
Euro 1.24 0.4 0.4 (9.5) CAC 40 4,368.44 0.8 0.8 -8.4
Yen 118.27 0.4 0.4 12.3 Nikkei # 17,357.51 0.0 0.0 -4.9
GBP 1.57 0.3 0.3 (5.1) MSCI EM 1,011.23 0.7 0.7 0.9
CHF 1.03 0.3 0.3 (7.6) SHANGHAI SE Composite 2,532.88 1.6 1.6 18.0
AUD 0.86 (0.6) (0.6) (3.4) HANG SENG 23,893.14 2.0 2.0 2.5
USD Index 88.15 (0.2) (0.2) 10.1 BSE SENSEX 28,499.54 0.2 0.2 34.6
RUB 44.84 (2.2) (2.2) 36.4 Bovespa 55,406.91 -2.3 -2.3 -0.3
BRL 0.39 (1.4) (1.4) (7.3) RTS 1,076.16 1.6 1.6 -25.4
196.7
148.9
135.2