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1 QSE Intra-Day Movement 8,660 8,640 8,620 8,600 8,580 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00 Qatar Commentary The QSE Index declined 0.2% to close at 8, The Banks & Financial Services fell 0.8%, while the other indices ended in green. Top losers were Qatar Islamic Insurance Company and Qatar Industrial Manufacturing Company, falling 2.9% and 2.2%, respectively. Among the top gainers, Al Khaleej Takaful Insurance Company gained 4.3%, while Gulf Warehousing Company was up 3.4%. GCC Commentary Saudi Arabia: The TASI Index fell 0.4% to close at 7, Losses were led by the Utilities and Capital Goods indices, falling 2.7% and 0.8%, respectively. Tihama Adv. and Public Relations fell 4.9%, while Etihad Atheeb Telecom. was down 3.1%. Dubai: The DFM Index declined 0.5% to close at 3, The Transportation index fell 3.0%, while the Financial and Investment Services index declined 1.0%. Aramex fell 5.3%, while Al Salam Group Holding was down 3.4%. Abu Dhabi: The ADX benchmark index fell 0.5% to close at 4, The Telecommunication index declined 2.0%, while the Energy index fell 0.9%. National Takaful Co. declined 4.4%, while Abu Dhabi Shipbuilding Co. was down 4.0%. Kuwait: The KSE Index declined 1.1% to close at 6, The Technology index fell 4.0%, while the Industrials index declined 3.7%. Nafais Holding Company fell 20.0%, while Afaq Educational Services Co. was down 18.1%. Oman: The MSM Index fell 0.2% to close at 5, Losses were led by the Services and Financial indices, falling 0.6% and 0.1%, respectively. Al Batinah Dev. Inv. Holding fell 6.7%, while Port Services Corporation was down 2.2%. Bahrain: The BHB Index gained 0.4% to close at 1, The Investment index rose 2.1%, while the Services index gained 0.8%. United Gulf Holding Company rose 9.9%, while Bahrain Telecommunication Company was up 2.0%. QSE Top Gainers Close* 1D% Vol. 000 YTD% Al Khaleej Takaful Insurance Co (40.7) Gulf Warehousing Co (21.6) Qatar General Ins. & Reins. Co Vodafone Qatar ,533.6 (11.3) Investment Holding Group ,138.4 (40.5) Market Indicators 24 Dec Dec 17 %Chg. Value Traded (QR mn) Exch. Market Cap. (QR mn) 474, ,725.3 (0.2) Volume (mn) (8.7) Number of Transactions 2,698 4,289 (37.1) Companies Traded (2.4) Market Breadth 20:15 28:10 Market Indices Close 1D% WTD% YTD% TTM P/E Total Return 14, (0.2) (0.2) (14.6) 13.9 All Share Index 2, (0.2) (0.2) (14.1) 13.8 Banks 2, (0.8) (0.8) (7.6) 11.6 Industrials 2, (20.3) 17.5 Transportation 1, (31.6) 13.0 Real Estate 1, (14.3) 13.3 Insurance 3, (20.8) 23.7 Telecoms 1, (3.8) 21.5 Consumer 4, (17.7) 11.7 Al Rayan Islamic Index 3, (12.2) 15.9 GCC Top Gainers ## Exchange Close # 1D% Vol. 000 YTD% Middle East Healthcare Co. Saudi Arabia (25.2) Boubyan Petrochem. Co. Kuwait Bahrain Telecom. Co. Bahrain (28.7) Vodafone Qatar Qatar ,533.6 (11.3) National Commercial Bank Saudi Arabia , GCC Top Losers ## Exchange Close # 1D% Vol. 000 YTD% Saudi Electricity Co. Saudi Arabia (2.8) 2,222.9 (7.3) Mobile Telecom. Co. Saudi Arabia 7.26 (2.3) 2,441.2 (12.4) Bank Al-Jazira Saudi Arabia (2.3) 2, Etihad Etisalat Co. Saudi Arabia (2.2) 2,803.2 (41.4) Taiba Holding Co. Saudi Arabia (2.1) (11.5) (# in Local Currency) (## GCC Top gainers/losers derived from the S&P GCC Composite Large Mid Cap Index) QSE Top Losers Close* 1D% Vol. 000 YTD% Qatar Islamic Insurance Co (2.9) Qatar Industrial Manufacturing (2.2) 18.0 (5.5) Commercial Bank (1.7) 28.9 (7.9) QNB Group (1.2) 2,749.9 (13.1) Qatari Investors Group (0.8) 61.7 (38.8) QSE Top Volume Trades Close* 1D% Vol. 000 YTD% Vodafone Qatar ,533.6 (11.3) QNB Group (1.2) 2,749.9 (13.1) Investment Holding Group ,138.4 (40.5) Qatar First Bank ,020.1 (41.7) Mazaya Qatar Real Estate Dev (35.0) Regional Indices Close 1D% WTD% MTD% YTD% QSE Top Value Trades Close* 1D% Val. 000 YTD% QNB Group (1.2) 354,740.6 (13.1) Vodafone Qatar ,932.6 (11.3) Investment Holding Group ,885.7 (40.5) Barwa Real Estate Co ,932.1 (2.2) Masraf Al Rayan (0.5) 9, (* in QR) Exch. Val. Traded ($ mn) Exchange Mkt. Cap. ($ mn) P/E** P/B** Dividend Yield Qatar* 8, (0.2) (0.2) 11.5 (17.6) , Dubai 3, (0.5) (0.5) (2.1) (5.2) , Abu Dhabi 4, (0.5) (0.5) 1.0 (4.9) , Saudi Arabia 7, (0.4) (0.4) 2.5 (0.4) , Kuwait 6, (1.1) (1.1) , Oman 5, (0.2) (0.2) (1.1) (12.6) , Bahrain 1, , , Qatar Stock Exchange, Tadawul, Muscat Securities Market and Dubai Financial Market (** TTM; * Value traded ($ mn) do not include special trades, if any) Page 1 of 5

