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 0.7% to close at 8, Losses were led by the Real Estate and Industrials indices, falling 2.8% and 1.4%, respectively. Top losers were Ezdan Holding Group and Medicare Group, falling 5.4% and 3.7%, respectively. Among the top gainers, Al Khaleej Takaful Insurance Company gained 4.4%, while Islamic Holding Group was up 2.9%. GCC Commentary Saudi Arabia: The TASI Index rose 0.7% to close at 8, Gains were led by the Banks and Real Estate Mgmt & Dev. indices, rising 1.1% each. Al-Ahlia Insurance Co. rose 7.4%, while Saudi Real Estate Co. was up 7.0%. Dubai: The DFM General Index declined 0.6% to close at 2, The Real Estate & Const. index fell 0.9%, while the Transportation index declined 0.8%. Almadina for Finance and Investment Company fell 2.8%, while Emaar Malls was down 1.9%. Abu Dhabi: The ADX General Index fell 0.8% to close at 4, The Telecom. index declined 2.2%, while the Real Estate index fell 0.8%. Ras Al Khaima Poultry declined 9.9%, while Abu Dhabi National Co. for Building Materials was down 6.7%. Kuwait: The Kuwait Main Market Index fell 0.4% to close at 4, The Banks index fell 0.6%, while the Oil & Gas index declined 0.4%. Al Aman Investment Company fell 17.4%, while Shuaiba Industrial Company was down 9.6%. Oman: The MSM 30 Index fell 0.8% to close at 4, Losses were led by the Services and Financial indices, falling 0.6% and 0.4%, respectively. Oman Telecommunication fell 5.6%, while Voltamp Energy was down 3.7%. Bahrain: The BHB Index fell marginally to close at 1, The Commercial Banks index declined marginally, while the other indices ended flat or in green. National Bank of Bahrain declined 0.8%, while Bahrain Duty Free Complex was down 0.7%. QSE Top Gainers Close* 1D% Vol. 000 YTD% Al Khaleej Takaful Insurance Co (13.3) Islamic Holding Group (18.7) Qatar General Ins. & Reins. Co Qatar Navigation Qatar Islamic Bank Market Indicators 17 May May 18 %Chg. Value Traded (QR mn) Exch. Market Cap. (QR mn) 491, ,731.9 (0.8) Volume (mn) (24.2) Number of Transactions 3,812 4,034 (5.5) Companies Traded (4.7) Market Breadth 14:26 20:21 Market Indices Close 1D% WTD% YTD% TTM P/E Total Return 15, (0.7) All Share Index 2, (0.9) Banks 3, (0.3) Industrials 2, (1.4) (1.0) Transportation 1, (1.4) (0.9) 11.1 Real Estate 1, (2.8) (1.8) (14.5) 14.3 Insurance 3, (0.3) 4.2 (13.4) 24.3 Telecoms (1.2) (2.9) (12.2) 28.9 Consumer 5, (0.8) (1.4) Al Rayan Islamic Index 3, (1.0) (0.1) GCC Top Gainers ## Exchange Close # 1D% Vol. 000 YTD% Boubyan Petrochem. Co. Kuwait Etihad Etisalat Co. Saudi Arabia , Nat. Commercial Bank Saudi Arabia , National Mobile Telecom. Kuwait (17.6) Emaar Economic City Saudi Arabia (1.3) GCC Top Losers ## Exchange Close # 1D% Vol. 000 YTD% Al Ahli Bank of Kuwait Kuwait 0.31 (7.4) Oman Telecom. Co. Oman 0.75 (5.6) (37.9) Saudi British Bank Saudi Arabia (3.5) F. A. Al Hokair Saudi Arabia (2.6) (8.8) Masraf Al Rayan Qatar (2.3) (11.7) 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 8.70 (5.4) (28.0) Medicare Group (3.7) 58.7 (17.0) Qatari Investors Group (3.3) 13.3 (16.0) Masraf Al Rayan (2.3) (11.7) Industries Qatar (2.3) QSE Top Volume Trades Close* 1D% Vol. 000 YTD% QNB Group (0.0) 1, Qatar Gas Transport Company Ltd (0.7) (14.9) The Commercial Bank Ezdan Holding Group 8.70 (5.4) (28.0) Qatar Insurance Company (1.4) (22.6) Regional Indices Close 1D% WTD% MTD% YTD% QSE Top Value Trades Close* 1D% Val. 000 YTD% QNB Group (0.0) 243, Qatar Islamic Bank , The Commercial Bank , Industries Qatar (2.3) 16, Qatar Electricity & Water Co (0.5) 15, Source: Bloomberg (* in QR) Exch. Val. Traded ($ mn) Exchange Mkt. Cap. ($ mn) P/E** P/B** Dividend Yield Qatar* 8, (0.7) 1.6 (2.4) , Dubai 2, (0.6) 1.1 (5.0) (13.6) , Abu Dhabi 4, (0.8) (0.1) (5.1) , Saudi Arabia 8, (2.3) , Kuwait 4, (0.4) (0.4) 0.6 (2.7) , Oman 4, (0.8) (1.4) (2.4) (9.4) , Bahrain 1, (0.0) (4.4) , 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 0.7% to close at 8, The Real Estate and Industrials 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 Medicare Group were the top losers, falling 5.4% and 3.7%, respectively. Among the top gainers, Al Khaleej Takaful Insurance Company gained 4.4%, while Islamic Holding Group was up 2.9%. Volume of shares traded on Thursday fell by 24.2% to 6.3mn from 8.3mn on Wednesday. Further, as compared to the 30-day moving average