8,140 8,120 8,100 8,080 8,060 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 8,140 8,120 8,100 8,080 8,060 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00 Qatar Commentary The QSE Index rose 0.2% to close at 8, Gains were led by the Transportation and Real Estate indices, gaining 1.2% and 0.7%, respectively. Top gainers were Qatar National Cement Co. and Al Khalij Commercial Bank, rising 3.1% and 2.5%, respectively. Among the top losers, Islamic Holding Group fell 4.8%, while Qatari Investors Group was down 4.3%. GCC Commentary Saudi Arabia: The TASI Index rose 0.3% to close at 6, Gains were led by the Utilities and Real Estate Mgmt & Dev't indices, rising 3.5% and 1.6%, respectively. Tabuk Cement Co. rose 9.9%, while Northern Region Cement Co. was up 7.6%. Dubai: The DFM Index gained 0.7% to close at 3, The Financial & Investment Services index rose 3.4%, while the Industrial index gained 2.9%. Dubai Investments rose 4.4%, while National Cement Company was up 2.9%. Abu Dhabi: The ADX benchmark index rose 0.1% to close at 4, The Energy index gained 3.3%, while the Investment & Financial Services index rose 0.5%. Green Crescent Insurance Co. gained 9.1%, while Gulf Cement Co. was up 7.0%. Kuwait: The KSE Index rose 0.3% to close at 6, The Industrial index gained 2.0%, while the Oil & Gas index rose 1.5%. Nafais Holding Company gained 17.7%, while Senergy Holding Company was up 9.5%. Oman: The MSM Index fell 0.7% to close at 4, Losses were led by the Services and Industrial indices, falling 0.8% each. Oman Cables Industry fell 7.1%, while Almaha Petroleum Products was down 5.2%. Bahrain: The BHB Index gained 0.2% to close at 1, The Commercial Banka index rose 0.5%, while the other index ended flat or in red. Ithmaar Holding rose 4.0%, while Ahli United Bank was up 0.7%. QSE Top Gainers Close* 1D% Vol. 000 YTD% Qatar National Cement Co (19.5) Al Khalij Commercial Bank (28.6) Doha Bank (16.1) Qatar Gas Transport Co. Ltd (35.1) Medicare Group Market Indicators 25 Oct Oct 17 %Chg. Value Traded (QR mn) Exch. Market Cap. (QR mn) 442, , Volume (mn) Number of Transactions 2,192 1, Companies Traded Market Breadth 16:25 12:28 Market Indices Close 1D% WTD% YTD% TTM P/E Total Return 13, (0.6) (19.3) 13.1 All Share Index 2, (0.8) (20.6) 12.7 Banks 2, (0.5) (12.2) 13.3 Industrials 2, (0.6) (24.1) 17.0 Transportation 1, (1.8) (33.9) 11.7 Real Estate 1, (28.9) 10.8 Insurance 2, (1.3) (4.1) (32.8) 20.0 Telecoms 1, (1.0) (14.9) 19.8 Consumer 4, (1.5) (3.9) (18.9) 11.4 Al Rayan Islamic Index 3, (0.2) (1.7) (17.9) 14.7 GCC Top Gainers ## Exchange Close # 1D% Vol. 000 YTD% Saudi Electricity Co. Saudi Arabia , Dubai Investments Dubai , National Petrochem. Co. Saudi Arabia (16.4) Jabal Omar Dev. Co. Saudi Arabia (17.9) Yanbu Cement Co. Saudi Arabia (32.7) GCC Top Losers ## Exchange Close # 1D% Vol. 000 YTD% Mobile Telecom. Co. Saudi Arabia 6.62 (9.9) 10,764.3 (20.1) Etihad Etisalat Co. Saudi Arabia (4.9) 1,861.6 (44.5) F. A. Al Hokair & Co. Saudi Arabia (4.5) Middle East Healthcare Saudi Arabia (4.4) 2,972.0 (28.3) Makkah Const. & Dev. Saudi Arabia (3.0) 98.7 (21.1) 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% Islamic Holding Group (4.8) 11.7 (44.8) Qatari Investors Group (4.3) 54.3 (51.2) Mazaya Qatar Real Estate Dev (4.3) (39.6) Zad Holding Co (4.2) 0.4 (23.8) Al Khaleej Takaful Group (3.9) 2.8 (41.7) QSE Top Volume Trades Close* 1D% Vol. 000 YTD% Vodafone Qatar 7.11 (0.1) 2,026.1 (24.1) Qatar First Bank 6.40 (2.7) 1,422.6 (37.9) Ezdan Holding Group (37.5) Dlala Brokerage & Inv. Holding Co (1.9) (23.7) Investment Holding Group 6.80 (2.7) (32.0) Regional Indices Close 1D% WTD% MTD% YTD% QSE Top Value Trades Close* 1D% Val. 000 YTD% QNB Group (0.1) 31,543.6 (17.6) Widam Food Co (2.2) 25,831.1 (11.6) Ooredoo ,236.5 (16.0) Vodafone Qatar 7.11 (0.1) 14,282.3 (24.1) Dlala Brokerage & Inv. Holding (1.9) 10,823.7 (23.7) Source: Bloomberg (* in QR) Exch. Val. Traded ($ mn) Exchange Mkt. Cap. ($ mn) P/E** P/B** Dividend Yield Qatar* 8, (0.6) (2.3) (22.2) , Dubai 3, (0.2) , Abu Dhabi 4, (0.1) 2.3 (1.0) , Saudi Arabia 6, (1.5) (5.2) (4.2) , Kuwait 6, (0.2) (0.9) , Oman 4, (0.7) (1.3) (2.7) (13.6) , Bahrain 1, (0.0) (0.4) , 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 7

