nbk capital mena infocus 05december2013
TRANSCRIPT
8122019 NBK Capital MENA InFocus 05December2013
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December 5 2013
nbkcapi ta l com
MENAinFocus
Inside This Issue
In Focus 1 Kuwait Aviation A Snapshot of Kuwait Internation-al Airportrsquos Passenger Movement and Largest Operators
In this section we look at Kuwait International Airportrsquos
performance in terms of passenger trafc for the past eight
years Moreover we highlight the top 10 destinations and the top
10 carriers out of Kuwait International Airport Kuwait Airways
and Jazeera Airways continue to account for the highest market
share however their regional peers have been growing their
market shares over the past three years Jazeerarsquos network is
solely comprised of destinations within a three-hour ight time
radius from Kuwait Such destinations are logistically difcult
for hub and spoke airlines to serve and are extremely impracticalfor passengers to reach from transit hubs This validates in our
opinion Jazeera Airwaysrsquo strategy of having a network solely
composed of routes that are shorter than three hours
By Sarah Dashti
In Focus 2 Egyptrsquos Natural Gas Sector
Egyptrsquos natural gas sector is currently undergoing a paradigm
shift with the country contemplating importing gas going against
its historical status of being a reliable gas exporter Driven by
a steady rise in natural gas consumption and a tapering off in
natural gas production levels the countryrsquos ability to continueexporting let alone fully cater to domestic demand has come
under question We take a closer look at the governmentrsquos plans
to tackle this situation and the implications for the gas-intensive
industries
By Wadie Khoury
Performance of Regional Indices
70
80
90
100
110
120
130
Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13
SampP Pan Arab LargeMid Composite SampP GCC LargeMid Composite MSCI Jordan+Egypt+Morocco
MENA Market Caps
0
1
1
2
2
2
5
6
10
14
16
41
0 100 200 300 400 500
Palestine
Tunisia
Lebanon
Bahrain
Oman
Jordan
Morocco
Egypt
Kuwait
Qatar
UAE
Saudi Arabia
() Share of MENA Market Cap Market Cap (USD billion)
Performance Summary of MENA Indices
Index Level
as of
30-Nov-13 below
52-Week High
over
52-Week Low
1-Month Period YTD
REGIONAL
SampP Pan Arab LargeMid Composite 157 158 125 -05 255 28 230 584
SampP GCC LargeMid Composite 139 139 112 -05 236 31 214 541
MSCI Jordan Egypt amp Morocco 867 934 717 -72 209 -07 -35 867
GCC
MSCI Bahrain 155 189 155 -176 02 -67 -87 16
MSCI Kuwait 568 587 540 -33 51 -13 38 104
MSCI Oman 761 807 691 -58 101 -13 71 24
MSCI Qatar 942 942 750 00 255 76 246 152
SampP Saudi Arabia LargeMid Composite 204 206 155 -12 317 46 272 451
MSCI UAE 344 352 213 -24 615 -16 578 169
OTHER MENA
MSCI Egypt 1252 1325 992 -55 262 14 54 63
MSCI Jordan 197 235 172 -162 143 07 -104 24
MSCI Morocco 273 313 247 -127 104 -61 -80 54
MSCI Lebanon 679 775 648 -125 48 18 -73 9
MSCI Tunisia 1291 1437 1276 -101 11 -15 -51 8
Palestine SE 530 537 451 -13 175 112 109 1
INDEX 52-Week High 52-Week Low
ChangeMarket Cap
(USD
billions)
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KUWAIT AVIATION A SNAPSHOT OF KUWAIT INTER-
NATIONAL AIRPORTrsquoS PASSENGER MOVEMENT AND
LARGEST OPERATORS
In this section we look at Kuwait International Airportrsquos performance in terms of passenger trafc
for the past eight years Moreover we highlight the top 10 destinations and the top 10 carriers outof Kuwait International Airport Kuwait Airways and Jazeera Airways continue to account for the
highest market share however their regional peers have been growing their market shares over the
past three years Jazeerarsquos network is solely comprised of destinations within a three-hour ight
time radius from Kuwait Such destinations are logistically difcult for hub and spoke airlines
to serve and are extremely impractical for passengers to reach from transit hubs This validates
in our opinion Jazeera Airwaysrsquo strategy of having a network solely composed of routes that are
shorter than three hours
Passenger traffic grew at a CAGR of 65 over the past eight years
Since 2005 Kuwait International Airport has sustained healthy growth and witnessed an increase
in passenger trafc Based on data provided by the Kuwait Directorate General for Civil Aviation
(DGCA) passenger trafc grew at a CAGR of 65 to reach 89 million in 2012 and increased
by 54 YoY in 9M2013 to stand at 72 million Passenger trafc growth has therefore outpaced
the 3 CAGR for the Kuwaiti population over the same period Monthly growth rates in the rst
nine months of 2013 were somewhat volatile for example there was a steep decline of 14 YoY
in July and recovery in August leading to an expansion of 26 YoY This volatility was due to
seasonality and the movement in the holy month of Ramadan
Figure 1-1 Passenger Traffic
0
1
2
3
4
5
6
7
8
9
10
2005 2006 2007 2008 2009 2010 2011 2012 9M2012 9M2013
P a s s e n g e r s ( m i l l i o n )
CAGR 65
54
Source DGCA and NBK Capital
Passenger traffic has risen
at a CAGR of 65 over the
past eight years higher than
the growth in the Kuwaiti
population (30 CAGR)
Passenger traffic grew by 54
YoY in 9M2013
IN FOCUS 1
Sarah DashtiT +965 2224 6986
E sarahdashtinbkcapitalcom
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MENAinFocusDecember 5 2013
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Top destinations for the first nine months of 2013
Dubai and Cairo have dominated the top 10 destinations since 2010 holding market shares of
192 and 63 respectively in 9M2013 Doha came in third in 9M2013 with a 6 market
share having been in fourth place for the past three years Dubairsquos ruling status as the top
destination out of Kuwait is justied by Dubairsquos status both as a tourist attraction and a major hub
for transit passengers Four carriers serve Dubai out of Kuwait Airport Kuwait Airways Jazeera
Airways (Jazeera) Emirates and ydubai In contrast Cairo is a pure origin and destination (OampD)
route with three carriers serving Cairo from Kuwait Kuwait Airways Jazeera and Egypt Air Below
is a list of the top 10 destinations in FY2012 and 9M2013
Figure 1-2 Top 10 Destinations in Terms of Passenger Numbers from Kuwait Interna-
tional Airport in FY2012 and 9M2013
208926
216598
230376
232215
235846
355949
369125
422137
447795
1375212
London - Heathrow
Amman
Beirut
Alexandria - Borg El Arab
Mumbai
Jeddah
Bahrain
Doha
Cairo
Dubai
9M2013 - Number of Passengers
Source DGCA and NBK Capital
The two Kuwaiti airlines accounted for 354 of the passenger traffic at
Kuwait International Airport in 9M2013
Kuwait Airways remains the largest carrier out of Kuwait International Airport with a market share
of 232 during the rst nine months of 2013 followed by Jazeera Airways with a market share
of 122 Emirates ranked third with a market share of 90 followed by ydubai with 61
However Kuwait Airways has continued to lose market share to regional peers (Emirates ydubai
Etihad Airways and Qatar Airways) over the past three years - it accounted for 306 of the
market in 2011 During this period ydubai increased its market share to 61 in 9M2013 from
40 in 2011 In addition Turkish Airways entered the list of the top 10 for the rst time and
acquired 3 of the Kuwait aviation market in 9M2013
Figure 1-3 Kuwaiti Airlinesrsquo Market Share versus Regional Peers
0
5
10
15
20
25
30
35
2011 2012 9M2013
Kuwait Airways Jazeera Regional Peers
Emirates ydubai Etihad Airways and Qatar Airways Source DGCA and NBK Capital
Dubai continues to dominateout of the top 10 destinations
out of Kuwait
253101
254013
257280
267418
295219
510350
528742
569832
603954
1577629
Sharjah
Alexandria - Borg El Arab
Amman
Mumbai
Beirut
Jeddah
Doha
Bahrain
Cairo
Dubai
FY2012 - Number of Passengers
Kuwait Airways has been losing
market share to regional peers
dropping to 232 in 9M2013
from 306 in 2011
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MENAinFocusDecember 5 2013
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Figure 1-6 Jazeerarsquos Market Share at Kuwait International Airport
Route Jazeera Airways Market Share -
as of September 2013
Number of Airlines Serving
Route as of September 2013
Al Najaf 83 2
Alexandria 19 6
Amman 40 4
Assiut 51 2
Bahrain 10 4
Beirut 38 3
Cairo 25 3
Dubai 15 4
Istanbul 6 3
Jeddah 16 5
Luxor 74 2
Mashhad 17 7Riyadh 12 3
Sharm El Sheikh 64 3
Sohag 42 4
Source Jazeera Airways
Figure 1-7 Summary of NBK Capitalrsquos Forecasts for Jazeera
2012A 2013F 2014F 2015F
EPS (KD) 0039 0041 0048 0052
EPS Growth 321 65 166 89Net Income Growth 321 239 166 89
PE 149 120 103 95
Dividend Yield 00 42 48 53
EVEBITDA 111 96 83 79
Revenue (KD Millions) 626 663 728 782
Revenue Growth 83 58 99 74
EBITDA (KD Millions) 245 281 328 344
EBITDA Growth 21 15 17 5
EBITDA Margin 391 424 450 440
Net Income (KD Millions) 139 173 201 219
Net Income Growth 321 239 166 89
Net Income Margin 223 261 277 281
Source NBK Capital
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IN FOCUS 2 EGYPTrsquoS NATURAL GAS SECTOR
Egypt has close to two trillion cubic meters (TCM) of proven natural gas reserves representing just
over 1 of the worldrsquos proven reserves Egypt is the third-largest reserve in Africa falling behind
Algeria (45 TCM) and Nigeria (52 TCM) according to BPrsquos 2013 World Statistical Review
Unsurprisingly the Egyptian government has continuously promoted the domestic use of naturalgas as an energy source compared to other resources In addition Egypt had been ramping up its
production capacity considerably until 2009 allowing the country to export natural gas through
the Arab Gas Pipeline which serves as a key energy provider for many neighboring countries (such
as Jordan)
However between 2010 and 2012 annual production levels in Egypt remained relatively at (c
61 billion cubic meters) largely due to the political issues the country faced in 2011 onwards
According to the chairman of Egypt Natural Gas Holding Company (EGAS ndash a government-owned
entity that manages various gas projects) Egyptrsquos daily gas production actually declined by 85
YoY to an average of 015 billion cubic meters (BCM) during the rst nine months of 2013
The growth of domestic consumption (estimated at around 526 BCM in 2012) on the other
hand has not wavered marching on at a 7 CAGR between 2009 and 2012 Consequently as
consumption levels increased and production levels declined Egyptrsquos natural gas export levels
declined from 105 BCM in 2009 (20 of total production) to just 24 BCM in 2012 (4 of total
production) The Minister for Oil and Gas mentioned late last year that Egypt might have to start
importing natural gas by mid-2013 in order to meet domestic demand essentially transforming
Egypt from a net exporter to a net importer for the rst time in recent history
Figure 2-1 Egyptrsquos Production and Consumption Levels
20
25
30
35
40
45
50
55
60
65
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
B i l l i o n C u b i c M e t e
r s
Production (BCM) Consumption (BCM)
Source BP Statistical Review June 2013 and GASCO
Implications of switching from being a net exporter to a net importer
Until now there has not been any credible information on the issue of Egypt importing naturalgas however rumors continue to oat around According to an article on Egypt Oil amp Gas Egypt
is looking into importing LNG The article went on to mention that Egypt has signed an agreement
to begin importing natural gas from Algeria starting in 2013 at a cost of USD 11 per MMBTU
(compared to a market price of USD 12 per MMBTU) It also mentioned that Egypt would discuss
a potential agreement with other countries as a potential supplier of natural gas as well Although
imports from some of these countries may prove to be cheaper compared with global LNG prices
it is still well above the price paid to the local gas producers
Natural gas is a highly subsidized product in Egypt In the event of it importing natural gas
the Egyptian government could have additional nancial implications to deal with According
to the Central Bank of Egypt the country spent a total of EGP 96 billion in FY 2011-2012 on
subsidizing petroleum-related expenses making up 20 of the governmentrsquos total expenditureAs a result importing natural gas from Algeria or other neighboring countries could signicantly
increase petroleum related subsidies
Figure 2-2 Natural Gas Local Consumption and Export
(as a Percentage of Total Production)
83 80 8389
96
17 20 1711
4
-
20
40
60
80
100
120
0
25
50
75
100
2008 2009 2010 2011 2012
B C M
( ) o f T o t a l P r o d u c t i o n
Axis Title
Local Consumption [LHS] Export [LHS] Total Export [RHS]
Wadie Khoury
T +971 4365 2806
E wadiekhourynbkcapitalcom
Natural gas production levels
steadied between 2009-2012
while consumption levels
increased As a result Egyptrsquos
exports have fallen quite
significantly
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Figure 2-3 Petroleum Subsidies
63 67
17
96
5 11
178 182
42
203
64
104
0
5
10
15
20
25
20
40
60
80
100
120
20082009 20092010 20102011 20112012 3M201120123M20122013
E G P B i l l i o n s
Axis Title
Total Petroleum Subsidies [LHS] Petroleum Subsidy As of Expenditure [RHS]
Source Central Bank of Egypt
Latest developments
The Egyptian government recently announced its intention to introduce measures that will
incentivize producers to increase exploration of natural gas and thus will likely translate to an
increase in production levels Notably the Minister for Petroleum revealed in November 2013
that Egypt has signed 14 new agreements (out of 21 expected) with foreign companies including
the likes of Shell BICO and Petzed as well as some Canadian and Greek companies to explore for
oil and gas in Sinai the Gulf of Suez and the Western and Nubian deserts The total investment
will be close to USD 470 million Moreover the minister mentioned that EGAS is contemplating
modifying seven existing contracts with foreign rms in the near future
Such steps are a clear indication that the government is aware of the potential impact of dwindling
levels of gas production However Egypt remains in a relatively fragile state and we have yet to see
how the progress may unfold Recent pledges to Egypt from some of the GCC countries could be
very helpful in supporting this venture
Focus industries in Egypt
Egypt is highly reliant on natural gas as an energy source with the majority of its power generated
in this way According to GASCO (the countryrsquos main transmitter and distributor of natural gas
across Egypt) in 2012 the power generation sector was made up of over 30 power stations
which consumed 58 of the total gas production In a distant second place local distribution
companies (LDCs) consumed 20 of the total natural gas production LDCs are responsible for
the supply of gas to the domestic commercial and industrial sectors as well as gas stations The
industrial sector (including iron steel fertilizers cement and ceramic companies) consumed
12 while the petrochemical sector accounted for the remaining 10
Petroleum subsidies make
up a large portion of total
government expenses If Egypt
begins importing natural gas
this could push up government
expenditure even further
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COMPANIES UNDER COVERAGE (PRICES AS OF NOVEMBER 30 2013)
2012 2013 2014 2012 2013 2014
Banking
Abu Dhabi Commercial Bank UAE AED 534 23-Oct-13 450 Hold 105 100 98 12 11 10
Abu Dhabi Islamic Bank UAE AED 479 29-Oct-13 420 Hold 94 89 83 09 09 08
Arab Na tiona l Bank Saudi Arabia SAR 2990 10-Oct-13 3170 Hold 107 103 98 14 13 12BankMuscat Oman OMR 060 09-Oct-13 064 Hold 95 97 86 12 11 10
Banque Saudi Fr ans i Saudi Ar abia SAR 3330 09-Oct-13 3350 Hold 98 105 95 13 12 11
Commercial International Bank Egypt EGP 4316 21-Oct-13 4980 Buy 120 96 77 25 22 18
Credit Agricole Egypt Egypt EGP 1365 09-Oct-13 1390 Hold 82 60 57 17 14 12
Doha Bank Qatar QAR 5580 22-Oct-13 5230 Hold 112 106 97 19 15 15
First Gulf Bank UAE AED 1700 29-Oct-13 1640 Hold 127 117 110 18 17 16
National Bank of Abu Dhabi UAE AED 1200 24-Oct-13 1140 Hold 122 108 105 16 14 13
Na tiona l Bank o f Oman Om an OMR 030 23-Oct-13 026 Hold 83 89 84 11 10 10
Qatar Islamic Bank Qatar QAR 6980 21-Oct-13 6700 Hold 133 107 93 14 14 13
Qatar National Bank Qatar QAR 17200 09-Oct-13 15680 Hold 142 127 113 25 23 20
Riyad Bank Saudi Arabia SAR 2860 07-Oct-13 3000 Hold 122 115 107 13 13 12
Samba Financial Group Saudi Arabia SAR 4930 08-Oct-13 5800 Hold 102 99 90 14 13 12
Saudi Ho llandi Bank Saudi Ar abia SAR 3790 08-Oct-13 3660 Hold 118 102 92 18 16 14
The Commercial Bank of Qatar Qatar QAR 6880 31-Oct-13 7850 Hold 85 86 79 11 11 11
The Saudi Bri tish Bank Saudi Arabia SAR 4020 08-Oct-13 4140 Hold 123 109 97 20 18 16
Union National Bank UAE AED 494 31-Oct-13 560 Hold 77 75 70 09 08 07
2012 2013 2014 2012 2013 2014
Building Materials
Lecico Egypt EGP 860 26-Nov-13 984 Hold 110 nm 64 52 43 39
Oman Cement Co Oman OMR 079 07-Nov-13 087 Hold 150 152 117 112 111 89
Qatar National Cement Co Qatar QAR 10300 06-Nov-13 10850 Hold 119 113 105 88 86 81
Raysut Cement Co Oman OMR 197 11-Nov-13 133 Sell 160 122 105 126 107 96
Yamama Cement Saudi Arabia SAR 5825 06-Oct-13 5270 Hold 144 134 139 101 99 102
Contractors
Arabtec UAE AED 260 14-Nov-13 200 Sell 293 241 217 157 93 71
DEPA UAE USD 061 04-Sep-13 042 Hold nm 81 96 nm 65 76
Drake and Scull UAE AED 132 14-Nov-13 114 Hold 320 186 139 172 106 85
Consumer Goods and Retail
Abdullah Al Othaim Markets Saudi Arabia SAR 12100 28-Oct-13 14100 Hold 158 134 116 123 105 94
Agthia UAE AED 408 25-Nov-13 450 Hold 196 156 140 135 112 100
Alhokair Saudi Arabia SAR 12250 28-Oct-13 13000 Hold 208 178 142 185 142 114
Almarai Saudi Arabia SAR 5375 27-Oct-13 6700 Buy 224 219 171 181 156 130
GB Auto Egypt EGP 3000 03-Nov-13 3850 Buy 178 205 105 61 62 44
Juhayna Egypt EGP 1245 16-Sep-13 860 Hold 270 225 185 168 146 109
Oriental Weavers Egypt EGP 2932 20-Oct-13 3950 Buy 97 61 45 57 43 38
Savola Saudi Arabia SAR 5900 24-Oct-13 5600 Hold 210 177 156 148 117 112
Petrochemicals and Oil
National Petrochemical Company Saudi Arabia SAR 2495 27-Oct-13 1980 Sell nm nm 141 na 244 95
Saudi Arabian Fertilizer Co Saudi Arabia SAR 15475 20-Oct-13 14360 Hold 133 164 150 108 131 123
Saudi Basic Industries Corp Saudi Arabia SAR 10875 27-Oct-13 10910 Hold 132 124 115 68 65 62
Saudi Industrial Investment Group Saudi Arabia SAR 2990 27-Oct-13 2740 Hold 246 168 119 nm 253 99
Saudi Kayan Petrochemicals Saudi Arabia SAR 1365 20-Oct-13 1040 Sell nm nm 120 244 167 96
Yanbu National Petrochemicals Saudi Arabia SAR 6700 27-Oct-13 6160 Hold 154 127 123 87 78 78
Industries Qatar Qatar QAR 16820 22-Oct-13 16250 Hold 121 124 116 107 109 93
Real Estate
Emaar UAE AED 630 14-Nov-13 688 Hold 181 151 159 180 125 125
Mabanee Kuwait KWD 1140 21-Nov-13 110 Hold 240 153 153 243 137 137
Palm Hills Developments Egypt EGP 251 27-Aug-13 na na na na na na na na
Salhia Real Estate Co Kuwait KWD 0390 27-Nov-13 039 Hold 242 210 211 142 142 147
Sodic Egypt EGP 2166 14-Nov-13 2960 Buy 79 65 53 66 53 39
Talaat Mustafa Group Egypt EGP 560 03-Dec-13 784 Buy 212 205 137 166 134 98
Telecommunications
Batelco Bahrain BHD 031 29-Sep-13 038 Buy 81 80 77 41 33 31
du UAE AED 636 02-Oct-13 390 Sell 147 154 154 72 65 58
Etisalat UAE AED 1150 10-Oct-13 1340 Hold 135 122 113 49 43 42
Mobily Saudi Arabia SAR 8500 09-Jul-13 8710 Hold 109 101 96 84 77 73
Nawras Oman OMR 057 08-Oct-13 058 Hold 100 125 113 42 42 41
Omantel Oman OMR 153 08-Oct-13 171 Hold 99 97 95 49 48 48
Ooredoo Qatar QAR 13640 09-Jul-13 14310 Hold 148 129 107 44 42 41
Saudi Telecom Saudi Arabia SAR 5325 07-Jul-13 4780 Hold 145 121 105 55 67 66
Telecom Egypt Egypt EGP 1331 11-Oct-13 1520 Hold 107 96 97 46 53 53
Vodafone Qatar Qatar QAR 1110 01-Oct-13 960 Hold nm nm nm 716 223 159
Transportation amp Logistics
Air Arabia UAE AED 142 12-Nov-13 105 Sell 158 151 148 127 91 76
Aramex UAE AED 270 29-Oct-13 330 Buy 134 117 99 80 69 61
DP World UAE USD 1609 29-Oct-13 1550 Hold 240 235 200 115 113 103
Jazeera Airways Kuwait KWD 0495 13-Nov-13 0600 Buy 149 120 103 111 96 83Others
El Sewedy Electric Egypt EGP 2772 01-Dec-13 3200 Hold 150 103 98 84 63 60
Maridive Group Egypt USD 103 09-Sep-13 122 Hold 255 430 113 93 112 62
PE EVEBITDA
RecommendationPE PB
Secto r Country Currenc yClosing
Price
Date of Last
Report
12-Month
Fair ValueRecommendation
Secto r Country Currenc yClosing
Price
Date of Last
Report
12-Month
Fair Value
Fiscal year ends in March
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MENAinFocusDecember 5 2013
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RISK AND RECOMMENDATION GUIDE
RECOMMENDATION UPSIDE (DOWNSIDE) POTENTIAL
BUY MORE THAN 20
HOLD BETWEEN -15 AND 20
SELL LESS THAN -15
RISK LEVEL
LOW RISK HIGH RISK
1 2 3 4 5
DISCLAIMER
The information opinions tools and materials contained in this report (the ldquoContentrdquo) are not addressed to or intended for publication distribution to or use by
any individual or legal entity who is a citizen or resident of or domiciled in any jurisdiction where such distribution publication availability or use would constitute a
breach of the laws or regulations of such jurisdiction or that would require Watani Investment Company KSCC (ldquoNBK Capitalrdquo) or its parent company its subsidiaries
or its afliates (together ldquoNBK Grouprdquo) to obtain licenses approvals or permissions from the regulatory bodies or authorities of such jurisdiction The Content unless
expressly mentioned otherwise is under copyright to NBK Capital Neither the Content nor any copy of it may be in any way reproduced amended transmitted to copied
or distributed to any other party without the prior express written consent of NBK Capital All trademarks service marks and logos used in this report are trademarks or
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The Content is provided to you for information purposes only and is not to be used construed or considered as an offer or the solicitation of an offer to sell or to buy or
to subscribe for any investment (including but not limited to securities or other nancial instruments) No representation or warranty express or implied is given by NBK
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and NBK Capital makes no representation or warranty in this respect
The Content shall not be considered investment legal accounting or tax advice or a representation that any investment or strategy is suitable or appropriate for your
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you are advised to contact an independent tax adviser
The information and opinions contained in this report have been obtained or derived from sources that NBK Capital believes are reliable without being independently
veried as to their accuracy or completeness NBK Capital believes the information and opinions expressed in this report are accurate and complete however NBK
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NBK Capital accepts no liability for any direct indirect or consequential loss arising from the use of the Content This report is not to be relied upon as a substitution for
the exercise of independent judgment In addition NBK Capital may have issued and may in the future issue other reports that are inconsistent with and reach different
conclusions from the information presented in this report Those reports reect the different assumptions views and analytical methods of the analysts who prepared
the reports and NBK Capital is under no obligation to ensure that such other reports are brought to your attention NBK Capital may be involved in many businesses that
relate to companies mentioned in this report and may engage with them Past performance should not be taken as an indication or guarantee of future performance and
no representation or warranty express or implied is made regarding future performance Information opinions and estimates contained in this report reect a judgment
at the reportrsquos original date of publication by NBK Capital and are subject to change without notice
The value of any investment or income may fall as well as rise and you may not get back the full amount invested Where an investment is denominated in a currency
other than the local currency of the recipient of the research report changes in the exchange rates may have an adverse effect on the value price or income of that
investment In the case of investments for which there is no recognized market it may be difcult for investors to sell their investments or to obtain reliable information
about their value or the extent of the risk to which they are exposed
NBK Capital has not reviewed the addresses of the hyperlinks to or the websites referred to in the report and takes no responsibility for the content contained therein
Such address or hyperlink (including addresses or hyperlinks to NBK Capitalrsquos own website material) is provided solely for your convenience and information and the
content of the linked site does not in any way form part of this document Accessing such websites or following such links through this report or NBK Capitalrsquos website
shall be at your own risk
NBK Group may have a nancial interest in one or any of the securities that are the subject of this report Funds managed by NBK Group may own the securities that
are the subject of this report NBK Group may own units in one or more of the aforementioned funds
NBK Group may be in the process of soliciting or executing fee-earning mandate or doing business for companies that are either the subject of this report or are
mentioned in this report As a result you should be aware that NBK Group may have material conict of interest that could affect the objectivity of this report
copy COPYRIGHT NOTICE
This is a publication of NBK Capital No part of this publication may be reproduced or duplicated without the prior consent of NBK Capital
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MENAinFocusDecember 5 2013
nbkcapi ta l com | 11
NATIONAL BANK OF KUWAIT
Kuwait
Head Ofce
38th Floor Arraya II
Al Shuhada Street Block 6 Sharq
POBox 4950 Safat 13050
Kuwait
T +965 2224 6900
F +965 2224 6905
MENA Research
35th Floor Arraya II
Al Shuhada Street Block 6 Sharq
POBox 4950 Safat 13050 Kuwait
T +965 2224 6663
F +965 2224 6905
