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## Allianz SF Ikarus Petroleum Ind. Nat. Investments Co. National Leasing Al Ahli Bank GCC Top Losers
##

2 Sep 12 1,099.7 465,188.5 51.1 2,875 40 17:21 1D% (0.3) (0.3) (0.3) (0.6) 0.2 0.1 0.1 (0.8) (0.0) Close# 93.50 174.00 114.00 49.50 66.40 Close
#

30 Aug 12 1,087.2 467,589.5 50.4 2,684 40 26:12 WTD% (0.3) (0.3) (0.3) (0.6) 0.2 0.1 0.1 (0.8) (0.0) 1D% 10.0 6.1 5.6 4.8 3.8 YTD% 2.6 6.0 3.5 9.8 (8.5) (0.1) 12.4 15.7 37.7 Vol. 000 1,458.4 0.1 1,256.3 870.5 1.0

%Chg. 1.1 (0.5) 1.3 7.1 0.0 TTM P/E N/A 9.5 11.3 10.6 10.7 2.9 11.5 14.1 13.1 YTD% 241.2 2.4 (33.7) 20.6 26.5 YTD% (11.3) (13.9) N/A 52.5 11.1

8,490 8,480 8,470 8,460

8,450
8,440 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00

Close 11,442.54 2,042.93 2,044.24 2,504.33 1,349.89 1,675.78 1,970.33 1,101.36 4,664.41 Exchange

Qatar Commentary The QE index fell 0.3% to close at 8,454.9. Losses were led by the Telecoms and Industrials indices, declining 0.8% and 0.6% respectively. Top losers were Aamal Co. and Al Khaliji, both decreasing 2.4%. Among the top gainers, Islamic Holding Group rose 5.1%, while National Leasing increased 4.8%. GCC Commentary Saudi Arabia: The TASI declined 0.6% to close at 7,090.9. Losses were led by the Multi-Investment and Petrochemical Industries indices, decreasing 1.7% and 1.1% respectively. Amana Cooperative Insurance Co. fell 4.3%, while Takween Advanced Industries declined 3.6% respectively. Dubai: The DFM index fell 0.1% to close at 1,545.6. The Real Estate & Construction index declined 0.7%, while the Banking index fell 0.2%. Al Salam Bank - Bahrain tanked 6.0%, while Al Salam Bank Sudan dropped 1.3%. Abu Dhabi: The ADX benchmark index decreased 0.2% to close at 2,557.0. Losses were led by the Banking and Consumer indices, falling 0.5% and 0.3% respectively. Eshraq Pro. Co. fell 6.5%, while Sharjah Isl. Bank dropped 2.3%. Kuwait: The KSE index gained 0.6% to close at 5,896.9. Gains were led by the Health Care and Parallel Market indices, rising 2.5% and 1.7% respectively. Taiba Kuwaiti Holding Co. rose 8.3%, while Advanced Technology Co. gained 7.7%. Oman: The MSM index rose 0.5% to close at 5,506.4. Gains were led by the Banking & Investment and Industrial indices, rising 0.9% and 0.4% respectively. Al Hassan Engineering gained 7.9%, while Oman National Investment Corp Holdings rose 3.9%. Qatar Exchange Top Gainers Islamic Holding Group National Leasing Al Ahli Bank Gulf Warehousing Co. Qatar Meat & Livestock Co. Qatar Exchange Top Vol. Trades Ezdan Real Estate Co. National Leasing Islamic Holding Group Aamal Co. Qatari Investors Group Close* 38.05 49.50 66.40 42.35 66.20 Close* 20.00 49.50 38.05 16.06 25.95 1D% 5.1 4.8 3.8 2.4 1.8 1D% (2.0) 4.8 5.1 (2.4) (0.4) Vol. 000 408.5 870.5 1.0 76.4 235.4 Vol. 000 46,401.9 870.5 408.5 350.5 288.5 YTD% 50.1 20.6 26.5 14.0 107.8 YTD% (9.9) 20.6 50.1 11.1 69.3

Saudi Arabia Kuwait Kuwait Qatar Qatar Exchange Bahrain Kuwait Saudi Arabia Saudi Arabia Qatar

1D% Vol. 000 (4.7) (4.2) (3.6) (3.2) (2.4) 3.6 744.0 442.1 1,894.2 350.5

Nat. Bank Of Bahrain Com. Bank of Kuwait Takween Adv. Ind. Co. Kingdom Holding Co. Aamal Co.