2 Qatar Market Commentary The QSE Index rose 0.2% to close at 8, Transportation and Real Estate indices led the gains. The index rose on the back of buying support from GCC and non-qatari shareholders despite selling pressure from Qatari shareholders. Qatar National Cement Co. and Al Khalij Commercial Bank were the top gainers, rising 3.1% and 2.5%, respectively. Among the top losers, Islamic Holding Group fell 4.8%, while Qatari Investors Group was down 4.3%. Volume of shares traded on Wednesday rose by 63.9% to 8.4mn from 5.1mn on Tuesday. However, as compared to the 30-day moving average of 9.2mn, volume for the day was 8.9% lower. Vodafone Qatar and Qatar First Bank were the most active stocks, contributing 24.2% and 17.0% to the total volume, respectively. Overall Activity Buy %* Sell %* Net (QR) Qatari Individuals 46.98% 58.57% (20,927,828.39) Qatari Institutions 15.79% 17.53% (3,139,266.48) Qatari 62.77% 76.10% (24,067,094.87) GCC Individuals 0.33% 0.34% (8,088.23) GCC Institutions 2.57% 2.48% 158, GCC 2.90% 2.82% 149, Non-Qatari Individuals 9.38% 11.22% (3,321,069.22) Non-Qatari Institutions 24.95% 9.87% 27,238, Non-Qatari 34.33% 21.09% 23,917, Source: Qatar Stock Exchange (* as a % of traded value) Earnings Releases, Global Economic Data and Earnings Calendar Earnings Releases Company Market Currency Revenue (mn) % Change Operating Profit % Change Net Profit % Change 3Q2017 YoY (mn) 3Q2017 YoY (mn) 3Q2017 YoY Advanced Petrochemical Company Saudi Arabia SR % % Mobile Telecommunication Company Saudi Arabia Saudi Arabia SR N/A 3.0 N/A National Industrialization Co. Saudi Arabia SR % % Saudi International Petrochemical Co. Saudi Arabia SR % N/A Arriyadh Development Co. Saudi Arabia SR % % Alliance Insurance Dubai AED % % Dubai Insurance Co. Dubai AED % % Gulf Navigation Holding Dubai AED % % % Emirates Telecommunication Group Company Abu Dhabi AED 12, % 3, % 2, % Esterad Investment Company Bahrain BHD % % Source: Company data, DFM, ADX, MSM, TASI, BHB. Global Economic Data Date Market Source Indicator Period Actual Consensus Previous 10/25 US Mortgage Bankers Association MBA Mortgage Applications 20-October -4.6% 3.6% 10/25 UK UK Office for National Statistics GDP QoQ 3Q % 0.3% 0.3% 10/25 UK UK Office for National Statistics GDP YoY 3Q % 1.5% 1.5% 10/25 UK UK Office for National Statistics Index of Services MoM August 0.2% 0.3% -0.1% 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 3Q2017 results No. of days remaining Status AKHI Al Khaleej Takaful Group 26-Oct-17 0 Due QOIS Qatar Oman Investment Company 26-Oct-17 0 Due QFBQ Qatar First Bank 26-Oct-17 0 Due QGMD Qatar German Company for Medical Devices 26-Oct-17 0 Due GISS Gulf International Services 26-Oct-17 0 Due SIIS Salam International Investment Limited 29-Oct-17 3 Due ORDS Ooredoo 29-Oct-17 3 Due MPHC Mesaieed Petrochemical Holding Company 29-Oct-17 3 Due MCCS Mannai Corporation 30-Oct-17 4 Due ERES Ezdan Holding Group 30-Oct-17 4 Due AHCS Aamal Company 30-Oct-17 4 Due ZHCD Zad Holding Company 30-Oct-17 4 Due Source: QSE Page 2 of 7

3 News Qatar QEWS reports QR500.8mn net profit in 3Q2017, beating our estimate of QR449.13mn Qatar Electricity & Water Company (QEWS) reported a net profit of QR501mn in 3Q2017 as compared to QR460.3mn in 2Q2017, beating our estimate of QR449.1mn (variation of +12%). Revenue of QR826mn fell below our estimate to QR842mn with the beat on the bottomline based on lower cost of sales and higher JV income of QR161mn vs. our forecast of QR150mn. We retain our Accumulate rating on the company. (Company Financials, QNBFS Research) UDCD reported ~QR152mn headline net profit in 3Q2017 vs. our estimate of ~QR130mn. Headline EPS came in at QR0.43 (our estimate of QR0.37) during the third quarter (27% y/y) and a substantial improvement from 2Q2017 s QR0.15, where we estimated that no land plot sales were done. We await release of the full financials to dig deeper into the numbers and determine normalized/adjusted profitability of the company excluding any extraordinary/one-time