8,980 8,960 8,940 8,920 8,900 8,880 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 8,980 8,960 8,940 8,920 8,900 8,880 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, Losses were led by the Insurance and Telecoms indices, falling 1.2% and 0.4%, respectively. Top losers were Islamic Holding Group and Gulf International Services, falling 3.8% and 1.8%, respectively. Among the top gainers, Al Khaleej Takaful Group rose 3.9%, while Qatar Islamic Insurance Co. was up 3.6%. GCC Commentary Saudi Arabia: The TASI Index fell 0.3% to close at 7, Losses were led by the Energy and REITs indices, falling 1.1% and 1.0%, respectively. Filing & Packing Materials Manufacturing Co. fell 2.6%, while Saudi Cement Co. was down 2.2%. Dubai: The DFM Index declined 0.6% to close at 3, The Industrial index fell 9.5%, while the Transportation index declined 1.4%. National Cement Company fell 9.5%, while Gulf Navigation Holding was down 4.4%. Abu Dhabi: The ADX benchmark index fell 0.3% to close at 4, The Consumer Staples index declined 2.1%, while the Real Estate index fell 1.3%. Ras Al-Khaimah Cement Co. declined 4.0%, while Union Cement Co. was down 3.9%. Kuwait: The KSE Index rose 0.4% to close at 6, The Technology index gained 2.5%, while the Oil & Gas index rose 1.8%. Gulf Franchising Holding Co. gained 20.0%, while International Resorts Co. was up 8.6%. Oman: The MSM Index rose 0.3% to close at 4, Gains were led by the Industrial and Financial indices, rising 0.8% and 0.5%, respectively. Voltamp Energy rose 9.8%, while Bank Sohar was up 4.2%. Bahrain: The BHB Index fell marginally to close at 1, The Investment index declined 0.7%, while the other indices ended flat or in green. Bahrain Islamic Bank declined 2.1%, while GFH Financial Group was down 2.0%. QSE Top Gainers Close* 1D% Vol. 000 YTD% Al Khaleej Takaful Group (24.6) Qatar Islamic Insurance Co Gulf Warehousing Co (17.9) Investment Holding Group (25.4) QNB Group (10.4) Market Indicators 27 Aug Aug 17 %Chg. Value Traded (QR mn) (7.8) Exch. Market Cap. (QR mn) 482, , Volume (mn) Number of Transactions 1,411 1,812 (22.1) Companies Traded (2.4) Market Breadth 15:21 2:34 Market Indices Close 1D% WTD% YTD% TTM P/E Total Return 14, (0.2) (0.2) (11.3) 15.4 All Share Index 2, (0.0) (0.0) (11.9) 13.7 Banks 2, (5.1) 12.1 Industrials 2, (0.2) (0.2) (18.1) 18.1 Transportation 1, (0.1) (0.1) (25.0) 12.8 Real Estate 1, (17.5) 12.6 Insurance 3, (1.2) (1.2) (10.3) 18.0 Telecoms 1, (0.4) (0.4) (10.3) 20.9 Consumer 5, (0.3) (0.3) (10.5) 12.6 Al Rayan Islamic Index 3, (0.2) (0.2) (8.6) 17.1 GCC Top Gainers ## Exchange Close # 1D% Vol. 000 YTD% Med. & Gulf Insurance Saudi Arabia (52.3) Bank Sohar Oman , DP World Ltd Dubai Boubyan Petrochem. Co. Kuwait Abu Dhabi Nat. Energy Abu Dhabi , GCC Top Losers ## Exchange Close # 1D% Vol. 000 YTD% Saudi Cement Saudi Arabia (2.2) (38.3) Aramex Dubai 5.00 (2.2) United Electronics Co. Saudi Arabia (2.1) Gulf Pharma. Ind. Abu Dhabi 2.40 (2.0) Knowledge Eco. City Saudi Arabia (1.9) (23.3) ( # 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% Islamic Holding Group (3.8) 3.5 (24.5) Gulf International Services (1.8) (38.3) Qatar Insurance Co (1.8) 0.3 (9.4) Dlala Brokerage & Inv. Holding (1.6) (21.6) Qatar First Bank 7.00 (1.4) (32.0) QSE Top Volume Trades Close* 1D% Vol. 000 YTD% Vodafone Qatar ,199.2 (8.8) Qatar First Bank 7.00 (1.4) (32.0) Investment Holding Group (25.4) Doha Bank (9.8) QNB Group (10.4) Regional Indices Close 1D% WTD% MTD% YTD% QSE Top Value Trades Close* 1D% Val. 000 YTD% QNB Group ,983.8 (10.4) Vodafone Qatar ,500.1 (8.8) Doha Bank ,777.0 (9.8) Qatar Navigation (1.4) 7,321.8 (33.6) Masraf Al Rayan (0.9) 4, (* in QR) Exch. Val. Traded ($ mn) Exchange Mkt. Cap. ($ mn) P/E** P/B** Dividend Yield Qatar* 8, (0.2) (0.2) (5.0) (14.4) , Dubai 3, (0.6) (0.6) (0.8) , Abu Dhabi 4, (0.3) (0.3) (1.9) (1.5) , Saudi Arabia 7, (0.3) (0.3) , Kuwait 6, , Oman 4, (1.2) (14.2) , Bahrain 1, (0.0) (0.0) (1.9) , , 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 declined 0.2% to close at 8, The Insurance and Telecoms indices led the losses. The index fell on the back of selling pressure from non-qatari shareholders despite buying support from Qatari and GCC shareholders. Islamic Holding Group and Gulf International Services were