QE Intra-Day Movement

Market Indicators Value Traded (QR mn) Exch. Market Cap. (QR mn) Volume (mn) Number of Transactions Companies Traded Market Breadth Market Indices Total Return All Share Index Banks Industrials Transportation Real Estate Insurance Telecoms Consumer GCC Top Gainers## Investbank Allianz SF AlAbdullatif Boubyan Bank Com. Facilities Co GCC Top Losers Al Ahli Bank SPPC BBK Kingdom Holding Co. Jabal Omar Dev. Co.
##

3 Sep 12 1,143.2 466,278.8 52.8 3,495 39 13:20 1D% 0.1 0.1 0.1 0.1 (0.3) 1.2 0.2 (0.4) (0.3) Close# 1.77 98.50 29.70 620.00 320.00 Close
#

2 Sep 12 1,099.7 465,188.5 51.1 2,875 40 17:21 WTD% (0.2) (0.3) (0.2) (0.5) (0.1) 1.4 0.3 (1.2) (0.4) 1D% 9.3 5.3 4.2 3.3 3.2 YTD% 2.7 6.2 3.6 9.9 (8.8) 1.2 12.6 15.2 37.2 Vol. 000 200.0 1,616.4 1,292.4 200.9 205.8

%Chg. 4.0 0.2 3.4 21.6 (2.5) TTM P/E N/A 9.5 11.3 10.6 10.6 3.0 11.5 14.0 13.1 YTD% 19.6 259.5 11.7 5.1 23.1 YTD% 13.9 89.2 (9.2) 44.1 65.4

8,480 8,470 8,460 8,450 8,440 8,430 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00

Close 11,452.96 2,044.95 2,046.25 2,507.37 1,345.75 1,696.38 1,973.98 1,097.00 4,648.22 Exchange Abu Dhabi

Qatar Commentary The QE index rose 0.1% to close at 8,462.6. Gains were led by the Real Estate and Insurance indices, gaining 1.2% and 0.2% respectively. Top gainers were Ezdan Real Estate Co. and United Development Co., rising 3.0% and 2.3% respectively. Among the top losers, Al Ahli Bank fell 9.9%, while Medicare Group declined 1.9%. GCC Commentary Saudi Arabia: The TASI index declined 0.2% to close at 7,078.5. Losses were led by the Multi-Investment and Media & Publishing indices, both falling 1.7%. Amana Cooperative Insurance Co. declined 8.3%, while Saudi Printing & Packaging Co. fell 6.1%. Dubai: The DFM index gained 0.1% to close at 1,547.7. Gains were led by the Investment & Financial Services and Banking indices, increasing 0.5% and 0.2% respectively. Ajman Bank was up 6.3% and Dubai Investment rose 1.4%. Abu Dhabi: The ADX benchmark index decreased marginally to close at 2,556.8. Losses were led by the Real Estate and Banking indices, declining 0.5% and 0.2% respectively. Ras Al Khaimah Cement Co. fell 1.5%, while First Gulf Bank was down 1.2%. Kuwait: The KSE index gained 0.2% to close at 5,908.5. Gains were led by the Banking and Basic Material indices, rising 0.8% and 0.7% respectively. Al Safat Real Estate Co. surged 11.4%, while National Intern. Co. rose 8.7%. Oman: The MSM index increased 0.3% to close at 5,523.4. The Services & Insurance index rose 0.4%, while the Banking & Investment index gained 0.3%. Nat. Aluminum Products increased 6.1%, while Al Sharqia Inv. Hold. was up 3.7%. Qatar Exchange Top Gainers Ezdan Real Estate Co. United Development Co. Qatar Meat & Livestock Co. Aamal Co. Al Khaleej Takaful Group Qatar Exchange Top Vol. Trades Ezdan Real Estate Co. United Development Co. Qatari Investors Group National Leasing Islamic Holding Group Close* 20.60 19.20 67.60 16.38 47.25 Close* 20.60 19.20 25.75 49.25 37.75 1D% 3.0 2.3 2.1 2.0 1.7 1D% 3.0 2.3 (0.8) (0.5) (0.8) Vol. 000 46,307.9 1,412.3 357.3 119.1 141.6 Vol. 000 46,307.9 1,412.3 864.3 656.6 487.4 YTD% (7.2) 9.8 112.2 13.4 4.7 YTD% (7.2) 9.8 68.0 19.9 48.9

