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QE Intra-Day Movement

Qatar Commentary

The QE Index rose 1.3% close at 14,350.5. Gains were led by the Telecoms

and Real Estate indices, gaining 2.7% and 1.7%, respectively. Top gainers were

Qatar Cinema & Film Distribution Co. and Ooredoo, rising 9.9% and 3.4%,

respectively. Among the top losers, Salam International Investment Co. fell

1.5%, while Al Khalij Commercial Bank declined 1.1%.

GCC Commentary

Saudi Arabia: The TASI Index fell 0.2% to close at 11,062.4. Losses were led by the Hotel & Tourism and Telecom. & IT indices, falling 0.9% and 0.5%, respectively. Al Alamiya declined 6.5%, while Ash-Sharqiyah Dev. fell 2.8%.

Dubai: The DFM Index gained 2.3% to close at 5,097.8. The Real Estate & Const. index rose 3.5%, while the Financial Ser. & Inv. Index was up 2.0%. Gulfa Mineral Water & Processing Ind. gained 10.0%, while AMAN rose 5.1%.

Abu Dhabi: The ADX benchmark index rose 1.2% to close at 5,233.2. The Consumer index rose 3.3%, while the Real Estate index gained 2.3%. National Takaful Co. gained 9.0%, while Abu Dhabi National Hotels was up 6.7%.

Kuwait: The KSE Index rose 0.2% to close at 7,598.4. The Industrials index gained 0.9%, while the Oil & Gas index was up 0.8%. Kuwait Building Materials Manu. surged 42.1 %, while Real Estate Trade Centers gained 7.2%.

Oman: The MSM Index rose 0.1% to close at 7,504.9. Services index gained 0.1%, while Industrials index rose marginally. National Mineral Water rose 6.0%, while National Gas was up 4.6%.

Bahrain: The BHB Index declined 0.4% to close at 1,467.1. The Industrial index fell 1.9%, while the Investment index was down 0.5%. Bahrain Shipping Repairing & Eng. fell 9.1%, while Al Baraka Banking Group was down 3.0%.

Qatar Exchange Top Gainers Close* 1D% Vol. ‘000 YTD%

Qatar Cinema & Film Distrib. Co. 49.25 9.9 0.5 22.8

Ooredoo 139.60 3.4 114.4 1.7

Ezdan Holding Group 19.99 2.5 15,932.1 17.6

QNB Group 213.00 2.2 292.6 23.8

Barwa Real Estate Co. 42.65 2.2 521.9 43.1

Qatar Exchange Top Vol. Trades Close* 1D% Vol. ‘000 YTD%

Ezdan Holding Group 19.99 2.5 15,932.1 17.6

Mazaya Qatar Real Estate Dev. 24.90 0.4 2,125.8 122.7

Al Khalij Commercial Bank 22.90 (1.1) 1,778.4 14.6

Masraf Al Rayan 57.40 1.6 1,091.5 83.4

Vodafone Qatar 22.40 0.8 973.4 109.2

Market Indicators 18 Sep 14 17 Sep 14 %Chg.

Value Traded (QR mn) 934.4 470.9 98.4

Exch. Market Cap. (QR mn) 762,567.6 752,205.0 1.4

Volume (mn) 28.4 9.8 190.9

Number of Transactions 7,521 5,605 34.2

Companies Traded 42 43 (2.3)

Market Breadth 27:12 16:21 –

Market Indices Close 1D% WTD% YTD% TTM P/E

Total Return 21,403.63 1.3 1.9 44.3 N/A

All Share Index 3,621.54 1.2 1.8 40.0 17.8

Banks 3,527.80 1.3 2.1 44.4 17.3

Industrials 4,760.98 0.9 1.5 36.0 19.3

Transportation 2,368.76 0.2 (0.6) 27.5 15.2

Real Estate 3,001.72 1.7 0.6 53.7 16.0

Insurance 4,178.85 1.0 0.4 78.9 13.2

Telecoms 1,752.24 2.7 5.7 20.5 24.8

Consumer 7,584.22 0.1 1.0 27.5 28.3

Al Rayan Islamic Index 4,843.47 0.9 1.6 59.5 20.9

GCC Top Gainers## Exchange Close# 1D% Vol. ‘000 YTD%

Saudi Real Estate Saudi Arabia 54.14 6.7 4,230.7 56.5

DP World Ltd. Dubai 21.50 6.7 293.6 21.4

Abu Dhabi National Hotels Abu Dhabi 3.20 6.7 7.7 3.2

Nat. Bank Of Abu Dhabi Abu Dhabi 15.40 5.8 2,005.5 21.9

Emaar Properties Dubai 11.60 5.0 60,373.5 67.0

GCC Top Losers## Exchange Close# 1D% Vol. ‘000 YTD%

Nat. Marine Dredging Co. Abu Dhabi 5.90 (9.4) 63.5 (31.4)

