The document summarizes the daily movement of stock markets in Qatar and other GCC countries. On the Qatar Stock Exchange (QSE), the index declined 1.3% as the Industrials and Real Estate indices fell sharply. Industries Qatar and Ahli Bank were the top losers. In other GCC countries, the stock markets of Saudi Arabia and Kuwait declined slightly while the markets of Dubai and Abu Dhabi rose marginally. The document also provides details on company news and the volumes and values of shares traded in Qatar and other GCC stock exchanges.

1. Page 1 of 7
QSE Intra-Day Movement
Qatar Commentary
The QE Index declined 1.3% to close at 10,516.2. Losses were led by the Industrials
and Real Estate Index indices, falling 2.7% and 1.3%, respectively. Top losers were
Industries Qatar and Ahli Bank, falling 3.8% and 3.2%, respectively. Among the top
gainers, Qatar General Ins. & Reins. Co. gained 2.9%, while Qatar Cinema & Film
Distribution was up 0.8%
GCC Commentary
Saudi Arabia: The TASI Index fell 0.2% to close at 10,318.5. Losses were led by
the Consumer Durables & Apparel and Capital Goods indices, falling 2.2% and
1.9%, respectively. Saudi Arabian Amiantit Co. declined 8.2%, while Al Hassan
Ghazi Ibrahim Shaker Co. was down 7.5%.
Dubai: The DFM Index gained marginally to close at 2,787.7. The Consumer
Staples and Disc. index rose 1.5%, while the Banks index gained 1.1%. Emirates
Refreshments gained 3.9%, while BH Mubasher Financial Services was up 2.8%.
Abu Dhabi: The ADX General Index gained 1.0% to close at 6,614.6. The Banks
index rose 2.1%, while the Real Estate index gained 1.4%. Abu Dhabi National Co.
for Building Materials rose 14.8%, while Union Insurance Company was up 9.1%.
Kuwait: The Kuwait All Share Index fell 0.4% to close at 6,269.6. The Consumer
Staples index declined 2.6%, while the Telecommunications index fell 0.8%. Real
Estate Trade Centers Co. declined 9.2%, while Kuwait Syrian Holding Co. was down
8.4%.
Oman: The MSM 30 Index fell 0.1% to close at 3,844.2. Losses were led by the
Services and Industrial indices, falling 0.5% and 0.2%, respectively. Muscat Finance
declined 4.3%, while Sharqiyah Desalination Company was down 4.2%.
Bahrain: The BHB Index gained marginally to close at 1,538.1. The Commercial
Banks and Services indices rose 0.2% each. Bahrain Duty Free Complex rose 3.3%,
while Ahli United Bank was up 0.4%.
QSE Top Gainers Close* 1D% Vol. ‘000 YTD%
Qatar General Ins. & Reins. Co. 2.24 2.9 5.3 (15.8)
Qatar Cinema & Film Distribution 4.44 0.8 0.6 11.3
Qatar First Bank 1.88 0.7 7,548.4 9.5
Qatari Investors Group 2.69 0.4 11,220.6 48.6
Al Meera Consumer Goods Co. 18.55 0.3 57.4 (10.4)
QSE Top Volume Trades Close* 1D% Vol. ‘000 YTD%
Qatar Aluminum Manufacturing Co 1.64 (2.4) 47,473.9 69.2
Salam International Inv. Ltd. 0.95 (0.5) 42,695.4 45.9
Mazaya Qatar Real Estate Dev. 1.13 (2.5) 14,960.7 (10.6)
Investment Holding Group 1.03 (2.4) 12,968.9 72.0
Qatari Investors Group 2.69 0.4 11,220.6 48.6
Market Indicators 24 May 21 23 May 21 %Chg.
Value Traded (QR mn) 567.4 263.0 115.7
Exch. Market Cap. (QR mn) 612,417.5 619,985.5 (1.2)
Volume (mn) 232.8 135.1 72.3
Number of Transactions 12,553 5,911 112.4
Companies Traded 48 47 2.1
Market Breadth 6:41 14:31 –
Market Indices Close 1D% WTD% YTD% TTM P/E
Total Return 20,817.45 (1.3) (1.7) 3.8 17.8
All Share Index 3,349.59 (1.1) (1.5) 4.7 18.6
Banks 4,439.44 (0.8) (1.2) 4.5 15.5
Industrials 3,389.27 (2.7) (2.9) 9.4 26.1
Transportation 3,371.56 (0.4) (0.8) 2.3 22.5
Real Estate 1,854.69 (1.3) (1.4) (3.8) 17.6
Insurance 2,624.64 (0.1) (1.7) 9.5 23.5
Telecoms 1,068.62 (0.4) (1.0) 5.7 28.3
Consumer 8,097.10 (0.6) (0.9) (0.6) 28.3
Al Rayan Islamic Index 4,523.15 (1.3) (1.8) 5.9 19.4
GCC Top Gainers## Exchange Close# 1D% Vol. ‘000 YTD%
Bank Nizwa Oman 0.10 3.2 10,065.0 1.0
