10,130 10,120 10,110 10,100 10,090 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00

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1 QSE Intra-Day Movement 10,130 10,120 10,110 10,100 10,090 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00 Qatar Commentary The QSE Index rose 0.1% to close at 10, Gains were led by the Transportation and Real Estate indices, gaining 0.8% and 0.5%, respectively. Top gainers were Al Meera Consumer Goods Co. and Islamic Holding Group, rising 2.6% each. Among the top losers Ahli Bank fell 4.3%, while Zad Holding Co. was down 2.9%. GCC Commentary Saudi Arabia: The TASI Index rose 0.7% to close at 6, Gains were led by the Consumer Durables and Media indices, rising 2.8% and 2.1%, respectively. Abdullah A. M. Al-Khodari Sons Co. rose 10.0%, while Al Sorayai Trading & Ind. was up 9.7%. Dubai: The DFM Index declined marginally to close at 3, The Services index fell 1.1%, while the Transportation index declined 0.8%. Marka fell 10.0%, while Arabtec Holding was down 5.5%. Abu Dhabi: The ADX benchmark index rose 0.4% to close at 4, The Consumer Staples index gained 1.4%, while the Services index rose 1.0%. Ras Al-Khaimah Cement Co. gained 9.0%, while Sudan Telecommunication Co. was up 6.6%. Kuwait: The KSE Index rose 0.3% to close at 6, The Consumer Goods index gained 1.7%, while the Industrial index rose 0.7%. Bayan Investment Co. gained 9.3%, while Gulf Franchising Holding Co. was up 8.6%. Oman: The MSM Index rose 0.3% to close at 5, Gains were led by the Financial and Services indices, rising 0.5% and 0.1%, respectively. Oman Orix Leasing rose 10.0%, while Al Madina Takaful was up 2.9%. Bahrain: The BHB Index gained 0.1% to close at 1, The Commercial Banks index rose 0.3%, while the Investment index gained 0.1%. Trafco Group rose 1.6%, while National Bank of Bahrain was up 1.5%. QSE Top Gainers Close* 1D% Vol. 000 YTD% Al Meera Consumer Goods Co (10.5) Islamic Holding Group Aamal Co (1.7) Barwa Real Estate Co , Commercial Bank (1.1) Market Indicators 16 May May 17 %Chg. Value Traded (QR mn) Exch. Market Cap. (QR mn) 539, ,292.9 (0.2) Volume (mn) Number of Transactions 3,112 2, Companies Traded Market Breadth 19:12 24:13 Market Indices Close 1D% WTD% YTD% TTM P/E Total Return 16, All Share Index 2, (0.0) 0.0 (0.1) 14.9 Banks 2, (0.3) (0.4) Industrials 3, (0.2) 0.1 (6.0) 18.7 Transportation 2, (16.5) 12.6 Real Estate 2, Insurance 4, (2.4) 18.3 Telecoms 1, Consumer 5, (0.7) Al Rayan Islamic Index 4, GCC Top Gainers ## Exchange Close # 1D% Vol. 000 YTD% F. A. Alhokair & Co. Saudi Arabia Aviation Lease & Fin. Kuwait Saudi British Bank Saudi Arabia (9.8) Saudi Research & Mark. Saudi Arabia (13.3) Emaar Economic City Saudi Arabia (7.2) GCC Top Losers ## Exchange Close # 1D% Vol. 000 YTD% Bank of Sharjah Abu Dhabi 1.31 (9.0) (7.7) Nama Chemicals Co. Saudi Arabia (7.3) 1,181.1 (42.9) Arabtec Holding Co. Dubai 0.72 (5.5) 25,927.3 (45.0) Drake & Scull Int. Dubai 0.36 (5.0) 50,660.0 (24.6) Ahli Bank Qatar (4.3) 11.0 (12.6) 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) QSE Top Losers Close* 1D% Vol. 000 YTD% Ahli Bank (4.3) 11.0 (12.6) Zad Holding Co (2.9) 0.1 (16.9) Vodafone Qatar 9.20 (2.0) 2,398.0 (1.8) National Leasing (1.4) Industries Qatar (1.2) (11.8) QSE Top Volume Trades Close* 1D% Vol. 000 YTD% Vodafone Qatar 9.20 (2.0) 2,398.0 (1.8) Barwa Real Estate Co , Ezdan Holding Group , Mazaya Qatar Real Estate Dev (10.5) Masraf Al Rayan Regional Indices Close 1D% WTD% MTD% YTD% QSE Top Value Trades Close* 1D% Val. 000 YTD% Barwa Real Estate Co , Vodafone Qatar 9.20 (2.0) 22,197.5 (1.8) Industries Qatar (1.2) 20,915.0 (11.8) Ezdan Holding Group , Masraf Al Rayan , Source: Bloomberg (* in QR) Exch. Val. Traded ($ mn) Exchange Mkt. Cap. ($ mn) P/E** P/B** Dividend Yield Qatar* 10, (3.0) , Dubai 3, (0.0) (1.3) (1.1) (4.4) , Abu Dhabi 4, (0.6) , Saudi Arabia 6, (1.0) (3.7) , Kuwait 6, (1.7) , Oman 5, (1.5) (6.1) , Bahrain 1, (1.7) , 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 5