of 10.1mn, volume for the day was 37.6% lower. QNB Group and Qatar Gas Transport Company Limited were the most active stocks, contributing 24.8% and 11.2% to the total volume, respectively. Overall Activity Buy %* Sell %* Net (QR) Qatari Individuals 28.96% 27.65% 5,372, Qatari Institutions 8.18% 32.74% (100,624,869.71) Qatari 37.14% 60.39% (95,252,035.78) GCC Individuals 0.43% 0.16% 1,128, GCC Institutions 1.30% 8.52% (29,588,163.81) GCC 1.73% 8.68% (28,459,341.59) Non-Qatari Individuals 5.30% 4.47% 3,394, Non-Qatari Institutions 55.82% 26.46% 120,316, Non-Qatari 61.12% 30.93% 123,711, Source: Qatar Stock Exchange (* as a % of traded value) Global Economic Data Date Market Source Indicator Period Actual Consensus Previous 05/17 US Department of Labor Initial Jobless Claims 12-May 222k 215k 211k 05/17 US Department of Labor Continuing Claims 5-May 1,707k 1,780k 1,794k 05/18 Germany German Federal Statistical Office PPI YoY April 2.0% 1.8% 1.9% 05/18 Germany German Federal Statistical Office PPI MoM April 0.5% 0.3% 0.1% 05/18 Germany German Federal Statistical Office Wholesale Price Index MoM April 0.5% 0.0% 05/18 Germany German Federal Statistical Office Wholesale Price Index YoY April 1.4% 1.2% Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted) News Qatar QNB Group revises up oil price forecasts to $69 for 2018 As a result of the recent strength in oil prices, QNB Group revised up its forecasts for average annual oil prices to $69 for barrel for 2018 from $63, and to $66 for 2019 from $61. Oil prices reached new highs for the year last week, peaking at $79 with the last leg-up given mainly by the news that the US is withdrawing from the international nuclear deal with Iran. QNB Group stated it expects oil prices to retreat from their current highs later this year as the impact on Iranian oil exports from new US sanctions is likely to be mitigated by increased exports elsewhere and by weakening demand growth. So far during 2018 oil prices have risen around 18%, averaging $69. A number of factors have pushed oil prices up more than expected this year, QNB Group stated in an economic commentary. (Gulf-Times.com) Qatar s monthly IPI for March decreases marginally The monthly Industrial Production Index (IPI) for March 2018 stood at points, showing a marginal decrease of 0.5% compared to the previous month (February 2018). When compared on YoY basis, the IPI index has decreased by 4.4% compared to the corresponding month of 2017, official data show. The industrial production index (IPI), issued the Ministry of Development Planning and Statistics (MDPS), study and analyze the economic activities in various sectors of the state, which include the growth of various industrial sectors of the local economy, including mining, quarrying, water and electricity production, and manufacturing sector. It is a short-term quantitative index that measures the changes in the volume of production of a selected basket of industrial products over a given period with respect to that in a chosen period called the base period. (Peninsula Qatar) Qatar s property market experiences strong demand Even as Qatar s property market experiences strong demand, new and creative products and services from real estate companies will continue to attract more investors, according to Just Real Estate s Chairman, Nasser Al Ansari. Al Ansari said, It is a must for real estate developers to adjust to what the market needs and to adapt to the current trends. Unlike before, the approach was build it and they will come, but now people are more selective when investing in real estate, and they are investing in growing cities like Lusail, The Pearl-Qatar, and other areas. The country s property market continues to witness strong demand, and real estate developers should think wisely by creating more services and products to attract more investors. (Gulf-Times.com) KPMG: Qatari banks to keep local market focus ahead of 2022 World Cup As the 2022 FIFA World Cup approaches, Qatari banks will keep primary focus on the local market, as opposed to looking overseas for growth, KPMG stated in its recent report on GCC banking sector entitled Shifting Horizons. Given the implementation of IFRS 9, banks will look to higher credit quality of assets for financing and investment opportunities. It stated the focus on innovation and efficiency will continue as banks look to differentiate themselves in a competitive market given the income pressures being faced and increasing regulatory requirements (such as Basel III and IFRS 9). We expect there to be continued control around the cost side of the business to ensure profitable growth remains and cost-to- Page 2 of 5