First Abu Dhabi Bank Abu Dhabi 17.00 2.9 26,937.3 31.8
Rabigh Refining & Petro. Saudi Arabia 21.96 2.1 1,936.8 58.9
Aldar Properties Abu Dhabi 3.69 1.7 66,096.8 17.1
Dubai Islamic Bank Dubai 4.83 1.5 13,733.5 4.8
GCC Top Losers## Exchange Close# 1D% Vol. ‘000 YTD%
Industries Qatar Qatar 11.93 (3.8) 7,227.5 9.8
National Petrochemical Saudi Arabia 48.50 (3.4) 926.6 45.9
Mesaieed Petro. Holding Qatar 1.83 (2.9) 5,509.4 (10.5)
Jabal Omar Dev. Co. Saudi Arabia 32.30 (2.3) 2,751.7 11.0
Jarir Marketing Co. Saudi Arabia 203.20 (2.0) 127.0 17.2
Source: Bloomberg (# in Local Currency) (## GCC Top gainers/losers derived from the S&P GCC
Composite Large Mid Cap Index)
QSE Top Losers Close* 1D% Vol. ‘000 YTD%
Industries Qatar 11.93 (3.8) 7,227.5 9.8
Ahli Bank 3.63 (3.2) 2.5 5.3
Mesaieed Petrochemical Holding 1.83 (2.9) 5,509.4 (10.5)
Qatar Oman Investment Company 1.02 (2.9) 6,619.6 15.2
Doha Bank 2.78 (2.7) 1,422.3 17.5
QSE Top Value Trades Close* 1D% Val. ‘000 YTD%
Industries Qatar 11.93 (3.8) 87,111.9 9.8
Qatar Aluminum Manufacturing 1.64 (2.4) 77,672.5 69.2
Salam International Inv. Ltd. 0.95 (0.5) 40,839.7 45.9
QNB Group 17.60 (0.7) 38,661.7 (1.3)
Qatari Investors Group 2.69 0.4 30,647.8 48.6
Source: Bloomberg (* in QR)
Regional Indices Close 1D% WTD% MTD% YTD%
Exch. Val. Traded
($ mn)
Exchange Mkt.
Cap. ($ mn)
P/E** P/B**
Dividend
Yield
Qatar* 10,516.20 (1.3) (1.7) (3.6) 0.8 154.00 167,128.7 17.8 1.6 2.8
Dubai 2,787.68 0.0 1.3 7.0 11.9 91.59 104,144.3 20.9 1.0 2.9
Abu Dhabi 6,614.56 1.0 1.5 9.4 31.1 490.47 254,843.3 22.4 1.9 3.9
Saudi Arabia 10,318.51 (0.2) (0.2) (1.0) 18.7 2,972.64 2,560,917.6 33.9 2.3 2.0
Kuwait 6,269.60 (0.4) (0.3) 2.6 13.0 197.18 119,554.8 38.8 1.6 2.2
Oman 3,844.20 (0.1) (0.6) 2.2 5.1 6.19 17,331.0 11.4 0.7 4.7
Bahrain 1,538.14 0.0 0.1 3.6 3.2 3.38 23,644.4 26.4 1.0 2.2
Source: Bloomberg, Qatar Stock Exchange, Tadawul, Muscat Securities Market and Dubai Financial Market (** TTM; * Value traded ($ mn) do not include special trades, if any)
10,500
10,550
10,600
10,650
10,700
9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00

2. Page 2 of 7
Qatar Market Commentary
 The QE Index declined 1.3% to close at 10,516.2. The Industrials and
Real Estate Index indices led the losses. The index fell on the back of
selling pressure from Foreign shareholders despite buying support from
Qatari, GCC and Arab shareholders.
 Industries Qatar and Ahli Bank were the top losers, falling 3.8% and
3.2%, respectively. Among the top gainers, Qatar General Ins. & Reins.
Co. gained 2.9%, while Qatar Cinema & Film Distribution was up 0.8%.
 Volume of shares traded on Monday rose by 72.3% to 232.8mn from
135.1mn on Sunday. However, as compared to the 30-day moving
average of 274.4mn, volume for the day was 15.2% lower. Qatar
Aluminum Manufacturing Co. and Salam International Inv. Ltd. were the
most active stocks, contributing 20.4% and 18.3% to the total volume,
respectively.
Source: Qatar Stock Exchange (*as a % of traded value)
Ratings
Company Agency Market Type* Old Rating New Rating Rating Change Outlook Outlook Change
Bank of Sharjah Fitch Abu Dhabi LT–IDR/VR# BBB+/b- BBB+/b- – Stable –
Ajman Bank Fitch Abu Dhabi LT–IDR/VR BBB+/b+ BBB+/b+ – Stable –
Source: News reports, Bloomberg (* LT – Long Term, IDR – Issuer Default Rating, VR – Viability Rating, #
Rating Watch Negative)
News
Qatar
 Mazaya’s EGM endorses items on its agenda – Mazaya Real
Estate Development Company announced the results of the
Extra Ordinary General Assembly meeting (EGM) held on May
23, 2021 from Mazaya offices through (ZOOM) and discussed
the following agenda: Item i) Amending the relevant articles from
the current articles of association of the company in accordance
with Article 3 of Law 22 of 2017 so that the real estate
brokerage business is eliminated from the company’s activity.
