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QE Intra-Day Movement

Market Indicators Value Traded (QR mn) Exch. Market Cap. (QR mn) Volume (mn) Number of Transactions Companies Traded Market Breadth Market Indices Total Return All Share Index Banks Industrials Transportation Real Estate Insurance Telecoms Consumer GCC Top Gainers## NBQ Com. Bank of Kuwait Bank of Sharjah Kuwait Foods Ame. Nat. Investments Co. GCC Top Losers Allianz SF United Arab Bank IFA Hotels & Resorts Investbank
##

18 Sep 12 185.1 474,697.3 4.2 3,205 38 17:19 1D% (0.3) (0.2) 0.0 (0.6) (0.4) (0.2) (1.0) 0.2 0.7 Close# 1.76 670.00 1.27 1,460.00 106.00 Close
#

17 Sep 12 316.8 473,930.2 6.9 4,511 37 14:19 WTD% 0.3 0.2 0.5 (0.3) (0.2) 0.2 (0.5) 1.9 (0.2) 1D% 10.0 6.3 5.0 4.3 3.9 YTD% 4.2 8.0 4.7 11.4 (8.4) 4.8 19.3 16.7 45.1 Vol. ‘000 5.0 349.6 1,397.2 287.3 1,915.6

%Chg. (41.6) 0.2 (38.6) (29.0) 2.7 – TTM P/E N/A 9.6 11.4 10.7 10.7 3.1 12.2 14.2 13.9 YTD% (2.8) (15.2) (35.2) (1.4) (38.4) YTD% 343.4 (20.3) (43.2) 9.5 (21.8)

8,630 8,620 8,610 8,600 8,590 8,580 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00

Close 11,620.88 2,080.43 2,069.58 2,540.87 1,350.62 1,756.52 2,091.14 1,110.84 4,917.68 Exchange Abu Dhabi Kuwait Abu Dhabi Kuwait Kuwait Exchange

Qatar Commentary The QE index fell 0.3% to close at 8,586.7. Losses were led by the Insurance and Industrials indices, declining 1.0% and 0.6% respectively. Top losers were Qatar Insurance Co. and Al Ahli Bank, decreasing 2.1% and 1.6% respectively. Among the top gainers, Ezdan Real Estate Co. rose 2.8%, while Qatar German Co. for Med. Dev. increased 1.9%. GCC Commentary Saudi Arabia: The TASI index declined 0.6% to close at 7,105.5. Losses were led by the Multi-Investment and Insurance indices, decreasing 1.8% and 1.4% respectively. Allianz Saudi Fransi Cooperative Insurance Co. fell 10.0%, while Amana Cooperative Insurance Co. was down 5.0%. Dubai: The DFM index gained 0.1% to close at 1,591.5. The Telecommunication index rose 1.2%, while the Transportation index gained 0.8%. Al Madina For Finance & Investment Co. gained 8.3%, while Gulf General Investment Co. was up 5.3%. Abu Dhabi: The ADX benchmark index decreased 0.6% to close at 2,611.6. Both the Real Estate and Investment & Financial Services indices fell 1.8%. United Arab Bank declined 9.4%, while Invest Bank decreased 8.5%. Kuwait: The KSE index gained 0.6% to close at 5,834.3. Gains were led by the Telecommunication and Consumer Goods indices, rising 1.7% and 1.4% respectively. Alrai Media Group Co. was up 9.3%, while Privatization Holding Co. rose 8.3%. Oman: The MSM index decreased 0.2% to close at 5,606.4. Both the Banking & Investment and Industrial indices declined 0.5%. Al Hassan Engineering declined 2.8%, while Oman Investment And Finance was down 2.7%. Qatar Exchange Top Gainers Ezdan Real Estate Co. Qatar German Co. for Med. Dev. Qatar Islamic Insurance Al Khaliji Islamic Holding Group Qatar Exchange Top Vol. Trades Ezdan Real Estate Co. Qatar German Co. for Med. Dev. Barwa Real Estate Co. Masraf Al Rayan United Development Co. Close* 20.92 13.71 58.50 17.50 37.90 Close* 20.92 13.71 30.70 27.25 18.46 1D% 2.8 1.9 1.4 1.1 1.1 1D% 2.8 1.9 0.2 (0.2) (0.8) Vol. ‘000 627.7 378.6 0.6 11.2 48.9 Vol. ‘000 627.7 378.6 367.5 352.5 302.1 YTD% (5.7) 62.1 1.7 1.9 49.5 YTD% (5.7) 62.1 2.5 (2.2) 5.5

