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1 QSE Intra-Day Movement 7,900 7,850 7,800 7,750 7,700 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00 Qatar Commentary The QSE Index declined 0.3% to close at 7, Losses were led by the Real Estate and Industrials indices, falling 4.5% and 1.0%, respectively. Top losers were Ahli Bank and Ezdan Holding Group, falling 9.7% and 7.8%, respectively. Among the top gainers, Qatar Islamic Insurance Company gained 10.0%, while Widam Food Company was up 4.6%. GCC Commentary Saudi Arabia: The TASI Index rose 0.8% to close at 7, Gains were led by the Real Estate Mgmt & Dev t and Energy indices, rising 2.7% and 2.1%, respectively. Saudi Kayan Petrochemical rose 9.9%, while Saudi Arabian Amiantit was up 9.5%. Dubai: The DFM Index declined marginally to close at 3, The Financial & Investment Services index fell 1.5%, while the Services index declined 0.9%. Emaar Development fell 3.8%, while DAMAC Properties Dubai Co. was down 2.4%. Abu Dhabi: The ADX benchmark index fell 0.8% to close at 4, The Consumer Staples index declined 1.8%, while the Banks index fell 1.3%. Al Khaleej Inv. Co. declined 6.7%, while Abu Dhabi National Co. for Building Materials was down 4.4%. Kuwait: The KSE Index declined 0.2% to close at 6, The Financial Services index fell 0.9%, while the Technology index declined 0.8%. Inovest fell 11.9%, while Hayat Communications Co. was down 10.3%. Oman: The MSM Index fell 0.5% to close at 5, Losses were led by the Services and Industrial indices, falling 0.4% and 0.3%, respectively. Oman National Engine. Invt. fell 5.0%, while Oman Telecommunication was down 2.4%. Bahrain: The BHB Index gained 0.2% to close at 1, The Commercial Bank index rose 0.9%, while the other indices ended flat or in red. National Bank of Bahrain rose 2.5%, while Ahli United Bank was up 0.8%. QSE Top Gainers Close* 1D% Vol. 000 YTD% Qatar Islamic Insurance Co Widam Food Co (16.2) Qatar Industrial Manufacturing Co (9.0) Qatar International Islamic Bank (21.2) Qatar Insurance Co (41.1) Market Indicators 07 Dec Dec 17 %Chg. Value Traded (QR mn) (0.8) Exch. Market Cap. (QR mn) 425, ,318.3 (0.6) Volume (mn) Number of Transactions 3,416 4,253 (19.7) Companies Traded Market Breadth 23:18 5:35 Market Indices Close 1D% WTD% YTD% TTM P/E Total Return 13, (0.3) 0.8 (22.8) 12.4 All Share Index 2, (0.7) 2.6 (23.6) 12.2 Banks 2, (0.0) 1.1 (14.8) 12.8 Industrials 2, (1.0) 0.6 (28.5) 15.7 Transportation 1, (0.2) (0.7) (38.4) 11.8 Real Estate 1, (4.5) 9.0 (31.3) 10.7 Insurance 3, (31.2) 20.6 Telecoms (18.5) 18.2 Consumer 4, (24.4) 10.7 Al Rayan Islamic Index 3, (0.2) (0.0) (21.9) 13.6 GCC Top Gainers ## Exchange Close # 1D% Vol. 000 YTD% Saudi Kayan Petrochem. Saudi Arabia , Dar Al Arkan Real Estate Saudi Arabia , Rabigh Refining & Petro. Saudi Arabia , Makkah Const. & Dev. Saudi Arabia ,717.9 (1.4) Burgan Bank Kuwait GCC Top Losers ## Exchange Close # 1D% Vol. 000 YTD% Union National Bank Abu Dhabi 3.84 (3.3) 55.4 (15.4) Yanbu National Petro. Co. Saudi Arabia (2.5) Oman Telecom. Co. Oman 1.21 (2.4) 13.6 (20.1) DAMAC Properties Dubai 3.32 (2.4) Emaar Economic City Saudi Arabia (2.2) 4,727.0 (18.2) 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% Ahli Bank (9.7) 0.1 (19.2) Ezdan Holding Group 9.21 (7.8) (39.0) Qatar Oman Investment Co (5.1) 2.9 (29.6) Aamal Co (3.2) 82.2 (49.1) National Leasing 9.41 (3.2) (38.6) QSE Top Volume Trades Close* 1D% Vol. 000 YTD% Mesaieed Petrochemical Holding ,602.6 (25.4) Qatar First Bank ,411.2 (48.7) Ezdan Holding Group 9.21 (7.8) (39.0) Vodafone Qatar (27.4) Commercial Bank (1.3) (15.2) Regional Indices Close 1D% WTD% MTD% YTD% QSE Top Value Trades Close* 1D% Val. 000 YTD% QNB Group ,970.5 (19.9) Mesaieed Petrochemical Holding ,925.1 (25.4) Qatar Navigation ,202.7 (45.0) Qatar Electricity & Water Co ,990.3 (26.2) Commercial Bank (1.3) 13,661.3 (15.2) Source: Bloomberg (* in QR) Exch. Val. Traded ($ mn) Exchange Mkt. Cap. ($ mn) P/E** P/B** Dividend Yield Qatar* 7, (0.3) (25.5) , Dubai 3, (0.0) (0.8) (0.8) (3.9) , Abu Dhabi 4, (0.8) (0.1) (0.1) (5.9) , Saudi Arabia 7, (1.7) 1, , Kuwait 6, (0.2) (0.2) (0.2) , Oman 5, (0.5) (0.9) (0.9) (12.4) , Bahrain 1, (1.3) (1.3) , 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 6