Item ii) Amending Article 86 of the Articles of Association: “A
percentage (3%) at least must be distributed to the shareholders
from the net profits after deducting the legal reserve and
voluntary reserve ..." Adding a paragraph to Article 59 of the
Articles of Association: “…The shareholder has the right to
object to any decision that he deems to be issued in the interest
of a certain category of shareholders, harms them, or brings a
special benefit to the members of the board or others without
regard to the interest of the company, and has the right to
withdraw the decisions that he objected on in accordance with
the provisions of the law in this regard, and the objection is
recorded in the minutes of the meeting." Item iii) Authorizing the
Chairman of the Board of Directors to issue, sign and publish
the amendments to the Articles of Association after the approval
of the Ministry of Economy and Trade and the Extraordinary
General Assembly on it. (QSE)
 Private sector exports exceed QR1.64bn in February –
Qatar’s private sector exports exceeded QR1.64bn in February
this year compared to QR1.499bn in January 2021, registering a
rise of 10%, said Qatar Chamber in its monthly economic
newsletter released. The newsletter featured the trade of private
sector in February according to the certificate of origin issued by
the Chamber. This increase in private sector’s exports is
attributed to the increase of exports through the General Model
certificate of origin which increased by 16%, Unified GCC model
which increased by 38% and GSP model which grew by 17%.
(Peninsula Qatar)
 QFC targets Russian businesses at 2021 SPIEF – Qatar
Financial Centre (QFC), a leading onshore financial and
business center in the region, is set to participate in the 24th
edition of the St. Petersburg International Economic Forum
(SPIEF), which will be held from June 2 to 5 under the
patronage of the President of the Russian Federation. The QFC
joins over 50 leading Qatari public and private sector entities as
part of the State of Qatar delegation as a Guest Country. Earlier
this year, the QFC held a live webinar, as part of its
#AccessQatar global webinar series, with more than 80 industry
channel partners and stakeholders in collaboration with the
Qatari-Russian Center for Cooperation to introduce prospects
from the sports and the digital sectors to its platform, and a suite
of licensing and post-licensing benefits for businesses that are
looking to expand their operations to one of the world’s most
dynamic economies. QFC’s CEO, Yousuf Mohamed Al Jaida
said, “The QFC continues to make robust contributions to
Qatar’s economic diversification. We currently have over 1,100
licensed firms from around the world on our platform
contributing to the country’s FDI efforts. We aim to continue on
this trajectory during our presence in SPIEF this June where we
look forward to holding fruitful meetings and discussions with
some of Russia’s most prominent business entities.” (Peninsula
Qatar)
 Milaha signs Neptune declaration on Seafarer Well-being –
Milaha, the leading provider of maritime and logistic services in
the Middle East, has signed the Neptune Declaration on
Seafarer Well-being and Crew Change. By joining the Neptune
Declaration, Milaha has joined over 800 other organizations and
corporations across the world who has signed this declaration.
Overall Activity Buy %* Sell %* Net (QR)
Qatari Individuals 49.10% 36.88% 69,364,924.5
Qatari Institutions 19.79% 19.69% 574,027.7
Qatari 68.89% 56.56% 69,938,952.2
GCC Individuals 0.57% 0.13% 2,547,691.6
GCC Institutions 2.04% 0.12% 10,887,302.7
GCC 2.61% 0.25% 13,434,994.2
Arab Individuals 10.54% 10.12% 2,386,535.6
Arab Institutions 0.04% 0.00% 208,855.0
Arab 10.57% 10.12% 2,595,390.6
Foreigners Individuals 2.79% 2.20% 3,349,613.0
Foreigners Institutions 15.14% 30.88% (89,318,950.0)
Foreigners 17.92% 33.08% (85,969,337.1)

3. Page 3 of 7
The Neptune Declaration outlines the main actions that need to
be taken to resolve the crew change crisis. (Peninsula Qatar)
 Ooredoo Enterprise EDGE set to go beyond traditional
connectivity services – Ooredoo Qatar is launching the
Enterprise EDGE service, which can be built onto any standard
connectivity service to accelerate cloud adoption, improve
operational agility, and address network connectivity’s need for
cost-effective bandwidth. Enterprise EDGE delivers Software
Defined Wide Area Network (SD-WAN) where customers can
create a network by mixing and matching from a wide range of
WAN connections. Having transformed its network to be SD-
WAN ready, Ooredoo offers a new capability unrivalled by
traditional connectivity services. Key features of the fully hosted
and Ooredoo-maintained service include simplified WAN
management, reduced provisioning times, strengthened
security, agile managed service offering, and flexible
commercial models including CPE on leasing, thereby reducing
CapEx and OpEx spends. (Gulf-Times.com)
 Digital transformation top priority for QSE to support
investors – The Qatar Stock Exchange (QSE) has accorded
top priority to digital transformation and has incorporated new
features to its website as part of measures to better address the
needs of investors. "We already offer an unparalleled amount of
data and electronic services providing for all the needs of the
investor," QSE’s Chief Executive, Rashid bin Ali Al-Mansoori
said. Highlighting that the digital transformation is a priority for
the QSE; he said this has been done in co-operation with its
partners and stakeholders to meet the needs of its large and
diverse base of investors. The QSE, which is among the first
bourses in the world to encourage transparency and disclosure
by promoting the digitalization of environment, social and
governance (ESG) data, has incorporated new features to its
website, which is designed to be the one-stop market data and
analytics platform. The new company profile pages bring a
wealth of information about the firm. There are quotations such
as historical and intraday prices, performance metrics and news.