Saudi Arabia Saudi Arabia Kuwait Kuwait Exchange Qatar Saudi Arabia Bahrain Saudi Arabia Saudi Arabia

1D% Vol. 000 (9.9) (6.1) (6.0) (5.6) (2.9) 3.5 471.0 11.4 2,173.6 3,488.5

59.80 36.90 0.38 12.75 20.10

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 Al Ahli Bank Medicare Group Dlala Brokerage & Inv. Hold. Co. Qatar Industrial Manufacturing Co Mazaya Qatar Real Estate Dev. Qatar Exchange Top Val. Trades Ezdan Real Estate Co. National Leasing United Development Co. Qatar Meat & Livestock Co. Qatari Investors Group
Source: Bloomberg (* in QR)

Close* 59.80 40.30 43.00 55.00 11.63 Close* 20.60 49.25 19.20 67.60 25.75

1D% (9.9) (1.9) (1.1) (1.1) (0.9) 1D% 3.0 (0.5) 2.3 2.1 (0.8)

Vol. 000 3.5 29.1 20.6 4.8 263.0 Val. 000 926,213.6 32,425.6 26,913.2 24,108.2 22,207.9

YTD% 13.9 64.8 195.5 (3.5) 48.9 YTD% (7.2) 19.9 9.8 112.2 68.0

Regional Indices Qatar* Dubai Abu Dhabi Saudi Arabia Kuwait Oman Bahrain

Close 8,462.60 1,547.66 2,556.82 7,078.53 5,908.51 5,523.42 1,072.37

1D% 0.1 0.1 (0.0) (0.2) 0.2 0.3 (0.5)

WTD% (0.2) (0.0) (0.2) (0.8) 0.8 0.8 (1.3)

MTD% (0.2) (0.0) (0.2) (0.8) 0.8 0.8 (1.3)

YTD% (3.6) 14.4 6.4 10.3 1.6 (3.0) (6.2)

Exch. Val. Traded ($ mn) 61.31 17.17 16.16 1,677.40 46.14 12.29 1.22

Exchange Mkt. Cap. ($ mn) 128,040.2 48,855.3 76,689.0 374,090.3 100,705.0 19,177.0 19,529.6

P/E** 9.0 14.1 8.9 14.6 31.1 10.6 10.1

P/B** 1.7 0.7 1.0 1.9 1.1 1.5 0.8

Dividend Yield 4.4 4.1 4.8 3.3 3.4 4.5 4.6 Page 1 of 5

Source: Bloomberg, Qatar Exchange, Tadawul, Muscat Securities Exchange, Dubai Financial Market and Zawya (** TTM; * Value traded ($ mn) do not include special trades, if any)

Qatar Market Commentary

The QE index rose 0.1% to close at 8,462.6. The Real Estate and Insurance indices were the major contributors to the gains. The index rose on the back of buying support from non-Qatari shareholders despite selling pressure from Qatari shareholders. Ezdan Real Estate Co. and United Development Co. were the top gainers, increasing 3.0% and 2.3% respectively. Among the top losers, Al Ahli Bank fell 9.9%, while Medicare Group declined 1.9%. Volume of shares traded on Monday increased by 3.4% to 52.8mn from 51.1mn on Sunday. Further, as compared to the 30-day moving average of 5.1mn (excluding shares traded on special market), volume for the day was 937.3% higher as volumes continued to be boosted by special trades in Ezdan Real Estate Co. United Development Co. and Ezdan Real Estate Co. were the most active stocks, contributing 2.7% and 87.7% to the total volume.
Overall Activity Qatari Non-Qatari Buy %* 94.65% 5.36% Sell %* 94.93% 5.07% Net (QR) (3,323,079.35) 3,323,079.35

