1. Page 1 of 8
QE Intra-Day Movement
Qatar Commentary
The QE index declined 0.5% to close at 13,103.5. Losses were led by the
Banking & Financial Services and Industrials indices, declining 1.0% and 0.2%,
respectively. Top losers were QNB Group and Medicare Group, falling 3.0%
and 2.4%, respectively. Among the top gainers, Doha Insurance Co. rose 5.6%,
while Zad Holding Co. was up 4.7%.
GCC Commentary
Saudi Arabia: The TASI index rose 0.3% to close at 10,478.3. Gains were led
by the Insurance and Banking & Fin. Services indices, rising 1.6% and 0.9%,
respectively. Al Alamiya gained 9.8%, while Aljazira Takaful was up 7.8%.
Dubai: The DFM index declined 2.4% to close at 4,726.6. The Real Estate &
Construction index fell 3.5%, while the Inv. & Fin. Serv. index was down 3.1%.
Int. Fin. Advisors declined 6.1%, while Gulf General Inv. Co. was down 4.2%.
Abu Dhabi: The ADX benchmark index fell 0.9% to close at 4,916.2. The Real
Estate index declined 3.1%, while Inv. & Fin. Serv. index was down 3.0%. Abu
Dhabi Comm. Bank declined 4.8%, while Methaq Takaful Ins. was down 4.4%.
Kuwait: The KSE index gained 0.1% to close at 7,172.5. The Oil & Gas index
rose 0.5%, while Banking index was up 0.3%. Credit Rating & Collection
gained 8.8%, while Real Estate Asset Management Co. was up 8.5%.
Oman: The MSM index declined marginally to close at 7,346.8. Losses were
led by the Financial index falling 0.3%, while other indices ended in green.
Oman & Emirates Inv. Holding fell 2.5%, while Bank Nizwa was down 2.4%.
Bahrain: The BHB index fell 0.1% to close at 1,486.0. The Services index
declined 1.5%, while other indices remained unchanged or ended in green.
Ithmaar Bank fell 2.9%, while Bahrain Telecom. Co. was down 2.6%.
Qatar Exchange Top Gainers Close* 1D% Vol. ‘000 YTD%
Doha Insurance Co. 28.50 5.6 561.9 14.0
Zad Holding Co. 86.90 4.7 1.1 25.0
Mazaya Qatar Real Estate Dev. 21.25 3.2 3,739.9 90.1
Qatar General Ins. & Reins. Co. 46.05 2.3 1.8 15.4
Qatar Navigation 92.60 1.3 30.3 11.6
Qatar Exchange Top Vol. Trades Close* 1D% Vol. ‘000 YTD%
Mazaya Qatar Real Estate Dev. 21.25 3.2 3,739.9 90.1
Salam International Investment Co. 19.90 0.8 2,064.8 53.0
Qatar Oman Investment Co. 15.73 0.8 1,449.6 25.6
Ezdan Holding Group 19.80 (0.8) 1,298.4 16.5
United Development Co. 29.90 (1.0) 1,210.5 38.9
Market Indicators 06 Aug 14 05 Aug 14 %Chg.
Value Traded (QR mn) 583.5 789.3 (26.1)
Exch. Market Cap. (QR mn) 695,508.2 699,943.7 (0.6)
Volume (mn) 15.5 18.5 (16.5)
Number of Transactions 7,004 8,182 (14.4)
Companies Traded 42 43 (2.3)
Market Breadth 17:19 34:6 –
Market Indices Close 1D% WTD% YTD% TTM P/E
Total Return 19,543.67 (0.5) 1.8 31.8 N/A
All Share Index 3,307.11 (0.5) 1.6 27.8 16.0
Banks 3,164.16 (1.0) 0.7 29.5 15.5
Industrials 4,326.61 (0.2) 1.2 23.6 16.7
Transportation 2,310.31 0.1 3.6 24.3 14.8
Real Estate 2,821.37 (0.0) 5.0 44.5 15.2
Insurance 3,819.30 0.0 1.7 63.5 12.1
Telecoms 1,596.38 (0.1) 1.2 9.8 22.6
Consumer 7,327.46 (0.0) 4.5 23.2 27.9
Al Rayan Islamic Index 4,489.26 (0.2) 4.5 47.9 19.3
GCC Top Gainers##
Exchange Close#
1D% Vol. ‘000 YTD%
Advanced Petrochem. Saudi Arabia 55.24 3.7 1,188.6 35.4
Arriyadh Dev. Co. Saudi Arabia 24.54 3.5 5,111.2 16.0
Kuwait Int. Bank Kuwait 0.32 3.2 950.6 8.5
Banque Saudi Fransi Saudi Arabia 36.96 2.9 494.2 41.2
National Real Estate Co. Kuwait 0.15 2.7 1,283.1 2.3
GCC Top Losers##
Exchange Close#
1D% Vol. ‘000 YTD%
Com. Bank Of Kuwait Kuwait 0.67 (5.6) 0.0 0.5
Abu Dhabi Com. Bank Abu Dhabi 8.20 (4.8) 2,368.0 26.2
Dubai Financial Market Dubai 3.25 (4.1) 9,976.9 31.6
Emaar Properties Dubai 9.60 (3.9) 14,464.7 38.2
Ajman Bank Dubai 2.71 (3.9) 101.6 9.3
Source: Bloomberg (
#
in Local Currency) (
##
GCC Top gainers/losers derived from the Bloomberg GCC
200 Index comprising of the top 200 regional equities based on market capitalization and liquidity)
Qatar Exchange Top Losers Close* 1D% Vol. ‘000 YTD%
QNB Group 178.00 (3.0) 190.9 3.5
Medicare Group 122.90 (2.4) 92.9 134.1
Qatari Investors Group 54.00 (1.8) 56.6 23.6
Gulf Warehousing Co. 50.00 (1.8) 24.9 20.5
Qatar Islamic Insurance Co. 84.50 (1.7) 37.3 45.9
Qatar Exchange Top Val. Trades Close* 1D% Val. ‘000 YTD%
Mazaya Qatar Real Estate Dev. 21.25 3.2 78,929.6 90.1
Industries Qatar 174.00 0.6 50,231.8 3.0
Salam International Investment Co 19.90 0.8 41,350.6 53.0
Masraf Al Rayan 54.30 0.2 36,667.0 73.5
United Development Co. 29.90 (1.0) 36,625.5 38.9
Source: Bloomberg (* in QR)
Regional Indices Close 1D% WTD% MTD% YTD%
Exch. Val. Traded
($ mn)
Exchange Mkt.