3 income ratios (CIRs) are maintained at low levels, KPMG stated. In its outlook, KPMG stated banks will continue to look to access the capital markets for funding through the Euro medium-term note and Sukuk issuances, to help support growth. (Gulf-Times.com) More residential units to top up Qatar s property market in 2018 An estimated 13,000 residential units are expected to be completed by the end of 2018, assuming no construction delays. These include 14 high rise apartment blocks on The Pearl and 36 apartment buildings in Lusail. Qatar property market s total housing stock by the end of 2017 was approximately 286,125 units. For 1Q2018, nearly 1,200 units were added. Majority of transactions were in Al Rayyan (29%) followed by Doha (21%), Al Daayen (20%) and Umm Salal (12%). There were 30 transactions for residential buildings with 45% transactions above the median ticket price concentrated in The Pearl, Fereej Abdul Aziz and Old Airport. (Peninsula Qatar) UK s top Qatari LNG importer seeks to broaden supply as cargoes slump Britain s busiest liquefied natural gas (LNG) import terminal, South Hook, is seeking to broaden its sources of supply as robust Asian demand diverts cargoes from Qatar, the terminal s majority shareholder. Volumes to the terminal, in which Qatar Petroleum owns a controlling stake, have halved so far this year from a year ago to 1.2mn cubic meters (mcm) and amount to just 15% of 2016 volumes for the same period. South Hook, in Wales, has been seeking to broaden the specification of its gas since January, a proposal that was approved late by the Joint Office of Gas Transporters (JOGT), which administers the rules for transporting gas in Britain. (Zawya) Umm Al Houl water plant fully ready The water production stages of the Umm Al Houl Power Plant have been completed, according to Kahramaa s General Manager and Managing Director, Fahad Hamad Al Mohannadi. Al Mohannadi said that the announcement of the completion of the water production stages of the plant confirmed that the project was ahead of schedule and demonstrated the ability of Qatar Electricity and Water Company to fulfill its obligations towards the state, especially as the company was working on completing its local projects at an accelerated pace. (Gulf-Times.com) Hamad Port receives record number of vessels in April Hamad Port achieved yet another milestone as it received highest number of vessels in April. A total of 148 commercial vessels called at Hamad Port which is the highest monthly number ever recorded since the start of operations at the port. Additionally, QTerminals handled a record-breaking 122,825 Twenty-Foot Equivalent Units (TEUs) containers in April which is 17% increase over the previous month. Qterminals was set up by Qatar Navigation (Milaha) and Qatar Ports Management Company (Mwani Qatar) to manage the port In total, 130 commercial vessels had called at Hamad Port in march, compared to 120 vessels in February and 137 vessels in January this year. (Peninsula Qatar) Qatar-Canada trade reaches QR633.8mn in 2017 Economy and Commerce Minister, HE Sheikh Ahmed Bin Jassem Al Thani, Minister of Economy and Commerce, met with the visiting Minister of Immigration, Refugees and Canadian Citizenship, Ahmed Hussen, and his accompanying delegation. During the meeting, they reviewed bilateral relations between the two countries and discussed aspects of joint cooperation, especially in the field of economic, trade and investment. They also exchanged ideas on means of developing and expanding the bilateral cooperation. Trade between Qatar and Canada reached QR633.8mn in (Peninsula Qatar) International US labor market tightening; mid-atlantic factory activity picks up New applications for US jobless benefits increased more than expected last week, but the number of Americans on unemployment rolls fell to its lowest level since 1973, pointing to diminishing labor market slack. Other data showed acceleration in mid-atlantic factory activity this month, with manufacturers