The QE index rose 0.3% led by gains in the banking and insurance sectors, with Al Ahli Bank and Mazaya Qatar Real Estate Dev. as top gainers. Regional markets were mostly higher with Abu Dhabi and Dubai rising over 1% and 0.8% respectively. Volume on the Qatar Exchange increased 46.6% compared to the previous day.

1. QE Intra-Day Movement
Market Indicators
11,120
11,100
11,080
11,060
11,040
Market Indices
11,020
11,000
9:30
16 Jan 14
774.3
586,346.0
16.8
6,688
42
24:17
Value Traded (QR mn)
Exch. Market Cap. (QR mn)
Volume (mn)
Number of Transactions
Companies Traded
Market Breadth
10:00
10:30
11:00
11:30
12:00
12:30
13:00
Qatar Commentary
The QE index rose 0.3% to close at 11,106.1. Gains were led by the Banking &
Financial Services and Insurance indices, gaining 1.1% and 0.6% respectively.
Top gainers were Al Ahli Bank and Mazaya Qatar Real Estate Dev., rising
9.5% and 5.0% respectively. Among the top losers, Islamic Holding Group fell
7.8%, while Qatari Investors Group declined 4.6%.
15 Jan 14
588.5
583,296.5
11.5
5,891
40
21:11
%Chg.
31.6
0.5
46.6
13.5
5.0
–
Close
Total Return
All Share Index
Banks
Industrials
Transportation
Real Estate
Insurance
Telecoms
Consumer
Al Rayan Islamic Index
1D%
WTD%
YTD%
TTM P/E
15,868.12
2,748.07
2,627.36
3,701.13
1,960.67
2,049.15
2,490.16
1,528.00
6,086.31
3,226.45
0.3
0.5
1.1
(0.2)
(0.8)
0.3
0.6
0.4
0.3
(0.1)
2.1
2.2
2.9
2.4
0.5
2.0
2.4
0.5
0.1
1.4
7.0
6.2
7.5
5.7
5.5
4.9
6.6
5.1
2.3
6.3
N/A
13.8
13.6
13.4
13.3
14.0
10.2
20.8
23.1
17.0
GCC Commentary
GCC Top Gainers##
Exchange
Close#
1D%
Saudi Arabia: The TASI index rose 0.2% to close at 8,761.1. Gains were led
by the Media & Publishing and Agriculture & Food Industries indices, rising
4.0% and 2.3% respectively. Tihama Advertising & Public Relations Co.
gained 10.0%, while Alkhaleej Training & Education Co. was up 9.8%.
Tihama
Saudi Arabia
127.00
10.0
920.9
15.7
Al Ahli Bank
Qatar
63.40
9.5
398.8
15.3
Aldar Properties
Abu Dhabi
3.25
8.3
180,206.2
17.8
Nat. Marine Dredging
Abu Dhabi
9.20
7.0
3.2
7.0
Arabtec Holding Co.
Dubai
3.41
4.9
116,892.6
18.8
Dubai: The DFM index gained 0.8% to close at 3,609.2. The Real Estate &
Construction index rose 1.6%, while the Services index was up 0.8%. Al
Madina Investment surged 14.8%, while Agility gained 13.5%.
Abu Dhabi: The ADX benchmark index rose 1.3% to close at 4,521.5. The
Real Estate index gained 7.3%, while the Investment & Financial Services
index was up 4.1%. Fujairah Cement Industries surged 15.0%, while Arkan
Building Materials Co. gained 9.1%.
##
#
1D% Vol. ‘000
YTD%
GCC Top Losers
Exchange
Qatari Investors Group
Qatar
47.65
(4.6)
869.9
9.0
Kuwait: The KSE index was closed on January 16, 2014.
Saudi Kayan
Saudi Arabia
15.15
(3.2)
9,880.4
(3.5)
Oman: The MSM index declined 0.2% to close at 7,140.2. Losses were led by
the Financial and Industrial indices, declining 0.2% each. Al Anwar Holding fell
2.6%, while Sharqiyah Desalination was down 2.5%.
Dallah Healthcare
Saudi Arabia
69.00
(3.2)
170.6
(1.1)
Atheeb Telecom
Saudi Arabia
15.35
(3.2)
31,111.0
6.6
Rabigh Ref. & Petroch.
Saudi Arabia
30.60
(2.5)
3,143.3
26.2
Bahrain: The BHB index fell 0.3% to close at 1,268.5. The Industrial index
declined 0.9%, while the Services index was down 0.5%. Bahrain Commercial
Facilities fell 4.4%, while Bahrain Telecommunications was down 1.3%.
Close
Vol. ‘000
YTD%
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)
Al Ahli Bank
Mazaya Qatar Real Estate Dev.
Close*
1D%
Vol. ‘000
YTD%
Close*
1D%
Vol. ‘000
YTD%
63.40
Qatar Exchange Top Gainers
9.5
398.8
15.3
Islamic Holding Group
47.00
(7.8)
137.1
2.2
Qatari Investors Group
47.65
(4.6)
891.3
9.0
12.48
5.0
4,663.2
11.6
Qatar Exchange Top Losers
Gulf Warehousing Co.
1.5
349.8
4.3
Zad Holding Co.
69.70
(3.1)
0.3
0.3
1.1
837.4
4.7
Dlala Brok. & Inv. Holding Co.
22.87
(2.4)
39.5
3.5
41.55
QNB Group
52.80
180.00
Qatar Industrial Manufacturing Co.
1.1
12.0
0.1
Widam Food Co.
52.10
(1.9)
110.9
0.8
Close*
1D%
Vol. ‘000
YTD%
Qatar Exchange Top Val. Trades
Close*
1D%
Val. ‘000
YTD%
Mazaya Qatar Real Estate Dev.
12.48
5.0
4,663.2
11.6
QNB Group
180.00
1.1
149,908.1
4.7
Masraf Al Rayan
35.15
1.0
1,680.8
12.3
Commercial Bank of Qatar
75.00
0.8
90,624.5
5.9
Commercial Bank of Qatar
75.00
0.8
1,210.4
5.9
Masraf Al Rayan
35.15
1.0
59,011.2
12.3
47.65
(4.6)
891.3
9.0
Mazaya Qatar Real Estate Dev.
12.48
5.0
57,391.2
11.6
180.00
1.1
837.4
4.7
Qatari Investors Group
47.65
(4.6)
42,371.8
9.0
Qatar Exchange Top Vol. Trades
Qatari Investors Group
QNB Group
Source: Bloomberg (* in QR)
Source: Bloomberg (* in QR)
Regional Indices
Qatar*
Dubai
Abu Dhabi
Saudi Arabia
Kuwait#
Oman
Bahrain
Close
1D%
WTD%
MTD%
YTD%
11,106.13
3,609.18
4,521.47
8,761.06
7,665.14
7,140.24
1,268.52
0.3
0.8
1.3
0.2
N/A
(0.2)
(0.3)
2.1
3.0
2.3
1.0
(0.0)
(0.2)
0.4
7.0
7.1
5.4
2.6
1.5
4.5
1.6
7.0
7.1
5.4
2.6
1.5
4.5
1.6
Exch. Val. Traded
($ mn)
316.36
406.61
423.10
1,671.05
N/A
31.39
1.63
Exchange Mkt.
Cap. ($ mn)
161,010.6
73,859.4
128,151.9
482,226.5
110,000.2
25,448.8
50,654.8
P/E**
P/B**
14.1
21.3
12.6
17.9
17.0
11.2
8.3
1.9
1.4
1.6
2.2
1.2
1.7
0.9
Dividend
Yield
4.1
2.5
4.0
3.4
3.7
3.6
3.8
#
Source: Bloomberg, Qatar Exchange, Tadawul, Muscat Securities Exchange, Dubai Financial Market and Zawya (** TTM; * Value traded ($ mn) do not include special trades, if any) ( Data as of Jan. 15, 2014)
Page 1 of 7