items. Having said that, we note that as per UDCD s Chairman, the pearl is now home to ~25,000 residents, up substantially from ~16,000 one year ago, when we first spoke to management. This increase in residential occupancy should drive higher profitability for UDCD, which continues to own ~1,200 residential units that are currently (or will be) on the market including 480 apartments as part of the Al Mutahida Towers scheduled for first delivery in More importantly, we view increased residential occupancy as an encouraging catalyst for the retail commercial segment (i.e. higher foot traffic driving higher retail sales). Going forward, we expect management to continue to focus on cost-cutting in this challenging market environment while at the same time advancing several development projects through the design and/or construction phases. We highlight that in 3Q2017, management signed an agreement for the sale of a land plot that will be used for the construction of a commercial mall (04 Mall). In addition, we highlight that UDCD is in the design phase of Al Morjan Project, which is expected to be a mix of residential, commercial, and entertainment units. We await announcement of details and clarity of the project economics to incorporate into our model. (QNBFS Research, QSE, Peninsula Qatar) QNNS reports QR95.5mn net profit in 3Q2017, exceeds our estimate Qatar Navigation (QNNS) reported net profit of QR95.5mn in 3Q2017 vs. QR31.1mn in 2Q2017, beating our estimate of QR40.98mn. Milaha Maritime & Logistics net profit increased significantly quarter-on-quarter, from QR 5 million in 2Q2017 to QR70mn in 3Q2017, driven by increase in volume of Container Shipping and Port Services. Milaha Gas & Petrochem s net profit declined by QR138mn, mainly due to vessel oversupply and depressed rates that have impacted most of the tanker and gas carrier sectors in which the company operates, in addition to lower profits from JV operations. Milaha Offshore s net profit declined by QAR126mn (including onetime impairments of QR57mn), on the back of continued global vessel oversupply and lower demand, which negatively impacted charter rates and utilization rates across the entire sector. Milaha Trading s net profit declined by QR5mn due to lower sales volumes of marine fuels and lubricants. Milaha Capital s net profit declined by QR115mn due to lower held-fortrading investment returns and an AFS investment impairment from the first quarter of The weakness in the shipping and offshore marine sectors continued to negatively impact our results, however, I m pleased to say that net profit improved significantly QoQ from Q2 to Q3. We believe we have good momentum going into Q4, said H.E. Sheikh Ali bin Jassim Al Thani, Chairman of Milaha s Board of Directors. (Company Press Release, QNBFS Research) VFQS reports a net loss of QR96.4mn in September 2017 quarter Vodafone Qatar (VFQS) reported a net loss of QR96.4mn in the September 2017 quarter vs. our estimate of a loss of QR85mn and as compared to QR57.14mn in 1Q and QR63.92mn in 2Q Despite the network outage that took place in July, the company s EBITDA stood at QR236mn for the six-month period ended September 30, EBITDA Margin improved in 1H2018 to reach 25%, up from 23.7% over the same period last year representing a 1.3 percentage points increase (YoY) aided by a more profitable product mix and a QR18mn reversal of provisions no longer required. Total revenue and service revenue in 1H2018 declined to QR945mn and QR899mn respectively due to events arising from the network outage and an aggressive pricing environment. The net financing position continued to improve to reach QR626mn in 2Q2018 recording the lowest level in the company s history. By the end of September 2017, the total customers number decreased to 1,389,000 customers, 68,000 customers lower compared to the same period last year due to the impact of the network outage, a slowdown of economic growth and the timing of holidays. We maintain our Market Perform rating and QR8.50 price target on the company. (QNBFS Research, company reports, QSE, Peninsula Qatar) QFLS