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## Almarai Co. Ltd. Takween Adv. Ind. Co. Bank of Sharjah Gulf Cable & Elec. Ind. Saudi Ceramic GCC Top Losers
##

15 Aug 12 1,092.0 460,463.5 51.1 2,510 37 21:12 1D% 0.0 0.0 0.2 (0.3) 0.3 0.2 0.1 (0.2) (0.0)

14 Aug 12 1,207.6 460,667.5 54.5 3,986 39 13:21 WTD% 0.1 (0.0) 0.3 (0.0) 0.7 1.3 (2.4) (2.7) 0.4 YTD% 2.2 5.1 3.6 8.4 (9.3) (2.4) 9.9 14.5 30.4

%Chg. (9.6) (0.0) (6.2) (37.0) (5.1) TTM P/E N/A 9.5 11.3 11.3 10.6 2.8 11.9 15.3 12.2 YTD% 21.2 N/A (38.3) (25.4) (8.4) YTD% (4.7) 191.1 16.4 21.3 5.2

8,435

8,430
8,425 8,420

8,415
8,410 8,405 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00

Close 11,396.77 2,024.42 2,046.70 2,473.95 1,337.26 1,637.26 1,926.60 1,090.30 4,419.53 Exchange

Qatar Commentary The QE index increased marginally to close at 8,421.1. Gains were led by the Transportation and Real Estate indices, gaining 0.3% and 0.2% respectively. Top gainers were Zad Holding Co. and Al Khaleej Takaful Group, rising 3.0% and 2.0% respectively. Among the top losers, Doha Insurance Co. fell 1.8%, while Mazaya Qatar Real Estate Dev. declined 1.0%. GCC Commentary Saudi Arabia: The TASI index rose 0.5% to close at 7,003.8. Gains were led by the Agriculture & Food Industries and Transport indices, rising 3.2% and 1.5% respectively. Almarai Co. surged 10.0%, while Saudi Transport and Investment Co. increased 6.7%. Dubai: The DFM index gained 0.1% to close at 1,579.0. Gains were led by the Telecommunication and Banking indices, rising 1.1% and 0.5% respectively. Takaful House increased 4.5%, while Emirates Int. Telecom Co. gained 1.1%. Abu Dhabi: The ADX benchmark index rose 0.1% to close at 2,557.0. Gains were led by the Energy and Telecommunication indices, increasing 0.6% and 0.2% respectively. Ras Al Khaimah Ceramic Co. gained 7.5%, while Bank of Sharjah was up 4.3%. Kuwait: The KSE index gained 0.2% to close at 5,713.3. Gains were led by the Technology and Insurance indices, rising 2.2% and 1.0% respectively. Manafae Inv. Co. rose 9.1%, while Real Est. Trade Centers Co. gained 7.8%. Oman: The MSM index increased 0.2% to close at 5,508.9. Gains were led by the Banking & Investment and Industrial indices, gaining 0.6% and 0.3% respectively. Al Anwar Holding rose 4.8%, while Voltamp Energy was up 4.1%.

Close# 69.00 51.50 1.21 1,060.00 91.00 Close

#

1D% Vol. 000 10.0 5.1 4.3 3.9 3.4 2,584.6 700.3 5.0 100.5 107.1

Saudi Arabia Saudi Arabia Abu Dhabi Kuwait Saudi Arabia Exchange Kuwait Saudi Arabia Saudi Arabia Dubai Dubai

1D% Vol. 000 (4.7) (3.0) (2.3) (1.9) (1.9) 0.1 373.1 538.2 44,069.4 4.5

Ikarus Petroleum Ind. Allianz SF Arabian Cement Drake & Scull Inter. DP World Ltd.

162.00 79.75 52.25 0.91 10.15

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 Gainers Zad Holding Co. Al Khaleej Takaful Group Qatari Investors Group Qatar International Islamic Bank Qatar Industrial Manufacturing Co. Qatar Exchange Top Vol. Trades Ezdan Real Estate Co. Barwa Real Estate Co. Mazaya Qatar Real Estate Dev. Masraf Al Rayan United Development Co.