(Gulf-Times.com)
 Labor Ministry launches first phase of unified plaints
platform – The Ministry of Administrative Development, Labor
and Social Affairs (MADLSA) has launched the first phase of the
unified platform for complaints and reports, which is suitable for
all modern browsers used for computers, tablets and
smartphones. In a statement, the ministry said this stage of the
new platform aims to enable community members - including
employees, workers in the private sector and domestic workers -
to submit complaints online. The system also provides a
reporting service that enables all citizens and residents of the
country to report public violations of the Labor Law through the
platform. (Gulf-Times.com)
 Qatalum, GE sign pact for sustainable, secure power –
Qatalum has signed an agreement with GE to provide five
Advanced Gas Path (AGP) upgrade units, maintenance services
for a period of 15 years for equipment at its 1,080 megawatts
(MW) power plant, and a suite of cyber security solutions. Four
of the AGP upgrades will be installed on 9F gas turbines at
Qatalum’s power plant, and one unit will be kept as a spare.
This is the first time that the innovative AGP solution will be
deployed in Qatar. It is expected to help Qatalum enhance its
power output by up to 96.7 megawatts (MW) with improved
plant efficiency; increase the availability of its gas turbines and
lower operational expenses by increasing the interval between
their planned maintenance cycles from 24,000 factored fired
hours (FFH) to up to 32,000 FFH; and to reduce its carbon
dioxide emissions for the same level of power output by up to
67,000 tons annually - the equivalent of taking up to 14,000 cars
off Qatar’s roads. (Peninsula Qatar)
 Amir meets President of France-Qatar Friendship Group in
National Assembly – His Highness the Amir Sheikh Tamim bin
Hamad al-Thani met at his Amiri Diwan Office on Monday with
President of the France-Qatar Friendship Group in the French
National Assembly MP Pascal Brindeau and the accompanying
delegation, on the occasion of their visit to the country. During
the meeting, they reviewed the friendship and cooperation
relations between Qatar and the French Republic and the
prospects for strengthening and developing them, in addition to
exchanging conversations and views on the most prominent
regional and international developments. (Gulf-Times.com)
 Qatar offers 10ppm sulfur gasoil for June loading – Qatar
Petroleum offered to sell up to 40k tons of 10ppm sulfur gasoil
from Mesaieed and Ras Laffan for June loading, according to a
tender document seen by Bloomberg. (Bloomberg)
 Build Your Home 2021 expo to be launched on September
20 – Build Your House Exhibition 2021 will be held from
September 20 to 22 at the Qatar National Convention Center
under the patronage of Prime Minister and Minister of Interior,
HE Sheikh Khalid bin Khalifa bin Abdulaziz Al Thani, its
organizer NeXTfairs for Exhibitions & Conferences has
announced. The decision came following NeXTfairs’
consultations with government entities, exhibitors and partners,
and attests to its keenness to follow the decisions taken by the
Council of Ministers, which led to a significant decrease in the
number of COVID-19 cases in Qatar. (Qatar Tribune)
International
 IATA's Walsh says airline industry will be smaller after
crisis – The Head of global airline body IATA expects the
industry to emerge from the coronavirus crisis smaller and more
cautious, doubting airlines will try to expand through
acquisitions. The airline industry has been crippled by the
pandemic, which continues to leave many aircraft around the
world grounded or flying near-empty as demand limps towards a
recovery. “It will be a smaller industry. We are not going to
recover all the capacity,” International Air Transport Association
(IATA) Director General, Willie Walsh said in a pre-recorded
online interview broadcast on Monday. He cited the swathes of
aircraft retired and employees laid off or placed on furlough. “It
will be a more cautious industry. I don’t expect to see M&A
(merger and acquisition) activity, principally because people will
be guarded about the cash they have.” Walsh, the former chief
executive of British Airways owner IAG, said that spending
“valuable cash resources” would be “too risky” but he believes
there will be consolidation through airlines shrinking their
operations and some failing. “It’s going to take airlines time to
repair their balance sheets,” he said. (Reuters)
 Fed's balance sheet could reach $9.0tn by end of 2022, NY
Fed report projects – The Federal Reserve's ongoing asset
purchases could lead the central bank's portfolio to grow to
$9.0tn by the end of 2022, according to projections released by
the New York Fed on Monday. Reserve balances could peak at
$6.2tn by the end of 2022 and then steadily decline, according
to the forecasts, issued as part of an annual report conducted by
the markets team at the New York Fed. The Fed's portfolio
could hold steady through 2025 if proceeds from maturing
securities are reinvested. "After that point, the path of the
portfolio will depend on choices made regarding the portfolio as
the FOMC normalizes the stance of monetary policy," the report
says. The projections assume that the US central bank will
continue buying Treasury securities and mortgage-backed
securities at the current pace of $120bn a month through the
end of 2021, before those purchases will slowly decline to zero
by the end of 2022. Those assumptions on future asset
purchases and interest rates are based on the New York Fed’s
surveys of market participants and primary dealers. The Fed’s

4. Page 4 of 7
balance sheet ballooned last year after the US central bank
acted aggressively to support the economy and credit markets
by lowering interest rates to near zero levels, launching a suite
of emergency lending programs and increasing its monthly
asset purchases. The central bank's portfolio stood at just under
$8tn as of last week, the most recent data available, up from
about $4.1tn at the start of 2020. Based on a range of potential
outcomes, the Fed’s portfolio could either hold steady near $9tn
until 2030 or fall as low as $6.6tn, according to the report.