reports ~QR270mn net profit in 3Q2017 Qatar Fuel Company (QFLS) reported net profit of ~QR270mn in 3Q2017 as compared to QR196.6mn in 2Q2017. EPS amounted to QR6.47 in 9M2017 as compared to QR7.82 in 9M2016. In 9M2017, Qatar Fuel Company s net income, excluding minority interest for the third quarter ended September 30, 2017 stood at QR643mn, down 17.2% compared to QR777mn for the corresponding period last year. The main reasons for the YoY fall in earnings were primarily attributed to the change in fuel margins and transportation tariff. Qatar Fuel Company also goes by name Woqod. Woqod s CEO, Saad Rashid Al Muhannadi said that the company is making all efforts to improve the results in future. He explained that Woqod Group has embarked on a number of cost optimization initiatives and, in spite of additional operating costs related to new stations, managed to reduce the cash operating expenses by 6% for the period ended September 2017, as compared to the same period last year. In respect of the company s projects, Al Muhannadi said that the number of petrol stations in operation under the company s ownership, or management, including mobile petrol stations, has reached to 58. This includes six petrol stations, including two mobile petrol stations, opened during the year In addition, 13 stations Page 3 of 7

4 are under construction and twelve 12 under tendering and designing stage. Woqod is planning to increase the number of petrol stations to 83 by the end of 2018 and 120 by 2022 (QSE, Peninsula Qatar) MERS net profit narrows to ~QR34mn in 3Q2017 Al Meera Consumer Goods Company (MERS) reported net profit of ~QR34mn in 3Q2017 as compared to ~QR61.8mn in 2Q2017. EPS remained flat at QR6.84 in 9M2017 as compared to 9M2016. (QSE) QISI's bottom line rises 5.4% QoQ in 3Q2017 Qatar Islamic Insurance Company s (QISI) net profit rose 5.4% QoQ to QR14.08mn in 3Q2017. However, on YoY basis net profit fell 2.1%. The company's gross income came in at QR21.13mn in 3Q2017, which represents a decrease of 8.5% QoQ (-7.2% YoY). EPS remained flat at QR3.34 in 9M2017 as compared to 9M2016. (QSE) IGRD reports ~QR9mn net profit in 3Q2017 Investment Holding Group (IGRD) reported net profit of ~QR9mn in 3Q2017 as compared to QR8.9mn in 2Q2017. EPS amounted to QR0.37 in 9M2017 as compared to QR0.39 in 9M2016. (QSE) QSE promotes sustainability & ESG disclosure among Qatari listed companies Qatar Stock Exchange (QSE) held a senior level sustainability engagement session with the listed companies with the aim to promote the business case for ESG and sustainability, outline QSE s sustainability action plan to attract responsible investors, provide an overview of global investor assessment approaches to ESG, and serve as the soft launch for the QSE Sustainability and ESG Dashboard. The sustainability engagement session was held in partnership with Sustainability Excellence, a leading provider of sustainability and ESG strategy and disclosure services in Qatar and the Middle East. The event convened an influential group and experts to support issuers in attracting investors and improving their financial performance through improved ESG disclosures based on QSE Reporting Guidelines issued in The event continued to build upon QSE s leadership efforts to promote sustainability, including the launch of the QSE Guidelines on ESG reporting in December of 2016 and the launching of the Qatar chapter of the Middle East Sustainable Investment Forum in March. (QSE) Qatar s trade balance, exports rise in September Qatar s trade surplus and exports increased in September, confirming that the blockade imposed on Qatar by siege countries has failed. The foreign trade balance in September 2017 jumped by 41.5% compared to September last year, while total exports of goods rose 20%. The foreign merchandise trade balance, which represents the difference between total exports and imports, showed a surplus of QR12.5bn in September 2017 registering an increase of about QR3.7bn compared to September According to the preliminary figures released by the Ministry of Development Planning and Statistics, the total exports