2 Qatar Market Commentary The QSE Index declined 0.3% to close at 7, The Real Estate and Industrials indices led the losses. The index fell on the back of selling pressure from Qatari shareholders despite buying support GCC and non- Qatari shareholders. Ahli Bank and Ezdan Holding Group were the top losers, falling 9.7% and 7.8%, respectively. Among the top gainers, Qatar Islamic Insurance Company gained 10.0%, while Widam Food Company was up 4.6%. Volume of shares traded on Thursday rose by 9.1% to 9.0mn from 8.3mn on Wednesday. Further, as compared to the 30-day moving average of 8.2mn, volume for the day was 9.4% higher. Mesaieed Petrochemical Holding Company and Qatar First Bank were the most active stocks, contributing 17.8% and 15.7% to the total volume, respectively. Overall Activity Buy %* Sell %* Net (QR) Qatari Individuals 38.19% 35.37% 5,064, Qatari Institutions 21.38% 29.18% (14,055,223.51) Qatari 59.57% 64.55% (8,990,713.79) GCC Individuals 0.17% 0.48% (559,330.03) GCC Institutions 3.88% 2.40% 2,657, GCC 4.05% 2.88% 2,098, Non-Qatari Individuals 11.26% 10.22% 1,879, Non-Qatari Institutions 25.13% 22.34% 5,013, Non-Qatari 36.39% 32.56% 6,892, Source: Qatar Stock Exchange (* as a % of traded value) Ratings and Global Economic Data Ratings Updates Company Agency Market Type* Old Rating New Rating Rating Change Outlook Outlook Change Al Rajhi Bank Capital Intelligence Saudi Arabia LT-FCR/ST-FCR/ FSR/SR A+/A2/A+/2 A+/A1/A+/2 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, FCR Foreign Currency Rating) Global Economic Data Date Market Source Indicator Period Actual Consensus Previous 12/07 US Department of Labor Initial Jobless Claims 2-December 236k 240k 238k 12/07 US Department of Labor Continuing Claims 25-November 1,908k 1,919k 1,960k 12/08 US Bureau of Labor Statistics Unemployment Rate November 4.1% 4.1% 4.1% 12/08 UK UK Office for National Statistics Industrial Production MoM October 0.0% 0.0% 0.7% 12/08 UK UK Office for National Statistics Industrial Production YoY October 3.6% 3.5% 2.5% 12/08 UK UK Office for National Statistics Manufacturing Production MoM October 0.1% 0.0% 0.7% 12/08 UK UK Office for National Statistics Manufacturing Production YoY October 3.9% 3.8% 2.7% 12/08 France INSEE Industrial Production MoM October 1.9% -0.1% 0.8% 12/08 France INSEE Industrial Production YoY October 5.5% 2.9% 3.2% 12/08 France INSEE Manufacturing Production MoM October 2.7% 0.6% 12/08 France INSEE Manufacturing Production YoY October 6.9% 3.2% 12/08 China National Bureau of Statistics Exports YoY November 12.3% 5.3% 6.8% 12/08 China National Bureau of Statistics Imports YoY November 17.7% 13.0% 17.2% 12/09 China National Bureau of Statistics CPI YoY November 1.7% 1.8% 1.9% 12/09 China National Bureau of Statistics PPI YoY November 5.8% 5.8% 6.9% Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted) News Qatar QNB Group expects oil price to average around $60 per barrel in 2018 QNB Group forecasted an average oil price around $60 per barrel in In its weekly analysis, QNB Group stated that the Organization for Petroleum Exporting Countries (OPEC) and its major non-opec partners, including Russia, announced on November 30 an extension of the production freeze agreed last year, aiming to keep 1.8mn barrels per day off the market until December The group s compliance in 2017 with the agreement has been exceptional, averaging over 80%, which has helped oil prices average $54 per barrel through eleven months of the year, which has supported QNB Group long-time view that the group was likely to extend the cuts in With global demand and US production evolving in line with expectations, QNB Group expects an average oil price of around $60 per barrel in (Peninsula Qatar) Qatar s success driven by its economic self-sufficiency, entrepreneurial drive The self-sufficiency of Qatar s economy and the entrepreneurial drive that underpins SMEs in the country is pivotal to its success, according to CFA Institute s President and CEO, Paul Smith. Qatar s emerging market status marked a milestone and has attracted billions of Dollars from around the world, which has helped boost its economy, Smith said. Qatar has ambitious strategic objectives for its financial sector, within the context of the Qatar National Vision 2030, and has made great strides in building an efficient and Page 2 of 6