1D% Vol. ‘000 (10.0) (9.4) (8.5) (8.5) (3.7) 280.0 168.8 20.1 216.7 494.0

Saudi Arabia Abu Dhabi Kuwait Abu Dhabi

121.50 2.90 270.00 1.62 0.79

Arkan Building Mat. Co. Abu Dhabi

Source: Bloomberg (# in Local Currency) (## GCC Top gainers/losers derived from the Bloomberg GCC 200 Index comprising of the top 200 regional equities based on market capitalization and liquidity)

Qatar Exchange Top Losers Qatar Insurance Co. Al Ahli Bank Commercial Bank of Qatar Industries Qatar Qatar International Islamic Bank Qatar Exchange Top Val. Trades QNB Group Commercial Bank of Qatar Industries Qatar Ezdan Real Estate Co. Qatar Fuel Co.
Source: Bloomberg (* in QR)

Close* 70.40 61.00 75.30 141.00 52.50 Close* 136.00 75.30 141.00 20.92 285.50

1D% (2.1) (1.6) (1.6) (1.4) (0.9) 1D% 0.8 (1.6) (1.4) 2.8 1.1

Vol. ‘000 20.8 17.5 274.4 122.2 15.8 Val. ‘000 26,710.0 20,862.4 17,422.8 13,309.5 12,799.9

YTD% 8.9 16.2 (10.4) 6.0 (2.8) YTD% (1.6) (10.4) 6.0 (5.7) 45.7

Regional Indices Qatar* Dubai Abu Dhabi Saudi Arabia Kuwait Oman Bahrain

Close 8,586.68 1,591.50 2,611.62 7,105.52 5,834.33 5,606.38 1,075.55

1D% (0.3) 0.1 (0.6) (0.6) 0.6 (0.2) (0.0)

WTD% 0.3 1.1 0.1 0.0 0.7 0.3 0.4

MTD% 1.2 2.8 2.0 (0.5) (0.5) 2.3 (1.0)

YTD% (2.2) 17.6 8.7 10.7 0.3 (1.6) (6.0)

Exch. Val. Traded ($ mn) 50.84 32.76 14.78 1,445.78 105.96 9.55 0.18

Exchange Mkt. Cap. ($ mn) 130,351.9 49,442.5 78,266.3 379,008.9 100,625.4 19,425.4 19,597.6

P/E** 9.1 14.6 9.1 14.7 30.5 10.7 10.2

P/B** 1.7 0.7 1.1 1.9 1.1 1.6 0.8

Dividend Yield 4.3 4.0 4.7 3.3 3.5 4.5 4.6 Page 1 of 5

Source: Bloomberg, Qatar Exchange, Tadawul, Muscat Securities Exchange, Dubai Financial Market and Zawya (** TTM; * Value traded ($ mn) do not include special trades, if any)

Qatar Market Commentary
 The QE index fell 0.3% to close at 8,586.7. The Insurance and Industrials indices were the major contributors to the losses. The index declined due to selling pressure from Qatari shareholders despite buying support from non-Qatari shareholders.  Qatar Insurance Co. and Al Ahli Bank were the top losers, declining 2.1% and 1.6% respectively. Among the top gainers, Ezdan Real Estate Co. rose 2.8%, while Qatar German Co. for Med. Dev. increased 1.9%.  Volume of shares traded on Tuesday decreased by 38.6% to 4.2mn from 6.9mn on Monday. Further, as compared to the 30day moving average of 5.9mn, volume for the day was 28.3% lower. Ezdan Real Estate Co. and Qatar German Co. for Med. Dev. were the most active stocks, contributing 14.8% and 8.9% to the total volume respectively.
Overall Activity Qatari Non-Qatari Buy %* 48.01% 51.99% Sell %* 59.37% 40.63% Net (QR) (21,038,862.93) 21,038,862.93