E menaresearchnbkcapitalcomkw
Brokerage
37th Floor Arraya II
Al Shuhada Street Block 6 Sharq
POBox 4950 Safat 13050 Kuwait
T +965 2224 6964
F +965 2224 6978
E brokeragenbkcapitalcom
United Arab Emirates
NBK Capital Limited
Precinct Building 3 Ofce 404
Dubai International Financial Center
Sheikh Zayed Road POBox 506506
Dubai UAE
T +971 4 365 2800
F +971 4 365 2805
Turkey
NBK Capital
Arastima ve Musavirlik AS
Sun Plaza 30th Floor
Dereboyu Sk No24
Maslak 34398 Istanbul Turkey
T +90 212 276 5400
F +90 212 276 5401
Egypt
NBK Capital Securities
Egypt SAE
20 Aisha EL Taymouria St
Garden City
Cairo Egypt
T +202 2798 5900
F +202 2798 5905
NBK CAPITAL
Kuwait
National Bank of Kuwait SAK
Abdullah Al-Ahmed Street
PO Box 95 Safat 13001
Kuwait City Kuwait
T +965 2242 2011F +965 2243 1888
Telex 22043-22451 NATBANK
INTERNATIONAL NETWORK
Bahrain
National Bank of Kuwait SAK
Bahrain Branch
GB Corp Tower Block 346
Road 4626 Building 1411
POBox 5290 Manama
Kingdom of Bahrain
Tel +973 17 155 555
Fax +973 17 104 860
Saudi Arabia
National Bank of Kuwait SAK
Jeddah Branch
Al-Khalidiah Distric
Al-Mukmal Tower POBox 15385
Jeddah 21444 Saudi Arabia
Tel +966 2 603 6300
Fax +966 2 603 6318
United Arab Emirates
National Bank of Kuwait SAK
Dubai Branch
Sheikh Rashed Road Port Saeed Area
ACICO Business Park
POBox 88867 Dubai UAE
Tel +971 4 2929 222
Fax +971 4 2943 337
Jordan
National Bank of Kuwait SAK
Head Ofce
Al Hajj Mohd Abdul Rahim Street
Hijazi Plaza Building 70
POBox 941297Amman ndash 11194 Jordan
Tel +962 6 580 0400
Fax +962 6 580 0441
Lebanon
National Bank of Kuwait
(Lebanon) SAL
Sanayeh Head Ofce
BAC Building Justinien Street
POBox 11-5727 Riad El-Solh
1107 2200 Beirut Lebanon
Tel +961 1 759 700
Fax +961 1 747 866
Iraq
Credit Bank of Iraq
Street 9 Building 187
Sadoun Street District 102
POBox 3420
Baghdad Iraq
Tel +964 1 71821987191944
+964 1 71884067171673
Fax +964 1 7170156
Qatar
International Bank of Qatar
QSC (Associated Company)
Suhaim Bin Hamad Street
POBox 2001
Doha Qatar
Tel +974 4447 8000
Fax +974 4447 3710
Egypt
Al Watany Bank of Egypt
13 Al Themar Street
Gameat Al Dowal AlArabia
Fouad Mohie El Din Square
Mohandessin GizaTel +202 333 888 1617
Fax +202 333 79302
United Kingdom
National Bank of Kuwait
(International) PLC
Head Ofce
13 George street
London W1U 3QJ UK
Tel +44 20 7224 2277
Fax +44 20 7224 2101
France
National Bank of Kuwait
(International) PLC
Paris Branch
90 Avenue des Champs-Elysees
75008 Paris France
Tel +33 1 5659 8600
Fax +33 1 5659 8623
Turkey
Turkish Bank
Head Ofce
Valikonagi Avenue No 1
POBox 34371 Nisantasi
Istanbul
Tel +90 212 373 6373
Fax +90 212 225 0353
Singapore
National Bank of Kuwait SAK
Singapore Branch
9 Rafes Place 24-02
Republic Plaza
Singapore 048619Tel +65 6222 5348
Fax +65 6224 5438
China
National Bank of Kuwait SAK
Shanghai Representative Ofce
Suite 1003 10th oor
Azia Center
1233 Lujiazui Ring Road
Shanghai 200120
China
Tel +86 21 6888 1092
Fax +86 21 5047 1011
United States of America
National Bank of Kuwait SAK
New York Branch
299 Park Avenue 17th Floor
New York NY 10171
USA
Tel +1 212 303 9800
Fax +1 212 319 8269
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KUWAIT DUBAI ISTANBUL CAIRO
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KUWAIT AVIATION A SNAPSHOT OF KUWAIT INTER-
NATIONAL AIRPORTrsquoS PASSENGER MOVEMENT AND
LARGEST OPERATORS
In this section we look at Kuwait International Airportrsquos performance in terms of passenger trafc
for the past eight years Moreover we highlight the top 10 destinations and the top 10 carriers outof Kuwait International Airport Kuwait Airways and Jazeera Airways continue to account for the
highest market share however their regional peers have been growing their market shares over the
past three years Jazeerarsquos network is solely comprised of destinations within a three-hour ight
time radius from Kuwait Such destinations are logistically difcult for hub and spoke airlines
to serve and are extremely impractical for passengers to reach from transit hubs This validates
in our opinion Jazeera Airwaysrsquo strategy of having a network solely composed of routes that are
shorter than three hours
Passenger traffic grew at a CAGR of 65 over the past eight years
Since 2005 Kuwait International Airport has sustained healthy growth and witnessed an increase
in passenger trafc Based on data provided by the Kuwait Directorate General for Civil Aviation
(DGCA) passenger trafc grew at a CAGR of 65 to reach 89 million in 2012 and increased
by 54 YoY in 9M2013 to stand at 72 million Passenger trafc growth has therefore outpaced
the 3 CAGR for the Kuwaiti population over the same period Monthly growth rates in the rst
nine months of 2013 were somewhat volatile for example there was a steep decline of 14 YoY
in July and recovery in August leading to an expansion of 26 YoY This volatility was due to
seasonality and the movement in the holy month of Ramadan
Figure 1-1 Passenger Traffic
0
1
2
3
4
5
6
7
8
9
10
2005 2006 2007 2008 2009 2010 2011 2012 9M2012 9M2013
P a s s e n g e r s ( m i l l i o n )
CAGR 65
54
Source DGCA and NBK Capital
Passenger traffic has risen
at a CAGR of 65 over the
past eight years higher than
the growth in the Kuwaiti
population (30 CAGR)
Passenger traffic grew by 54
YoY in 9M2013
IN FOCUS 1
Sarah DashtiT +965 2224 6986
E sarahdashtinbkcapitalcom
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Top destinations for the first nine months of 2013
Dubai and Cairo have dominated the top 10 destinations since 2010 holding market shares of
192 and 63 respectively in 9M2013 Doha came in third in 9M2013 with a 6 market
share having been in fourth place for the past three years Dubairsquos ruling status as the top
destination out of Kuwait is justied by Dubairsquos status both as a tourist attraction and a major hub
for transit passengers Four carriers serve Dubai out of Kuwait Airport Kuwait Airways Jazeera
Airways (Jazeera) Emirates and ydubai In contrast Cairo is a pure origin and destination (OampD)
route with three carriers serving Cairo from Kuwait Kuwait Airways Jazeera and Egypt Air Below
is a list of the top 10 destinations in FY2012 and 9M2013
Figure 1-2 Top 10 Destinations in Terms of Passenger Numbers from Kuwait Interna-
tional Airport in FY2012 and 9M2013
208926
216598
230376
232215
235846
355949
369125
422137
447795
1375212
London - Heathrow
Amman
Beirut
Alexandria - Borg El Arab
Mumbai
Jeddah
Bahrain
Doha
Cairo
Dubai
9M2013 - Number of Passengers
Source DGCA and NBK Capital
The two Kuwaiti airlines accounted for 354 of the passenger traffic at
Kuwait International Airport in 9M2013
Kuwait Airways remains the largest carrier out of Kuwait International Airport with a market share
of 232 during the rst nine months of 2013 followed by Jazeera Airways with a market share
of 122 Emirates ranked third with a market share of 90 followed by ydubai with 61
However Kuwait Airways has continued to lose market share to regional peers (Emirates ydubai
Etihad Airways and Qatar Airways) over the past three years - it accounted for 306 of the
market in 2011 During this period ydubai increased its market share to 61 in 9M2013 from
40 in 2011 In addition Turkish Airways entered the list of the top 10 for the rst time and
acquired 3 of the Kuwait aviation market in 9M2013
Figure 1-3 Kuwaiti Airlinesrsquo Market Share versus Regional Peers
0
5
10
15
20
25
30
35
2011 2012 9M2013
Kuwait Airways Jazeera Regional Peers
Emirates ydubai Etihad Airways and Qatar Airways Source DGCA and NBK Capital
Dubai continues to dominateout of the top 10 destinations
out of Kuwait
253101
254013
257280
267418
295219
510350
528742
569832
603954
1577629
Sharjah
Alexandria - Borg El Arab
Amman
Mumbai
Beirut
Jeddah
Doha
Bahrain
Cairo
Dubai
FY2012 - Number of Passengers
Kuwait Airways has been losing
market share to regional peers
dropping to 232 in 9M2013
from 306 in 2011
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Figure 1-6 Jazeerarsquos Market Share at Kuwait International Airport
Route Jazeera Airways Market Share -
as of September 2013
Number of Airlines Serving
Route as of September 2013
Al Najaf 83 2
Alexandria 19 6
Amman 40 4
Assiut 51 2
Bahrain 10 4
Beirut 38 3
Cairo 25 3
Dubai 15 4
Istanbul 6 3
Jeddah 16 5
Luxor 74 2
Mashhad 17 7Riyadh 12 3
Sharm El Sheikh 64 3
Sohag 42 4
Source Jazeera Airways
Figure 1-7 Summary of NBK Capitalrsquos Forecasts for Jazeera
2012A 2013F 2014F 2015F
EPS (KD) 0039 0041 0048 0052
EPS Growth 321 65 166 89Net Income Growth 321 239 166 89
PE 149 120 103 95
Dividend Yield 00 42 48 53
EVEBITDA 111 96 83 79
Revenue (KD Millions) 626 663 728 782
Revenue Growth 83 58 99 74
EBITDA (KD Millions) 245 281 328 344
EBITDA Growth 21 15 17 5
EBITDA Margin 391 424 450 440
Net Income (KD Millions) 139 173 201 219
Net Income Growth 321 239 166 89
Net Income Margin 223 261 277 281
Source NBK Capital
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IN FOCUS 2 EGYPTrsquoS NATURAL GAS SECTOR
Egypt has close to two trillion cubic meters (TCM) of proven natural gas reserves representing just
over 1 of the worldrsquos proven reserves Egypt is the third-largest reserve in Africa falling behind
Algeria (45 TCM) and Nigeria (52 TCM) according to BPrsquos 2013 World Statistical Review
Unsurprisingly the Egyptian government has continuously promoted the domestic use of naturalgas as an energy source compared to other resources In addition Egypt had been ramping up its
production capacity considerably until 2009 allowing the country to export natural gas through
the Arab Gas Pipeline which serves as a key energy provider for many neighboring countries (such
as Jordan)
However between 2010 and 2012 annual production levels in Egypt remained relatively at (c
61 billion cubic meters) largely due to the political issues the country faced in 2011 onwards
According to the chairman of Egypt Natural Gas Holding Company (EGAS ndash a government-owned
entity that manages various gas projects) Egyptrsquos daily gas production actually declined by 85
YoY to an average of 015 billion cubic meters (BCM) during the rst nine months of 2013
The growth of domestic consumption (estimated at around 526 BCM in 2012) on the other
hand has not wavered marching on at a 7 CAGR between 2009 and 2012 Consequently as
consumption levels increased and production levels declined Egyptrsquos natural gas export levels
declined from 105 BCM in 2009 (20 of total production) to just 24 BCM in 2012 (4 of total
production) The Minister for Oil and Gas mentioned late last year that Egypt might have to start
importing natural gas by mid-2013 in order to meet domestic demand essentially transforming
Egypt from a net exporter to a net importer for the rst time in recent history
Figure 2-1 Egyptrsquos Production and Consumption Levels
20
25
30
35
40
45
50
55
60
65
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
B i l l i o n C u b i c M e t e
r s
Production (BCM) Consumption (BCM)
Source BP Statistical Review June 2013 and GASCO
Implications of switching from being a net exporter to a net importer
Until now there has not been any credible information on the issue of Egypt importing naturalgas however rumors continue to oat around According to an article on Egypt Oil amp Gas Egypt
is looking into importing LNG The article went on to mention that Egypt has signed an agreement
to begin importing natural gas from Algeria starting in 2013 at a cost of USD 11 per MMBTU
(compared to a market price of USD 12 per MMBTU) It also mentioned that Egypt would discuss
a potential agreement with other countries as a potential supplier of natural gas as well Although
imports from some of these countries may prove to be cheaper compared with global LNG prices
it is still well above the price paid to the local gas producers
Natural gas is a highly subsidized product in Egypt In the event of it importing natural gas
the Egyptian government could have additional nancial implications to deal with According
to the Central Bank of Egypt the country spent a total of EGP 96 billion in FY 2011-2012 on
subsidizing petroleum-related expenses making up 20 of the governmentrsquos total expenditureAs a result importing natural gas from Algeria or other neighboring countries could signicantly
increase petroleum related subsidies
Figure 2-2 Natural Gas Local Consumption and Export
(as a Percentage of Total Production)
83 80 8389
96
17 20 1711
4
-
20
40
60
80
100
120
0
25
50
75
100
2008 2009 2010 2011 2012
B C M
( ) o f T o t a l P r o d u c t i o n
Axis Title
Local Consumption [LHS] Export [LHS] Total Export [RHS]
Wadie Khoury
T +971 4365 2806
E wadiekhourynbkcapitalcom
Natural gas production levels
steadied between 2009-2012
while consumption levels
increased As a result Egyptrsquos
exports have fallen quite
significantly
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Figure 2-3 Petroleum Subsidies
63 67
17
96
5 11
178 182
42
203
64
104
0
5
10
15
20
25
20
40
60
80
100
120
20082009 20092010 20102011 20112012 3M201120123M20122013
E G P B i l l i o n s
Axis Title
Total Petroleum Subsidies [LHS] Petroleum Subsidy As of Expenditure [RHS]
Source Central Bank of Egypt
Latest developments
The Egyptian government recently announced its intention to introduce measures that will
incentivize producers to increase exploration of natural gas and thus will likely translate to an
increase in production levels Notably the Minister for Petroleum revealed in November 2013
that Egypt has signed 14 new agreements (out of 21 expected) with foreign companies including
the likes of Shell BICO and Petzed as well as some Canadian and Greek companies to explore for
oil and gas in Sinai the Gulf of Suez and the Western and Nubian deserts The total investment
will be close to USD 470 million Moreover the minister mentioned that EGAS is contemplating
modifying seven existing contracts with foreign rms in the near future
Such steps are a clear indication that the government is aware of the potential impact of dwindling
levels of gas production However Egypt remains in a relatively fragile state and we have yet to see
how the progress may unfold Recent pledges to Egypt from some of the GCC countries could be
very helpful in supporting this venture
Focus industries in Egypt
Egypt is highly reliant on natural gas as an energy source with the majority of its power generated
in this way According to GASCO (the countryrsquos main transmitter and distributor of natural gas
across Egypt) in 2012 the power generation sector was made up of over 30 power stations
which consumed 58 of the total gas production In a distant second place local distribution
companies (LDCs) consumed 20 of the total natural gas production LDCs are responsible for
the supply of gas to the domestic commercial and industrial sectors as well as gas stations The
industrial sector (including iron steel fertilizers cement and ceramic companies) consumed
12 while the petrochemical sector accounted for the remaining 10
Petroleum subsidies make
up a large portion of total
government expenses If Egypt
begins importing natural gas
this could push up government
expenditure even further
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COMPANIES UNDER COVERAGE (PRICES AS OF NOVEMBER 30 2013)
2012 2013 2014 2012 2013 2014
Banking
Abu Dhabi Commercial Bank UAE AED 534 23-Oct-13 450 Hold 105 100 98 12 11 10
Abu Dhabi Islamic Bank UAE AED 479 29-Oct-13 420 Hold 94 89 83 09 09 08
Arab Na tiona l Bank Saudi Arabia SAR 2990 10-Oct-13 3170 Hold 107 103 98 14 13 12BankMuscat Oman OMR 060 09-Oct-13 064 Hold 95 97 86 12 11 10
Banque Saudi Fr ans i Saudi Ar abia SAR 3330 09-Oct-13 3350 Hold 98 105 95 13 12 11
Commercial International Bank Egypt EGP 4316 21-Oct-13 4980 Buy 120 96 77 25 22 18
Credit Agricole Egypt Egypt EGP 1365 09-Oct-13 1390 Hold 82 60 57 17 14 12
Doha Bank Qatar QAR 5580 22-Oct-13 5230 Hold 112 106 97 19 15 15
First Gulf Bank UAE AED 1700 29-Oct-13 1640 Hold 127 117 110 18 17 16
National Bank of Abu Dhabi UAE AED 1200 24-Oct-13 1140 Hold 122 108 105 16 14 13
Na tiona l Bank o f Oman Om an OMR 030 23-Oct-13 026 Hold 83 89 84 11 10 10
Qatar Islamic Bank Qatar QAR 6980 21-Oct-13 6700 Hold 133 107 93 14 14 13
Qatar National Bank Qatar QAR 17200 09-Oct-13 15680 Hold 142 127 113 25 23 20
Riyad Bank Saudi Arabia SAR 2860 07-Oct-13 3000 Hold 122 115 107 13 13 12
Samba Financial Group Saudi Arabia SAR 4930 08-Oct-13 5800 Hold 102 99 90 14 13 12
Saudi Ho llandi Bank Saudi Ar abia SAR 3790 08-Oct-13 3660 Hold 118 102 92 18 16 14
The Commercial Bank of Qatar Qatar QAR 6880 31-Oct-13 7850 Hold 85 86 79 11 11 11
The Saudi Bri tish Bank Saudi Arabia SAR 4020 08-Oct-13 4140 Hold 123 109 97 20 18 16
Union National Bank UAE AED 494 31-Oct-13 560 Hold 77 75 70 09 08 07
2012 2013 2014 2012 2013 2014
Building Materials
Lecico Egypt EGP 860 26-Nov-13 984 Hold 110 nm 64 52 43 39
Oman Cement Co Oman OMR 079 07-Nov-13 087 Hold 150 152 117 112 111 89
Qatar National Cement Co Qatar QAR 10300 06-Nov-13 10850 Hold 119 113 105 88 86 81
Raysut Cement Co Oman OMR 197 11-Nov-13 133 Sell 160 122 105 126 107 96
Yamama Cement Saudi Arabia SAR 5825 06-Oct-13 5270 Hold 144 134 139 101 99 102
Contractors
Arabtec UAE AED 260 14-Nov-13 200 Sell 293 241 217 157 93 71
DEPA UAE USD 061 04-Sep-13 042 Hold nm 81 96 nm 65 76
Drake and Scull UAE AED 132 14-Nov-13 114 Hold 320 186 139 172 106 85
Consumer Goods and Retail
Abdullah Al Othaim Markets Saudi Arabia SAR 12100 28-Oct-13 14100 Hold 158 134 116 123 105 94
Agthia UAE AED 408 25-Nov-13 450 Hold 196 156 140 135 112 100
Alhokair Saudi Arabia SAR 12250 28-Oct-13 13000 Hold 208 178 142 185 142 114
Almarai Saudi Arabia SAR 5375 27-Oct-13 6700 Buy 224 219 171 181 156 130
GB Auto Egypt EGP 3000 03-Nov-13 3850 Buy 178 205 105 61 62 44
Juhayna Egypt EGP 1245 16-Sep-13 860 Hold 270 225 185 168 146 109
Oriental Weavers Egypt EGP 2932 20-Oct-13 3950 Buy 97 61 45 57 43 38
Savola Saudi Arabia SAR 5900 24-Oct-13 5600 Hold 210 177 156 148 117 112
Petrochemicals and Oil
National Petrochemical Company Saudi Arabia SAR 2495 27-Oct-13 1980 Sell nm nm 141 na 244 95
Saudi Arabian Fertilizer Co Saudi Arabia SAR 15475 20-Oct-13 14360 Hold 133 164 150 108 131 123
Saudi Basic Industries Corp Saudi Arabia SAR 10875 27-Oct-13 10910 Hold 132 124 115 68 65 62
Saudi Industrial Investment Group Saudi Arabia SAR 2990 27-Oct-13 2740 Hold 246 168 119 nm 253 99
Saudi Kayan Petrochemicals Saudi Arabia SAR 1365 20-Oct-13 1040 Sell nm nm 120 244 167 96
Yanbu National Petrochemicals Saudi Arabia SAR 6700 27-Oct-13 6160 Hold 154 127 123 87 78 78
Industries Qatar Qatar QAR 16820 22-Oct-13 16250 Hold 121 124 116 107 109 93
Real Estate
Emaar UAE AED 630 14-Nov-13 688 Hold 181 151 159 180 125 125
Mabanee Kuwait KWD 1140 21-Nov-13 110 Hold 240 153 153 243 137 137
Palm Hills Developments Egypt EGP 251 27-Aug-13 na na na na na na na na
Salhia Real Estate Co Kuwait KWD 0390 27-Nov-13 039 Hold 242 210 211 142 142 147
Sodic Egypt EGP 2166 14-Nov-13 2960 Buy 79 65 53 66 53 39
Talaat Mustafa Group Egypt EGP 560 03-Dec-13 784 Buy 212 205 137 166 134 98
Telecommunications
Batelco Bahrain BHD 031 29-Sep-13 038 Buy 81 80 77 41 33 31
du UAE AED 636 02-Oct-13 390 Sell 147 154 154 72 65 58
Etisalat UAE AED 1150 10-Oct-13 1340 Hold 135 122 113 49 43 42
Mobily Saudi Arabia SAR 8500 09-Jul-13 8710 Hold 109 101 96 84 77 73
Nawras Oman OMR 057 08-Oct-13 058 Hold 100 125 113 42 42 41
Omantel Oman OMR 153 08-Oct-13 171 Hold 99 97 95 49 48 48
Ooredoo Qatar QAR 13640 09-Jul-13 14310 Hold 148 129 107 44 42 41
Saudi Telecom Saudi Arabia SAR 5325 07-Jul-13 4780 Hold 145 121 105 55 67 66
Telecom Egypt Egypt EGP 1331 11-Oct-13 1520 Hold 107 96 97 46 53 53
Vodafone Qatar Qatar QAR 1110 01-Oct-13 960 Hold nm nm nm 716 223 159
Transportation amp Logistics
Air Arabia UAE AED 142 12-Nov-13 105 Sell 158 151 148 127 91 76
Aramex UAE AED 270 29-Oct-13 330 Buy 134 117 99 80 69 61
DP World UAE USD 1609 29-Oct-13 1550 Hold 240 235 200 115 113 103
Jazeera Airways Kuwait KWD 0495 13-Nov-13 0600 Buy 149 120 103 111 96 83Others
El Sewedy Electric Egypt EGP 2772 01-Dec-13 3200 Hold 150 103 98 84 63 60
Maridive Group Egypt USD 103 09-Sep-13 122 Hold 255 430 113 93 112 62
PE EVEBITDA
RecommendationPE PB
Secto r Country Currenc yClosing
Price
Date of Last
Report
12-Month
Fair ValueRecommendation
Secto r Country Currenc yClosing
Price
Date of Last
Report
12-Month
Fair Value
Fiscal year ends in March
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RISK AND RECOMMENDATION GUIDE
RECOMMENDATION UPSIDE (DOWNSIDE) POTENTIAL
BUY MORE THAN 20
HOLD BETWEEN -15 AND 20
SELL LESS THAN -15
RISK LEVEL
LOW RISK HIGH RISK
1 2 3 4 5
DISCLAIMER
The information opinions tools and materials contained in this report (the ldquoContentrdquo) are not addressed to or intended for publication distribution to or use by
any individual or legal entity who is a citizen or resident of or domiciled in any jurisdiction where such distribution publication availability or use would constitute a
breach of the laws or regulations of such jurisdiction or that would require Watani Investment Company KSCC (ldquoNBK Capitalrdquo) or its parent company its subsidiaries
or its afliates (together ldquoNBK Grouprdquo) to obtain licenses approvals or permissions from the regulatory bodies or authorities of such jurisdiction The Content unless
expressly mentioned otherwise is under copyright to NBK Capital Neither the Content nor any copy of it may be in any way reproduced amended transmitted to copied
or distributed to any other party without the prior express written consent of NBK Capital All trademarks service marks and logos used in this report are trademarks or
service marks or registered trademarks or registered service marks of NBK Capital
The Content is provided to you for information purposes only and is not to be used construed or considered as an offer or the solicitation of an offer to sell or to buy or
to subscribe for any investment (including but not limited to securities or other nancial instruments) No representation or warranty express or implied is given by NBK
Capital or any of its respective directors partners ofcers afliates employees advisors or representatives that the investment referred to in this report is suitable for
you or for any particular investor Receiving this report shall not mean or be interpreted that NBK Capital will treat you as its customer If you are in doubt about suchinvestment we recommend that you consult an independent investment advisor since the investment contained or referred to in this report may not be suitable for you
and NBK Capital makes no representation or warranty in this respect
The Content shall not be considered investment legal accounting or tax advice or a representation that any investment or strategy is suitable or appropriate for your
individual circumstances or otherwise constitutes a personal recommendation to you NBK Capital does not offer advice on the tax consequences of investments and
you are advised to contact an independent tax adviser
The information and opinions contained in this report have been obtained or derived from sources that NBK Capital believes are reliable without being independently
veried as to their accuracy or completeness NBK Capital believes the information and opinions expressed in this report are accurate and complete however NBK
Capital gives no representations or warranty express or implied as to the accuracy or completeness of the Content Additional information may be available upon request
NBK Capital accepts no liability for any direct indirect or consequential loss arising from the use of the Content This report is not to be relied upon as a substitution for
the exercise of independent judgment In addition NBK Capital may have issued and may in the future issue other reports that are inconsistent with and reach different
conclusions from the information presented in this report Those reports reect the different assumptions views and analytical methods of the analysts who prepared
the reports and NBK Capital is under no obligation to ensure that such other reports are brought to your attention NBK Capital may be involved in many businesses that
relate to companies mentioned in this report and may engage with them Past performance should not be taken as an indication or guarantee of future performance and
no representation or warranty express or implied is made regarding future performance Information opinions and estimates contained in this report reect a judgment
at the reportrsquos original date of publication by NBK Capital and are subject to change without notice
The value of any investment or income may fall as well as rise and you may not get back the full amount invested Where an investment is denominated in a currency
other than the local currency of the recipient of the research report changes in the exchange rates may have an adverse effect on the value price or income of that
investment In the case of investments for which there is no recognized market it may be difcult for investors to sell their investments or to obtain reliable information
about their value or the extent of the risk to which they are exposed
NBK Capital has not reviewed the addresses of the hyperlinks to or the websites referred to in the report and takes no responsibility for the content contained therein
Such address or hyperlink (including addresses or hyperlinks to NBK Capitalrsquos own website material) is provided solely for your convenience and information and the
content of the linked site does not in any way form part of this document Accessing such websites or following such links through this report or NBK Capitalrsquos website
shall be at your own risk
NBK Group may have a nancial interest in one or any of the securities that are the subject of this report Funds managed by NBK Group may own the securities that
are the subject of this report NBK Group may own units in one or more of the aforementioned funds
NBK Group may be in the process of soliciting or executing fee-earning mandate or doing business for companies that are either the subject of this report or are
mentioned in this report As a result you should be aware that NBK Group may have material conict of interest that could affect the objectivity of this report
copy COPYRIGHT NOTICE