of goods (including exports of goods of domestic origin and re-exports) amounted to around QR20.6bn in September this year. The trade balance decreased by nearly QR0.2bn or 1.7% compared to August (Peninsula Qatar) Qatar offers incentives to foreign investors Minister of Economy and Commerce, HE Sheikh Ahmed Bin Jassim Bin Mohammed Al Thani said Qatar has emerged as one of the best investment-friendly destinations after it introduced a series of key incentives to foreign investors. The incentives include exemption foreign capital from income tax for ten years from the date of the project s commercial operation; not imposing taxes on importing large machinery, spare parts and raw materials; and allowing the transfer of profits abroad and transfer of company ownership for free. (Peninsula Qatar) International US business spending on equipment robust, new home sales increase New orders for key US made capital goods increased more than expected in September and shipments rose for an eighth straight month, pointing to robust business spending that should help to mitigate the impact on the economy from the hurricanes. Other data showed new single-family home sales vaulting to a near ten year high last month. The signs of strong business investment on equipment in the third quarter and a pick-up in the housing market supported views the Federal Reserve will increase interest rates in December. The Commerce Department said non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, rose 1.3% last month after an upwardly revised 1.3% increase in August. (Reuters) UK s economy gains pace, puts BoE rate hike firmly on track Britain s slow economy perked up slightly during the past three months, an unexpected boost that clears the way for the Bank of England (BoE) to raise interest rates next week for the first time in a decade. While falling short of the strong growth rates enjoyed by Eurozone countries earlier this year, British economic growth picked up to 0.4% in the July-September period from 0.3% in the second quarter, official data showed. (Reuters) Regional SABB posts 8.8% YoY rise in net profit to SR1,083mn in 3Q2017 The Saudi British Bank (SABB) recorded net profit of SR1,083mn in 3Q2017, an increase of 8.8% YoY. Total operating income rose 4.6% YoY to SR1,764mn in 3Q2017, mainly due to higher net special commission income, gain on non-trading investments and dividend income, in addition to lower provision for credit losses. Total assets stood at SR179.48bn at the end of September 30, 2017 as compared to SR185.9bn at the end of September 30, Loans and advances (net) stood at SR116.69bn (-7.3% YoY), while customers deposits stood at SR134.57bn (-6.6% YoY) at the end of September 30, EPS came in at SR2.17 in 9M2017 as compared to SR2.19 in 9M2016. (Tadawul) ARNB posts 7.5% YoY rise in net profit to SR775.5mn in 3Q2017 Arab National Bank (ARNB) recorded net profit of SR775.5mn in 3Q2017, an increase of 7.5% YoY. Total operating income rose 12.2% YoY to SR1,676.7mn in 3Q2017, due to the increases in net special commission income, dividend income, gains on non-trading investments, net trading income and other operating income; which was offset by decreases in net exchange income, net banking fees and commission income, and net unrealized gains from FVIS financial instruments. Total assets stood at SR163.64bn at the end of September 30, 2017 as compared to SR167.26bn at the end of September 30, Loans and advances (net) stood at SR115.93bn (0.3% YoY), while customers deposits stood at SR128.55bn (0.2% YoY) at Page 4 of 7

