GCC Bond Market Survey 2009 Highlights

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1 Kuwait Centre Markaz R E S E A R C H Fixed Income Research GCC Bond Market Survey 2009 Highlights Before reading this report - Aggregate bonds market includes sovereign and corporate issuances, conventional ( bonds ) and Shari ah compliant issuances ( sukuk ). - Sovereign issuances include treasury bills and bonds issued by either the central bank or a government entity, and do not include corporations owned fully or largely by the government. - A number of sources which include Bloomberg, Zawya, GCC central banks websites, reports by rating agencies, related offering memorandums, and others were utilized. Markaz Research is available on Bloomberg Type MRKZ <Go> Rasha A. Othman AVP Corporate Finance Ext.: 1113 rothman@markaz.com Ziad G. Jarjouhi Assistant Analyst zjarjouhi@markaz.com - Every effort has been made to include and quote the majority of data sources that are accessible to Markaz. - All currencies have been converted into US dollars to facilitate easy comparison. GCC Aggregate Bond Market 2009 The GCC aggregate primary bond market, which includes both conventional ( bonds ) and Shari ah compliant issues ( sukuk ) increased substantially to USD72.7 billion in 2009, up by 220.5% compared with amount raised in The majority of issuances took place in the second half of the year with 77 issuances, representing 61.1% of the total number of issuances and 60.0% of the aggregate volume issued throughout the year. The increase was fueled by new issuances of sovereign issuers or corporations that are fully or largely owned by the governments, which together represented 93.8% of the total issuance during the period. Total Fixed Income Issuances in the GCC Region (USD Mn ) 72, , ,011.3 Kuwait Centre Markaz 15, , , ,706.5 P.O. Box 23444, Safat 13095, Kuwait Tel: Fax: markaz.com November witnessed the highest issuance frequency and value with 21 issuances raising a total of USD18.1 billion, representing 16.7% and 24.9% respectively of total 2009 issuances.

2 Total Fixed Income Issuance in the GCC Region (2009 USD Mn) Amount Raised in USD Mn 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2, Number of Issues Total Value (USD Mn) Number of Issues Sovereign vs Corporate During 2009, sovereign issuances regained their dominance with the majority of the amount raised, with USD52.6 billion representing 72.3% of the total amount raised; continuing with the trend observed since 2003 except for the peak years of 2006 and Corporate issuances raised USD20.1 billion during 2009, 27.7% of the total amount raised. Total Sovereign & Corporate Issuance in the GCC (USD Bn) Sovereign Corporate The sovereign issuances in this survey include the USD20.0 billion bonds issued by the Emirate of Dubai, which were fully subscribed by the UAE s central bank and Government of Abu Dhabi, and which was made up of the following issues: Type Issuer Name Subscribed By Amount (USD Mn) Issue Date Maturity Coupon Dubai Government Central Bank of the UAE Feb Feb % Dubai Department of Finance Al Hilal Bank Nov Nov % Dubai Department of Finance National Bank of Abu Dhabi Nov Nov % Dubai Government Abu Dhabi Government Dec Dec % Bond Program Size 20.0 Kuwait Centre Markaz 2

3 vs Continuing with the trend witnessed since 2003, issuances of conventional bonds raised the greatest amount during 2009 with USD61.5 billion representing 84.5% of the total value raised through 93 issuances, compared to USD11.3 billion for sukuk through 33 issuances. Total & Issuance in the GCC Region (USD Mn) 11, % 1, , , , , , % 13, , , , , , , Breakdown by Sector In aggregate, sovereign issuances totaled USD51.8 billion representing 71.2% of the total amount raised through 89 issuances. Excluding sovereign issues, six sectors were active in the issuance of bonds and sukuk during 2009:, Oil and Gas, Real Estate, Power and Utilities, Telecom and Conglomerates. sector raised USD8.7 billion, or 41.4% of the aggregate corporate bond market, through 23 issuances. The Oil and Gas sector ranked second raising USD3.5 billion, representing 16.6% of the aggregate corporate bond market through four issuances. The Real Estate sector followed, raising USD3.5 billion, representing 16.4% of the aggregate corporate bond market with four issuances. The first telecom bond issuance to occur in the GCC was placed during June 2009 by Qatar Telecom. According to Reuters, the inaugural issue attracted substantial interest with global orders in excess of USD13 billion. The size of the issuance was USD1.5 billion and allocated as follows: USD900 million 5-year bond and USD600 million 10-year bond. Total Issuance by Sector - Excluding Government (2009 USD Bn) 8.69, 41.39% 0.50, 2.4% 3.48, 16.6% Conglomerate Oil and Gas Power and Utilities Real Estate Telecom 1.50, 7.1% 3.37, 16.1% 3.45, 16.4% Kuwait Centre Markaz 3