the top losers, falling 3.8% and 1.8%, respectively. Among the top gainers, Al Khaleej Takaful Group rose 3.9%, while Qatar Islamic Insurance Co. was up 3.6%. Volume of shares traded on Sunday rose by 0.3% to 5.0mn from 5.0mn on Thursday. However, as compared to the 30-day moving average of 7.4mn, volume for the day was 32.3% lower. Vodafone Qatar and Qatar First Bank were the most active stocks, contributing 44.0% and 11.8% to the total volume, respectively. Overall Activity Buy %* Sell %* Net (QR) Qatari Individuals 50.82% 45.73% 5,848, Qatari Institutions 24.76% 22.71% 2,354, Qatari 75.58% 68.44% 8,203, GCC Individuals 0.23% 2.16% (2,220,240.82) GCC Institutions 3.06% 0.68% 2,729, GCC 3.29% 2.84% 508, Non-Qatari Individuals 5.22% 6.18% (1,101,191.08) Non-Qatari Institutions 15.91% 22.54% (7,610,787.28) Non-Qatari 21.13% 28.72% (8,711,978.36) Source: Qatar Stock Exchange (* as a % of traded value) Global Economic Data Date Market Source Indicator Period Actual Consensus Previous 08/27 China National Bureau of Statistics Industrial Profits YoY July 16.5% 19.1% (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted) News Qatar S&P Global Ratings affirms Qatar s ratings at AA-/A-1+ S&P Global Ratings has affirmed its AA-/A-1+ long-and short-term foreign and local currency sovereign ratings on Qatar. This reflects the global ratings agency s expectation that Qatar will continue to actively manage the impact of the boycott while preserving Qatar s core rating strengths, including strong public finances. S&P Global Ratings noted, While we expect that economic growth will slow as a result of the boycott, we still expect the government s infrastructure plan to underpin economic expansion and to partly offset low confidence and reduced consumption. The government has taken measures to support confidence in Qatar s banking system, including the repatriation of deposits previously held abroad into the domestic banking system belonging to the sovereign wealth fund Qatar Investment Authority (QIA). (Peninsula Qatar) QInvest: Local demand for Shari ah-compliant funds rising in Qatar Private investment group QInvest announced that the market is witnessing a rise in demand for Shari ah-compliant funds. Conventional investors also expressed interest in a range of Shari ah-compliant products and investments, QInvest s Head of Asset Management, Ataf Ahmed said, during the ACQ5 Global Awards 2017 ceremony, where QInvest was recognized as Qatar s Asset Management Advisory Firm of the Year. Ahmed said, In response to the growing investor demand for more innovative, income-generating, Shari ah-compliant products, QInvest successfully launched SQN Income Fund, in collaboration with SQN Capital Management earlier this year. Offering investors a unique opportunity to access incomegenerating assets in developed markets, the fund was oversubscribed and aims to pay out a net yield of 7% per annum on a monthly basis and has a targeted IRR of between 8% and 9%, with a tenure of five years. (Gulf-Times.com) QCB takes steps to avoid local banks distress or failure Some five local banks have been identified as Domestic Systemically Important Banks (DSIBs) by Qatar Central Bank (QCB) in its efforts towards increasing their financial strength and withstand onslaught of any external shocks. Recognizing the fact that the distress of domestic systemically important banks can affect the financial system domestically, a DSIB framework was adopted in In implementing the framework for DSIBs, QCB sought to achieve the objectives of identifying and designating domestic systemically important banks in Qatar, reducing the probability of failure of these identified DSIBs and reducing the impact of their distress or failure, QCB said in its 8 th Financial Stability Review. The key components of the DSIB framework were assessment methodology, higher loss absorbency capital requirement, capital and recovery plans and increased supervisory scrutiny to achieve the desired objectives. QCB, in line with the Basel Committee on Banking Supervision (BCBS) requirements, adopted an indicator-based methodology to determine systemic importance of banks in Qatar. Banks were assessed on four specific factors such as size, interconnectedness, substitutability and complexity. (Gulf- Times.com) Qatari banks capable to face any siege impact Qatar Central Bank s (QCB) Governor, HE Sheikh Abdullah Bin Saoud Al Thani has stated that the local banks are capable of facing any possible abnormal conditions resulting from the siege imposed on the country. He said the Qatari banking system is strong and efficient as proved by stress tests carried out routinely by QCB. QCB s Governor said the banks are highly solvent and profitable. The deposits in the bank are in excess of QR39.3bn. Page 2 of 5