This is a publication of NBK Capital No part of this publication may be reproduced or duplicated without the prior consent of NBK Capital
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NATIONAL BANK OF KUWAIT
Kuwait
Head Ofce
38th Floor Arraya II
Al Shuhada Street Block 6 Sharq
POBox 4950 Safat 13050
Kuwait
T +965 2224 6900
F +965 2224 6905
MENA Research
35th Floor Arraya II
Al Shuhada Street Block 6 Sharq
POBox 4950 Safat 13050 Kuwait
T +965 2224 6663
F +965 2224 6905
E menaresearchnbkcapitalcomkw
Brokerage
37th Floor Arraya II
Al Shuhada Street Block 6 Sharq
POBox 4950 Safat 13050 Kuwait
T +965 2224 6964
F +965 2224 6978
E brokeragenbkcapitalcom
United Arab Emirates
NBK Capital Limited
Precinct Building 3 Ofce 404
Dubai International Financial Center
Sheikh Zayed Road POBox 506506
Dubai UAE
T +971 4 365 2800
F +971 4 365 2805
Turkey
NBK Capital
Arastima ve Musavirlik AS
Sun Plaza 30th Floor
Dereboyu Sk No24
Maslak 34398 Istanbul Turkey
T +90 212 276 5400
F +90 212 276 5401
Egypt
NBK Capital Securities
Egypt SAE
20 Aisha EL Taymouria St
Garden City
Cairo Egypt
T +202 2798 5900
F +202 2798 5905
NBK CAPITAL
Kuwait
National Bank of Kuwait SAK
Abdullah Al-Ahmed Street
PO Box 95 Safat 13001
Kuwait City Kuwait
T +965 2242 2011F +965 2243 1888
Telex 22043-22451 NATBANK
INTERNATIONAL NETWORK
Bahrain
National Bank of Kuwait SAK
Bahrain Branch
GB Corp Tower Block 346
Road 4626 Building 1411
POBox 5290 Manama
Kingdom of Bahrain
Tel +973 17 155 555
Fax +973 17 104 860
Saudi Arabia
National Bank of Kuwait SAK
Jeddah Branch
Al-Khalidiah Distric
Al-Mukmal Tower POBox 15385
Jeddah 21444 Saudi Arabia
Tel +966 2 603 6300
Fax +966 2 603 6318
United Arab Emirates
National Bank of Kuwait SAK
Dubai Branch
Sheikh Rashed Road Port Saeed Area
ACICO Business Park
POBox 88867 Dubai UAE
Tel +971 4 2929 222
Fax +971 4 2943 337
Jordan
National Bank of Kuwait SAK
Head Ofce
Al Hajj Mohd Abdul Rahim Street
Hijazi Plaza Building 70
POBox 941297Amman ndash 11194 Jordan
Tel +962 6 580 0400
Fax +962 6 580 0441
Lebanon
National Bank of Kuwait
(Lebanon) SAL
Sanayeh Head Ofce
BAC Building Justinien Street
POBox 11-5727 Riad El-Solh
1107 2200 Beirut Lebanon
Tel +961 1 759 700
Fax +961 1 747 866
Iraq
Credit Bank of Iraq
Street 9 Building 187
Sadoun Street District 102
POBox 3420
Baghdad Iraq
Tel +964 1 71821987191944
+964 1 71884067171673
Fax +964 1 7170156
Qatar
International Bank of Qatar
QSC (Associated Company)
Suhaim Bin Hamad Street
POBox 2001
Doha Qatar
Tel +974 4447 8000
Fax +974 4447 3710
Egypt
Al Watany Bank of Egypt
13 Al Themar Street
Gameat Al Dowal AlArabia
Fouad Mohie El Din Square
Mohandessin GizaTel +202 333 888 1617
Fax +202 333 79302
United Kingdom
National Bank of Kuwait
(International) PLC
Head Ofce
13 George street
London W1U 3QJ UK
Tel +44 20 7224 2277
Fax +44 20 7224 2101
France
National Bank of Kuwait
(International) PLC
Paris Branch
90 Avenue des Champs-Elysees
75008 Paris France
Tel +33 1 5659 8600
Fax +33 1 5659 8623
Turkey
Turkish Bank
Head Ofce
Valikonagi Avenue No 1
POBox 34371 Nisantasi
Istanbul
Tel +90 212 373 6373
Fax +90 212 225 0353
Singapore
National Bank of Kuwait SAK
Singapore Branch
9 Rafes Place 24-02
Republic Plaza
Singapore 048619Tel +65 6222 5348
Fax +65 6224 5438
China
National Bank of Kuwait SAK
Shanghai Representative Ofce
Suite 1003 10th oor
Azia Center
1233 Lujiazui Ring Road
Shanghai 200120
China
Tel +86 21 6888 1092
Fax +86 21 5047 1011
United States of America
National Bank of Kuwait SAK
New York Branch
299 Park Avenue 17th Floor
New York NY 10171
USA
Tel +1 212 303 9800
Fax +1 212 319 8269
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KUWAIT DUBAI ISTANBUL CAIRO
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MENAinFocusDecember 5 2013
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Top destinations for the first nine months of 2013
Dubai and Cairo have dominated the top 10 destinations since 2010 holding market shares of
192 and 63 respectively in 9M2013 Doha came in third in 9M2013 with a 6 market
share having been in fourth place for the past three years Dubairsquos ruling status as the top
destination out of Kuwait is justied by Dubairsquos status both as a tourist attraction and a major hub
for transit passengers Four carriers serve Dubai out of Kuwait Airport Kuwait Airways Jazeera
Airways (Jazeera) Emirates and ydubai In contrast Cairo is a pure origin and destination (OampD)
route with three carriers serving Cairo from Kuwait Kuwait Airways Jazeera and Egypt Air Below
is a list of the top 10 destinations in FY2012 and 9M2013
Figure 1-2 Top 10 Destinations in Terms of Passenger Numbers from Kuwait Interna-
tional Airport in FY2012 and 9M2013
208926
216598
230376
232215
235846
355949
369125
422137
447795
1375212
London - Heathrow
Amman
Beirut
Alexandria - Borg El Arab
Mumbai
Jeddah
Bahrain
Doha
Cairo
Dubai
9M2013 - Number of Passengers
Source DGCA and NBK Capital
The two Kuwaiti airlines accounted for 354 of the passenger traffic at
Kuwait International Airport in 9M2013
Kuwait Airways remains the largest carrier out of Kuwait International Airport with a market share
of 232 during the rst nine months of 2013 followed by Jazeera Airways with a market share
of 122 Emirates ranked third with a market share of 90 followed by ydubai with 61
However Kuwait Airways has continued to lose market share to regional peers (Emirates ydubai
Etihad Airways and Qatar Airways) over the past three years - it accounted for 306 of the
market in 2011 During this period ydubai increased its market share to 61 in 9M2013 from
40 in 2011 In addition Turkish Airways entered the list of the top 10 for the rst time and
acquired 3 of the Kuwait aviation market in 9M2013
Figure 1-3 Kuwaiti Airlinesrsquo Market Share versus Regional Peers
0
5
10
15
20
25
30
35
2011 2012 9M2013
Kuwait Airways Jazeera Regional Peers
Emirates ydubai Etihad Airways and Qatar Airways Source DGCA and NBK Capital
Dubai continues to dominateout of the top 10 destinations
out of Kuwait
253101
254013
257280
267418
295219
510350
528742
569832
603954
1577629
Sharjah
Alexandria - Borg El Arab
Amman
Mumbai
Beirut
Jeddah
Doha
Bahrain
Cairo
Dubai
FY2012 - Number of Passengers
Kuwait Airways has been losing
market share to regional peers
dropping to 232 in 9M2013
from 306 in 2011
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Figure 1-6 Jazeerarsquos Market Share at Kuwait International Airport
Route Jazeera Airways Market Share -
as of September 2013
Number of Airlines Serving
Route as of September 2013
Al Najaf 83 2
Alexandria 19 6
Amman 40 4
Assiut 51 2
Bahrain 10 4
Beirut 38 3
Cairo 25 3
Dubai 15 4
Istanbul 6 3
Jeddah 16 5
Luxor 74 2
Mashhad 17 7Riyadh 12 3
Sharm El Sheikh 64 3
Sohag 42 4
Source Jazeera Airways
Figure 1-7 Summary of NBK Capitalrsquos Forecasts for Jazeera
2012A 2013F 2014F 2015F
EPS (KD) 0039 0041 0048 0052
EPS Growth 321 65 166 89Net Income Growth 321 239 166 89
PE 149 120 103 95
Dividend Yield 00 42 48 53
EVEBITDA 111 96 83 79
Revenue (KD Millions) 626 663 728 782
Revenue Growth 83 58 99 74
EBITDA (KD Millions) 245 281 328 344
EBITDA Growth 21 15 17 5
EBITDA Margin 391 424 450 440
Net Income (KD Millions) 139 173 201 219
Net Income Growth 321 239 166 89
Net Income Margin 223 261 277 281
Source NBK Capital
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IN FOCUS 2 EGYPTrsquoS NATURAL GAS SECTOR
Egypt has close to two trillion cubic meters (TCM) of proven natural gas reserves representing just
over 1 of the worldrsquos proven reserves Egypt is the third-largest reserve in Africa falling behind
Algeria (45 TCM) and Nigeria (52 TCM) according to BPrsquos 2013 World Statistical Review
Unsurprisingly the Egyptian government has continuously promoted the domestic use of naturalgas as an energy source compared to other resources In addition Egypt had been ramping up its
production capacity considerably until 2009 allowing the country to export natural gas through
the Arab Gas Pipeline which serves as a key energy provider for many neighboring countries (such
as Jordan)
However between 2010 and 2012 annual production levels in Egypt remained relatively at (c
61 billion cubic meters) largely due to the political issues the country faced in 2011 onwards
According to the chairman of Egypt Natural Gas Holding Company (EGAS ndash a government-owned
entity that manages various gas projects) Egyptrsquos daily gas production actually declined by 85
YoY to an average of 015 billion cubic meters (BCM) during the rst nine months of 2013
The growth of domestic consumption (estimated at around 526 BCM in 2012) on the other
hand has not wavered marching on at a 7 CAGR between 2009 and 2012 Consequently as
consumption levels increased and production levels declined Egyptrsquos natural gas export levels
declined from 105 BCM in 2009 (20 of total production) to just 24 BCM in 2012 (4 of total
production) The Minister for Oil and Gas mentioned late last year that Egypt might have to start
importing natural gas by mid-2013 in order to meet domestic demand essentially transforming
Egypt from a net exporter to a net importer for the rst time in recent history
Figure 2-1 Egyptrsquos Production and Consumption Levels
20
25
30
35
40
45
50
55
60
65
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
B i l l i o n C u b i c M e t e
r s
Production (BCM) Consumption (BCM)
Source BP Statistical Review June 2013 and GASCO
Implications of switching from being a net exporter to a net importer
Until now there has not been any credible information on the issue of Egypt importing naturalgas however rumors continue to oat around According to an article on Egypt Oil amp Gas Egypt
is looking into importing LNG The article went on to mention that Egypt has signed an agreement
to begin importing natural gas from Algeria starting in 2013 at a cost of USD 11 per MMBTU
(compared to a market price of USD 12 per MMBTU) It also mentioned that Egypt would discuss
a potential agreement with other countries as a potential supplier of natural gas as well Although
imports from some of these countries may prove to be cheaper compared with global LNG prices
it is still well above the price paid to the local gas producers
Natural gas is a highly subsidized product in Egypt In the event of it importing natural gas
the Egyptian government could have additional nancial implications to deal with According
to the Central Bank of Egypt the country spent a total of EGP 96 billion in FY 2011-2012 on
subsidizing petroleum-related expenses making up 20 of the governmentrsquos total expenditureAs a result importing natural gas from Algeria or other neighboring countries could signicantly
increase petroleum related subsidies
Figure 2-2 Natural Gas Local Consumption and Export
(as a Percentage of Total Production)
83 80 8389
96
17 20 1711
4
-
20
40
60
80
100
120
0
25
50
75
100
2008 2009 2010 2011 2012
B C M
( ) o f T o t a l P r o d u c t i o n
Axis Title
Local Consumption [LHS] Export [LHS] Total Export [RHS]
Wadie Khoury
T +971 4365 2806
E wadiekhourynbkcapitalcom
Natural gas production levels
steadied between 2009-2012
while consumption levels
increased As a result Egyptrsquos
exports have fallen quite
significantly
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Figure 2-3 Petroleum Subsidies
63 67
17
96
5 11
178 182
42
203
64
104
0
5
10
15
20
25
20
40
60
80
100
120
20082009 20092010 20102011 20112012 3M201120123M20122013
E G P B i l l i o n s
Axis Title
Total Petroleum Subsidies [LHS] Petroleum Subsidy As of Expenditure [RHS]
Source Central Bank of Egypt
Latest developments
The Egyptian government recently announced its intention to introduce measures that will
incentivize producers to increase exploration of natural gas and thus will likely translate to an
increase in production levels Notably the Minister for Petroleum revealed in November 2013
that Egypt has signed 14 new agreements (out of 21 expected) with foreign companies including
the likes of Shell BICO and Petzed as well as some Canadian and Greek companies to explore for
oil and gas in Sinai the Gulf of Suez and the Western and Nubian deserts The total investment
will be close to USD 470 million Moreover the minister mentioned that EGAS is contemplating
modifying seven existing contracts with foreign rms in the near future
Such steps are a clear indication that the government is aware of the potential impact of dwindling
levels of gas production However Egypt remains in a relatively fragile state and we have yet to see
how the progress may unfold Recent pledges to Egypt from some of the GCC countries could be
very helpful in supporting this venture
Focus industries in Egypt
Egypt is highly reliant on natural gas as an energy source with the majority of its power generated
in this way According to GASCO (the countryrsquos main transmitter and distributor of natural gas
across Egypt) in 2012 the power generation sector was made up of over 30 power stations
which consumed 58 of the total gas production In a distant second place local distribution
companies (LDCs) consumed 20 of the total natural gas production LDCs are responsible for
the supply of gas to the domestic commercial and industrial sectors as well as gas stations The
industrial sector (including iron steel fertilizers cement and ceramic companies) consumed
12 while the petrochemical sector accounted for the remaining 10
Petroleum subsidies make
up a large portion of total
government expenses If Egypt
begins importing natural gas
this could push up government
expenditure even further
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MENAinFocusDecember 5 2013
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COMPANIES UNDER COVERAGE (PRICES AS OF NOVEMBER 30 2013)
2012 2013 2014 2012 2013 2014
Banking
Abu Dhabi Commercial Bank UAE AED 534 23-Oct-13 450 Hold 105 100 98 12 11 10
Abu Dhabi Islamic Bank UAE AED 479 29-Oct-13 420 Hold 94 89 83 09 09 08
Arab Na tiona l Bank Saudi Arabia SAR 2990 10-Oct-13 3170 Hold 107 103 98 14 13 12BankMuscat Oman OMR 060 09-Oct-13 064 Hold 95 97 86 12 11 10
Banque Saudi Fr ans i Saudi Ar abia SAR 3330 09-Oct-13 3350 Hold 98 105 95 13 12 11
Commercial International Bank Egypt EGP 4316 21-Oct-13 4980 Buy 120 96 77 25 22 18
Credit Agricole Egypt Egypt EGP 1365 09-Oct-13 1390 Hold 82 60 57 17 14 12
Doha Bank Qatar QAR 5580 22-Oct-13 5230 Hold 112 106 97 19 15 15
First Gulf Bank UAE AED 1700 29-Oct-13 1640 Hold 127 117 110 18 17 16
National Bank of Abu Dhabi UAE AED 1200 24-Oct-13 1140 Hold 122 108 105 16 14 13
Na tiona l Bank o f Oman Om an OMR 030 23-Oct-13 026 Hold 83 89 84 11 10 10
Qatar Islamic Bank Qatar QAR 6980 21-Oct-13 6700 Hold 133 107 93 14 14 13
Qatar National Bank Qatar QAR 17200 09-Oct-13 15680 Hold 142 127 113 25 23 20
Riyad Bank Saudi Arabia SAR 2860 07-Oct-13 3000 Hold 122 115 107 13 13 12
Samba Financial Group Saudi Arabia SAR 4930 08-Oct-13 5800 Hold 102 99 90 14 13 12
Saudi Ho llandi Bank Saudi Ar abia SAR 3790 08-Oct-13 3660 Hold 118 102 92 18 16 14
The Commercial Bank of Qatar Qatar QAR 6880 31-Oct-13 7850 Hold 85 86 79 11 11 11
The Saudi Bri tish Bank Saudi Arabia SAR 4020 08-Oct-13 4140 Hold 123 109 97 20 18 16
Union National Bank UAE AED 494 31-Oct-13 560 Hold 77 75 70 09 08 07
2012 2013 2014 2012 2013 2014
Building Materials
Lecico Egypt EGP 860 26-Nov-13 984 Hold 110 nm 64 52 43 39
Oman Cement Co Oman OMR 079 07-Nov-13 087 Hold 150 152 117 112 111 89
Qatar National Cement Co Qatar QAR 10300 06-Nov-13 10850 Hold 119 113 105 88 86 81
Raysut Cement Co Oman OMR 197 11-Nov-13 133 Sell 160 122 105 126 107 96
Yamama Cement Saudi Arabia SAR 5825 06-Oct-13 5270 Hold 144 134 139 101 99 102
Contractors
Arabtec UAE AED 260 14-Nov-13 200 Sell 293 241 217 157 93 71
DEPA UAE USD 061 04-Sep-13 042 Hold nm 81 96 nm 65 76
Drake and Scull UAE AED 132 14-Nov-13 114 Hold 320 186 139 172 106 85
Consumer Goods and Retail
Abdullah Al Othaim Markets Saudi Arabia SAR 12100 28-Oct-13 14100 Hold 158 134 116 123 105 94
Agthia UAE AED 408 25-Nov-13 450 Hold 196 156 140 135 112 100
Alhokair Saudi Arabia SAR 12250 28-Oct-13 13000 Hold 208 178 142 185 142 114
Almarai Saudi Arabia SAR 5375 27-Oct-13 6700 Buy 224 219 171 181 156 130
GB Auto Egypt EGP 3000 03-Nov-13 3850 Buy 178 205 105 61 62 44
Juhayna Egypt EGP 1245 16-Sep-13 860 Hold 270 225 185 168 146 109
Oriental Weavers Egypt EGP 2932 20-Oct-13 3950 Buy 97 61 45 57 43 38
Savola Saudi Arabia SAR 5900 24-Oct-13 5600 Hold 210 177 156 148 117 112
Petrochemicals and Oil
National Petrochemical Company Saudi Arabia SAR 2495 27-Oct-13 1980 Sell nm nm 141 na 244 95
Saudi Arabian Fertilizer Co Saudi Arabia SAR 15475 20-Oct-13 14360 Hold 133 164 150 108 131 123
Saudi Basic Industries Corp Saudi Arabia SAR 10875 27-Oct-13 10910 Hold 132 124 115 68 65 62
Saudi Industrial Investment Group Saudi Arabia SAR 2990 27-Oct-13 2740 Hold 246 168 119 nm 253 99
Saudi Kayan Petrochemicals Saudi Arabia SAR 1365 20-Oct-13 1040 Sell nm nm 120 244 167 96
Yanbu National Petrochemicals Saudi Arabia SAR 6700 27-Oct-13 6160 Hold 154 127 123 87 78 78
Industries Qatar Qatar QAR 16820 22-Oct-13 16250 Hold 121 124 116 107 109 93
Real Estate
Emaar UAE AED 630 14-Nov-13 688 Hold 181 151 159 180 125 125
Mabanee Kuwait KWD 1140 21-Nov-13 110 Hold 240 153 153 243 137 137
Palm Hills Developments Egypt EGP 251 27-Aug-13 na na na na na na na na
Salhia Real Estate Co Kuwait KWD 0390 27-Nov-13 039 Hold 242 210 211 142 142 147
Sodic Egypt EGP 2166 14-Nov-13 2960 Buy 79 65 53 66 53 39
Talaat Mustafa Group Egypt EGP 560 03-Dec-13 784 Buy 212 205 137 166 134 98
Telecommunications
Batelco Bahrain BHD 031 29-Sep-13 038 Buy 81 80 77 41 33 31
du UAE AED 636 02-Oct-13 390 Sell 147 154 154 72 65 58
Etisalat UAE AED 1150 10-Oct-13 1340 Hold 135 122 113 49 43 42
Mobily Saudi Arabia SAR 8500 09-Jul-13 8710 Hold 109 101 96 84 77 73
Nawras Oman OMR 057 08-Oct-13 058 Hold 100 125 113 42 42 41
Omantel Oman OMR 153 08-Oct-13 171 Hold 99 97 95 49 48 48
Ooredoo Qatar QAR 13640 09-Jul-13 14310 Hold 148 129 107 44 42 41
Saudi Telecom Saudi Arabia SAR 5325 07-Jul-13 4780 Hold 145 121 105 55 67 66
Telecom Egypt Egypt EGP 1331 11-Oct-13 1520 Hold 107 96 97 46 53 53
Vodafone Qatar Qatar QAR 1110 01-Oct-13 960 Hold nm nm nm 716 223 159
Transportation amp Logistics
Air Arabia UAE AED 142 12-Nov-13 105 Sell 158 151 148 127 91 76
Aramex UAE AED 270 29-Oct-13 330 Buy 134 117 99 80 69 61
DP World UAE USD 1609 29-Oct-13 1550 Hold 240 235 200 115 113 103
Jazeera Airways Kuwait KWD 0495 13-Nov-13 0600 Buy 149 120 103 111 96 83Others
El Sewedy Electric Egypt EGP 2772 01-Dec-13 3200 Hold 150 103 98 84 63 60
Maridive Group Egypt USD 103 09-Sep-13 122 Hold 255 430 113 93 112 62
PE EVEBITDA
RecommendationPE PB
Secto r Country Currenc yClosing
Price
Date of Last
Report
12-Month
Fair ValueRecommendation
Secto r Country Currenc yClosing
Price
Date of Last
Report
12-Month
Fair Value
Fiscal year ends in March
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RISK AND RECOMMENDATION GUIDE
RECOMMENDATION UPSIDE (DOWNSIDE) POTENTIAL
BUY MORE THAN 20
HOLD BETWEEN -15 AND 20
SELL LESS THAN -15
RISK LEVEL
LOW RISK HIGH RISK
1 2 3 4 5
DISCLAIMER
The information opinions tools and materials contained in this report (the ldquoContentrdquo) are not addressed to or intended for publication distribution to or use by
any individual or legal entity who is a citizen or resident of or domiciled in any jurisdiction where such distribution publication availability or use would constitute a
breach of the laws or regulations of such jurisdiction or that would require Watani Investment Company KSCC (ldquoNBK Capitalrdquo) or its parent company its subsidiaries
or its afliates (together ldquoNBK Grouprdquo) to obtain licenses approvals or permissions from the regulatory bodies or authorities of such jurisdiction The Content unless
expressly mentioned otherwise is under copyright to NBK Capital Neither the Content nor any copy of it may be in any way reproduced amended transmitted to copied
or distributed to any other party without the prior express written consent of NBK Capital All trademarks service marks and logos used in this report are trademarks or
service marks or registered trademarks or registered service marks of NBK Capital
The Content is provided to you for information purposes only and is not to be used construed or considered as an offer or the solicitation of an offer to sell or to buy or
to subscribe for any investment (including but not limited to securities or other nancial instruments) No representation or warranty express or implied is given by NBK
Capital or any of its respective directors partners ofcers afliates employees advisors or representatives that the investment referred to in this report is suitable for
you or for any particular investor Receiving this report shall not mean or be interpreted that NBK Capital will treat you as its customer If you are in doubt about suchinvestment we recommend that you consult an independent investment advisor since the investment contained or referred to in this report may not be suitable for you
and NBK Capital makes no representation or warranty in this respect
The Content shall not be considered investment legal accounting or tax advice or a representation that any investment or strategy is suitable or appropriate for your
individual circumstances or otherwise constitutes a personal recommendation to you NBK Capital does not offer advice on the tax consequences of investments and
you are advised to contact an independent tax adviser
The information and opinions contained in this report have been obtained or derived from sources that NBK Capital believes are reliable without being independently
veried as to their accuracy or completeness NBK Capital believes the information and opinions expressed in this report are accurate and complete however NBK
Capital gives no representations or warranty express or implied as to the accuracy or completeness of the Content Additional information may be available upon request
NBK Capital accepts no liability for any direct indirect or consequential loss arising from the use of the Content This report is not to be relied upon as a substitution for
the exercise of independent judgment In addition NBK Capital may have issued and may in the future issue other reports that are inconsistent with and reach different
conclusions from the information presented in this report Those reports reect the different assumptions views and analytical methods of the analysts who prepared
the reports and NBK Capital is under no obligation to ensure that such other reports are brought to your attention NBK Capital may be involved in many businesses that
relate to companies mentioned in this report and may engage with them Past performance should not be taken as an indication or guarantee of future performance and
no representation or warranty express or implied is made regarding future performance Information opinions and estimates contained in this report reect a judgment
at the reportrsquos original date of publication by NBK Capital and are subject to change without notice
The value of any investment or income may fall as well as rise and you may not get back the full amount invested Where an investment is denominated in a currency
other than the local currency of the recipient of the research report changes in the exchange rates may have an adverse effect on the value price or income of that
investment In the case of investments for which there is no recognized market it may be difcult for investors to sell their investments or to obtain reliable information
about their value or the extent of the risk to which they are exposed
NBK Capital has not reviewed the addresses of the hyperlinks to or the websites referred to in the report and takes no responsibility for the content contained therein
Such address or hyperlink (including addresses or hyperlinks to NBK Capitalrsquos own website material) is provided solely for your convenience and information and the
content of the linked site does not in any way form part of this document Accessing such websites or following such links through this report or NBK Capitalrsquos website
shall be at your own risk
NBK Group may have a nancial interest in one or any of the securities that are the subject of this report Funds managed by NBK Group may own the securities that
are the subject of this report NBK Group may own units in one or more of the aforementioned funds
NBK Group may be in the process of soliciting or executing fee-earning mandate or doing business for companies that are either the subject of this report or are
mentioned in this report As a result you should be aware that NBK Group may have material conict of interest that could affect the objectivity of this report
copy COPYRIGHT NOTICE
This is a publication of NBK Capital No part of this publication may be reproduced or duplicated without the prior consent of NBK Capital
8122019 NBK Capital MENA InFocus 05December2013
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MENAinFocusDecember 5 2013
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NATIONAL BANK OF KUWAIT
Kuwait
Head Ofce
38th Floor Arraya II
Al Shuhada Street Block 6 Sharq
POBox 4950 Safat 13050
Kuwait
T +965 2224 6900
F +965 2224 6905
MENA Research
35th Floor Arraya II
Al Shuhada Street Block 6 Sharq
POBox 4950 Safat 13050 Kuwait
T +965 2224 6663
F +965 2224 6905
E menaresearchnbkcapitalcomkw
Brokerage
37th Floor Arraya II
Al Shuhada Street Block 6 Sharq
POBox 4950 Safat 13050 Kuwait
T +965 2224 6964
F +965 2224 6978
E brokeragenbkcapitalcom
United Arab Emirates
NBK Capital Limited
Precinct Building 3 Ofce 404
Dubai International Financial Center
Sheikh Zayed Road POBox 506506
Dubai UAE
T +971 4 365 2800
F +971 4 365 2805
Turkey
NBK Capital
Arastima ve Musavirlik AS
Sun Plaza 30th Floor
Dereboyu Sk No24
Maslak 34398 Istanbul Turkey
T +90 212 276 5400
F +90 212 276 5401
Egypt
NBK Capital Securities
Egypt SAE
20 Aisha EL Taymouria St
Garden City
Cairo Egypt
T +202 2798 5900
F +202 2798 5905
NBK CAPITAL
Kuwait
National Bank of Kuwait SAK
Abdullah Al-Ahmed Street
PO Box 95 Safat 13001
Kuwait City Kuwait
T +965 2242 2011F +965 2243 1888
Telex 22043-22451 NATBANK
INTERNATIONAL NETWORK
Bahrain
National Bank of Kuwait SAK
Bahrain Branch