4 Total Issuance by Sector ( USD Mn) 4.61, 1.9% 9.19, 3.8% , 55.6% 15.28; 6.3% 18.81; 7.7% 47.94; 19.7% Government Real Estate Oil and Gas Power and Utilities Transport Others 11.98, 4.9% Geographical Breakdown Continuing with the trend witnessed since 2006, the UAE garnered the majority share of amount issued during 2009, raising USD36.6 billion, or 50.2% of the total amount. Next was Qatar, raising USD15.3 billion, or 21.1% of the aggregate amount raised; Kuwait raising USD14.0 billion with 19.2%, USD4.5 billion with 6.2%; Bahrain USD2.0 billion with 2.8% and then Oman USD0.4 billion with 0.6% of aggregate amount raised. In terms of issuance frequency, Kuwait garnered the majority share of the number of issues, with 47 issuances representing 37.3% of the total number; out of which 46 issuances were issued by the Central Bank of Kuwait. UAE followed with 31 issuances, representing 24.6% of the total number of issuances, while Oman was the least active amongst the GCC issuers with only 3 issuances raising USD0.4 billion (2.4% of the total number of issuances). Total Issuance - Geographical Breakdown (2009 USD Mn) 2,020.50, 2.8% 4,495.32, 6.2% , 0.6% 13, ; 19.2% 15,330.00, 21.1% 36,561.71, 50.2% UAE Qatar Kuwait Bahrain Oman Kuwait Centre Markaz 4

5 Maturity Structure During 2009, issuances with 5 year maturities raised the highest amount, USD42.5 billion, representing 58.4% of the aggregate amount raised, while issuances with 3 month maturities had the largest number of issuances with 28 issues, raising USD5.4 billion. The State of Qatar issued the longest tenor GCC sovereign bond ever in the market during 2009, with a tenor of 30 years. Total Market - Maturity Structure 2009 Amount Raised in USD Mn 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5, Number of Issues Total Amount USD Mn Raised Total Number of Issues Size The bond and sukuk issuances during 2009 had sizes ranging from USD10.0 million to USD10.0 billion. However, issuances with a principal amount of more than USD200 million and equal to or less than USD500 million were the most active with 32 issuances, representing 25.4% of the total number of issuances, totaling USD10.4 billion. This represents a shift from the trend witnessed during the past two years, when issuances with a principal amount equal or less than USD100 million were the most dominant. Out of the five largest issues ever placed in the GCC, three were raised during 2009: Government of Dubai s USD10.0 billion bond; Government of Dubai s USD5.0 billion bond; and, State of Qatar s USD3.5 billion bond. Amount Raised in USD Mn 30,000 25,000 20,000 15,000 10,000 5,000 0 Total Market- Breakdown of Issue Size Structure 2009 Size of Issue < USD 100 Mn USD 100 Mn Size of Issue < USD 200 Mn USD 200 Mn Size of Issue < USD 500 Mn Total Amount USD Mn Raised USD 500 Mn Size of Issue < USD 1,000 Mn USD 1,000 Mn Size of Issue < USD 3,000 Mn Size of Issue USD 3,000 Mn Total Number of Issues Number of Issues Currency Structure In 2009, the currency structure for bond issuance reversed to its pre-2008 trend, where most issuances were denominated in USD. Total USD denominated issuance reached USD53.2 billion, representing 73.1% of the total volume followed by KWD-denominated issues with USD13.5 billion or 18.5% of the total issuances. Only three AED-denominated issuances were placed during 2009, raising USD1.3 billion and representing 1.8% of the total volume. Kuwait Centre Markaz 5