3 Other data on bank liquidity are available to everyone, through the monthly report released by QCB that also includes data on the monetary base. On the decision of credit rating agency, Moody s to lower the credit rating of Qatari banks, Sheikh Abdullah said that the current geopolitical risks were a big factor in the agency s decision. QCB believes the agency will amend that change in the very near future. (Peninsula Qatar) QCB prepares to launch Second Strategic Plan up to 2022 Qatar Central Bank (QCB) is preparing to launch its Second Strategic Plan for financial sector regulation up to 2022, QCB s Governor, HE Sheikh Abdullah Bin Saoud Al Thani said. He said the strategy is a result of successful cooperation between three regulatory bodies, the central bank, the Qatar Financial Markets Authority (QFMA), and the Qatar Financial Centre Regulatory Authority. The strategy is also implemented in the context of Qatar National Vision 2030 and the active role the financial and banking sector plays in diversifying the economy and increasing the contribution of the private sector the in Gross Domestic Product. He said the new strategy builds on its predecessor. It also looks to enhance regulatory cooperation between different bodies. That cooperation will include work on the application of international standards in the banking sector, as work will continue on implementing Basel III. (Gulf- Times.com) QCB: Non-oil sector drives Qatar s growth in 2016 Qatar s non-oil GDP witnessed a rapid growth of 5.1% or QR18.7bn in nominal terms during the fiscal 2016, compared to a growth rate of 3.2% growth in the previous year. The real output of the nonoil sectors witnessed an increase of QR21.4bn or 5.6% to more than QR400bn, while the real output of the oil and gas sector fell by QR4bn and by not exceeding 1% to reach QR394bn, Qatar Central Bank (QCB) noted in its 2016 annual report. The continuing decline in oil prices in international markets had a direct effect on Qatar s nominal GDP s decline in 2016, with oil output falling by more than 27% despite the near stability of the real output of the oil sector. The continuing decline in oil prices during 2016 had a negative effect on nominal GDP to reach QR555bn compared to QR599.3bn in the previous year. Thus, nominal GDP continued its decline, albeit less severe than in the year 2015, by 7.4% compared to 20.2% in the previous year. The country s real GDP grew by 2.2% in 2016, compared to 3.6% in the previous year, reaching QR796.2bn, compared to QR778.9bn in The growth in real GDP was driven by nonoil sector by 5.6% with oil output falling by 1.0%. (Peninsula Qatar) QFC sponsors 71 st IFA Congress As part of its ongoing commitment to supporting international best practices in matters relating to tax, the Qatar Financial Centre (QFC) has sponsored the 71 st International Fiscal Association (IFA) Congress in Rio de Janeiro, Brazil, which was also attended by senior representatives of the QFC s tax department. The IFA, which focuses on international fiscal matters, brings together thousands of experts yearly to discuss the latest trends in tax and explore potential solutions to overcome practical implementations. (Gulf-Times.com) Milaha launches fastest container service between Pakistan and Qatar Qatar Navigation (Milaha) has announced the launch of a direct service between Pakistan and Qatar. The new service, called PQX (Pakistan Qatar Express Service), will operate weekly between the Port of Karachi (Pakistan), and Hamad Port (Qatar), with a competitive transit time of four days, making it the fastest direct connection between the two countries. The PQX will also establish a second weekly service to and from Mundra (India), which will add