GB Corp Tower Block 346
Road 4626 Building 1411
POBox 5290 Manama
Kingdom of Bahrain
Tel +973 17 155 555
Fax +973 17 104 860
Saudi Arabia
National Bank of Kuwait SAK
Jeddah Branch
Al-Khalidiah Distric
Al-Mukmal Tower POBox 15385
Jeddah 21444 Saudi Arabia
Tel +966 2 603 6300
Fax +966 2 603 6318
United Arab Emirates
National Bank of Kuwait SAK
Dubai Branch
Sheikh Rashed Road Port Saeed Area
ACICO Business Park
POBox 88867 Dubai UAE
Tel +971 4 2929 222
Fax +971 4 2943 337
Jordan
National Bank of Kuwait SAK
Head Ofce
Al Hajj Mohd Abdul Rahim Street
Hijazi Plaza Building 70
POBox 941297Amman ndash 11194 Jordan
Tel +962 6 580 0400
Fax +962 6 580 0441
Lebanon
National Bank of Kuwait
(Lebanon) SAL
Sanayeh Head Ofce
BAC Building Justinien Street
POBox 11-5727 Riad El-Solh
1107 2200 Beirut Lebanon
Tel +961 1 759 700
Fax +961 1 747 866
Iraq
Credit Bank of Iraq
Street 9 Building 187
Sadoun Street District 102
POBox 3420
Baghdad Iraq
Tel +964 1 71821987191944
+964 1 71884067171673
Fax +964 1 7170156
Qatar
International Bank of Qatar
QSC (Associated Company)
Suhaim Bin Hamad Street
POBox 2001
Doha Qatar
Tel +974 4447 8000
Fax +974 4447 3710
Egypt
Al Watany Bank of Egypt
13 Al Themar Street
Gameat Al Dowal AlArabia
Fouad Mohie El Din Square
Mohandessin GizaTel +202 333 888 1617
Fax +202 333 79302
United Kingdom
National Bank of Kuwait
(International) PLC
Head Ofce
13 George street
London W1U 3QJ UK
Tel +44 20 7224 2277
Fax +44 20 7224 2101
France
National Bank of Kuwait
(International) PLC
Paris Branch
90 Avenue des Champs-Elysees
75008 Paris France
Tel +33 1 5659 8600
Fax +33 1 5659 8623
Turkey
Turkish Bank
Head Ofce
Valikonagi Avenue No 1
POBox 34371 Nisantasi
Istanbul
Tel +90 212 373 6373
Fax +90 212 225 0353
Singapore
National Bank of Kuwait SAK
Singapore Branch
9 Rafes Place 24-02
Republic Plaza
Singapore 048619Tel +65 6222 5348
Fax +65 6224 5438
China
National Bank of Kuwait SAK
Shanghai Representative Ofce
Suite 1003 10th oor
Azia Center
1233 Lujiazui Ring Road
Shanghai 200120
China
Tel +86 21 6888 1092
Fax +86 21 5047 1011
United States of America
National Bank of Kuwait SAK
New York Branch
299 Park Avenue 17th Floor
New York NY 10171
USA
Tel +1 212 303 9800
Fax +1 212 319 8269
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KUWAIT DUBAI ISTANBUL CAIRO
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MENAinFocusDecember 5 2013
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Figure 1-6 Jazeerarsquos Market Share at Kuwait International Airport
Route Jazeera Airways Market Share -
as of September 2013
Number of Airlines Serving
Route as of September 2013
Al Najaf 83 2
Alexandria 19 6
Amman 40 4
Assiut 51 2
Bahrain 10 4
Beirut 38 3
Cairo 25 3
Dubai 15 4
Istanbul 6 3
Jeddah 16 5
Luxor 74 2
Mashhad 17 7Riyadh 12 3
Sharm El Sheikh 64 3
Sohag 42 4
Source Jazeera Airways
Figure 1-7 Summary of NBK Capitalrsquos Forecasts for Jazeera
2012A 2013F 2014F 2015F
EPS (KD) 0039 0041 0048 0052
EPS Growth 321 65 166 89Net Income Growth 321 239 166 89
PE 149 120 103 95
Dividend Yield 00 42 48 53
EVEBITDA 111 96 83 79
Revenue (KD Millions) 626 663 728 782
Revenue Growth 83 58 99 74
EBITDA (KD Millions) 245 281 328 344
EBITDA Growth 21 15 17 5
EBITDA Margin 391 424 450 440
Net Income (KD Millions) 139 173 201 219
Net Income Growth 321 239 166 89
Net Income Margin 223 261 277 281
Source NBK Capital
8122019 NBK Capital MENA InFocus 05December2013
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MENAinFocusDecember 5 2013
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IN FOCUS 2 EGYPTrsquoS NATURAL GAS SECTOR
Egypt has close to two trillion cubic meters (TCM) of proven natural gas reserves representing just
over 1 of the worldrsquos proven reserves Egypt is the third-largest reserve in Africa falling behind
Algeria (45 TCM) and Nigeria (52 TCM) according to BPrsquos 2013 World Statistical Review
Unsurprisingly the Egyptian government has continuously promoted the domestic use of naturalgas as an energy source compared to other resources In addition Egypt had been ramping up its
production capacity considerably until 2009 allowing the country to export natural gas through
the Arab Gas Pipeline which serves as a key energy provider for many neighboring countries (such
as Jordan)
However between 2010 and 2012 annual production levels in Egypt remained relatively at (c
61 billion cubic meters) largely due to the political issues the country faced in 2011 onwards
According to the chairman of Egypt Natural Gas Holding Company (EGAS ndash a government-owned
entity that manages various gas projects) Egyptrsquos daily gas production actually declined by 85
YoY to an average of 015 billion cubic meters (BCM) during the rst nine months of 2013
The growth of domestic consumption (estimated at around 526 BCM in 2012) on the other
hand has not wavered marching on at a 7 CAGR between 2009 and 2012 Consequently as
consumption levels increased and production levels declined Egyptrsquos natural gas export levels
declined from 105 BCM in 2009 (20 of total production) to just 24 BCM in 2012 (4 of total
production) The Minister for Oil and Gas mentioned late last year that Egypt might have to start
importing natural gas by mid-2013 in order to meet domestic demand essentially transforming
Egypt from a net exporter to a net importer for the rst time in recent history
Figure 2-1 Egyptrsquos Production and Consumption Levels
20
25
30
35
40
45
50
55
60
65
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
B i l l i o n C u b i c M e t e
r s
Production (BCM) Consumption (BCM)
Source BP Statistical Review June 2013 and GASCO
Implications of switching from being a net exporter to a net importer
Until now there has not been any credible information on the issue of Egypt importing naturalgas however rumors continue to oat around According to an article on Egypt Oil amp Gas Egypt
is looking into importing LNG The article went on to mention that Egypt has signed an agreement
to begin importing natural gas from Algeria starting in 2013 at a cost of USD 11 per MMBTU
(compared to a market price of USD 12 per MMBTU) It also mentioned that Egypt would discuss
a potential agreement with other countries as a potential supplier of natural gas as well Although
imports from some of these countries may prove to be cheaper compared with global LNG prices
it is still well above the price paid to the local gas producers
Natural gas is a highly subsidized product in Egypt In the event of it importing natural gas
the Egyptian government could have additional nancial implications to deal with According
to the Central Bank of Egypt the country spent a total of EGP 96 billion in FY 2011-2012 on
subsidizing petroleum-related expenses making up 20 of the governmentrsquos total expenditureAs a result importing natural gas from Algeria or other neighboring countries could signicantly
increase petroleum related subsidies
Figure 2-2 Natural Gas Local Consumption and Export
(as a Percentage of Total Production)
83 80 8389
96
17 20 1711
4
-
20
40
60
80
100
120
0
25
50
75
100
2008 2009 2010 2011 2012
B C M
( ) o f T o t a l P r o d u c t i o n
Axis Title
Local Consumption [LHS] Export [LHS] Total Export [RHS]
Wadie Khoury
T +971 4365 2806
E wadiekhourynbkcapitalcom
Natural gas production levels
steadied between 2009-2012
while consumption levels
increased As a result Egyptrsquos
exports have fallen quite
significantly
8122019 NBK Capital MENA InFocus 05December2013
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Figure 2-3 Petroleum Subsidies
63 67
17
96
5 11
178 182
42
203
64
104
0
5
10
15
20
25
20
40
60
80
100
120
20082009 20092010 20102011 20112012 3M201120123M20122013
E G P B i l l i o n s
Axis Title
Total Petroleum Subsidies [LHS] Petroleum Subsidy As of Expenditure [RHS]
Source Central Bank of Egypt
Latest developments
The Egyptian government recently announced its intention to introduce measures that will
incentivize producers to increase exploration of natural gas and thus will likely translate to an
increase in production levels Notably the Minister for Petroleum revealed in November 2013
that Egypt has signed 14 new agreements (out of 21 expected) with foreign companies including
the likes of Shell BICO and Petzed as well as some Canadian and Greek companies to explore for
oil and gas in Sinai the Gulf of Suez and the Western and Nubian deserts The total investment
will be close to USD 470 million Moreover the minister mentioned that EGAS is contemplating
modifying seven existing contracts with foreign rms in the near future
Such steps are a clear indication that the government is aware of the potential impact of dwindling
levels of gas production However Egypt remains in a relatively fragile state and we have yet to see
how the progress may unfold Recent pledges to Egypt from some of the GCC countries could be
very helpful in supporting this venture
Focus industries in Egypt
Egypt is highly reliant on natural gas as an energy source with the majority of its power generated
in this way According to GASCO (the countryrsquos main transmitter and distributor of natural gas
across Egypt) in 2012 the power generation sector was made up of over 30 power stations
which consumed 58 of the total gas production In a distant second place local distribution
companies (LDCs) consumed 20 of the total natural gas production LDCs are responsible for
the supply of gas to the domestic commercial and industrial sectors as well as gas stations The
industrial sector (including iron steel fertilizers cement and ceramic companies) consumed
12 while the petrochemical sector accounted for the remaining 10
Petroleum subsidies make
up a large portion of total
government expenses If Egypt
begins importing natural gas
this could push up government
expenditure even further
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MENAinFocusDecember 5 2013
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COMPANIES UNDER COVERAGE (PRICES AS OF NOVEMBER 30 2013)
2012 2013 2014 2012 2013 2014
Banking
Abu Dhabi Commercial Bank UAE AED 534 23-Oct-13 450 Hold 105 100 98 12 11 10
Abu Dhabi Islamic Bank UAE AED 479 29-Oct-13 420 Hold 94 89 83 09 09 08
Arab Na tiona l Bank Saudi Arabia SAR 2990 10-Oct-13 3170 Hold 107 103 98 14 13 12BankMuscat Oman OMR 060 09-Oct-13 064 Hold 95 97 86 12 11 10
Banque Saudi Fr ans i Saudi Ar abia SAR 3330 09-Oct-13 3350 Hold 98 105 95 13 12 11
Commercial International Bank Egypt EGP 4316 21-Oct-13 4980 Buy 120 96 77 25 22 18
Credit Agricole Egypt Egypt EGP 1365 09-Oct-13 1390 Hold 82 60 57 17 14 12
Doha Bank Qatar QAR 5580 22-Oct-13 5230 Hold 112 106 97 19 15 15
First Gulf Bank UAE AED 1700 29-Oct-13 1640 Hold 127 117 110 18 17 16
National Bank of Abu Dhabi UAE AED 1200 24-Oct-13 1140 Hold 122 108 105 16 14 13
Na tiona l Bank o f Oman Om an OMR 030 23-Oct-13 026 Hold 83 89 84 11 10 10
Qatar Islamic Bank Qatar QAR 6980 21-Oct-13 6700 Hold 133 107 93 14 14 13
Qatar National Bank Qatar QAR 17200 09-Oct-13 15680 Hold 142 127 113 25 23 20
Riyad Bank Saudi Arabia SAR 2860 07-Oct-13 3000 Hold 122 115 107 13 13 12
Samba Financial Group Saudi Arabia SAR 4930 08-Oct-13 5800 Hold 102 99 90 14 13 12
Saudi Ho llandi Bank Saudi Ar abia SAR 3790 08-Oct-13 3660 Hold 118 102 92 18 16 14
The Commercial Bank of Qatar Qatar QAR 6880 31-Oct-13 7850 Hold 85 86 79 11 11 11
The Saudi Bri tish Bank Saudi Arabia SAR 4020 08-Oct-13 4140 Hold 123 109 97 20 18 16
Union National Bank UAE AED 494 31-Oct-13 560 Hold 77 75 70 09 08 07
2012 2013 2014 2012 2013 2014
Building Materials
Lecico Egypt EGP 860 26-Nov-13 984 Hold 110 nm 64 52 43 39
Oman Cement Co Oman OMR 079 07-Nov-13 087 Hold 150 152 117 112 111 89
Qatar National Cement Co Qatar QAR 10300 06-Nov-13 10850 Hold 119 113 105 88 86 81
Raysut Cement Co Oman OMR 197 11-Nov-13 133 Sell 160 122 105 126 107 96
Yamama Cement Saudi Arabia SAR 5825 06-Oct-13 5270 Hold 144 134 139 101 99 102
Contractors
Arabtec UAE AED 260 14-Nov-13 200 Sell 293 241 217 157 93 71
DEPA UAE USD 061 04-Sep-13 042 Hold nm 81 96 nm 65 76
Drake and Scull UAE AED 132 14-Nov-13 114 Hold 320 186 139 172 106 85
Consumer Goods and Retail
Abdullah Al Othaim Markets Saudi Arabia SAR 12100 28-Oct-13 14100 Hold 158 134 116 123 105 94
Agthia UAE AED 408 25-Nov-13 450 Hold 196 156 140 135 112 100
Alhokair Saudi Arabia SAR 12250 28-Oct-13 13000 Hold 208 178 142 185 142 114
Almarai Saudi Arabia SAR 5375 27-Oct-13 6700 Buy 224 219 171 181 156 130
GB Auto Egypt EGP 3000 03-Nov-13 3850 Buy 178 205 105 61 62 44
Juhayna Egypt EGP 1245 16-Sep-13 860 Hold 270 225 185 168 146 109
Oriental Weavers Egypt EGP 2932 20-Oct-13 3950 Buy 97 61 45 57 43 38
Savola Saudi Arabia SAR 5900 24-Oct-13 5600 Hold 210 177 156 148 117 112
Petrochemicals and Oil
National Petrochemical Company Saudi Arabia SAR 2495 27-Oct-13 1980 Sell nm nm 141 na 244 95
Saudi Arabian Fertilizer Co Saudi Arabia SAR 15475 20-Oct-13 14360 Hold 133 164 150 108 131 123
Saudi Basic Industries Corp Saudi Arabia SAR 10875 27-Oct-13 10910 Hold 132 124 115 68 65 62
Saudi Industrial Investment Group Saudi Arabia SAR 2990 27-Oct-13 2740 Hold 246 168 119 nm 253 99
Saudi Kayan Petrochemicals Saudi Arabia SAR 1365 20-Oct-13 1040 Sell nm nm 120 244 167 96
Yanbu National Petrochemicals Saudi Arabia SAR 6700 27-Oct-13 6160 Hold 154 127 123 87 78 78
Industries Qatar Qatar QAR 16820 22-Oct-13 16250 Hold 121 124 116 107 109 93
Real Estate
Emaar UAE AED 630 14-Nov-13 688 Hold 181 151 159 180 125 125
Mabanee Kuwait KWD 1140 21-Nov-13 110 Hold 240 153 153 243 137 137
Palm Hills Developments Egypt EGP 251 27-Aug-13 na na na na na na na na
Salhia Real Estate Co Kuwait KWD 0390 27-Nov-13 039 Hold 242 210 211 142 142 147
Sodic Egypt EGP 2166 14-Nov-13 2960 Buy 79 65 53 66 53 39
Talaat Mustafa Group Egypt EGP 560 03-Dec-13 784 Buy 212 205 137 166 134 98
Telecommunications
Batelco Bahrain BHD 031 29-Sep-13 038 Buy 81 80 77 41 33 31
du UAE AED 636 02-Oct-13 390 Sell 147 154 154 72 65 58
Etisalat UAE AED 1150 10-Oct-13 1340 Hold 135 122 113 49 43 42
Mobily Saudi Arabia SAR 8500 09-Jul-13 8710 Hold 109 101 96 84 77 73
Nawras Oman OMR 057 08-Oct-13 058 Hold 100 125 113 42 42 41
Omantel Oman OMR 153 08-Oct-13 171 Hold 99 97 95 49 48 48
Ooredoo Qatar QAR 13640 09-Jul-13 14310 Hold 148 129 107 44 42 41
Saudi Telecom Saudi Arabia SAR 5325 07-Jul-13 4780 Hold 145 121 105 55 67 66
Telecom Egypt Egypt EGP 1331 11-Oct-13 1520 Hold 107 96 97 46 53 53
Vodafone Qatar Qatar QAR 1110 01-Oct-13 960 Hold nm nm nm 716 223 159
Transportation amp Logistics
Air Arabia UAE AED 142 12-Nov-13 105 Sell 158 151 148 127 91 76
Aramex UAE AED 270 29-Oct-13 330 Buy 134 117 99 80 69 61
DP World UAE USD 1609 29-Oct-13 1550 Hold 240 235 200 115 113 103
Jazeera Airways Kuwait KWD 0495 13-Nov-13 0600 Buy 149 120 103 111 96 83Others
El Sewedy Electric Egypt EGP 2772 01-Dec-13 3200 Hold 150 103 98 84 63 60
Maridive Group Egypt USD 103 09-Sep-13 122 Hold 255 430 113 93 112 62
PE EVEBITDA
RecommendationPE PB
Secto r Country Currenc yClosing
Price
Date of Last
Report
12-Month
Fair ValueRecommendation
Secto r Country Currenc yClosing
Price
Date of Last
Report
12-Month
Fair Value
Fiscal year ends in March
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RISK AND RECOMMENDATION GUIDE
RECOMMENDATION UPSIDE (DOWNSIDE) POTENTIAL
BUY MORE THAN 20
HOLD BETWEEN -15 AND 20
SELL LESS THAN -15
RISK LEVEL
LOW RISK HIGH RISK
1 2 3 4 5
DISCLAIMER
The information opinions tools and materials contained in this report (the ldquoContentrdquo) are not addressed to or intended for publication distribution to or use by
any individual or legal entity who is a citizen or resident of or domiciled in any jurisdiction where such distribution publication availability or use would constitute a
breach of the laws or regulations of such jurisdiction or that would require Watani Investment Company KSCC (ldquoNBK Capitalrdquo) or its parent company its subsidiaries
or its afliates (together ldquoNBK Grouprdquo) to obtain licenses approvals or permissions from the regulatory bodies or authorities of such jurisdiction The Content unless
expressly mentioned otherwise is under copyright to NBK Capital Neither the Content nor any copy of it may be in any way reproduced amended transmitted to copied
or distributed to any other party without the prior express written consent of NBK Capital All trademarks service marks and logos used in this report are trademarks or
service marks or registered trademarks or registered service marks of NBK Capital
The Content is provided to you for information purposes only and is not to be used construed or considered as an offer or the solicitation of an offer to sell or to buy or
to subscribe for any investment (including but not limited to securities or other nancial instruments) No representation or warranty express or implied is given by NBK
Capital or any of its respective directors partners ofcers afliates employees advisors or representatives that the investment referred to in this report is suitable for
you or for any particular investor Receiving this report shall not mean or be interpreted that NBK Capital will treat you as its customer If you are in doubt about suchinvestment we recommend that you consult an independent investment advisor since the investment contained or referred to in this report may not be suitable for you
and NBK Capital makes no representation or warranty in this respect
The Content shall not be considered investment legal accounting or tax advice or a representation that any investment or strategy is suitable or appropriate for your
individual circumstances or otherwise constitutes a personal recommendation to you NBK Capital does not offer advice on the tax consequences of investments and
you are advised to contact an independent tax adviser
The information and opinions contained in this report have been obtained or derived from sources that NBK Capital believes are reliable without being independently
veried as to their accuracy or completeness NBK Capital believes the information and opinions expressed in this report are accurate and complete however NBK
Capital gives no representations or warranty express or implied as to the accuracy or completeness of the Content Additional information may be available upon request
NBK Capital accepts no liability for any direct indirect or consequential loss arising from the use of the Content This report is not to be relied upon as a substitution for
the exercise of independent judgment In addition NBK Capital may have issued and may in the future issue other reports that are inconsistent with and reach different
conclusions from the information presented in this report Those reports reect the different assumptions views and analytical methods of the analysts who prepared
the reports and NBK Capital is under no obligation to ensure that such other reports are brought to your attention NBK Capital may be involved in many businesses that
relate to companies mentioned in this report and may engage with them Past performance should not be taken as an indication or guarantee of future performance and
no representation or warranty express or implied is made regarding future performance Information opinions and estimates contained in this report reect a judgment
at the reportrsquos original date of publication by NBK Capital and are subject to change without notice
The value of any investment or income may fall as well as rise and you may not get back the full amount invested Where an investment is denominated in a currency
other than the local currency of the recipient of the research report changes in the exchange rates may have an adverse effect on the value price or income of that
investment In the case of investments for which there is no recognized market it may be difcult for investors to sell their investments or to obtain reliable information
about their value or the extent of the risk to which they are exposed
NBK Capital has not reviewed the addresses of the hyperlinks to or the websites referred to in the report and takes no responsibility for the content contained therein
Such address or hyperlink (including addresses or hyperlinks to NBK Capitalrsquos own website material) is provided solely for your convenience and information and the
content of the linked site does not in any way form part of this document Accessing such websites or following such links through this report or NBK Capitalrsquos website
shall be at your own risk
NBK Group may have a nancial interest in one or any of the securities that are the subject of this report Funds managed by NBK Group may own the securities that
are the subject of this report NBK Group may own units in one or more of the aforementioned funds
NBK Group may be in the process of soliciting or executing fee-earning mandate or doing business for companies that are either the subject of this report or are
mentioned in this report As a result you should be aware that NBK Group may have material conict of interest that could affect the objectivity of this report
copy COPYRIGHT NOTICE
This is a publication of NBK Capital No part of this publication may be reproduced or duplicated without the prior consent of NBK Capital
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MENAinFocusDecember 5 2013
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NATIONAL BANK OF KUWAIT
Kuwait
Head Ofce
38th Floor Arraya II
Al Shuhada Street Block 6 Sharq
POBox 4950 Safat 13050
Kuwait
T +965 2224 6900
F +965 2224 6905
MENA Research
35th Floor Arraya II
Al Shuhada Street Block 6 Sharq
POBox 4950 Safat 13050 Kuwait
T +965 2224 6663
F +965 2224 6905
E menaresearchnbkcapitalcomkw
Brokerage
37th Floor Arraya II
Al Shuhada Street Block 6 Sharq
POBox 4950 Safat 13050 Kuwait
T +965 2224 6964
F +965 2224 6978
E brokeragenbkcapitalcom
United Arab Emirates
NBK Capital Limited
Precinct Building 3 Ofce 404
Dubai International Financial Center
Sheikh Zayed Road POBox 506506
Dubai UAE
T +971 4 365 2800
F +971 4 365 2805
Turkey
NBK Capital
Arastima ve Musavirlik AS
Sun Plaza 30th Floor
Dereboyu Sk No24
Maslak 34398 Istanbul Turkey
T +90 212 276 5400
F +90 212 276 5401
Egypt
NBK Capital Securities
Egypt SAE
20 Aisha EL Taymouria St
Garden City
Cairo Egypt
T +202 2798 5900
F +202 2798 5905
NBK CAPITAL
Kuwait
National Bank of Kuwait SAK
Abdullah Al-Ahmed Street
PO Box 95 Safat 13001
Kuwait City Kuwait
T +965 2242 2011F +965 2243 1888
Telex 22043-22451 NATBANK
INTERNATIONAL NETWORK
Bahrain
National Bank of Kuwait SAK
Bahrain Branch
GB Corp Tower Block 346
Road 4626 Building 1411
POBox 5290 Manama
Kingdom of Bahrain
Tel +973 17 155 555
Fax +973 17 104 860
Saudi Arabia
National Bank of Kuwait SAK
Jeddah Branch
Al-Khalidiah Distric
Al-Mukmal Tower POBox 15385
Jeddah 21444 Saudi Arabia
Tel +966 2 603 6300
Fax +966 2 603 6318
United Arab Emirates
National Bank of Kuwait SAK
Dubai Branch
Sheikh Rashed Road Port Saeed Area
ACICO Business Park
POBox 88867 Dubai UAE
Tel +971 4 2929 222
Fax +971 4 2943 337
Jordan
National Bank of Kuwait SAK
Head Ofce
Al Hajj Mohd Abdul Rahim Street
Hijazi Plaza Building 70
POBox 941297Amman ndash 11194 Jordan
Tel +962 6 580 0400
Fax +962 6 580 0441
Lebanon
National Bank of Kuwait
(Lebanon) SAL
Sanayeh Head Ofce
BAC Building Justinien Street
POBox 11-5727 Riad El-Solh
1107 2200 Beirut Lebanon
Tel +961 1 759 700
Fax +961 1 747 866
Iraq
Credit Bank of Iraq
Street 9 Building 187
Sadoun Street District 102
POBox 3420
Baghdad Iraq
Tel +964 1 71821987191944
+964 1 71884067171673
Fax +964 1 7170156
Qatar
International Bank of Qatar
QSC (Associated Company)
Suhaim Bin Hamad Street
POBox 2001
Doha Qatar
Tel +974 4447 8000
Fax +974 4447 3710
Egypt
Al Watany Bank of Egypt
13 Al Themar Street
Gameat Al Dowal AlArabia
Fouad Mohie El Din Square
Mohandessin GizaTel +202 333 888 1617
Fax +202 333 79302
United Kingdom
National Bank of Kuwait
(International) PLC
Head Ofce
13 George street
London W1U 3QJ UK
Tel +44 20 7224 2277
Fax +44 20 7224 2101
France
National Bank of Kuwait
(International) PLC
Paris Branch
90 Avenue des Champs-Elysees
75008 Paris France
Tel +33 1 5659 8600
Fax +33 1 5659 8623
Turkey
Turkish Bank
Head Ofce
Valikonagi Avenue No 1
POBox 34371 Nisantasi
Istanbul
Tel +90 212 373 6373
Fax +90 212 225 0353
Singapore
National Bank of Kuwait SAK
Singapore Branch
9 Rafes Place 24-02
Republic Plaza
Singapore 048619Tel +65 6222 5348
Fax +65 6224 5438
China
National Bank of Kuwait SAK
Shanghai Representative Ofce
Suite 1003 10th oor
Azia Center
1233 Lujiazui Ring Road
Shanghai 200120
China
Tel +86 21 6888 1092
Fax +86 21 5047 1011
United States of America
National Bank of Kuwait SAK
New York Branch
299 Park Avenue 17th Floor
New York NY 10171
USA
Tel +1 212 303 9800
Fax +1 212 319 8269
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KUWAIT DUBAI ISTANBUL CAIRO
8122019 NBK Capital MENA InFocus 05December2013
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MENAinFocusDecember 5 2013
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Figure 1-6 Jazeerarsquos Market Share at Kuwait International Airport
Route Jazeera Airways Market Share -
as of September 2013
Number of Airlines Serving
Route as of September 2013
Al Najaf 83 2
Alexandria 19 6
Amman 40 4
Assiut 51 2
Bahrain 10 4
Beirut 38 3
Cairo 25 3
Dubai 15 4
Istanbul 6 3
Jeddah 16 5
Luxor 74 2
Mashhad 17 7Riyadh 12 3
Sharm El Sheikh 64 3
Sohag 42 4
Source Jazeera Airways
Figure 1-7 Summary of NBK Capitalrsquos Forecasts for Jazeera
2012A 2013F 2014F 2015F
EPS (KD) 0039 0041 0048 0052
EPS Growth 321 65 166 89Net Income Growth 321 239 166 89
PE 149 120 103 95
Dividend Yield 00 42 48 53
EVEBITDA 111 96 83 79
Revenue (KD Millions) 626 663 728 782
Revenue Growth 83 58 99 74
EBITDA (KD Millions) 245 281 328 344
EBITDA Growth 21 15 17 5
EBITDA Margin 391 424 450 440
Net Income (KD Millions) 139 173 201 219
Net Income Growth 321 239 166 89
Net Income Margin 223 261 277 281
Source NBK Capital
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MENAinFocusDecember 5 2013
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IN FOCUS 2 EGYPTrsquoS NATURAL GAS SECTOR
Egypt has close to two trillion cubic meters (TCM) of proven natural gas reserves representing just
over 1 of the worldrsquos proven reserves Egypt is the third-largest reserve in Africa falling behind