6 Amount Raised in USD Mn 60,000 50,000 40,000 30,000 20,000 10,000 0 Total Issuance - Currency Structure Number of Issues USD KWD SAR BHD AED OMR EUR HKD Total Value (USD Mn) Number of Issues Total Issuance - Currency Structure (USD Mn ) , , , , ,233.2 USD KWD SAR BHD AED OMR EUR HKD Rating In 2009, a total of 45 issuances, or 81.8% of the total issuances, were rated by either one of the following rating agencies: Moody s, Standard & Poor s and Fitch. According to Moody s, the average rating in the GCC has migrated from A1 in 2008 to Baa1 in 2009, as a result of the downgrades for many regional issuers during the year. Most prominently were the Dubai s corporate government-related issuers, downgraded due to uncertainties concerning the repayment of their debt and the degree of government support they will effectively receive. Kuwait Centre Markaz 6

7 Total Issuances Rated A A- A+ AA AA- 6 8 AAA BBB+ 9 Select Moody s Investors Service Rating Actions Company Issuance Initial Rating After Review Year Rating (as of 31 Dec 2009) Country Aldar Properties Atlantic Finance Ltd 2009 A3 A3 (Negative Watch) UAE Tourism Development & Investment Company TDIC Limited Tourism Development & Investment Company TDIC Finance Limited 2009 Aa2 Aa2 (Negative Watch) UAE 2009 Aa2 Aa2 (Negative Watch) UAE Abu Dhabi National Energy Company Taqa Aa2 Aa2 (Negative Watch) UAE Abu Dhabi National Energy Company Taqa Aa2 Aa2 (Negative Watch) UAE Mubadala Development Company MDC - GMTN B.V Aa2 Aa2 (Negative Watch) UAE Mubadala Development Company MDC - GMTN B.V Aa2 Aa2 (Negative Watch) UAE Dolphin Energy Limited Dolphin Aa3 Aa3 (Negative Watch) UAE Kuwait Projects Company (Holding) KWIPKK Baa1 Baa1 (Negative Watch) Kuwait Dubai Electricity & Water Authority DEWA Funding Ltd 2008 A1 Ba2 (Negative Watch) UAE DIFC Investments DIFC Centre 2007 A1 B2 (Negative Watch) UAE DP World DP World Ltd 2007 A1 Ba1 (Negative Watch) UAE Dubai Holding Commercial Operations Group DHCOG MTN Ltd 2007 A1 B1 (Negative Watch) UAE Jebel Ali Free Zone JAFZ Ltd 2007 A1 B1 (Negative Watch) UAE Qatar Real Estate Investment Company QREIC Co A2 A2 (Negative Watch) Qatar National Industries Group Holding NIG 2007 Baa2 Ba3 (Negative Watch) Kuwait Source: Moody s Investors Service and Bloomberg Listing During 2009 only two issuances were listed on the NASDAQ Dubai: GE Capital s USD500.0 million, which was listed on 10 December 2009; and the World Bank Hilal Company s USD100.0 million sukuk which was listed on 4 November On the Bahrain Stock Exchange two issuances were listed during 2009: the Central Bank of Bahrain s BHD165.0 million Long Term, which was listed on 15 October 2009; and the World Bank Hilal which was listed on 4 November On the Muscat Securities Market three bonds were listed during 2009: Bank Muscat s 7% Convertible Bond which was listed on 12 April 2009; Bank Muscat s 8% Subordinated Bond which was listed on 14 May 2009; and the Central Bank of Oman s 36 th Government Bond Issue which was listed on 4 October Kuwait Centre Markaz 7

8 Market Performance The HSBC/DIFX GCC Aggregate Bond and (GCCB) Index performance increased substantially by 18.3% during 2009, from 98.8 on 31 December 2008 reaching on 31 December 2009; while the GCCB index yield decreased by 37.0%, from 10.5% on 31 December 2008 to 6.6% on 31 December HSBC/DIFX GCC Bond and Index 2009 Performance Source: HSBC/DIFX Indices HSBC/DIFX GCC Bond and Index 2009 Yield Source: HSBC/DIFX Indices The Dow Jones Citigroup Price Index for regional sukuk has also increased by 25.06% in 2009, from 91.5 at 31 December 2008 to at 31 December DJ Citigroup Index 2009 Performance Source: Zawya Kuwait Centre Markaz 8