(Reuters)
 Fed's Brainard says central bank stepping up exploration of
digital dollar – Growing digital currency options could lead to a
"fragmentation" of the payment system that poses financial risks
for households and businesses, Federal Reserve Governor,
Lael Brainard said in a speech that outlined the major policy
questions the Fed will need to address as it explores the
potential development of a digital version of the US dollar. As
the holder of the world's reserve currency, the US must be
highly involved as digital payments become more common and
other countries develop digital currencies that can be used to
send money across borders, Brainard said. "The Federal
Reserve is stepping up its research and public engagement on a
digital version of the US dollar," Brainard said in remarks made
during a virtual conference organized by CoinDesk. Fed officials
are making it clear that the US central bank plans to take an
active role in developing standards as more countries research
and develop central bank digital currencies. Fed Chair, Jerome
Powell said last week that the Fed will release a paper this
summer looking at how CBDCs could affect payments. Powell
has also stressed that the Fed will move carefully and that
congressional action may be required before the United States
could develop a digital dollar. (Reuters)
 Fed's George says does not dismiss risk of inflation surge
– Kansas City Federal Reserve President, Esther George on
Monday cautioned against a “rigid” approach to monetary policy
in a post-pandemic era that may involve different inflation and
employment dynamics than ones seen in the last few years and
worked into the Fed’s current policy framework. That new
framework, emphasizing job generation and faith that the forces
that kept inflation low in recent years will continue to do so, has
led the Fed to pledge to continue buying $120bn a month in
bonds until the job market improves and to leave interest rates
near zero for even longer even as prices begin to rise. While the
bulk of Fed officials suspects those price pressures stem from
temporary problems that will ease in coming months, “I am not
inclined to dismiss today’s pricing signals or to be overly reliant
on historical relationships and dynamics in judging the outlook
for inflation,” George said in remarks prepared for delivery to a
Kansas City Fed agricultural symposium. (Reuters)
 US Treasury Deputy Chief sees G7 backing for 15%-plus
global minimum tax – US Treasury Deputy Secretary, Wally
Adeyemo said he expects strong backing from G7 peers for
Washington's proposed 15%-plus global minimum corporate tax,
which should help solidify support in the US Congress for
domestic corporate tax legislation. "My sense is that you're
going to see a lot of unified support amongst the G7 moving
forward," Adeyemo told Reuters on Monday after France,
Germany, Italy and Japan made positive comments about the
Treasury's proposal. That support may be voiced at an in-
person meeting of G7 finance ministers in London on June 4-5,
Adeyemo said. Optimism about a long-sought comprehensive
deal for how to tax the largest multinationals and digital services
companies has increased since the Treasury last week said it
would accept a global minimum tax rate of 15% or higher. The
rate is well below the Biden administration's proposed 21%
minimum rate for US companies' overseas income and its 28%
proposed domestic corporate tax rate. read more The Financial
Times on Thursday reported that G7 countries are close to
agreement on the corporate taxation of multinational firms.
While the talks are taking place among nearly 140 countries
through the Organization for Economic Cooperation and
Development (OECD), G7 countries the US, Japan, Germany,
Britain, France, Italy and Canada have a strong influence over
multilateral decisions. The reaction from G7 chair Britain, which
currently has a 19% corporate tax rate, has been more guarded.
Asked if Britain would support Washington's 15% minimum
proposal, Prime Minister, Boris Johnson shifted the focus to
taxation of large tech companies such as such as Alphabet Inc
and Facebook Inc. (Reuters)
 US home prices to keep racing ahead with risks to upside –
US house prices will continue to race ahead this year, at nearly
twice the pace predicted just three months ago, according to a
Reuters poll of analysts who said risks to that already upbeat
outlook were skewed to the upside. A strong recovery so far
from the pandemic, ultra-low interest rates, massive fiscal
support and continued demand for more living space as millions
continue to work from home will push house prices higher this
year, they said. The S&P CoreLogic Case-Shiller 20-metro-area
house price index has risen at a steady clip since the middle of
last year and has averaged over 11% growth so far in 2021.
That measure of US house prices is forecast to outpace GDP
growth and consumer inflation - rising at a blistering pace to
average 10.6% this year, almost double the 5.7% predicted in
February, according to the May 11-24 poll of 40 property
analysts. If realized, it would be the fastest annual house price
inflation rate since 2013. "The housing market is in line with
fundamentals as interest rates are attractive and incomes are
high due to fiscal stimulus, making debt servicing relatively
affordable and allowing buyers to qualify for larger mortgages,"
Chief US Economist at BBVA, Nathaniel Karp said. (Reuters)
 BoE's Bailey sees little long-term impact from inflation
spike – Bank of England (BoE) Governor, Andrew Bailey said
that he does not see long-term implications from an expected
pick-up in inflation as the economy emerges from the
coronavirus pandemic. British inflation jumped to 1.5% in April
from 0.7% in March, due to a mix of higher oil prices, rises in
regulated household energy bills and comparisons against weak
prices a year ago during the depths of the pandemic. "The
Monetary Policy Committee judges that these transitory
developments should have few direct implications for inflation
over the medium term," Bailey said in an annual report to
parliament's Treasury Committee. Bailey described public
inflation expectations as "well anchored". The BoE forecast this
month that consumer price inflation would rise above its 2%
target to 2.5% by the end of this year, before slowly falling.