Albaraka Banking Group Bahrain 0.81 (3.0) 950.0 14.2

Ithmaar Bank Bahrain 0.17 (2.9) 183.2 (26.1)

Kuwait Projects Co. Kuwait 0.71 (2.7) 1,004.8 20.2

Saudi Dairy & Food. Saudi Arabia 126.63 (2.4) 31.8 46.8

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%

Salam International Investment Co 20.19 (1.5) 585.7 55.2

Al Khalij Commercial Bank 22.90 (1.1) 1,778.4 14.6

Al Khaleej Takaful Group 47.40 (0.8) 46.8 68.8

Qatari Investors Group 60.80 (0.8) 70.2 39.1

Dlala Brokerage & Inv Holding Co. 65.00 (0.8) 108.5 194.1

Qatar Exchange Top Val. Trades Close* 1D% Val. ‘000 YTD%

Ezdan Holding Group 19.99 2.5 317,195.7 17.6

Masraf Al Rayan 57.40 1.6 62,189.6 83.4

QNB Group 213.00 2.2 61,759.3 23.8

Islamic Holding Group 117.90 0.8 54,557.9 156.3

Mazaya Qatar Real Estate Dev. 24.90 0.4 52,929.1 122.7

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* 14,350.50 1.3 1.9 5.5 38.3 256.59 209,401.1 17.9 2.4 3.5

Dubai

5,097.82 2.3 2.8 0.7 51.3 362.38 97,991.6 21.2 1.9 1.9

Abu Dhabi

5,233.18 1.2 1.0 3.0 22.0 197.00 142,146.5 14.9 1.8 3.2

Saudi Arabia

11,062.37 (0.2) (0.0) (0.4) 29.6 2,252.20 601,444.3 21.3 2.7 2.6

Kuwait 7,598.36 0.2 1.5 2.3 0.6 111.62 113,637.9 19.4 1.2 3.6

Oman 7,504.87 0.1 (0.5) 1.9 9.8 15.63 27,489.0 11.3 1.7 3.7

Bahrain 1,467.05 (0.4) (0.1) (0.3) 17.5 3.23 54,332.1 11.4 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)

14,100

14,200

14,300

14,400

9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00

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Qatar Market Commentary

The QE Index rose 1.3% close at 14,350.5. Telecoms and Real Estate indices led the gains. The index rose on the back of buying support from non-Qatari shareholders despite selling pressure from Qatari shareholders.

Qatar Cinema & Film Distribution Co. and Ooredoo were the top gainers, rising 9.9% and 3.4%, respectively. Among the top losers, Salam International Investment Co. fell 1.5%, while Al Khalij Commercial Bank declined 1.1%.

Volume of shares traded on Thursday rose by 190.9% to 28.4mn from 9.8mn on Wednesday. Further, as compared to the 30-day moving average of 17.4mn, volume for the day was 63.4% higher. Ezdan Holding Group and Mazaya Qatar Real Estate Dev. were the most active stocks, contributing 56.1% and 7.5% to the total volume respectively.

Source: Qatar Exchange (* as a % of traded value)

Ratings and Global Economic Data

Ratings Updates

Company Agency Market Type* Old Rating New Rating Rating Change Outlook Outlook Change

Weqaya Takaful Insurance&Reinsurance Co.

S&P Saudi Arabia

LT IFS/CCR BBB/BBB BB/BB – –

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, IFS – Insurer Financial Strength, CCR – Counterparty Credit Ratings)

Global Economic Data

Date Market Source Indicator Period Actual Consensus Previous

09/18 US US Census Bureau Housing Starts MoM August -14.40% -5.20% 15.70%

09/18 US US Census Bureau Building Permits MoM August -5.60% -1.60% 8.10%

09/18 US US Census Bureau Building Permits MoM August -5.60% -1.60% 8.10%

09/18 US Bloomberg Bloomberg Consumer Comfort 14- September 37.2 – 36.5

09/18 US Bloomberg Bloomberg Economic Expectations September 41.5 – 45.0

09/18 US Federal Reserve Household Change in Net Worth 2Q2014 $1,390B – $1,490B

09/19 US Conference Board Leading Index August 0.20% 0.40% 0.90%

09/19 EU European Central Bank ECB Current Account SA July 18.7B – 13.1B

09/19 EU European Central Bank Current Account NSA July 32.3B – 20.8B

09/19 Germany Federal Statistical Off PPI MoM August -0.10% -0.10% -0.10%

09/19 Germany Federal Statistical Off PPI YoY August -0.80% -0.80% -0.80%

09/18 UK Office for National Statist Retail Sales Ex Auto MoM August 0.20% 0.30% 0.50%

