9,660 9,640 9,620 9,600 9,580 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 9,660 9,640 9,620 9,600 9,580 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00 Qatar Commentary The QSE Index declined 0.5% to close at 9, Losses were led by the Real Estate and Telecoms indices, falling 3.9% and 0.6%, respectively. Top losers were Ezdan Holding Group and Masraf Al Rayan, falling 6.4% and 2.0%, respectively. Among the top gainers, Dlala Brokerage & Investment Holding Company gained 2.8%, while The Group Islamic Insurance Company was up 0.9%. GCC Commentary Saudi Arabia: The TASI Index fell 0.3% to close at 7, Losses were led by the Energy and Food & Beverages indices, falling 1.7% and 1.4%, respectively. National Shipping Co. declined 3.8%, while Saudi Indian Co. for Coop. Ins. was down 3.0%. Dubai: The DFM General Index declined 0.8% to close at 2, The Transportation index fell 1.4%, while the Real Estate & Const. index declined 1.1%. Al Salam Sudan fell 7.5%, while Ekttitab Holding Company was down 6.5%. Abu Dhabi: The ADX General Index rose 1.2% to close at 4, The Consumer Staples index gained 3.7%, while the Inv. & Financial Services index rose 3.1%. Sharjah Cement & Indus Dev. Co. gained 8.7%, while Agthia Group was up 5.6%. Kuwait: The Kuwait Main market Index declined 0.5% to close at 4, The Consumer Services index fell 1.9%, while the Oil & Gas index declined 1.4%. Kuwait And Middle East Financial Inv. fell 9.0%, while Hilal Cement Co. was down 8.3%. Oman: The MSM 30 Index rose 0.4% to close at 4, Gains were led by the Industrial and Services indices, rising 0.6% and 0.3%, respectively. Voltamp Energy rose 6.2%, while Galfar Engineering and Con. was up 4.0%. Bahrain: The BHB Index gained 0.2% to close at 1, The Services index rose 0.9%, while the Commercial Banks index gained 0.2%. Seef Properties rose 1.8%, while Bahrain Telecommunication Co. was up 1.6%. QSE Top Gainers Close* 1D% Vol. 000 YTD% Dlala Brokerage & Inv. Holding Co The Group Islamic Insurance Co (2.7) Qatar National Cement Company (11.0) Al Khalij Commercial Bank (22.5) Qatar Navigation Market Indicators 15 Aug Aug 18 %Chg. Value Traded (QR mn) (22.7) Exch. Market Cap. (QR mn) 526, ,863.7 (0.6) Volume (mn) (19.3) Number of Transactions 2,246 2,865 (21.6) Companies Traded (9.1) Market Breadth 15:22 24:15 Market Indices Close 1D% WTD% YTD% TTM P/E Total Return 16, (0.5) (3.0) All Share Index 2, (0.8) (3.7) Banks 3, (0.5) (4.6) Industrials 3, (0.2) (2.0) Transportation 2, (0.5) Real Estate 1, (3.9) (6.3) (5.9) 15.3 Insurance 3, (2.9) (11.3) 28.9 Telecoms 1, (0.6) (1.5) (8.2) 39.6 Consumer 6, (0.0) (1.5) Al Rayan Islamic Index 3, (0.6) (2.5) GCC Top Gainers ## Exchange Close # 1D% Vol. 000 YTD% Oman Telecom. Co. Oman (36.3) Bank Al Bilad Saudi Arabia First Abu Dhabi Bank Abu Dhabi , Saudi Electricity Co. Saudi Arabia (13.0) Dallah Healthcare Co. Saudi Arabia (32.7) GCC Top Losers ## Exchange Close # 1D% Vol. 000 YTD% Nat. Shipping Co. of Saudi Saudi Arabia (3.8) 1,676.6 (6.9) Comm. Bank of Kuwait Kuwait 0.51 (2.9) Jabal Omar Dev. Co. Saudi Arabia (2.4) 1,172.7 (39.1) Emirates NBD Dubai 8.99 (2.3) 3, Aldar Properties Abu Dhabi 1.94 (2.0) 2,051.3 (11.8) Source: Bloomberg (# 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% Ezdan Holding Group (6.4) (17.1) Masraf Al Rayan (2.0) 49.8 (1.9) Vodafone Qatar 8.77 (2.0) Alijarah Holding 9.35 (1.8) 83.6 (12.7) Qatari Investors Group (1.5) 5.5 (15.2) QSE Top Volume Trades Close* 1D% Vol. 000 YTD% Mazaya Qatar Real Estate Dev (1.1) (21.4) Vodafone Qatar 8.77 (2.0) Ezdan Holding Group (6.4) (17.1) QNB Group Qatar First Bank 5.14 (0.2) (21.3) Regional Indices Close 1D% WTD% MTD% YTD% QSE Top Value Trades Close* 1D% Val. 000 YTD% QNB Group , Industries Qatar , Mazaya Qatar Real Estate Dev (1.1) 6,381.7 (21.4) Qatar Electricity & Water Co (0.5) 6, The Commercial Bank (1.0) 5, Source: Bloomberg (* in QR) Exch. Val. Traded ($ mn) Exchange Mkt. Cap. ($ mn) P/E** P/B** Dividend Yield Qatar* 9, (0.5) (3.0) (2.4) , Dubai 2, (0.8) (3.5) (4.7) (16.4) , Abu Dhabi 4, , Saudi Arabia 7, (0.3) (3.8) (5.2) , Kuwait 4, (0.5) (1.2) (0.6) , Oman 4, (0.9) 1.2 (13.9) , Bahrain 1, (0.5) (1.1) , Source: Bloomberg, 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 0.5% to close at 9, The Real Estate and Telecoms 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. Ezdan Holding Group and Masraf Al Rayan were the top losers, falling 6.4% and 2.0%, respectively. Among the top gainers, Dlala Brokerage & Investment Holding Company gained 2.8%, while The Group Islamic Insurance Company was up 0.9%. Volume of shares traded on Wednesday fell by 19.3% to 3.6mn from 4.4mn on Tuesday. Further, as compared to the 30-day moving average of 6.7mn, volume for the day was 46.6% lower. Mazaya Qatar Real Estate Development and Vodafone Qatar were the most active stocks, contributing 24.6% and 14.4% to the total volume, respectively. Overall Activity Buy %* Sell %* Net (QR) Qatari Individuals 27.96% 32.96% (5,029,978.44) Qatari Institutions 13.46% 28.04% (14,678,232.57) Qatari 41.42% 61.00% (19,708,211.01) GCC Individuals 0.75% 0.68% 72, GCC Institutions 0.58% 1.81% (1,237,540.29) GCC 1.33% 2.49% (1,165,277.06) Non-Qatari Individuals 14.24% 9.50% 4,768, Non-Qatari Institutions 43.01% 27.00% 16,105, Non-Qatari 57.25% 36.50% 20,873, Source: Qatar Stock Exchange (* as a % of traded value) Earnings Releases and Global Economic Data Earnings Releases Company Market Currency Revenue (mn) % Change Operating Profit % Change Net Profit % Change 2Q2018 YoY (mn) 2Q2018 YoY (mn) 2Q2018 YoY Al-Omran Industrial Trading Co. Saudi Arabia SR % % Islamic Arab Insurance Company Dubai AED % ,523.5% Gulf General Investments Company Dubai AED % N/A Gulfa Mineral Water & Processing Industries Co. Dubai AED % -3.9 N/A Marka Dubai AED % -5.8 N/A N/A Dubai Refreshment Company Dubai AED % % International Financial Advisors Kuwait KD % -0.1 N/A United Paper Industries # Bahrain BHD 3, % N/A Source: Company data, DFM, ADX, MSM, TASI, BHB. ( # Values in 000) Global Economic Data Date Market Source Indicator Period Actual Consensus Previous 08/15 US Mortgage Bankers Association MBA Mortgage Applications 10-August -2.0% -3.0% 08/15 US Federal Reserve Industrial Production MoM July 0.1% 0.3% 1.0% 08/15 US Federal Reserve Capacity Utilization July 78.1% 78.2% 78.1% 08/15 UK UK Office for National Statistics CPI MoM July 0.0% 0.0% 0.0% 08/15 UK UK Office for National Statistics CPI YoY July 2.5% 2.5% 2.4% 08/15 UK UK Office for National Statistics CPI Core YoY July 1.9% 1.9% 1.9% 08/15 UK UK Office for National Statistics RPI MoM July 0.1% 0.2% 0.3% 08/15 UK UK Office for National Statistics RPI YoY July 3.2% 3.4% 3.4% Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted) Page 2 of 5

3 News Qatar The Group Islamic Insurance Company to hold its EGM on September 4 The Group Islamic Insurance Company s board of directors announced that the Extraordinary General Assembly Meeting (EGM) of the company will be held on September 4, In case of lack of quorum, the date of the second meeting (reserve) will be on September 11, Further, in the absence of a quorum for the second meeting, the date of the third meeting (reserve) will be on October 14, (QSE) Real estate sector records massive growth in June sales Despite the ongoing economic blockade imposed by some of Qatar s neighboring states, the number of real estate transactions signed in June 2018 nearly doubled compared to the corresponding month last year. The total number of properties sold during the month of June (across all eight municipalities in Qatar) reached 267, up 97.8% compared to 135 properties traded in June When compared on MoM basis, the number has declined by 26.8% compared to 365 property deals inked in May However, analysts said that this decline in the number of transactions in June is normal phenomenon due to Ramadan and summer