MENA-1 MONDAY MORNING ROUND-UP

UAE
India imposes INR70 billion fine on Etisalat DB TDICs debts not backed by the Government of Abu Dhabi

Kuwait
Information Minister Sami Al-Nisf leaves due to health reasons Aviation Leases 9M2011 profits rise four-fold due to one-off gains

Qatar
CBQ receives approval for its Euro Medium-Term Note Prospectus from the London Stock Exchange Kahramaa sets the end of July as deadline for Qatar desalination scheme QE expects to launch Direct Market Access Service this summer National Leasing Companys net income rises 2% Y-o-Y to QAR54.1 million in 2Q2011 ictQatar unveils five-year plan Salams board approves 22 million Bounian share purchase

Agenda
Qatar Thu 14 July >> Vodafone Qatar (VFQ) 2Q2011 results Sun 17 July >> Qatar Insurance Company 2Q2011 results Mon 18 July >> Al Khalij Commercial Bank (Al Khaliji) 2Q2011 results Mon 18 July >> Ahli Bank 2Q2011 results Tue 19 July >> Nakilat 2Q2011 results Tue 19 July >> Doha Bank 2Q2011 results Wed 20 July >> Qatar Islamic Bank (QIB) 2Q2011 results Wed 20 July >> Mazaya Qatar Real Estate Development Company 2Q2011 results Thu 21 July >> Gulf Warehousing 2Q2011 results Thu 21 July >> UDC 2Q2011 results Sun 24 July >> Ahli Bank press conference Sun 24 July >> Qatar Navigation 2Q2011 results Sun 24 July >> Qatar General Insurance & Reinsurance Company 2Q2011 results Sun 24 July >> Qatar International Islamic Bank (QIIB) 2Q2011 results Sun 24 July >> Islamic Holding Company BOD meeting Mon 25 July >> Nakilat press conference Tue 26 July >> Al Khalij Commercial Bank (Al Khaliji) press conference Wed 27 July >> Dlala Holding Company 2Q2011 results Wed 27 July >> Commercial Bank of Qatar (CBQ) 2Q2011 results Thu 28 July >> Qatar National Bank 1H2011 press conference Sun 31 July >> Qatar Oman Investment Company 2Q2011 results Sun 31 July >> Medicare Group 2Q2011 results Mon 1 August >> The National Leasing Holding Company 1H2011 press conference Tue 2 August >> Masraf Al Rayan 2Q2011 results Tue 9 August >> Masraf Al Rayan press conference Sun 14 August >> Qtel 2Q2011 results Sun 14 August >> Doha Insurance 2Q2011 results

UAE News
India imposes INR70 billion fine on Etisalat DB

Indias Enforcement Directorate has imposed a INR70 billion fine on Etisalat DB Telecom India, a venture between DB Realty and Etisalat (ETEL.AD), for foreign exchange violations related to a probe into the sale of wireless permits, the Press Trust of India (PTI) reported, citing officials in the agency. Etisalat DB has been given 30 days to explain why the fine shouldnt be levied on it, PTI added. (Bloomberg) Etisalat: AED10.85, Rating: Neutral, FV: AED12.54, MCap: USD23,374 million, ETISALAT UH / ETEL.AD TDICs debts not backed by the Government of Abu Dhabi Tourism Development and Investment Co. (TDIC), the Government of Abu Dhabi-owned real estate and resort developer, announced that its planned USD3 billion notes programme will not be guaranteed by the Government of Abu Dhabi, according to a recently circulated bond prospectus. TDICs commercial debt amounted to AED10.5 billion (USD2.9 billion) at the end of December 2010. While the Government of Abu Dhabi announced in March that it backed TDIC fully and conditionally, it does not guarantee TDICs debt, including bonds. According to the prospectus, the government is not guaranteeing any of the issuers or TDICs obligations in respect of the notes and holders of the notes do not benefit from any legally enforceable claim against the government. The bond prospectus released also revealed a 28% reduction in its budgeted expenditure to AED13.4 billion (USD3.65 billion) for 2011 through projects being put on hold or scaled back. None of the projects being hibernated are under construction, according to the prospectus. TDIC, which is developing branches of the Guggenheim and Louvre museums in Abu Dhabi, generated a loss of AED1.2 billion in 2010 versus a loss of AED551 million for 2009, financial statements in the prospectus showed. (Arabian Business, Zawya Dow Jones)

Kuwait News
Information Minister Sami Al-Nisf leaves due to health reasons According to Al Al-Rashed, Minister of State for Cabinet Affairs, the Minister of Information and Communications Sami Al-Nisf has resigned. Salem Al-Uthayna, Minister of Electricity and Water, will replace Al-Nisf, according to AlRashed. Al-Rashed indicated that the resignation was due to Al-Nisfs emergency health concerns. (Kuwait Times) Aviation Leases 9M2011 profits rise four-fold due to one-off gains Aviation Lease and Finance Companys (ALAFCO) [ALAFCO.KW] 9M2011 earnings increased 4x to KWD28.8 million (EPS: KWD0.037) from KWD7.8 million during the same period last year. The jump in earnings was due to a one-time gain of KWD20 million due to the modification of some agreements. ALAFCO delivered two Airbus A320200 aircrafts to Saudi Airlines, three Boeing B737 aircrafts to Ethiopian Airlines, and two Boeing B737-800 aircrafts to Okay Airways in China during the nine-month period. Financing for the acquisition of the planes amounted to USD266 million, which was obtained from local and international banks. (Al Watan)