2 Qatar Market Commentary The QSE Index rose 0.1% to close at 10, The Transportation and Real Estate indices led the gains. The index rose on the back of buying support from non-qatari shareholders despite selling pressure from Qatari and GCC shareholders. Al Meera Consumer Goods Co. and Islamic Holding Group were the top gainers, rising 2.6% each. Among the top losers Ahli Bank fell 4.3%, while Zad Holding Co. was down 2.9%. Volume of shares traded on Tuesday rose by 0.6% to 8.6mn from 8.5mn on Monday. However, as compared to the 30-day moving average of 8.9mn, volume for the day was 3.8% lower. Vodafone Qatar and Barwa Real Estate Co. were the most active stocks, contributing 28.0% and 19.6% to the total volume, respectively. Overall Activity Buy %* Sell %* Net (QR) Qatari Individuals 45.13% 53.78% (21,052,366.83) Qatari Institutions 21.52% 14.08% 18,129, Qatari 66.65% 67.86% (2,923,297.57) GCC Individuals 0.86% 1.44% (1,402,293.69) GCC Institutions 0.71% 3.19% (6,042,957.40) GCC 1.57% 4.63% (7,445,251.09) Non-Qatari Individuals 7.38% 8.20% (1,987,512.98) Non-Qatari Institutions 24.39% 19.31% 12,356, Non-Qatari 31.77% 27.51% 10,368, Source: Qatar Stock Exchange (* as a % of traded value) Earnings Releases, Global Economic Data and Earnings Calendar Earnings Releases Company Market Currency Revenue (mn) % Change Operating Profit % Change Net Profit % Change 1Q2017 YoY (mn) 1Q2017 YoY (mn) 1Q2017 YoY Dubai Islamic Ins. and Reins. Co. Dubai AED % Islamic Arab Insurance Company Dubai AED 4.2 N/A Al Sagr National Insurance Co. Dubai AED % % Drake & Scull International Dubai AED % N/A N/A Oman Insurance Company Dubai AED 1, % % ORIENT Insurance Dubai AED % % Sudatel Telecom. Group Company Abu Dhabi USD % % % Sharjah Insurance Company Abu Dhabi AED % 9.6 N/A Fujairah National Insurance Co. Abu Dhabi AED % % United Insurance Co. Abu Dhabi AED -3.2 N/A Arab Insurance Group Bahrain USD % % Nass Corporation # Bahrain BHD 40, % % Source: Company data, DFM, ADX, MSM, TASI, BHB. ( # Values in 000) Global Economic Data Date Market Source Indicator Period Actual Consensus Previous 05/16 US Federal Reserve Industrial Production MoM April 1.0% 0.4% 0.5% 05/16 UK UK Office for National Statistics CPI MoM April 0.5% 0.4% 0.4% 05/16 UK UK Office for National Statistics CPI YoY April 2.7% 2.6% 2.3% 05/16 France INSEE CPI MoM April 0.1% 0.1% 0.1% 05/16 France INSEE CPI YoY April 1.2% 1.2% 1.2% Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted) Earnings Calendar Tickers Company Name Date of reporting FY results No. of days remaining Status VFQS Vodafone Qatar 17-May-17 0 Due Source: QSE Page 2 of 5

3 News Qatar QIBK sets final spread for dollar Sukuk Qatar Islamic Bank (QIBK), the Gulf state s largest Islamic lender by assets, has set at 135 basis points (bps) over mid-swaps the final spread for its planned five-year Dollar Sukuk, a document issued by one of the leading banks and seen by Reuters showed on May 16. Initial price guidance was released earlier in the day at bps over mid-swaps, before being tightened to bps over the benchmark. Order books for the senior unsecured Islamic bond, part of a $3bn Sukuk program, topped $2.1bn, the document showed. (Reuters) QSE to bring in new disclosure tools to aid its listed companies Qatar Stock Exchange (QSE) will soon introduce new tools to assist listed companies in unifying the disclosure format and procedures, a move that could greatly enhance both retail and institutional investor s confidence. This was disclosed by QSE Chief Executive Officer (CEO) Rashid bin Ali al-mansoori at a workshop on Disclosure Practices of Qatari Listed Companies, which was attended by representatives from the QSE, Qatar Financial Market Authority (QFMA), Qatar Central Securities Depository (QCSD) and the listed companies. What matters to investors primarily are transparency, efficient disclosure process and access to information. Our consultative meetings with local and international brokers, funds and investment firms have assured the significance of access to executive management and the availability of information on the company s plans, liquidity and dividends, are important factors on which investment decisions are based, Al Mansoori said. QSE has voluntarily committed to advancing sustainability performance, transparency, and