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1 QSE Intra-Day Movement 9,200 9,100 9,000 8,900 8,800 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 8, Losses were led by the Insurance and Telecoms indices, falling 5.4% and 3.2%, respectively. Top losers were Qatar Insurance Co. and Ooredoo, falling 6.7% and 3.8%, respectively. Among the top gainers, Qatar Gas Transport Co. Ltd rose 10.0%, while Qatar Cinema & Film Distribution Co. was up 7.4%. GCC Commentary Saudi Arabia: The TASI Index fell 2.6% to close at 7, Losses were led by the Banks and Food & Beverages indices, falling 4.6% and 4.5%, respectively. National Commercial Bank fell 6.9%, while Savola Group was down 6.5%. Dubai: The DFM Index declined 0.3% to close at 3, The Consumer Staples index fell 1.3%, while the Insurance index declined 1.1%. Ekttitab Holding Company fell 3.6%, while Takaful Emarat was down 2.6%. Abu Dhabi: The ADX benchmark index fell 0.5% to close at 4, The Industrial index declined 2.2%, while the Consumer Staples index fell 1.1%. Abu Dhabi Ship Building declined 8.7%, while Union National Bank was down 5.3%. Kuwait: The KSE Index rose 1.1% to close at 6, The Oil & Gas index gained 4.5%, while the Industrial index rose 2.1%. Burgan Company for Well Drilling, Trading & Maintenance and Contracting & Marine Services Co. were up 20.0% each. Oman: The MSM Index rose 0.2% to close at 5, The Services index gained 0.2%, while other indices ended in red. Raysut Cement rose 1.3%, while Bank Muscat was up 1.1%. Bahrain: The BHB Index gained 0.1% to close at 1, The Industrial index rose 0.8%, while the Commercial Banks index gained 0.3%. Al Salam Bank - Bahrain rose 1.1%, while Aluminum Bahrain was up 0.8%. QSE Top Gainers Close* 1D% Vol. 000 YTD% Qatar Gas Transport Co. Ltd ,053.0 (19.0) Qatar Cinema & Film Distribution Gulf International Services ,517.0 (33.4) Gulf Warehousing Co (19.6) Doha Insurance Co (19.4) Market Indicators 04 Jul Jul 17 %Chg. Value Traded (QR mn) (0.8) Exch. Market Cap. (QR mn) 479, ,514.1 (0.6) Volume (mn) Number of Transactions 4,294 4,388 (2.1) Companies Traded (2.3) Market Breadth 32:10 28:10 Market Indices Close 1D% WTD% YTD% TTM P/E Total Return 14, (0.5) (1.5) (11.7) 14.7 All Share Index 2, (0.3) (1.8) (11.7) 13.1 Banks 2, (0.9) (2.4) (8.3) 11.6 Industrials 2, (2.4) (17.3) 16.4 Transportation 2, (17.0) 12.5 Real Estate 1, (1.7) (11.7) 12.5 Insurance 3, (5.4) (3.7) (12.3) 16.5 Telecoms 1, (3.2) (1.8) (8.6) 20.8 Consumer 5, (1.6) (10.2) 11.7 Al Rayan Islamic Index 3, (2.7) (9.1) 15.9 GCC Top Gainers ## Exchange Close # 1D% Vol. 000 YTD% Arabtec Holding Co. Dubai ,087.0 (39.5) Qatar Gas Transport Co. Qatar ,053.0 (19.0) United Arab Bank Abu Dhabi (6.3) Kuwait Food Co. Kuwait (7.7) Gulf International Serv. Qatar ,517.0 (33.4) GCC Top Losers ## Exchange Close # 1D% Vol. 000 YTD% Qatar Insurance Co. Qatar (6.7) 64.5 (11.7) Savola Group Saudi Arabia (6.5) Saudi British Bank Saudi Arabia (6.1) Samba Financial Group Saudi Arabia (5.6) 1, Union National Bank Abu Dhabi 4.45 (5.3) 1,498.4 (2.0) 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% Qatar Insurance Co (6.7) 64.5 (11.7) Ooredoo (3.8) 61.3 (10.7) QNB Group (3.1) (16.9) Qatari Investors Group (2.5) 59.0 (26.0) National Leasing (2.2) (12.2) QSE Top Volume Trades Close* 1D% Vol. 000 YTD% Gulf International Services ,517.0 (33.4) Qatar Gas Transport Co. Ltd ,053.0 (19.0) Vodafone Qatar ,554.5 (13.4) National Leasing (2.2) (12.2) Mesaieed Petrochemical Holding (0.8) (18.4) Regional Indices Close 1D% WTD% MTD% YTD% QSE Top Value Trades Close* 1D% Val. 000 YTD% Gulf International Services ,487.4 (33.4) Qatar Gas Transport Co. Ltd ,253.5 (19.0) QNB Group (3.1) 21,175.1 (16.9) Masraf Al Rayan , National Leasing (2.2) 13,345.6 (12.2) Source: Bloomberg (* in QR) Exch. Val. Traded ($ mn) Exchange Mkt. Cap. ($ mn) P/E** P/B** Dividend Yield Qatar* 8, (0.5) (1.5) (1.5) (14.8) , Dubai 3, (0.3) (3.3) ,807.3 N/A Abu Dhabi 4, (0.5) (0.8) (0.8) (3.4) , Saudi Arabia 7, (2.6) (1.7) (1.7) , Kuwait 6, (1.8) (1.8) , Oman 5, (0.4) (0.4) (11.8) , Bahrain 1, , 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 6