Cap. ($ mn)
P/E** P/B**
Dividend
Yield
Qatar* 13,103.45 (0.5) 1.8 1.8 26.2 160.25 190,986.5 16.2 2.2 3.8
Dubai 4,726.57 (2.4) (2.2) (2.2) 40.3 192.43 92,688.8 20.8 1.8 2.2
Abu Dhabi 4,916.23 (0.9) (2.7) (2.7) 14.6 54.96 135,315.6 14.0 1.7 3.4
Saudi Arabia 10,478.34 0.3 2.6 2.6 22.8 2,033.25 571,126.1 20.1 2.5 2.7
Kuwait 7,172.45 0.1 0.6 0.6 (5.0) 53.44 112,435.0 17.1 1.1 3.8
Oman 7,346.83 (0.0) 2.0 2.0 7.5 10.50 26,972.7 12.4 1.8 3.8
Bahrain 1,486.00 (0.1) 1.0 1.0 19.0 0.23 54,456.0 12.0 1.0 4.6
Source: Bloomberg, Qatar Exchange, Tadawul, Muscat Securities Exchange, Dubai Financial Market and Zawya (** TTM; * Value traded ($ mn) do not include special trades, if any)
13,050
13,100
13,150
13,200
13,250
9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00

2. Page 2 of 8
Qatar Market Commentary
 The QE index declined 0.5% to close at 13,103.5. The Banking &
Fin. Services and Industrials indices led the losses. The index
fell on the back of selling pressure from Qatari shareholders
despite buying support from non-Qatari shareholders.
 QNB Group and Medicare Group were the top losers, falling
3.0% and 2.4%, respectively. Among the top gainers, Doha
Insurance Co. rose 5.6%, while Zad Holding Co. was up 4.7%.
 Volume of shares traded on Wednesday fell by 16.5% to 15.5mn
from 18.5mn on Tuesday. However, as compared to the 30-day
moving average of 14.7mn, volume for the day was 4.9% higher.
Mazaya Qatar Real Estate Dev. and Salam International
Investment Co. were the most active stocks, contributing 24.2%
and 13.4% to the total volume respectively.
Source: Qatar Exchange (* as a % of traded value)
Ratings, Earnings and Global Economic Data
Ratings Updates
Company Agency Market Type* Old Rating New Rating Rating Change Outlook Outlook Change
AIG MEA Limited
(AMEA)
S&P Dubai LT CCR/IFSR – A/A – Stable –
Bank of Sharjah
(BOS)
CI Abu Dhabi
FSR/LT FCR/ST
FCR/SR
BBB+/A-/A2/2
BBB+/ A-
/A2/2
– Stable –
Source: News reports (* LT – Long Term, ST – Short Term, FSR- Financial Strength Rating, FCR – Foreign Currency Ratings, LCR – Local Currency Rating, IDR – Issuer Default Rating, SR – Support Rating,
LC – Local Currency, IFSR – Insurer Financial Strength Rating, CCR – Counterparty Credit Rating)
Earnings Releases
Company Market Currency
Revenue
(mn)2Q2014
% Change
YoY
Operating Profit
(mn) 2Q2014
% Change
YoY
Net Profit (mn)
2Q2014
% Change
YoY
Dana Gas Abu Dhabi AED 685.0 29.7% – – 169.0 69.0%
Al Anwar Holding* Oman OMR 2.4 25.7% – – 1.6 27.8%
Dhofar Cattle Feed Co. Oman OMR 15.0 4.4% – – -1.7 NA
Nass Corporation Bahrain BHD 20.2 4.3% – – 1.3 237.6%
Source: Company data, DFM, ADX, MSM (* 1Q2015 results)
Global Economic Data
Date Market Source Indicator Period Actual Consensus Previous
08/06 US MBA MBA Mortgage Applications 1 August 1.60% – -2.20%
08/06 US US Census Bureau Trade Balance June -$41.5B -$44.8B -$44.7B
08/06 EU Markit Markit Eurozone Retail PMI July 47.6 – 50.0
08/06 France Markit Markit France Retail PMI July 45.6 – 47.6
08/06 Germany Markit Markit Germany Construction PMI July 48.2 – 45.5
08/06 Germany Markit Markit Germany Retail PMI July 52.1 – 56.2
08/06 UK ONS Industrial Production MoM June 0.30% 0.60% -0.60%
08/06 UK ONS Industrial Production YoY June 1.20% 1.50% 2.30%
08/06 UK ONS Manufacturing Production MoM June 0.30% 0.60% -1.30%
08/06 UK ONS Manufacturing Production YoY June 1.90% 2.10% 3.70%
08/06 UK NIESR NIESR GDP Estimate July 0.60% – 0.80%
08/06 Italy ISTAT Industrial Production MoM June 0.90% 0.80% -1.20%
08/06 Italy ISTAT Industrial Production WDA YoY June 0.40% -1.10% -1.70%
08/06 Italy ISTAT Industrial Production NSA YoY June 0.40% – -4.80%
08/06 Italy Markit Markit Italy Retail PMI July 43.4 – 43.8
08/06 Italy ISTAT GDP WDA QoQ 2Q2014 -0.20% 0.10% -0.10%
08/06 Italy ISTAT GDP WDA YoY 2Q2014 -0.30% 0.10% -0.40%
08/06 Japan ESRI Leading Index CI June 105.5 105.5 104.8
08/06 Japan ESRI Coincident Index June 109.4 109.6 111.3
Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted)
Overall Activity Buy %* Sell %* Net (QR)
Qatari 62.31% 64.88% (15,000,368.46)
Non-Qatari 37.68% 35.11% 15,000,368.46

3. Page 3 of 8
News
Qatar
 Qatar set to award projects worth $26.2bn – Qatar will award
projects worth $26.2bn in 2014 as compared to $9.4bn in 2013.