09/18 UK Office for National Statist Retail Sales Ex Auto YoY August 4.50% 4.80% 3.40%

09/18 UK Office for National Statist Retail Sales Incl. Auto MoM August 0.40% 0.40% 0.10%

09/18 UK Office for National Statist Retail Sales Incl. Auto YoY August 3.90% 4.00% 2.60%

09/18 Italy Banca D'Italia Current Account Balance July 6,816M – 3,050M

Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted

News

Qatar

QNB Group: Higher land prices spur rent rise in Qatar –

Higher land prices continue to put upward pressure on Qatar’s rent inflation. According to the latest Ministry of Justice data, land prices have increased 52.7% since the beginning of the year. This has led to a rise in rent inflation to 7.9% in August 2014. rising rent inflation is leading to a moderate acceleration in domestic inflation. This is countered by lower international food prices, which are keeping foreign inflation down. Overall, we expect rising rents to cause inflation to rise to 3.4% in 2014 and 4.0% in 2015-16. In summary, Qatar’s fast growing economy and rapid population growth are pushing up land prices, leading to higher rent inflation. This trend is likely to continue into 2015 with moderately higher overall inflation. However, there is a risk that higher growth, large investment spending and the growing population could lead to supply bottlenecks in the economy.

Under these conditions, domestic inflation could rise more than our baseline projections over the medium-term. (QNB Group)

S&P Dow Jones upgrades set to put QE on a higher orbit –

Standard & Poor’s Dow Jones will place the Qatar Exchange (QE) in a higher orbit of ‘emerging market’ from Monday, following the local bourse’s upgrade from frontier status. S&P’s decision to re-classify Qatar as an emerging market was announced last October following a consultation with clients; and it comes after similar moves by Morgan Stanley Composite Index (MSCI). S&P Dow Jones said the weight of the Qatari market in the international BMI index for emerging markets would be 0.9%. QE’s CEO Rashid bin Ali Al-Mansoori termed this announcement as a positive step that would improve the visibility and performance of the stock market in Qatar. (Gulf-Times.com)

Overall Activity Buy %* Sell %* Net (QR)

Qatari 57.72% 74.25% (154,518,407.08)

Non-Qatari 42.28% 25.75% 154,518,407.08

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BRES to sell stake in QD-SBG, QD-CPC to QDREIC – Barwa

Real Estate Company (BRES) has entered into two share sale & purchase agreements with Qatari Diar Real Estate Investment Company (QDREIC). The agreements are related to the sale of its total shareholding in QD-SBG Construction and QD-CPC Industries (consisting of 21.5% shareholding in both companies), for a total sale price of QR69mn. The transaction is subject to satisfying all regulatory requirements, government approvals, and other customary closing conditions. (QE)

IQCD completes CO2 recovery plant – Industries Qatar

(IQCD) announced that the construction work at the QR145.5mn carbon dioxide (CO2) recovery plant in its fuel additive joint venture, Qafac has been completed. The plant is the largest of its kind in the world, which is designed to capture over 500 MT per day of CO2 and utilize it for methanol production. The plant is expected to not only reduce Qafac’s greenhouse gas emissions, but also boost the group’s production of methanol by around 46,000 MT per annum. Meanwhile, IQCD confirmed that it has put its Al Sejeel Petrochemical Complex project on hold and is instead studying a new downstream petrochemical project, which is expected to yield better economic returns. (QE)

Ashghal: F-Ring road to open in two months – The Public

Works Authority (Ashghal) announced that the construction of F-Ring road will be completed on schedule and opened in two months. The project is being implemented at a cost of QR837mn. The 8.7 kilometer long road will have three-to-four lanes on each side and will link south Doha to Hamad International Airport, connecting Mesaimeer Street and the main road leading to Al Wakra. (Peninsula)

Ain Khalid health center to be ready by 2016 – Primary

Health Care Corporation’s (PHCC) Director-General Dr. Mariam Abdul Malik said that construction of a new health center in Ain Khalid is expected to be completed by Ashghal in 2016. Similarly, Al Gharrafa and Al Shahaniya health centers will begin working 24-hours from March 2015, while the health center in Abu Nakhla will follow suit later. PHCC will also start service classification to allow patients to consult doctors without prior appointments. (Peninsula Qatar)