Close* 61.80 47.45 25.40 49.95 53.40 Close* 19.81 27.80 11.61 27.20 18.05

1D% 3.0 2.0 1.4 1.3 1.1 1D% 0.0 0.4 (1.0) 0.2 0.3

Vol. 000 84.4 69.2 210.6 82.2 3.7 Vol. 000 47,109.6 873.0 536.5 248.4 243.5

YTD% 30.1 5.1 65.7 (7.5) (6.3) YTD% (10.7) (7.2) 48.7 (2.3) 3.2

Qatar Exchange Top Losers Doha Insurance Co. Mazaya Qatar Real Estate Dev. Industries Qatar Qatar Islamic Insurance Salam International Inv. Co. Qatar Exchange Top Val. Trades Ezdan Real Estate Co. Barwa Real Estate Co. Industries Qatar Qatar Fuel Co QNB Group
Source: Bloomberg (* in QR)

Close* 27.50 11.61 137.40 57.00 13.62 Close* 19.81 27.80 137.40 240.00 133.90

1D% (1.8) (1.0) (0.8) (0.5) (0.4) 1D% 0.0 0.4 (0.8) (0.4) 0.0

Vol. 000 1.2 536.5 125.9 5.7 34.6 Val. 000 942,191.2 24,392.2 17,371.2 9,784.6 7,991.5

YTD% 21.2 48.7 3.3 (0.9) 24.2 YTD% (10.7) (7.2) 3.3 22.4 (3.1)

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

Close 8,421.08 1,578.98 2,556.96 7,003.79 5,713.28 5,508.88 1,080.00

1D% 0.0 0.1 0.1 0.5 0.2 0.2 0.3

WTD% 0.1 0.4 0.9 0.7 0.2 0.8 0.0

MTD% 1.5 2.4 2.0 1.8 (0.1) 2.8 (1.8)

YTD% (4.1) 16.7 6.4 9.1 (1.7) (3.3) (5.6)

Exch. Val. Traded ($ mn) 41.15 33.31 26.26 1,372.23 71.79 12.14 0.19

Exchange Mkt. Cap. ($ mn) 126,443.3 49,471.3 76,698.7 370,221.8 99,356.7 19,090.2 19,642.4

P/E** 8.9 14.8 9.3 14.4 26.7 10.7 10.1

P/B** 1.6 0.7 1.0 1.9 1.1 1.5 0.8

Dividend Yield 4.4 3.9 4.7 3.5 3.5 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 increased marginally to close at 8,421.1. The Transportation and Real Estate indices were the major contributors to the gains. The index increased on the back of buying support from Qatari shareholders despite selling pressure from non-Qatari shareholders. Zad Holding Co. and Al Khaleej Takaful Group were the top gainers, increasing 3.0% and 2.0% respectively. Among the top losers, Doha Insurance Co. fell 1.8%, while Mazaya Qatar Real Estate Dev. declined 1.0%. Volume of shares traded on Wednesday fell by 6.2% to 51.1mn from 54.5mn on Tuesday (special trade in Ezdan Real Estate Co.). However, as compared to the 30-day moving average of 4.9mn, volume for the day was 933.6% higher. Ezdan Real Estate Co. and Barwa Real Estate Co. were the most active stocks, contributing 92.2% and 1.7% to the total volume respectively.
Overall Activity Qatari Non-Qatari Buy %* 96.35% 3.65% Sell %* 94.54% 5.46% Net (QR) 19,814,256.10 (19,814,256.10)

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

Earnings
Ratings Updates
Company National Industries Group Holding (NIG) Agency Moody's Market Kuwait Type* PDR / CFR / MTN# / $475mn sukuk Old Rating B3/ B3/ (P)B3/ B3 New Rating B3/ B3/ (P)B3 / B3 Rating Change Outlook Stable Outlook Change

Source: News reports (* ST Short Term, LT Long Term, CFR- Corporate Family Rating, PDR- Probability of Default Rating, MTN- Medium-Term Note, # P(B3) Provisional ratings )

Earnings Releases
Company Drake & Scull International (DSI) National Cement (NCC) Deyaar Development (DEYAAR) Islamic Arab Insurance Co. (Salama) Ras Al Khaimah Ceramics (RAKC) KIPCO Asset Management Co. (KAMCO) # Global Investment House (GLOBAL) National Industries Group (NIND) AI Mazaya Holding Co. (MAZAYA) ACICO Industries (ACICO) Al Fajar Al Alamia (AFAI) #
#

Market Dubai Dubai Dubai Dubai Abu Dhabi Kuwait Kuwait Kuwait Kuwait Kuwait Oman

Currency AED AED AED AED AED KD KD KD KD KD OMR

Revenue (mn) 2Q12 717.3 50.5 143.5 440.0 835.0 0.9 30.4 9.8 9.6 6.0

% Change YoY (2.9%) 4.4% (57.1%) (19.7%) (5.2%) NA 11.2% 40.2% (11.6%) 11.2%

Operating Profit (mn) 2Q12 31.5 30.4 (9.4) 1.1

% Change YoY (34.7%) NA NA NA

Net Profit (mn) 2Q12 26.1 25.3 18.6 19.4 113.3 (2.9) (9.5) 1.1 0.6 0.9 0.6

% Change YoY (49.2%) (1.6%) 3.0% (34.8%) 88.8% N/A (42.8%) (84.3%) NA 13.2% (25.0%)