governance practices as part of its efforts in the United Nations Sustainable Stock Exchanges initiative. (Gulf-Times.com) Qatar s economy improves connectivity with global economy Qatar s economy has improved its connectivity with the global economy, UN High Representative for the Alliance of Civilizations Nassir Abdulaziz al-nasser said. He said the Chinese Silk Road initiative was impressive, and it brought people from various countries to work together and contribute to globalization. Al-Nasser, who was in China recently, was the guest of honor at the Doha Bank s knowledge sharing event on Regulatory changes and opportunities. He highlighted that the world is coming together and noted we live in a global village and we are global citizens. (Gulf-Times.com) Real estate trading volume in Qatar exceeds QR405mn Real estate transaction in Qatar during the period (May 7 11) were worth QR405,462,386, official data showed. The weekly bulletin released by the real estate registration department at the Ministry of Justice said that the types of real estate traded included plots of land, houses and apartment buildings. The majority of the trading took place in Al Da'ayen, Doha, Al Khor, Al Dhakira, Al Rayyan, Umm Salal, Al Shamal, and Al Wakra. (Qatar Tribune) Nakilat achieves over 37% Qatarization Nakilat has achieved more than 37% Qatarization, thus bagging the award for localization at the recently held Energy and Industry sector 2017 annual Qatarization review meeting. Nakilat was awarded in the supporting Qatarization category, for the company s demonstration of successfully implemented human resource strategies towards this achievement. There were four award categories in the event, each recognizing a local company that had demonstrated excellence in the support and liaison with the education sector, supporting Qatarization, support for training and development as well as supporting student s sponsorships. (Gulf-Times.com) International US factory output rises in April US manufacturing production recorded its biggest increase in more than three years in April, bolstering the view that economic growth picked up early in the second quarter despite a surprise decline in homebuilding. The broad strength in factory output reported by the Federal Reserve on May 16 added to labor market data in suggesting the growth slowdown in the first quarter was temporary, that may allow the US central bank to raise interest rates next month. Manufacturing production jumped 1.0% in April, the biggest increase since February 2014, after falling 0.4% in March, the Fed said. The increase, which outstripped economists expectations for a 0.3% gain, reflected a 5.0% rebound in the production of motor vehicles and parts. There were also healthy increases in the output of machinery, fabricated metal products, appliances and furniture, business equipment and chemical products. (Reuters) Eurozone expands trade surplus despite protectionist calls The Eurozone increased its trade surplus with the rest of the world in March with both exports and imports rising markedly, in a sign that global commerce has so far not been hampered by protectionist calls. The European Union statistics office Eurostat said the 19-country currency area recorded a 30.9bn Euro surplus in March in its goods trade balance with states outside the bloc, according to data not adjusted for seasonal factors. The March surplus is nearly double that of February when the bloc had a positive balance of 17.8bn Euros, and also higher than a year earlier when the surplus was 28.2bn Euros. The 19-country bloc, driven by Germany, expanded its exports by 13% YoY in March to a total value of 202.3bn Euros, unadjusted figures showed. (Reuters) German investor morale hits near two-year high as risks fade The mood among German investors improved further in May to reach its highest since July 2015, a survey showed, in a further sign that political uncertainties which clouded the growth outlook for Europe's biggest economy are evaporating. The Mannheim-based ZEW research institute said its monthly survey showed its economic sentiment index rose to 20.6 from 19.5 points