3 transparent industry. As one of the most important financial markets in the Arab region, Qatar is working hard to maintain the stability of its financial markets under the economic and financial crises facing various sectors, especially the oil sector, said Smith who was here to attend the 2017 Doha Investment Forum hosted by the CFA Society Doha. (Gulf-Times.com) Qatar Central Bank sold QR1.15bn Treasury bills, yields rise Qatar Central Bank stated it had sold QR1.15bn of Treasury bills in a monthly auction, with yields rising from last month s sale. The bank sold QR550mn of three-month bills at a yield of 2.30%, QR450mn of six-month at 2.49%, and QR150mn of ninemonth at 2.62%. In early November, it sold QR1.4bn of Treasury bills: QR550mn of three-month at 2.26%, QR750mn of six-month at 2.45% and QR100mn of nine-month at 2.52%. (QCB, Zawya) Qatar and the US share interest in long term LNG sustainability The US stated that solutions in Qatar s energy sector make business sense as both the US and Qatar have a shared interest in developing liquefied natural gas (LNG) long-term sustainability. We have a shared interest in developing LNG s long-term sustainability and we hope Qatar will intensify partnerships with the US companies in the country s oil and gas expansion plans, said the US Secretary of Energy Rick Perry, concluding his two-day visit to Qatar. During his visit, he underscored America s ongoing commitment to its strategic partnership with Qatar, and highlighted the importance of bilateral cooperation in maintaining stability and economic security in the region. (Gulf-Times.com) Qatar, UK to support small businesses in both countries to boost exports Qatar and the UK decided to support small businesses in both the countries and improve access to trade financing to help exporters as part of efforts to strengthen the bilateral economic relations. This was the outcome of the inaugural meeting of the Joint Economic and Trade Commission (Jetco) between Qatar and the UK. The UK s International Trade Minister Greg Hands held talks with Qatar s Minister of Economy and Commerce HE Sheikh Ahmed Bin Jassim Bin Mohamed Al Thani at the inaugural meeting of Jetco. (Gulf- Times.com) Doha Bank s CEO underscores role of digital currency in Qatar s financial industry With financial transactions being driven by digital ecosystems and the evolution of both cyberspace and the banking industry, digital currency will be the solution as a payment gateway, according to Doha Bank s CEO, R Seetharaman. R Seetharaman said, The payment settlements cannot be conventional. It has to go through digital currency, and I am not talking about Bitcoin or cryptocurrency. Cryptocurrencies can play a role but they have to be regulated. As of today, it is uncharted; no central bank has formally endorsed it. Citing the growth of the Internet of Things (IoT) and the changing dynamics of digital ecosystems, Seetharaman said, IoT is going to transform multifold. From around 6bn to 7bn gadgets today, these will grow to 25bn in the next five years, and 100bn in the next eight years. (Gulf-Times.com) QFBA announces launch of 2018 specialized programs in financial, trade sciences The Qatar Finance and Business Academy (QFBA) announced the launch of its range of open training programs for 2018 to empower the largest number of new employees and professionals in Qatar who would benefit from academic and professional development, according to the highest international standards. The programs offer the latest internationally-recognized certifications in legal financial accounting, internal auditing, managerial accounting, financial markets and asset management, compliance and anti-money laundering, as well as other distinguished programs, QFBA stated. (Gulf-Times.com) QTA opens its first office in China Qatar Tourism Authority (QTA) opened its first representative office in Beijing, China, followed by two other branch offices in Shanghai and Guangzhou. As part of its efforts to promote Qatar s tourism offerings, QTA is organizing a training course this week