Qatar News
CBQ receives approval for its Euro Medium-Term Note Prospectus from the London Stock Exchange The Commercial Bank of Qatar (CBQ) [COMB.QA] announced that it has filed and received approval for its base prospectus dated 7 July 2011 related to the banks and its subsidiarys, CBQ Finance Limited, USD5 billion Euro Medium-Term Note Programme (EMTN Programme) guaranteed by (in case of the notes issued by CBQ Finance Limited) the commercial bank with the United Kingdom Listing Authority, the bank said in a statement to the Qatar Exchange. The listing hearing for admission to listing with the UKLA and the trading hearing for admission to trading on the London Stock Exchange [plc] is expected to take place on Monday, 11 July 2011, with admission in each case expected to take effect at 8 am London Time on Tuesday, 12 July 2011, the statement explained. (Qatar Exchange) Commercial Bank of Qatar: QAR73.00, Rating: Buy, FV: QAR100.30, MCap: USD4,962 million, CBQK QD / COMB.QA Kahramaa sets the end of July as deadline for Qatar desalination scheme Qatar General Electricity & Water Corporation (Kahramaa) announced 30 July 2011 as the deadline for the submission of proposals related to the addition of 70-90 million gallons per day of new desalination capacity, Meed reported. Qatar Electricity & Water Company (QEWC) [QEWC.QA] and the states four private power and desalination project companies (Ras Laffan Power Company, Qatar Power Company, Ras Girtas Power Company and Mesaieed Power Company) have been invited to respond to the request for proposals. Doha is not expected to need any new power capacity addition until 2015-2016. (Meed) QEWC: QAR141.20, Rating: Buy, FV: QAR183.20, MCap: USD3,879 million, QEWC QD / QEWC.QA

QE expects to launch Direct Market Access Service this summer Qatar Exchange (QE) expects to launch the Direct Market Access (DMA) system, also known as sponsored access service, later this summer, Qatar News Agency quoted QEs Chief Operating Officer (COO), Olivier Gueris, as saying. This system offers international and local investors direct access to the market without going through the local brokers Order Management System. They would need to be sponsored by a local member of the exchange for direct access to the market, which guarantees higher confidentiality of their orders and much lower system latency, Gueris explained. We have taken a dedicated line between Doha and London, which connects to the worldwide network of the New York Stock Exchange, potentially providing Qatar access to thousands of brokerage houses and buy sides. We are currently finalising the details with the regulator (Qatar Financial Market Authority) ahead of the launch, he added. (Qatar News Agency) National Leasing Companys net income rises 2% Y-o-Y to QAR54.1 million in 2Q2011 National Leasing Company (NLCS.QA) reported net income of QAR54.1 million in 2Q2011 compared to QAR53.1 million in the corresponding period last year, the company said in a statement to the Qatar Exchange. EPS stood at QAR1.64 in 2Q2011 compared to QAR1.61 in 2Q2010. (Qatar Exchange) ictQatar unveils five-year plan Qatars five-year ictQatar (information and communication technology regulator) plan aims at doubling the sectors contribution to the countrys GDP to about QAR11 billion and increase the sectors workforce to 40,000 by 2015. The plan also targets having high-speed broadband access for 95% of Qatars homes and businesses by 2015. (The Gulf Times) Salams board approves 22 million Bounian share purchase Salam International Limiteds (SIIL) (SALM.QA) board of directors (BOD) has approved, in a meeting on 10 July 2011, the offer to purchase 22 million additional shares in Salam Bounian at QAR8.50 per share from shareholders wishing to sell their shares. The approval is based on shareholders unanimous approval on 21 October 2007 to increase SIILs stake in Bounian up to 50% of the paid-up capital. SIIL had announced its interest to acquire Salam Bounian on 20 December 2009 and announced later on 20 October 2010 that it has postponed the acquisition. (The Peninsula)
[Note EFG Hermes is not responsible for the accuracy of news items taken from other media.] _________________________________________________________________________________________________________________ Our investment recommendations take into account both risk and expected return. We base our fair value estimate on a fundamental analysis of the companys future prospects, after having taken perceived risk into consideration. We have conducted extensive research to arrive at our investment recommendations and fair value estimates for the company or companies mentioned in this report. Although the information in this report has been obtained from sources that EFG Hermes believes to be reliable, we do not guarantee its accuracy, and such information may be condensed or incomplete. Readers should understand that financial projections, fair value estimates and statements regarding future prospects may not be realized. All opinions and estimates included in this report constitute our judgment as of this date and are subject to change without notice. This research report is prepared for general circulation and is intended for general information purposes only. It is not intended as an offer or solicitation with respect to the purchase or sale of any security. It is not tailored to the specific investment objectives, financial situation or needs of any specific person that may receive this report. We strongly advise potential investors to seek financial guidance when determining whether an investment is appropriate to their needs. No part of this document may be reproduced without the written permission of EFG Hermes. EFG Hermes (main office), Building No. B129, Phase 3, Smart Village km 28 Cairo Alexandria Road, Egypt tel.: +20 2 3535 6140 | Fax: +20 2 3537 0939 EFG Hermes (UAE office), Level 6, The Gate, West Wing, DIFC Dubai - UAE tel +971 4 363 4000 | fax +971 4 362 1170 EFG Hermes (Saudi office), Kingdom Tower, 54th floor, Riyadh - Saudi Arabia tel +9661 211 0046 | fax +9661 211 0049 EFG Hermes (Qatar office) Al-Fardan Towers, Office Tower, 7th floor, West Bay, Doha - Qatar tel +974 409 3888 | fax +974 421 3499 Website: www.efg-hermes.com Bloomberg: EFGH | Reuters pages: EFGS .HRMS .EFGI .HFISMCAP .HFIDOM