2 Qatar Market Commentary The QSE Index declined 0.2% to close at 8, The Banks & Financial Services index led the loss. The index fell on the back of selling pressure from GCC shareholders despite buying support Qatari and non-qatari shareholders. Qatar Islamic Insurance Company and Qatar Industrial Manufacturing Company were the top losers, falling 2.9% and 2.2%, respectively. Among the top gainers, Al Khaleej Takaful Insurance Company gained 4.3%, while Gulf Warehousing Company was up 3.4%. Volume of shares traded on Sunday fell by 8.7% to 15.7mn from 17.2mn on Thursday. However, as compared to the 30-day moving average of 10.9mn, volume for the day was 44.1% higher. Vodafone Qatar and QNB Group were the most active stocks, contributing 35.3% and 17.5% to the total volume, respectively. Overall Activity Buy %* Sell %* Net (QR) Qatari Individuals 19.85% 18.88% 4,926, Qatari Institutions 73.62% 73.85% (1,178,599.61) Qatari 93.47% 92.73% 3,747, GCC Individuals 0.34% 0.28% 283, GCC Institutions 0.28% 1.74% (7,464,383.53) GCC 0.62% 2.02% (7,180,938.55) Non-Qatari Individuals 5.89% 4.97% 4,702, Non-Qatari Institutions 0.03% 0.28% (1,269,078.45) Non-Qatari 5.92% 5.25% 3,433, Source: Qatar Stock Exchange (* as a % of traded value) Earnings Calendar Tickers Company Name Date of reporting 4Q2017 results No. of days remaining Status CBQK The Commercial Bank 24-Jan Due Source: QSE News Qatar CBQK to hold board meeting on January 24, 2018 to discuss financial statements ended December 31, 2017 The Commercial Bank (CBQK) announced that its board of directors will hold its meeting on January 24, 2018 to discuss the financial results of the bank for the financial year ended December 31, (QSE) Medicare Group holds its extraordinary general assembly meeting on January 7 Medicare Group announced that its board of directors will hold its extraordinary general assembly meeting on January 7, 2018 and in case of non-quorum of the meeting, the second meeting will be held on January 10, (QSE) BRES signs construction contract for new labor city Barwa Real Estate Company (BRES) signed QR1.295bn contract with Insha Company to build a new labor city on Salwa Road. The contract involved construction duration of 12 months, stated in a statement. The project comes as part of the Qatari government s efforts to improve the housing standards of workers in Qatar and meet the needs of the local market in line with the objectives of Qatar National Vision 2030 and the country s preparations for hosting the 2022 World Cup, through developing a sustainable residential environment in terms of quality and security and providing all required services and facilities. (Gulf-Times.com) KPMG: Qatari banks need to prepare for Basel IV requirements Banks in Qatar need to prepare now for the introduction of revised standards recently released by the Basel Committee, according to KPMG in Qatar, noting that Basel IV will have a significant impact on capital ratios, strategy, pricing, processes and disclosure. Given the Qatar Central Bank s (QCB) proactive adoption of Basel III, it is likely that Basel IV will be adopted over time, KPMG in Qatar stated. KPMG s Director and Head across the Middle East and South Asia (MESA), Steve Punch said, These new Basel IV rules will redefine how banks manage risk, particularly credit risk. This is significant and relevant in countries like Qatar, where the QCB requires them to calculate regulatory capital using the Basel standardized