Algeria (45 TCM) and Nigeria (52 TCM) according to BPrsquos 2013 World Statistical Review
Unsurprisingly the Egyptian government has continuously promoted the domestic use of naturalgas as an energy source compared to other resources In addition Egypt had been ramping up its
production capacity considerably until 2009 allowing the country to export natural gas through
the Arab Gas Pipeline which serves as a key energy provider for many neighboring countries (such
as Jordan)
However between 2010 and 2012 annual production levels in Egypt remained relatively at (c
61 billion cubic meters) largely due to the political issues the country faced in 2011 onwards
According to the chairman of Egypt Natural Gas Holding Company (EGAS ndash a government-owned
entity that manages various gas projects) Egyptrsquos daily gas production actually declined by 85
YoY to an average of 015 billion cubic meters (BCM) during the rst nine months of 2013
The growth of domestic consumption (estimated at around 526 BCM in 2012) on the other
hand has not wavered marching on at a 7 CAGR between 2009 and 2012 Consequently as
consumption levels increased and production levels declined Egyptrsquos natural gas export levels
declined from 105 BCM in 2009 (20 of total production) to just 24 BCM in 2012 (4 of total
production) The Minister for Oil and Gas mentioned late last year that Egypt might have to start
importing natural gas by mid-2013 in order to meet domestic demand essentially transforming
Egypt from a net exporter to a net importer for the rst time in recent history
Figure 2-1 Egyptrsquos Production and Consumption Levels
20
25
30
35
40
45
50
55
60
65
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
B i l l i o n C u b i c M e t e
r s
Production (BCM) Consumption (BCM)
Source BP Statistical Review June 2013 and GASCO
Implications of switching from being a net exporter to a net importer
Until now there has not been any credible information on the issue of Egypt importing naturalgas however rumors continue to oat around According to an article on Egypt Oil amp Gas Egypt
is looking into importing LNG The article went on to mention that Egypt has signed an agreement
to begin importing natural gas from Algeria starting in 2013 at a cost of USD 11 per MMBTU
(compared to a market price of USD 12 per MMBTU) It also mentioned that Egypt would discuss
a potential agreement with other countries as a potential supplier of natural gas as well Although
imports from some of these countries may prove to be cheaper compared with global LNG prices
it is still well above the price paid to the local gas producers
Natural gas is a highly subsidized product in Egypt In the event of it importing natural gas
the Egyptian government could have additional nancial implications to deal with According
to the Central Bank of Egypt the country spent a total of EGP 96 billion in FY 2011-2012 on
subsidizing petroleum-related expenses making up 20 of the governmentrsquos total expenditureAs a result importing natural gas from Algeria or other neighboring countries could signicantly
increase petroleum related subsidies
Figure 2-2 Natural Gas Local Consumption and Export
(as a Percentage of Total Production)
83 80 8389
96
17 20 1711
4
-
20
40
60
80
100
120
0
25
50
75
100
2008 2009 2010 2011 2012
B C M
( ) o f T o t a l P r o d u c t i o n
Axis Title
Local Consumption [LHS] Export [LHS] Total Export [RHS]
Wadie Khoury
T +971 4365 2806
E wadiekhourynbkcapitalcom
Natural gas production levels
steadied between 2009-2012
while consumption levels
increased As a result Egyptrsquos
exports have fallen quite
significantly
8122019 NBK Capital MENA InFocus 05December2013
httpslidepdfcomreaderfullnbk-capital-mena-infocus-05december2013 712
MENAinFocusDecember 5 2013
nbkcapi ta l com | 7
Figure 2-3 Petroleum Subsidies
63 67
17
96
5 11
178 182
42
203
64
104
0
5
10
15
20
25
20
40
60
80
100
120
20082009 20092010 20102011 20112012 3M201120123M20122013
E G P B i l l i o n s
Axis Title
Total Petroleum Subsidies [LHS] Petroleum Subsidy As of Expenditure [RHS]
Source Central Bank of Egypt
Latest developments
The Egyptian government recently announced its intention to introduce measures that will
incentivize producers to increase exploration of natural gas and thus will likely translate to an
increase in production levels Notably the Minister for Petroleum revealed in November 2013
that Egypt has signed 14 new agreements (out of 21 expected) with foreign companies including
the likes of Shell BICO and Petzed as well as some Canadian and Greek companies to explore for
oil and gas in Sinai the Gulf of Suez and the Western and Nubian deserts The total investment
will be close to USD 470 million Moreover the minister mentioned that EGAS is contemplating
modifying seven existing contracts with foreign rms in the near future
Such steps are a clear indication that the government is aware of the potential impact of dwindling
levels of gas production However Egypt remains in a relatively fragile state and we have yet to see
how the progress may unfold Recent pledges to Egypt from some of the GCC countries could be
very helpful in supporting this venture
Focus industries in Egypt
Egypt is highly reliant on natural gas as an energy source with the majority of its power generated
in this way According to GASCO (the countryrsquos main transmitter and distributor of natural gas
across Egypt) in 2012 the power generation sector was made up of over 30 power stations
which consumed 58 of the total gas production In a distant second place local distribution
companies (LDCs) consumed 20 of the total natural gas production LDCs are responsible for
the supply of gas to the domestic commercial and industrial sectors as well as gas stations The
industrial sector (including iron steel fertilizers cement and ceramic companies) consumed
12 while the petrochemical sector accounted for the remaining 10
Petroleum subsidies make
up a large portion of total
government expenses If Egypt
begins importing natural gas
this could push up government
expenditure even further
8122019 NBK Capital MENA InFocus 05December2013
httpslidepdfcomreaderfullnbk-capital-mena-infocus-05december2013 812
8122019 NBK Capital MENA InFocus 05December2013
httpslidepdfcomreaderfullnbk-capital-mena-infocus-05december2013 912
MENAinFocusDecember 5 2013
nbkcapi ta l com | 9
COMPANIES UNDER COVERAGE (PRICES AS OF NOVEMBER 30 2013)
2012 2013 2014 2012 2013 2014
Banking
Abu Dhabi Commercial Bank UAE AED 534 23-Oct-13 450 Hold 105 100 98 12 11 10
Abu Dhabi Islamic Bank UAE AED 479 29-Oct-13 420 Hold 94 89 83 09 09 08
Arab Na tiona l Bank Saudi Arabia SAR 2990 10-Oct-13 3170 Hold 107 103 98 14 13 12BankMuscat Oman OMR 060 09-Oct-13 064 Hold 95 97 86 12 11 10
Banque Saudi Fr ans i Saudi Ar abia SAR 3330 09-Oct-13 3350 Hold 98 105 95 13 12 11
Commercial International Bank Egypt EGP 4316 21-Oct-13 4980 Buy 120 96 77 25 22 18
Credit Agricole Egypt Egypt EGP 1365 09-Oct-13 1390 Hold 82 60 57 17 14 12
Doha Bank Qatar QAR 5580 22-Oct-13 5230 Hold 112 106 97 19 15 15
First Gulf Bank UAE AED 1700 29-Oct-13 1640 Hold 127 117 110 18 17 16
National Bank of Abu Dhabi UAE AED 1200 24-Oct-13 1140 Hold 122 108 105 16 14 13
Na tiona l Bank o f Oman Om an OMR 030 23-Oct-13 026 Hold 83 89 84 11 10 10
Qatar Islamic Bank Qatar QAR 6980 21-Oct-13 6700 Hold 133 107 93 14 14 13
Qatar National Bank Qatar QAR 17200 09-Oct-13 15680 Hold 142 127 113 25 23 20
Riyad Bank Saudi Arabia SAR 2860 07-Oct-13 3000 Hold 122 115 107 13 13 12
Samba Financial Group Saudi Arabia SAR 4930 08-Oct-13 5800 Hold 102 99 90 14 13 12
Saudi Ho llandi Bank Saudi Ar abia SAR 3790 08-Oct-13 3660 Hold 118 102 92 18 16 14
The Commercial Bank of Qatar Qatar QAR 6880 31-Oct-13 7850 Hold 85 86 79 11 11 11
The Saudi Bri tish Bank Saudi Arabia SAR 4020 08-Oct-13 4140 Hold 123 109 97 20 18 16
Union National Bank UAE AED 494 31-Oct-13 560 Hold 77 75 70 09 08 07
2012 2013 2014 2012 2013 2014
Building Materials
Lecico Egypt EGP 860 26-Nov-13 984 Hold 110 nm 64 52 43 39
Oman Cement Co Oman OMR 079 07-Nov-13 087 Hold 150 152 117 112 111 89
Qatar National Cement Co Qatar QAR 10300 06-Nov-13 10850 Hold 119 113 105 88 86 81
Raysut Cement Co Oman OMR 197 11-Nov-13 133 Sell 160 122 105 126 107 96
Yamama Cement Saudi Arabia SAR 5825 06-Oct-13 5270 Hold 144 134 139 101 99 102
Contractors
Arabtec UAE AED 260 14-Nov-13 200 Sell 293 241 217 157 93 71
DEPA UAE USD 061 04-Sep-13 042 Hold nm 81 96 nm 65 76
Drake and Scull UAE AED 132 14-Nov-13 114 Hold 320 186 139 172 106 85
Consumer Goods and Retail
Abdullah Al Othaim Markets Saudi Arabia SAR 12100 28-Oct-13 14100 Hold 158 134 116 123 105 94
Agthia UAE AED 408 25-Nov-13 450 Hold 196 156 140 135 112 100
Alhokair Saudi Arabia SAR 12250 28-Oct-13 13000 Hold 208 178 142 185 142 114
Almarai Saudi Arabia SAR 5375 27-Oct-13 6700 Buy 224 219 171 181 156 130
GB Auto Egypt EGP 3000 03-Nov-13 3850 Buy 178 205 105 61 62 44
Juhayna Egypt EGP 1245 16-Sep-13 860 Hold 270 225 185 168 146 109
Oriental Weavers Egypt EGP 2932 20-Oct-13 3950 Buy 97 61 45 57 43 38
Savola Saudi Arabia SAR 5900 24-Oct-13 5600 Hold 210 177 156 148 117 112
Petrochemicals and Oil
National Petrochemical Company Saudi Arabia SAR 2495 27-Oct-13 1980 Sell nm nm 141 na 244 95
Saudi Arabian Fertilizer Co Saudi Arabia SAR 15475 20-Oct-13 14360 Hold 133 164 150 108 131 123
Saudi Basic Industries Corp Saudi Arabia SAR 10875 27-Oct-13 10910 Hold 132 124 115 68 65 62
Saudi Industrial Investment Group Saudi Arabia SAR 2990 27-Oct-13 2740 Hold 246 168 119 nm 253 99
Saudi Kayan Petrochemicals Saudi Arabia SAR 1365 20-Oct-13 1040 Sell nm nm 120 244 167 96
Yanbu National Petrochemicals Saudi Arabia SAR 6700 27-Oct-13 6160 Hold 154 127 123 87 78 78
Industries Qatar Qatar QAR 16820 22-Oct-13 16250 Hold 121 124 116 107 109 93
Real Estate
Emaar UAE AED 630 14-Nov-13 688 Hold 181 151 159 180 125 125
Mabanee Kuwait KWD 1140 21-Nov-13 110 Hold 240 153 153 243 137 137
Palm Hills Developments Egypt EGP 251 27-Aug-13 na na na na na na na na
Salhia Real Estate Co Kuwait KWD 0390 27-Nov-13 039 Hold 242 210 211 142 142 147
Sodic Egypt EGP 2166 14-Nov-13 2960 Buy 79 65 53 66 53 39
Talaat Mustafa Group Egypt EGP 560 03-Dec-13 784 Buy 212 205 137 166 134 98
Telecommunications
Batelco Bahrain BHD 031 29-Sep-13 038 Buy 81 80 77 41 33 31
du UAE AED 636 02-Oct-13 390 Sell 147 154 154 72 65 58
Etisalat UAE AED 1150 10-Oct-13 1340 Hold 135 122 113 49 43 42
Mobily Saudi Arabia SAR 8500 09-Jul-13 8710 Hold 109 101 96 84 77 73
Nawras Oman OMR 057 08-Oct-13 058 Hold 100 125 113 42 42 41
Omantel Oman OMR 153 08-Oct-13 171 Hold 99 97 95 49 48 48
Ooredoo Qatar QAR 13640 09-Jul-13 14310 Hold 148 129 107 44 42 41
Saudi Telecom Saudi Arabia SAR 5325 07-Jul-13 4780 Hold 145 121 105 55 67 66
Telecom Egypt Egypt EGP 1331 11-Oct-13 1520 Hold 107 96 97 46 53 53
Vodafone Qatar Qatar QAR 1110 01-Oct-13 960 Hold nm nm nm 716 223 159
Transportation amp Logistics
Air Arabia UAE AED 142 12-Nov-13 105 Sell 158 151 148 127 91 76
Aramex UAE AED 270 29-Oct-13 330 Buy 134 117 99 80 69 61
DP World UAE USD 1609 29-Oct-13 1550 Hold 240 235 200 115 113 103
Jazeera Airways Kuwait KWD 0495 13-Nov-13 0600 Buy 149 120 103 111 96 83Others
El Sewedy Electric Egypt EGP 2772 01-Dec-13 3200 Hold 150 103 98 84 63 60
Maridive Group Egypt USD 103 09-Sep-13 122 Hold 255 430 113 93 112 62
PE EVEBITDA
RecommendationPE PB
Secto r Country Currenc yClosing
Price
Date of Last
Report
12-Month
Fair ValueRecommendation
Secto r Country Currenc yClosing
Price
Date of Last
Report
12-Month
Fair Value
Fiscal year ends in March
8122019 NBK Capital MENA InFocus 05December2013
httpslidepdfcomreaderfullnbk-capital-mena-infocus-05december2013 1012
MENAinFocusDecember 5 2013
nbkcapi ta l com | 10
RISK AND RECOMMENDATION GUIDE
RECOMMENDATION UPSIDE (DOWNSIDE) POTENTIAL
BUY MORE THAN 20
HOLD BETWEEN -15 AND 20
SELL LESS THAN -15
RISK LEVEL
LOW RISK HIGH RISK
1 2 3 4 5
DISCLAIMER
The information opinions tools and materials contained in this report (the ldquoContentrdquo) are not addressed to or intended for publication distribution to or use by
any individual or legal entity who is a citizen or resident of or domiciled in any jurisdiction where such distribution publication availability or use would constitute a
breach of the laws or regulations of such jurisdiction or that would require Watani Investment Company KSCC (ldquoNBK Capitalrdquo) or its parent company its subsidiaries
or its afliates (together ldquoNBK Grouprdquo) to obtain licenses approvals or permissions from the regulatory bodies or authorities of such jurisdiction The Content unless
expressly mentioned otherwise is under copyright to NBK Capital Neither the Content nor any copy of it may be in any way reproduced amended transmitted to copied
or distributed to any other party without the prior express written consent of NBK Capital All trademarks service marks and logos used in this report are trademarks or
service marks or registered trademarks or registered service marks of NBK Capital
The Content is provided to you for information purposes only and is not to be used construed or considered as an offer or the solicitation of an offer to sell or to buy or
to subscribe for any investment (including but not limited to securities or other nancial instruments) No representation or warranty express or implied is given by NBK
Capital or any of its respective directors partners ofcers afliates employees advisors or representatives that the investment referred to in this report is suitable for
you or for any particular investor Receiving this report shall not mean or be interpreted that NBK Capital will treat you as its customer If you are in doubt about suchinvestment we recommend that you consult an independent investment advisor since the investment contained or referred to in this report may not be suitable for you
and NBK Capital makes no representation or warranty in this respect
The Content shall not be considered investment legal accounting or tax advice or a representation that any investment or strategy is suitable or appropriate for your
individual circumstances or otherwise constitutes a personal recommendation to you NBK Capital does not offer advice on the tax consequences of investments and
you are advised to contact an independent tax adviser
The information and opinions contained in this report have been obtained or derived from sources that NBK Capital believes are reliable without being independently
veried as to their accuracy or completeness NBK Capital believes the information and opinions expressed in this report are accurate and complete however NBK
Capital gives no representations or warranty express or implied as to the accuracy or completeness of the Content Additional information may be available upon request
NBK Capital accepts no liability for any direct indirect or consequential loss arising from the use of the Content This report is not to be relied upon as a substitution for
the exercise of independent judgment In addition NBK Capital may have issued and may in the future issue other reports that are inconsistent with and reach different
conclusions from the information presented in this report Those reports reect the different assumptions views and analytical methods of the analysts who prepared
the reports and NBK Capital is under no obligation to ensure that such other reports are brought to your attention NBK Capital may be involved in many businesses that
relate to companies mentioned in this report and may engage with them Past performance should not be taken as an indication or guarantee of future performance and
no representation or warranty express or implied is made regarding future performance Information opinions and estimates contained in this report reect a judgment
at the reportrsquos original date of publication by NBK Capital and are subject to change without notice
The value of any investment or income may fall as well as rise and you may not get back the full amount invested Where an investment is denominated in a currency
other than the local currency of the recipient of the research report changes in the exchange rates may have an adverse effect on the value price or income of that
investment In the case of investments for which there is no recognized market it may be difcult for investors to sell their investments or to obtain reliable information
about their value or the extent of the risk to which they are exposed
NBK Capital has not reviewed the addresses of the hyperlinks to or the websites referred to in the report and takes no responsibility for the content contained therein
Such address or hyperlink (including addresses or hyperlinks to NBK Capitalrsquos own website material) is provided solely for your convenience and information and the
content of the linked site does not in any way form part of this document Accessing such websites or following such links through this report or NBK Capitalrsquos website
shall be at your own risk
NBK Group may have a nancial interest in one or any of the securities that are the subject of this report Funds managed by NBK Group may own the securities that
are the subject of this report NBK Group may own units in one or more of the aforementioned funds
NBK Group may be in the process of soliciting or executing fee-earning mandate or doing business for companies that are either the subject of this report or are
mentioned in this report As a result you should be aware that NBK Group may have material conict of interest that could affect the objectivity of this report
copy COPYRIGHT NOTICE
This is a publication of NBK Capital No part of this publication may be reproduced or duplicated without the prior consent of NBK Capital
8122019 NBK Capital MENA InFocus 05December2013
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MENAinFocusDecember 5 2013
nbkcapi ta l com | 11
NATIONAL BANK OF KUWAIT
Kuwait
Head Ofce
38th Floor Arraya II
Al Shuhada Street Block 6 Sharq
POBox 4950 Safat 13050
Kuwait
T +965 2224 6900
F +965 2224 6905
MENA Research
35th Floor Arraya II
Al Shuhada Street Block 6 Sharq
POBox 4950 Safat 13050 Kuwait
T +965 2224 6663
F +965 2224 6905
E menaresearchnbkcapitalcomkw
Brokerage
37th Floor Arraya II
Al Shuhada Street Block 6 Sharq
POBox 4950 Safat 13050 Kuwait
T +965 2224 6964
F +965 2224 6978
E brokeragenbkcapitalcom
United Arab Emirates
NBK Capital Limited
Precinct Building 3 Ofce 404
Dubai International Financial Center
Sheikh Zayed Road POBox 506506
Dubai UAE
T +971 4 365 2800
F +971 4 365 2805
Turkey
NBK Capital
Arastima ve Musavirlik AS
Sun Plaza 30th Floor
Dereboyu Sk No24
Maslak 34398 Istanbul Turkey
T +90 212 276 5400
F +90 212 276 5401
Egypt
NBK Capital Securities
Egypt SAE
20 Aisha EL Taymouria St
Garden City
Cairo Egypt
T +202 2798 5900
F +202 2798 5905
NBK CAPITAL
Kuwait
National Bank of Kuwait SAK
Abdullah Al-Ahmed Street
PO Box 95 Safat 13001
Kuwait City Kuwait
T +965 2242 2011F +965 2243 1888
Telex 22043-22451 NATBANK
INTERNATIONAL NETWORK
Bahrain
National Bank of Kuwait SAK
Bahrain Branch
GB Corp Tower Block 346
Road 4626 Building 1411
POBox 5290 Manama
Kingdom of Bahrain
Tel +973 17 155 555
Fax +973 17 104 860
Saudi Arabia
National Bank of Kuwait SAK
Jeddah Branch
Al-Khalidiah Distric
Al-Mukmal Tower POBox 15385
Jeddah 21444 Saudi Arabia
Tel +966 2 603 6300
Fax +966 2 603 6318
United Arab Emirates
National Bank of Kuwait SAK
Dubai Branch
Sheikh Rashed Road Port Saeed Area
ACICO Business Park
POBox 88867 Dubai UAE
Tel +971 4 2929 222
Fax +971 4 2943 337
Jordan
National Bank of Kuwait SAK
Head Ofce
Al Hajj Mohd Abdul Rahim Street
Hijazi Plaza Building 70
POBox 941297Amman ndash 11194 Jordan
Tel +962 6 580 0400
Fax +962 6 580 0441
Lebanon
National Bank of Kuwait
(Lebanon) SAL
Sanayeh Head Ofce
BAC Building Justinien Street
POBox 11-5727 Riad El-Solh
1107 2200 Beirut Lebanon
Tel +961 1 759 700
Fax +961 1 747 866
Iraq
Credit Bank of Iraq
Street 9 Building 187
Sadoun Street District 102
POBox 3420
Baghdad Iraq
Tel +964 1 71821987191944
+964 1 71884067171673
Fax +964 1 7170156
Qatar
International Bank of Qatar
QSC (Associated Company)
Suhaim Bin Hamad Street
POBox 2001
Doha Qatar
Tel +974 4447 8000
Fax +974 4447 3710
Egypt
Al Watany Bank of Egypt
13 Al Themar Street
Gameat Al Dowal AlArabia
Fouad Mohie El Din Square
Mohandessin GizaTel +202 333 888 1617
Fax +202 333 79302
United Kingdom
National Bank of Kuwait
(International) PLC
Head Ofce
13 George street
London W1U 3QJ UK
Tel +44 20 7224 2277
Fax +44 20 7224 2101
France
National Bank of Kuwait
(International) PLC
Paris Branch
90 Avenue des Champs-Elysees
75008 Paris France
Tel +33 1 5659 8600
Fax +33 1 5659 8623
Turkey
Turkish Bank
Head Ofce
Valikonagi Avenue No 1
POBox 34371 Nisantasi
Istanbul
Tel +90 212 373 6373
Fax +90 212 225 0353
Singapore
National Bank of Kuwait SAK
Singapore Branch
9 Rafes Place 24-02
Republic Plaza
Singapore 048619Tel +65 6222 5348
Fax +65 6224 5438
China
National Bank of Kuwait SAK
Shanghai Representative Ofce
Suite 1003 10th oor
Azia Center
1233 Lujiazui Ring Road
Shanghai 200120
China
Tel +86 21 6888 1092
Fax +86 21 5047 1011
United States of America
National Bank of Kuwait SAK
New York Branch
299 Park Avenue 17th Floor
New York NY 10171
USA
Tel +1 212 303 9800
Fax +1 212 319 8269
8122019 NBK Capital MENA InFocus 05December2013
httpslidepdfcomreaderfullnbk-capital-mena-infocus-05december2013 1212
KUWAIT DUBAI ISTANBUL CAIRO
8122019 NBK Capital MENA InFocus 05December2013
httpslidepdfcomreaderfullnbk-capital-mena-infocus-05december2013 612
MENAinFocusDecember 5 2013
nbkcapi ta l com | 6
IN FOCUS 2 EGYPTrsquoS NATURAL GAS SECTOR
Egypt has close to two trillion cubic meters (TCM) of proven natural gas reserves representing just
over 1 of the worldrsquos proven reserves Egypt is the third-largest reserve in Africa falling behind
Algeria (45 TCM) and Nigeria (52 TCM) according to BPrsquos 2013 World Statistical Review
Unsurprisingly the Egyptian government has continuously promoted the domestic use of naturalgas as an energy source compared to other resources In addition Egypt had been ramping up its
production capacity considerably until 2009 allowing the country to export natural gas through
the Arab Gas Pipeline which serves as a key energy provider for many neighboring countries (such
as Jordan)
However between 2010 and 2012 annual production levels in Egypt remained relatively at (c
61 billion cubic meters) largely due to the political issues the country faced in 2011 onwards
According to the chairman of Egypt Natural Gas Holding Company (EGAS ndash a government-owned
entity that manages various gas projects) Egyptrsquos daily gas production actually declined by 85
YoY to an average of 015 billion cubic meters (BCM) during the rst nine months of 2013
The growth of domestic consumption (estimated at around 526 BCM in 2012) on the other
hand has not wavered marching on at a 7 CAGR between 2009 and 2012 Consequently as
consumption levels increased and production levels declined Egyptrsquos natural gas export levels
declined from 105 BCM in 2009 (20 of total production) to just 24 BCM in 2012 (4 of total
production) The Minister for Oil and Gas mentioned late last year that Egypt might have to start
importing natural gas by mid-2013 in order to meet domestic demand essentially transforming
Egypt from a net exporter to a net importer for the rst time in recent history
Figure 2-1 Egyptrsquos Production and Consumption Levels
20
25
30
35
40
45
50
55
60
65
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
B i l l i o n C u b i c M e t e
r s
Production (BCM) Consumption (BCM)
Source BP Statistical Review June 2013 and GASCO
Implications of switching from being a net exporter to a net importer
Until now there has not been any credible information on the issue of Egypt importing naturalgas however rumors continue to oat around According to an article on Egypt Oil amp Gas Egypt
is looking into importing LNG The article went on to mention that Egypt has signed an agreement
to begin importing natural gas from Algeria starting in 2013 at a cost of USD 11 per MMBTU
(compared to a market price of USD 12 per MMBTU) It also mentioned that Egypt would discuss
a potential agreement with other countries as a potential supplier of natural gas as well Although
imports from some of these countries may prove to be cheaper compared with global LNG prices
it is still well above the price paid to the local gas producers
Natural gas is a highly subsidized product in Egypt In the event of it importing natural gas
the Egyptian government could have additional nancial implications to deal with According
to the Central Bank of Egypt the country spent a total of EGP 96 billion in FY 2011-2012 on
subsidizing petroleum-related expenses making up 20 of the governmentrsquos total expenditureAs a result importing natural gas from Algeria or other neighboring countries could signicantly
increase petroleum related subsidies
Figure 2-2 Natural Gas Local Consumption and Export
(as a Percentage of Total Production)
83 80 8389
96
17 20 1711
4
-
20
40
60
80
100
120
0
25
50
75
100
2008 2009 2010 2011 2012
B C M
( ) o f T o t a l P r o d u c t i o n
Axis Title
Local Consumption [LHS] Export [LHS] Total Export [RHS]
Wadie Khoury
T +971 4365 2806
E wadiekhourynbkcapitalcom
Natural gas production levels
steadied between 2009-2012
while consumption levels
increased As a result Egyptrsquos
exports have fallen quite
significantly
8122019 NBK Capital MENA InFocus 05December2013
httpslidepdfcomreaderfullnbk-capital-mena-infocus-05december2013 712
MENAinFocusDecember 5 2013
nbkcapi ta l com | 7
Figure 2-3 Petroleum Subsidies
63 67
17
96
5 11
178 182
42
203
64
104
0
5
10
15
20
25
20
40
60
80
100
120
20082009 20092010 20102011 20112012 3M201120123M20122013
E G P B i l l i o n s
Axis Title
Total Petroleum Subsidies [LHS] Petroleum Subsidy As of Expenditure [RHS]
Source Central Bank of Egypt
Latest developments
The Egyptian government recently announced its intention to introduce measures that will
incentivize producers to increase exploration of natural gas and thus will likely translate to an
increase in production levels Notably the Minister for Petroleum revealed in November 2013
that Egypt has signed 14 new agreements (out of 21 expected) with foreign companies including