(Reuters)
Regional
 FT: Saudi Arabia seeks to raise $55bn through privatization
– Saudi Arabia seeks to raise about $55bn over the next four
years through privatization to boost revenue and narrow its
budget deficit, the Financial Times (FT) reported, citing Finance
Minister, Mohammed Al-Jadaan. The government identified 160
projects across 16 sectors, including asset sales and public-
private partnerships, through 2025. Asset sales will include
government-owned hotels, television broadcasting towers and
district cooling and desalination plants. The Minister expects to
receive $38bn through asset sales and $16.5bn through public-
private partnerships. The plan does not include entities owned
by the Public Investment Fund (PIF) or further asset sales by
Saudi Aramco. Saudi Arabia’s privatization law is scheduled to
be enacted in July. (Bloomberg)

5. Page 5 of 7
 Fawaz Abdulaziz Alhokair signs two franchise pacts – The
Saudi clothing retailer, Fawaz Abdulaziz Alhokair has signed
agreements with Alo Yoga and Flying Tiger Copenhagen. The
pact with Alhokair is Alo Yoga’s first outside the US, with its
debut mall outlet set to open in Riyadh’s Kingdom Centre.
Starting in 2022, Alhokair and Flying Tiger plan to open 45
stores in 5 years in Saudi Arabia, with 9 outlets and an online
store operational in the first year. (Bloomberg)
 Emirates performing better than expected, President says –
Emirates is performing better than it had initially forecast, the
Dubai-based airline's President said. "We are a lot further on
and much better than we thought we would be at this time," Tim
Clark said in the pre-recorded interview with aviation consultant
John Strickland. "I'm not saying that's good. It's just better than
what we thought we would be (when) we looked at it in the
spring of last year." Emirates will work closer with flydubai but
the two Dubai state-owned airlines will not merge into a single
brand, he said. "The brands would remain separate but going
forward the airlines would operate far more closer than they
have perhaps done in the past," Tim Clark said in a pre-
recorded interview with aviation consultant John Strickland.
(Reuters)
 Emirates warns Boeing it will refuse 777x jets if they don’t
meet commitments – The Head of Emirates airline, one of
Boeing’s biggest customers, has warned the US plane maker
that it would refuse delivery of 777x jets if they fall short of
contractual performance commitments. In an interview
broadcast on Monday, President, Tim Clark said he had not
received any performance details of the jet's engines so far even
though test flights began in 2020. The influential industry
veteran has raised concerns that Boeing had a recent history of
over-promising on performance of new jets, including the in
service 737 MAX and 787 Dreamliner. "We will not accept an
aero plane unless it is performing 100% to contract," Clark told
aviation consultant John Strickland in a pre-recorded online
interview for Dubai's Arabian Travel Market trade show.
(Reuters)
 Fitch downgrades Emirates REIT to 'C' on distressed debt
exchange – Fitch Ratings has downgraded Emirates REIT's
Long-Term Issuer Default Rating (IDR) to 'C' from 'B+' and the
senior unsecured Sukuk trust certificates, issued through
Emirates REIT Sukuk Limited, to 'C'/RR4/35% from 'BB-
'/RR3/57%. The downgrade follows the company's announced
proposal to offer existing unsecured sukuk noteholders a new
secured sukuk debt instrument with changed terms and
conditions. Under the proposed transaction, the current $400mn
unsecured Sukuk notes would be exchanged for secured notes
maturing in December 2024, two years longer than the current
notes' maturity. The existing sukuk's 5.125% rate will be
maintained, but first-year distributions (totaling $10.2mn) will
accrue and be paid at the Sukuk's maturity. Under Fitch's
Distressed Debt Exchange (DDE) criteria, the proposed
transaction would be a material reduction in terms for lenders
and is therefore viewed as a DDE. Should the exchange be
approved and executed, upon completion of the DDE Fitch will
downgrade Emirates REIT's IDR to 'RD' (Restricted Default) and
re-rate it based on business prospects and the new capital
structure. If the transaction does not go ahead, Fitch will re-rate
the company reflecting its constrained liquidity profile and end-
2022 refinance risk. (Bloomberg)
 Dubai to enact law to regulate district cooling services –
Dubai will enact law to regulate district cooling services. The law
will increase efficiency in activities related to generating,
distributing, selling cooling capacity. It will also issue permits
and manage complaints. (Bloomberg)
 Dubai investment firm FIM Partners said to consider raising
SPAC – FIM Partners, the frontier and emerging markets asset
manager backed by EFG Hermes, is considering listing a
special purpose acquisition company in the US, sources said.
The Dubai-based investment firm could seek about $250mn for
the blank-check company, sources said. JPMorgan Chase &
Co. is advising on the potential deal, they said. FIM Partners
has not set a timeline for any listing, and it could decide to wait
before proceeding with a deal given the turmoil in the SPAC
market, sources added. Blank-check company listings in the US
have slowed to a trickle in recent weeks after raising $181bn in
the last five quarters, according to data compiled by Bloomberg.
