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1 QSE Intra-Day Movement 8,380 8,360 8,340 8,320 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00 Qatar Commentary The QSE Index declined marginally to close at 8, Losses were led by the Real Estate and Industrials indices, falling 0.6% and 0.2%, respectively. Top losers were Qatar Islamic Insurance Co. and Gulf Warehousing Co., falling 4.7% and 2.3%, respectively. Among the top gainers, Mannai Corporation rose 6.3%, while Widam Food Co. was up 4.0%. GCC Commentary Saudi Arabia: The TASI Index fell 0.7% to close at 6, Losses were led by the Utilities and Real Estate Mgmt & Dev't indices, falling 2.0% and 1.3%, respectively. The Mediterranean & Gulf Ins. fell 4.6%, while Alandalus Property was down 4.0%. Dubai: The DFM Index declined 0.1% to close at 3, The Insurance index fell 1.4%, while the Banks index declined 0.5%. Emirates Islamic Bank fell 6.3%, while Dar Al Takaful was down 3.8%. Abu Dhabi: The ADX benchmark index fell 0.2% to close at 4, The Energy index declined 3.1%, while the Banks index fell 0.2%. Gulf Cement Co. declined 6.5%, while Dana Gas Co. was down 3.8%. Kuwait: The KSE Index declined 0.1% to close at 6, The Real Estate index fell 1.7%, while the Telecommunications index declined 1.1%. Real Estate Asset Management Company fell 20.0%, while Tamkeen Holding Co. was down 14.0%. Oman: The MSM Index rose 0.2% to close at 5, The Financial index gained 0.1%, while other indices ended in red. Oman Fisheries rose 7.3%, while Muscat Finance was up 6.2%. Bahrain: The BHB Index fell marginally to close at 1, The Service index declined 0.4%, while the Commercial Bank index fell 0.1%. Inovest declined 9.3%, while Seef Properties was down 3.6%. QSE Top Gainers Close* 1D% Vol. 000 YTD% Mannai Corporation (18.3) Widam Food Co (5.1) Qatar Industrial Manufacturing Co (3.6) Al Khalij Commercial Bank (28.2) Medicare Group Market Indicators 15 Oct Oct 17 %Chg. Value Traded (QR mn) (55.2) Exch. Market Cap. (QR mn) 454, , Volume (mn) (56.0) Number of Transactions 1,548 2,623 (41.0) Companies Traded (7.0) Market Breadth 19:17 18:21 Market Indices Close 1D% WTD% YTD% TTM P/E Total Return 13, (0.0) (0.0) (17.2) 13.6 All Share Index 2, (18.3) 12.9 Banks 2, (10.7) 13.8 Industrials 2, (0.2) (0.2) (20.9) 17.4 Transportation 1, (32.0) 11.7 Real Estate 1, (0.6) (0.6) (27.6) 11.0 Insurance 3, (26.6) 14.7 Telecoms 1, (13.1) 20.2 Consumer 5, (15.0) 11.9 Al Rayan Islamic Index 3, (0.1) (0.1) (14.0) 15.4 GCC Top Gainers ## Exchange Close # 1D% Vol. 000 YTD% Almarai Co. Saudi Arabia , Bank Sohar Oman Dar Al Arkan Real Estate. Saudi Arabia , Dubai Investments Dubai , Saudi British Bank Saudi Arabia GCC Top Losers ## Exchange Close # 1D% Vol. 000 YTD% Yanbu National Petro. Co. Saudi Arabia (3.0) National Mobile Telecom. Kuwait 1.17 (2.3) 2.0 (2.5) Saudi Ground Services Co. Saudi Arabia (2.2) (40.4) Jabal Omar Dev. Co. Saudi Arabia (2.2) (15.0) Saudi Arabian Mining Co. Saudi Arabia (2.2) Source: Bloomberg ( # in Local Currency) ( ## GCC Top gainers/losers derived from the S&P GCC Composite Large/ Mid Cap Index comprising of the top 125 regional equities) QSE Top Losers Close* 1D% Vol. 000 YTD% Qatar Islamic Insurance Co (4.7) 0.0 (0.2) Gulf Warehousing Co (2.3) 9.9 (23.2) Doha Bank (1.8) 35.3 (15.6) Salam International Inv. Ltd (1.5) (27.3) Commercial Bank (1.4) 61.1 (11.0) QSE Top Volume Trades Close* 1D% Vol. 000 YTD% Dlala Brokerage & Inv. Holding Co (20.9) Investment Holding Group 7.32 (0.1) (26.8) Salam International Inv. Ltd (1.5) (27.3) Ezdan Holding Group 9.35 (0.5) (38.1) Masraf Al Rayan (3.3) Regional Indices Close 1D% WTD% MTD% YTD% QSE Top Value Trades Close* 1D% Val. 000 YTD% QNB Group ,874.2 (16.3) Dlala Brokerage & Inv. Holding Co ,443.8 (20.9) Widam Food Co ,718.4 (5.1) Masraf Al Rayan ,681.1 (3.3) Qatar Electricity & Water Co ,659.6 (20.3) Source: Bloomberg (* in QR) Exch. Val. Traded ($ mn) Exchange Mkt. Cap. ($ mn) P/E** P/B** Dividend Yield Qatar* 8, (0.0) (0.0) 0.3 (20.1) , Dubai 3, (0.1) (0.1) ,803.1 N/A Abu Dhabi 4, (0.2) (0.2) 2.8 (0.6) , Saudi Arabia 6, (0.7) (0.7) (4.7) (3.8) , Kuwait 6, (0.1) (0.1) (0.9) , Oman 5, (11.1) , Bahrain 1, (0.0) (0.0) (0.7) , Source: Bloomberg, Qatar Stock Exchange, Tadawul, Muscat Securities Exchange, Dubai Financial Market and Zawya (** TTM; * Value traded ($ mn) do not include special trades, if any) Page 1 of 7