season when market remains lull. The combined value of real estate transactions signed during the month of June 2018 stood at QR1.33bn, down 62.6% compared to QR3.56bn in June (Peninsula Qatar) Ministry of Economy and Commerce registers 2,162 new companies in July The Ministry of Economy and Commerce issued the business process report for July 2018, pointing that 2,162 new companies have been registered. According to the report, the number of new major business records reached 1,622, while the number of new sub-registries reached 540 records. Limited liability companies accounted for 61% of the major business registered, while the category of single owner limited liability companies stood in second place with 27%, and the individual institutions came in third place with 11%. In July, construction companies topped the list of the most registered activities, with 4,238 registrations, followed by 1,397 registrations for service activities and transactions clearance, then building material trading companies with 1,388 registrations, followed by the public goods trading with 1,047 registrations, and 930 registrations for restaurants, cafeterias, and ice cream shops. According to the report, the number of commercial licenses issued, modified or renewed during July was 9,781 and the number of licenses issued by the ministry reached 2,376, while 913 licenses were amended, and 6,492 licenses were renewed. The number of companies closed during last July was 278 companies, and the proportion of closed companies of new companies was 8.21%. (Gulf-Times.com) Qatar to support the Turkish economy with investments worth QR55bn HH the Emir Sheikh Tamim Bin Hamad Al Thani issued directives to support the Turkish economy with a host of economic projects, investments and deposits worth a total of QR55bn. This came in a meeting of HH the Emir with Turkey s President, Recep Tayyip Erdogan on August 15, The Emir and the Turkish President discussed strategic bilateral relations. They also discussed ways to enhance bilateral cooperation in all fields, especially in economic and investment fields, the latest regional and international developments, and exchanged views regarding them. Both sides stressed on the importance of resolving differences through dialogue and through diplomatic channels, in order to maintain the region s peace and stability. (Gulf-times.com) Qatar-Glencore venture values its Rosneft stake at 7.4bn Euros QHG Oil Ventures (QHG), a joint venture between Qatar Investment Authority and Glencore, has valued 14.2% stake in Rosneft, which it is selling, at 7.4bn Euros, QHG s financial statement showed. Under a deal sealed in May, Qatar Investment Authority will buy 14.16% stake in the Russian energy giant from the Singapore-based joint venture. The stake is now worth 4.94 Euro per share, according to QHG s statement. However, as Qatar Investment Authority already indirectly owns part of the stake through the joint venture it is unclear how much it will pay for the stake. (Reuters) International US retail sales, manufacturing data bolster third-quarter economic outlook US retail sales rose more than expected in July as households boosted purchases of motor vehicles and clothing, suggesting the economy remained strong early in the third quarter. Data showed manufacturing output rising steadily last month and worker productivity growing at its fastest pace in more than three years in the second quarter, though a drop in labor costs pointed to moderate wage inflation. The Commerce Department stated retail sales increased 0.5% last month. However, data for June was revised lower to show sales gaining 0.2% instead of the previously reported 0.5% rise. Economists polled by Reuters had forecasted retail sales nudging up 0.1% in July. Retail sales in July increased 6.4% from a year ago. (Reuters) China, Japan cut US Treasuries holdings in June China and Japan reduced their holdings of