2 Qatar Market Commentary The QSE Index declined 0.5% to close at 8, The Insurance and Telecoms indices led the losses. The index fell on the back of selling pressure from GCC and non-qatari shareholders despite buying support from Qatari shareholders. Qatar Insurance Co. and Ooredoo were the top losers, falling 6.7% and 3.8%, respectively. Among the top gainers, Qatar Gas Transport Co. Ltd rose 10.0%, while Qatar Cinema & Film Distribution Co. was up 7.4%. Volume of shares traded on Tuesday rose by 32.4% to 13.0mn from 9.8mn on Monday. However, as compared to the 30-day moving average of 13.6mn, volume for the day was 4.1% lower. Gulf International Services and Qatar Gas Transport Co. Ltd were the most active stocks, contributing 19.3% and 15.8% to the total volume, respectively. Overall Activity Buy %* Sell %* Net (QR) Qatari Individuals 57.34% 36.51% 60,074, Qatari Institutions 9.95% 25.21% (44,010,509.15) Qatari 67.29% 61.72% 16,063, GCC Individuals 0.66% 3.81% (9,062,872.14) GCC Institutions 2.33% 4.23% (5,481,067.80) GCC 2.99% 8.04% (14,543,939.94) Non-Qatari Individuals 18.30% 14.18% 11,863, Non-Qatari Institutions 11.42% 16.06% (13,383,798.23) Non-Qatari 29.72% 30.24% (1,519,832.18) Source: Qatar Stock Exchange (* as a % of traded value) Global Economic Data and Earnings Calendar Global Economic Data Date Market Source Indicator Period Actual Consensus Previous 07/04 EU Eurostat PPI MoM May -0.4% -0.2% 0.0% 07/04 EU Eurostat PPI YoY May 3.3% 3.5% 4.3% 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 2Q2017 results No. of days remaining Status QNBK QNB Group 11-Jul-17 6 Due IHGS Islamic Holding Group 11-Jul-17 6 Due MARK Masraf Al Rayan 17-Jul Due KCBK Al Khaliji 17-Jul Due CBQK Commercial Bank 18-Jul Due WDAM Widam Food Company 18-Jul Due QIBK Qatar Islamic Bank 18-Jul Due ABQK Ahli Bank 18-Jul Due UDCD United Development Company 18-Jul Due DHBK Doha Bank 19-Jul Due QIIK Qatar International Islamic Bank 23-Jul Due QIMD Qatar Industrial Manufacturing Company 25-Jul Due ORDS Ooredoo 26-Jul Due NLCS National Leasing (Alijarah) 27-Jul Due AKHI Al Khaleej Takaful Insurance 3-Aug Due Source: QSE Page 2 of 6

3 News Qatar Qatar s central bank sells QR1bn of Treasury bills at monthly auction Qatar's central bank said it sold QR1bn of Treasury bills in its monthly auction, with yields rising sharply from the previous month's sale. It sold QR500mn of three-month bills at a yield of 2.05%, QR300mn of six-month bills at 2.22% and QR200mn of nine-month bills at 2.50%. At the previous sale, the central bank sold QR690mn of Treasury bills: QR300mn of three-month at 1.85%, QR200mn of six-month at 2.05%, and QR190mn of nine-month at 2.18%. (QCB, Zawya) QP-Total JV North Oil Company to be inaugurated on July 14 Qatar s North Oil Company, a 70:30 joint venture (JV) between Qatar Petroleum (QP) and France s Total that will operate the country s giant Al Shaheen offshore oil field, will be inaugurated on July 14. The oil field, located in Qatari waters 80 kilometers north of Ras Laffan, has a production capacity of 300,000 bpd. Beginning production in 1994, the existing development consists of 30 platforms and 300 wells. At present Maersk Oil and Gas is the operator of the field and the current 25-year production sharing agreement expires on July 13, (Gulf-Times.com) Qatar to boost its LNG output by 30% to 100Mta Qatar, which accounts for one-third of the global liquefied natural gas (LNG) market, is enhancing its LNG production by 30% to 100mn tons per annum (Mta), a move that could substantially boost the fastest growing economy and support the exchequer. The production boost comes through doubling of LNG output from the new export-oriented gas project in the North Field, which is expected to be completed in 5-7 years, Qatar Petroleum President and Chief Executive Officer Saad Sherida al-kaabi said. The new project would increase the North Field s production of natural gas, condensate and other associated products by 1mn barrels of oil equivalent per day to cumulative 6mn barrels of oil equivalent per day. In April 2017, Al-Kaabi had announced the lifting of moratorium on North Field, which is the world's