approaches. Punch was in Qatar to address senior finance and risk professionals from the financial services industry as part of KPMG in Qatar s Freshly brewed seminar series. Punch noted that the Basel IV standardized approaches will require banks to review their lending portfolios to identify higher risk customers and that generally, higher risk usually contributes to higher interest rates and capital charges. (Gulf-Times.com) South Korean startups explore business opportunities in Qatar Korea Startups Association (Kstartups), the South Korean partner of Qatar Business Incubation Center (QBIC), explored business potential in Qatar. In this regard, Kstartups visited the Qatar Financial Center (QFC), aiming to help their Korean partners in assessing available business opportunities to foreign investors. Kstartups had signed a memorandum of understanding with QBIC earlier in December 2016 and is currently in Doha along with nine Korean startups, to participate in QBIC s Demo Day 9 and meet with all the local stakeholders. QFC Authority s Chief Marketing and Corporate Communications Officer, Yousef Abdullah Fakhroo said, This is an ideal time for companies to expand to Qatar as foreign companies and firms have an abundance of opportunities to service a market that has proven its resilience and resolve. (Gulf-Times.com) Qatar and Ghana sign pacts, to boost ties in various fields HH the Emir Sheikh Tamim Bin Hamad Al Thani and Ghanaian President Nana Akufo-Addo held official talks at the presidential palace in Accra. The President reiterated his country s keenness to develop cooperation with Qatar, especially in the energy, infrastructure, aviation, sports, youth and food security fields. The two sides also discussed the overall regional and international situation, especially in the Page 2 of 5

3 Middle East and Africa. Later the two leaders witnessed the signing of a number of agreements and memorandums of understanding. The agreements cover investments, aviation and youth and sports. (Gulf-Times.com) Deal to deliver digital transformation in Qatar MEEZA, an established Qatari Data Services Provider, Fujitsu Services Ltd. and Vauban Group signed a Memorandum of Understanding (MoU) to enter into discussions to identify opportunities to provide world class information communication and technology services to Qatar. In collaboration with MEEZA, a Qatar Foundation subsidiary, this MoU will allow the parties to work to support Qatar s National Vision 2030 by leveraging the Fujitsu Human Centric Innovation approach to delivering world class digital transformation and technology services. The MoU will examine how to create significant market opportunities for a full range of technology products, solutions and services. The combination of MEEZA S existing state-of-the-art data centre facilities, Vauban s innovation and Fujitsu s Infrastructure, Industry and Business Technology Solutions will bring benefit to clients, with a focus on meeting the needs of the Financial Services, Healthcare and Government. (Peninsula Qatar) International China likely to set M2 growth target at record low next year China is likely to set its 2018 money growth target at an alltime low of around 9% to curb debt risks and contain asset bubbles, the official China Daily reported, citing economists involved in high-level policy discussions. Financial risks have become the biggest threat to the country s economic stability in the medium and long term, the China Daily stated. In the past year, deleveraging efforts in the financial system have pushed broad M2 money supply growth to its lowest since records began in In November, M2 expanded 9.1% from a year earlier, below the government s full-year target of around 12%. The central bank stated that slowing M2 growth could be a new normal as the government cracks down on riskier banking activities. (Reuters) Russian finance minister sees economy growing 1.8-2% in 2017 Russia s economy is expected