0.51 680.00 49.90 13.50 16.06

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 Aamal Co. Al Khaliji Ezdan Real Estate Co. Zad Holding Co. Qatar Telecom Qatar Exchange Top Val. Trades Ezdan Real Estate Co. National Leasing Qatar Meat & Livestock Co. Islamic Holding Group QNB Group
Source: Bloomberg (* in QR)

Close* 16.06 17.28 20.00 59.80 106.80 Close* 20.00 49.50 66.20 38.05 133.60

1D% (2.4) (2.4) (2.0) (1.2) (0.9) 1D% (2.0) 4.8 1.8 5.1 (0.4)

Vol. 000 350.5 166.3 46,401.9 10.6 18.5 Val. 000 928,045.0 42,397.7 15,485.9 15,413.4 9,118.5

YTD% 11.1 0.6 (9.9) 25.9 13.3 YTD% (9.9) 20.6 107.8 50.1 (3.3)

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

Close 8,454.90 1,545.59 2,557.01 7,090.90 5,896.94 5,506.36 1,077.22

1D% (0.3) (0.1) (0.2) (0.6) 0.6 0.5 (0.8)

WTD% (0.3) (0.1) (0.2) (0.7) 0.6 0.5 (0.8)

MTD% (0.3) (0.1) (0.2) (0.7) 0.6 0.5 (0.8)

YTD% (3.7) 14.2 6.4 10.5 1.4 (3.3) (5.8)

Exch. Val. Traded ($ mn) 47.45 19.18 17.99 1,617.82 55.32 14.40 0.73

Exchange Mkt. Cap. ($ mn) 127,787.3 48,867.5 76,692.0 375,655.4 100,228.0 19,135.0 19,601.2

P/E** 9.0 14.1 8.9 14.6 31.1 10.5 10.1

P/B** 1.7 0.7 1.0 1.9 1.1 1.5 0.8

Dividend Yield 4.4 4.1 4.8 3.3 3.4 4.6 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 8,454.9. The Telecoms and Industrials indices were the major contributors to the losses. The index declined due to selling pressure from non-Qatari shareholders despite buying support from Qatari shareholders. Aamal Co. and Al Khaliji were the top losers, both decreasing 2.4%. Among the top gainers, Islamic Holding Group rose 5.1%, while National Leasing increased 4.8%. Volume of shares traded on Sunday increased by 1.3% to 51.1mn from 50.4mn on Thursday. Further, as compared to the 30-day moving average of 5.1mn (excluding shares traded on special market), volume for the day was 901.3% higher as volumes continued to be boosted by special trades in Ezdan Real Estate Co. Ezdan Real Estate Co. and National Leasing were the most active stocks, contributing 90.9% and 1.7% to the total volume respectively.
Overall Activity Qatari Non-Qatari Buy %* 95.71% 4.29% Sell %* 95.14% 4.85% Net (QR) 6,228,269.78 (6,228,269.78)