largest non-associated natural gas field, and disclosed the proposed gas project in the southern sector of the North Field but had not decided if exports will be in the form of LNG, GTL (gas-to-liquids) or pipeline gas. (Gulf-Times.com) QP plans legal action against ADNOC Qatar Petroleum (QP) said it planned to take legal action against Abu Dhabi National Oil Company (ADNOC) after the latter invoked a force majeure clause on condensate shipments, as a regional Gulf spat between the OPEC member s risks spilling over to oil. Qatar is locked in a diplomatic row with fellow OPEC powers Saudi Arabia and the United Arab Emirates (UAE), as well as Egypt and Bahrain, who severed diplomatic and transport ties with Doha, accusing it of supporting terrorism. (Peninsula Qatar) AKHI to disclose its semi-annual financials on August 3 Al Khaleej Takaful Group (AKHI) announced it would disclose its semi-annual financial reports for the period ending June 30, 2017 on August 3, (QSE) Qatar Chamber: New industrial investment prospects to be revealed soon New investment opportunities in the industrial sector will be announced in the near future by the Coordinating Committee for Single Window System Management, an official of Qatar Chamber said. Speaking in the program Aswaq aired over Qatar Radio, Qatar Chamber Director General Saleh bin Hamad al-sharqi said the committee, in which Qatar Chamber is a member, helped facilitate the issuance of industrial licenses. Al-Sharqi also pointed out that the Single Window Project encouraged businessmen and investors in the food sector and other industries to immediately address the needs of the local market. One of the positive impacts of the economic blockade imposed on Qatar is that the authorities concerned united their efforts to increase the dependence on local products and decrease importing from neighboring countries. There is a great interest in expanding the local industry to meet demands of the domestic market and export surplus abroad, he stressed. (Gulf-Times.com) Qatar Airways launches direct service to Nice Qatar Airways announced the launch of direct service between Doha and Nice, the airline s second destination in France. Located on the magnificent French Riviera, Nice has a true cosmopolitan vibe with fashionable boutiques and restaurants, alongside magnificent beaches. (Peninsula Qatar) QIBK s subsidiary woos customers with convenient solutions With an increase of Qatari interest in Britain, QIB-UK, a wholly owned subsidiary of Qatar Islamic Bank (QIBK), has said it is working closely with its parent company to develop solutions that suit the financial requirements of its customers. Using the QIB-UK debit card, customers seeking to explore Britain for tourism, education, or investment opportunities can enjoy several benefits, including access to all ATM machines in the UK 24/7. (Gulf-Times.com) International Bank of England demands tougher line on consumer lending The Bank of England (BoE) took a tougher approach towards banks over their booming lending to consumers on July 4, ordering them to apply credit rules prudently and prove by September they are not being too complacent about risks to their balance sheets. The BoE, which can force curbs on lending, said last week it had spotted weaknesses in the way firms have been ramping up offers of credit to consumers who are the main driver of Britain's economy. Consumer borrowing is growing at more than 10% a year, while the household savings rate has hit an all-time low, raising concerns that some Britons are overstretching and could struggle to make repayments if interest rates rise. The BoE's Prudential Regulation Authority (PRA) did not set out any new rules, but its move was the first time it has ordered firms to apply consumer credit rules more conservatively and think harder about lending assumptions. It is also making company boards directly responsible for acting on its recommendations. (Reuters) Japan s June services PMI rises to 53.3, highest since August 2015 Activity in Japan's services sector accelerated from the previous month to expand at its fastest pace in almost two years, a private survey showed, in a sign that domestic consumption is in a healthy state. The Markit/Nikkei Japan Services Purchasing Managers Index (PMI) rose to a seasonally adjusted 53.3 in June from 53.0 in May as new business, outstanding business and hiring expanded. The index remained above the 50 threshold that separates expansion from Page 3 of 6