US government debt in June as foreigners dumped the most Treasuries in a single month since late 2016, data from the Treasury Department showed. Overseas investors sold $48.57bn in Treasuries in June, compared with $26.7bn in purchases in May. China s holdings of US government debt slipped to $1.179tn, the lowest level since February and down from $1.183tn in May. Japan s ownership of Treasuries decreased to $1.030tn in June, the lowest since October Its Treasuries stake totaled $1.049tn in May. China and Japan are the two biggest foreign holders of US government securities. (Reuters) UK s inflation rises for first time in 2018, seen falling soon Britain s inflation rate rose in July for the first time in 2018, keeping the squeeze on many households budgets, but there were signs that the pick-up was a blip and inflation might fall faster than the Bank of England thinks. Consumer price inflation rose at an annual rate of 2.5% in July after holding at 2.4% in the previous three months, matching economists forecasts in a Reuters poll. (Reuters) Japan s export growth slows as the US bound shipments fall Japan s export growth slowed more than expected in July as shipments to the US fell for a second straight month, with the automotive sector down sharply as global trade disputes cast doubts over the strength of foreign demand. Ministry of Finance data showed exports rose 3.9% YoY in July, far below 6.3% increase expected by economists in a Reuters poll. The rise Page 3 of 5

4 followed 6.7% YoY gain in June. Japan s exports to the US fell 5.2% YoY in July, down for a second straight month, due to 12.1% decline in car shipments. Imports from the US rose 11.0% in the year to July, led by crude oil, motors and liquefied petroleum gas. As a result, Japan s trade surplus with the US fell 22.1% YoY to 502.7bn Yen. (Reuters) Regional Moody s: Islamic finance sector continues to grow The growth of the Islamic finance sector will continue to outstrip the growth of conventional assets across core Islamic finance markets in coming years, as demand for Shari ah-compliant financial instruments rises, according to Moody s Investors Service (Moody s). Islamic banking penetration in the GCC increased to 45% of the total banking market, as of September 2017 from 31% in During the same period, annual Sukuk issuance more than doubled to $100bn from $42bn. Moody s Vice President and Senior Analyst, Nitish Bhojnagarwala said, The Islamic finance sector will be supported by governments, whose objective is to grow the Islamic finance industry both domestically and globally, as well as by continued demand for Islamic products from individuals. (Peninsula Qatar) Saudi Arabia s PIF may only play a minor part in $72bn Tesla plan Tesla s CEO, Elon Musk has said that obviously, the Saudi sovereign fund has more than enough capital needed to finance taking Tesla private. The fund is estimated to have over $250bn in assets, but it is not that simple. Public Investment Fund (PIF) has many claims on its resources, both financial and political. More than half of its assets are tied up in large Saudi Arabian companies whose stocks could be difficult to sell all together. There is also pressure to spend money at home, where a slumping economy has driven unemployment among Saudi Arabian citizens to record highs. (Gulf-Times.com) CMA approves The Mediterranean and Gulf Insurance, and Reinsurance Company s request to increase its capital Saudi Arabia s Capital Market Authority (CMA) announced its resolution approving The Mediterranean and Gulf Insurance, and Reinsurance Company s request to increase its capital by way of rights issue valued at SR400mn. The increase will be limited to the shareholders, who are registered in the shareholders registry at the Security Depository Center as of the closing of the second trading day after the extraordinary general assembly meeting, which will be determined by the company s