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

News
Qatar QNB study: Qatari banks lead GCC in asset growth rate A QNB study has shown that eight Qatari banks that figure among the GCCs top 50 have grown by 20.1% in terms of assets, representing the regions strongest growth in 1H2012. The eight Qatari banks led by QNB, which is GCCs largest in terms of assets, account for 13.5% of total assets of the Gulf lenders. QNB achieved a 25.5% growth in the year up to June 30. The other seven banks averaged a strong growth rate of 14.7%, led by Qatar Islamic Bank and Masraf Al Rayan. Meanwhile, the collective assets of the largest 50 banks in the region increased by 7.7% in the year up to June 2012, reaching $1.28tn. Some 15 of the top 50 banks are Islamic and represent 19.5% of total assets. Regional assets growth was driven by an expansion in loan portfolios which grew by 13.6% during 1H2012. Growth was particularly strong in Qatar, where loans surged 39.7%, largely due to a 55.9% increase at QNB, which was the most rapid for any bank in the region. QNB has the largest loan book in the region, the study shows. Major Qatari banks nonperforming loans (NPLs) stood at just 1% of total loans in the first half of this year, the lowest in the Gulf region. QNB estimates that the aggregate level of NPLs in the region is 4.8% of total loans. There is considerable variability in NPLs between countries, ranging from a low of 1% in Qatar to a high of 8% in the UAE. (Gulf-Times.com) Qatar National Bank reportedly hires JP Morgan to advise on acquisition of Societe Generales Egyptian arm According to unnamed sources, Qatar National Bank (QNB) has hired J.P. Morgan Chase to advise on its planned acquisition of Societe Generale's Egyptian arm. (Reuters) Ezdan seeking shareholders nod to become a holding company Ezdan Real Estate Company said it invited shareholders to approve turning the company into a holding company. An extraordinary shareholders meeting is set for September 17 for voting to change the companys purpose so it can exert financial and managerial control over majority-owned entities, as well as invest in shares, bonds and property. The holding company would be able to participate in setting up special purpose entities and companies inside and outside of Qatar. Agenda for the General Assembly Meeting is to approve the purchase of properties from Al-Tadawul Holding Group according to the valuation of an accredited resident valuer in Qatar (DTZ) and to approve obtaining the required funds from banks to complete the targeted purchase of properties and companies. (Gulf-Times.com, QE) Glencore stick to Xstrata terms days before vote Glencore International is continuing to stick to the terms of a $33bn bid for Xstrata Plc, resisting mounting pressure from shareholders to sweeten the offer four days before investors vote. If the current proposal fails, executives are considering a structure for a new offer that would be more difficult to block. No talks were held during the weekend, and none are scheduled between Glencore and Qatar Holding, the biggest opposing shareholder. (Bloomberg) Qatar, Middle East SMEs activity vibrant Small and Medium Enterprises (SMEs) activity in the Middle East region, particularly across Qatar, continues to remain strong and vibrant despite the fallout from the recent economic gridlock. A recent Gartner report forecasts that the global SME market will increase its enterprise IT spending to over $1tn by 2016. (GulfTimes.com) HLG awarded QR246mn reservoirs project in Doha The Habtoor Leighton Group (HLG) has been awarded a QR246mn contract for the construction of additional reservoirs at Al Duhail and Umm Qarn Reservoir and Pumping Stations (RPSs) for the Qatar General Electricity and Water Corporation (KAHRAMAA). HLG (operating as Leighton Contracting Qatar WLL) is responsible for the construction of nine new 6mn gallon reservoirs at Umm Qarn and one 25mn gallon reservoir at Al Duhail, along with pipe works, associated MEP and instrumentation works, road works and landscaping. (Leighton.com) Trading suspension in shares of Al Meera