9 The last week of November observed two significant events for both of the aforementioned indices. During that week, the performance of both indices reached an annual high and then witnessed the largest daily decline in performance as a result of DP World s debt restructuring and standstill news. The performance of the HSBC/DIFX GCC Aggregate Bond and Index peaked at a high of on 25 November and decreased to on the next calculation date, 30 November. The Dow Jones Citigroup index s performance reached an annual high of on 26 November and then dropped to the next day, 27 November. Credit Default Swaps Kuwait s Credit Default Swap ( CDS ) is the only CDS not priced in the GCC. During 2009, the CDS spreads linked to GCC sovereigns reached a peak during the following days: Highest CDS Lowest CDS Basis Basis Date Points Points Date Abu Dhabi March October Dubai February October Bahrain February October Qatar February September March October Oman June November Source: Bloomberg Source: Bloomberg and Markaz Analysis Kuwait Centre Markaz 9

10 Notable Bond and Issuances During 2009 Fixed Income Type Issuer Name Country Currency Subscription Month Tenor (Years) Maturity Date Issue Size (USD Mn) Coupon Type Margin Sector Emirate of Abu Dhabi ADGB /14 UAE USD April 5 08/04/2014 1,500.0 Fixed 5.500% Government Emirate of Abu Dhabi ADGB /19 UAE USD April 10 08/04/2019 1,500.0 Fixed 6.750% Government State of Qatar Qatar /14 Qatar USD April 5 09/04/2014 2,000.0 Fixed 5.150% Government State of Qatar Qatar /19 Qatar USD April 10 09/04/2019 1,000.0 Fixed 6.550% Government Mubadala Development Company MDC - GMTN B.V. UAE USD April 10 05/06/ Fixed 7.625% Mubadala Development Company MDC - GMTN B.V. UAE USD April 5 05/06/2014 1,250.0 Fixed 5.750% Dar Al Arkan Real Estate Development Company DAAR III SAR May 5 15/04/ Floating 3MSIBOR+4.00% Real Estate Aldar Properties Atlantic Finance Ltd UAE USD May 5 27/05/2014 1,250.0 Fixed 8.750% Real Estate Qatar Telecom Q.S.C. Qatar Telecom Q.S.C. Qtel International Finance Limited Qtel International Finance Limited Qatar USD June 10 10/06/ Fixed 7.875% Telecom Qatar USD June 5 10/06/ Fixed 6.500% Telecom CBB International Company Bahrain Bahrain USD June 5 17/06/ Fixed 6.247% Government TDIC Finance LTD TDIC Finance UAE USD June 5 02/07/2014 1,000.0 Fixed 6.500% Real Estate RAK Capital RAK Capital II UAE USD July 5 22/07/ Fixed 8.000% Government Dolphin Energy Limited LLC Dolphin 2019 UAE USD July 10 15/06/2019 1,250.0 Fixed 5.880% Oil and Gas Electricity Company Ras Laffan Liquefied Natural Gas Company Limited (3) Ras Laffan Liquefied Natural Gas Company Limited (3) Electricity Company II RasGas 2012 RasGas 2014 SAR July 20 06/07/2029 1,868.7 Floating 3MSIBOR+1.60% Power and Utilities USD July 3 30/09/ Fixed 4.500% Oil and Gas USD July 5 30/09/2014 1,115.0 Fixed 5.500% Oil and Gas Kuwait Centre Markaz 10

