GCC Top Losers ## Exchange Close # 1D% Vol. 000 YTD%

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1 QSE Intra-Day Movement 8,450 8,400 8,350 8,300 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00 Qatar Commentary The QSE Index declined 0.4% to close at 8, Losses were led by the Real Estate and Consumer Goods & Services indices, falling 1.1% and 0.9%, respectively. Top losers were Gulf Warehousing Co. and Qatar Oman Investment Co., falling 5.1% and 3.5%, respectively. Among the top gainers, Qatar General Insurance & Reinsurance Co. rose 10.0%, while Dlala Brokerage & Investments Holding Co. was up 4.2%. Market Indicators 17 Sep Sep 17 %Chg. Value Traded (QR mn) (73.4) Exch. Market Cap. (QR mn) 456, ,862.5 (0.5) Volume (mn) (54.1) Number of Transactions 1,832 4,355 (57.9) Companies Traded Market Breadth 12:28 22:18 Market Indices Close 1D% WTD% YTD% TTM P/E Total Return 14, (0.4) (0.4) (16.8) 14.5 All Share Index 2, (0.5) (0.5) (16.8) 13.0 Banks 2, (0.5) (0.5) (10.1) 11.5 Industrials 2, (0.7) (0.7) (23.7) 16.8 Transportation 1, (0.5) (0.5) (31.0) 11.8 Real Estate 1, (1.1) (1.1) (20.6) 12.1 Insurance 3, (14.0) 17.3 Telecoms 1, (0.2) (0.2) (16.5) 19.4 Consumer 5, (0.9) (0.9) (15.0) 11.9 Al Rayan Islamic Index 3, (0.9) (0.9) (13.5) 16.2 GCC Commentary Saudi Arabia: The TASI Index rose 0.4% to close at 7, Gains were led by the Utilities and Transportation indices, rising 1.4% and 1.3%, respectively. Aljazira Takaful Taawuni Co. rose 9.9%, while SABB Takaful Co. was up 7.6%. Dubai: The DFM Index declined 0.7% to close at 3, The Financial & Investment Services and Real Estate & Construction indices declined 1.0% each. SHUAA Capital fell 3.4%, while Aan Digital Services Holding Co. was down 2.8%. Abu Dhabi: The ADX benchmark index fell 0.8% to close at 4, The Energy index declined 4.9%, while the Real Estate index fell 2.3%. Dana Gas Co. and Eshraq Properties Co. were down 6.0% each. Kuwait: The KSE Index declined marginally to close at 6, The Consumer Services index fell 4.3%, while the Technology index declined 1.9%. Eyas for Higher & Tech. Education fell 18.6%, while Amar Finance & Leasing Co. was down 7.9%. Oman: The MSM Index fell 0.1% to close at 4, The Financial index declined 0.3%, while the other indices ended in green. Oman and Emirates Inv. Holding fell 5.3%, while Bank Dhofar was down 2.4%. Bahrain: The BHB Index fell 0.3% to close at 1, The Investment index declined 0.6%, while the Commercial Banks index fell 0.3%. GFH Financial Group declined 2.1%, while Ahli United Bank was down 0.7%. GCC Top Losers ## Exchange Close # 1D% Vol. 000 YTD% QSE Top Gainers Close* 1D% Vol. 000 YTD% Qatar General Ins. & Reins. Co (12.3) Dlala Brokerage & Inv. Holding Co (20.9) Qatar German Co for Medical Dev (22.9) Qatar International Islamic Bank (17.8) Salam International Inv. Ltd (27.2) QSE Top Volume Trades Close* 1D% Vol. 000 YTD% Vodafone Qatar 8.17 (0.6) 3,911.6 (12.8) Ezdan Holding Group (1.6) 1,146.7 (28.7) Doha Bank (2.6) (11.0) Aamal Co (36.3) Qatar First Bank 6.61 (0.6) (35.8) Regional Indices Close 1D% WTD% MTD% YTD% QSE Top Losers Close* 1D% Vol. 000 YTD% Gulf Warehousing Co (5.1) 25.5 (18.8) Qatar Oman Investment Co (3.5) 68.6 (19.5) Qatar Industrial Manufacturing (3.3) 13.0 (8.7) Qatar National Cement Co (3.0) 19.9 (18.8) Ahli Bank (2.8) 1.5 (21.3) QSE Top Value Trades Close* 1D% Val. 000 YTD% Vodafone Qatar 8.17 (0.6) 32,016.3 (12.8) Doha Bank (2.6) 15,239.7 (11.0) QNB Group (0.0) 12,810.1 (16.5) Ezdan Holding Group (1.6) 12,461.7 (28.7) Qatar Navigation ,787.9 (43.2) (* in QR) Exch. Val. Traded ($ mn) Exchange Mkt. Cap. ($ mn) P/E** P/B** Dividend Yield Qatar* 8, (0.4) (0.4) (4.8) (19.8) , Dubai 3, (0.7) (0.7) (0.2) , Abu Dhabi 4, (0.8) (0.8) (0.5) (2.2) , Saudi Arabia 7, , Kuwait 6, (0.0) (0.0) , Oman 4, (0.1) (0.1) (1.1) (13.6) , Bahrain 1, (0.3) (0.3) (0.2) , , Qatar Stock Exchange, Tadawul, Muscat Securities Exchange, Dubai Financial Market and Zawya (** TTM; * Value traded ($ mn) do not include special trades, if any) Page 1 of 5