According to latest figures released by construction intelligence
firm Ventures Onsite, the infrastructure project awards across
the GCC are forecasted to exceed $86bn in 2014, indicating an
increase of 77.8% over 2013. In the UAE, projects worth
$15.18bn will be awarded, almost five times more than what was
awarded in 2013, while in Oman infrastructure awards are
expected to reach $7.4bn. Bahrain, which awarded projects
worth $382mn in 2013, is expected to award $3.4bn. Kuwait is
expected to award projects worth $3.45bn. Saudi Arabia’s
forecasted award of $29.34bn — the highest in the region —
represents a YoY decrease. The infrastructure projects make up
16% of the total construction value of GCC projects, and rail
projects like the Riyadh Metro are the main beneficiary.
According to Ventures, it is estimated that the rail sector is worth
$200bn as the six countries aim for an integrated GCC-wide
network by 2018. (Reuters)
 Qatar infrastructure upgrade drive to boost insurance,
transport – The insurance and transport sectors were seen
going through their troughs in terms of profitability during
1H2014, but they exhibit inherent intrinsic strengths in view of
the country’s capital expenditure-driven economy. The
cumulative profit of the insurance sector, under which there are
five listed constituents, had fallen 33.26% in 1H2014 as against
a stupendous growth of 148.71% in 1H2013. The five national
insurers were among the consortium that recently won a big-
ticket risk cover contract for Qatar’s mammoth metro rail project,
which is now progressing as per the schedule for completion by
late 2019. Qatar Rail – which is at the forefront of building a
Doha Metro, Lusail Light Rail Transit and Long Distance Freight
and Passenger – recently awarded the “single project tunneling
and rail construction” insurance to a consortium of national
insurance companies that also include Qatar General &
Reinsurance, Al Khaleej Takaful Group, Doha Insurance, Qatar
Islamic Insurance and Al Koot Insurance and Reinsurance. The
listed insurance companies together reported a profit of
QR839.28mn in 1H2014 with Qatar Insurance Company
contributing about 76%. Their cumulative net profit stood at
QR1.26bn in 2013. According to market sources, Qatar’s large-
scale investments in infrastructure, including Qatar Rail, is
expected to have a positive “spin off” for the insurance sector,
which now comes under the ambit of the Qatar Central Bank as
part of a single financial regulatory set up. The transport sector,
which has three listed constituents, saw its net profit rise 4.65%
to QR1.03bn in 1H2014 against 14.26% in the corresponding
period of the previous year. (Gulf-Times.com)
 HotStats: Doha hotels occupancy levels on growth path –
Hotels in Doha city experienced an 11.4% growth in occupancy
to 75.9% in 1H2014, pushing revenue per available room rates
(RevPAR) up by 11.5% to $166.66 despite average room rates
(ARR) declining 5.3%. The latest HotStats survey of hotels in
five Mena cities noted that the Food & Beverages (F&B)
activities generated 45.8% of hotel revenues, which is a high
contribution relative to other regional markets. The F&B
operations benefited from double-digit growth in revenues
coupled with lower departmental expenses and payroll costs,
leading Doha’s TRevPAR to grow by 12% during 1H2014.