the likes of Shell BICO and Petzed as well as some Canadian and Greek companies to explore for
oil and gas in Sinai the Gulf of Suez and the Western and Nubian deserts The total investment
will be close to USD 470 million Moreover the minister mentioned that EGAS is contemplating
modifying seven existing contracts with foreign rms in the near future
Such steps are a clear indication that the government is aware of the potential impact of dwindling
levels of gas production However Egypt remains in a relatively fragile state and we have yet to see
how the progress may unfold Recent pledges to Egypt from some of the GCC countries could be
very helpful in supporting this venture
Focus industries in Egypt
Egypt is highly reliant on natural gas as an energy source with the majority of its power generated
in this way According to GASCO (the countryrsquos main transmitter and distributor of natural gas
across Egypt) in 2012 the power generation sector was made up of over 30 power stations
which consumed 58 of the total gas production In a distant second place local distribution
companies (LDCs) consumed 20 of the total natural gas production LDCs are responsible for
the supply of gas to the domestic commercial and industrial sectors as well as gas stations The
industrial sector (including iron steel fertilizers cement and ceramic companies) consumed
12 while the petrochemical sector accounted for the remaining 10
Petroleum subsidies make
up a large portion of total
government expenses If Egypt
begins importing natural gas
this could push up government
expenditure even further
8122019 NBK Capital MENA InFocus 05December2013
httpslidepdfcomreaderfullnbk-capital-mena-infocus-05december2013 812
8122019 NBK Capital MENA InFocus 05December2013
httpslidepdfcomreaderfullnbk-capital-mena-infocus-05december2013 912
MENAinFocusDecember 5 2013
nbkcapi ta l com | 9
COMPANIES UNDER COVERAGE (PRICES AS OF NOVEMBER 30 2013)
2012 2013 2014 2012 2013 2014
Banking
Abu Dhabi Commercial Bank UAE AED 534 23-Oct-13 450 Hold 105 100 98 12 11 10
Abu Dhabi Islamic Bank UAE AED 479 29-Oct-13 420 Hold 94 89 83 09 09 08
Arab Na tiona l Bank Saudi Arabia SAR 2990 10-Oct-13 3170 Hold 107 103 98 14 13 12BankMuscat Oman OMR 060 09-Oct-13 064 Hold 95 97 86 12 11 10
Banque Saudi Fr ans i Saudi Ar abia SAR 3330 09-Oct-13 3350 Hold 98 105 95 13 12 11
Commercial International Bank Egypt EGP 4316 21-Oct-13 4980 Buy 120 96 77 25 22 18
Credit Agricole Egypt Egypt EGP 1365 09-Oct-13 1390 Hold 82 60 57 17 14 12
Doha Bank Qatar QAR 5580 22-Oct-13 5230 Hold 112 106 97 19 15 15
First Gulf Bank UAE AED 1700 29-Oct-13 1640 Hold 127 117 110 18 17 16
National Bank of Abu Dhabi UAE AED 1200 24-Oct-13 1140 Hold 122 108 105 16 14 13
Na tiona l Bank o f Oman Om an OMR 030 23-Oct-13 026 Hold 83 89 84 11 10 10
Qatar Islamic Bank Qatar QAR 6980 21-Oct-13 6700 Hold 133 107 93 14 14 13
Qatar National Bank Qatar QAR 17200 09-Oct-13 15680 Hold 142 127 113 25 23 20
Riyad Bank Saudi Arabia SAR 2860 07-Oct-13 3000 Hold 122 115 107 13 13 12
Samba Financial Group Saudi Arabia SAR 4930 08-Oct-13 5800 Hold 102 99 90 14 13 12
Saudi Ho llandi Bank Saudi Ar abia SAR 3790 08-Oct-13 3660 Hold 118 102 92 18 16 14
The Commercial Bank of Qatar Qatar QAR 6880 31-Oct-13 7850 Hold 85 86 79 11 11 11
The Saudi Bri tish Bank Saudi Arabia SAR 4020 08-Oct-13 4140 Hold 123 109 97 20 18 16
Union National Bank UAE AED 494 31-Oct-13 560 Hold 77 75 70 09 08 07
2012 2013 2014 2012 2013 2014
Building Materials
Lecico Egypt EGP 860 26-Nov-13 984 Hold 110 nm 64 52 43 39
Oman Cement Co Oman OMR 079 07-Nov-13 087 Hold 150 152 117 112 111 89
Qatar National Cement Co Qatar QAR 10300 06-Nov-13 10850 Hold 119 113 105 88 86 81
Raysut Cement Co Oman OMR 197 11-Nov-13 133 Sell 160 122 105 126 107 96
Yamama Cement Saudi Arabia SAR 5825 06-Oct-13 5270 Hold 144 134 139 101 99 102
Contractors
Arabtec UAE AED 260 14-Nov-13 200 Sell 293 241 217 157 93 71
DEPA UAE USD 061 04-Sep-13 042 Hold nm 81 96 nm 65 76
Drake and Scull UAE AED 132 14-Nov-13 114 Hold 320 186 139 172 106 85
Consumer Goods and Retail
Abdullah Al Othaim Markets Saudi Arabia SAR 12100 28-Oct-13 14100 Hold 158 134 116 123 105 94
Agthia UAE AED 408 25-Nov-13 450 Hold 196 156 140 135 112 100
Alhokair Saudi Arabia SAR 12250 28-Oct-13 13000 Hold 208 178 142 185 142 114
Almarai Saudi Arabia SAR 5375 27-Oct-13 6700 Buy 224 219 171 181 156 130
GB Auto Egypt EGP 3000 03-Nov-13 3850 Buy 178 205 105 61 62 44
Juhayna Egypt EGP 1245 16-Sep-13 860 Hold 270 225 185 168 146 109
Oriental Weavers Egypt EGP 2932 20-Oct-13 3950 Buy 97 61 45 57 43 38
Savola Saudi Arabia SAR 5900 24-Oct-13 5600 Hold 210 177 156 148 117 112
Petrochemicals and Oil
National Petrochemical Company Saudi Arabia SAR 2495 27-Oct-13 1980 Sell nm nm 141 na 244 95
Saudi Arabian Fertilizer Co Saudi Arabia SAR 15475 20-Oct-13 14360 Hold 133 164 150 108 131 123
Saudi Basic Industries Corp Saudi Arabia SAR 10875 27-Oct-13 10910 Hold 132 124 115 68 65 62
Saudi Industrial Investment Group Saudi Arabia SAR 2990 27-Oct-13 2740 Hold 246 168 119 nm 253 99
Saudi Kayan Petrochemicals Saudi Arabia SAR 1365 20-Oct-13 1040 Sell nm nm 120 244 167 96
Yanbu National Petrochemicals Saudi Arabia SAR 6700 27-Oct-13 6160 Hold 154 127 123 87 78 78
Industries Qatar Qatar QAR 16820 22-Oct-13 16250 Hold 121 124 116 107 109 93
Real Estate
Emaar UAE AED 630 14-Nov-13 688 Hold 181 151 159 180 125 125
Mabanee Kuwait KWD 1140 21-Nov-13 110 Hold 240 153 153 243 137 137
Palm Hills Developments Egypt EGP 251 27-Aug-13 na na na na na na na na
Salhia Real Estate Co Kuwait KWD 0390 27-Nov-13 039 Hold 242 210 211 142 142 147
Sodic Egypt EGP 2166 14-Nov-13 2960 Buy 79 65 53 66 53 39
Talaat Mustafa Group Egypt EGP 560 03-Dec-13 784 Buy 212 205 137 166 134 98
Telecommunications
Batelco Bahrain BHD 031 29-Sep-13 038 Buy 81 80 77 41 33 31
du UAE AED 636 02-Oct-13 390 Sell 147 154 154 72 65 58
Etisalat UAE AED 1150 10-Oct-13 1340 Hold 135 122 113 49 43 42
Mobily Saudi Arabia SAR 8500 09-Jul-13 8710 Hold 109 101 96 84 77 73
Nawras Oman OMR 057 08-Oct-13 058 Hold 100 125 113 42 42 41
Omantel Oman OMR 153 08-Oct-13 171 Hold 99 97 95 49 48 48
Ooredoo Qatar QAR 13640 09-Jul-13 14310 Hold 148 129 107 44 42 41
Saudi Telecom Saudi Arabia SAR 5325 07-Jul-13 4780 Hold 145 121 105 55 67 66
Telecom Egypt Egypt EGP 1331 11-Oct-13 1520 Hold 107 96 97 46 53 53
Vodafone Qatar Qatar QAR 1110 01-Oct-13 960 Hold nm nm nm 716 223 159
Transportation amp Logistics
Air Arabia UAE AED 142 12-Nov-13 105 Sell 158 151 148 127 91 76
Aramex UAE AED 270 29-Oct-13 330 Buy 134 117 99 80 69 61
DP World UAE USD 1609 29-Oct-13 1550 Hold 240 235 200 115 113 103
Jazeera Airways Kuwait KWD 0495 13-Nov-13 0600 Buy 149 120 103 111 96 83Others
El Sewedy Electric Egypt EGP 2772 01-Dec-13 3200 Hold 150 103 98 84 63 60
Maridive Group Egypt USD 103 09-Sep-13 122 Hold 255 430 113 93 112 62
PE EVEBITDA
RecommendationPE PB
Secto r Country Currenc yClosing
Price
Date of Last
Report
12-Month
Fair ValueRecommendation
Secto r Country Currenc yClosing
Price
Date of Last
Report
12-Month
Fair Value
Fiscal year ends in March
8122019 NBK Capital MENA InFocus 05December2013
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MENAinFocusDecember 5 2013
nbkcapi ta l com | 10
RISK AND RECOMMENDATION GUIDE
RECOMMENDATION UPSIDE (DOWNSIDE) POTENTIAL
BUY MORE THAN 20
HOLD BETWEEN -15 AND 20
SELL LESS THAN -15
RISK LEVEL
LOW RISK HIGH RISK
1 2 3 4 5
DISCLAIMER
The information opinions tools and materials contained in this report (the ldquoContentrdquo) are not addressed to or intended for publication distribution to or use by
any individual or legal entity who is a citizen or resident of or domiciled in any jurisdiction where such distribution publication availability or use would constitute a
breach of the laws or regulations of such jurisdiction or that would require Watani Investment Company KSCC (ldquoNBK Capitalrdquo) or its parent company its subsidiaries
or its afliates (together ldquoNBK Grouprdquo) to obtain licenses approvals or permissions from the regulatory bodies or authorities of such jurisdiction The Content unless
expressly mentioned otherwise is under copyright to NBK Capital Neither the Content nor any copy of it may be in any way reproduced amended transmitted to copied
or distributed to any other party without the prior express written consent of NBK Capital All trademarks service marks and logos used in this report are trademarks or
service marks or registered trademarks or registered service marks of NBK Capital
The Content is provided to you for information purposes only and is not to be used construed or considered as an offer or the solicitation of an offer to sell or to buy or
to subscribe for any investment (including but not limited to securities or other nancial instruments) No representation or warranty express or implied is given by NBK
Capital or any of its respective directors partners ofcers afliates employees advisors or representatives that the investment referred to in this report is suitable for
you or for any particular investor Receiving this report shall not mean or be interpreted that NBK Capital will treat you as its customer If you are in doubt about suchinvestment we recommend that you consult an independent investment advisor since the investment contained or referred to in this report may not be suitable for you
and NBK Capital makes no representation or warranty in this respect
The Content shall not be considered investment legal accounting or tax advice or a representation that any investment or strategy is suitable or appropriate for your
individual circumstances or otherwise constitutes a personal recommendation to you NBK Capital does not offer advice on the tax consequences of investments and
you are advised to contact an independent tax adviser
The information and opinions contained in this report have been obtained or derived from sources that NBK Capital believes are reliable without being independently
veried as to their accuracy or completeness NBK Capital believes the information and opinions expressed in this report are accurate and complete however NBK
Capital gives no representations or warranty express or implied as to the accuracy or completeness of the Content Additional information may be available upon request
NBK Capital accepts no liability for any direct indirect or consequential loss arising from the use of the Content This report is not to be relied upon as a substitution for
the exercise of independent judgment In addition NBK Capital may have issued and may in the future issue other reports that are inconsistent with and reach different
conclusions from the information presented in this report Those reports reect the different assumptions views and analytical methods of the analysts who prepared
the reports and NBK Capital is under no obligation to ensure that such other reports are brought to your attention NBK Capital may be involved in many businesses that
relate to companies mentioned in this report and may engage with them Past performance should not be taken as an indication or guarantee of future performance and
no representation or warranty express or implied is made regarding future performance Information opinions and estimates contained in this report reect a judgment
at the reportrsquos original date of publication by NBK Capital and are subject to change without notice
The value of any investment or income may fall as well as rise and you may not get back the full amount invested Where an investment is denominated in a currency
other than the local currency of the recipient of the research report changes in the exchange rates may have an adverse effect on the value price or income of that
investment In the case of investments for which there is no recognized market it may be difcult for investors to sell their investments or to obtain reliable information
about their value or the extent of the risk to which they are exposed
NBK Capital has not reviewed the addresses of the hyperlinks to or the websites referred to in the report and takes no responsibility for the content contained therein
Such address or hyperlink (including addresses or hyperlinks to NBK Capitalrsquos own website material) is provided solely for your convenience and information and the
content of the linked site does not in any way form part of this document Accessing such websites or following such links through this report or NBK Capitalrsquos website
shall be at your own risk
NBK Group may have a nancial interest in one or any of the securities that are the subject of this report Funds managed by NBK Group may own the securities that
are the subject of this report NBK Group may own units in one or more of the aforementioned funds
NBK Group may be in the process of soliciting or executing fee-earning mandate or doing business for companies that are either the subject of this report or are
mentioned in this report As a result you should be aware that NBK Group may have material conict of interest that could affect the objectivity of this report
copy COPYRIGHT NOTICE
This is a publication of NBK Capital No part of this publication may be reproduced or duplicated without the prior consent of NBK Capital
8122019 NBK Capital MENA InFocus 05December2013
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MENAinFocusDecember 5 2013
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NATIONAL BANK OF KUWAIT
Kuwait
Head Ofce
38th Floor Arraya II
Al Shuhada Street Block 6 Sharq
POBox 4950 Safat 13050
Kuwait
T +965 2224 6900
F +965 2224 6905
MENA Research
35th Floor Arraya II
Al Shuhada Street Block 6 Sharq
POBox 4950 Safat 13050 Kuwait
T +965 2224 6663
F +965 2224 6905
E menaresearchnbkcapitalcomkw
Brokerage
37th Floor Arraya II
Al Shuhada Street Block 6 Sharq
POBox 4950 Safat 13050 Kuwait
T +965 2224 6964
F +965 2224 6978
E brokeragenbkcapitalcom
United Arab Emirates
NBK Capital Limited
Precinct Building 3 Ofce 404
Dubai International Financial Center
Sheikh Zayed Road POBox 506506
Dubai UAE
T +971 4 365 2800
F +971 4 365 2805
Turkey
NBK Capital
Arastima ve Musavirlik AS
Sun Plaza 30th Floor
Dereboyu Sk No24
Maslak 34398 Istanbul Turkey
T +90 212 276 5400
F +90 212 276 5401
Egypt
NBK Capital Securities
Egypt SAE
20 Aisha EL Taymouria St
Garden City
Cairo Egypt
T +202 2798 5900
F +202 2798 5905
NBK CAPITAL
Kuwait
National Bank of Kuwait SAK
Abdullah Al-Ahmed Street
PO Box 95 Safat 13001
Kuwait City Kuwait
T +965 2242 2011F +965 2243 1888
Telex 22043-22451 NATBANK
INTERNATIONAL NETWORK
Bahrain
National Bank of Kuwait SAK
Bahrain Branch
GB Corp Tower Block 346
Road 4626 Building 1411
POBox 5290 Manama
Kingdom of Bahrain
Tel +973 17 155 555
Fax +973 17 104 860
Saudi Arabia
National Bank of Kuwait SAK
Jeddah Branch
Al-Khalidiah Distric
Al-Mukmal Tower POBox 15385
Jeddah 21444 Saudi Arabia
Tel +966 2 603 6300
Fax +966 2 603 6318
United Arab Emirates
National Bank of Kuwait SAK
Dubai Branch
Sheikh Rashed Road Port Saeed Area
ACICO Business Park
POBox 88867 Dubai UAE
Tel +971 4 2929 222
Fax +971 4 2943 337
Jordan
National Bank of Kuwait SAK
Head Ofce
Al Hajj Mohd Abdul Rahim Street
Hijazi Plaza Building 70
POBox 941297Amman ndash 11194 Jordan
Tel +962 6 580 0400
Fax +962 6 580 0441
Lebanon
National Bank of Kuwait
(Lebanon) SAL
Sanayeh Head Ofce
BAC Building Justinien Street
POBox 11-5727 Riad El-Solh
1107 2200 Beirut Lebanon
Tel +961 1 759 700
Fax +961 1 747 866
Iraq
Credit Bank of Iraq
Street 9 Building 187
Sadoun Street District 102
POBox 3420
Baghdad Iraq
Tel +964 1 71821987191944
+964 1 71884067171673
Fax +964 1 7170156
Qatar
International Bank of Qatar
QSC (Associated Company)
Suhaim Bin Hamad Street
POBox 2001
Doha Qatar
Tel +974 4447 8000
Fax +974 4447 3710
Egypt
Al Watany Bank of Egypt
13 Al Themar Street
Gameat Al Dowal AlArabia
Fouad Mohie El Din Square
Mohandessin GizaTel +202 333 888 1617
Fax +202 333 79302
United Kingdom
National Bank of Kuwait
(International) PLC
Head Ofce
13 George street
London W1U 3QJ UK
Tel +44 20 7224 2277
Fax +44 20 7224 2101
France
National Bank of Kuwait
(International) PLC
Paris Branch
90 Avenue des Champs-Elysees
75008 Paris France
Tel +33 1 5659 8600
Fax +33 1 5659 8623
Turkey
Turkish Bank
Head Ofce
Valikonagi Avenue No 1
POBox 34371 Nisantasi
Istanbul
Tel +90 212 373 6373
Fax +90 212 225 0353
Singapore
National Bank of Kuwait SAK
Singapore Branch
9 Rafes Place 24-02
Republic Plaza
Singapore 048619Tel +65 6222 5348
Fax +65 6224 5438
China
National Bank of Kuwait SAK
Shanghai Representative Ofce
Suite 1003 10th oor
Azia Center
1233 Lujiazui Ring Road
Shanghai 200120
China
Tel +86 21 6888 1092
Fax +86 21 5047 1011
United States of America
National Bank of Kuwait SAK
New York Branch
299 Park Avenue 17th Floor
New York NY 10171
USA
Tel +1 212 303 9800
Fax +1 212 319 8269
8122019 NBK Capital MENA InFocus 05December2013
httpslidepdfcomreaderfullnbk-capital-mena-infocus-05december2013 1212
KUWAIT DUBAI ISTANBUL CAIRO
8122019 NBK Capital MENA InFocus 05December2013
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MENAinFocusDecember 5 2013
nbkcapi ta l com | 7
Figure 2-3 Petroleum Subsidies
63 67
17
96
5 11
178 182
42
203
64
104
0
5
10
15
20
25
20
40
60
80
100
120
20082009 20092010 20102011 20112012 3M201120123M20122013
E G P B i l l i o n s
Axis Title
Total Petroleum Subsidies [LHS] Petroleum Subsidy As of Expenditure [RHS]
Source Central Bank of Egypt
Latest developments
The Egyptian government recently announced its intention to introduce measures that will
incentivize producers to increase exploration of natural gas and thus will likely translate to an
increase in production levels Notably the Minister for Petroleum revealed in November 2013
that Egypt has signed 14 new agreements (out of 21 expected) with foreign companies including
the likes of Shell BICO and Petzed as well as some Canadian and Greek companies to explore for
oil and gas in Sinai the Gulf of Suez and the Western and Nubian deserts The total investment
will be close to USD 470 million Moreover the minister mentioned that EGAS is contemplating
modifying seven existing contracts with foreign rms in the near future
Such steps are a clear indication that the government is aware of the potential impact of dwindling
levels of gas production However Egypt remains in a relatively fragile state and we have yet to see
how the progress may unfold Recent pledges to Egypt from some of the GCC countries could be
very helpful in supporting this venture
Focus industries in Egypt
Egypt is highly reliant on natural gas as an energy source with the majority of its power generated
in this way According to GASCO (the countryrsquos main transmitter and distributor of natural gas
across Egypt) in 2012 the power generation sector was made up of over 30 power stations
which consumed 58 of the total gas production In a distant second place local distribution
companies (LDCs) consumed 20 of the total natural gas production LDCs are responsible for
the supply of gas to the domestic commercial and industrial sectors as well as gas stations The
industrial sector (including iron steel fertilizers cement and ceramic companies) consumed
12 while the petrochemical sector accounted for the remaining 10
Petroleum subsidies make
up a large portion of total
government expenses If Egypt
begins importing natural gas
this could push up government
expenditure even further
8122019 NBK Capital MENA InFocus 05December2013
httpslidepdfcomreaderfullnbk-capital-mena-infocus-05december2013 812
8122019 NBK Capital MENA InFocus 05December2013
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MENAinFocusDecember 5 2013
nbkcapi ta l com | 9
COMPANIES UNDER COVERAGE (PRICES AS OF NOVEMBER 30 2013)
2012 2013 2014 2012 2013 2014
Banking
Abu Dhabi Commercial Bank UAE AED 534 23-Oct-13 450 Hold 105 100 98 12 11 10
Abu Dhabi Islamic Bank UAE AED 479 29-Oct-13 420 Hold 94 89 83 09 09 08
Arab Na tiona l Bank Saudi Arabia SAR 2990 10-Oct-13 3170 Hold 107 103 98 14 13 12BankMuscat Oman OMR 060 09-Oct-13 064 Hold 95 97 86 12 11 10
Banque Saudi Fr ans i Saudi Ar abia SAR 3330 09-Oct-13 3350 Hold 98 105 95 13 12 11
Commercial International Bank Egypt EGP 4316 21-Oct-13 4980 Buy 120 96 77 25 22 18
Credit Agricole Egypt Egypt EGP 1365 09-Oct-13 1390 Hold 82 60 57 17 14 12
Doha Bank Qatar QAR 5580 22-Oct-13 5230 Hold 112 106 97 19 15 15
First Gulf Bank UAE AED 1700 29-Oct-13 1640 Hold 127 117 110 18 17 16
National Bank of Abu Dhabi UAE AED 1200 24-Oct-13 1140 Hold 122 108 105 16 14 13
Na tiona l Bank o f Oman Om an OMR 030 23-Oct-13 026 Hold 83 89 84 11 10 10
Qatar Islamic Bank Qatar QAR 6980 21-Oct-13 6700 Hold 133 107 93 14 14 13
Qatar National Bank Qatar QAR 17200 09-Oct-13 15680 Hold 142 127 113 25 23 20
Riyad Bank Saudi Arabia SAR 2860 07-Oct-13 3000 Hold 122 115 107 13 13 12
Samba Financial Group Saudi Arabia SAR 4930 08-Oct-13 5800 Hold 102 99 90 14 13 12
Saudi Ho llandi Bank Saudi Ar abia SAR 3790 08-Oct-13 3660 Hold 118 102 92 18 16 14
The Commercial Bank of Qatar Qatar QAR 6880 31-Oct-13 7850 Hold 85 86 79 11 11 11
The Saudi Bri tish Bank Saudi Arabia SAR 4020 08-Oct-13 4140 Hold 123 109 97 20 18 16
Union National Bank UAE AED 494 31-Oct-13 560 Hold 77 75 70 09 08 07
2012 2013 2014 2012 2013 2014
Building Materials
Lecico Egypt EGP 860 26-Nov-13 984 Hold 110 nm 64 52 43 39
Oman Cement Co Oman OMR 079 07-Nov-13 087 Hold 150 152 117 112 111 89
Qatar National Cement Co Qatar QAR 10300 06-Nov-13 10850 Hold 119 113 105 88 86 81
Raysut Cement Co Oman OMR 197 11-Nov-13 133 Sell 160 122 105 126 107 96
Yamama Cement Saudi Arabia SAR 5825 06-Oct-13 5270 Hold 144 134 139 101 99 102
Contractors
Arabtec UAE AED 260 14-Nov-13 200 Sell 293 241 217 157 93 71
DEPA UAE USD 061 04-Sep-13 042 Hold nm 81 96 nm 65 76
Drake and Scull UAE AED 132 14-Nov-13 114 Hold 320 186 139 172 106 85
Consumer Goods and Retail
Abdullah Al Othaim Markets Saudi Arabia SAR 12100 28-Oct-13 14100 Hold 158 134 116 123 105 94
Agthia UAE AED 408 25-Nov-13 450 Hold 196 156 140 135 112 100
Alhokair Saudi Arabia SAR 12250 28-Oct-13 13000 Hold 208 178 142 185 142 114
Almarai Saudi Arabia SAR 5375 27-Oct-13 6700 Buy 224 219 171 181 156 130
GB Auto Egypt EGP 3000 03-Nov-13 3850 Buy 178 205 105 61 62 44
Juhayna Egypt EGP 1245 16-Sep-13 860 Hold 270 225 185 168 146 109
Oriental Weavers Egypt EGP 2932 20-Oct-13 3950 Buy 97 61 45 57 43 38
Savola Saudi Arabia SAR 5900 24-Oct-13 5600 Hold 210 177 156 148 117 112
Petrochemicals and Oil
National Petrochemical Company Saudi Arabia SAR 2495 27-Oct-13 1980 Sell nm nm 141 na 244 95
Saudi Arabian Fertilizer Co Saudi Arabia SAR 15475 20-Oct-13 14360 Hold 133 164 150 108 131 123
Saudi Basic Industries Corp Saudi Arabia SAR 10875 27-Oct-13 10910 Hold 132 124 115 68 65 62
Saudi Industrial Investment Group Saudi Arabia SAR 2990 27-Oct-13 2740 Hold 246 168 119 nm 253 99
Saudi Kayan Petrochemicals Saudi Arabia SAR 1365 20-Oct-13 1040 Sell nm nm 120 244 167 96
Yanbu National Petrochemicals Saudi Arabia SAR 6700 27-Oct-13 6160 Hold 154 127 123 87 78 78
Industries Qatar Qatar QAR 16820 22-Oct-13 16250 Hold 121 124 116 107 109 93
Real Estate
Emaar UAE AED 630 14-Nov-13 688 Hold 181 151 159 180 125 125
Mabanee Kuwait KWD 1140 21-Nov-13 110 Hold 240 153 153 243 137 137
Palm Hills Developments Egypt EGP 251 27-Aug-13 na na na na na na na na
Salhia Real Estate Co Kuwait KWD 0390 27-Nov-13 039 Hold 242 210 211 142 142 147
Sodic Egypt EGP 2166 14-Nov-13 2960 Buy 79 65 53 66 53 39
Talaat Mustafa Group Egypt EGP 560 03-Dec-13 784 Buy 212 205 137 166 134 98
Telecommunications
Batelco Bahrain BHD 031 29-Sep-13 038 Buy 81 80 77 41 33 31
du UAE AED 636 02-Oct-13 390 Sell 147 154 154 72 65 58
Etisalat UAE AED 1150 10-Oct-13 1340 Hold 135 122 113 49 43 42
Mobily Saudi Arabia SAR 8500 09-Jul-13 8710 Hold 109 101 96 84 77 73
Nawras Oman OMR 057 08-Oct-13 058 Hold 100 125 113 42 42 41
Omantel Oman OMR 153 08-Oct-13 171 Hold 99 97 95 49 48 48
Ooredoo Qatar QAR 13640 09-Jul-13 14310 Hold 148 129 107 44 42 41
Saudi Telecom Saudi Arabia SAR 5325 07-Jul-13 4780 Hold 145 121 105 55 67 66
Telecom Egypt Egypt EGP 1331 11-Oct-13 1520 Hold 107 96 97 46 53 53
Vodafone Qatar Qatar QAR 1110 01-Oct-13 960 Hold nm nm nm 716 223 159
Transportation amp Logistics
Air Arabia UAE AED 142 12-Nov-13 105 Sell 158 151 148 127 91 76
Aramex UAE AED 270 29-Oct-13 330 Buy 134 117 99 80 69 61
DP World UAE USD 1609 29-Oct-13 1550 Hold 240 235 200 115 113 103
Jazeera Airways Kuwait KWD 0495 13-Nov-13 0600 Buy 149 120 103 111 96 83Others
El Sewedy Electric Egypt EGP 2772 01-Dec-13 3200 Hold 150 103 98 84 63 60
Maridive Group Egypt USD 103 09-Sep-13 122 Hold 255 430 113 93 112 62
PE EVEBITDA
RecommendationPE PB
Secto r Country Currenc yClosing
Price
Date of Last
Report
12-Month
Fair ValueRecommendation
Secto r Country Currenc yClosing
Price
Date of Last
Report
12-Month
Fair Value
Fiscal year ends in March
8122019 NBK Capital MENA InFocus 05December2013
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RISK AND RECOMMENDATION GUIDE
RECOMMENDATION UPSIDE (DOWNSIDE) POTENTIAL
BUY MORE THAN 20
HOLD BETWEEN -15 AND 20
SELL LESS THAN -15
RISK LEVEL
LOW RISK HIGH RISK
1 2 3 4 5
DISCLAIMER
The information opinions tools and materials contained in this report (the ldquoContentrdquo) are not addressed to or intended for publication distribution to or use by
any individual or legal entity who is a citizen or resident of or domiciled in any jurisdiction where such distribution publication availability or use would constitute a
breach of the laws or regulations of such jurisdiction or that would require Watani Investment Company KSCC (ldquoNBK Capitalrdquo) or its parent company its subsidiaries
or its afliates (together ldquoNBK Grouprdquo) to obtain licenses approvals or permissions from the regulatory bodies or authorities of such jurisdiction The Content unless
expressly mentioned otherwise is under copyright to NBK Capital Neither the Content nor any copy of it may be in any way reproduced amended transmitted to copied
or distributed to any other party without the prior express written consent of NBK Capital All trademarks service marks and logos used in this report are trademarks or
service marks or registered trademarks or registered service marks of NBK Capital