2 Qatar Market Commentary The QSE Index declined 0.4% to close at 8, The Real Estate and Consumer Goods & Services indices led the losses. The index fell on the back of selling pressure from non-qatari shareholders despite buying support from Qatari and GCC shareholders. Gulf Warehousing Co. and Qatar Oman Investment Co. were the top losers, falling 5.1% and 3.5%, respectively. Among the top gainers, Qatar General Insurance & Reinsurance Co. rose 10.0%, while Dlala Brokerage & Investments Holding Co. was up 4.2%. Volume of shares traded on Sunday fell by 54.1% to 7.9mn from 17.1mn on Thursday. However, as compared to the 30-day moving average of 7.5mn, volume for the day was 5.1% higher. Vodafone Qatar and Ezdan Holding Group were the most active stocks, contributing 49.7% and 14.6% to the total volume, respectively. Overall Activity Buy %* Sell %* Net (QR) Qatari Individuals 39.58% 39.39% 246, Qatari Institutions 37.56% 31.16% 8,360, Qatari 77.14% 70.55% 8,607, GCC Individuals 0.80% 0.31% 631, GCC Institutions 1.72% 1.35% 491, GCC 2.52% 1.66% 1,123, Non-Qatari Individuals 6.67% 4.54% 2,780, Non-Qatari Institutions 13.66% 23.25% (12,510,784.36) Non-Qatari 20.33% 27.79% (9,730,743.51) Source: Qatar Stock Exchange (* as a % of traded value) Ratings Company Agency Market Type* Old Rating New Rating Rating Change Outlook Outlook Change Doha Insurance Group A.M. Best Qatar FSR/LT-IDR A-/a- A-/a- Stable Source: News reports (* LT Long Term, ST Short Term, FSR- Financial Strength Rating, FCR Foreign Currency Rating, LCR Local Currency Rating, IDR Issuer Default Rating, SR Support Rating, LC Local Currency) News Qatar Qatar s oil production picks up, fiscal deficit narrows Qatar s oil production picked up to 611,000 bpd (barrels per day) in June from 594,000 bpd in May. Average Brent crude oil prices declined by 0.5% MoM in August, reaching $52.4 for a barrel, as news of increasing US production outweighed news of falling US crude stockpiles, QNB Group noted in its latest Qatar Monthly Monitor. Qatar s broad money supply (M2) grew by 8.3% YoY in July compared to 7.8% in June. Broad money grew by 0.2% MoM in July compared to 2.2% in June. Overnight interbank rates rose to 1.77% in June from 1.29% in May. The 3- month interbank rate fell to 2.10% from 2.25%, while the 1-year interbank rate stayed flat at 2.50%. The Qatar Central Bank (QCB) raised its deposit rate by 25 basis points to 1.5% after the US Fed hiked rates in March, but kept the lending and repo rates unchanged. The QCB data reading showed that the country s fiscal deficit has narrowed to 5.1% of GDP in 1Q2017 from 17.9% in 4Q2016. Revenue rose by 31.0% YoY in 1Q2017, helped by higher oil prices, while expenditure rose by 15.8% YoY. The 2017 budget announced by the government projects a reduction in the fiscal deficit to QR28.4bn in 2017 from a deficit of QR46.5bn in The current account balance registered a surplus in 1Q2017 of 0.3% of GDP compared to 1.7% deficit in the previous quarter. The surplus was owing to oil prices, which rose higher on QoQ basis, leading to increased export revenue. The trade surplus narrowed to $3.3bn in July from $3.4bn in June. Exports grew 11.4% YoY to $5.0bn, helped by the recovery in oil and gas prices, while imports fell 35.0% YoY in July. Furthermore, Qatar s bank assets grew 10.9% YoY in July to QR1.3tn, compared to growth of 11.6% in June. Domestic assets grew 10.3% YoY in July from 12.4% in the previous month. Foreign assets grew 9.5% YoY in July, from 11.0% in the previous month. Qatar s bank deposits growth rose by 12.8% YoY in July compared to 12.7% in June. Public sector deposit growth accelerated to 37.1% compared to 21.4% in June. Nonresident deposits slowed