2 Qatar Market Commentary The QSE Index declined marginally to close at 8, The Real Estate and Industrials indices led the losses. The index fell on the back of selling pressure from Qatari and GCC shareholders despite buying support from non-qatari shareholders. Qatar Islamic Insurance Co. and Gulf Warehousing Co. were the top losers, falling 4.7% and 2.3%, respectively. Among the top gainers, Mannai Corporation rose 6.3%, while Widam Food Co. was up 4.0%. Volume of shares traded on Sunday fell by 56.0% to 3.3mn from 7.6mn on Thursday. Further, as compared to the 30-day moving average of 9.6mn, volume for the day was 65.1% lower. Dlala Brokerage & Investments Holding Co. and Investment Holding Group were the most active stocks, contributing 18.4% and 9.4% to the total volume, respectively. Overall Activity Buy %* Sell %* Net (QR) Qatari Individuals 42.86% 54.59% (10,908,933.63) Qatari Institutions 15.90% 18.45% (2,376,090.42) Qatari 58.76% 73.04% (13,285,024.05) GCC Individuals 1.08% 0.63% 418, GCC Institutions 2.78% 6.81% (3,749,376.51) GCC 3.86% 7.44% (3,330,604.17) Non-Qatari Individuals 13.93% 9.87% 3,778, Non-Qatari Institutions 23.46% 9.65% 12,837, Non-Qatari 37.39% 19.52% 16,615, Source: Qatar Stock Exchange (* as a % of traded value) Earnings Releases and Earnings Calendar Earnings Releases Company Market Currency Revenue (mn) % Change Operating Profit % Change Net Profit % Change 3Q2017 YoY (mn) 3Q2017 YoY (mn) 3Q2017 YoY Qassim Cement Co. Saudi Arabia SR % % United Wire Factories Co. Saudi Arabia SR % % Al Fajar Al Alamia Oman OMR % % Oman Hotels and Tourism* Oman OMR % % Almaha Petroleum Products Mar.* Oman OMR % % Oman Investment and Finance* Oman OMR % % Oman Telecommunication Oman OMR % % Construction Materials Ind. # Oman OMR 2, % % Abrasives Manufacturing # Oman OMR % N/A Dhofar Beverages Food Stuff* Oman OMR % -0.1 N/A Ooredoo Oman OMR % % Ominvest* Oman OMR % % Global Financial Investment* Oman OMR % % Muscat Gases Oman OMR % % Takaful Oman Insurance* Oman OMR % Dhofar Insurance* Oman OMR % -0.8 N/A Al Kamil Power* Oman OMR % % Oman and Emirates Inv. Holding* Oman OMR % -1.2 N/A Oman United Insurance* Oman OMR % % Salalah Mills* Oman OMR % % Shell Oman Marketing* Oman OMR % % Acwa Power Barka* Oman OMR % % Oman Orix Leasing* Oman OMR % % National Finance* Oman OMR % % Sohar Power* Oman OMR % % Al Omaniya Financial Ser. Oman OMR % % Phoenix Power* Oman OMR % % Muscat Insurance* Oman OMR % % Oman Ceramic Company* # Oman OMR 2, % % National Detergent Oman OMR % % Oman Chlorine* Oman OMR % % % Sembcorp Salalah* Oman OMR % % National Gas* Oman OMR % % Hotels Management Co. Int. Oman OMR % % Gulf Hotels (Oman)* Oman OMR % % Muscat Thread Mills* Oman OMR % % Al Batinah Dev. Inv. Holding* # Oman OMR % % Al Anwar Holding** Oman OMR % Page 2 of 7

3 Raysut Cement* Oman OMR % % % Al Ahlia Insurance* Oman OMR % % Source: Company data, DFM, ADX, MSM, TASI, BHB. (*Financials for 9M2017, **Financial for 2Q July-Sept, # Values in 000) Earnings Calendar Tickers Company Name Date of reporting 3Q2017 results No. of days remaining Status MARK Masraf Al Rayan 16-Oct-17 0 Due QIGD Qatari Investors Group 16-Oct-17 0 Due WDAM Widam Food Company 16-Oct-17 0 Due DBIS Dlala Brokerage & Investment Holding Company 17-Oct-17 1 Due CBQK Commercial Bank 17-Oct-17 1 Due ABQK Ahli Bank 18-Oct-17 2 Due QIBK Qatar Islamic Bank 18-Oct-17 2 Due QNCD Qatar National Cement Company 18-Oct-17 2 Due NLCS National Leasing (Alijarah) 19-Oct-17 3 Due QGTS Qatar Gas Transport Company (Nakilat) 22-Oct-17 6 Due QATI Qatar Insurance Company 22-Oct-17 6 Due DHBK Doha Bank 23-Oct-17 7 Due QIIK Qatar International Islamic Bank 23-Oct-17 7 Due IHGS Islamic Holding Group 23-Oct-17 7 