5 the end of September 30, EPS came in at SR2.4 in 9M2017 as compared to SR2.3 in 9M2016. (Tadawul) PIF to be a conservative borrower in international debt markets Saudi Arabia s PIF s Managing Director, Yasir Al Rumayyan said that PIF will be a conservative borrower when it enters international debt markets to obtain leverage for its expansion. The PIF, with assets of $224bn, is being built into a key instrument of Saudi Arabia policy, investing at home to develop the economy and abroad to increase returns on the Kingdom s oil wealth. It aims to expand to $400bn by PIF is also targeting at least $2tn of assets under management by Al Rumayyan said, PIF would increasingly use leverage to boost returns, targeted at 8 to 9%. If you look at investments we have today, it s basically all equity. If we re in one project, we can use the underlying project as the base for the leverage with no recourse to the rest of the portfolio. (Reuters, GulfBase.com) Zain Saudi s board proposes capital reduction, new rights issue Mobile Telecommunications Company Saudi Arabia (Zain Saudi) proposed capital reduction to SR3.62bn from SR5.84bn to write off accumulated losses of SR2.22bn. Following capital reduction, company plans to increase capital to SR9.62bn by way of rights issue of SR6bn. (Reuters) Saudi Arabia s non-oil trade deficit narrows in August by 27.4% YoY Saudi Arabia s non-oil trade deficit narrows to SR21.1bn in August 2017 versus deficit of SR29bn in August 2016, -27.4% YoY. August s non-oil exports rose to SR17bn versus SR16.1bn in August 2016, +5.8% YoY, whereas non-oil imports reached SR38.1bn versus SR45.1bn in August 2016, -15.5% YoY. (Bloomberg) APICORP gives initial price guidance for Dollar Sukuk Arab Petroleum Investments Corporation (APICORP) has given initial price guidance for its planned five-year US Dollardenominated Sukuk in the 125 basis points over five-year midswaps area. The benchmark deal which usually mans upwards of $500mn is expected to be priced later. (GulfBase.com) Saudi Aramco and SABIC receive bids for oil-to-chemicals project Saudi Aramco and Saudi Basic Industries Corp (SABIC) received project management consultancy bids for a planned joint venture oil-to-chemicals project, according to sources. The two partners are expected to sign a memorandum of understanding to jointly develop the complex in mid- November. (GulfBase.com) PFI: Petronas and Saudi Aramco seeking $8bn for Malaysian project Malaysian state energy firm Petronas and Saudi Aramco are seeking to raise $8bn for a refinery and petrochemical complex via a bridge loan, according to Project Finance International (PFI). Refinery and Petrochemical Integrated Development (RAPID) is $27bn project located between the Malacca Strait and the South China Sea, conduits for Middle East oil and gas bound for China, Japan and South Korea. Saudi Aramco agreed in February to buy $7bn stake in RAPID s refinery and cracker project. Saudi Aramco agreed this month to take $900mn stake in petrochemical projects in the RAPID complex. (Reuters) ACWA Power International to spend $4bn on renewable energy projects in 2018 ACWA Power International plans to spend $4bn on renewable energy projects next year, with plants to be developed in Dubai, Jordan, Egypt and Morocco, ACWA Power International s Chairman, Mohammad Abunayyan said. ACWA Power International will use project financing for the plants, with 80% of the cost to come from debt and the rest equity. (Bloomberg) JODC weighs Islamic bond sale to fund building Jabal Omar Development Co. (JODC) is weighing the issuance of Islamic bonds to finance hotel and shopping mall construction projects in Mecca. JODC s CEO, Yasser Al-Sharif said, We re mulling funds and we re mulling Sukuk as well. I don t foresee a largesize Sukuk that would have a huge burden on the balance sheet. Demand is huge for infrastructure development as well as hospitality, retail and residential properties in Mecca. Jabal Omar has already signed hotel management contracts with various hotel operators, including the Address. It s been reducing leverage in favor of partnerships with real estate funds to try to reduce risks, and has established units for property management and hospitality to boost its recurring income, Sharif added. (Bloomberg) Citigroup plans to hire Saudi Arabian bankers Citigroup Inc. plans to hire about 20 bankers in Saudi Arabia and start operations by the end of 2017 after receiving an investment banking license for the Kingdom in April. Citigroup aims to have about half of its investment banking team in place by December 2017 and be fully staffed in1q2018, the Bank s Saudi Arabia country officer Carmen Haddad