4 contraction for the ninth consecutive month and reached the highest level since August (Reuters) Caixin PMI: China's services sector loses steam in June China's services sector grew at a slower pace in June as new orders slumped, signaling renewed pressure on businesses after a pickup in May and pointing to a softening outlook for the economy, a private business survey showed. The findings reinforced analyst views that the world's second-largest economy is cooling after a strong start to the year, as Beijing cracks down on easy credit to contain a dangerous build-up in debt and defuse financial risks. The Caixin/Markit services purchasing managers' index (PMI) dropped to 51.6 in June from 52.8 in May, when a surprise rebound broke four straight months of declines. The June figure marks the second-lowest business activity level for service providers in over a year. Subdued demand was behind the latest slowdown, as the new business sub-index weakened to 51.9 in June from May's 53.5, hitting its lowest since May (Reuters) Regional Moody s: Solid fundamentals support UAE s credit strength Strong economic fundamentals support UAE s sovereign credit strength according to Moody s which has assigned a credit rating of Aa2 and upgraded the credit outlook from Negative to Stable recently. Moody s said its recent change in outlook for the UAE economy was in response to effective policy response to the low oil price environment via acceleration in the country s reform agenda and the ongoing recovery in the fiscal and current account balances. The UAE recorded a strong economic growth of 3% last year despite low oil prices. Superior infrastructure supporting diversification, very high per capita income and hydrocarbon reserves of more than 70 years at the current rate of production also support creditworthiness. In addition, the UAE s domestic politics have a track record of stability and the country has strong international relations, said Mathias Angonin, a Credit Analyst with Moody s. Analysts say the UAE s main credit challenge relates to weaker economic and fiscal metrics caused by the oil price shock and the country s fiscal reliance on hydrocarbons with 48% of government revenue in 2016 coming from this sector. The UAE s non-oil growth decelerated again in 2016 to 2.7% from 3.2% in 2015 and 4.6% in This relative slowdown is likely to extend into 2017, followed by a gradual recovery in (GulfBase.com) Dubai s June real estate sales at AED3,007mn Dubai s real estate sales totaled at AED3,007mn in June (vs. AED5,314mn in May, down 27.7% YoY). Land sales stood at AED1,808mn, followed by unit sales (AED1,013mn) and building (AED18mn) in June. January to June 2017 real estate sales was up by 13.6% YoY to AED25.3bn, while mortgage deals totaled at AED31.97bn (up 8.2% YoY). (Bloomberg) Dubai Investments in talks to acquire Union Properties' stake in Emicool Dubai Investments said that it is in initial talks to buy Union Properties's stake in Emirates District Cooling LLC (Emicool), in a move to take full control of the district cooling service provider. Emicool, an equally owned venture between Dubai Investments and Dubai property developer Union Properties, had been slated for a flotation this year. (Reuters) DAMAC Properties appoints former HSBC executive to speed up UK and Europe expansion DAMAC Properties said its international arm has hired Richard Choi, former HSBC Head of EMEA and Americas Real Estate to speed up its expansion in the UK and Europe. (Reuters) Deutsche Bank opposes Dana Gas attempt to extend injunction Deutsche Bank opposed attempt by Dana Gas in London court to extend injunction that prevents action in connection with its Sukuk al-mudarabah by representatives of Sukuk holders. The bank said in legal documents that Dana Gas