Due MRDS Mazaya Qatar Real Estate Development Company 23-Oct-17 7 Due KCBK Al Khaliji Commercial Bank 24-Oct-17 8 Due QIMD Qatar Industrial Manufacturing Company 24-Oct-17 8 Due QGRI Qatar General Insurance & Reinsurance 24-Oct-17 8 Due BRES Barwa Real Estate Company 24-Oct-17 8 Due UDCD United Development Company 25-Oct-17 9 Due QISI Qatar Islamic Insurance Company 25-Oct-17 9 Due QFLS Qatar Fuel Company 25-Oct-17 9 Due VFQS # Vodafone Qatar 25-Oct-17 9 Due QCFS Qatar Cinema & Film Distribution Company 25-Oct-17 9 Due IGRD Investment Holding Group 25-Oct-17 9 Due QEWS Qatar Electricity & Water Company 25-Oct-17 9 Due AKHI Al Khaleej Takaful Group 26-Oct Due QOIS Qatar Oman Investment Company 26-Oct Due MERS Al Meera Consumer Goods Company 26-Oct Due QFBQ Qatar First Bank 26-Oct Due QGMD Qatar German Company for Medical Devices 26-Oct Due SIIS Salam International Investment Limited 29-Oct Due ORDS Ooredoo 29-Oct Due GWCS Gulf Warehousing Company 30-Oct Due MCCS Mannai Corporation 30-Oct Due ERES Ezdan Holding Group 30-Oct Due AHCS Aamal Company 30-Oct Due Source: QSE ( # Financial Year ending March 31 st ) News Qatar Qatar economy on solid track Qatar s economic outlook remains positive, according to the Qatari delegation attending the annual meeting of the International Monetary Fund and the World Bank in Washington, DC. During the sessions, US private and governmental representatives were given an in-depth insight into Qatar s resilient financial and banking sector. Discussions also focused on the continuing and growing opportunities for US investors and businesses in Qatar, and bilateral trade relations between the two countries. Qatar remains one of the largest trading partners of the US in the Middle East region, with imports increasing by 29% in New laws and regulations are being introduced in Qatar to improve the business environment. New rules and regulations are also being introduced to further enhance private sector growth. Minister of Finance, HE Ali Shareef Al Emadi commented, Qatar s budget deficit is expected to decline over the next few years, and economic prospects remain promising. Qatar remains one of the most attractive markets for investors, with favorable investment opportunities across key sectors. Recent measures introduced by our government aim to support continued investment and promote incentives for private companies and international investors looking to expand to the region. (Peninsula Qatar) Qatar Islamic Bank is said to explore Dollar bond, loan options Qatar Islamic Bank is holding talks with international lenders Page 3 of 7

4 to explore funding options, according to sources. The Shari ahcompliant lender is having early discussions about the possibility of a private placement, Dollar bonds or loan, according to the sources. The talks may not result in a deal and the timeline would depend on market conditions, sources said. (Bloomberg) Qatar s cost of living up 0.1% MoM in September Qatar s cost of living, based on consumer price index (CPI), edged up 0.1% MoM this September, mainly on higher prices for clothing and footwear, according to official estimates. However, the CPI inflation was down 0.5% YoY in September this year, the Ministry of Development Planning and Statistics data showed. International Monetary Fund had said during , subsidy cuts, increase in public fees, a moderate recovery in global commodity prices and the implementation of a value added tax are expected to moderate Qatar s inflation over the medium term. Clothing and footwear, which carry 5.11% weight, witnessed 1.8% increase in the index in September 2017 on monthly basis; even as it reported 0.5% YoY decline. Food and beverages, which has a weight of 12.58% in the CPI basket, saw its group index rise 0.8% this September against the previous month s level. The index rose 3.6% YoY. (Gulf-Times.com) Qatar s real estate market to witness turnaround in 2018 The real estate market in Qatar is expected to witness significant growth from the next year as more companies and investors