Source: Qatar Exchange (* as a % of traded value)

Earnings and Global Economic Data

Earnings Releases
Company Depa Limited (DEPA)
Source: Company data

Market Dubai

Currency AED

Revenue (mn) 1H12 825

% Change YoY 10.1%

Operating Profit (mn) 1H12

% Change YoY

Net Profit (mn) 1H12 (110.0)

% Change YoY NA

Global Economic Data

Date 09/03 09/03 09/03 09/03 09/03 09/03 09/03 09/03 Market EU France Germany UK UK Italy China China Source Markit Markit Markit Lloyds Bank Markit Markit Markit HSBC Indicator PMI Manufacturing PMI Manufacturing PMI Manufacturing Lloyds Business Barometer PMI Manufacturing PMI Manufacturing Non-manufacturing PMI HSBC Manufacturing PMI Period August August August August August August August August Actual 45.1 46 44.7 10 49.5 43.6 56.3 47.6 Consensus 45.3 46.2 45.1 46.1 45 Previous 44 43.4 43 -8 45.2 44.3 55.6 49.3

Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted)

News
Qatar Qatar to set up national reinsurance company Qatar is planning to set up a national reinsurance company, which will be majority-owned by the government with the participation of local insurance companies. (Bloomberg) Al Meera Consumer Goods Company postpones EGM Al Meera Consumer Goods Company has postponed the Extra Ordinary General Assembly Meeting due to lack of quorum. The meeting will be held after one month from September 02, 2012. (QE) Al Meera plans to set up branches in Egypt, Libya The Al Meera chain of consumer co-operative stores is planning to set up branches abroad, initially in Egypt and Libya. Al Meera stores Deputy Board Chairman Dr Saif Saeed al-Suweidi said the company is studying the feasibility of entering into the Egyptian and Libyan markets in co-operation with local developers and international retail traders. He added that the possibility of setting up branches in Jordan and Tunisia is also being explored. (Gulf-Times.com) Etihad Cargo announces freighter operations to Doha Etihad Cargo announced a new weekly freighter operation from Abu Dhabi to Doha, beginning from September 3. The new cargo service will operate every Monday using an Airbus A300600F freighter, with a capacity of 42 metric tons. Etihad Cargo operates freights to 86 international destinations. (AME Info) Doha Bank launches overseas money transfer services in Dubai Doha Bank has launched its new electronic overseas money transfer service in Dubai. (AME Info) Qatar to see surge in water storage capacity The water storage capacity in Qatar is set to be augmented by 79mn gallons within one year with the construction of 10 new reservoirs and pumping stations. The project comprises nine new 6mn gallon reservoirs at Umm Qarn and one 25mn gallon reservoir at Al Duhail for the Qatar General Electricity and Water Corporation (Kahramaa). (Gulf-Times.com) Ezdan Real Estate Companys shares traded on Special Market Ezdan Real Estate Companys 46mn shares were traded on the Special Market on September 3. (QE) International Moody's downgrades EU outlook to Negative Moody's Investors Service has changed its outlook on the EUs Aaa rating to Negative. It has warned of a possible downgrade for the bloc if it decides to cut the ratings on the member states with large contributions to the EU budget Germany, France, UK and Netherlands. The agency also changed the outlook of the European Atomic Energy Community (Euratom) to Negative, on
Page 2 of 5