board of directors. (Tadawul) SABB announces distribution and payment of dividends The Saudi British Bank s (SABB) board of directors approved payment of cash dividends for 1H2018 for total amount of SR1,440mn, at the rate of SR0.96 per share, representing 9.6% of the share nominal value. Dividends will be paid with effect from August 16, 2018 to shareholders by crediting dividends to the accounts linked to their investment portfolios. (Tadawul) The UAE s balance of trade posts additional gains of AED9.96bn The UAE s balance of trade posted additional gains of AED9.96bn in 1H2018 as the surplus of its balance of trade grew by AED6.05bn this year and the deficit of its balance of trade with the US dropped by AED3.64bn over the corresponding period last year. Meanwhile, the UAE s surplus of trade with Japan grew by around 26.6% to AED28.76bn in 1H2018, up from AED22.71bn in 1H2017. (GulfBase.com) Commercial Bank of Kuwait reports net income of KD6.0mn in 1H2018 Commercial Bank of Kuwait reported net income of KD6.0mn and operating profit came in at KD54.1mn in 1H2018. The bank s total assets stood at KD4.26bn, mainly comprising of KD2.14bn of loan portfolios and KD489mn of investment securities. (Bloomberg) Kuwait s current account surplus hits three-year high Kuwait s current account registered its highest surplus in three years during 1Q2018 standing at KD1.7bn, about 17% of quarterly GDP, up from KD1.2bn in 4Q2017, according to a report by the Central Bank of Kuwait (CBK). A rise in the trade surplus, supported by higher oil prices, more than offset a widening services deficit, lower investment income, and higher remittances, it stated. The trade surplus in first quarter rose to KD3.4bn from KD2.3bn the previous quarter, lifted primarily by higher oil receipts and non-oil exports, while imports held steady. (GulfBase.com) CBK issues three months bonds & Tawarruq The Central Bank of Kuwait (CBK) stated that it issued KD160mn worth of bonds and Tawarruq, an Islamic financial product which allows clients to raise money without breaking Muslim bans on interest. The issue is valid for three months with a return rate of 2.5%, CBK stated. The CBK s last issue of bonds and Tawarruq was on August 6, 2018 with a value of KD240mn and a return rate of 2.5% valid for three months. (GulfBase.com) Page 4 of 5

5 Rebased Performance Daily Index Performance % 1.0% 0.5% 0.0% (0.5%) (1.0%) (0.3%) (0.5%) (0.5%) 0.2% 0.4% 1.2% (0.8%) 50.0 Jul-14 Jul-15 Jul-16 Jul-17 Jul-18 QSE Index S&P Pan Arab S&P GCC Saudi Arabia Qatar Kuwait Bahrain Oman Abu Dhabi Dubai Source: Bloomberg Source: Bloomberg Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D%* WTD%* YTD%* Gold/Ounce 1, (1.6) (3.0) (9.8) MSCI World Index 2, (1.0) (1.1) 0.6 Silver/Ounce (4.1) (5.7) (14.7) DJ Industrial 25, (0.5) (0.6) 1.8 Crude Oil (Brent)/Barrel (FM Future) (2.3) (2.8) 5.8 S&P 500 2, (0.8) (0.5) 5.4 Crude Oil (WTI)/Barrel (FM Future) (3.0) (3.9) 7.6 NASDAQ 100 7, (1.2) (0.8) 12.6 Natural Gas (Henry Hub)/MMBtu (1.9) STOXX (1.3) (2.1) (7.9) LPG Propane (Arab Gulf)/Ton (2.5) (3.6) (6.4) DAX 12, (1.6) (2.6) (11.2) LPG Butane (Arab Gulf)/Ton (2.4) (2.2) (9.7) FTSE 100 7, (1.6) (2.6) (8.4) Euro (0.6) (5.5) CAC 40 5, (1.8) (2.5) (5.8) Yen (0.4) (0.1) (1.7) Nikkei 22, (0.4) (0.4) (0.8) GBP 1.27 (0.2) (0.5) (6.0) MSCI EM 1, (1.8) (3.7) (11.7) CHF (1.9) SHANGHAI SE Composite 2, (2.6) (3.7) (22.7) AUD 0.72 (0.1) (0.9) (7.3) HANG SENG 27, (1.5) (3.7) (9.1) USD Index (0.0) BSE SENSEX # 37, (1.4) 1.3 RUB (0.6) 16.8 Bovespa 77, (1.8) (0.1) (14.2) BRL 0.26 (1.1) (1.2) (15.3) RTS 1, (2.4) (0.2) (8.6) Source: Bloomberg Source: Bloomberg (*$ adjusted returns; # Market closed on August 15, 2018) 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) saugata.sarkar@qnbfs.com.qa shahan.keushgerian@qnbfs.com.qa zaid.alnafoosi@qnbfs.com.qa QNB Financial Services Co. W.L.L. Contact Center: (+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