are set to begin their operations in Qatar. Many firms, which are shifting their businesses from the blockading countries, are set to be the major driving force to the real estate market growth, according to experts from the industry. The demand for real estate properties, especially the commercial space and hospitality sector, are set to see fair growth supported by government s important policy decisions such as steadfastness of diversifying the local economy and promoting tourism industry. (Peninsula Qatar) QDB visits Brazil to boost bilateral trade Qatar Development Bank (QDB) led a delegation of Qatari businesses to Sao Paulo to partake in a series of networking events and matchmaking sessions to deepen and strengthen bilateral commercial and economic relations. QDB s export development and promotion arm, Tasdeer, spearheaded the group of local manufacturers, using the close support and coordination of the Embassy of Qatar in Brazil and the Arab Brazilian Chamber of Commerce (ABCC). (Peninsula Qatar) MEC to hold Qatari-Malaysian Economic Forum in Kuala Lumpur The Ministry of Economy and Commerce (MEC), in cooperation with the Ministry of International Trade and Industry in Malaysia will hold the Qatari-Malaysian Economic Forum on October 16 in Kuala Lumpur. The forum comes within the framework of His Highness the Emir Sheikh Tamim Bin Hamad Al Thani s visit to Malaysia, the MEC stated. The event, which provides a valuable dialogue platform, will bring together senior Qatari and Malaysian government officials, investors, and economic experts to gain insight into investment opportunities in the trade, agriculture, tourism, industry, and services sectors, as well as various other economic fields in both countries. (Gulf-Times.com) Qatar to host GDA headquarters Qatar will handle the operational budget of newly formed Global Dryland Alliance (GDA) for two years, and the cost of hosting the headquarters in Doha, according to the Prime Minister and Interior Minister, HE Sheikh Abdullah Bin Nasser Bin Khalifa Al Thani. The Prime Minister was inaugurating GDA s Founding Conference. He said food security is a priority in countries policies and the program of regional and international organizations related to development. He called on the international community, including countries and organizations to support this alliance and contribute to its trust fund to ensure its continuity and guarantee its capability to provide benefit to all. Qatar is convinced by the urgent importance to establish a successful alliance, he added. (Peninsula Qatar) Trade with Qatar growing fast, says Chinese envoy Qatar and China enjoy very strong relationships in various fields, and bilateral economic and trade cooperation is growing fast, according to the Chinese Ambassador, Li Chen. Speaking to the local media in Qatar to introduce the upcoming 19th Congress of the Communist Party of China (CPC) on October 18, he stressed the importance of this event, which takes place every five years in China to lay development plans and strategy for the upcoming five years. He stressed that throughout the past five years China has made great achievements in all fields attaining a growth rate of 7.2%, while the global growth rate stood at 2.6% and 4% for emerging economies. However, in the past two years there has been a slowdown, which is a natural outcome of the global economic stagnation. The Ambassador stressed that the Qatar and China enjoy strong, friendly relationships and good cooperation in various fields that include security, trade, energy, culture, military education, which have great potential for further growth. (Gulf- Times.com) International ECB sees inflation pick up despite weak wages Eurozone s inflation will pick up as the economic recovery continues, despite a disconnect between strong growth and weak wages, according to the European Central Bank s (ECB) Vice President, Vitor Constancio. We remain confident that the continued closing of the output gap will lead inflation to return to our