whose behalf the European Commission is also empowered to borrow. (Reuters) Draghi: ECB can buy three-year bonds European Central Bank (ECB) President Mario Draghi told ECB would be comfortable buying bonds with maturities of up to about three years. Draghi said purchasing short-dated bonds does not constitute state financing. (Bloomberg) Reserve Bank of Australia holds key rate Reserve Bank of Australia Governor Glenn Stevens and his board left the overnight cash-rate target at 3.5%. Australia has maintained the highest benchmark interest rate among major developed economies as domestic demand weathers a global slowdown thats driving down the price of iron ore, the nations biggest commodity export. (Bloomberg) Chinas repo rate drops most in six months as PBOC injects cash Chinas benchmark money-market rate fell the most in six months as the Central Bank pumped money into the financial system, helping ease a cash shortage. The Peoples Bank of China conducted 55bn yuan of seven-day reverserepurchase operations today at 3.40%. It also injected 40bn yuan using 14-day contracts at 3.50%, down from 3.55% last time. (Bloomberg) UK keeps deficit plan as coalition eyes quicker investment UK Prime Minister David Cameron said his government will continue with its deficit-reduction plans amid calls from opposition lawmakers for a rethink as the economy struggles to exit a double-dip recession. (Bloomberg) Spain finds $126bn enough for its banks Spain's Economy Minister Luis de Guindos said Spain's ailing banks are not likely to tap the entire $125.7bn fund that is made available by the country's Eurozone partners. De Guindos also insisted that no additional austerity measures will be needed to meet the Spanish government's deficit-reduction target. Meanwhile, two indebted Spanish regions appealed for emergency funding to deal with a crippling liquidity crunch. Luis de Guindos said Spain is committed to meeting its EU-agreed deficit target of 6.3% of its Gross Domestic Product (GDP) in 2012 despite the discouraging data for the first seven months of the year. The country's central government deficit was 4.6% of GDP for the January to July period. (Reuters) Bankia to receive 4.5bn Spanish loan Spain's state-backed bank restructuring fund said it had decided to inject 4.5bn into rescued lender, Bankia. The governing board of the Fund for Orderly Bank Restructuring's agreed "to proceed with immediate effect to the injection of 4.5bn into the BFA-Bankia group to restore the group's capital levels. (Financial-Times.com) Regional M&A activity in Middle East up led by Qatar, Abu Dhabi Makram Azar, Global Vice-Chairman for investment banking at Barclays said Middle Eastern deal activity has been picking up after a subdued period. Cash-rich Gulf Arabs and governments are buying European assets. He added that there is a pick-up in M&A activity in the MENA region, led mainly by Qatar and Abu Dhabi. Barclays leads M&A advisory rankings in MENA with $4.7bn of deals this year, followed by Goldman Sachs at $3.7bn and Credit Suisse on $3.5bn. (GulfBase.com) Consumers in MENA region most brand loyal According to an Ernst and Young survey, consumers in the MENA region are among the most brand-loyal in the world. It said 29% of respondents in Saudi Arabia, 31% in the UAE, 33% in Bahrain, 34% in Jordan and 35% in Oman stated that brand influences