saying they were boosting employment and asking for higher prices for their products. The combination of a tightening labor market and firming inflation bolsters expectations the Federal Reserve will raise interest rates next month. The labor market is viewed as being close to or at full employment, with the jobless rate near a 17-1/2-year low of 3.9% and within striking distance of the Fed s forecast of 3.8% by the end of this year. (Reuters) Japan s April core CPI rises 0.7% YoY Japan s core consumer prices rose 0.7% in April from a year earlier, government data showed. The core consumer price index, which includes oil products but excludes fresh food prices, compared with economists median estimate for 0.8% annual gain. Stripping away the effect of fresh food and energy, consumer prices rose 0.4% in April from a year ago. (Reuters) Bank of Japan inflation target recedes as consumers resist price rises Japan s core consumer price growth slowed in April for a second straight month, showing little of the inflationary momentum needed to reach the central bank s elusive 2% target. The weakness in April inflation is particularly unwelcome for the Bank of Japan, which had hoped companies would rush to hike prices at the start of a new business year. The core consumer price index, which includes oil products but excludes volatile fresh food costs, rose 0.7% in April from a year earlier, slightly less than a median market forecast for 0.8% rise. It followed 0.9% gain in March, marking the second straight month of slowdown, despite recent gains in oil prices that pushed up electricity and gasoline bills. The pace of increase in the core-core CPI, an index closely watched by the BoJ that strips away the impact of fresh food and energy costs, slowed to 0.4% from 0.5% in March. (Reuters) Japan s exports seen rising for 17th straight month in April Japan s exports are expected to have risen for 17th straight month in April due to solid global demand, a Reuters poll showed. Exports likely grew 8.1% in April from a year ago, the poll of 16 economists found, accelerating from 2.1% rise in March, supported by shipments of autos and capital goods such as machinery. Imports were expected to rise 9.6% last month from a year earlier after oil price gains drove up import costs, the poll showed, compared with 0.6% decline in March. (Reuters) China s second quarter GDP growth seen easing to around 6.7% China s economy will likely expand around 6.7% in the second quarter this year, the State Information Center (SIC) stated in an article in the state-owned China Securities Journal. The Page 3 of 5

4 forecast was slightly slower than the 6.8% expansion posted in the first quarter. April activity data released earlier this week suggested that the world s second-largest economy is starting to lose some momentum, as analysts have long predicted, as the government continues a crackdown on riskier types of financing. Despite stronger-than-expected first-quarter growth, economists polled by Reuters still expect a gradual slowdown to around 6.5% this year, which is also the government s target, assuming there are no trade shocks. (Reuters) Regional Saudi Arabia assures on supply as oil hits $80 per barrel Saudi Arabia stated it is consulting other oil producers in and outside OPEC to ensure the world has adequate supplies to support economic growth after prices hit $80 per barrel for the first time since Saudi Arabia s Energy Minister, Khalid Al-Falih said that he had called his counterparts in the UAE, the US and Russia, as well as major oil consumer South Korea, to coordinate global action to ease global market anxiety. Al Falih also said he had reassured the Executive Director of the International Energy Agency of commitment to the stability of oil markets and the global economy and that he would contact others over the next few days. (Reuters) Moody s: Saudi Arabia s rating to be judged on reform progress Saudi Arabia s future sovereign credit rating will be judged on the success of its reform program rather than its oil revenues, rating agency Moody s stated. Moody s Managing Director of Global Sovereign Ratings, Alastair Wilson said he attached importance to institutional determination to implement change and would also look at efforts made to diversify the economy to make it less reliant on fossil fuels. He