said. With its Saudi office, Citigroup will be able to pitch for local advisory work, including IPOs and takeovers in which the target company is based in the Kingdom. (GulfBase.com) Dubai Investments to consider Union Properties offer for Emicool s shares Dubai Investments calls board meeting on October 30, 2017 to discuss offer of Union Properties to sell its 50% shares held in Emicool. (Reuters) Abu Dhabi s real estate sector hit by weak job market Abu Dhabi continues to experience negative growth across all property types due to the weakness in the job market and reduced housing allowances, according to real estate consultancy Asteco. The average apartment rental rates dropped by 3% over the quarter and by 10% over the last 12 months, with the highest declines recorded for mid-end properties and large units within prime and high-end projects. (GulfBase.com) Etihad Airways linked bonds stay afloat despite downgrade Bonds worth $1.2bn issued by an Etihad Airways-linked special purpose vehicle only lost a few points in the secondary market after Fitch downgraded them to CC, putting the paper just two notches above default. The bonds cash price was a few points above 80 cents on the Dollar. Fund managers say they should be at least 20 points below that, but the discrepancy reflects expectations of financial backing by Etihad Airways, the borrower of reference under the special purpose vehicle. (Reuters) Kuwait s trade surplus narrowed slightly to KD1.5bn in 2Q2017 Kuwait s trade surplus narrowed slightly to KD1.5bn in 2Q2017, as softer oil prices led oil exports lower. Meanwhile, imports continued to improve after some weakness in 2016, due to solid capital goods imports data and some recovery in consumer goods. The surplus is slated to expand in the near to medium-term, not least because higher oil prices will help prop Page 5 of 7

6 up oil earnings. The Kuwait export crude price average came in higher in 3Q2017 and is expected to continue to rise, especially on the back of a further extension of OPEC-led production cuts. (GulfBase.com) Al Arfaj group plans 600,000 bpd oil refinery in India Kuwait s Al Arfaj Group plans to build a 600,000 barrels per day (bpd) oil refinery and 10mn tons a year liquefied natural gas (LNG) terminal in the Indian coastal state of Andhra Pradesh. Al Arfaj Holding Co. has signed a memorandum of understanding with Andhra Pradesh s Economic Development Board for the project, which also includes a petrochemical complex. (GulfBase.com) Bahrain s CPI increase by 0.4% The Consumer Price Index (CPI) of Bahrain increased by 0.4% in September 2017, compared with August The CPI increased by 1.8% in September 2017, compared with the same period of The CPI increased by 1.7% in 3Q2017 YoY. The CPI increased by 0.9% in 3Q2017, compared with the 2Q2017. The inflation rate in consumer prices for the period from January-September of 2017 was 1.1% compared with the same period of (GulfBase.com) Page 6 of 7

7 Rebased Performance Daily Index Performance % 0.4% 0.0% 0.3% 0.2% 0.3% 0.2% 0.1% 0.7% Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 QSE Index S&P Pan Arab S&P GCC (0.4%) (0.8%) Saudi Arabia Qatar Kuwait Bahrain (0.7%) Oman Abu Dhabi Dubai Source: Bloomberg Source: Bloomberg Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D%* WTD%* YTD%* Gold/Ounce 1, (0.2) 10.9 MSCI World Index 2, (0.4) (0.6) 15.5 Silver/Ounce (0.5) 6.5 DJ Industrial 23, (0.5) Crude Oil (Brent)/Barrel (FM Future) S&P 500 2, (0.5) (0.7) 14.2 Crude Oil (WTI)/Barrel (FM Future) (0.6) 1.4 (2.9) NASDAQ 100 6, (0.5) (1.0) 21.9 Natural Gas (Henry Hub)/MMBtu (20.3) STOXX (0.2) (0.5) 20.0 LPG Propane (Arab Gulf)/Ton DAX 12, (0.0) (0.0) 26.4 LPG Butane (Arab Gulf)/Ton (0.5) FTSE 100 7, (0.2) (0.6) 11.9 Euro CAC 40 5, Yen (0.1) 0.2 (2.8) Nikkei 21, (0.2) GBP MSCI EM 1, (0.5) 29.2 CHF (0.6) 2.9 SHANGHAI SE Composite 3, AUD 0.77 (0.9) (1.4) 6.9 HANG SENG 28, (0.7) 27.8 USD Index (0.1) 0.0 (8.3) BSE SENSEX 33, RUB (6.1) Bovespa 76, (1.5) 27.5 BRL (1.3) 0.6 RTS 1, (0.8) (1.4) (3.0) Source: Bloomberg Source: Bloomberg (*$ 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 7 of 7