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

Global Economic Data
Global Economic Data
Date 09/18 09/18 09/18 09/18 09/18 09/18 09/18 09/18 Market US EU Germany Germany UK UK UK UK Source NAHB ZEW ZEW ZEW ONS ONS ONS ONS Indicator NAHB Housing Market Index ZEW Survey (Econ. Sentiment) ZEW Survey (Current Situation) ZEW Survey (Econ. Sentiment) CPI (MoM) CPI (YoY) RPI (MoM) RPI (YoY) Period September September September September August August August August Actual 40 -3.8 12.6 -18.2 0.50% 2.50% 0.40% 2.90% Consensus 38 – 18 -20 0.50% 2.50% 0.50% 3.10% Previous 37 -21.2 18.2 -25.5 0.10% 2.60% 0.10% 3.20%

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

News
Qatar  Qatar to launch rating firm for domestic debt issuers – Qatar Central Bank (QCB) Governor Sheikh Abdullah bin Saud al-Thani said Qatar will establish an assessment and rating agency for domestic non-government debt issuers and institutions. He said the entity would be launched in 2013 as a joint venture between QCB and Qatar Holding. He mentioned that this is a part of QCB’s efforts to create an institution that will supervise the valuation of domestic debt issuers and bonds. Further, Qatar will also form a committee to encourage the development of its capital markets, he added. (Reuters)  QCB: Comfortable with interest rates – QCB Governor Sheikh Abdullah bin Saud al-Thani said QCB is very comfortable with the current interest rates. Sheikh Abdullah estimated inflation in 2012 will be in the range of 2-3%. However, he declined to say whether Qatar was considering diversifying its foreign currency reserves into the Chinese yuan. (Reuters)  Qatar’s Energy Minister: LNG relationships threatened by spot market – Qatar’s Energy Minister Mohammed Bin Saleh Al Sada said development of the spot market for liquefied natural gas may threaten long-term relationships between buyers and suppliers of LNG. Al Sada added that Qatar is interested in overseas oil & gas ventures. According to him boom in US shale gas is positive development. (Bloomberg)  Doha Bank seeks to increase capital by 50% in 1Q2013 – Doha Bank said it would seek to raise capital by 50% in 1Q2013 to meet strategic requirements. Doha Bank's Board approved plans for a capital hike and will now seek approval from shareholders at an extraordinary general assembly. (Reuters)  Qatar National Research Fund launches sixth cycle of funding program for ground-breaking projects – Qatar National Research Fund (QNRF), a member of the Qatar Foundation for Education, Science & Community Development, has launched the sixth application process for its competitive project funding initiative the National Priorities Research Program (NPRP). The NPRP is designed to help build human capacity in Qatar, and it is open to both Qatari and non-Qatari researchers from all disciplines. (AME Info) International  BOJ expands asset-purchase fund to bolster stimulus as growth falters – The Bank of Japan unexpectedly expanded its asset-purchase fund by 10tn yen ($126bn), seeking to counter an increasing danger of contraction in the economy. The BOJ’s program, in which it buys mainly government debt, was enlarged to 55tn yen in a unanimous decision by the board. A separate fund that extends credit to banks was held at 25tn yen. The Central Bank kept its benchmark interest rate between zero and 0.1% and monthly bond purchases at 1.8tn yen. The bank downgraded its economic assessment, saying that Japan’s growth has come to a pause while overseas economies have moved somewhat deeper into a deceleration phase. (Bloomberg)  Investors increase pressure on Spain to seek aid – Investors piled pressure on Spain to request aid and trigger a European Central Bank bond-buying program which they see as inevitable to help the country finance its debts. The country's benchmark 10-year bond rose to just above 6%. Short-term lending costs fell slightly from last month but remained high at Tuesday’s