for destination management companies to ensure access to and benefit from the potential of the Chinese tourism market in cooperation with the Marhaba Chinese program. (Gulf- Times.com) Qatar Airways to buy 50 Airbus 321 planes Qatar Airways reconfirmed and upsized its earlier order for 50 A320neo with a firm order instead for 50 of the larger A321neo ACF (Airbus Cabin Flex configuration), in an order signed in the presence of HH the Emir Sheikh Tamim Bin Hamad Al Thani and French President Emmanuel Macron. (Gulf-Times.com) JV of French companies to operate Doha Metro, Lusail Tram A joint venture (JV) partnership of the French company Keolis and infrastructure asset management specialist has been named the operator of the Doha Metro and Lusail Tram. The appointment follows a highly rigorous process led by Qatar Rail, which involved extensive reviews of offers received from international bidders. (Gulf-Times.com) International Bank of America Merrill Lynch bullish on 2018 macro outlook Bank of America Merrill Lynch issued a bullish macro outlook for 2018, driven by an expected robust global economic growth, steady US expansion and solid stock returns that peak in the first half of the year. However, it warns of signs that the long bull market run is nearing the end of its leash, triggering a midyear pullback alongside potential for some of the best returns in the last gasps of the cycle. The Merrill Lynch research team forecasts modest returns in equities and credit, negative bond returns, a stronger Dollar, higher levels of volatility and tighter credit spreads in Inflation is expected to be the big story of the year, particularly in the US, where the labor market is expected to further tighten and inflation pressures are building. (Peninsula Qatar) Strong US job gains anticipated in November; wages seen rising US job growth likely increased at a strong clip in November and wages rebounded as the distortions from the recent hurricanes faded, creating a portrait of a healthy economy that analysts say does not require the kind of fiscal stimulus that US President, Donald Trump is proposing. According to a Reuters survey of economists, the Labor Department s closely watched employment report will likely show that nonfarm payrolls rose by 200,000 jobs last month after surging 261,000 in October. The unemployment rate is forecast to be unchanged at a 17- year low of 4.1%. Average hourly earnings are expected to have risen 0.3% in November after being flat the prior month. That Page 3 of 6

4 would lift the annual increase in wages to 2.7% from 2.4% in October. (Reuters) Unexpected decline in German exports narrows trade surplus in October German exports fell unexpectedly in October while vibrant domestic demand pushed up imports, narrowing its trade surplus and adding to evidence that Europe s biggest economy started the fourth quarter on a weak footing. The German economy, which is expected to grow by more than 2% this year, is enjoying a consumer-led upswing, propelled by record-high employment, rising real wages, moderate inflation and ultra-low borrowing costs. Seasonally adjusted exports edged down by 0.4% on the month while imports jumped by 1.8%, data from the Federal Statistics Office showed. The exports figure confounded expectations for 1.0% rise while imports beat a forecast for 1.1% increase. (Reuters) Greece s consumer price inflation picks up to 1.1% in November Greece s annual EU-harmonized Inflation rate accelerated in November, statistics service ELSTAT data showed. The reading in November was 1.1% from 0.5% in October. The data also showed the headline consumer price index was 1.1% YoY from 0.7% in the previous month. Consumer prices were led higher by alcoholic beverages, tobacco, hotels and restaurants, the data showed. Greece had been in a protracted deflation mode since March 2013 based on its headline index, as wage and pension cuts and a multi-year recession took a heavy toll on Greek household incomes. Further, Greece s jobless rate eased to 20.5% in September from an upwardly revised 20.7% in August. (Reuters) Japan s third quarter GDP blows past initial estimates as business investment increases Japan s economy grew twice as fast as originally