to Milaha s existing Mundra call as part of the IQX (India Qatar Express Service). PQX will be operated with two 1,700 TEU (Twenty-foot equivalent unit) vessels and a weekly call in all ports following a Mesaieed-Mundra-Karachi-Hamad-Mesaieed rotation. The first vessel will depart from Karachi Port on September 7, and arrive at Hamad Port on September 11. (Peninsula Qatar) International Premier Li Keqiang: China must improve business environment for manufacturing sector Premier Li Keqiang said China should provide more fundraising services to companies, especially smaller firms, and look at fiscal and tax policies that support upgrading its manufacturing sector. Li said market entry barriers should be lowered, vocational training improved and intellectual property protection increased, as China looks to improve its manufacturing sector, which he said is still in the mid to low-end internationally. China has put forward its Made in China 2025 strategy, which aims to improve Chinese manufacturing and make Chinese firms world technology leaders. (Reuters) Regional Bahri s subsidiary to build four bulk carriers for $120mn National Shipping Company of Saudi Arabia (Bahri) announced that its subsidiary, Bahri Dry Bulk, signed contracts with Hyundai Heavy Industries to build four bulk carriers at a total value of $120mn. The bulk carriers would be delivered in 1H2017. The financial impact of these contracts will appear after the delivery of the vessels. Bahri is aiming to expand its own fleet to meet the increasing demands of the local and international markets, as each bulk carrier will have an 80,000- tonne capacity. (Tadawul) UAE s President issues law decree on Value-Added Tax UAE s President issued law decree on Value-Added Tax. The law stipulates 5% added tax to begin January 2018 on imports of goods and services in production and distribution stages, UAE s state-run news agency said. (Bloomberg) KNPC to spend $11.6bn over next five years Kuwait National Petroleum Corp (KNPC) plans to spend around $11.6bn during , according to its CEO, Mohammad Ghazi Al Mutairi. He also added that the plan involved completing projects and starting new ones. KNPC is developing the Clean Fuels Project that will upgrade and expand two of its largest refineries to make higher-value products such as diesel and kerosene for export. Mutairi said the first installment of $6.25bn loan from international lenders was expected to be received by the end of September. KNPC will close the ageing 200,000 barrels per day (bpd) refinery in Shuaiba. (Peninsula Qatar) Oman Flour Mills subsidiary invests in soya crushing project Atyab Investment, a wholly-owned subsidiary of Oman Flour Mills, announced that its board has approved 40% shareholding in soya crushing project, along with other investors. The company would invest OMR5.2mn in this project, which is likely to be completed in The company anticipated that Page 3 of 5

4 the internal rate of return (IRR) of the project would be 15%, with a six-year payback period. (MSM) Viva Bahrain, Capital Club signs strategic tie-up Viva Bahrain, a top telecom operator entered into strategic business relationship with the Capital Club, Bahrain s premier private city club as its exclusive telecom partner, offering its members latest connectivity solutions. (GulfBase.com) Page 4 of 5

5 Rebased Performance Daily Index Performance % 0.4% 0.3% Jul-13 Jul-14 Jul-15 Jul-16 Jul-17 QSE Index S&P Pan Arab S&P GCC 0.0% (0.5%) (1.0%) (0.3%) Saudi Arabia (0.2%) Qatar Kuwait (0.0%) Bahrain Oman (0.3%) Abu Dhabi (0.6%) Dubai Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D%* WTD%* YTD%* Gold/Ounce 1, MSCI World Index 1, Silver/Ounce DJ Industrial 21, Crude Oil (Brent)/Barrel (FM Future) (0.6) (7.8) S&P 500 2, Crude Oil (WTI)/Barrel (FM Future) (1.3) (10.9) NASDAQ 100 6, (0.1) Natural Gas (Henry Hub)/MMBtu 2.93 (1.2) 1.5 (20.4) STOXX LPG Propane (Arab Gulf)/Ton DAX 12, LPG Butane (Arab Gulf)/Ton (5.0) (26.4) FTSE 100 7, Euro CAC 40 5, Yen (0.2) 0.2 (6.5) Nikkei 19, GBP MSCI EM 1, CHF SHANGHAI SE Composite 3, AUD HANG SENG 27, USD Index (0.6) (0.7) (9.3) BSE SENSEX 31, RUB (1.0) (0.6) (4.8) Bovespa 71, (0.3) BRL 0.32 (0.3) (0.4) 3.0 RTS 1, (8.0) (*$ 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 5 of 5