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auction, offering little hope on the country’s ability to finance itself at reasonable levels without seeking assistance. (Reuters)  Greece: Recession will shrink its economy by 25% – Greek finance minister Yannis Stournaras said, Greece's economy would have contracted by 25% by the time the recession ends, as the government remained locked in talks with rescue lenders for its next major austerity program. He said the cumulative reduction of GDP since 2008 is just under 20%, and is expected to reach 25% by 2014.  FedEx: Economy is stalling, cuts outlook – FedEx Corp. said the global economy is stalling and it is going to get worse next year. FedEx cut its outlook for global growth and industrial production, while slashing the forecast for the company’s earnings. The company suggested the global trade has slowed to levels seen during the last two significant economic downturns. FedEx's forecasts are closely watched for signals of future economic health. Its results provide insight into the global economy because of the wide range of products it ships and the number of countries it serves. FedEx lowered its expectations for the US economic growth to 2.2% in 2012 and 1.9% in 2013, which are mostly in line with economists' views. (Bloomberg) Regional  IMF: Subsidies hinder progress in many MENA nations – IMF Director (Middle East and Central Asia Department) Masood Ahmed said generalized subsidies in the MENA region total about $210bn a year, leaving many countries with inadequate funds for development activities. (Gulf-Times.com)  GCC bonds set to post record sales amid infrastructure boom – According to data compiled by Bloomberg, GCC bond sales are on track for a record year as the oil exporters exploit record-low borrowing costs to build infrastructure including airports and gas pipelines. Government and corporate debt issuances in the GCC nations have crossed $28bn this year, beating the $27bn of bonds sold in entire 2011. GCC companies will raise at least another $6bn this year. (Gulf-Times.com)  Saudi Arabia acting to lower oil price – According to a senior Gulf source, Saudi Arabia is working to bring down oil prices. The majority of OPEC producers want oil prices around $100 per barrel. Oil has risen by around 30% over the last three months as investors have worried about security of supply from the MENA region and on expectations that commodity prices would rise due to economic stimulus measures by the US, Europe and China. (Gulf-Times.com)  Coutts hiring private bankers to boost Middle East business – Coutts, the wealth management unit of Royal Bank of Scotland Group, has hired four private bankers in the Middle East, and said it plans further additions to tap rising demand for wealth management services in the region. (Bloomberg)  Saudi Arabia, Singapore to establish SR100mn joint company to invest in different sectors – Saudi Arabia and Singapore have agreed to establish a joint company with a capital of SR100mn to invest in real estate, health, energy, water and IT projects. The new company would approach banks in both countries to obtain funds for setting up companies to carry out specific projects. The new firm will boost activities of Singaporean companies in the Kingdom, and would also help to attract more investment into the Kingdom in various fields. (GulfBase.com)  Mobily positions for liberalization plan – Saudi Arabian telecom group Mobily has signed agreements with several thirdparty operators, aiming to secure market share ahead of a planned market liberalization that will intensify competition in an