Elevated by the top-line performance, the efficient operating cost
control coupled with a 1.5% reduction in payroll expenses,
boosted gross operating profit per available room (GOPPAR) by
19.1% to $166.74. (Peninsula Qatar)
 Two West Bay towers sold for QR1.5bn – Two towers in the
posh West Bay area of the city were sold for a staggering
QR1.5bn late last month. The transactions took the total value of
real estate deals concluded in a week to an all-time high of
QR2.76bn. Real estate registration details for the week (July 20
to 24) show that one of the towers, measuring 3,126 square
meters in Al Dafna, was sold for a billion riyals. This is one of the
highest values recorded for a real estate deal in Qatar’s known
history, property market observers say. The second tower, also
in Al Dafna, was sold for QR500mn. (Peninsula Qatar)
International
 US Treasury looks to hold more cash to deal with future
crises – A senior official said the US Treasury wants to increase
its daily cash holdings, a measure that would help Washington
pay its bills during a crisis. If adopted, the new policy would help
the government in the event an emergency shutdown of markets
and left Washington unable to borrow money to pay creditors
and other obligations. Treasury Assistant Secretary Matt
Rutherford said that holding more cash on hand is a prudent
measure. He added that the measures would help public
finances weather events like the September 11, 2001 attacks or
2012's Superstorm Sandy, both of which disrupted Wall Street
trading. Washington borrows vast sums in weekly auctions to
pay its bills. Investors who met Treasury officials on Tuesday
urged the government to increase its daily cash holdings to
around $500bn. That would be enough to cover about 10 days
worth of outlays. A change in policy, however, would not buy the
government any additional time if it runs into a legal limit on
borrowing next year. The current law will limit the amount of
cash Treasury can hold when a cap on federal borrowing
becomes binding again in March 2015. The US government
suspended the debt ceiling in February 2014. (Reuters)
 US trade gap at five-month low, to boost second-quarter
GDP – The US trade deficit narrowed more than expected in
June as petroleum imports dropped to a 3-1/2-year low,
suggesting that trade was less of a drag on second-quarter
economic growth than initially thought. The Commerce
Department said the trade gap shrank 7.0% to $41.5bn, the
lowest reading since January. That was smaller than the roughly
$44.8bn shortfall the government had assumed in its first
snapshot of second-quarter GDP published last week. When
adjusted for inflation, the deficit narrowed to $48.8bn from
$52.0bn in May. As a result, economists expect the GDP growth
estimate for the April-June quarter to be raised by as much as
0.3 percentage point later this month. The government
estimated a week ago that trade subtracted 0.61 percentage
point from growth during the April-June period. In that report, it
said the economy expanded at a 4.0% annual rate during that
quarter after shrinking 2.1% in the first three months of 2014.
Economists had expected a trade gap of $44.7bn in June, a
slight widening from the previously reported $44.4bn May
shortfall. The May gap was revised to $44.7bn. Imports fell 1.2%
in June, the largest drop in a year, to $237.4bn. That came as
petroleum imports declined to $27.4bn, the lowest level since
November 2010, from $28.3bn in May. (Reuters)
 BofA said to near mortgage deal for up to $17bn – According
to sources, the Bank of America Corp. (BofA) is nearing a $16bn
to $17bn settlement with the US Justice Department to resolve
probes into sales of mortgage-backed bonds in the run-up to the
financial crisis. Under the proposed terms, the bank would pay
about $9bn in cash and the rest in consumer relief to settle
federal and state claims. The details of the proposed accord,
such as the relief and a statement of facts, are still being
negotiated. The outlines of the deal were reached last week

4. Page 4 of 8
after a phone call between Attorney General Eric Holder and
BofA CEO Brian T. Moynihan. During the July 30 call, Holder
said that the government was ready to file a lawsuit in New
Jersey if the bank did not offer an amount closer to the
department’s demand of about $17bn. BofA separately said it is
raising its quarterly dividend to 5 cents a share, while dropping a
plan to buy back stock, after securing Federal Reserve approval
of its proposal for managing capital. The dividend increase, the
first in seven years, had been postponed earlier this year while
the company fixed errors in its initial plan submitted to the Fed.
(Bloomberg)
 Standard Chartered faces more US fines as profit drops
20% – Standard Chartered Plc (STAN) said it faces further US
fines over efforts to block money laundering and posted a 20%
earnings decline on losses in Asia. The London-based bank said
the pretax profit, excluding adjustments to the value of the
company’s own debt, fell to $3.3bn in 1H2014 from $4.1bn in
1H2013. That matched the average of 11 analysts’ estimates in
a Bloomberg survey. Standard Chartered said it is likely to face
more penalties after New York’s banking regulator found “certain
issues” with its anti-money laundering systems. That’s adding to
pressure from disgruntled investors on CEO Peter Sands, as he
navigates faltering economies in Asia, where the bank
generates about three-quarters of its earnings. The lender
posted a $127mn loss in Korea for the period, and said it made
provisions for a fraud in China. (Bloomberg)
 NIESR: UK economic growth slows in May-July – The
National Institute of Economic & Social Research said Britain's
economy grew at its slowest pace in a year in the three months
through July due to virtually flat industrial output. The think tank
estimated gross domestic product rose 0.6% during the May-
July period of 2014, from the previous three-month period. That
marks a slowdown after it increased 0.8% in April-June, and the
lowest rate for any three-month period since July last year.
NIESR bumped up its 2014 economic growth forecast for Britain
to 3.0% in a quarterly update, from 2.9% previously. It does not
expect the Bank of England to raise interest rates until February
next year – a prospect that signs of a modest slowdown may
bolster. Official data showed that the industrial output grew by
just 0.3% in June, half the rate economists had forecast. NIESR
said the output per person might not recover to its pre-financial
crisis level until 2017, citing weak productivity. (Reuters)
 Draghi outlook menaced by Putin as Ukraine crisis bites –
The crisis in eastern Europe could disrupt Mario Draghi’s
economic outlook. Evidence is building that the conflict in
Ukraine and European Union sanctions against Vladimir Putin’s
Russia are undermining a Euro area recovery that the European
Central Bank (ECB) president already describes as weak. With
the ECB expected to keep interest rates on hold near zero today
and refrain from any new policy measures, Draghi is likely to
face questions on how he plans to keep the economy on track.