Source: Company data, DFM, ADX, MSM ( Data for 1H2012)

Global Economic Data

Date 08/15 08/15 08/15 08/15 08/15 08/15 08/15 Market US US US US US UK UK Source MBA The Commerce Dept. The Commerce Dept. Federal Reserve Federal Reserve ONS ILO Indicator MBA Mortgage Applications Consumer Price Index (MoM) Consumer Price Index (YoY) Industrial Production Capacity Utilization Jobless Claims Change ILO Unemployment Rate (3mths) Period 10-August July July July July July June Actual -4.50% 0.00% 1.40% 0.60% 79.30% -5.9K 8.00% Consensus 0.20% 1.60% 0.50% 79.20% 6.0K 8.10% Previous -1.80% 0.00% 1.70% 0.10% 78.90% 1.0K 8.10%

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

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News
Qatar July QCB data reveals liquidity situation has improved Liquidity for the Qatari banking system improved with deposits for the month of July up by an impressive 13.0% MoM versus an improvement of 2.6% MoM in the loan book. The sector loan to deposit ratio (LTD) is down to 111% in July vs. 122% at the end of June 2012. Furthermore, the domiciled loan-to-deposit ratio for the sector stood at 104.0% at the end of July 2012 vs. 114.3% at the end of June 2012. Interbank borrowing (domestic + international) and international deposits as a percentage of total assets declined to 21.7% at the end of July 2012 from 25.4% at the end of June 2012. The growth in deposits will have positive implications for the banking sector, which is expected to see a gradual uptick in the loan book as implementation of projects gather pace in the coming months. (QCB, QNBFS) Al Meera Consumer Goods Company net profit up 2.5% QoQ Al Meera Consumer Goods Company reported a net profit of QR23.7mn for 2Q2012, indicating a QoQ increase of 2.5%. Revenue increased by 10.8% QoQ to QR389.3mn. Total assets at the end of June 30, 2012, stood at QR804.4mn, reflecting a YTD increase of 5.1%. (QE) QTEL to buy remaining stake in Wataniya Qatar Telecom offered to pay KD622.4mn ($2.2 billion) for the remaining stake in Kuwaits National Mobile Telecommunications Company. Qatar Telecom offered KD2.6 a share and has received the approval from the Kuwait Capital Markets Authority for the offer. (Bloomberg) Dlala Brokerage & Investment Holding obtains QR110mn Murabaha financing Dlala Brokerage & Investment Holding has obtained a Murabaha financing of QR110mn for supporting a real-estate investment for its subsidiary Dlala Real-estate Company. The financing will be used to develop a property in the Al-Thummama area. (QE) Qatar Airways to operate flights to Serbia and Poland by end-2012 Qatar Airways will launch its scheduled flights to Serbia and Poland by year-end, taking the airline's coverage across the continent to 32 destinations. (AME Info) Ezdan Real Estate Companys shares traded on Special Market 47.1mn shares of Ezdan Real Estate Company was traded on the special market on August 15. (QE) QCB announces three-day bank holiday for Eid Qatar Central Bank (QCB) has declared a three-day bank holiday for Eid. The banks will remain closed from August 19 to August 21. (Gulf-Times.com) International BoE drops reference to rate cut, mulls policy options Bank of England (BoE) policy makers dropped a reference to interestrate cuts this month as they voted to keep their bond-purchase target unchanged and said they will assess the need for other stimulus measures. The Monetary Policy Committee voted 9-0 to hold the target at 375bn. (Bloomberg) Greece to ask for austerity-plan extension According to a Financial Times report, Greece Prime Minister Antonis Samaras will call for a two-year extension to Greeces austerity program when he meets Angela Merkel and Francois Hollande next week. According to the newspaper report, Samaras will suggest spreading public spending cuts over a period of four years instead of two to help the plunging Greek economy return to growth during the talks with the German Chancellor and French President. (Gulf-Times.com) Standard Chartered eyes joint deal after backing down in US Standard Chartered is pursuing a collective settlement with other US authorities after speedily agreeing to pay $340mn to New York's financial regulator, who broke ranks with early revelations that the bank hid banned Iranian transactions. Standard Chartereds US lawyers Sullivan & Cromwell will look to accelerate talks with other agencies to enable the bank to draw a line under an episode that has left it with lasting damage to its reputation. (Reuters) Regional Egypt may discuss the possibility of bigger, $4.8bn loan from IMF Egypts Finance Minister Mumtaz al-Saeed said Egypt will discuss the possibility of a bigger-than-expected $4.8bn loan from IMF this month, when IMF head Christine Lagarde will lead a delegation to Cairo. He also stated that Egypt has asked the US for a $500mn grant to support the state budget. (Reuters) MAADEN announces continuation of gradual increment of production capacity of DAP Saudi Arabian Mining Company (MA'ADEN) said it will continue gradual increment of its capacity production of DAP until it reaches the designed capacity of 3mn tons annually. This gradual increment shall be in a direct proportion with production capacity of the Phosphoric Acid Plant. (Tadawul) SABIC mulls major acquisition According to news published on MEEDs website, Saudi Basic Industries Corporation (SABIC) is considering a major acquisition. MEED reported that Huntsman Corp., Celanese Corp., Lanxess AG and Arkema SA may be potential targets if SABIC were to decide on carrying out an acquisition. (Bloomberg) SATORP selects Aveva solution Saudi Aramco Total Refinery and Petrochemical Company (SATORP) has selected Aveva Net from the Aveva Enterprise portfolio to serve as the core digital information hub for its engineering document management solution (EDMS). The hub will manage all engineering information for the Jubail refinery project. (Zawya) UAE CPI stood at 116.48 in 1H2012 According to the National Bureau of Statistics, the overall Consumer Price Index (CPI) for the UAE reached 116.48 in 1H2012, reflecting a YoY increase of 0.64%. The fall in rents of 3.65% and a slight decrease in the cost of recreational and cultural activities could not stop the CPI from rising. For the first six months, food and soft drinks prices rose 7.1%, furniture prices increased 3.79% while restaurants and hotels prices increased 3.73%. During the same period, housing rents fell 3.65% while recreational and cultural, decreased 0.21%. However, food prices showed a 0.26% decline in June. Housing rents and textile and footwear also declined by 0.06% and 0.41% respectively. (GulfBase.com) Mazoon Electricity Co awards contract to Oman National Engineering & Investment Co for upgrading Wadi AL Sijani substation Mazoon Electricity Company has awarded a contract to Oman National Engineering & Investment Company for upgrading the Wadi AL Sijani substation from 2x6 MVA to 3x6 MVA and construction of a 33 kv line from Sumail main station to Sror and AL Multaqa substations at Wallayat of Sumail - Dakhlia Province for a sum of OMR471,900. The company anticipates realization of reasonable profit margin. (MSM) Banader Hotels Company extends subscription period for rights offering of preferential shares Banader Hotels Company has extended the subscription period of its rights offering of preference shares from August 16 to November 1. (Bahrain Bourse)
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 Gulf Air to resume flights to Iraq, Iran Bahrain-based Gulf Air will resume flights to Iraq and Iran on September 20. The flights to Iraq and Iran were stopped in March 2011. The flights to Baghdad, Arbil, Najaf and Basra in Iraq and Tehran, Mashhad, Shiraz and Isfahan in Iran will begin progressively between September 20 and October 28, 2012, subject to final approvals by the civil aviation authorities of the respective countries. (Gulf-Times.com.com) EFG-Hermes posts YoY decline of 66% Egyptian investment bank EFG-Hermes posted a net profit of EGP27mn for 2Q2012, reflecting a YoY decline of 66%. The overall 2Q2012 investment banking revenue declined 13% YoY to EGP195mn but group operating revenue was up 2% at EGP477mn, with its Credit Libanais retail bank achieving a 3% growth in net profit. (GulfTimes.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