to grow between 1.8-2% this year, according to Russian Finance Minister, Anton Siluanov. Russia s GDP contracted by 0.2% in Authorities stated the growth could reach 2% this year, later adding it could top 2%. (Reuters) Indian economy set to clock 7% growth Indian economy may reach 7% growth in 2018 while recovering from the lingering effects of demonetization and GST, industry chamber ASSOCHAM stated. After disruptions from the lingering effects of demonetization and GST roll-out, the Indian economy may reach 7% growth in 2018 with government policies tilting towards the stress-ridden rural landscape in the penultimate year before the Lok Sabha elections, according to the industry body s Year-Ahead Outlook. Against GDP growth of 6.3% in the second quarter of , the economic expansion may reach the crucial 7% mark by the end of September 2018 quarter, while inflation may range between 4-5.5% towards the second half of the next calendar year with the monsoon being a key imponderable. ASSOCHAM S President, Sandeep Jajodia said the projections were based on the assumption of stability in government policies, good monsoons, pick-up in industrial activity and credit growth as also stability in the foreign exchange rates. (Qatar Tribune) Regional OPEC and non-opec compliance with oil cuts reaches 122% in November OPEC and non-opec compliance with global output cuts reached highest monthly level since agreement took effect in January. Kuwait s Oil Minister, Bakheet Al Rashidi said, This is a strong signal to the oil market that OPEC and non- OPEC participating are committed to the success of this agreement and are willing to do everything necessary to restore the oil market balance. We expect oil demand in 2018 to increase by 1.51mn bpd compared to this year. (Bloomberg) Middle East to award $14bn hotel projects next year More than $14bn worth of hotel project contracts will be awarded in 2018 in Middle East region, according to MEED Projects. The value of new hotel investments in the MENA region could hit a record high in After a relatively subdued 2017 up to end of November which has seen $5.45bn worth of new hotel construction contracts awarded, the value of hotels due to be awarded next year is more than $14bn. This total would comfortably exceed the $8.5bn awarded in 2016 and the previous record of $11.9bn awarded in 2015, said Ed James, Director of Content and Analysis at MEED Projects. Moody s: GCC s banking sector performance to be resilient in 2018 The banking sector in the GCC is expected to deliver a stable performance in 2018, reflecting strong financial fundamentals, particularly in the largest banking systems such as the UAE and Saudi Arabia, according to rating agency Moody s. While slow economic growth, fiscal and geopolitical risks are expected to pose challenges to profitability and loan quality of the region s banks, the raging agency expects strong capitalization levels with high loan-loss reserves providing banks strong loss-absorption capacity. Moody s forecasts that real gross domestic product (GDP) growth in the region will pick up slightly, to around two percent in 2018 from zero peecent in Saudi Arabia s real estate sales rise 37.1% MoM Saudi Arabia s Ministry of Justice reported that real estate sales totaled at SR23.8bn (+37.1% MoM, +7.7% YoY) in month ending 18 December Residential sales stood at SR16.2bn, while commercial sales reached SR7.7bn. (Bloomberg) Tadawul to adjust price limit validation on incoming orders The Saudi Arabian Stock Exchange (Tadawul) is planning to adjust the price limit validation on incoming orders for shares starting from January 21, (Bloomberg) Saudi Arabia raises SR4.78bn from Sukuk tap offering Saudi Arabia s Ministry of Finance raised SR4.78bn from the second tap offering of October issuance under its Riyal-denominated Sukuk program. (Bloomberg) Dubai-Japan nine-month non-oil trade hits AED31bn The value of non-oil foreign trade between Dubai and Japan reached AED31bn in 9M2017 compared to a total of AED44bn during the whole of 2016, according to the Director of the Dubai Customs, Ahmed Mahboob Musabih. Kuwait secures LNG deal as gulf energy exporters hunt for gas Kuwait struck a 15-year deal with Royal Dutch Shell for Page 3 of 5