estimated in the third quarter, due to a business spending splurge and buoyant exports, supporting the central bank s recent signals that it will shift away from crisisera policy. The world s third-largest economy grew an annualized 2.5% in July-September, revised data showed, handily topping forecasts and beating the preliminary reading of 1.4% expansion. (Reuters) China s producer prices ease to four-month low in November China s producer price inflation slowed to a four-month low in November as factory activity softened due to the government s ongoing efforts to curb pollution, cooling demand from factories for raw materials. Producer prices rose 5.8% from a year earlier, the lowest since July, the National Bureau of Statistics stated. The rise was slightly less than market expectations and compared with the previous month s 6.9% increase. Further, China s consumer inflation slowed more than expected to 1.7% in November, official data showed. The annual consumer price index (CPI) had been expected to rise 1.8% compared with an increase of 1.9% in October. Producer prices rose 5.8% from a year earlier, compared with the previous month s rise of 6.9%, the National Bureau of Statistics (NBS) stated. Analysts polled by Reuters had predicted the PPI would rise 5.9% in November on an annual basis. (Reuters) Regional Arab carriers poised to achieve robust growth Arab airlines are expected to achieve a robust 7-8% growth in the number of passengers this year, despite the geo-political crisis in several countries in the region and a short-term ban on laptops from the Middle East region to the US. Arab airlines carried more than 160mn passengers last year, while the airports in the region have handled 301mn passengers in 2016, according to Abdul Wahab Teffaha, Secretary General of Arab Air Carriers Organization (AACO). (GulfBase.com) MENA region construction market to hit $330bn by 2022 The construction sector in the Middle East and North Africa (MENA) region is set to outpace the global growth, expanding by 5.8% in 2018 to hit $225bn, according to BMI Research. The MENA region will be the fastest growing region globally for the construction sector, both in the short and long-term expanding by an annualized average of 6.5% over the next five years to hit $330bn. Positive demographics, gradually rising oil prices, and ambitious economic diversification agendas throughout the region will fuel MENA s outperformance in the coming years, BMI stated. (GulfBase.com) GCC region s MSMEs need funds but getting them is challenging GCC region s micro, small and mediums-sized businesses (MSMEs) are keen to expand, but find raising cash and finding talented staff a challenge, according to Pearl Initiative. The NGO surveyed a thousand MSMEs from the region, 70% of them from Saudi Arabia and the UAE. The survey found 89% of MSMEs in the region plan to raise capital over the next year or two and 71% plan to increase their headcount or expand geographically. Yet the top challenges they face are an absence of talent (43%), the economic conditions (41%) and the absence of cash or finding (39%). (GulfBase.com) Fitch noted 17% of its rated Islamic banks in the GCC region have a Negative outlook Fitch Ratings (Fitch) noted in a report that 17% of its rated Islamic banks in the GCC region have a Negative outlook. The 2018 sector outlook for GCC Islamic banks is Negative as weaker economic growth feeds through to credit fundamentals and with lower financing growth. As a result, asset-quality metrics will continue to see a mild deterioration. Nevertheless, liquidity is improving with government issuance and lower financing growth. Oil generates about 60% of government revenue in the GCC. Oil price expectations indicate that the fiscal deficits will continue to be large in Bahrain, Oman and Saudi Arabia. Fitch forecasted mild GDP growth of 1.5% in 2018 after a 0.1% contraction in 2017 due to oil output cuts. (Reuters) Moody s: GCC sovereign issuance expected to hit $148bn in 2018 The global Sukuk market will continue to rebound from a sharp drop in volumes in 2015, supported by a range of factors, including rising sovereign issuance, product innovation, increasing demand from retail banks