their purchasing decision against 25% of respondents in the UK and the US. (Gulf-Times.com) Saudi home loans surge amid new law impetus Saudi Arabian home lending grew at the fastest pace in at least four years in 2Q2012. Real estate financing jumped 83% YoY to SR48bn, the highest on record. In the UAE, home loans by banks grew less than 1% in the year to March, while credit to Qatars real estate industry rose 34% in 2Q2012. Saudi lenders have been anticipating approval of the nations first mortgage law, which happened on July 2 after more than a decade of debate. The law may give banks greater confidence to offer home loans to a wider spectrum of the population because it defines the rights of borrowers and banks. (Bloomberg) Saudi Arabias August PMI inches up The SABB HSBC Saudi Arabia Purchasing Managers' Index stood at 58.31 points in August against 58.09 in July. The seasonally adjusted index was well above the 50-point mark separating growth from contraction. New order growth increased in August to 68.66 points from 66.27 in July. Growth of overall input prices climbed to 56.64 points from 55.75, while output price growth fell sharply to 48.48 from 51.59, recording the first sub-50 level since data collection began three years ago. (Reuters) Saudi Credit & Saving Bank to start financing SMEs Saudi Credit & Saving Bank has begun receiving applications on its website from citizens to finance Small and Medium Enterprises (SMEs). The bank will finance projects with costs ranging from SR300,000 to SR8mn. (GulfBase.com) Zain signs agreement with Vodafone to provide commercial services and consulting Mobile Telecommunication Company (Zain) has entered into a commercial cooperation agreement with Vodafone Sales & Services Limited (Vodafone). Through this agreement Zain KSA will get an access to in-depth knowledge transfer on a range of operational issues, along with branding and procurement support from Vodafone. (Tadawul) Gulf Union Cooperative Insurance Company obtains SAMA approval to sell and market insurance product The Gulf Union Cooperative Insurance Company has obtained the Saudi Arabian Monetary Agencys temporary approval to sell and market one insurance product. (Tadawul) Walaa receives SAMA approval to open three new branches Saudi United Cooperative Insurance (Walaa) has received a letter of approval from the Saudi Arabian Monetary Agency (SAMA) to open three new branches at Macca, Jubail and AlAhsaa. (Tadawul) UAE emerges as top financial hub in GCC According to a survey conducted by the Middle East Investor Relations Society (MEIRS), the UAE has emerged as the leading financial center in the GCC region. The financial hubs in Abu Dhabi and Dubai scored 35.5 out of a possible 50 points. With a score of 34 points, Saudi Arabia stood second in the ratings, narrowly ahead of Qatar which scored 32.5. (Gulf-Times.com) DEWA increases electricity production, networks demand levels in 2Q2012 Dubai Electricity and Water Authority (DEWA) announced an increase in the production and networks demand levels of electricity by 3% and 3.8% respectively during 2Q2012 compared to the same period of last year. The electricity production has reached 9,605 GW/hour. Meanwhile the electricity peak demand reached a total of 6,165 MW compared to 5,941 MW in 2011. (AME Info) HSBC, BNP Paribas extend profit-sharing loan to Drydocks HSBC Holdings and BNP Paribas are among the banks extending a $1.5bn profit participating loan to Dubai-based Drydocks World as it restructures debt. The facility which is part
Page 3 of 5

of $2.25bn existing 15-year loan will pay Drydocks Worlds creditors profit or cash from asset sales. Dubai World-controlled Drydocks also agreed on a new $800mn five-year term loan with a market interest rate. (Bloomberg) Dunia Finance reports AED29.1mn net profits for 1H2012 UAE-based Government-owned Dunia Finance has reported net profits of AED29.1mn for 1H2012 as compared to a loss of AED0.4mn in 1H2011. Net revenues increased by 44% YoY to AED131.1mn. Deposit balances were up 84% YoY to AED313mn, while customer loans and receivables surged by 45.2% YoY to AED662mn. (AME Info) Etihad Rail said to identify banks for $1.3bn loan this month Abu Dhabi-based Etihad Rail, which is building the UAEs first rail network, will take a decision this month on a $1.3bn loan to fund the first phase of the project. The loan will have a maturity of five or ten years and payments will be backed by Abu Dhabi National Oil Company, the major user of the railway. (Bloomberg) Etihad Airways not interested in Virgins majority shareholding Etihad Airways President and CEO James Hogan said the company is not interested in becoming a majority shareholder or taking control of Virgin Australia. Etihad Airways confirmed that its stake in Virgin Australia Holdings has now reached the 10% threshold. (GulfBase.com) Dubai Properties Group restarts work on Mudon Development Dubai Properties Group (DPG), a member of Dubai Holding, has announced plans to complete 348 villas and townhouses in the Mudon Development, located in Dubai's growing DUBAILAND district. (AME Info) The National Bank of Abu Dhabi to foray into new markets The National Bank of Abu Dhabi (NBAD), which currently operates in 13 countries on four continents, is on track to make forays into Lebanon, Iraq, South Sudan and India in the near future, while other markets like Morocco, Tunisia and Algeria are also under study. (GulfBase.com) Zain Iraqs bank funds seized for unpaid fine Iraqs Communications and Media Commission said Zain Iraq, a unit of Kuwait-based Mobile Telecommunications Co. (NMTC), has had its funds seized in all Iraqi banks until it pays a $262mn fine for selling 5mn SIM cards without permission. (Bloomberg) Nine international companies to bid for Omans OMR60mn rail design project Nine international groups plan to bid for a contract that could be worth OMR60mn to design and consult on the construction of Oman's first major railway. Oman plans to build a 1,000 kilometer railway at an estimated cost of around OMR5bn, to be completed by 2018. (Reuters) Central Bank of Bahrain Treasury bills oversubscribed The Central Bank of Bahrain (CBB) announced that a BHD35mn issue of Government Treasury Bills has been oversubscribed by 123%. The bills have a maturity of 91 days and a weighted average interest rate of 1.20% as compared to 1.26% for the previous issue on August 22, 2012. (AME Info)