Even as overall activity slows, the SPAC market has become
more international, with firms from Asia to Europe seeking to
raise funds for deal making. FIM Partners is led by Chief
Executive Officer, Hedi Ben Mlouka, a former Merrill Lynch
banker who previously ran Duet Group’s frontier markets
investing arm. The firm has offices in the UAE, Saudi Arabia and
the UK, according to its website. EFG Hermes agreed to buy a
stake in FIM Partners in 2017. Discussions are ongoing, and
there is no certainty they will lead to a transaction, sources said.
(Bloomberg)
 ADNOC to build world-scale blue ammonia project – Abu
Dhabi National Oil Company (ADNOC) announced that it will
advance a world-scale "blue" ammonia production facility in
Ruwais, Abu Dhabi, in the UAE. ADNOC is an early pioneer in
the emerging hydrogen market, driving the UAE’s leadership in
creating local and international hydrogen value chains, while
contributing to economic growth and diversification in the UAE.
The facility, which has moved to the design phase, will be
developed at the new TA’ZIZ industrial ecosystem and
chemicals hub in Ruwais. Blue ammonia is made from nitrogen
and "blue" hydrogen derived from natural gas feedstocks, with
the carbon dioxide by-product from hydrogen production
captured and stored. Ammonia can be used as a low-carbon
fuel across a wide range of industrial applications, including
transportation, power generation and industries including steel,
cement and fertilizer production. The facility’s capacity will be
1,000 kilotons per annum. (Zawya)
 Booming pipeline of IPO deals said to get push from Abu
Dhabi – Abu Dhabi is dangling incentives to revive initial public
offerings (IPO) after a dry spell of nearly four years that’s defied
the rally in global stock markets. The Abu Dhabi Securities
Exchange (ADX), owned by wealth fund ADQ, is reaching out to
state-run firms and family-owned companies, according to
sources. ADX is offering sweeteners that include flexibility on
the minimum stake size required for share sales and promising
to reduce or forgo listing fees, they said. The inducements have
been enough to get the bourse’s pipeline humming with deals.
ADX Chairman, Mohammed Ali Al Shorafa Al Hammadi has
said it may see at least 10 new listings this year, which would be
the most on record. (Bloomberg)
 RAK Bank issues $75mn Floating Rate Note – The National
Bank of Ras Al-Khaimah (RAKBANK) said it has concluded the
issue of $75mn 2.5-year Floating Rate Note (FRN), which
offered investors a coupon of 3-month USD LIBOR+100 basis
points. The bank, majority owned by the government of the Ras
Al Khaimah Emirate in the UAE, said the FRN was issued by
RAK Funding Cayman Limited and was initiated under the
bank’s 2bn EMTN program. The notes, rated BBB+ by Fitch, will
be used by the lender for general corporate purposes. The
settlement date of the FRN is May 24, 2021, it said. The deal
was arranged by First Abu Dhabi Bank. (Zawya)
 Fitch affirms Bank of Sharjah's IDR at 'BBB+'; maintains VR
on rating watch Negative – Fitch Ratings has affirmed UAE-
based Bank of Sharjah (BOS) Long-Term Issuer Default Rating

6. Page 6 of 7
(IDR) at 'BBB+' with a Stable outlook. Fitch is also maintaining
the bank's Viability Rating (VR) at 'b-' on Rating Watch Negative
(RWN). The RWN on BOS's VR reflects a weaker operating
environment in the UAE and remaining uncertainties around the
extent of the domestic economic recovery. It also factors in our
view that potential further pressures on BOS's asset quality and
capital will result from the bank's exposure to Lebanon through
wholly-owned subsidiary Emirates Lebanon Bank (ELB). Fitch
believes BOS's financial profile may deteriorate further in the
short term. In particular, asset quality is undermined by an
already very high Stage 3 loans ratio (albeit partially provisioned
and collateralized), a Stage 2 loans ratio that is significantly
higher than peers', and very high levels of foreclosed assets on
its balance sheet, which is being actively addressed. Further
asset-quality deterioration will put pressure on already weak
capitalization, with only a thin buffer over the minimum capital
requirements at end-2020. BOS entered the crisis in a fairly
weak financial position, which heightens its sensitivity to the
current depressed operating environment. The RWN also
reflects our view that further pressures on the bank's asset
quality and capital will arise from the exposure to Lebanon
through ELB. These include ELB's foreign-currency assets
(current accounts, long-term placements, and mandatory
reserves) placed at the central bank Banque du Liban (BdL) and
the bank's loan portfolio, which is largely US dollar-
denominated. Fitch still sees uncertainties around BdL's freeze
of Lebanese banks' foreign-currency assets, including
mandatory reserves, as an alternative source for subsidizing
imports of main commodities (such as oil, medicines and flour)
amid the large depletion of its foreign-currency reserves. Fitch
will aim to resolve the RWN within the next six months, once the
impact of these two shocks is fully crystalized in the bank's
credit profile. Fitch will in particular monitor BOS's ability to
decisively address problem assets and capital shortfalls.
(Bloomberg)
 Fitch affirms Ajman Bank at 'BBB+'; outlook Stable – Fitch
Ratings has affirmed Ajman Bank (AJB) Long-Term Issuer
Default Rating (IDR) at 'BBB+' with a Stable outlook and Viability
Rating (VR) at 'b+'. AJB's IDRs, Support Rating (SR) and
Support Rating Floor (SRF) reflect a high probability of support
being available to the bank from the UAE authorities if needed.