International

US leading indicator inches up 0.2% in August, household net worth rises to record $81.5tn – The Conference Board

said economic activity in the US rose less than expected in August, but was still consistent with the economy expanding at a moderate pace for the rest of this year. The research organization's monthly Leading Economic Index inched up 0.2%, after an upwardly revised 1.1% increase in July. According to the report, the slower-than-expected pace of growth last month was driven by dismal applications for housing permits and new orders for non-defense capital goods. Meanwhile, the net worth of Americans hit a record high in 2Q2014 as the stock market climbed, while household debt rose at its fastest pace since 2007 in a sign of growing confidence among consumers. According to the Federal Reserve’s Flow of Funds report, net worth nudged up 1.7% to $81.5tn. According to the Federal Housing Finance Agency's house price index, house prices rose 0.8% in 2Q2014, which was the 12th consecutive quarterly price increase. The US household debt increased at an annual rate of 3.6% in 2Q2014, excluding charge-offs of home mortgages, as compared to 2.2% in 1Q2014. Federal debt rose at an annual rate of 2.5%, while the total domestic non-financial debt increased at 3.8% to $40.5tn (Reuters)

Fitch: Scottish 'no' vote has no impact on UK ratings –

Credit ratings agency Fitch said that Scotland’s decision to vote

to remain a part of the United Kingdom would have no implication for Britain's sovereign rating, which is one notch below triple-A. Fitch said that the prospect of increased tax and spending powers for Scotland – something promised by the Westminster government – was unlikely to trigger excessive borrowing. Fitch said Scotland's small share of the overall UK economy, and the relatively conservative limits set on Scottish borrowing mean that the fiscal risks posed by further Scottish devolution are not high. (Reuters)

Japan cuts economic view, warns of stalling consumption –

The Japanese government cut its overall economic assessment for the first time in five months as private consumption struggles to recover from the slump caused by the sales tax hike in April, clouding the outlook for a sustained recovery. The government cut its view on private consumption, which accounts for about 60% of the country’s economy, saying that consumer spending is seen pausing, though a pick-up trend remains intact. The assessment followed a series of weak indicators, including falling household spending, which raised doubt about the strength of an expected bounce in 3Q2014. This is a crucial factor for Prime Minister Shinzo Abe's decision in December 2014 on whether to proceed with a second tax rise next year. Further, Japan reported exports have declined in August, while a survey showed confidence among manufacturers fell the most in nearly two years this month. (Reuters)

China to stick to targeted easing in monetary policy –

China’s Premier Li Keqiang said the country will continue on a prudent monetary policy with a focus on targeted easing measures. Addressing the State Council, Li Keqiang said the country had avoided stimulating its economy through Quantitative Easing over the past year. However, Li Keqiang was hopeful that China's massive urbanization drive would help fuel its future economic growth. The statement came after the chairman of the China Construction Bank stated that the central bank has issued $81.4bn worth of three-month loans to China's five biggest banks. (Reuters)

IMF cuts Italy’s growth outlook, hikes deficit, debt – The

International Monetary Fund (IMF) said the Italian economy will shrink in 2014 for a third year running, while the country’s public debt will continue to rise, calling on Matteo Renzi's government to follow through on promised reforms. The IMF said GDP will fall this year by 0.1%, following declines of 1.9% in 2013 and 2.4% in 2012, cutting its previous forecast for growth of 0.3% made in July. The IMF, whose forecasts on Italy have been consistently optimistic in recent years, has forecast that the country will see a growth of 1.1% in 2015 – unchanged from its previous estimate – thanks to an improvement in credit conditions and the effects of easing measures by the European Central Bank. However, the IMF mission chief for Italy said Italian data since the estimates were compiled had been disappointing, so downward revisions for both this year and 2015 can be expected when the fund issues its next round of forecasts in October. (Reuters)

Regional

Mideast investors buy 87% of Goldman Sachs Sukuk –

According to lead managers’ data, banks in the Middle East have bought the vast majority of a debut $500mn Sukuk issued by Goldman Sachs. The firm priced its five-year Sukuk at a profit rate of 2.844%, drawing about $1.5bn of investor orders, after roadshows in Qatar and the UAE. Middle Eastern investors bought 87% of the Sukuk, while 11% went to Europe and 2% to Asian investors. (Reuters)

SABIC signs deal with German firm to increase R&D efficiency – Saudi Basic Industries Corporation (SABIC) has