11 Fixed Income Type Notable Bond and Issuances During 2009 Issuer Name Country Currency Ras Laffan Liquefied Natural Gas Company Limited (3) Islamic Development Bank RasGas 2019 IDB Trust Limited Subscription Month Tenor (Years) Maturity Date Issue Size (USD Mn) Coupon Type Margin Sector USD July 10 30/90/ Fixed 6.75% Oil and Gas USD September 5 16/06/ Fixed 3.172% Government National Bank of Abu Dhabi NBAD 2014 UAE USD September 5 11/09/ Fixed 4.500% Abu Dhabi National Energy Company Abu Dhabi National Energy Company Taqa 2014 UAE USD September 5 15/09/2014 1,000.0 Fixed 4.750% Taqa 2019 UAE USD September 10 15/09/ Fixed 6.250% Abu Dhabi Commercial Bank ADCB /14 UAE USD October 5 08/10/2014 1,000.0 Fixed 4.750& Kuwait Projects Company Holding KWIPKK Kuwait USD October 7 17/10/ Fixed 8.875% Conglomerate Power and Utilities Power and Utilities Tourism Development and Investment Company Government of Dubai Government of Dubai TDIC Limited (TSL) Dubai DOF Limited (AED) Dubai DOF Limited (USD) UAE USD October 5 21/10/2014 1,000.0 Fixed 4.949% Real Estate UAE AED November 5 03/11/ Floating 3MEIBOR+3.70% Government UAE USD November 5 03/11/2014 1,250.0 Fixed 6.390% Government State of Qatar QATAR /40 Qatar USD November 30 20/01/2040 1,000.0 Fixed 6.400% Government State of Qatar QATAR /20 Qatar USD November 10 21/01/2020 2,500.0 Fixed 5.250% Government State of Qatar QATAR 4 01/20/15 Qatar USD November 5 20/01/2015 3,500.0 Fixed 4.000% Government Commercial Bank of Qatar COMQAT 2019 Qatar USD November 10 18/11/ Fixed 7.500% Commercial Bank of Qatar COMQAT 2014 Qatar USD November 5 18/11/2014 1,000.0 Fixed 5.000% Gulf International Bank Gulf International Bank SAR November 3 15/11/ Floating 3MSIBOR+1.28% First Gulf Bank First Gulf Bank UAE USD November 3 26/11/ Fixed 4.000% Hollandi Bank Hollandi Bank ( Tranche 2) SAR December 10 31/12/ Floating 6MSIBOR+1.90% Kuwait Centre Markaz 11

12 Markaz Research Offerings Strategic Research What to expect in 2010 (Jan-10) GCC Banks - Done with Provisions? (Jan-10) What is left for 2009? (Sept-09) Kuwait Investment Sector (Jun-09) Missing the Rally (Jun-09) Shelter in a Storm (Mar-09) Diworsification: The GCC Oil Stranglehold (Jan-09) This Too Shall Pass (Jan-09) Fishing in Troubled Waters (Dec-08) Down and Out: Stock Outlook (Oct-08) Mr. GCC Market-Manic Depressive (Sept-08) Global Investment Themes (June-08) To Yield or Not To Yield (May-08) The Golden Portfolio (Apr-08) Banking Sweet spots (Apr-08) The Vicious Square Monetary Policy options for Kuwait (Feb-08) China and India: Too Much Too Fast (Oct-07) A Potential USD 140b Industry: Review of Asset Management Industry in Kuwait (Sep-07) A Gulf Emerging Portfolio: And Why Not? (Jun-07) To Leap or To Lag: Choices before GCC Regulators (Apr-07) Derivatives Market in GCC (Mar-07) Managing GCC Volatility (Feb-07) GCC for Fundamentalists (Dec-06) GCC Leverage Risk (Nov-06) Daily Periodic Research Markaz Daily Morning Brief Markaz Kuwait Watch Daily Fixed Income Update Weekly KSE Market Weekly Review International Market Update Real Estate Market Commentary Monthly Mena Mergers & Acquisitions Option Market Activity GCC Quants Market Review GCC Corporate Earnings Quarterly GCC Equity Funds Thought Speaks Equity Research Statistics Infrastructure GCC Power GCC Ports GCC Water GCC Airports GCC Roads & Railways GCC ICT Real Estate Market Outlook Egypt Real Estate - Trends and Outlook(Feb-10) Kuwait Real Estate Outlook(Dec-09) Abu Dhabi Residential (Nov-09) Office Investment in KSA (Jul-09) Residential Real Estate Outlook (Jun-09) (Sep-08) Abu Dhabi (July-08) Algeria (Mar-08) Jordan (Mar-08) Kuwait (Feb-08) Lebanon (Dec-07) Qatar (Sep-07) (Jul-07) U.S.A. (May-07) Syria (Apr-07) Real Estate Strategic Research Sector Research GCC Distressed Real Estate Opportunities (Sep-09) GCC Real Estate Financing (Sept-09) Real Estate Earnings (May-09) Supply Adjustments Are we done? (Apr-09) Dubai Real Estate Meltdown (Feb-09) Kuwait Centre Markaz 12