in the previous month. The Reuters consensus forecast was for a rise to The positive sentiment reading came as the economy picked up speed in 1Q2017. Companies invested more, consumers and the state continued to spend and exports soared despite the threat of rising protectionism. Germany's economy, Europe's biggest, grew by 0.6% in the quarter from the quarter before, when it expanded 0.4%, the Federal Statistics Office said. (Reuters) Japan s core machinery orders fall short of expectations in March Japan's core machinery orders fell short of expectations in March from the previous month and companies forecast a decline in investment over April-June, casting doubt on Page 3 of 5

4 whether recent signs of economic recovery will be sustainable. Core orders, a highly volatile data series regarded as a leading indicator of capital spending in the coming six to nine months, rose 1.4% in March from the previous month, Cabinet Office data showed. This undershot the median estimate of 2.1% rise expected by economists in a Reuters poll. (Reuters) Regional GCC's combined GDP may exceed $1.5tn The fiscal situation in the GCC region is expected to improve following sustained reforms in spending and subsidy. Doha Bank CEO, Dr R Seetharaman said, This part of the world is going through a transformation. Last year all the six GCC states put together were running on fiscal deficit and current account deficit. However, this year, GCC economies GDP at current prices will exceed $1.5tn and current account surplus will be accounting for 2% of GDP. said Dr R Seetharaman. The fiscal situation is expected to improve across the GCC following sustained reforms in the form of spending cuts and subsidy reforms, aided by reviving oil prices. Qatar s sustainability can never be challenged. Problems are manageable and controllable, we have reasons to believe that Qatar can report not less than 3.5% growth even in the current context, he said addressing a forum on Regulatory Changes and Opportunities organized by Doha Bank, recently. (Peninsula Qatar) Saudi Arabia s sale of the century lures foreign investment banks, PE firms One of the world's largest privatization programs is drawing foreign investment banks and private equity (PE) firms to Saudi Arabia, despite the prospect of low fees and an uncertain regulatory environment. KKR is among the US based PE firms joining regional companies such as Abu Dhabi's Gulf Capital in the search for opportunities from the government's plan to sell off around $200bn in assets on top of a stake in Saudi Aramco. Banks are also beefing up their operations. Citigroup obtained a Saudi Arabian investment banking license last month and Goldman Sachs is looking into obtaining a Saudi Arabia equities license. Credit Suisse intends to apply for a full banking license and JPMorgan is adding bankers. (Bloomberg) Saudi Aramco and Norinco line up $10bn refinery plan China s North Industries Group Corp (Norinco) has signed a framework agreement with Saudi Aramco to build a refinery and chemicals complex in northeast China. The planned projects, including a 300,000 barrels per day refinery and an ethylene complex with annual capacity of 1mn tons, are to be built at an estimated cost of $10.09bn. (Reuters) TAV in talks with banks to finance development of three Saudi Arabian airports Turkey-based TAV Airports Holding s President, Mustafa Sani Şener said that the company is in talks with banks to obtain $250mn of financing needed for the development of three airports in Saudi Arabia. TAV Airports Holding, in partnership with the local Al Rajhi Holding Group, was selected over the last couple of months to operate Saudi Arabia's Yanbu, Qassim and Hail international airports for 30 years. Meanwhile, the Turkish company has completed the buyout of construction conglomerate Saudi Oger's stake in the consortium behind Saudi Arabia's Medina international airport. (Reuters) IMF: UAE economic growth set to rebound According to the International Monetary Fund (IMF) mission, the UAE is adjusting well to the new oil market realities and the country's economic growth is set to rebound. The IMF mission, led