to 13.8% YoY from 26.6% growth in the previous month. Private sector deposits declined by 1.1% YoY compared to 2.4% in June. Bank credit grew 11.5% YoY in July, down from 11.9% in June. Loans to the public sector (around 40% of total domestic credit) grew 19.0% YoY versus 19.6% growth in the previous month. Private sector loans grew by 5.9% YoY from 6.4%, while foreign credit grew by 10.5% from 11.1%. (Peninsula Qatar) Ooredoo announces closure of delisting of Ooredoo GDR from the London Stock Exchange Ooredoo announced that the delisting process of Ooredoo GDR (Global Depositary Receipt) from the London Stock Exchange has closed effective from August 31, The primary reason for the delisting was that international investors are now easily able to purchase Ooredoo securities on the Qatar Stock Exchange. Ooredoo GDR was admitted to trading on the London Stock Exchange on July (QSE) A.M. Best affirms A- financial strength rating of Doha Insurance Group A.M. Best, an international insurance rating agency, has affirmed Doha Insurance Group s financial strength rating of A- (Excellent) and the long-term issuer credit rating of a- with Stable outlook. The ratings reflect the risk cover provider s very strong risk-adjusted capitalization, good business profile in Qatar s insurance market and track record of solid operating performance. An offsetting rating factor is the company s weak, albeit improving risk management function, A.M. Best said. The insurance group s risk-adjusted capitalization remains very strong, benefiting from low underwriting leverage, and a well-rated reinsurance panel to Page 2 of 5

3 mitigate counterparty credit risk. Capital consumption continues to be driven by investment risk, due to the company s material exposure to domestic equities. (Gulf-Times.com) Qatari products gain momentum in the local market The products up for display at the third edition of buy local products showed the prowess of Qatar s made in Qatar products in the country s construction sector. A range of locally made products on display confirms that a powerful local product movement is growing fast in Qatari market, due to Qatar Development Bank s (QDB) unflinching support to local startups and SMEs-local companies have become capable of meeting the demands at least in the electricity, water and recycling sectors. For companies like Arabian Specialized Materials (ASMA), the ongoing blockade on Qatar has been proved a blessing. The company, a leading construction solution provider, has been depending on the UAE and Saudi Arabia for raw materials for years. ASMA s Division Manager, Emad El Kurdi said, We could not bring in our last consignment because of the blockade. There were huge orders in our books and we finally realized that we can source the raw materials locally. Now, for the past 100 days, we have been solely depending our local sources for the raw materials. (Peninsula Qatar) Kahramaa offers QR19bn investment opportunities Qatar General Electricity & Water Corporation s (Kahramaa) President, Essa Bin Hilal Al Kuwari said that Kahramaa offers investment opportunities, most of which target the domestic market, at about QR19bn by Al Kuwari said, during a press statement on the sidelines of the opening of the third edition of the Forum Buy Local Products, that Kahramaa s needs until 2022 are estimated at QR7bn, which is a direct purchase, a priority for the local market, while direct contracting contracts during the same period would be about QR12bn, considering these figures represent a good opportunity for national companies to enter the sector. (Peninsula Qatar) Over 100 UAE firms shift operations to Qatar Defying the ongoing siege imposed on Qatar, foreign investors and companies are showing increasing interest in the country to tap the thriving business opportunities in the booming Qatari economy. Within