The ECB will announce its interest-rate decision in Frankfurt and
Draghi will hold a press conference later. All 57 economists in a
Bloomberg survey say officials will keep the benchmark rate at
0.15%. The Bank of England’s Monetary Policy Committee is
also predicted to leave its key interest rate unchanged, at a
record-low of 0.5%, when it meets in London. (Bloomberg)
 German orders fall at their sharpest rate in almost three
years in June – German industrial orders slid in June at their
steepest rate since September 2011 as Euro zone demand fell
and geopolitical risks made firms cautious, suggesting this
sector of Europe's largest economy will have a weak start to the
third quarter. According to the Economy Ministry data, contracts
fell by 3.2% on the month as orders from the single currency
bloc plunged by 10.4%. That missed the Reuters consensus
forecast for a 1.0% rise and undershot even the lowest estimate
for a 0.5% decrease. Senior economist at ING, Carsten Brzeski
said while a stagnation of the German economy in the second
quarter seems hard to avoid, the industrial engine is losing some
fuel. A breakdown of data showed foreign orders slumped by
4.1%, with economists attributing this mainly to weakness in the
single currency bloc rather than the Ukraine crisis. German firms
also held back, with domestic orders down by 1.9%. (Reuters)
 China July data to give clues on recovery strength, more
stimulus – A raft of China data over the coming week will give
the first indications of the economy's third-quarter performance,
after conflicting signals suggested that more stimulus measures
may be needed to ensure a sustained recovery. While
manufacturing appears to have picked up, thanks largely to
government-backed measures and a modest resurgence in
exports, data this week showed sudden and unexpected
weakness in the services sector. The decline appeared linked to
the cooling property market, which may be facing a prolonged
slump that could hurt related businesses and dampen consumer
confidence. A Reuters poll of 30 economists shows the factory
output likely held steady in July, while overall investment growth
ticked higher, chiming with expectations that a flurry of pro-
growth steps from Beijing earlier this year is paying dividends.
Anecdotal evidence, however, suggests property investment,
sales and construction could show a seventh month of
deterioration, suggesting the sector will be an increasing drag on
activity even if other parts of the world's second-largest
economy are gaining traction.(Reuters)
Regional
 EIU: Food imports by Gulf countries to touch $53.1bn by
2020 – According to the Economist Intelligence Unit (EIU), the
value of food imports by Gulf Cooperation Council (GCC)
countries is forecasted to reach $53.1bn by 2020. The EIU
attributes the expected increase to the fact that 90% of the
Gulf's current food demands are met with imports, an over-
reliance caused by climatic conditions and land use restrictions.
However, the regional imports far exceed demand and the
GCC's position as a major logistics hub for the global food
industry is aided by significant re-export trade. Meanwhile, the
Dubai Multi Commodities Center (DMCC) figures show that the
UAE currently re-exports nearly 50% of its imported food
products to other GCC countries, Russia, India, Pakistan and
East Africa. One of the world's biggest re-exporters of goods
such as coffee, tea, sugar and rice, the UAE was responsible for
approximately 90% of global rice re-exports in 2010. With
regional food demand set to grow, the World Bank projects the
MENA region's food market to exceed $1tn by 2030.
(GulfBase.com)
 Ramco wins order from Falcon Aviation Services – Ramco
Systems has signed an agreement with Middle East based
Falcon Aviation Services, with Falcon becoming its 65th aviation
customer. As per the agreement, Ramco will provide its
complete engineering, materials management, maintenance,
quality, flight operations, and MRO modules along with ERP
financials, HR and payroll. (GulfBase.com)
 Rising interest rates may revive appetite for Islamic
commodity deals – A return to an era of higher interest rates
could derail attempts by Islamic finance to create alternatives to
a short-term funding instrument that has dominated the industry,
but which some scholars and regulators want to see replaced.
Islamic finance has been trying to diversify away from so-called
commodity murabaha, a common cost-plus profit arrangement,
in an attempt to reduce reliance on a single tool, stop money
from "leaking" to western banks, and find instruments closer to

5. Page 5 of 8
the principles of sharia-compliant financing. Saudi banks alone
handled nearly $20bn a day of murabaha transactions back in
2006, but western banks largely deserted the market after the
2008 financial crisis, turning instead to central banks as a
source of cheap funds. Islamic finance has developed
alternative inter-bank tools, but higher interest rates are
expected to boost murabaha trading, luring back western
borrowers looking for cheap finance and Islamic banks seeking
better returns on surplus funds. (Reuters)
 Saudi organizations’ foreign assets reach SR385.3bn –
Saudi organizations, including the Saudi Arabian Monetary
Agency (SAMA) and Public Investment Fund (PIF), had financial
assets totaling SR385.3bn in foreign countries in June 2014.
The assets in foreign countries amounted to 63% of their total
assets. The total assets of these organizations rose to
SR608.3bn by the end of June 2014, showing an increase of
SR4bn (1%), as compared to May 2014. The amount was down
SR6bn as compared to the assets of SR614.3bn in June 2013.
(GulfBase.com)
 Astra Group secures SR877.5mn Islamic Banking Facilities
from SABB – Astra Industrial Group has signed Islamic Banking
Facilities agreement with The Saudi British Bank (SABB) for an
amount of SR877.5mn. The term of the loan is 6 years ending
on August 6, 2020. Astra Group is aiming to use the loan
amount to fund the capital expenditure. (Tadawul)
 SAMA approves UCA’s SR210mn capital increase through
rights issue – The Saudi Arabian Monetary Agency (SAMA)
has approved United Cooperative Assurance Company’s (UCA)
request to raise its capital by SR210mn through a rights issue.