said that a simple reversion to oil price strength would not result in an automatic strengthening of Saudi Arabia s or any other GCC state s sovereign ratings. (GulfBase.com) Saudi Arabian developer, Sreco eyes $640mn capital hike Saudi Real Estate Company (Sreco) stated it has won approval from the company s board to double its share capital from $320mn to $640mn. Sreco stated the board has recommended issuing of one bonus share for every share. The number of outstanding shares will rise to 240mn from 120mn, it added. The move comes in line with the company s desire to match its capital with current assets, as part of its strategy to become an integrated real estate development company. (GulfBase.com) Dubai s trade sector to see robust demand Dubai s trade sector is forecasted to record robust demand in 2018, supported by key factors such as price competition, accessibility and global demand, according to a new survey from the Dubai Chamber of Commerce and Industry. According to the survey, traders of household goods were most optimistic about their performance in 2018, followed by those operating in the machinery, consumer goods, and textiles sub-sectors. A strong majority of survey respondents said they expect customers to be more selective and demanding in the near future. (GulfBase.com) Dubai issues 1,848 new trade licenses in April The Dubai Department of Economic Development (DED) issued 1,848 new business licenses during April 2018 as the Emirate remained a destination of choice for investment in diverse business sectors. The Business Map digital platform of DED saw 26,498 business registration and licensing transactions being completed during the month as economic diversification and competitiveness continued to strengthen the Emirate s ability to sustain business growth. (GulfBase.com) Bank Muscat Izdihar s assets grow 74% to $90mn Bank Muscat Izdihar Real Estate Fund (Izdihar) concluded its second year of operations with impressive accomplishments in both performance and growth. The fund grew assets by 74% reaching $90mn and positioned itself as one of the largest real estate funds in the region. The fund maintained a dividend of more than 10% in its second year of operations, significantly above its target of 7-8%. (GulfBase.com) Bahrain slow to implement reforms despite debt woes Greylock Capital Management, a hedge fund that holds the distressed bonds of Mozambique and Venezuela, stated that Bahrain is its next potential target. The cash-strapped Gulf nation has been slow to implement reforms compared with its richer neighbors, including Saudi Arabia, after the slide in oil prices that began in 2014 eroded their wealth. Bahrain will have to revive its financial fortunes to prevent its debt from slumping to distressed levels. The central bank s foreign assets dropped in March to the lowest level in seven months and the International Monetary Fund expects the island Kingdom s debt to exceed 100% of economic output in (GulfBase.com) Page 4 of 5

5 Rebased Performance Daily Index Performance Apr-14 Apr-15 Apr-16 Apr-17 Apr-18 QSE Index S&P Pan Arab S&P GCC 1.0% 0.5% 0.0% (0.5%) (1.0%) 0.7% Saudi Arabia (0.7%) Qatar (0.4%) Kuwait (0.0%) Bahrain (0.8%) (0.8%) Oman Abu Dhabi (0.6%) Dubai Source: Bloomberg Source: Bloomberg Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D%* WTD%* YTD%* Gold/Ounce 1, (1.9) (0.8) MSCI World Index 2, (0.2) (0.5) 0.8 Silver/Ounce (1.3) (2.9) DJ Industrial 24, (0.5) (0.0) Crude Oil (Brent)/Barrel (FM Future) (1.0) S&P 500 2, (0.3) (0.5) 1.5 Crude Oil (WTI)/Barrel (FM Future) (0.3) NASDAQ 100 7, (0.4) (0.7) 6.5 Natural Gas (Henry Hub)/MMBtu (21.5) STOXX (0.5) (0.9) (0.6) LPG Propane (Arab Gulf)/Ton (3.1) 5.6 (3.8) DAX 13, (0.5) (0.9) (0.8) LPG Butane (Arab Gulf)/Ton (2.0) 3.7 (11.5) FTSE 100 7, (0.4) Euro 1.18 (0.2) (1.4) (1.9) CAC 40 5, (0.3) (0.2) 3.6 Yen (1.7) Nikkei 22, (0.5) 2.5 GBP 1.35 (0.3) (0.5) (0.3) MSCI EM 1, (0.6) (2.3) (1.8) CHF (2.3) SHANGHAI SE Composite 3, (0.0) (0.8) (2.6) AUD # (0.4) (3.8) HANG SENG 31, (0.2) 3.3 USD Index BSE SENSEX 34, (1.1) (2.8) (3.9) RUB Bovespa 83, (1.8) (6.5) (4.0) BRL 0.27 (1.0) (3.6) (11.4) RTS 1, (0.7) (1.7) 1.6 Source: Bloomberg ( # Market closed on May 18, 2018) Source: Bloomberg (*$ 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) 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 5 of 5