the first hundred days of the ongoing blockade, over 250 companies have already started their operations with a significant number of them shifting from the UAE, one of the blockading countries, said a top official of Qatar Chamber. Qatar Chamber s Director-General, Saleh Hamad Al Sharqi said, Over the last three months, more than 250 companies have already begun their operations in a wide range of sectors, including manufacturing industries, food and food processing, drugs, healthcare services, legal services, education, IT and IT-enabled services. And more than 100 of these newly-registered firms are from the UAE, that are shifting their operations from Dubai s Jabel Ali Free Zone to Qatar. (Peninsula Qatar) Hamad Port begins two new shipping lines Hamad Port s Director, Abdul Aziz Nasser Al Yafei announced the inauguration of two new shipping routes linking the Hamad Port to the Southeast Asia ports, while the other connects the port to the ports of the countries of the Mediterranean basin, and each will take one trip a week during 21 days. (Peninsula Qatar) Minister stresses commitment to developing the ICT sector HE the Minister of Transport and Communications Jassim Seif Ahmed Al Sulaiti has stressed that the Ministry will continue to develop and strengthen the basic elements involved in the advancement of the Information and Communications Technology (ICT) sector by investing heavily in securing an efficient infrastructure and setting up an integrated system of policies, legislation and mechanisms. This will be done to create the right investment climate and continue implementing the projects and programs of Qatar Digital Government 2020 and with regard to electronic security. (Gulf-Times.com) International UK s households squeezed again, BoE might make it worse UK s households are feeling the tightest squeeze on their finances in three years and the Bank of England s (BoE) signal that it is getting close to raising interest rates, is likely to make things worse. IHS Markit said that its monthly Household Finance Index fell to 42.8 in September from 43.4 in August, though above three-year low of 41.6 seen in July. Looking at the third quarter as a whole, the index s average reading is its lowest since (Reuters) China s home prices rise 0.2% in August from July Average new home prices in China s 70 major cities rose 0.2% in August from a month ago, slowing from 0.4% gain in July, as policymakers battle to rein in an overheated market. New home prices rose 8.3% in August versus a year ago, slowing from 9.7% increase in July, Reuters calculated from National Bureau of Statistics (NBS) data. China s almost two year-long property boom hit fever pitch last August when prices jumped 1.5% in a month. (Reuters) Regional S&P: Profitability of Gulf Islamic banks to deteriorate in 2017 The profitability of Gulf Islamic banks will deteriorate this year and in 2018 with several factors coming into play, according to the S&P Global Ratings (S&P). We expect the slowdown at Islamic banks in the GCC will persist in 2017 after asset growth declined to 5.3% in 2016 from 10.7% in We see banks becoming more cautious and selective in their lending activities, triggering stiffer competition. Very few Islamic banks have set aside significant amounts of profit-equalization reserves, which they build in good years and use to smooth returns to PSIA (profit-sharing investment accounts) holders if needed, S&P said. The increased cost of funding squeezed banks intermediation margins in 2016 and would remain high this year and in (GulfBase.com) OPEC said to discuss extending cuts by more than 3 months The Organization of Petroleum Exporting Countries (OPEC) and its allies are discussing extending by more than three months the oil production cuts that expire in March 2018, potentially prolonging them well into 2H2018, in an effort to boost prices. (Gulf-Times.com) Saudi Arabia to launch tenders for 2.8GW nuclear plants Saudi Arabia is likely to begin the process to find a vendor to build the country s first nuclear reactors as early as next month. The Kingdom seeks to build two plants that could generate up to 2.8 gigawatts (GW) of energy. (GulfBase.com) Page 3 of 5