The Content is provided to you for information purposes only and is not to be used construed or considered as an offer or the solicitation of an offer to sell or to buy or
to subscribe for any investment (including but not limited to securities or other nancial instruments) No representation or warranty express or implied is given by NBK
Capital or any of its respective directors partners ofcers afliates employees advisors or representatives that the investment referred to in this report is suitable for
you or for any particular investor Receiving this report shall not mean or be interpreted that NBK Capital will treat you as its customer If you are in doubt about suchinvestment we recommend that you consult an independent investment advisor since the investment contained or referred to in this report may not be suitable for you
and NBK Capital makes no representation or warranty in this respect
The Content shall not be considered investment legal accounting or tax advice or a representation that any investment or strategy is suitable or appropriate for your
individual circumstances or otherwise constitutes a personal recommendation to you NBK Capital does not offer advice on the tax consequences of investments and
you are advised to contact an independent tax adviser
The information and opinions contained in this report have been obtained or derived from sources that NBK Capital believes are reliable without being independently
veried as to their accuracy or completeness NBK Capital believes the information and opinions expressed in this report are accurate and complete however NBK
Capital gives no representations or warranty express or implied as to the accuracy or completeness of the Content Additional information may be available upon request
NBK Capital accepts no liability for any direct indirect or consequential loss arising from the use of the Content This report is not to be relied upon as a substitution for
the exercise of independent judgment In addition NBK Capital may have issued and may in the future issue other reports that are inconsistent with and reach different
conclusions from the information presented in this report Those reports reect the different assumptions views and analytical methods of the analysts who prepared
the reports and NBK Capital is under no obligation to ensure that such other reports are brought to your attention NBK Capital may be involved in many businesses that
relate to companies mentioned in this report and may engage with them Past performance should not be taken as an indication or guarantee of future performance and
no representation or warranty express or implied is made regarding future performance Information opinions and estimates contained in this report reect a judgment
at the reportrsquos original date of publication by NBK Capital and are subject to change without notice
The value of any investment or income may fall as well as rise and you may not get back the full amount invested Where an investment is denominated in a currency
other than the local currency of the recipient of the research report changes in the exchange rates may have an adverse effect on the value price or income of that
investment In the case of investments for which there is no recognized market it may be difcult for investors to sell their investments or to obtain reliable information
about their value or the extent of the risk to which they are exposed
NBK Capital has not reviewed the addresses of the hyperlinks to or the websites referred to in the report and takes no responsibility for the content contained therein
Such address or hyperlink (including addresses or hyperlinks to NBK Capitalrsquos own website material) is provided solely for your convenience and information and the
content of the linked site does not in any way form part of this document Accessing such websites or following such links through this report or NBK Capitalrsquos website
shall be at your own risk
NBK Group may have a nancial interest in one or any of the securities that are the subject of this report Funds managed by NBK Group may own the securities that
are the subject of this report NBK Group may own units in one or more of the aforementioned funds
NBK Group may be in the process of soliciting or executing fee-earning mandate or doing business for companies that are either the subject of this report or are
mentioned in this report As a result you should be aware that NBK Group may have material conict of interest that could affect the objectivity of this report
copy COPYRIGHT NOTICE
This is a publication of NBK Capital No part of this publication may be reproduced or duplicated without the prior consent of NBK Capital
8122019 NBK Capital MENA InFocus 05December2013
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MENAinFocusDecember 5 2013
nbkcapi ta l com | 11
NATIONAL BANK OF KUWAIT
Kuwait
Head Ofce
38th Floor Arraya II
Al Shuhada Street Block 6 Sharq
POBox 4950 Safat 13050
Kuwait
T +965 2224 6900
F +965 2224 6905
MENA Research
35th Floor Arraya II
Al Shuhada Street Block 6 Sharq
POBox 4950 Safat 13050 Kuwait
T +965 2224 6663
F +965 2224 6905
E menaresearchnbkcapitalcomkw
Brokerage
37th Floor Arraya II
Al Shuhada Street Block 6 Sharq
POBox 4950 Safat 13050 Kuwait
T +965 2224 6964
F +965 2224 6978
E brokeragenbkcapitalcom
United Arab Emirates
NBK Capital Limited
Precinct Building 3 Ofce 404
Dubai International Financial Center
Sheikh Zayed Road POBox 506506
Dubai UAE
T +971 4 365 2800
F +971 4 365 2805
Turkey
NBK Capital
Arastima ve Musavirlik AS
Sun Plaza 30th Floor
Dereboyu Sk No24
Maslak 34398 Istanbul Turkey
T +90 212 276 5400
F +90 212 276 5401
Egypt
NBK Capital Securities
Egypt SAE
20 Aisha EL Taymouria St
Garden City
Cairo Egypt
T +202 2798 5900
F +202 2798 5905
NBK CAPITAL
Kuwait
National Bank of Kuwait SAK
Abdullah Al-Ahmed Street
PO Box 95 Safat 13001
Kuwait City Kuwait
T +965 2242 2011F +965 2243 1888
Telex 22043-22451 NATBANK
INTERNATIONAL NETWORK
Bahrain
National Bank of Kuwait SAK
Bahrain Branch
GB Corp Tower Block 346
Road 4626 Building 1411
POBox 5290 Manama
Kingdom of Bahrain
Tel +973 17 155 555
Fax +973 17 104 860
Saudi Arabia
National Bank of Kuwait SAK
Jeddah Branch
Al-Khalidiah Distric
Al-Mukmal Tower POBox 15385
Jeddah 21444 Saudi Arabia
Tel +966 2 603 6300
Fax +966 2 603 6318
United Arab Emirates
National Bank of Kuwait SAK
Dubai Branch
Sheikh Rashed Road Port Saeed Area
ACICO Business Park
POBox 88867 Dubai UAE
Tel +971 4 2929 222
Fax +971 4 2943 337
Jordan
National Bank of Kuwait SAK
Head Ofce
Al Hajj Mohd Abdul Rahim Street
Hijazi Plaza Building 70
POBox 941297Amman ndash 11194 Jordan
Tel +962 6 580 0400
Fax +962 6 580 0441
Lebanon
National Bank of Kuwait
(Lebanon) SAL
Sanayeh Head Ofce
BAC Building Justinien Street
POBox 11-5727 Riad El-Solh
1107 2200 Beirut Lebanon
Tel +961 1 759 700
Fax +961 1 747 866
Iraq
Credit Bank of Iraq
Street 9 Building 187
Sadoun Street District 102
POBox 3420
Baghdad Iraq
Tel +964 1 71821987191944
+964 1 71884067171673
Fax +964 1 7170156
Qatar
International Bank of Qatar
QSC (Associated Company)
Suhaim Bin Hamad Street
POBox 2001
Doha Qatar
Tel +974 4447 8000
Fax +974 4447 3710
Egypt
Al Watany Bank of Egypt
13 Al Themar Street
Gameat Al Dowal AlArabia
Fouad Mohie El Din Square
Mohandessin GizaTel +202 333 888 1617
Fax +202 333 79302
United Kingdom
National Bank of Kuwait
(International) PLC
Head Ofce
13 George street
London W1U 3QJ UK
Tel +44 20 7224 2277
Fax +44 20 7224 2101
France
National Bank of Kuwait
(International) PLC
Paris Branch
90 Avenue des Champs-Elysees
75008 Paris France
Tel +33 1 5659 8600
Fax +33 1 5659 8623
Turkey
Turkish Bank
Head Ofce
Valikonagi Avenue No 1
POBox 34371 Nisantasi
Istanbul
Tel +90 212 373 6373
Fax +90 212 225 0353
Singapore
National Bank of Kuwait SAK
Singapore Branch
9 Rafes Place 24-02
Republic Plaza
Singapore 048619Tel +65 6222 5348
Fax +65 6224 5438
China
National Bank of Kuwait SAK
Shanghai Representative Ofce
Suite 1003 10th oor
Azia Center
1233 Lujiazui Ring Road
Shanghai 200120
China
Tel +86 21 6888 1092
Fax +86 21 5047 1011
United States of America
National Bank of Kuwait SAK
New York Branch
299 Park Avenue 17th Floor
New York NY 10171
USA
Tel +1 212 303 9800
Fax +1 212 319 8269
8122019 NBK Capital MENA InFocus 05December2013
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KUWAIT DUBAI ISTANBUL CAIRO
8122019 NBK Capital MENA InFocus 05December2013
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8122019 NBK Capital MENA InFocus 05December2013
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MENAinFocusDecember 5 2013
nbkcapi ta l com | 9
COMPANIES UNDER COVERAGE (PRICES AS OF NOVEMBER 30 2013)
2012 2013 2014 2012 2013 2014
Banking
Abu Dhabi Commercial Bank UAE AED 534 23-Oct-13 450 Hold 105 100 98 12 11 10
Abu Dhabi Islamic Bank UAE AED 479 29-Oct-13 420 Hold 94 89 83 09 09 08
Arab Na tiona l Bank Saudi Arabia SAR 2990 10-Oct-13 3170 Hold 107 103 98 14 13 12BankMuscat Oman OMR 060 09-Oct-13 064 Hold 95 97 86 12 11 10
Banque Saudi Fr ans i Saudi Ar abia SAR 3330 09-Oct-13 3350 Hold 98 105 95 13 12 11
Commercial International Bank Egypt EGP 4316 21-Oct-13 4980 Buy 120 96 77 25 22 18
Credit Agricole Egypt Egypt EGP 1365 09-Oct-13 1390 Hold 82 60 57 17 14 12
Doha Bank Qatar QAR 5580 22-Oct-13 5230 Hold 112 106 97 19 15 15
First Gulf Bank UAE AED 1700 29-Oct-13 1640 Hold 127 117 110 18 17 16
National Bank of Abu Dhabi UAE AED 1200 24-Oct-13 1140 Hold 122 108 105 16 14 13
Na tiona l Bank o f Oman Om an OMR 030 23-Oct-13 026 Hold 83 89 84 11 10 10
Qatar Islamic Bank Qatar QAR 6980 21-Oct-13 6700 Hold 133 107 93 14 14 13
Qatar National Bank Qatar QAR 17200 09-Oct-13 15680 Hold 142 127 113 25 23 20
Riyad Bank Saudi Arabia SAR 2860 07-Oct-13 3000 Hold 122 115 107 13 13 12
Samba Financial Group Saudi Arabia SAR 4930 08-Oct-13 5800 Hold 102 99 90 14 13 12
Saudi Ho llandi Bank Saudi Ar abia SAR 3790 08-Oct-13 3660 Hold 118 102 92 18 16 14
The Commercial Bank of Qatar Qatar QAR 6880 31-Oct-13 7850 Hold 85 86 79 11 11 11
The Saudi Bri tish Bank Saudi Arabia SAR 4020 08-Oct-13 4140 Hold 123 109 97 20 18 16
Union National Bank UAE AED 494 31-Oct-13 560 Hold 77 75 70 09 08 07
2012 2013 2014 2012 2013 2014
Building Materials
Lecico Egypt EGP 860 26-Nov-13 984 Hold 110 nm 64 52 43 39
Oman Cement Co Oman OMR 079 07-Nov-13 087 Hold 150 152 117 112 111 89
Qatar National Cement Co Qatar QAR 10300 06-Nov-13 10850 Hold 119 113 105 88 86 81
Raysut Cement Co Oman OMR 197 11-Nov-13 133 Sell 160 122 105 126 107 96
Yamama Cement Saudi Arabia SAR 5825 06-Oct-13 5270 Hold 144 134 139 101 99 102
Contractors
Arabtec UAE AED 260 14-Nov-13 200 Sell 293 241 217 157 93 71
DEPA UAE USD 061 04-Sep-13 042 Hold nm 81 96 nm 65 76
Drake and Scull UAE AED 132 14-Nov-13 114 Hold 320 186 139 172 106 85
Consumer Goods and Retail
Abdullah Al Othaim Markets Saudi Arabia SAR 12100 28-Oct-13 14100 Hold 158 134 116 123 105 94
Agthia UAE AED 408 25-Nov-13 450 Hold 196 156 140 135 112 100
Alhokair Saudi Arabia SAR 12250 28-Oct-13 13000 Hold 208 178 142 185 142 114
Almarai Saudi Arabia SAR 5375 27-Oct-13 6700 Buy 224 219 171 181 156 130
GB Auto Egypt EGP 3000 03-Nov-13 3850 Buy 178 205 105 61 62 44
Juhayna Egypt EGP 1245 16-Sep-13 860 Hold 270 225 185 168 146 109
Oriental Weavers Egypt EGP 2932 20-Oct-13 3950 Buy 97 61 45 57 43 38
Savola Saudi Arabia SAR 5900 24-Oct-13 5600 Hold 210 177 156 148 117 112
Petrochemicals and Oil
National Petrochemical Company Saudi Arabia SAR 2495 27-Oct-13 1980 Sell nm nm 141 na 244 95
Saudi Arabian Fertilizer Co Saudi Arabia SAR 15475 20-Oct-13 14360 Hold 133 164 150 108 131 123
Saudi Basic Industries Corp Saudi Arabia SAR 10875 27-Oct-13 10910 Hold 132 124 115 68 65 62
Saudi Industrial Investment Group Saudi Arabia SAR 2990 27-Oct-13 2740 Hold 246 168 119 nm 253 99
Saudi Kayan Petrochemicals Saudi Arabia SAR 1365 20-Oct-13 1040 Sell nm nm 120 244 167 96
Yanbu National Petrochemicals Saudi Arabia SAR 6700 27-Oct-13 6160 Hold 154 127 123 87 78 78
Industries Qatar Qatar QAR 16820 22-Oct-13 16250 Hold 121 124 116 107 109 93
Real Estate
Emaar UAE AED 630 14-Nov-13 688 Hold 181 151 159 180 125 125
Mabanee Kuwait KWD 1140 21-Nov-13 110 Hold 240 153 153 243 137 137
Palm Hills Developments Egypt EGP 251 27-Aug-13 na na na na na na na na
Salhia Real Estate Co Kuwait KWD 0390 27-Nov-13 039 Hold 242 210 211 142 142 147
Sodic Egypt EGP 2166 14-Nov-13 2960 Buy 79 65 53 66 53 39
Talaat Mustafa Group Egypt EGP 560 03-Dec-13 784 Buy 212 205 137 166 134 98
Telecommunications
Batelco Bahrain BHD 031 29-Sep-13 038 Buy 81 80 77 41 33 31
du UAE AED 636 02-Oct-13 390 Sell 147 154 154 72 65 58
Etisalat UAE AED 1150 10-Oct-13 1340 Hold 135 122 113 49 43 42
Mobily Saudi Arabia SAR 8500 09-Jul-13 8710 Hold 109 101 96 84 77 73
Nawras Oman OMR 057 08-Oct-13 058 Hold 100 125 113 42 42 41
Omantel Oman OMR 153 08-Oct-13 171 Hold 99 97 95 49 48 48
Ooredoo Qatar QAR 13640 09-Jul-13 14310 Hold 148 129 107 44 42 41
Saudi Telecom Saudi Arabia SAR 5325 07-Jul-13 4780 Hold 145 121 105 55 67 66
Telecom Egypt Egypt EGP 1331 11-Oct-13 1520 Hold 107 96 97 46 53 53
Vodafone Qatar Qatar QAR 1110 01-Oct-13 960 Hold nm nm nm 716 223 159
Transportation amp Logistics
Air Arabia UAE AED 142 12-Nov-13 105 Sell 158 151 148 127 91 76
Aramex UAE AED 270 29-Oct-13 330 Buy 134 117 99 80 69 61
DP World UAE USD 1609 29-Oct-13 1550 Hold 240 235 200 115 113 103
Jazeera Airways Kuwait KWD 0495 13-Nov-13 0600 Buy 149 120 103 111 96 83Others
El Sewedy Electric Egypt EGP 2772 01-Dec-13 3200 Hold 150 103 98 84 63 60
Maridive Group Egypt USD 103 09-Sep-13 122 Hold 255 430 113 93 112 62
PE EVEBITDA
RecommendationPE PB
Secto r Country Currenc yClosing
Price
Date of Last
Report
12-Month
Fair ValueRecommendation
Secto r Country Currenc yClosing
Price
Date of Last
Report
12-Month
Fair Value
Fiscal year ends in March
8122019 NBK Capital MENA InFocus 05December2013
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MENAinFocusDecember 5 2013
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RISK AND RECOMMENDATION GUIDE
RECOMMENDATION UPSIDE (DOWNSIDE) POTENTIAL
BUY MORE THAN 20
HOLD BETWEEN -15 AND 20
SELL LESS THAN -15
RISK LEVEL
LOW RISK HIGH RISK
1 2 3 4 5
DISCLAIMER
The information opinions tools and materials contained in this report (the ldquoContentrdquo) are not addressed to or intended for publication distribution to or use by
any individual or legal entity who is a citizen or resident of or domiciled in any jurisdiction where such distribution publication availability or use would constitute a
breach of the laws or regulations of such jurisdiction or that would require Watani Investment Company KSCC (ldquoNBK Capitalrdquo) or its parent company its subsidiaries
or its afliates (together ldquoNBK Grouprdquo) to obtain licenses approvals or permissions from the regulatory bodies or authorities of such jurisdiction The Content unless
expressly mentioned otherwise is under copyright to NBK Capital Neither the Content nor any copy of it may be in any way reproduced amended transmitted to copied
or distributed to any other party without the prior express written consent of NBK Capital All trademarks service marks and logos used in this report are trademarks or
service marks or registered trademarks or registered service marks of NBK Capital
The Content is provided to you for information purposes only and is not to be used construed or considered as an offer or the solicitation of an offer to sell or to buy or
to subscribe for any investment (including but not limited to securities or other nancial instruments) No representation or warranty express or implied is given by NBK
Capital or any of its respective directors partners ofcers afliates employees advisors or representatives that the investment referred to in this report is suitable for
you or for any particular investor Receiving this report shall not mean or be interpreted that NBK Capital will treat you as its customer If you are in doubt about suchinvestment we recommend that you consult an independent investment advisor since the investment contained or referred to in this report may not be suitable for you
and NBK Capital makes no representation or warranty in this respect
The Content shall not be considered investment legal accounting or tax advice or a representation that any investment or strategy is suitable or appropriate for your
individual circumstances or otherwise constitutes a personal recommendation to you NBK Capital does not offer advice on the tax consequences of investments and
you are advised to contact an independent tax adviser
The information and opinions contained in this report have been obtained or derived from sources that NBK Capital believes are reliable without being independently
veried as to their accuracy or completeness NBK Capital believes the information and opinions expressed in this report are accurate and complete however NBK
Capital gives no representations or warranty express or implied as to the accuracy or completeness of the Content Additional information may be available upon request
NBK Capital accepts no liability for any direct indirect or consequential loss arising from the use of the Content This report is not to be relied upon as a substitution for
the exercise of independent judgment In addition NBK Capital may have issued and may in the future issue other reports that are inconsistent with and reach different
conclusions from the information presented in this report Those reports reect the different assumptions views and analytical methods of the analysts who prepared
the reports and NBK Capital is under no obligation to ensure that such other reports are brought to your attention NBK Capital may be involved in many businesses that
relate to companies mentioned in this report and may engage with them Past performance should not be taken as an indication or guarantee of future performance and
no representation or warranty express or implied is made regarding future performance Information opinions and estimates contained in this report reect a judgment
at the reportrsquos original date of publication by NBK Capital and are subject to change without notice
The value of any investment or income may fall as well as rise and you may not get back the full amount invested Where an investment is denominated in a currency
other than the local currency of the recipient of the research report changes in the exchange rates may have an adverse effect on the value price or income of that
investment In the case of investments for which there is no recognized market it may be difcult for investors to sell their investments or to obtain reliable information
about their value or the extent of the risk to which they are exposed
NBK Capital has not reviewed the addresses of the hyperlinks to or the websites referred to in the report and takes no responsibility for the content contained therein
Such address or hyperlink (including addresses or hyperlinks to NBK Capitalrsquos own website material) is provided solely for your convenience and information and the
content of the linked site does not in any way form part of this document Accessing such websites or following such links through this report or NBK Capitalrsquos website
shall be at your own risk
NBK Group may have a nancial interest in one or any of the securities that are the subject of this report Funds managed by NBK Group may own the securities that
are the subject of this report NBK Group may own units in one or more of the aforementioned funds
NBK Group may be in the process of soliciting or executing fee-earning mandate or doing business for companies that are either the subject of this report or are
mentioned in this report As a result you should be aware that NBK Group may have material conict of interest that could affect the objectivity of this report
copy COPYRIGHT NOTICE
This is a publication of NBK Capital No part of this publication may be reproduced or duplicated without the prior consent of NBK Capital
8122019 NBK Capital MENA InFocus 05December2013
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MENAinFocusDecember 5 2013
nbkcapi ta l com | 11
NATIONAL BANK OF KUWAIT
Kuwait
Head Ofce
38th Floor Arraya II
Al Shuhada Street Block 6 Sharq
POBox 4950 Safat 13050
Kuwait
T +965 2224 6900
F +965 2224 6905
MENA Research
35th Floor Arraya II
Al Shuhada Street Block 6 Sharq
POBox 4950 Safat 13050 Kuwait
T +965 2224 6663
F +965 2224 6905
E menaresearchnbkcapitalcomkw
Brokerage
37th Floor Arraya II
Al Shuhada Street Block 6 Sharq
POBox 4950 Safat 13050 Kuwait
T +965 2224 6964
F +965 2224 6978
E brokeragenbkcapitalcom
United Arab Emirates
NBK Capital Limited
Precinct Building 3 Ofce 404
Dubai International Financial Center
Sheikh Zayed Road POBox 506506
Dubai UAE
T +971 4 365 2800
F +971 4 365 2805
Turkey
NBK Capital
Arastima ve Musavirlik AS
Sun Plaza 30th Floor
Dereboyu Sk No24
Maslak 34398 Istanbul Turkey
T +90 212 276 5400
F +90 212 276 5401
Egypt
NBK Capital Securities
Egypt SAE
20 Aisha EL Taymouria St
Garden City
Cairo Egypt
T +202 2798 5900
F +202 2798 5905
NBK CAPITAL
Kuwait
National Bank of Kuwait SAK
Abdullah Al-Ahmed Street
PO Box 95 Safat 13001
Kuwait City Kuwait
T +965 2242 2011F +965 2243 1888
Telex 22043-22451 NATBANK
INTERNATIONAL NETWORK
Bahrain
National Bank of Kuwait SAK
Bahrain Branch
GB Corp Tower Block 346
Road 4626 Building 1411
POBox 5290 Manama
Kingdom of Bahrain
Tel +973 17 155 555
Fax +973 17 104 860
Saudi Arabia
National Bank of Kuwait SAK
Jeddah Branch
Al-Khalidiah Distric
Al-Mukmal Tower POBox 15385
Jeddah 21444 Saudi Arabia
Tel +966 2 603 6300
Fax +966 2 603 6318
United Arab Emirates
National Bank of Kuwait SAK
Dubai Branch
Sheikh Rashed Road Port Saeed Area
ACICO Business Park
POBox 88867 Dubai UAE
Tel +971 4 2929 222
Fax +971 4 2943 337
Jordan
National Bank of Kuwait SAK
Head Ofce
Al Hajj Mohd Abdul Rahim Street
Hijazi Plaza Building 70
POBox 941297Amman ndash 11194 Jordan
Tel +962 6 580 0400
Fax +962 6 580 0441
Lebanon
National Bank of Kuwait
(Lebanon) SAL
Sanayeh Head Ofce
BAC Building Justinien Street
POBox 11-5727 Riad El-Solh
1107 2200 Beirut Lebanon
Tel +961 1 759 700
Fax +961 1 747 866
Iraq
Credit Bank of Iraq
Street 9 Building 187
Sadoun Street District 102
POBox 3420
Baghdad Iraq
Tel +964 1 71821987191944
+964 1 71884067171673
Fax +964 1 7170156
Qatar
International Bank of Qatar
QSC (Associated Company)
Suhaim Bin Hamad Street
POBox 2001
Doha Qatar
Tel +974 4447 8000
Fax +974 4447 3710
Egypt
Al Watany Bank of Egypt
13 Al Themar Street
Gameat Al Dowal AlArabia
Fouad Mohie El Din Square
Mohandessin GizaTel +202 333 888 1617
Fax +202 333 79302
United Kingdom
National Bank of Kuwait
(International) PLC
Head Ofce
13 George street
London W1U 3QJ UK
Tel +44 20 7224 2277
Fax +44 20 7224 2101
France
National Bank of Kuwait
(International) PLC
Paris Branch
90 Avenue des Champs-Elysees
75008 Paris France
Tel +33 1 5659 8600
Fax +33 1 5659 8623
Turkey
Turkish Bank
Head Ofce
Valikonagi Avenue No 1
POBox 34371 Nisantasi
Istanbul
Tel +90 212 373 6373
Fax +90 212 225 0353
Singapore
National Bank of Kuwait SAK
Singapore Branch
9 Rafes Place 24-02
Republic Plaza
Singapore 048619Tel +65 6222 5348
Fax +65 6224 5438
China
National Bank of Kuwait SAK
Shanghai Representative Ofce
Suite 1003 10th oor
Azia Center
1233 Lujiazui Ring Road
Shanghai 200120
China
Tel +86 21 6888 1092
Fax +86 21 5047 1011
United States of America
National Bank of Kuwait SAK
New York Branch
299 Park Avenue 17th Floor
New York NY 10171
USA
Tel +1 212 303 9800
Fax +1 212 319 8269
8122019 NBK Capital MENA InFocus 05December2013
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KUWAIT DUBAI ISTANBUL CAIRO
8122019 NBK Capital MENA InFocus 05December2013
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MENAinFocusDecember 5 2013
nbkcapi ta l com | 9
COMPANIES UNDER COVERAGE (PRICES AS OF NOVEMBER 30 2013)
2012 2013 2014 2012 2013 2014
Banking
Abu Dhabi Commercial Bank UAE AED 534 23-Oct-13 450 Hold 105 100 98 12 11 10
Abu Dhabi Islamic Bank UAE AED 479 29-Oct-13 420 Hold 94 89 83 09 09 08
Arab Na tiona l Bank Saudi Arabia SAR 2990 10-Oct-13 3170 Hold 107 103 98 14 13 12BankMuscat Oman OMR 060 09-Oct-13 064 Hold 95 97 86 12 11 10
Banque Saudi Fr ans i Saudi Ar abia SAR 3330 09-Oct-13 3350 Hold 98 105 95 13 12 11
Commercial International Bank Egypt EGP 4316 21-Oct-13 4980 Buy 120 96 77 25 22 18
Credit Agricole Egypt Egypt EGP 1365 09-Oct-13 1390 Hold 82 60 57 17 14 12
Doha Bank Qatar QAR 5580 22-Oct-13 5230 Hold 112 106 97 19 15 15
First Gulf Bank UAE AED 1700 29-Oct-13 1640 Hold 127 117 110 18 17 16
National Bank of Abu Dhabi UAE AED 1200 24-Oct-13 1140 Hold 122 108 105 16 14 13
Na tiona l Bank o f Oman Om an OMR 030 23-Oct-13 026 Hold 83 89 84 11 10 10
Qatar Islamic Bank Qatar QAR 6980 21-Oct-13 6700 Hold 133 107 93 14 14 13
Qatar National Bank Qatar QAR 17200 09-Oct-13 15680 Hold 142 127 113 25 23 20
Riyad Bank Saudi Arabia SAR 2860 07-Oct-13 3000 Hold 122 115 107 13 13 12
Samba Financial Group Saudi Arabia SAR 4930 08-Oct-13 5800 Hold 102 99 90 14 13 12
Saudi Ho llandi Bank Saudi Ar abia SAR 3790 08-Oct-13 3660 Hold 118 102 92 18 16 14
The Commercial Bank of Qatar Qatar QAR 6880 31-Oct-13 7850 Hold 85 86 79 11 11 11
The Saudi Bri tish Bank Saudi Arabia SAR 4020 08-Oct-13 4140 Hold 123 109 97 20 18 16
Union National Bank UAE AED 494 31-Oct-13 560 Hold 77 75 70 09 08 07
2012 2013 2014 2012 2013 2014
Building Materials
Lecico Egypt EGP 860 26-Nov-13 984 Hold 110 nm 64 52 43 39
Oman Cement Co Oman OMR 079 07-Nov-13 087 Hold 150 152 117 112 111 89
Qatar National Cement Co Qatar QAR 10300 06-Nov-13 10850 Hold 119 113 105 88 86 81
Raysut Cement Co Oman OMR 197 11-Nov-13 133 Sell 160 122 105 126 107 96
Yamama Cement Saudi Arabia SAR 5825 06-Oct-13 5270 Hold 144 134 139 101 99 102
Contractors
Arabtec UAE AED 260 14-Nov-13 200 Sell 293 241 217 157 93 71
DEPA UAE USD 061 04-Sep-13 042 Hold nm 81 96 nm 65 76
Drake and Scull UAE AED 132 14-Nov-13 114 Hold 320 186 139 172 106 85
Consumer Goods and Retail
Abdullah Al Othaim Markets Saudi Arabia SAR 12100 28-Oct-13 14100 Hold 158 134 116 123 105 94
Agthia UAE AED 408 25-Nov-13 450 Hold 196 156 140 135 112 100
Alhokair Saudi Arabia SAR 12250 28-Oct-13 13000 Hold 208 178 142 185 142 114
Almarai Saudi Arabia SAR 5375 27-Oct-13 6700 Buy 224 219 171 181 156 130