s actions sent shockwaves around the market for Islamic bonds and its true purpose was to enhance its own position by preventing the certificate holders from exercising their rights under the certificates whilst it seeks to renegotiate their terms. (Bloomberg) TAQA starts production at Kurdistan oil block Abu Dhabi National Energy Company (TAQA) announced that oil production has started at its Atrush Block in the Kurdistan Region of Iraq. The TAQA-operated Atrush Block is being developed together with the Kurdistan Regional Government, ShaMaran and Marathon Oil. (GulfBase.com) Abu Dhabi Wealth Fund says long-term gains slowly for second year The Abu Dhabi Investment Authority (ADIA) said its long-term gains dropped for a second consecutive year in The fund s 20-year annual rate of return fell to 6.1% at the end of 2016, from 6.5% a year earlier, and 7.4% in Over three decades, annual returns slowed to 6.9% from 7.5%. Fitch Ratings last July estimated that ADIA s assets would drop to $475bn at the end of 2016, from an estimated $502bn in ADIA also said it will focus its private-equity investment drive around China and India after long-term gains dropped for a second consecutive year. (GulfBase.com, Bloomberg) Arkan Al Kuwait Real Estate sells Bneid Al-Qar property Arkan Al Kuwait Real Estate Company sold its Bneid Al-Qar property for a total value of KD2.95mn, with net profit of KD1.3mn. Profit from the property sale would be recorded in the third quarter ending July 31. (Reuters) Nafais Holding board approves capital decrease Nafais Holding Company s board approved share capital decrease to KD10mn from KD32.1mn. (Reuters) Oman appoints consultant for coal-based power study Finland-based international consulting and engineering services firm Pöyry has been selected by the Omani government to study the feasibility of establishing a first-ever coal-based Independent Power Project (IPP) in the Sultanate. (GulfBase.com) GFH gets central bank s approval for up to 5% share buyback GFH Financial Group (GFH) received approval from Central Bank of Bahrain to acquire treasury shares of up to 5% of company's total issued shares. Meanwhile, Integrated Capital (IC) transferred 16.3mn of GFH s shares from IC s DFM NIN to IC s account with Ajman Bank. GFH said that the IC remains owner of these shares and IC s total direct and indirect shareholding in GFH remains at %. (Reuters) Investcorp makes first realty buy in Europe Investcorp announced it has completed its first two real estate investments in Europe. Investcorp has acquired two modern warehouse units in Doncaster, one of the most important Page 4 of 6

5 distribution locations in the UK. Additionally, Investcorp has acquired a light manufacturing facility on the Sutton Fields Estate, the largest industrial estate within Hull. (GulfBase.com) Page 5 of 6

6 Saudi Arabia Qatar Kuwait Bahrain Oman Abu Dhabi Dubai Rebased Performance Daily Index Performance % 0.0% (1.5%) (3.0%) (2.6%) (0.5%) 1.1% 0.1% 0.2% (0.5%) (0.3%) 70.0 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 QSE Index S&P Pan Arab S&P GCC Source: Bloomberg Source: Bloomberg Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D%* WTD%* YTD%* Gold/Ounce 1, (1.5) 6.2 MSCI World Index 1, (0.1) Silver/Ounce (0.3) (3.3) 1.0 DJ Industrial # 21, Crude Oil (Brent)/Barrel (FM Future) (0.1) 3.5 (12.7) S&P 500 # 2, Crude Oil (WTI)/Barrel (FM Future) # (12.4) NASDAQ 100 # 6, (0.5) 13.5 Natural Gas (Henry Hub)/MMBtu # (20.0) STOXX (0.3) LPG Propane (Arab Gulf)/Ton # (13.4) DAX 12, (0.4) LPG Butane (Arab Gulf)/Ton # (41.0) FTSE 100 7, (0.5) (0.0) 7.9 Euro 1.13 (0.2) (0.7) 7.9 CAC 40 5, (0.5) Yen (0.1) 0.8 (3.1) Nikkei 20, (0.7) 8.0 GBP 1.29 (0.2) (0.8) 4.7 MSCI EM 1, (0.7) (0.4) 16.8 CHF 1.04 (0.2) (0.7) 5.5 SHANGHAI SE Composite 3, (0.6) (0.8) 4.6 AUD 0.76 (0.7) (1.1) 5.5 HANG SENG 25, (1.5) (1.5) 14.6 USD Index # (5.9) BSE SENSEX 31, RUB (3.4) Bovespa 63, (0.2) BRL 0.30 (0.3) (0.1) (1.7) RTS 1, (11.7) Source: Bloomberg ( # Market closed on July 4, 2017) Source: Bloomberg (*$ adjusted returns, # Market closed on July 4, 2017) 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 6 of 6