13 Markaz Research Offerings Company Research UAE Qatar Bahrain Oman Electricity Company(Feb-10) n Mining Co(Feb-10) Yamama Cement (Feb-10) Etihad Etisalat (Feb-10) Al Marai Company (Dec-09) Arab National Bank (Oct-09) SAFCO (Oct-09) Al Rajhi Bank (Aug-09) Riyad Bank (Jul-09) Telecom Co. (May-09) Sabic (Mar-09) Samba Group (Feb-09) Investment Bank (Jan-09) Savola Group (Dec-08) Kingdom Holding Co (Dec-08) Kayan Petro Co. (Aug-08) Banque Fransi (Jun-08) Research Coverage Market Cap as % of total Market cap 40% Dubai Market (Sept-09) ADCB (Jun-09) DP World (Jun-09) NBAD (Feb-09) Sorouh Real Estate (Feb-09) Aldar Properties (Feb-09) Gulf Cement Company (Jan-09) Abu Dhabi National Hotels (Dec-08) Dubai Investments (Dec-08) Arabtec Holding (Dec-08) Air ( Nov-08) Union Properties (Nov-08) Dubai Islamic bank (Oct-08) Union National Bank (Aug-08) Emaar Properties (July-08) Dana Gas (July-08) FGB (July-08) Etisalat (Jun-08) Research Coverage Market Cap as % of total Market cap 48% Qatar Telecom (Jun-09) Industries Qatar (Apr-09) Qatar National Bank (Feb-09) United Development Co. (Feb-09) Qatar Fuel Co. (Dec-08) Qatar Shipping Co (Dec-08) Barwa Real Estate Co. (Nov-08) Qatar Int l Islamic bank (Nov-08) Qatar Insurance Co. (Nov-08) Qatar Gas Transport Co. (Oct-08) Doha Bank (Aug-08) QEWC (July-08) QISB (July-08) Masraf Al-Rayan (Jun-08) Commercial Bank of Qatar (Jun-08) Research Coverage Market Cap as % of total Market cap 95% Gulf Finance House (Oct-08) Esterad Investment Company (Aug-08) Bahrain Islamic Bank (Aug-08) Ithmaar Bank (July-08) Tameer (July-08) Batelco (July-08) Galfar Engineering & Cont. (Nov-08) Oman Telecommunications (Sept-08) Bank Muscat(Sept-08) Oman cement (Sept-08) Raysut Cement Company (Aug-08) National Bank of Oman (Aug-08) OIB (July-08) Research Coverage Market Research Coverage Market Cap as % of total Market cap 29% Cap as % of total Market cap 69% Egypt Commercial Int l Bank (Oct-08) Orascom Telecom (Sep-08) Mobinil (Sep-08) Telecom Egypt (Aug-08) EFG-Hermes (Jun-08) Research Coverage Market Cap as % of total Market cap 45% Jordan Arab Bank (Sept-08) Cairo Amman Bank (Oct-08) Research Coverage Market Cap as % of total Market cap 39% Markaz Research is available on: Bloomberg Type MRKZ <GO>, Thomson, Reuters Knowledge, Zawya Investor & Noozz. To obtain a print copy, kindly contact: Kuwait Centre Markaz Media and Communications Department Tel: Ext Fax: Postal Address: P.O. Box 23444, Safat, 13095, State of Kuwait info@markaz.com markaz.com/research Kuwait Centre Markaz 13

14 Disclaimer This report has been prepared and issued by Kuwait Centre S.A.K (Markaz), which is regulated by the Central Bank of Kuwait. The report is intended to be circulated for general information only and should not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy in any jurisdiction. The information and statistical data herein have been obtained from sources we believe to be reliable but no representation or warranty, expressed or implied, is made that such information and data is accurate or complete, and therefore should not be relied upon as such. Opinions, estimates and projections in this report constitute the current judgment of the author as of the date of this report. They do not necessarily reflect the opinion of Markaz and are subject to change without notice. Markaz has no obligation to update, modify or amend this report or to otherwise notify a reader thereof in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate, or if research on the subject company is withdrawn. This report does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. Investors are urged to seek financial advice regarding the appropriateness of investing in any securities or investment strategies discussed or recommended in this report and to understand that statements regarding future prospects may not be realized. Investors should note that income from such securities, if any, may fluctuate and that each security s price or value may rise or fall. Investors should be able and willing to accept a total or partial loss of their investment. Accordingly, investors may receive back less than originally invested. Past performance is historical and is not necessarily indicative of future performance. Kuwait Centre S.A.K (Markaz) does and seeks to do business, including investment banking deals, with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Kuwait Centre Markaz 14