Fitch's view of support factors in the sovereign's strong ability to
support the banking system, sustained by sovereign wealth
funds and recurring revenue, mostly from hydrocarbon
production, notwithstanding lower oil prices. Fitch also expects a
high willingness of the UAE authorities to support the banking
sector, which has been demonstrated by their long record of
supporting domestic banks and is also implicit in their close ties
with and partial ownership of some banks. AJB's SRF is two
notches below the UAE domestic systemically important banks'
(D-SIB) SRF of 'A' due to Fitch's view that AJB is of moderate
systemic importance as it is a small bank with less than a 1%
market share of total UAE banking-sector assets. The Stable
Outlook on AJB's Long-Term IDR reflects that on the UAE
sovereign rating. AJB's 'F2' Short-Term IDR is the lower of two
options mapping to a 'BBB+' Long-Term IDR, reflecting a
significant proportion of UAE banks' funding being related to the
government, and that a stress on AJB is likely to come at a time
when the sovereign itself is experiencing some form of stress.
AJB's VR reflects the bank's weak asset quality following
extended deterioration, as well as weak profitability and
capitalization. Our assessment of asset quality is based on high
potential problem financing, weak reserve coverage, a high-risk
appetite and sizable concentrations. The VR also considers the
bank's small franchise, undiversified business model and a
funding and liquidity profile that is weaker than peers'. The VR
also reflects moderate capital buffers with compliant regulatory
capital ratios, albeit high capital encumbrance due to low
coverage of Stage 3 financing and a broadly stable funding base
of mainly local deposits. (Bloomberg)
 Oman sells OMR35mn 91-day bills at yield of 0.778%; bid-
cover at 3.09x – Oman sold OMR35mn of 91-day bills due on
August 25. Investors offered to buy 3.09 times the amount of
securities sold. The bills were sold at a price of 99.806, have a
yield of 0.778% and will settle on May 26. (Bloomberg)

7. Contacts
QNB Financial Services Co. W.L.L.
Contact Center: (+974) 4476 6666
info@qnbfs.com.qa
Doha, Qatar
Saugata Sarkar, CFA, CAIA Shahan Keushgerian Mehmet Aksoy, PhD
Head of Research Senior Research Analyst Senior Research Analyst
saugata.sarkar@qnbfs.com.qa shahan.keushgerian@qnbfs.com.qa mehmet.aksoy@qnbfs.com.qa
Disclaimer and Copyright Notice: This publication has been prepared by QNB Financial Services Co. W.L.L. (“QNBFS”) a wholly-owned subsidiary of Qatar National Bank (Q.P.S.C.). QNBFS is
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Page 7 of 7
Rebased Performance Daily Index Performance
Source: Bloomberg Source: Bloomberg
Source: Bloomberg Source: Bloomberg (*$ adjusted returns, #
Market was closed on May 24, 2021)
60.0
80.0
100.0
120.0
140.0
160.0
Apr-17 Apr-18 Apr-19 Apr-20 Apr-21
QSE Index S&P Pan Arab S&P GCC
(0.2%)
(1.3%)
(0.4%)
0.0%
(0.1%)
1.0%
0.0%
(1.5%)
(0.5%)
0.5%
1.5%
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 1,881.02 (0.0) (0.0) (0.9) MSCI World Index 2,966.44 0.8 0.8 10.3
Silver/Ounce 27.77 0.7 0.7 5.2 DJ Industrial 34,393.98 0.5 0.5 12.4
Crude Oil (Brent)/Barrel (FM Future) 68.46 3.0 3.0 32.2 S&P 500 4,197.05 1.0 1.0 11.7
Crude Oil (WTI)/Barrel (FM Future) 66.05 3.9 3.9 36.1 NASDAQ 100 13,661.17 1.4 1.4 6.0
Natural Gas (Henry Hub)/MMBtu 2.78 (0.7) (0.7) 16.3 STOXX 600 445.07 0.6 0.6 11.4
LPG Propane (Arab Gulf)/Ton 84.25 2.4 2.4 12.0 DAX# 15,437.51 0.0 0.0 11.4
LPG Butane (Arab Gulf)/Ton 87.25 1.2 1.2 25.5 FTSE 100 7,051.59 0.6 0.6 13.2
Euro 1.22 0.3 0.3 0.0 CAC 40 6,408.49 0.8 0.8 15.3
Yen 108.75 (0.2) (0.2) 5.3 Nikkei 28,364.61 0.3 0.3 (1.9)
GBP 1.42 0.0 0.0 3.6 MSCI EM 1,326.68 (0.3) (0.3) 2.7
CHF 1.12 0.1 0.1 (1.3) SHANGHAI SE Composite 3,497.28 0.5 0.5 2.4
AUD 0.78 0.3 0.3 0.8 HANG SENG 28,412.26 (0.2) (0.2) 4.2
USD Index 89.84 (0.2) (0.2) (0.1) BSE SENSEX 50,651.90 0.2 0.2 6.3
RUB 73.48 (0.2) (0.2) (1.3) Bovespa 124,031.60 1.7 1.7 1.3
BRL 0.19 0.9 0.9 (2.3) RTS 1,570.90 0.1 0.1 13.2
137.0
131.9
101.2