and a narrowing of spreads over conventional bonds, Moody s Investors Service (Moody s) noted in a report. Moody s estimated that total Sukuk issuance will reach around $95bn by the end of this year, after more than $85bn in 2016, including more than $50bn of Sukuk issuance by sovereigns. (Peninsula Qatar) CI Ratings affirmed the long-term FCR and raised the shortterm FCR of Al Rajhi Bank Capital Intelligence Ratings (CI Ratings) affirmed the long-term Foreign Currency Rating (FCR) and raised the short-term FCR of Al Rajhi Bank, based in Saudi Arabia. The long-term FCR is affirmed at A+, underpinned by the Bank s very strong capital ratios, strong liquidity, strong Page 4 of 6

5 and continually improving asset quality, and sound net profitability. The short-term FCR is raised to A1 from A2 because of the Bank s improved liquidity, especially given the current operating environment. For the same reasons, the Financial Strength Rating (FSR) is maintained at A+. The ratings are constrained by weakness in fee and other income (FOI), the sovereign rating assigned to Saudi Arabia, and the current operating environment. In view of the Bank s prominent position in the Saudi Arabian banking sector, official financial support is expected to be forthcoming in the unlikely event it is needed. Consequently, the Support Rating remains at 2. The Outlook for all ratings is maintained at Stable. (GulfBase.com) Unified Real Estate Development sets up new building services JV Saudi Arabia s Unified Real Estate Development joined forces with IFA Real Estate Services Group to set up a new venture, Sahalah Facilities Management (FM), aimed at providing integrated facilities management solutions across the Kingdom. Sahalah FM covers six core areas of the real estate management and servicing industry ranging from concierge and security, through public area cleaning to a highly experienced asset and building management function covering waste, utility and environmental efficiency. By combining these core functions, asset owners and managers witness value gained and build a true partnership with their management service provider. (GulfBase.com) CB&I gets EPC award for SASREF Chicago Bridge & Iron Company (CB&I) awarded a contract for over $95mn by Saudi Aramco Shell Refinery (SASREF). The scope of work for the contract includes the engineering, procurement and construction management (EPC) for SASREF s modernization and expansion of its existing refinery in Al-Jubail city, Saudi Arabia. (Bloomberg) The US to sell LNG to Saudi Arabia and the UAE The US is eyeing opportunities to sell liquefied natural gas (LNG) to Saudi Arabia and the UAE as its shale gas boom creates export opportunities and Arabian Gulf countries seek to meet rising domestic gas needs. Saudi Arabia is exploring for new gas supplies which are needed for power generation, industrial use and as feedstock for petrochemical projects. The UAE is also eyeing more LNG supplies from the US. (GulfBase.com) EU tax crackdown to affect the UAE, Bahrain and Tunisia Bahrain, the UAE and Tunisia will get affected as part of an EU crackdown on tax avoidance. The main weapon will be funding restrictions to be imposed by the European Fund for Sustainable Development (EFSD), the European Fund for Strategic Investment (EFSI) and the External Lending Mandate (ELM). Direct funding for projects on the ground in those countries, already subject to checks before loans are released, will not be affected. The real targets are entities through which funds are channeled to other projects overseas, in places such as Africa and India, sources said. These entities would include banks, private equity funds, asset managers and even governmentlinked bodies. (GulfBase.com) The UAE is MENA s second largest FDI recipient The Cumulative Foreign Direct Investment (FDI) of the UAE jumped to $117.9bn by the end of 2016 from $109bn by the end of 2015, a growth of 8.2% supported by increasing investments in areas of transformational and other heavy industries. According to the 2017 Global Investment Report, the UAE is the 11 th largest FDI recipient in Asia. Its main investors are the UK, Japan and Hong Kong. In 2016, the UAE attracted $8.9bn, a 1.7% increase