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signed a MoU with Germany-based hte to set up a satellite laboratory for high throughput experimentation in order to increase its research & development (R&D) efficiency. Under the MoU, hte will provide a technology platform to support SABIC in catalysis R&D. This will include advanced testing equipment, which will be hosted exclusively at hte’s new laboratory in Heidelberg, Germany. hte is a high-throughput experimentation company that provides a valuable upside to heterogeneous catalysis and enables fast track R&D. (GulfBase.com)

Tadawul to be closed for National Day – The Saudi Stock

Exchange (Tadawul) will be closed on September 23, 2014 on the occasion of the Saudi National Day. (Tadawul)

Vela vessel transferred to Bahri's ownership – The National

Shipping Company of Saudi Arabia (Bahri) announced that ‘Leo Star’, a VLCC vessel in the Vela fleet, has been transferred to Bahri's ownership on September 18, 2014 for a cash consideration of SR171.4mn. The ship’s name has been changed to ‘Tinat’. The remaining Vela vessels shall be transferred to Bahri on a staggered basis as per the vessel delivery schedule, which is expected to be completed by the end of 2014. (Tadawul)

IDB set to raise $1.5bn through Sukuk, tightens pricing –

Islamic Development Bank (IDB) has set the size of its five-year Sukuk at $1.5bn, while tightening the pricing to the lower end of its previous guidance. Final pricing was given at a spread of 10 basis points (bps) over mid-swaps; previous guidance was in the range of 10 to 12 bps, and initial price thoughts were 15 bps. CIMB, Deutsche Bank, First Gulf Bank, GIB Capital, HSBC, Maybank, Natixis, National Bank of Abu Dhabi and Standard Chartered Bank are acting as joint bookrunners for the issue. (Reuters)

FAO: Saudi Arabia injects $10.6bn into aquaculture projects – According to a report by the Food & Agricultural Organization

(FAO), the Saudi Arabian Ministry of Agriculture has invested an additional $10.6bn into various aquaculture projects to produce one million tons of fish over the next 16 years. In Saudi Arabia, the UAE and Oman, more investments are being directed towards aquaculture. The main aquaculture producers in the region are Saudi Arabia and Egypt. Significantly, the GCC countries’ per capita average seafood consumption is expected to increase YoY in-line with their population growth. (GulfBase.com)

Aldar focuses on retail, homes, hospitality – Aldar Properties

is focusing its expansion strategy across retail, residential and hospitality segments over the next five years to capitalize on an improving economy. Aldar’s Executive Director of Asset Management, Talal Al Dhiyebi said that the company has 23 projects in the pipeline for sale & lease in residential, retail and other segments across the Emirate, though most of its land bank is within Abu Dhabi city. (GulfBase.com)

Dolphin Energy to expand as UAE gas demand surges –

Dolphin Energy is set to expand significantly early next year, as demand for natural gas continues to surge in the UAE. The company has touched a production milestone of 5tn standard cubic feet (scf) since operations began in 2007. Dolphin Energy’s CEO, Ibrahim Ahmed Al Ansari, said that energy requirements are on the rise to match with the country’s economic development and additional volumes are needed. He added that to meet surging summer demand, the company recently took diverted liquefied natural gas (LNG) supplies from Qatar, taking up to 300mn scf/day between June and September 2014. (GulfBase.com)

S&P: UAE bank credit to grow at 8-9% in 2014-15 –

According to a report by Standard & Poor’s (S&P), banking credit growth in the UAE is expected to be around 8-9% in 2014-15 due to healthy economic activity. The ratings agency expects Dubai-based banks to grow faster than their peers in Abu Dhabi, as they have again focused on lending, with most of them improving on their asset quality and funding profiles. S&P said there has been a visible improvement in non-performing loans in Dubai. A recovery in credit growth is expected as real estate prices recovered substantially, thereby improving the asset quality. According to the report, the credit growth in the first five months of 2014 in the UAE was about 4%. In 2008, due to a sharp correction in real estate prices, there was a drastic increase in bad loans, impacting the asset quality of banks. Due to a substantial recovery in the real estate prices, some of the banks’ exposures have made significant recovery. (GulfBase.com)

UAE central bank foreign assets surge to $89bn in July –

The UAE central bank’s foreign currency assets jumped 29.7% YoY to a record high of AED327.6bn in July 2014, as deposits and holdings of foreign securities rose. Assets include Dubai government bonds worth AED36.72bn. (GulfBase.com)

Etihad to raise $2bn in 2014 – According to Etihad Airways’

CFO James Rigney, the airline is on track to raise $2bn by the end of 2014 to pay for aircraft deliveries and investments in other airlines. Etihad will take delivery of 18 aircraft in 2014, including 10 airbus aircraft and 8 Boeing planes. The company’s equity strategy in eight airlines saw it announce a fresh €300mn capital injection into Air Berlin in early 2014 and a €560mn deal to take a 49% stake in Italy’s Alitalia in August 2014. (GulfBase.com)