already saturated sector. Like its rivals Saudi Telecom Company (STC) and Zain Saudi, Mobily needs to link up with one of the so-called mobile virtual network operators (MVNOs) which will be licensed to operate under a regulatory change set out last December. (Gulf-Times.com)  Mobily: No current financing needs – Saudi Arabia-based Etihad Etisalat (Mobily) Managing Director Khalid al-Kaf said the company does not require any new financing since the SR10bn Shari’ah-compliant loan signed in February is adequate. (Reuters)  Saudi Airlines Catering Co inks contract with King Fahd Medical City – Saudi Airlines Catering Company (SACC) signed a contract with King Fahd Medical City to operate, invest and market King Fahd Medical City’s laundries, which specializes in laundering fabrics and clothing of all kinds for hospitals and accommodation buildings. The contract will later be operated by Sac Services, which is owned completely by SACC. (Tadawul)  Southern Province Cement Co delays operation of third mill in Jazan Plant – Saudi Arabian Southern Province Cement Company said the operation of the third mill in its Jazan plant will be delayed by four months because the equipment manufacturing company, Christian Pfeiffer has delayed approval for the civil drawings and the shipment of the mill equipment. The company said the mill is expected to be operational by January 29, 2013. (Tadawul)  Baker & McKenzie act for SBG on SR1bn sukuk – Baker & McKenzie recently acted for the Saudi Binladin Group (SBG) in relation to a SR1bn short term sukuk al murabaha issued by SBG Sukuk Limited as an exempt offering in the Kingdom of Saudi Arabia. HSBC Saudi Arabia was appointed as the sole Lead Manager for the transaction and was represented by Clifford Chance. Walkers acted as the legal adviser to SBG Sukuk Limited in relation to the laws of the British Virgin Islands. (GulfBase.com)  RAK Airways set to double fleet size – According to RAK Airways CEO John Brayford, the company will double its fleet size in the next 12 months to explore more markets in addition to increased flight frequencies. The airline is expected get the delivery of its third aircraft by the end of March next year and fourth one in November 2013. (GulfBase.com)  Drake & Scull, Sicim win Iraq $359mn oilfield deal – Iraq has awarded a contract valued at $359mn to Sicim SpA of Italy and Dubai-based Drake & Scull International for construction work at the Zubair oil field. The two-year contract can be extended by a year. (Bloomberg)  Etihad Airways keen to expand footprint in South America – Etihad Airways President and CEO James Hogan said the airways is keen to expand its footprint in South America. He said the airline is currently discussing with South American-based carriers for potential commercial partnerships. (GulfBase.com)  Abu Dhabi utility Shuweihat to raise $1.2bn loan – Abu Dhabi power utility Shuweihat is raising $1.2bn from a loan to refinance its debt as it seeks to reduce costs and benefit from a drop in interest rates. The 17-year loan is being raised for the Shuweihat’s S2 power and water unit, and pays 1.75% points to 2.25% points above the LIBOR benchmark. Citigroup, BNP Paribas, Standard Chartered and Bank of Tokyo-Mitsubishi UFJ Ltd. are helping Abu Dhabi Water & Electricity Authority, majority stakeholder in Shuweihat, to raise the loan. (Bloomberg)  Dana Gas’s key shareholder optimistic on $920mn Islamic bond – Crescent Petroleum, a key shareholder in Dana Gas said, it is optimistic that Dana Gas can reach a comfortable
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resolution on its $920mn Islamic bond maturing in October. Further, the company said Dana Gas is also in talks with the Egyptian government to recover the delayed receivables from its operations in the country. Dana Gas had appointed Blackstone Group and Deutsche Bank as advisers to help it weigh options for the sukuk, and said it was committed to finding a consensual solution. (Reuters)  Kuwait’s Finance Minister: Allocation to Kuwait’s future fund will not affect capital spending – Kuwait’s Finance Minister Nayef Al-Hajraf said the country’s decision to raise allocations to its Future Generations Fund this year will not be at the expense of capital spending. He said the decision to transfer 25% of revenue to the fund, up from an annual 10%, in the fiscal year that began April 1 is to “encourage saving”. (Bloomberg)  Oman Central Bank: Easy policy in line with economic developments – Central Bank of Oman’s Executive President Hamood Sangour al-Zadjali said the central bank’s monetary policy settings are in line with current economic developments, and said the central bank will try to maintain an easy monetary policy to help economic development. In addition, he said Oman's economy is expected to grow at 5% in 2012, while inflation should be around 3% in 2012. (Reuters)  Oman set to regulate Islamic banking sector – According to Central Bank of Oman Executive President Hamoud Sangour Al Zadjali, the regulation on Islamic banks and window operations of conventional banks in Oman will be announced soon through a royal decree. (GulfBase.com)  CBB Sukuk Al-Ijara fully subscribed – The Central Bank of Bahrain’s (CBB) monthly issue of the short-term Islamic leasing bonds, Sukuk Al-Ijara, have been fully subscribed by 328%. Subscriptions worth BHD65.5mn were received for the BHD20mn issue. The issue carries a maturity of 182 days. The expected return on the issue is 1.35%. (AME Info)  Bank Alkhair appoints new CEO – Bahrain-based Bank Alkhair has appointed Khalil Nooruddin as its managing director and CEO, as the Islamic bank seeks to return to profit after posting a loss in 1H2012. Nooruddin joins the bank from Capital Knowledge, a financial and training institute in Bahrain, and has 35 years of banking experience in the Gulf including positions with Investcorp, UBS and Chase Manhattan Bank. (Reuters)