The reasons for capital increase are to maintain the solvency
margin of the business and support the future growth of the
company. (Tadawul)
 AM Best withdraws ratings of TUCI – AM Best has removed
from under review with negative implications and downgraded
the financial strength rating to B+ (Good) from B++ (Good) and
the issuer credit rating to "bbb-" from "bbb" of Trade Union
Cooperative Insurance Company - A Saudi Joint Stock
Company (TUCI). The outlook assigned to the ratings is
negative. Concurrently, AM Best has withdrawn the ratings due
to managements' request to no longer participate in AM Best's
interactive rating process. (AM Best)
 Al-Khodari terminates remaining JV agreement with Al Arfaj
Group – Abdullah A. M. Al-Khodari Sons Company (Al-Khodari)
has terminated the remaining joint venture agreement with
Abdullatif M. Al Arfaj & Brothers Holding Company (Al Arfaj
Group). The agreement is concerning the replacement and
upgrading of infrastructure of King Khaled Hospital in Hail. The
JV agreement is terminated due to the cancellation of this
project by the Ministry of Health. This was the last JV agreement
between the two groups out of the six agreements signed.
(Tadawul)
 Bank AlJazira reports net income of SR326.04mn in 1H2014
– Bank AlJazira reported net income of SR326.04mn for 1H2014
as compared to SR311.64mn in 1H2013. Net income for
2Q2014 was SR166.7mn as compared to SR167.4mn in
2Q2014. EPS for 1H2014 amounted to SR0.82 as against
SR0.78 in 1H2013. Bank registered total operating income of
SR1.09bn in 1H2014 as against SR891mn in 1H2013. Total
assets as of June 30, 2014 stood at SR65.80bn as against
SR59.98bn as of December 31, 2013. Net loans & advances as
of June 30, 2014 stood at SR38.97bn, while customer deposits
were SR51.84bn. (Bloomberg)
 UAE CB to link switch with China Union Pay – The UAE
Central Bank (USE CB) is set to link the UAE Electronic Switch
with China Union Pay, which is China’s electronic switch. This
move will enable Chinese tourists and traders to withdraw cash
from the automatic telling machines (ATMs) across the UAE.
The UAE CB decision comes following the recent substantial
increase of Chinese tourists and traders. This procedure would
allow Chinese tourists to easily withdraw cash using their debit
cards issued by Chinese banks from UAE ATMs, knowing that
previously they could withdraw money only by credit cards and
that exaggerated fees were imposed on such withdrawals if
made outside China. (GulfBase.com)
 TIME Hotels wins management contract for five-star Egypt
property – UAE-headquartered hospitality company, TIME
Hotels Management, has bagged the management contract for
a luxury five-star property in the upmarket development of Sahl
Haseesh, on Egypt’s Red Sea coast. Constructed by Egyptian
developer Prime Estates International, the TIME Renero Resort
Azzurra and TIME Suites Azzurra are located within the Azzurra
project. The low-rise landscaped hotel, which will open under
the TIME Hotels banner in November 2014, offers a total of 87
guestrooms and 110 suites, with the residences comprising a
collection of 287 one, two and three-bedroom luxurious homes.
(Bloomberg)
 EIBank reports net profit of AED35.3mn in 1H2014 –
Emirates Investment Bank (EIBank) reported a net profit of
AED35.3mn in 1H2014 as compared to AED27.8mn in 1H2013,
reflecting an increase of 27%. Net profit for 2Q2014 increased
by 28% to reach AED15.8mn from AED12.3mn in 2Q2013.
Customer deposits as of June 30, 2014 increased by 50% to
AED2.51bn from AED1.67bn as of December 31, 2013. Total
assets under management increased by 44% to AED6.14bn as
compared to AED4.27bn as of December 31, 2013. (DFM)
 Daman Investments to revive IPO plans – According to
sources, Dubai-based fund manager Daman Investments is
reviving plans for an initial public offering (IPO) nearly two years
after it placed the share sale on hold. Daman is interviewing
banks for an advisory role to help manage the offer. The
company is expected to hire a local bank to arrange the sale
and the IPO is expected in 2015. (Bloomberg)
 Emirates signs deal with BAE Systems – BAE Systems has
signed a five-year agreement with Emirates Airline to provide
maintenance and technical support for its entire Boeing fleet.
Under the terms of the agreement, BAE Systems will deliver on
agreed-upon turnaround times, position product in region, and
provide technical support to Emirates. The company will provide
maintenance support for products supplied at line fit to Boeing.