Trading in the shares of Al Meera Consumer Goods Company remained suspended yesterday due to the companys Extra Ordinary General Meeting. (QE) Ezdan Real Estate Companys shares traded on Special Market Ezdan Real Estate Companys 46.3mn shares were traded on the Special Market on September 2. (QE) International Rajoy: Spain already meets conditions for aid Spains Prime Minister Mariano Rajoy said the nation will consider seeking extra aid from Europe on top of a 100bn rescue of its financial sector but does not see any need for new conditions. Rajoy said he wanted to see details of the European Central Bank's (ECB) program to buy debt of the Eurozone countries with high borrowing costs before deciding whether to proceed with a request. (Reuters)
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 Regling: ESM will not work without German backing ESM chief Klaus Regling said the European Stability Mechanism (ESM) is unlikely to be successful if Germanys highest court rules against it this month. He said if all Eurozone states meet targets and improve their competitiveness, the debt crisis can be overcome in one to two years. (Bloomberg) China HSBC PMI drops to 47.6, worst since March 2009 A contraction in China's factory sector activity intensified in August as both output and new orders dropped while manufacturers cut prices to compete for business. The HSBC Purchasing Managers' Index fell to a seasonally adjusted 47.6, its lowest level since March 2009. The reading was little changed from an estimate of 47.8 and was lower than 49.3 in July. It was the first time the official PMI had fallen below 50 points, the threshold dividing expansion from contraction, since November 2011. (Reuters) OPEC output falls as Iran pumps least in 22 years A Bloomberg survey showed that OPEC oil production declined in August as Iranian output dropped to a 22-year low after new sanctions came into effect. The survey suggests that production slipped 0.2% to an average 31.988mn bpd this month from a revised 32.063mn in July. Output in Iran fell 350,000 barrels to 2.75mn bpd, the lowest level since February 1990. (GulfTimes.com) Regional Saudi regulator fines five companies for disclosure violations Capital Market Authority has imposed SR300,000 in fines against five companies found breaching corporate disclosure regulations in Saudi Arabia. Mediterranean & Gulf Insurance & Reinsurance Company, Riyad Bank, Saudi Steel Pipe Company and Tabuk Cement were each fined SR50,000 for the violation of corporate governance regulations, while Saudi Indian Company for Co- operative Insurance was fined SR100,000. (Bloomberg) Demand for Islamic savings products in UAE set to grow Dubai-based National Bonds Corp. CEO Mohamed Qasim al-Ali said Shariah compliance is the key factor driving savings decisions by the UAE nationals, where an ageing population is expected to boost demand for Islamic savings products. The survey conducted by YouGov shows 87% of respondents do not believe their savings are adequate. (Gulf-Times.com Etihad raises Virgin Australia stake Etihad Airways has raised its stake in Virgin Australia to 10% through open market purchases. (Reuters) Bechtel interested in bid to build LNG plant in Fujairah Bechtel Group Inc.s regional President for Europe, Africa and the Middle East said that the company is interested in bidding to build a liquefied natural gas (LNG) plant in Fujairah. (Bloomberg) Kuwaits oil revenues to touch KD11.3bn in first five months According to report by Al-Shall Economic Consultants, Kuwait is expected to achieve actual oil revenues of KD11.3bn during the first five months of the current fiscal year. Average Kuwaiti oil price for August scored to $108.6 per barrel, a rise of $10 over July average. Furthermore, Kuwait has revealed a budget surplus of KD10.2bn for the fiscal year 2011-2012, based on a crude price of $60 per barrel. According to figures published on the official website of the Ministry of Finance, this surplus was achieved through revenue of KD30.2bn, actual expenses of around KD17.0bn and actual commitments of KD3.0bn. (GulfBase.com)