4 Saudi Electricity Company s 3.1bn shares moved to PIF Saudi Electricity Company s 3.1bn shares, representing 74.3% of the utility s capital, have been moved to the Public Investment Fund (PIF). (Bloomberg) CBUAE s Governor: UAE s non-oil growth to accelerate in 2018 The non-oil sector of UAE s economy is expected to grow 3.1% this year, accelerating to 3.5% next year, Central Bank of the UAE s (CBUAE) Governor, Mubarak Rashed Al Mansouri said. (Reuters) UAE s higher education prospects bright as revenues reach $1bn The prospects for the higher education sector in the UAE is bright, according to experts speaking at the forthcoming IPSEF Higher Education Forum. UAE-based universities have grown consistently in enrolments and revenues at robust compound annual growth rate of 8-10%. The overall student base across local and international university campuses in the UAE is estimated to be 162,000, with Dubai hosting around 60,000 students, of which 20% are graduate students and 80% are in undergraduate level programs. The current overall revenue base for the higher education market in the UAE is estimated to be over $1bn, and with the sector expected to witness the entry of new players, the market will only increase in value in the next few years. (GulfBase.com) Emaar Properties gets $1.5bn loan from First Abu Dhabi Bank According to sources, Dubai-based Emaar Properties obtained a $1.5bn corporate finance loan from First Abu Dhabi Bank. Emaar Properties, which develops residential properties, hotels, entertainment and shopping malls, agreed on the financing after initially holding talks with some of its relationship banks for three bilateral loans of $500mn each. In the end, it chose to obtain a single loan of $1.5bn with First Abu Dhabi Bank underwriting the whole amount. Meanwhile, Emaar Properties called board meeting on September 20 to approve conversion of Emaar Development into joint stock company to be listed on Dubai Financial Market, to offer up to 30% shares. (Reuters) Creditor support grows for GGICO $572mn debt deal Dubaibased Gulf General Investment Company (GGICO) has agreement from nearly half of its creditors on $572mn debt restructuring, according to sources. The deal is set to achieve the target of 75% creditor support by the end of the month, the sources said, adding that the terms push back the bulk of the company s debt repayment to (Reuters) Dubai s property prices seen falling further as vacancies climb Dubai residential property prices and rents are set to fall further as losses of high-paying jobs and dwindling household incomes boost vacancies across the city, according to Phidar Advisory. Phidar Advisory s Managing Director, Jesse Downs said, The false start of early 2017 is over and the cracks are starting to show. Sales volumes of completed properties are at six-year low and vacancies are rising across the city. (Gulf-Times.com) Eshraq Properties to acquire Reem Investment by year-end The deal for Abu Dhabi-based Eshraq Properties to acquire Reem Investment is expected to be finalized in the next three months and will more-than-double Eshraq s market capitalization when complete. (GulfBase.com) ALAFCO closes $300mn Murabah facility Kuwait's Aviation Lease and Finance Company (ALAFCO) said it has successfully closed an agreement for a three-year syndicated Murabaha facility for $300mn. The transaction has been advised by KFH Capital Investment Company with participation from Kuwaitbased Warba Bank, Boubyan Bank, Kuwait International Bank and Bahrain-based ABC Islamic Bank. (GulfBase.com) Central Bank of Oman s new Executive President says Oman committed to foreign currency peg The new Executive President of Central Bank of Oman said that his country remained committed to Omani Rial s currency peg against the US Dollar. Tahir Salim Al Amri, a former Director-General of treasury and accounts at the Ministry of Finance said that the Omani Rial was not under pressure in the foreign exchange market, despite low oil prices that have strained Oman s state finances and current account balance. (Reuters) Page 4 of 5