2. Qatar Market Commentary
 The QE index rose 0.3% to close at 11,106.1. The Banking &
Financial Services and Insurance indices led the gains. The
index rose on the back of buying support from non-Qatari
shareholders despite selling pressure from Qatari shareholders.
Overall Activity
Sell %*
Net (QR)
Qatari
50.83%
77.51%
(206,589,046.08)
Non-Qatari
 Al Ahli Bank and Mazaya Qatar Real Estate Dev. were the top
gainers, rising 9.5% and 5.0% respectively. Among the top
losers, Islamic Holding Group fell 7.8%, while Qatari Investors
Group declined 4.6%.
Buy %*
49.17%
22.50%
206,589,046.08
Source: Qatar Exchange (* as a % of traded value)
 Volume of shares traded on Thursday rose by 46.6% to 16.8mn
from 11.5mn on Wednesday. Further, as compared to the 30-day
moving average of 11.3mn, volume for the day was 48.3%
higher. Mazaya Qatar Real Estate Dev. and Masraf Al Rayan
were the most active stocks, contributing 27.8% and 10.0% to
the total volume respectively.
Ratings, Earnings and Global Economic Data
Ratings Updates
Company
Agency
Market
A.M.
Best
Qatar
FSR/ ICR
Fitch
Kuwait
LT IDR/ VR
Qatar General
Insurance &
Reinsurance Co.
(QGRI)
National Bank of
Kuwait (NBK)
Type*
Old Rating
New Rating
Rating Change
Outlook
Outlook Change
B++/bbb+
A-/a-