Ithmar Capital to list SPAC vehicle on DFM – According to

sources, Ithmar Capital, a private equity firm, has hired Credit Suisse and Deutsche Bank to manage the flotation of a Special Purpose Acquisition Company (SPAC) on the Dubai Financial Market (DFM) by the end of 2014. Through the listing, the company aims to raise around AED1.6bn, with proceeds to be used for investing in healthcare and education assets, including buying stakes in firms currently owned by Ithmar. (Reuters)

UHS appoints CEO – University Hospital Sharjah (UHS) has

appointed Michael Stroud as its CEO. Stroud has held the role of Executive Director and CEO in a number of prestigious hospitals and healthcare groups in the UK. (Bloomberg)

Omniyat launches twin-tower project – Omniyat has unveiled

The Sterling By Omniyat, a gleaming twin-tower project in the Burj Khalifa District. The East House of the project will feature 157 units, including 26 studios, 70 one-bedroom, 42 two-bedroom, 10 three-bedroom, two penthouses and seven townhouses, while The West House consists of 155 units that include 26 studios, 72 one-bedroom, 38 two-bedroom, 10 three-bedroom, two penthouses and seven townhouses, the company said in a statement. The project also features two separate retail areas spread over 10,147 square feet. (GulfBase.com)

Dubai, UK trade hits AED19.4bn in 1H2014 – The UK came

ninth in the list of Dubai’s trade partners in the 1H2014 totaling AED19.4bn. This includes AED12.1bn of imports, AED2.8bn of exports and AED4.4bn of re-exports. (GulfBase.com)

DFSA freezes operations of ESBD – Dubai Financial Services

Authority (DFSA) has frozen the operations of the private banking institution ES Bankers Dubai (ESBD) due to collapse of its parent, Portugal’s Banco Espirito Santo (BES). According to DFSA, the restrictions were deemed necessary in light of the failure of a Swiss-domiciled bank in the Espirito Santo Group,

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Banque Privee Espirito Santo, to honor contractual commitments to ESBD and to repay deposits owed to ESBD in the normal course of business. ESBD is restricted from taking or paying deposits and is required to maintain and preserve its assets. Under the new restrictions, ESBD will be prohibited from transferring any assets to other Espirito Santo Group companies. (GulfBase.com)

Palm Jumeirah to get 100-metre high residential project –

Dubai’s priciest freehold residential destination, Palm Jumeirah will get its first 100-metre high development, courtesy of a joint venture project between Omniyat Properties and Drake & Scull International (DSI). The project, located on a plot near the Viceroy Hotel, is expected to be completed by 2017, and the sale of 90 super-luxury units with floor areas between 2,500 square feet and a substantial 20,000 sq ft will be done in 3Q2014 by invitation only. (GulfBase.com)

Deyaar to showcase diversified projects at Cityscape Global 2014 – Deyaar Development announced that it will

showcase two of its recently launched projects Montrose and The Atria at the upcoming Cityscape Global 2014. The real estate developer will also highlight the special prices and flexible payment plans on offer at some of its completed projects that promise high return on investments. During its participation, Deyaar will focus on attracting investors to the hotel apartment tower at The Atria following the successful sell out of units at the residential tower at the time of its launch in March, 2014. (DFM)

d3 to unveil master plan at Cityscape Global 2014 – Dubai

Design District (d3) is set to unveil its master plan on the opening day of Cityscape Global 2014, in Dubai. As an ecosystem for global design and creative minds, d3 will bring local talent and international luxury brands together in an inspiring, intelligently-curated space located in the centre of Dubai. The District also promises to deliver a unique cutting-edge lifestyle experience for businesses, the workforce, residents and visitors. (Bloomberg)

EFG commissions new glass production facility – Emirates

Float Glass (EFG), a subsidiary of Dubai Investments (DI) has successfully commissioned a new facility aimed at enhancing its production capabilities to cater to the automotive glass sector. The new AED10mn offline facility will further leverage the market leadership of another DI subsidiary Lumiglass Industries, which produces security laminated glass and bullet resistant glass with wide applications for automotive and other industries. With the EFG facility, the companies can now cater to a wide spectrum of glass demand from the automotive industry. (DFM)

Damac Properties signs mortgage facilities deal with ADCB – Damac Properties has signed a mortgage facilities deal with

Abu Dhabi Commercial Bank (ADCB), for clients looking to buy properties in the 42mn square feet golf community Akoya. The mortgage facility from ADCB allows buyers to enjoy convenient payment plans of up to 25 years tenure and with attractive rates fixed for the first 5 years, subject to 50% upfront down-payment. (GulfBase.com)