5 Rebased Performance Daily Index Performance % 0.4% Aug-13 Aug-14 Aug-15 Aug-16 Aug-17 QSE Index S&P Pan Arab S&P GCC 0.0% (0.5%) (1.0%) Saudi Arabia (0.4%) Qatar (0.0%) Kuwait (0.3%) Bahrain (0.1%) Oman (0.8%) Abu Dhabi (0.7%) Dubai Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D%* WTD%* YTD%* Gold/Ounce 1, (0.7) (2.0) 14.6 MSCI World Index 1, Silver/Ounce (1.2) (2.1) 10.5 DJ Industrial 22, Crude Oil (Brent)/Barrel (FM Future) (2.1) S&P 500 2, Crude Oil (WTI)/Barrel (FM Future) (7.1) NASDAQ 100 6, Natural Gas (Henry Hub)/MMBtu 2.99 (1.7) 5.7 (18.9) STOXX LPG Propane (Arab Gulf)/Ton (0.1) DAX 12, LPG Butane (Arab Gulf)/Ton (16.1) FTSE 100 7, Euro (0.8) 13.6 CAC 40 5, Yen (5.2) Nikkei 19, GBP MSCI EM 1, CHF (1.6) 6.2 SHANGHAI SE Composite 3, (0.4) (1.2) 14.6 AUD 0.80 (0.0) (0.7) 11.0 HANG SENG 27, USD Index (0.3) 0.6 (10.1) BSE SENSEX 32, RUB (6.5) Bovespa 75, BRL (0.8) 4.6 RTS 1, (0.2) 0.3 (2.5) (*$ adjusted returns) Contacts Saugata Sarkar, CFA Shahan Keushgerian Zaid al-nafoosi, CMT, CFTe Head of Research Senior Research Analyst Senior Research Analyst Tel: (+974) Tel: (+974) Tel: (+974) Mohamed Abo Daff QNB Financial Services Co. W.L.L. Senior Research Analyst Contact Center: (+974) Tel: (+974) PO Box Doha, Qatar Disclaimer and Copyright Notice: This publication has been prepared by QNB Financial Services Co. W.L.L. ( QNBFS ) a wholly-owned subsidiary of Qatar National Bank (Q.P.S.C.). QNBFS is regulated by the Qatar Financial Markets Authority and the Qatar Exchange. Qatar National Bank (Q.P.S.C.) is regulated by the Qatar Central Bank. This publication expresses the views and opinions of QNBFS at a given time only. It is not an offer, promotion or recommendation to buy or sell securities or other investments, nor is it intended to constitute legal, tax, accounting, or financial advice. QNBFS accepts no liability whatsoever for any direct or indirect losses arising from use of this report. Any investment decision should depend on the individual circumstances of the investor and be based on specifically engaged investment advice. We therefore strongly advise potential investors to seek independent professional advice before making any investment decision. Although the information in this report has been obtained from sources that QNBFS believes to be reliable, we have not independently verified such information and it may not be accurate or complete. QNBFS does not make any representations or warranties as to the accuracy and completeness of the information it may contain, and declines any liability in that respect. For reports dealing with Technical Analysis, expressed opinions and/or recommendations may be different or contrary to the opinions/recommendations of QNBFS Fundamental Research as a result of depending solely on the historical technical data (price and volume). QNBFS reserves the right to amend the views and opinions expressed in this publication at any time. It may also express viewpoints or make investment decisions that differ significantly from, or even contradict, the views and opinions included in this report. This report may not be reproduced in whole or in part without permission from QNBFS. COPYRIGHT: No part of this document may be reproduced without the explicit written permission of QNBFS. Page 5 of 5