0.6%

0.5% 0.3%

121.0 108.2 100.6 106.0 98.2

0.3%

0.2%

0.2%

0.1%

0.1%

0.0%
Saudi Arabia

0.0%

Kuwait

Bahrain

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 ($) 1,603.10 27.83 117.28 1.23 78.99 1.57 1.02 1.05 82.65 31.87 0.50

1D% 0.3 0.0 1.9 (0.3) 0.3 0.0 (0.3) 0.2 0.2 0.0 0.2

WTD% (1.1) (1.0) 2.5 0.0 0.9 (0.0) 0.0 (0.7) 0.1 0.2 (0.2)

YTD% 2.5 (0.0) 7.9 (5.2) 2.7 0.9 (3.9) 2.9 3.1 (0.8) (7.7)

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

Close 13,164.78 1,405.53 3,030.93 6,946.80 5,833.04 3,449.20 8,925.04 2,118.95 17,728.20 58,189.28 1,427.67

Oman

1D% (0.1) 0.1 0.5 (0.4) (0.5) (0.0) (0.1) (1.1) 0.0 0.2 (1.2)

WTD% (0.3) (0.0) 0.3 0.0 (0.2) 0.4 0.4 (2.3) 1.0 (1.8) 0.0

Dubai
YTD% 7.8 11.8 16.3 17.8 4.7 9.2 5.6 (3.7) 14.7 2.5 3.3

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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