Waha Capital to buy back up to 10% of stock – Abu Dhabi

based listed investment firm, Waha Capital, plans to buy back up to 10% of its outstanding shares, pending regulatory approval. Waha said the program, approved by its board on September 17, 2014, would allow it to repurchase up to 194mn shares. The buy-back will be carried out within 12 months of approval by the Securities and Commodities Authority. (Reuters)

KIA to expand Germany investments – The Kuwait

Investment Authority (KIA), a long-term investor in German auto maker Daimler AG, wants to ramp up investments in Germany.

KIA owns a 6.8% stake in Daimler. Kuwait has invested almost $18bn in Germany. (Reuters)

Bank Nizwa opens new branch in Sur – Bank Nizwa has

opened a branch in Sur to deliver Islamic banking products and services to its growing customer base across Oman. The addition of the new branch shows the bank's commitment to offer the people of Oman a convenient one-on-one banking experience that combines Shari’ah-compliant products and services with today's dynamic financial requirements. (GulfBase.com)

OSC: Oman’s construction sector contributes 5% to 2013 GDP – According to Oman Society of Contractors (OSC),

Oman’s construction sector contributed 5% of the country's gross domestic product (GDP) in 2013, which is equivalent to OMR1.655bn. The sector has achieved an average annual growth of 5.5% over the last five years and the combined capital employed by contracting firms is around OMR8.8bn. In the latest five-year plan, Oman government has allocated around OMR2.5bn a year to develop infrastructure, which benefits contracting firms. (GulfBase.com)

Al Hassan Engineering receives LOA for $6.9mn EPC contract – Al Hassan Engineering Company Abu Dhabi, a

subsidiary of Al Hassan Engineering Company, has received LOA from M/S GASCO, Abu Dhabi, for $6.88mn EPC (engineering, procurement and construction) projects works for replacement of value and actuator at Buhasa. The project duration is 33 months from September 2014. (MSM)

SAC to boost production capacity – According to Sohar

Aluminium Company’s (SAC) CEO, Mohammed Al Masoudi, the company is planning to spend $35mn over the next five years to boost production capacity. The work is expected to increase annual capacity by about 28,000 tons of primary aluminum. The company currently produces 375,000 tons of primary aluminum a year in the form of hot metal, with two main local consumers. (Reuters)

NCSI: Oman exports total OMR8.3bn – According to trade and

export statistics issued by the National Centre for Statistics and Information (NCSI), the total value of exports from Oman to the end of May 2014, including oil and gas, non-oil products and re-exports recorded a decline of 10.4%, totaling about OMR8.3bn when compared with OMR9.3bn recorded during the corresponding period in 2013. The report reveals that the decline is attributed to the decline in oil and gas exports by 9.9% from OMR6.1bn by the end of May 2013 to OMR5.5bn by the end of May 2014. During the same period, the total value of re-exports declined by 24%, recording re-exports of OMR1.2bn by the end of May 2014 against the total of OMR1.6bn during the same period in 2013. Within the export categories, the only increase recorded was in the non-oil exports which grew by 2.9%, totaling OMR1.5bn by the end of May 2014 compared with OMR1.4bn recorded during the same period in 2013. The growth in non-oil exports is due to the increase in mineral product exports by 10.4%, growing from OMR417mn by the end of May 2013 to OMR461mn by the end of May 2014. Plastic and Rubber products also contributed in the growth figures, increasing by 42.3% from OMR103mn recorded by the end of May 2013 to OMR147mn by the end of May 2014. (Bloomberg)

Larsen & Toubro Oman wins contract to build Adam Airbase – Larsen & Toubro Oman, a subsidiary of India-based

Larsen & Toubro has been awarded with a contract from the Oman’s Ministry of Defence (MoD). The contract was won against stiff international competition for the construction of Adam Air base in Al Dakhiliya Governorate. (Bloomberg)

Page 6 of 7

Diyar Al Muharraq to showcase project in Dubai show –

Bahrain-based urban developer, Diyar Al Muharraq has announced that it will showcase its master-planned island city during the upcoming property show, Cityscape Global 2014, in Dubai. The company will also deliver status updates on its projects including residential, commercial plots, investor related projects, a variety of light industrial and logistics opportunities and the Dragon City project. (GulfBase.com)