Page 4 of 5

Rebased Performance

Daily Index Performance

140.0 130.0 120.0 110.0 100.0 90.0

80.0
Jan-10 May-10 Sep-10 Jan-11 May-11 Sep-11 Jan-12 May-12

0.6%
0.3%
121.6 108.2 101.7 106.0 98.2

0.3% 0.0%

0.2%
0.1% (0.0%)

0.1%

(0.3%)

(0.2%)
(0.5%)

Saudi Arabia

(0.6%)

Kuwait

Bahrain

Abu Dhabi

QE Index

S&P Pan Arab

S&P GCC

Source: Bloomberg

Source: Bloomberg

Asset/Currency Performance Gold Silver Crude Oil (Brent) Euro Yen GBP CHF AUD USD Index RUB BRL
Source: Bloomberg

Close ($) 1,692.50 32.10 116.17 1.26 78.26 1.59 1.05 1.02 81.21 32.28 0.49

1D% 0.0 1.1 0.3 0.1 (0.2) 0.1 0.1 (0.7) 0.0 (0.1) (0.2)

WTD% 0.0 1.1 0.3 0.1 (0.2) 0.1 0.1 (0.7) 0.0 (0.1) (0.2)

YTD% 8.2 15.3 6.9 (2.8) 1.8 2.2 (1.5) 0.4 1.3 0.4 (8.2)

Global Indices Performance DJ Industrial * S&P 500 * NASDAQ 100 * DAX FTSE 100 CAC 40 Nikkei Shanghai BSE Sensex Bovespa RTS

Close 13,090.84 1,406.58 3,066.97 7,014.83 5,758.41 3,453.71 8,783.89 2,059.15 17,384.40 57,281.45 1,406.04

Oman

1D% 0.6 0.8 1.2 (0.6) 0.6 (0.3) 0.4 1.2

WTD% 0.6 0.8 1.2 (0.6) 0.6 (0.3) 0.4 1.2

Dubai
YTD% 7.1 11.8 17.7 18.9 3.3 9.3 3.9 (6.4) 12.5 0.9 1.7

Source: Bloomberg (* US markets were closed on Aug. 3)

Contacts

Ahmed M. Shehada
Head of Trading Tel: (+974) 4476 6535 ahmed.shehada@qnbfs.com.qa

Keith Whitney
Head of Sales Tel: (+974) 4476 6533 keith.whitney@qnbfs.com.qa

Saugata Sarkar
Head of Research Tel: (+974) 4476 6534 saugata.sarkar@qnbfs.com.qa

Qatar

Sahbi Kasraoui
Manager - HNWI Tel: (+974) 4476 6544 sahbi.alkasraoui@qnbfs.com.qa

QNB Financial Services SPC

Contact Center: (+974) 4476 6666 PO Box 24025 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 5 of 5