medium-term objective, yet this return remains conditional on a very substantial degree of monetary accommodation, Constancio said. The apparent disconnect between strong economic activity, on the one hand, and low inflation and wages on the other is one of the stand-out characteristics of the ongoing recovery, he added. ECB policymakers are due to decide on October 26, whether to extend stimulus, with investors now expecting an extension of asset purchases but at significantly lower volumes. (Reuters) BoJ's Kuroda warns markets may be complacent of geopolitical risks Bank of Japan s (BoJ) Governor, Haruhiko Kuroda warned that investors may be complacent about geopolitical risks that could trigger financial market turbulence and disrupt an otherwise broadening global economic recovery. Optimism over the global economy have driven world stock prices to multi-decade highs, with investors largely dismissing geopolitical risks like escalating tensions between North Korea and the US. Speaking at a Group of 30 seminars, Kuroda said the global economic recovery was becoming more broad-based with rising trade and factory output spurring capital spending and Page 4 of 7

5 private consumption. However, he said policymakers had to be mindful of factors that could cloud the outlook such as falling productivity, weak inflation in many advanced economies and geopolitical risks. (Reuters) China's economy expected to grow 7% in second-half of this year China s economy is expected to grow 7% in the second half of this year, Japan s central bank Governor said, accelerating from the first six months and defying economists expectations for a slowdown. Many economists expect growth to wane in the coming months due to higher borrowing costs, property purchase curbs and the government-mandated shutdown of some factories to reduce winter air pollution. The driving force behind the growth is mainly rising household consumption, according to a statement published on the People s Bank of China s website, citing the bank s Governor, Zhou Xiaochuan. The government has set a 2017 GDP growth target of around 6.5%. Zhou s estimate implies a full-year expansion of about 6.95%, topping the annual growth rates in (Reuters) Regional IIF: Gulf currency peg to Dollar not under threat The longstanding fixed exchange parity of the Gulf currencies with the Dollar is not under threat as the costs of de-pegging are significant in the short-term, according to the Institute of International Finance (IIF). Highlighting that several empirical studies, including the one recently by the International Monetary Fund that shows the exchange rate has little or no effect on the current balance but that fiscal policy has sizeable impact in highly undiversified oil exporters; it said import and export volume elasticity with respect to real exchange changes are very low, given the limited domestic manufacturing and non-oil tradable goods sectors in the GCC. (Gulf-Times.com) IMF: MENAP s non-oil growth pace to pick up in 2017 The non-oil growth of the countries that belong to the Middle East, North Africa, Afghanistan and Pakistan region (MENAP) is expected to increase to about 2.6% in 2017 from 1.1% in 2016, according to IMF. Growth in MENAP oil exporters is expected to bottom out at 1.7% in 2017, held back by the agreed cut in oil production under the OPEC-led agreement. The growth in oil importers in the region is expected to accelerate to 4.3% this year, well above 3.6% outturn in 2016, supported by stronger domestic demand, structural reforms, and the current upswing in the global economy. (Reuters) Middle East s commercial security market to reach $4.8bn by 2021 Growing demand for streamlined and IP network security systems will double the value of the Middle East s commercial security market over the next four years, with hospitality likely to witness the highest growth of all end-user segments. Analysts Frost & Sullivan (F&S) estimate the market will be worth $4.8bn by 2021, growing at 17% compound annual growth rate (CAGR) from