GB Auto Egypt EGP 3000 03-Nov-13 3850 Buy 178 205 105 61 62 44
Juhayna Egypt EGP 1245 16-Sep-13 860 Hold 270 225 185 168 146 109
Oriental Weavers Egypt EGP 2932 20-Oct-13 3950 Buy 97 61 45 57 43 38
Savola Saudi Arabia SAR 5900 24-Oct-13 5600 Hold 210 177 156 148 117 112
Petrochemicals and Oil
National Petrochemical Company Saudi Arabia SAR 2495 27-Oct-13 1980 Sell nm nm 141 na 244 95
Saudi Arabian Fertilizer Co Saudi Arabia SAR 15475 20-Oct-13 14360 Hold 133 164 150 108 131 123
Saudi Basic Industries Corp Saudi Arabia SAR 10875 27-Oct-13 10910 Hold 132 124 115 68 65 62
Saudi Industrial Investment Group Saudi Arabia SAR 2990 27-Oct-13 2740 Hold 246 168 119 nm 253 99
Saudi Kayan Petrochemicals Saudi Arabia SAR 1365 20-Oct-13 1040 Sell nm nm 120 244 167 96
Yanbu National Petrochemicals Saudi Arabia SAR 6700 27-Oct-13 6160 Hold 154 127 123 87 78 78
Industries Qatar Qatar QAR 16820 22-Oct-13 16250 Hold 121 124 116 107 109 93
Real Estate
Emaar UAE AED 630 14-Nov-13 688 Hold 181 151 159 180 125 125
Mabanee Kuwait KWD 1140 21-Nov-13 110 Hold 240 153 153 243 137 137
Palm Hills Developments Egypt EGP 251 27-Aug-13 na na na na na na na na
Salhia Real Estate Co Kuwait KWD 0390 27-Nov-13 039 Hold 242 210 211 142 142 147
Sodic Egypt EGP 2166 14-Nov-13 2960 Buy 79 65 53 66 53 39
Talaat Mustafa Group Egypt EGP 560 03-Dec-13 784 Buy 212 205 137 166 134 98
Telecommunications
Batelco Bahrain BHD 031 29-Sep-13 038 Buy 81 80 77 41 33 31
du UAE AED 636 02-Oct-13 390 Sell 147 154 154 72 65 58
Etisalat UAE AED 1150 10-Oct-13 1340 Hold 135 122 113 49 43 42
Mobily Saudi Arabia SAR 8500 09-Jul-13 8710 Hold 109 101 96 84 77 73
Nawras Oman OMR 057 08-Oct-13 058 Hold 100 125 113 42 42 41
Omantel Oman OMR 153 08-Oct-13 171 Hold 99 97 95 49 48 48
Ooredoo Qatar QAR 13640 09-Jul-13 14310 Hold 148 129 107 44 42 41
Saudi Telecom Saudi Arabia SAR 5325 07-Jul-13 4780 Hold 145 121 105 55 67 66
Telecom Egypt Egypt EGP 1331 11-Oct-13 1520 Hold 107 96 97 46 53 53
Vodafone Qatar Qatar QAR 1110 01-Oct-13 960 Hold nm nm nm 716 223 159
Transportation amp Logistics
Air Arabia UAE AED 142 12-Nov-13 105 Sell 158 151 148 127 91 76
Aramex UAE AED 270 29-Oct-13 330 Buy 134 117 99 80 69 61
DP World UAE USD 1609 29-Oct-13 1550 Hold 240 235 200 115 113 103
Jazeera Airways Kuwait KWD 0495 13-Nov-13 0600 Buy 149 120 103 111 96 83Others
El Sewedy Electric Egypt EGP 2772 01-Dec-13 3200 Hold 150 103 98 84 63 60
Maridive Group Egypt USD 103 09-Sep-13 122 Hold 255 430 113 93 112 62
PE EVEBITDA
RecommendationPE PB
Secto r Country Currenc yClosing
Price
Date of Last
Report
12-Month
Fair ValueRecommendation
Secto r Country Currenc yClosing
Price
Date of Last
Report
12-Month
Fair Value
Fiscal year ends in March
8122019 NBK Capital MENA InFocus 05December2013
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MENAinFocusDecember 5 2013
nbkcapi ta l com | 10
RISK AND RECOMMENDATION GUIDE
RECOMMENDATION UPSIDE (DOWNSIDE) POTENTIAL
BUY MORE THAN 20
HOLD BETWEEN -15 AND 20
SELL LESS THAN -15
RISK LEVEL
LOW RISK HIGH RISK
1 2 3 4 5
DISCLAIMER
The information opinions tools and materials contained in this report (the ldquoContentrdquo) are not addressed to or intended for publication distribution to or use by
any individual or legal entity who is a citizen or resident of or domiciled in any jurisdiction where such distribution publication availability or use would constitute a
breach of the laws or regulations of such jurisdiction or that would require Watani Investment Company KSCC (ldquoNBK Capitalrdquo) or its parent company its subsidiaries
or its afliates (together ldquoNBK Grouprdquo) to obtain licenses approvals or permissions from the regulatory bodies or authorities of such jurisdiction The Content unless
expressly mentioned otherwise is under copyright to NBK Capital Neither the Content nor any copy of it may be in any way reproduced amended transmitted to copied
or distributed to any other party without the prior express written consent of NBK Capital All trademarks service marks and logos used in this report are trademarks or
service marks or registered trademarks or registered service marks of NBK Capital
The Content is provided to you for information purposes only and is not to be used construed or considered as an offer or the solicitation of an offer to sell or to buy or
to subscribe for any investment (including but not limited to securities or other nancial instruments) No representation or warranty express or implied is given by NBK
Capital or any of its respective directors partners ofcers afliates employees advisors or representatives that the investment referred to in this report is suitable for
you or for any particular investor Receiving this report shall not mean or be interpreted that NBK Capital will treat you as its customer If you are in doubt about suchinvestment we recommend that you consult an independent investment advisor since the investment contained or referred to in this report may not be suitable for you
and NBK Capital makes no representation or warranty in this respect
The Content shall not be considered investment legal accounting or tax advice or a representation that any investment or strategy is suitable or appropriate for your
individual circumstances or otherwise constitutes a personal recommendation to you NBK Capital does not offer advice on the tax consequences of investments and
you are advised to contact an independent tax adviser
The information and opinions contained in this report have been obtained or derived from sources that NBK Capital believes are reliable without being independently
veried as to their accuracy or completeness NBK Capital believes the information and opinions expressed in this report are accurate and complete however NBK
Capital gives no representations or warranty express or implied as to the accuracy or completeness of the Content Additional information may be available upon request
NBK Capital accepts no liability for any direct indirect or consequential loss arising from the use of the Content This report is not to be relied upon as a substitution for
the exercise of independent judgment In addition NBK Capital may have issued and may in the future issue other reports that are inconsistent with and reach different
conclusions from the information presented in this report Those reports reect the different assumptions views and analytical methods of the analysts who prepared
the reports and NBK Capital is under no obligation to ensure that such other reports are brought to your attention NBK Capital may be involved in many businesses that
relate to companies mentioned in this report and may engage with them Past performance should not be taken as an indication or guarantee of future performance and
no representation or warranty express or implied is made regarding future performance Information opinions and estimates contained in this report reect a judgment
at the reportrsquos original date of publication by NBK Capital and are subject to change without notice
The value of any investment or income may fall as well as rise and you may not get back the full amount invested Where an investment is denominated in a currency
other than the local currency of the recipient of the research report changes in the exchange rates may have an adverse effect on the value price or income of that
investment In the case of investments for which there is no recognized market it may be difcult for investors to sell their investments or to obtain reliable information
about their value or the extent of the risk to which they are exposed
NBK Capital has not reviewed the addresses of the hyperlinks to or the websites referred to in the report and takes no responsibility for the content contained therein
Such address or hyperlink (including addresses or hyperlinks to NBK Capitalrsquos own website material) is provided solely for your convenience and information and the
content of the linked site does not in any way form part of this document Accessing such websites or following such links through this report or NBK Capitalrsquos website
shall be at your own risk
NBK Group may have a nancial interest in one or any of the securities that are the subject of this report Funds managed by NBK Group may own the securities that
are the subject of this report NBK Group may own units in one or more of the aforementioned funds
NBK Group may be in the process of soliciting or executing fee-earning mandate or doing business for companies that are either the subject of this report or are
mentioned in this report As a result you should be aware that NBK Group may have material conict of interest that could affect the objectivity of this report
copy COPYRIGHT NOTICE
This is a publication of NBK Capital No part of this publication may be reproduced or duplicated without the prior consent of NBK Capital
8122019 NBK Capital MENA InFocus 05December2013
httpslidepdfcomreaderfullnbk-capital-mena-infocus-05december2013 1112
MENAinFocusDecember 5 2013
nbkcapi ta l com | 11
NATIONAL BANK OF KUWAIT
Kuwait
Head Ofce
38th Floor Arraya II
Al Shuhada Street Block 6 Sharq
POBox 4950 Safat 13050
Kuwait
T +965 2224 6900
F +965 2224 6905
MENA Research
35th Floor Arraya II
Al Shuhada Street Block 6 Sharq
POBox 4950 Safat 13050 Kuwait
T +965 2224 6663
F +965 2224 6905
E menaresearchnbkcapitalcomkw
Brokerage
37th Floor Arraya II
Al Shuhada Street Block 6 Sharq
POBox 4950 Safat 13050 Kuwait
T +965 2224 6964
F +965 2224 6978
E brokeragenbkcapitalcom
United Arab Emirates
NBK Capital Limited
Precinct Building 3 Ofce 404
Dubai International Financial Center
Sheikh Zayed Road POBox 506506
Dubai UAE
T +971 4 365 2800
F +971 4 365 2805
Turkey
NBK Capital
Arastima ve Musavirlik AS
Sun Plaza 30th Floor
Dereboyu Sk No24
Maslak 34398 Istanbul Turkey
T +90 212 276 5400
F +90 212 276 5401
Egypt
NBK Capital Securities
Egypt SAE
20 Aisha EL Taymouria St
Garden City
Cairo Egypt
T +202 2798 5900
F +202 2798 5905
NBK CAPITAL
Kuwait
National Bank of Kuwait SAK
Abdullah Al-Ahmed Street
PO Box 95 Safat 13001
Kuwait City Kuwait
T +965 2242 2011F +965 2243 1888
Telex 22043-22451 NATBANK
INTERNATIONAL NETWORK
Bahrain
National Bank of Kuwait SAK
Bahrain Branch
GB Corp Tower Block 346
Road 4626 Building 1411
POBox 5290 Manama
Kingdom of Bahrain
Tel +973 17 155 555
Fax +973 17 104 860
Saudi Arabia
National Bank of Kuwait SAK
Jeddah Branch
Al-Khalidiah Distric
Al-Mukmal Tower POBox 15385
Jeddah 21444 Saudi Arabia
Tel +966 2 603 6300
Fax +966 2 603 6318
United Arab Emirates
National Bank of Kuwait SAK
Dubai Branch
Sheikh Rashed Road Port Saeed Area
ACICO Business Park
POBox 88867 Dubai UAE
Tel +971 4 2929 222
Fax +971 4 2943 337
Jordan
National Bank of Kuwait SAK
Head Ofce
Al Hajj Mohd Abdul Rahim Street
Hijazi Plaza Building 70
POBox 941297Amman ndash 11194 Jordan
Tel +962 6 580 0400
Fax +962 6 580 0441
Lebanon
National Bank of Kuwait
(Lebanon) SAL
Sanayeh Head Ofce
BAC Building Justinien Street
POBox 11-5727 Riad El-Solh
1107 2200 Beirut Lebanon
Tel +961 1 759 700
Fax +961 1 747 866
Iraq
Credit Bank of Iraq
Street 9 Building 187
Sadoun Street District 102
POBox 3420
Baghdad Iraq
Tel +964 1 71821987191944
+964 1 71884067171673
Fax +964 1 7170156
Qatar
International Bank of Qatar
QSC (Associated Company)
Suhaim Bin Hamad Street
POBox 2001
Doha Qatar
Tel +974 4447 8000
Fax +974 4447 3710
Egypt
Al Watany Bank of Egypt
13 Al Themar Street
Gameat Al Dowal AlArabia
Fouad Mohie El Din Square
Mohandessin GizaTel +202 333 888 1617
Fax +202 333 79302
United Kingdom
National Bank of Kuwait
(International) PLC
Head Ofce
13 George street
London W1U 3QJ UK
Tel +44 20 7224 2277
Fax +44 20 7224 2101
France
National Bank of Kuwait
(International) PLC
Paris Branch
90 Avenue des Champs-Elysees
75008 Paris France
Tel +33 1 5659 8600
Fax +33 1 5659 8623
Turkey
Turkish Bank
Head Ofce
Valikonagi Avenue No 1
POBox 34371 Nisantasi
Istanbul
Tel +90 212 373 6373
Fax +90 212 225 0353
Singapore
National Bank of Kuwait SAK
Singapore Branch
9 Rafes Place 24-02
Republic Plaza
Singapore 048619Tel +65 6222 5348
Fax +65 6224 5438
China
National Bank of Kuwait SAK
Shanghai Representative Ofce
Suite 1003 10th oor
Azia Center
1233 Lujiazui Ring Road
Shanghai 200120
China
Tel +86 21 6888 1092
Fax +86 21 5047 1011
United States of America
National Bank of Kuwait SAK
New York Branch
299 Park Avenue 17th Floor
New York NY 10171
USA
Tel +1 212 303 9800
Fax +1 212 319 8269
8122019 NBK Capital MENA InFocus 05December2013
httpslidepdfcomreaderfullnbk-capital-mena-infocus-05december2013 1212
KUWAIT DUBAI ISTANBUL CAIRO
8122019 NBK Capital MENA InFocus 05December2013
httpslidepdfcomreaderfullnbk-capital-mena-infocus-05december2013 1012
MENAinFocusDecember 5 2013
nbkcapi ta l com | 10
RISK AND RECOMMENDATION GUIDE
RECOMMENDATION UPSIDE (DOWNSIDE) POTENTIAL
BUY MORE THAN 20
HOLD BETWEEN -15 AND 20
SELL LESS THAN -15
RISK LEVEL
LOW RISK HIGH RISK
1 2 3 4 5
DISCLAIMER
The information opinions tools and materials contained in this report (the ldquoContentrdquo) are not addressed to or intended for publication distribution to or use by
any individual or legal entity who is a citizen or resident of or domiciled in any jurisdiction where such distribution publication availability or use would constitute a
breach of the laws or regulations of such jurisdiction or that would require Watani Investment Company KSCC (ldquoNBK Capitalrdquo) or its parent company its subsidiaries
or its afliates (together ldquoNBK Grouprdquo) to obtain licenses approvals or permissions from the regulatory bodies or authorities of such jurisdiction The Content unless
expressly mentioned otherwise is under copyright to NBK Capital Neither the Content nor any copy of it may be in any way reproduced amended transmitted to copied
or distributed to any other party without the prior express written consent of NBK Capital All trademarks service marks and logos used in this report are trademarks or
service marks or registered trademarks or registered service marks of NBK Capital
The Content is provided to you for information purposes only and is not to be used construed or considered as an offer or the solicitation of an offer to sell or to buy or
to subscribe for any investment (including but not limited to securities or other nancial instruments) No representation or warranty express or implied is given by NBK
Capital or any of its respective directors partners ofcers afliates employees advisors or representatives that the investment referred to in this report is suitable for
you or for any particular investor Receiving this report shall not mean or be interpreted that NBK Capital will treat you as its customer If you are in doubt about suchinvestment we recommend that you consult an independent investment advisor since the investment contained or referred to in this report may not be suitable for you
and NBK Capital makes no representation or warranty in this respect
The Content shall not be considered investment legal accounting or tax advice or a representation that any investment or strategy is suitable or appropriate for your
individual circumstances or otherwise constitutes a personal recommendation to you NBK Capital does not offer advice on the tax consequences of investments and
you are advised to contact an independent tax adviser
The information and opinions contained in this report have been obtained or derived from sources that NBK Capital believes are reliable without being independently
veried as to their accuracy or completeness NBK Capital believes the information and opinions expressed in this report are accurate and complete however NBK
Capital gives no representations or warranty express or implied as to the accuracy or completeness of the Content Additional information may be available upon request
NBK Capital accepts no liability for any direct indirect or consequential loss arising from the use of the Content This report is not to be relied upon as a substitution for
the exercise of independent judgment In addition NBK Capital may have issued and may in the future issue other reports that are inconsistent with and reach different
conclusions from the information presented in this report Those reports reect the different assumptions views and analytical methods of the analysts who prepared
the reports and NBK Capital is under no obligation to ensure that such other reports are brought to your attention NBK Capital may be involved in many businesses that
relate to companies mentioned in this report and may engage with them Past performance should not be taken as an indication or guarantee of future performance and
no representation or warranty express or implied is made regarding future performance Information opinions and estimates contained in this report reect a judgment
at the reportrsquos original date of publication by NBK Capital and are subject to change without notice
The value of any investment or income may fall as well as rise and you may not get back the full amount invested Where an investment is denominated in a currency
other than the local currency of the recipient of the research report changes in the exchange rates may have an adverse effect on the value price or income of that
investment In the case of investments for which there is no recognized market it may be difcult for investors to sell their investments or to obtain reliable information
about their value or the extent of the risk to which they are exposed
NBK Capital has not reviewed the addresses of the hyperlinks to or the websites referred to in the report and takes no responsibility for the content contained therein
Such address or hyperlink (including addresses or hyperlinks to NBK Capitalrsquos own website material) is provided solely for your convenience and information and the
content of the linked site does not in any way form part of this document Accessing such websites or following such links through this report or NBK Capitalrsquos website
shall be at your own risk
NBK Group may have a nancial interest in one or any of the securities that are the subject of this report Funds managed by NBK Group may own the securities that
are the subject of this report NBK Group may own units in one or more of the aforementioned funds
NBK Group may be in the process of soliciting or executing fee-earning mandate or doing business for companies that are either the subject of this report or are
mentioned in this report As a result you should be aware that NBK Group may have material conict of interest that could affect the objectivity of this report
copy COPYRIGHT NOTICE
This is a publication of NBK Capital No part of this publication may be reproduced or duplicated without the prior consent of NBK Capital
8122019 NBK Capital MENA InFocus 05December2013
httpslidepdfcomreaderfullnbk-capital-mena-infocus-05december2013 1112
MENAinFocusDecember 5 2013
nbkcapi ta l com | 11
NATIONAL BANK OF KUWAIT
Kuwait
Head Ofce
38th Floor Arraya II
Al Shuhada Street Block 6 Sharq
POBox 4950 Safat 13050
Kuwait
T +965 2224 6900
F +965 2224 6905
MENA Research
35th Floor Arraya II
Al Shuhada Street Block 6 Sharq
POBox 4950 Safat 13050 Kuwait
T +965 2224 6663
F +965 2224 6905
E menaresearchnbkcapitalcomkw
Brokerage
37th Floor Arraya II
Al Shuhada Street Block 6 Sharq
POBox 4950 Safat 13050 Kuwait
T +965 2224 6964
F +965 2224 6978
E brokeragenbkcapitalcom
United Arab Emirates
NBK Capital Limited
Precinct Building 3 Ofce 404
Dubai International Financial Center
Sheikh Zayed Road POBox 506506
Dubai UAE
T +971 4 365 2800
F +971 4 365 2805
Turkey
NBK Capital
Arastima ve Musavirlik AS
Sun Plaza 30th Floor
Dereboyu Sk No24
Maslak 34398 Istanbul Turkey
T +90 212 276 5400
F +90 212 276 5401
Egypt
NBK Capital Securities
Egypt SAE
20 Aisha EL Taymouria St
Garden City
Cairo Egypt
T +202 2798 5900
F +202 2798 5905
NBK CAPITAL
Kuwait
National Bank of Kuwait SAK
Abdullah Al-Ahmed Street
PO Box 95 Safat 13001
Kuwait City Kuwait
T +965 2242 2011F +965 2243 1888
Telex 22043-22451 NATBANK
INTERNATIONAL NETWORK
Bahrain
National Bank of Kuwait SAK
Bahrain Branch
GB Corp Tower Block 346
Road 4626 Building 1411
POBox 5290 Manama
Kingdom of Bahrain
Tel +973 17 155 555
Fax +973 17 104 860
Saudi Arabia
National Bank of Kuwait SAK
Jeddah Branch
Al-Khalidiah Distric
Al-Mukmal Tower POBox 15385
Jeddah 21444 Saudi Arabia
Tel +966 2 603 6300
Fax +966 2 603 6318
United Arab Emirates
National Bank of Kuwait SAK
Dubai Branch
Sheikh Rashed Road Port Saeed Area
ACICO Business Park
POBox 88867 Dubai UAE
Tel +971 4 2929 222
Fax +971 4 2943 337
Jordan
National Bank of Kuwait SAK
Head Ofce
Al Hajj Mohd Abdul Rahim Street
Hijazi Plaza Building 70
POBox 941297Amman ndash 11194 Jordan
Tel +962 6 580 0400
Fax +962 6 580 0441
Lebanon
National Bank of Kuwait
(Lebanon) SAL
Sanayeh Head Ofce
BAC Building Justinien Street
POBox 11-5727 Riad El-Solh
1107 2200 Beirut Lebanon
Tel +961 1 759 700
Fax +961 1 747 866
Iraq
Credit Bank of Iraq
Street 9 Building 187
Sadoun Street District 102
POBox 3420
Baghdad Iraq
Tel +964 1 71821987191944
+964 1 71884067171673
Fax +964 1 7170156
Qatar
International Bank of Qatar
QSC (Associated Company)
Suhaim Bin Hamad Street
POBox 2001
Doha Qatar
Tel +974 4447 8000
Fax +974 4447 3710
Egypt
Al Watany Bank of Egypt
13 Al Themar Street
Gameat Al Dowal AlArabia
Fouad Mohie El Din Square
Mohandessin GizaTel +202 333 888 1617
Fax +202 333 79302
United Kingdom
National Bank of Kuwait
(International) PLC
Head Ofce
13 George street
London W1U 3QJ UK
Tel +44 20 7224 2277
Fax +44 20 7224 2101
France
National Bank of Kuwait
(International) PLC
Paris Branch
90 Avenue des Champs-Elysees
75008 Paris France
Tel +33 1 5659 8600
Fax +33 1 5659 8623
Turkey
Turkish Bank
Head Ofce
Valikonagi Avenue No 1
POBox 34371 Nisantasi
Istanbul
Tel +90 212 373 6373
Fax +90 212 225 0353
Singapore
National Bank of Kuwait SAK
Singapore Branch
9 Rafes Place 24-02
Republic Plaza
Singapore 048619Tel +65 6222 5348
Fax +65 6224 5438
China
National Bank of Kuwait SAK
Shanghai Representative Ofce
Suite 1003 10th oor
Azia Center
1233 Lujiazui Ring Road
Shanghai 200120
China
Tel +86 21 6888 1092
Fax +86 21 5047 1011
United States of America
National Bank of Kuwait SAK
New York Branch
299 Park Avenue 17th Floor
New York NY 10171
USA
Tel +1 212 303 9800
Fax +1 212 319 8269
8122019 NBK Capital MENA InFocus 05December2013
httpslidepdfcomreaderfullnbk-capital-mena-infocus-05december2013 1212
KUWAIT DUBAI ISTANBUL CAIRO
8122019 NBK Capital MENA InFocus 05December2013
httpslidepdfcomreaderfullnbk-capital-mena-infocus-05december2013 1112
MENAinFocusDecember 5 2013
nbkcapi ta l com | 11
NATIONAL BANK OF KUWAIT
Kuwait
Head Ofce
38th Floor Arraya II
Al Shuhada Street Block 6 Sharq
POBox 4950 Safat 13050
Kuwait
T +965 2224 6900
F +965 2224 6905
MENA Research
35th Floor Arraya II
Al Shuhada Street Block 6 Sharq
POBox 4950 Safat 13050 Kuwait
T +965 2224 6663
F +965 2224 6905
E menaresearchnbkcapitalcomkw
Brokerage
37th Floor Arraya II
Al Shuhada Street Block 6 Sharq
POBox 4950 Safat 13050 Kuwait
T +965 2224 6964
F +965 2224 6978
E brokeragenbkcapitalcom
United Arab Emirates
NBK Capital Limited
Precinct Building 3 Ofce 404
Dubai International Financial Center
Sheikh Zayed Road POBox 506506
Dubai UAE
T +971 4 365 2800
F +971 4 365 2805
Turkey
NBK Capital
Arastima ve Musavirlik AS
Sun Plaza 30th Floor
Dereboyu Sk No24
Maslak 34398 Istanbul Turkey
T +90 212 276 5400
F +90 212 276 5401
Egypt
NBK Capital Securities
Egypt SAE
20 Aisha EL Taymouria St
Garden City
Cairo Egypt
T +202 2798 5900
F +202 2798 5905
NBK CAPITAL
Kuwait
National Bank of Kuwait SAK
Abdullah Al-Ahmed Street
PO Box 95 Safat 13001
Kuwait City Kuwait
T +965 2242 2011F +965 2243 1888
Telex 22043-22451 NATBANK
INTERNATIONAL NETWORK
Bahrain
National Bank of Kuwait SAK
Bahrain Branch
GB Corp Tower Block 346
Road 4626 Building 1411
POBox 5290 Manama
Kingdom of Bahrain
Tel +973 17 155 555
Fax +973 17 104 860
Saudi Arabia
National Bank of Kuwait SAK
Jeddah Branch
Al-Khalidiah Distric
Al-Mukmal Tower POBox 15385
Jeddah 21444 Saudi Arabia
Tel +966 2 603 6300
Fax +966 2 603 6318
United Arab Emirates
National Bank of Kuwait SAK
Dubai Branch
Sheikh Rashed Road Port Saeed Area
ACICO Business Park
POBox 88867 Dubai UAE
Tel +971 4 2929 222
Fax +971 4 2943 337
Jordan
National Bank of Kuwait SAK
Head Ofce
Al Hajj Mohd Abdul Rahim Street
Hijazi Plaza Building 70
POBox 941297Amman ndash 11194 Jordan
Tel +962 6 580 0400
Fax +962 6 580 0441
Lebanon
National Bank of Kuwait
(Lebanon) SAL
Sanayeh Head Ofce
BAC Building Justinien Street
POBox 11-5727 Riad El-Solh
1107 2200 Beirut Lebanon
Tel +961 1 759 700
Fax +961 1 747 866
Iraq
Credit Bank of Iraq
Street 9 Building 187
Sadoun Street District 102
POBox 3420
Baghdad Iraq
Tel +964 1 71821987191944
+964 1 71884067171673
Fax +964 1 7170156
Qatar
International Bank of Qatar
QSC (Associated Company)
Suhaim Bin Hamad Street
POBox 2001
Doha Qatar
Tel +974 4447 8000
Fax +974 4447 3710
Egypt
Al Watany Bank of Egypt
13 Al Themar Street
Gameat Al Dowal AlArabia
Fouad Mohie El Din Square
Mohandessin GizaTel +202 333 888 1617
Fax +202 333 79302
United Kingdom
National Bank of Kuwait
(International) PLC
Head Ofce
13 George street
London W1U 3QJ UK
Tel +44 20 7224 2277
Fax +44 20 7224 2101
France
National Bank of Kuwait
(International) PLC
Paris Branch
90 Avenue des Champs-Elysees
75008 Paris France
Tel +33 1 5659 8600
Fax +33 1 5659 8623
Turkey
Turkish Bank
Head Ofce
Valikonagi Avenue No 1
POBox 34371 Nisantasi
Istanbul
Tel +90 212 373 6373
Fax +90 212 225 0353
Singapore
National Bank of Kuwait SAK
Singapore Branch
9 Rafes Place 24-02
Republic Plaza
Singapore 048619Tel +65 6222 5348
Fax +65 6224 5438
China
National Bank of Kuwait SAK
Shanghai Representative Ofce
Suite 1003 10th oor
Azia Center
1233 Lujiazui Ring Road
Shanghai 200120
China
Tel +86 21 6888 1092
Fax +86 21 5047 1011
United States of America
National Bank of Kuwait SAK
New York Branch
299 Park Avenue 17th Floor
New York NY 10171
USA
Tel +1 212 303 9800
Fax +1 212 319 8269
8122019 NBK Capital MENA InFocus 05December2013
httpslidepdfcomreaderfullnbk-capital-mena-infocus-05december2013 1212
KUWAIT DUBAI ISTANBUL CAIRO
8122019 NBK Capital MENA InFocus 05December2013
httpslidepdfcomreaderfullnbk-capital-mena-infocus-05december2013 1212
KUWAIT DUBAI ISTANBUL CAIRO