Contacts

Saugata Sarkar Abdullah Amin, CFA Shahan Keushgerian

Head of Research Senior Research Analyst Senior Research Analyst

Tel: (+974) 4476 6534 Tel: (+974) 4476 6569 Tel: (+974) 4476 6509

saugata.sarkar@qnbfs.com.qa abdullah.amin@qnbfs.com.qa shahan.keushgerian@qnbfs.com.qa

Sahbi Kasraoui Ahmed Al-Khoudary QNB Financial Services SPC

Manager – HNWI Head of Sales Trading – Institutional Contact Center: (+974) 4476 6666

Tel: (+974) 4476 6544 Tel: (+974) 4476 6548 PO Box 24025 sahbi.alkasraoui@qnbfs.com.qa ahmed.alkhoudary@qnbfs.com.qa Doha, Qatar

DISCLAIMER: This publication has been prepared by QNB Financial Services SPC (“QNBFS”) a wholly-owned subsidiary of Qatar National Bank (“QNB”). QNBFS is regulated by the Qatar Financial Markets Authority and the Qatar Exchange; QNB is regulated by the Qatar Central Bank. This publication expresses the views and opinions of QNBFS at a given time only. It is not an offer, promotion or recommendation to buy or sell securities or other investments, nor is it intended to constitute legal, tax, accounting, or financial advice. We therefore strongly advise potential investors to seek independent professional advice before making any investment decision. Although the information in this report has been obtained from sources that QNBFS believes to be reliable, we have not independently verified such information and it may not be accurate or complete. While this publication has been prepared with the utmost degree of care by our analysts, QNBFS does not make any representations or warranties as to the accuracy and completeness of the information it may contain, and declines any liability in that respect. QNBFS reserves the right to amend the views and opinions expressed in this publication at any time. It may also express viewpoints or make investment decisions that differ significantly from, or even contradict, the views and opinions included in this report.

COPYRIGHT: No part of this document may be reproduced without the explicit written permission of QNBFS. Page 7 of 7

Rebased Performance Daily Index Performance

Source: Bloomberg Source: Bloomberg

Source: Bloomberg Source: Bloomberg, *$ adjusted returns.

80.090.0

100.0110.0120.0130.0140.0150.0160.0170.0180.0190.0200.0210.0220.0

Aug-10 Aug-11 Aug-12 Aug-13 Aug-14

QE Index S&P Pan Arab S&P GCC

(0.2%)

1.3%

0.2%

(0.4%)

0.1%

1.2%

2.3%

(0.8%)

0.0%

0.8%

1.6%

2.4%

3.2%

Saud

i Ara

bia

Qata

r

Kuw

ait

Bah

rain

Om

an

Abu D

habi

Dubai

Asset/Currency Performance Close ($) 1D% WTD% YTD%

Global Indices Performance Close 1D%* WTD%* YTD%*

Gold/Ounce 1,225.20 0.1 (0.4) 1.6 DJ Industrial 17,265.99 0.6 1.6 4.2

Silver/Ounce 18.54 (0.0) (0.5) (4.8) S&P 500 2,011.36 0.5 1.3 8.8

Crude Oil (Brent)/Barrel (FM Future)

97.70 (1.3) 0.6 (11.8) NASDAQ 100 4,593.43 0.7 0.6 10.0

Natural Gas (Henry Hub)/MMBtu

3.96 (0.1) 4.2 (8.7) STOXX 600 347.78 0.8 0.6 (0.7)

LPG Propane (Arab Gulf)/Ton 108.25 (0.5) 0.0 (14.4) DAX 9,798.13 1.2 1.1 (3.9)

LPG Butane (Arab Gulf)/Ton 127.00 (0.4) 1.6 (6.4) FTSE 100 6,819.29 1.0 0.9 (0.1)

Euro 1.29 0.5 (0.3) (6.0) CAC 40 4,464.70 0.53 0.1 (2.6)

Yen 108.69 0.3 1.3 3.2 Nikkei 16,067.57 0.1 (0.6) (4.6)

GBP 1.64 0.7 0.8 (1.0) MSCI EM 1,056.37 (0.6) (0.5) 5.4

CHF 1.07 0.8 (0.0) (4.4) SHANGHAI SE Composite 2,315.93 0.3 (0.8) 7.9

AUD 0.90 0.3 (0.5) 0.8 HANG SENG 24,168.72 (0.9) (1.7) 3.7

USD Index 84.32 (0.0) 0.1 5.4 BSE SENSEX 27,112.21 2.0 0.5 30.4

RUB 38.47 0.3 1.9 17.0 Bovespa 58,374.48 (1.8) 1.2 13.4

BRL 0.42 (0.3) (1.1) (0.1) RTS 1,187.24 (0.2) (2.1) (17.7)

206.2

169.9

152.4