by Natalia Tamirisa, said, Non-oil growth is projected to rise to 3.3% in 2017, reflecting more gradual fiscal consolidation, stronger global trade, and higher Expo 2020 investment. Oil GDP is projected to decline by 2.9% reflecting agreed OPEC cuts in oil production. As a result, overall growth will ease to about 1.3% in 2017, before recovering to above 3% over the medium term. Average inflation is projected to rise to 2.2% in With the prospects of firmer oil prices, the government s budget deficit is projected to decline to 4.5% of GDP and the current account surplus to improve to 2.4% of GDP in 2017." (Reuters) Future Group ties up with UAE firm for Gulf foray India's Future Group said it had tied up with UAE's Khimji Ramdas Group to sell garments in Oman, and eventually across the Gulf region, in its first international foray. The Indian consumer goods firm, which sells everything from electronic goods and groceries to fashion apparel, plans to initially open 4 to 5 stores in Oman, and eventually 17 to 18. (Reuters) Foreign investors buy AED1.87bn of shares in ADX in April Foreign investors buy value in April 2017 reached AED1.87bn, representing 56.3% of total shares traded, whereas their sales stood at AED1.66bn, representing 50.1% of total shares traded. Subsequently, the net foreign investment in April reached AED206mn. The institutional investments in April reached AED252.4mn. (GulfBase.com) Oman s corporate sector posts OMR142mn profit 1Q2017 Oman s listed companies have reported a drop in profit, at OMR142mn for 1Q2017 compared to OMR218mn in 1Q2016. According to sources, a subdued business environment in major sectors in Oman, along with cost escalation, has resulted in lower net earnings of listed firms. United Securities Head of research, Joice Mathew said, A declining business trend due to low oil prices and slowing down of government spending have resulted in the fall in profit. This was accelerated by an increase in tax rates, utility charges and government fees. (GulfBase.com) Bahrain s foreign-exchange reserves decline According to the Central Bank of Bahrain (CBB), the Kingdom's foreign-exchange reserves fell to just $1.7bn, equivalent to only around one month of import cover, in February. The CBB's foreignexchange reserves have fallen consistently in recent months, down from $2.9bn in October and a recent peak of $5.8bn at 2014-end, as a result of ongoing pressure on Bahrain's peg to the US Dollar. Bahrain still relies on the oil sector for around 60% of its export revenue, even since the mid-2014 collapse in oil prices, in turn pushing the current account into deficit and increasing currency speculation. (Bloomberg) Page 4 of 5

5 Saudi Arabia Qatar Kuwait Bahrain Oman Abu Dhabi Dubai Rebased Performance Daily Index Performance % 0.7% % 0.0% (0.5%) 0.1% 0.3% 0.1% 0.3% 0.4% (0.0%) 70.0 Apr-13 Apr-14 Apr-15 Apr-16 Apr-17 QSE Index S&P Pan Arab S&P GCC Source: Bloomberg Source: Bloomberg Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D%* WTD%* YTD%* Gold/Ounce 1, MSCI World Index 1, Silver/Ounce DJ Industrial 20, (0.0) Crude Oil (Brent)/Barrel (FM Future) (0.3) 1.6 (9.1) S&P 500 2, (0.1) Crude Oil (WTI)/Barrel (FM Future) (0.4) 1.7 (9.4) NASDAQ 100 6, Natural Gas (Henry Hub)/MMBtu 3.23 (1.2) (0.6) (12.3) STOXX LPG Propane (Arab Gulf)/Ton (0.2) 1.0 (12.2) DAX 12, LPG Butane (Arab Gulf)/Ton # (28.9) FTSE 100 7, Euro CAC 40 5, Yen (0.6) (0.2) (3.3) Nikkei 19, GBP MSCI EM 1, CHF SHANGHAI SE Composite 3, AUD HANG SENG 25, (0.1) USD Index (0.8) (1.2) (4.0) BSE SENSEX 30, RUB (0.9) (8.1) Bovespa 68, BRL RTS 1, (0.6) 1.2 (3.4) Source: Bloomberg ( # Market closed on May 16, 2017) Source: Bloomberg (*$ adjusted returns) Contacts Saugata Sarkar Shahan Keushgerian Zaid al-nafoosi, CMT, CFTe Head of Research Senior Research Analyst Senior Research Analyst Tel: (+974) Tel: (+974) Tel: (+974) saugata.sarkar@qnbfs.com.qa shahan.keushgerian@qnbfs.com.qa zaid.alnafoosi@qnbfs.com.qa Mohamed Abo Daff QNB Financial Services Co. W.L.L. Senior Research Analyst Contact Center: (+974) Tel: (+974) PO Box mohd.abodaff@qnbfs.com.qa 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 5 of 5