Global Investment House shareholders approve final debt restructuring plan Kuwait-based Global Investment Houses (GIH) shareholders have approved a final plan to create new special purpose vehicles (SPV) that will carry the company's debt as part of the $1.7bn debt restructuring plan. GIH will create at least two SPVs, one to hold company assets along with a debt of $1.3bn and one which will take part in a capital increase for the parent company and which will carry a debt equivalent of $430mn. (Reuters) Zain changes management structure Kuwait-based Mobile Telecommunications Company (Zain) has changed its management structure, creating the positions of Deputy Chief Executive and Chief Operating Officer. Hisham Akbar has been appointed as Deputy CEO and COO, while Jawdat al-Dajani has been named permanent Chief Commercial Officer. (GulfBase.com) Galfar Engineering and Contracting wins tender for construction of a Fishing Harbor Galfar Engineering and Contracting has been awarded a tender for construction of a Fishing Harbor in the wilayat of Barka from The Ministry of Agriculture & Fisheries Wealth for OMR10.9mn. (MSM) Dhofar Poultry Company to offer rights issue Dhofar Poultry Company Board has approved offering of 1mn ordinary shares (Right Issue) with a price of OMR1.020. The rights issue will increase companys paid capital from OMR3mn to OMR4mn. (MSM) Gulf investors plan to build $400m steel plant in Oman Emirati, Saudi and Omani investors have announced a new joint venture to build a steel plant in Oman with a total capital of $400mn - named Dhofar Steel. The shareholders include Al Suwaidi Group, Al Tuwairqi Group and Salalah Development Company. The proposed plant will produce 1mn tons of steel a year and will provide 1,200 job opportunities to mainly Omani citizens. (GulfBase.com) High demand for housing loans after fees cut Oman Housing Bank (OHB) has witnessed a high demand for housing loans from citizens in all governorates after the bank received Royal directions to slash administrative and banking fees by 75%. (GulfBase.com) OPWP, ACWA Power Barka sign WPA to execute 10 MIGD water expansion project Oman Power and Water Procurement Company (OPWP) has signed a Water Purchase Agreement (WPA) and other project agreements with ACWA Power Barka for the expansion of its existing water desalination capacity by 10 MIGD. The expansion project is an Independent Water Project (IWP) to be developed on a BOO (Build, Own, Operate) basis and will be located at Barka. (AME Info) Bahrains economy shrinks in 2Q2012 According to the data from Central Informatics Organization, Bahrain's economic output fell in 2Q2012 after moderate growth in 1Q2012. Real GDP dropped 1.3% QoQ in 2Q2012 as compared with 0.9% growth in 1Q2012. Real GDP expanded 4.3% YoY in 2Q2012 after a 5.9% jump in 1Q2012. (Reuters) Bahrain's takaful growth drops to single digits According to Central Bank of Bahrain, the growth of Bahrain's takaful sector fell to single digits in 2011 for the first time in a decade. Takaful gross contributions grew by 4.25% to BHD40.2mn in 2011. This compares to 18% growth in 2010, with double-digit growth registered in all of the previous ten years. (Reuters) Bahrain insurance premiums touch BHD214.94mn According to a report by the Central Bank of Bahrain (CBB), Bahrain's insurance market witnessed annual growth in 2011 with its gross premiums increased by 2% YoY to BHD214.94mn.
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A significant part of this jump was due to a surge in engineering insurance which saw a 31% growth in its gross premiums. The total assets of insurance and takaful firms rose by 8% YoY to in BHD1,464.04mn. (GulfBase.com)

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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

0.9%
0.6%
121.5 108.2 101.7 106.0 98.2

0.6%

0.5%

0.3%
0.0%

(0.3%) (0.6%) (0.9%) (1.2%) (0.6%) (0.8%)

Saudi Arabia Kuwait Bahrain

(0.3%)

(0.2%) (0.1%)

Abu Dhabi

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 ($) 1,692.01 31.73 115.86 1.26 78.39 1.59 1.05 1.03 81.21 32.31 0.49

1D% 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

WTD% 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

YTD% 8.2 14.0 6.6 (2.9) 1.9 2.1 (1.6) 1.1 1.3 0.5 (8.1)

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

Close 13,090.84 1,406.58 3,066.97 6,970.79 5,711.48 3,413.07 8,839.91 2,047.52 17,429.56 57,061.45 1,389.72

Oman

1D% 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

WTD% 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Dubai
YTD% 7.1 11.8 17.7 18.2 2.5 8.0 4.5 (6.9) 12.8 0.5 0.6

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

Qatar

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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