its $2.2bn value in Video surveillance accounts for a 75% of total market share, followed by access control at 15%, and intrusion detection at 10%. (GulfBase.com) ALINMA s net profit rises 73.7% YoY to SR542mn in 3Q2017 Alinma Bank (ALINMA) recorded net profit of SR542mn in 3Q2017, an increase of 73.7% YoY. Total operating income rose 28.2% YoY to SR1,063mn in 3Q2017, primarily due to the increase in income from financing and investments in addition to increase in gain on investments, fee from banking services and exchange income. Total assets stood at SR111.37bn at the end of September 30, 2017 as compared to SR102.94bn at the end of September 30, Loans and advances stood at SR77.81bn (+12.3% YoY), while customer deposits stood at SR87.23bn (+12.8% YoY) at the end of September 30, EPS came in at SR0.97 in 9M2017, as compared to SR0.75 in 9M2016. (Tadawul) SAMA: Saudi Arabia may raise loan-deposit ratio if needed Saudi Arabian Monetary Authority (SAMA), the central bank of Saudi Arabia, may raise the maximum loan-to-deposit ratio for commercial banks if that is needed to help the economy, SAMA s Governor, Ahmed Al Kholifey said. SAMA last raised the ratio in February 2016, to 90% from 85%. The ratio for the banking sector as a whole stood at 81.7% in August, down from 84.8% a year ago. Kholifey also noted that the non-oil sector of the economy grew 0.6% from a year earlier in 1H2017, which he said suggested the non-oil sector would lead economic expansion. Saudi Arabian banks have passed stress tests and are not worried about bad loans, he added. (Reuters) Saudi Aramco denies it is planning to shelve $2tn listing Saudi Aramco dismissed reports that it is considering shelving plans for the worlds biggest ever flotation, with Saudi Aramco saying $2tn listing was on track for next year. Amid concerns about the feasibility of such a huge international listing, the company was favoring a private stake sale to foreign governments, including China. (GulfBase.com) Saudi Arabia s sovereign wealth fund builds $2.4bn stake in Almarai Company Saudi Arabia s sovereign wealth fund became the third-biggest shareholder in Almarai Company as it boosts investments at home and abroad. Public Investment Fund of Saudi Arabia owns 163.2mn shares, or 16.32%, of Saudi Arabia based dairy farm operator and food processor, Almarai Company. The stake is valued at about $2.4bn, according to Bloomberg. (GulfBase.com) Mobily: No financial impact expected from accounting lawsuit Etihad Etisalat (Mobily) said that public prosecution s lawsuit is against executives from former management and not against the company and no financial impact is expected on the company. (Bloomberg) UAE all set to meet Basel III capital rules UAE banks are all set to achieve a minimum common equity Tier-1 capital (CET 1) ratio of 12% and capital adequacy ratio (CAR) of 15.5% by 2019, in line with new Central Bank of the UAE s (CBUAE) regulations introduced in March this year. The capital regulations announced by CBUAE earlier this year require banks to maintain a minimum CET 1 ratio of 7% by 2017, with the counter-cyclical capital buffer (CCB) increasing each year until full implementation in After factoring in these buffers, the CET 1 ratio threshold increases to 8.25% in 2017, 8.88% in 2018 and 9.5% in Even though the central bank has not stipulated the countercyclical buffer, but a range, analysts use the top end in line with prudence and calculate the CET 1 minimum requirement at 9.5% in 2017, 10.76% in 2018 and 12% in (GulfBase.com) Amanat Holdings may seek listing of portfolio companies in next two to four years The portfolio companies of Amanat Page 5 of 7