4 liquefied natural gas (LNG), locking in supplies as neighbors in the oil rich Gulf consider their own import strategies. The UAE and Kuwait are the only importers of LNG in the region, with Bahrain joining the club in (Bloomberg) Kuwait Exchange stops Justice Ministry s plan to sell Zain Group s shares Kuwait Exchange stopped execution of sale of a total of 16.8mn of Zain Group s shares by the Ministry of Justice on the order of Capital Markets Authority (CMA). Planned sales were divided into six orders of 2.8mn shares each on December 24-28, 2017 and January 2, (Bloomberg) PDO to deduct 1.2% of contract value to fund job creation Petroleum Development Oman (PDO) revealed that a levy, amounting to 1.2% of the value of every contract awarded by the company to contractors and vendors, is helping creating employment and training opportunities for Omanis. The levy applies to contracts raised after April 1, 2016, as well as request-for-quote purchase orders. VAT will not raise import cost of UAE s products in Oman Imports from the UAE and Saudi Arabia, which are going to introduce value added tax (VAT) on January 1, will not cost more for Omani firms during the interim period until the Oman introduces the new tax. As per the framework agreement signed by GCC states last year, exports to a GCC country that has not introduced VAT are considered as zero rated. CMA clears OMR5mn rights issue of National Pharmaceuticals Industries National Pharmaceutical Industries Company is planning to raise its capital by OMR5mn by way of a rights issue. The company received approval from the Capital Market Authority (CMA) for the rights issue and accordingly, 50mn shares will be issued to the existing shareholders at a price of 102 baisas per share. The board of directors of the company approved a proposal to raise the company s capital from OMR5mn to OMR10mn. The CMA approved the rights issue prospectus based on the request of the company s management and in compliance with all the requirements of the issue. VIVA Bahrain completes rival Menatelecom acquisition VIVA Bahrain, a leading telecom services operator in the Kingdom entered into an agreement with Kuwait Finance House - Bahrain to acquire 100% stake in its rival internet service provider Menatelecom. This acquisition will significantly enhance VIVA Bahrain s position in both the consumer broadband and enterprise markets. Bank ABC to arrange $75mn facility for Is Finansal Kiralama Bahrain s Arab Banking Corporation (Bank ABC) said Is Finansal Kiralama mandated Bank ABC to arrange on its behalf $75mn 2-year and 5-day dual currency syndicated term loan facilities. (Reuters) Page 4 of 5

5 Rebased Performance Daily Index Performance 0.6% 0.0% 0.4% (0.6%) (1.2%) (0.4%) (0.2%) (1.1%) (0.2%) (0.5%) (0.5%) 60.0 Nov-13 Nov-14 Nov-15 Nov-16 Nov-17 QSE Index S&P Pan Arab S&P GCC Saudi Arabia Qatar Kuwait Bahrain Oman Abu Dhabi Dubai Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D%* WTD%* YTD%* Gold/Ounce 1, MSCI World Index 2, (0.1) Silver/Ounce DJ Industrial 24, (0.1) Crude Oil (Brent)/Barrel (FM Future) S&P 500 2, (0.0) Crude Oil (WTI)/Barrel (FM Future) NASDAQ 100 6, (0.1) Natural Gas (Henry Hub)/MMBtu (0.3) (29.1) STOXX (0.2) LPG Propane (Arab Gulf)/Ton (0.1) DAX 13, (0.4) LPG Butane (Arab Gulf)/Ton (10.2) FTSE 100 7, (0.1) Euro 1.19 (0.1) CAC 40 5, (0.5) Yen (0.0) 0.6 (3.1) Nikkei 22, GBP 1.34 (0.2) MSCI EM 1, CHF SHANGHAI SE Composite 3, AUD HANG SENG 29, USD Index (0.6) (8.7) BSE SENSEX 33, RUB (0.2) (0.7) (4.7) Bovespa 75, (0.6) BRL 0.30 (0.9) (1.3) (2.5) RTS 1, (1.1) (1.4) (*$ adjusted returns) Contacts Saugata Sarkar, CFA, CAIA 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 5 of 5