These include flight controls, flight deck systems, and control
and monitoring systems, at its service centers in the US, UK and
Singapore. (Bloomberg)
 SKAI Holdings secures sales worth AED927mn – Dubai-
based SKAI Holdings has secured AED927mn worth of sales for
its new AED1.2bn four-star hotel in the SKAI. Located in Dubai’s
Jumeirah Village Circle, the construction work on the hotel will
begin in September 2014 with operations due to commence in
2017. SKAI Holdings officially launched the project in June 2014
and is reported to have sold all available hotel rooms and
serviced apartments in the 60-storey tower. (Bloomberg)
 Rabobank to issue LCs for DME trading from Singapore –
Dubai Mercantile Exchange (DME) announced that Rabobank
has given its approval to issue Letters of Credit (LCs) for trading
on DME directly from Singapore. The approval marks the
culmination of extensive joint efforts to facilitate trading activities
of DME’s and Rabobank’s mutual customers in Asia. Rabobank

6. Page 6 of 8
will now be able to issue LCs directly from Singapore to
guarantee deliveries of Oman Blend crude oil through the DME,
helping to create a more efficient, cost-effective and reliable
trading ecosystem around the exchange. (Bloomberg)
 Dubai’s foreign trade in phones hits AED163bn in 2013 –
According to data released by Dubai Customs, Dubai’s foreign
trade in phones totaled AED163bn in 2013, representing about
12% of the emirate’s overall foreign trade volume. Trade in
telephones amounted to AED42.5bn in 1Q2014, up 126% as
compared to AED18.8bn recorded in the same period four years
ago. Trade in phones ranked first among other commodities
traded in the emirate, according to statistics. (Bloomberg)
 Dubai Trade records impressive growth in 1H2014 – Dubai
Trade announced a 94% increase in the number of its services
accessed online in 1H2014 as compared to 1H2013. 1H2014
also saw a 27% growth in new companies joining the Dubai
Trade Portal, resulting in 8,985 new registered companies,
taking the newly registered numbers from 79,083 in 2013 to
96,889 so far in 2014. This generated a 12% growth in
transactions with a total of 9.1mn transactions processed by
users on the Dubai Trade Portal. The increased activity also had
a positive impact on the secured e-Payment gateway, Rosoom,
which handled 549,000 payment transactions valued at
AED440mn, reflecting a 39% growth rate. (Bloomberg)
 UNB signs partnership with Orient Insurance – Union
National Bank (UNB) has signed a strategic partnership with
Orient Insurance for distributing Orient Insurance products
through UNB branches across the UAE. As part of the launch, a
range of capital guaranteed products across diverse categories
such as children’s education, women care, savings and life
insurance will be launched and promoted across all UNB
branches in the UAE. (GulfBase.com)
 Takaful Chairman steps down – Abu Dhabi National Takaful
Company’s (Takaful) Chairman, Khadem Al Qubaisi, has
resigned from his position. He has been replaced by Vice-
Chairman Khamis Buharoon. Nasser M. Al Murr Al Za’abi has
filled the vacated board seat. (GulfBase.com)
 OAMC to sign agreement to manage duty-free at Salalah
airport – Oman Airports Management Company (OAMC) has
selected ATU Turizm Isletmeciligi as master concessionaire for
the management and operation of duty-free, retail and food and
beverage concessions at the new Salalah airport. ATU duty-free
was selected thorough a competitive bidding process. OAMC
will sign a 10-year contract with ATU duty-free airport after
successful satisfaction of the pre-award requirements.
(GulfBase.com)
 CI affirms Oman currency ratings; outlook stable – Capital
Intelligence (CI) has affirmed Oman’s long-term foreign and
local currency sovereign ratings at A and its short-term foreign
and local currency ratings at A1, with a stable outlook for the
ratings. CI said the sultanate’s track record of reasonably
prudent economic management, which – combined with
favorable oil prices – has led to a run of budget surpluses, low
levels of public debt and comparatively strong external finances.
The agency said the ratings are also underpinned by the
government’s substantial stock of external assets and the
currently sound banking system, adding that Oman’s economic
performance remains satisfactory. The economy expanded by
about 5% for the second year in a row in 2013, supported by
increased hydrocarbon production and an expansionary fiscal
policy. (GulfBase.com)
 Salalah Port Services renews agreement with Maersk Line –
Salalah Port Services Company has renewed and signed a
multi-year agreement with Maersk Line, which has been an
integral customer of the port since the start of the port’s
operations in November 1998. (MSM)
 OIFC appoints new CEO – Oman Investment & Finance
Company (OIFC) has appointed Mr. Said Ahmed Safrar as its
Chief Executive Officer (CEO). Mr. Safrar will take charge by the
third week of August 2014 and has more than twenty years of
professional experience in the banking and telecom industry.
(MSM)
 11 firms competing for 2,600MW power plant in Oman – 11
international power giants have submitted their requests for
prequalification to develop Oman's biggest gas-fired power
plant, to be built in two locations, with a combined generation
capacity of 2,600 megawatt. The companies that have submitted
their request for qualification are CHD Power Plant Operational
co-led consortium, EDF International, GDF Suez, General
Electric-led consortium, Korea Electric Power Corporation,
Mapna Group-led consortium, Marubeni Corporation, Mitsubishi-
led consortium, Mitsui, Sembcorp Utilities-led consortium and
Sojitez Corporation. The state-owned Oman Power and Water
Procurement (OPWP) floated a request for qualification by mid-
June, giving potential developers to submit their proposals up to
August 3, 2014 for developing the mega power plant within the
main interconnected system (MIS) region. (Bloomberg)
 Bank Muscat unveils biometric ID system – Bank Muscat has
introduced for the first time in the banking sector in Oman a
state-of-the-art biometric system compatible with the national
identification card (NID). The new system available across the
network of 137 branches is aimed at improving efficiency and
speed of transaction processing. The NID enables accurate data
capture during banking transactions, especially opening new
accounts. The new biometric identification system has been
launched in collaboration with the Royal Oman Police to provide
the latest solutions in national identity during banking services.
(Bloomberg)
 Batelco steps up efforts to get $212mn from Sivasankaran –
Batelco Group’s subsidiary, Batelco Millennium India Company
(BMIC), was successful in two applications before the English
High Court as part of its ongoing efforts to enforce a judgment
for the sum of $212mn against C. Sivasankaran and Siva Ltd.