6 Holdings, a Dubai-based investment firm, are getting closer to being ready for initial public offerings (IPOs) and may seek listings on regional stock exchanges within two to four years, Amanat Holdings Chairman, Faisal Bin Juma Belhoul said. (GulfBase.com) Dubai s total IT trade reaches AED134.5bn in 1H2017 DP World Group s Chairman & CEO and Chairman of Ports, Customs and Free Zone Corporation, Sultan Bin Sulayem revealed the value of Dubai s information technology (IT) trade figures in 1H2017 which is AED134.5bn, including AED86.8bn of imports, and AED47.7bn of exports and re-exports. (GulfBase.com) Dubai s Crown Prince launches HCFI Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council, announced the launch of Hamdan Centre for the Future of Investment (HCFI), a global initiative that aims to promote the contribution of foreign direct investment (FDI) to sustainable development. (GulfBase.com) SIB s net profit rises to AED87.1mn in 3Q2017 Sharjah Islamic Bank (SIB) recorded net profit of AED87.1mn in 3Q2017 as compared to net profit of AED78.8mn in 3Q2016. Income from Islamic financing rose to AED264.2mn in 3Q2017 from AED200.6mn in 3Q2016. Net operating income came in at AED216.5mn in 3Q2017 as compared to AED152.0mn in 3Q2016. Total assets stood at AED37.84bn at the end of September 30, 2017 as compared to AED33.54bn at the end of December 31, Ijarah receivables stood at AED13.56bn, while customers deposits stood at AED22.08bn at the end of September 30, EPS came in flat YoY at AED0.03 in 3Q2017. (ADX) IMF: Kuwait success in economic, financial reforms Kuwait has been successful in implementing the first phase of its economic and financial reforms, which are set to balance and develop the economy of the country, Jihad Azour, the International Monetary Fund s (IMF) Director of the Middle East and Central Asia Department, said. Azour said that Kuwait must continue on this route to transform its financial status from an oil based economy to nation with vast resources and income. The private sector should be given more space to get involved in shaping the national economy. Azour indicated that Kuwait s eagerness to follow up on global financial protocols would have a positive impact, adding that the IMF will provide assistance and guidelines to enable Kuwaitis to pursue their bright future. (GulfBase.com) Kuwait Oil Minister says no impact on oil supply from Iraq, Iran tensions Kuwait s Oil Minister, Essam Al Marzouq said that there were no signs at the moment of oil supply disruptions as a result of the US hardened stance on a nuclear deal with Iran or a dispute in Iraq between Baghdad and Kurdish authorities. (Reuters) Kuwait Finance House s unit sells $60mn assets in Sudan Kuwait Finance House s unit AREF Investment Group sold its majority of assets in Sudan for total value of $60mn. (Reuters) BKIZ posts narrower net loss of OMR3.1mn in 9M2017 Alizz Islamic Bank (BKIZ) recorded net loss of OMR3.1mn in 9M2017 as compared to net loss of OMR3.4mn in 9M2016. Net operating income rose 27.9% YoY to OMR8.6mn in 9M2017. Total assets stood at OMR528.50mn at the end of September 30, 2017 as compared to OMR356.98mn at the end of September 30, Financing receivables stood at OMR420.5mn (+52.4% YoY), while total deposits stood at OMR421.7mn (+56.8% YoY) at the end of September 30, (MSM) NBOB s net profit falls 18.1% YoY to OMR34.5mn in 9M2017 National Bank of Oman s (NBOB) net profit decreased 18.1% YoY to OMR34.5mn in 9M2017. Operating Profit fell 7.5% YoY to OMR53.0mn in 9M2017. Total assets stood at OMR3.45bn at the end of September 30, 2017 as compared to OMR3.50bn at the end of September 30, Loans, advances and financing activities for customers (net) stood at OMR2.69bn (-1.7% YoY), while customers deposits and unrestricted investment accounts stood at OMR2.49bn (+2.9% YoY) at the end of September 30, (MSM) BKDB s net profit falls 5.6% YoY to OMR34.8mn in 9M2017 Bank Dhofar (BKDB) reported 5.6% YoY decline in net profit to OMR34.8mn in 9M2017. Profit from operations fell 9.7% YoY to OMR50.1mn in 9M2017. Total assets stood at OMR4.07bn at the end of September 30, 2017 as compared to OMR3.89bn at the end of September 30, Net Loans and Advances to customers stood at OMR3.18bn (+8.6% YoY), while deposits from customers stood at OMR3.10bn (+11.1% YoY) at the end of September 30, (MSM) ABOB s net profit falls 5.7% YoY to OMR19.8mn in 9M2017 Ahli Bank (ABOB) recorded 5.7% YoY decline in net profit to OMR19.8mn in 9M2017. Operating income rose 1.5% YoY to OMR40mn in 9M2017. Total assets stood at OMR2.0bn at the end of September 30, 2017 as compared to OMR1.89bn at the end of September 30, Loans & advances and Financing (net) stood at OMR1.65bn (+6.2% YoY), while customers deposits stood at OMR1.45bn (+17.3% YoY) at the end of September 30, (MSM) Inflation in Oman at 1.60% in September Oman s YoY inflation, based on the consumer price index for September 2017 touched 1.60%, driven by a rise in transport cost, furnishings, household equipment and routine household maintenance, according to the National Centre for Statistics and Information (NCSI). The major cause of the inflation was 3.45% rise in furnishings, household equipment and routine household maintenance in September this year, compared with the same period of The transport segment witnessed 3.24% rise in prices in September 2017, compared with the same period last year and the education sector increased by 2.84% in September this year from September (GulfBase.com) Sohar Port South expansion project set to get under way in Oman The first phase of a mega expansion of Sohar Port and Freezone, part of a long-term move to grow this vital industrial and maritime hub by as much as 50%, is set to get under way. According to officials, the current expansion project, dubbed Sohar Port South, envisages the dredging and reclamation of a waterfront area (formerly known as the Majees Reclamation Project) on the southern boundaries of the hub. (GulfBase.com) Page 6 of 7

7 Rebased Performance Daily Index Performance Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 QSE Index S&P Pan Arab S&P GCC 0.4% 0.2% 0.0% (0.2%) (0.4%) (0.6%) (0.8%) (0.7%) Saudi Arabia (0.0%) Qatar (0.1%) Kuwait (0.0%) Bahrain 0.2% Oman (0.2%) Abu Dhabi (0.1%) Dubai Source: Bloomberg Source: Bloomberg Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D%* WTD%* YTD%* Gold/Ounce 1, MSCI World Index 2, Silver/Ounce DJ Industrial 22, Crude Oil (Brent)/Barrel (FM Future) S&P 500 2, Crude Oil (WTI)/Barrel (FM Future) (4.2) NASDAQ 100 6, Natural Gas (Henry Hub)/MMBtu (18.2) STOXX LPG Propane (Arab Gulf)/Ton DAX 12, LPG Butane (Arab Gulf)/Ton (10.8) FTSE 100 7, Euro 1.18 (0.1) CAC 40 5, (0.2) Yen (0.4) (0.7) (4.4) Nikkei 21, GBP MSCI EM 1, CHF SHANGHAI SE Composite 3, AUD HANG SENG 28, USD Index (0.8) (8.9) BSE SENSEX 32, RUB (0.6) (1.4) (6.8) Bovespa 76, BRL RTS 1, Source: Bloomberg Source: Bloomberg (*$ adjusted returns) Contacts Saugata Sarkar, CFA Shahan Keushgerian Zaid al-nafoosi, CMT, CFTe Head of Research Senior Research Analyst Senior Research Analyst Tel: (+974) Tel: (+974) Tel: (+974) Mohamed Abo Daff QNB Financial Services Co. W.L.L. Senior Research Analyst Contact Center: (+974) Tel: (+974) PO Box Doha, Qatar Disclaimer and Copyright Notice: This publication has been prepared by QNB Financial Services Co. W.L.L. ( QNBFS ) a wholly-owned subsidiary of Qatar National Bank (Q.P.S.C.). QNBFS is regulated by the Qatar Financial Markets Authority and the Qatar Exchange. Qatar National Bank (Q.P.S.C.) 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. QNBFS accepts no liability whatsoever for any direct or indirect losses arising from use of this report. Any investment decision should depend on the individual circumstances of the investor and be based on specifically engaged investment 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. 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. For reports dealing with Technical Analysis, expressed opinions and/or recommendations may be different or contrary to the opinions/recommendations of QNBFS Fundamental Research as a result of depending solely on the historical technical data (price and volume). 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. This report may not be reproduced in whole or in part without permission from QNBFS. COPYRIGHT: No part of this document may be reproduced without the explicit written permission of QNBFS. Page 7 of 7