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Rebased Performance

Daily Index Performance

140.0 130.0 120.0 110.0 100.0
90.0 80.0
Jan-10 May-10 Sep-10 Jan-11 May-11 Sep-11 Jan-12 May-12 Sep-12

0.9%
0.6%
123.4 108.9 102.9 106.0 98.2

0.6% 0.1%
(0.0%)

0.3%
0.0%

(0.3%)
(0.6%)

(0.3%)
(0.6%)

(0.2%) (0.6%)
Kuwait Bahrain Abu Dhabi Oman Dubai
YTD% 11.0 16.0 22.0 24.6 5.3 11.2 7.9 (6.4) 19.7 8.9 12.0 0.2 (0.5) (2.6)

Saudi Arabia

(0.9%)

4
QE Index S&P Pan Arab S&P GCC

Source: Bloomberg

Source: Bloomberg

Asset/Currency Performance Gold Silver Crude Oil (Brent) Euro Yen GBP CHF AUD USD Index RUB BRL
Source: Bloomberg

Close ($) 1,772.00 34.82 112.46 1.30 78.82 1.62 1.08 1.05 79.25 30.92 0.49

1D% 0.6 1.8 (1.5) (0.5) 0.1 (0.0) (0.1) (0.2) 0.3 1.0 0.2

WTD% 0.1 0.4 (4.4) (0.6) 0.5 0.2 (0.2) (0.9) 0.5 1.5 (0.6)

YTD% 13.3 25.0 3.5 0.7 2.5 4.5 1.1 2.4 (1.2) (3.8) (7.9)

Global Indices Performance DJ Industrial S&P 500 NASDAQ 100 DAX FTSE 100 CAC 40 Nikkei Shanghai BSE Sensex Bovespa RTS
Source: Bloomberg

Qatar

Close 13,564.64 1,459.32 3,177.80 7,347.69 5,868.16 3,512.69 9,123.77 2,059.54 18,496.01 61,804.33 1,547.74

1D% 0.1 (0.1) (0.0) (0.8) (0.4) (1.2) (0.4) (0.9) (0.2) (0.0) (2.2)

WTD% (0.2) (0.4) (0.2) (0.9) (0.8) (1.9) (0.4) (3.0)

Contacts

Ahmed M. Shehada
Head of Trading Tel: (+974) 4476 6535 ahmed.shehada@qnbfs.com.qa

Keith Whitney
Head of Sales Tel: (+974) 4476 6533 keith.whitney@qnbfs.com.qa

Saugata Sarkar
Head of Research Tel: (+974) 4476 6534 saugata.sarkar@qnbfs.com.qa

Sahbi Kasraoui
Manager - HNWI Tel: (+974) 4476 6544 sahbi.alkasraoui@qnbfs.com.qa

QNB Financial Services SPC
Contact Center: (+974) 4476 6666 PO Box 24025 Doha, Qatar
DISCLAIMER: This publication has been prepared by QNB Financial Services SPC (“QNBFS”) a wholly-owned subsidiary of Qatar National Bank (“QNB”). QNBFS is regulated by the Qatar Financial Markets Authority and the Qatar Exchange; QNB is regulated by the Qatar Central Bank. This publication expresses the views and opinions of QNBFS at a given time only. It is not an offer, promotion or recommendation to buy or sell securities or other investments, nor is it intended to constitute legal, tax, accounting, or financial advice. We therefore strongly advise potential investors to seek independent professional advice before making any investment decision. Although the information in this report has been obtained from sources that QNBFS believes to be reliable, we have not independently verified such information and it may not be accurate or complete. While this publication has been prepared with the utmost degree of care by our analysts, QNBFS does not make any representations or warranties as to the accuracy and completeness of the information it may contain, and declines any liability in that respect. QNBFS reserves the right to amend the views and opinions expressed in this publication at any time. It may also express viewpoints or make investment decisions that differ significantly from, or even contradict, the views and opinions included in this report. COPYRIGHT: No part of this document may be reproduced without the explicit written permission of QNBFS.

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