on 2015, with the political and economic stability of the country attracting investors. The bulk of FDI is concentrated in retail/wholesale trading, real-estates, insurance and manufacturing industry sectors. (GulfBase.com) Dubai s wealth managers dismiss the UAE inclusion in EU tax haven blacklist Dubai s wealth managers said a move by the European Union (EU) to include the UAE in a black list of 17 global tax havens is not credible and likely to have a negligible effect on the banking industry which has in recent years intensified efforts to clamp down on financial crime. CEO of Emirates Investment Bank said that the blacklist seemed more of a political exercise than an objective undertaking that judged jurisdictions on specific criteria. (GulfBase.com) Emaar Properties and Dubai Properties in talks with banks for loan financing Dubai s Emaar Properties is in discussions with banks to obtain loan facilities in partnership with Dubai Properties. Discussions are taking place on a bilateral basis with individual banks for a financing package which could be as large as around $1.01bn, according to sources. (GulfBase.com) ADNOC raises AED3.1bn in fuel-retailing unit IPO Abu Dhabi National Oil Co. (ADNOC) raised AED3.1bn from the sale of a stake in its fuel-retailing unit in the first initial public offering in Abu Dhabi in more than six years, pricing the shares in the middle of a range. The crude producer offered a 10% stake or 1.25bn shares, of ADNOC for Distribution at AED2.50 each, according to sources. (Bloomberg) Oman inflation edges up to 1.3% in November Oman s National Center for Statistics and Information released the November consumer price data. Consumer Inflation rose 1.3% YoY in November 2017, as compared to 1.9% YoY in November However, on a monthly basis, consumer inflation declined 0.2% in November, according to Reuters data. (Reuters) Bahrain to join BEPS framework to exit EU s tax-haven blacklist Bahrain will join a group of countries committed to fighting corporate tax avoidance as it seeks to be taken off the European Union s tax-haven blacklist, the Bahraini Ministry of Finance stated. Bahrain will commit to be a member of the Inclusive Framework on BEPS, the ministry stated, listing a series of steps it had already taken to exchange tax information with other countries. (Reuters) CBB to launch compulsory risk regime for Islamic banks Central Bank of Bahrain (CBB) is drawing up tight new requirements for Islamic banks to measure and report their exposure to financial risk, as part of the Kingdom s efforts to standardize the industry and position the country as the Islamic banking capital of the Middle East. CBB will publish a consultation on a proposed risk assessment framework for Islamic banks in the first quarter of 2018, and the final set of regulations in the second half of the year, according to Khalid Hamad Abdul-Rahman Hamad, Executive Director of banking supervision at CBB and Chairman of the International Islamic Financial Market. (GulfBase.com) Page 5 of 6

6 Rebased Performance Daily Index Performance % 0.8% % 0.2% Nov-13 Nov-14 Nov-15 Nov-16 Nov-17 QSE Index S&P Pan Arab S&P GCC 0.0% (0.5%) (1.0%) Saudi Arabia (0.3%) Qatar (0.2%) Kuwait Bahrain (0.5%) Oman (0.8%) Abu Dhabi (0.0%) Dubai Source: Bloomberg Source: Bloomberg Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D%* WTD%* YTD%* Gold/Ounce 1, (2.5) 8.4 MSCI World Index 2, Silver/Ounce (3.6) (0.4) DJ Industrial 24, Crude Oil (Brent)/Barrel (FM Future) (0.5) 11.6 S&P 500 2, Crude Oil (WTI)/Barrel (FM Future) (1.7) 6.8 NASDAQ 100 6, (0.1) 27.1 Natural Gas (Henry Hub)/MMBtu 2.75 (2.0) (3.3) (25.4) STOXX LPG Propane (Arab Gulf)/Ton (0.1) (1.5) 35.0 DAX 13, LPG Butane (Arab Gulf)/Ton (1.3) (13.0) FTSE 100 7, Euro # (1.0) 11.9 CAC 40 5, (0.1) Yen (3.0) Nikkei 22, (1.4) 22.6 GBP 1.34 (0.6) (0.6) 8.5 MSCI EM 1, (0.5) 28.8 CHF (1.7) 2.6 SHANGHAI SE Composite 3, (1.2) 11.3 AUD 0.75 (0.0) (1.4) 4.2 HANG SENG 28, (1.4) 29.3 USD Index (8.1) BSE SENSEX 33, RUB (0.1) 0.4 (3.5) Bovespa 72, (0.7) 19.0 BRL 0.30 (0.0) (1.0) (1.2) RTS 1, (1.2) (2.8) Source: Bloomberg ( # Market was closed on December 8, 2017) Source: Bloomberg (*$ 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 6 of 6