BMIC’s first successful application was to extend indefinitely a
worldwide freezing order against the assets of C. Sivasankaran
and Siva Ltd. The court also ordered Mr. Sivasankaran to
provide a further affidavit to BMIC on an expedited basis
addressing apparent deficiencies with the statements of assets
he has provided pursuant to the freezing order. BMIC’s second
successful application was for an order against Mr. Siva to
provide comprehensive documentary disclosure about the
nature, value and location of his assets globally and then to
attend court to be cross-examined about those assets. (Bahrain
Bourse)
 AUB reports net profit of $262.5mn in 1H2014 – Ahli United
Bank (AUB) reported a net profit of $262.5mn for 1H2014 as
compared to core net profit of $190.1mn during 1H2013,
reflecting an increase of 38.1%. Bank’s 2Q2014 net profit was
$125.9mn, a 35.1% increase over 2Q2013 profit of $93.2mn.
The basic EPS for 1H2014 amounted to 4.4 US cents as against
3.3 US cents in 1H2013 (adjusted for the exceptional gain in
1H2013). Net interest income for 1H2014 increased by 13.7% to
$381.7mn from $335.8mn in 1H2013. AUB’s total assets as of
June 30, 2014 stood at $33.92bn as compared to $32.65bn as
of December 31, 2013. The loans & advances as of June 30,
2014 stood at $18.62bn, while customer deposits stood at
$23.11bn. (Bahrain Bourse)

7. Page 7 of 8

8. Contacts
Saugata Sarkar Abdullah Amin, CFA Shahan Keushgerian
Head of Research Senior Research Analyst Senior Research Analyst
Tel: (+974) 4476 6534 Tel: (+974) 4476 6569 Tel: (+974) 4476 6509
saugata.sarkar@qnbfs.com.qa abdullah.amin@qnbfs.com.qa shahan.keushgerian@qnbfs.com.qa
Sahbi Kasraoui Ahmed Al-Khoudary QNB Financial Services SPC
Manager – HNWI Head of Sales Trading – Institutional Contact Center: (+974) 4476 6666
Tel: (+974) 4476 6544 Tel: (+974) 4476 6548 PO Box 24025
sahbi.alkasraoui@qnbfs.com.qa ahmed.alkhoudary@qnbfs.com.qa Doha, Qatar
DISCLAIMER: This publication has been prepared by QNB Financial Services SPC (“QNBFS”) a wholly-owned subsidiary of Qatar National Bank (“QNB”). QNBFS is regulated by the Qatar
Financial Markets Authority and the Qatar Exchange; QNB 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. 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. While this publication has been prepared with the utmost degree of care by our analysts,
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. 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.
COPYRIGHT: No part of this document may be reproduced without the explicit written permission of QNBFS.
Page 8 of 8
Rebased Performance Daily Index Performance
Source: Bloomberg Source: Bloomberg
Source: Bloomberg Source: Bloomberg
80.0
90.0
100.0
110.0
120.0
130.0
140.0
150.0
160.0
170.0
180.0
190.0
200.0
210.0
Jul-10 Jul-11 Jul-12 Jul-13 Jul-14
QE Index S&P Pan Arab S&P GCC
0.3%
(0.5%)
0.1%
(0.1%) (0.0%)
(0.9%)
(2.4%)
(3.2%)
(2.4%)
(1.6%)
(0.8%)
0.0%
0.8%
SaudiArabia
Qatar
Kuwait
Bahrain
Oman
AbuDhabi
Dubai
Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D% WTD% YTD%
Gold/Ounce 1,305.85 1.3 1.0 8.3 DJ Industrial 16,443.34 0.1 (0.3) (0.8)
Silver/Ounce 20.04 1.3 (1.4) 2.9 S&P 500 1,920.24 0.0 (0.3) 3.9
Crude Oil (Brent)/Barrel (FM
Future)
104.59 (0.0) (0.2) (5.6) NASDAQ 100 4,355.05 0.1 0.1 4.3
Natural Gas (Henry
Hub)/MMBtu
3.89 1.2 3.9 (10.4) STOXX 600 329.19 (0.9) (0.8) 0.3
LPG Propane (Arab Gulf)/Ton 100.25 0.9 0.0 (20.8) DAX 9,130.04 (0.6) (0.9) (4.4)
LPG Butane (Arab Gulf)/Ton 118.50 0.9 0.6 (12.7) FTSE 100 6,636.16 (0.7) (0.6) (1.7)
Euro 1.34 0.1 (0.3) (2.6) CAC 40 4,207.14 (0.6) 0.1 (2.1)
Yen 102.10 (0.5) (0.5) (3.0) Nikkei 15,159.79 (1.0) (2.3) (6.9)
GBP 1.69 (0.2) 0.2 1.8 MSCI EM 1,056.77 (0.6) (0.3) 5.4
CHF 1.10 0.2 (0.2) (1.6) SHANGHAI SE Composite 2,217.47 (0.1) 1.5 4.8
AUD 0.94 0.5 0.5 4.9 HANG SENG 24,584.13 (0.3) 0.2 5.5
USD Index 81.44 0.1 0.2 1.8 BSE SENSEX 25,665.27 (0.9) 0.7 21.2
RUB 36.17 0.4 1.1 10.0 Bovespa 56,487.18 0.5 1.0 9.7
BRL 0.44 0.5 (0.6) 4.0 RTS 1,160.86 (2.6) (4.3) (19.5)
188.3
160.2
144.5