Stable

AA-/a
AA-/a
–
Stable
–
Source: News reports (* LT – Long Term, ST – Short Term, FSR- Financial Strength Rating, FCR – Foreign Credit Rating, IDR – Issuer Default Rating, ICR – Issuer Credit Rating)
Earnings Releases
Revenue
(mn) 4Q2013
% Change
YoY
Operating Profit
(mn) 4Q2013
% Change
YoY
Net Profit (mn)
4Q2013
% Change
YoY
SR
–
–
29.3
12.3%
26.4
11.4%
Saudi Arabia
SR
–
–
1.3
107.8%
1.3
485.0%
Saudi Arabia
SR
–
–
131.0
73.3%
276.1
278.2%
Saudi Arabia
SR
–
–
87.6
96.0%
178.2
176.3%
Saudi Arabia
SR
–
–
-0.8
38.0%
-0.7
28.0%
Saudi Arabia
SR
–
–
-9.1
9.4%
-27.7
NA
Saudi Arabia
SR
–
–
1.5
25.0%
1.0
61.0%
Saudi Arabia
SR
–
–
-1.2
NA
12.8
55.3%
Saudi Arabia
SR
1,398.1
-10.4%
–
–
13.5
3.5%
Saudi Arabia
SR
–
–
-742.0
19.3%
-661.0
-39.4%
Saudi Arabia
SR
30.1
-55.7%
–
–
0.4
-79.2%
Saudi Arabia
SR
–
–
-6.1
344.2%
-6.1
344.2%
Saudi Arabia
SR
–
–
46.0
-0.2%
38.8
4.3%
Saudi Arabia
SR
–
–
142.7
21.6%
133.3
20.7%
Dubai
AED
–
–
549.3
-8.9%
103.9
42.6%
Oman
OMR
–
–
–
–
4.2
207.6%
Company
Market
Aldrees Petroleum &
Transport Services Co.
(Aldrees)
Food Products Co. (wafrah)
The National Shipping Co.
(Bahri)
Sahara Petrochemical Co.
(Sahara)
Bishah Agriculture
Development Co. (Bisha
Agri)
Jazan Development Co.
(JAZADCO)
Saudi Industrial Export Co.
(SIECO)
Saudi Automotive Services
Co. (SASCO)
The Company for
Cooperative Insurance
(Tawuniya)
Saudi Electricity Co. (SEC)
Al Sagr Co-operative
Insurance Co. (Al Sagr Ins)
Al-Baha Investment &
Development Co. (Al-baha)
Bawan Company (Bawan)
Fawaz Abdulaziz AlHokair
Company (Fawaz Al Hokair)
Tamweel
Currency
Saudi Arabia
Gulf Investment Services
Source: Company data, DFM, ADX, MSM
Global Economic Data
Date
Market
Source
Indicator
Period
Actual
Consensus
Previous
01/16
US
Bureau of Labor Stat.
CPI MoM
December
0.30%
0.30%
0.00%
01/16
US
Bureau of Labor Stat.
CPI YoY
December
1.50%
1.50%
1.20%
01/16
US
Bloomberg
Bloomberg Economic Expectations
January
-5
–
-11
01/16
US
Bloomberg
Bloomberg Consumer Comfort
12-January
-31
–
-28.4
01/17
US
US Census Bureau
Building Permits
December
986K
1,014K
1,017K
Page 2 of 7

3. 01/17
US
US Census Bureau
Building Permits MoM
December
-3.00%
-0.30%
-2.10%
01/17
US
Federal Reserve
Industrial Production MoM
December
0.30%
0.30%
1.00%
01/17
US
Federal Reserve
Manufacturing (SIC) Production
December
0.40%
0.30%
0.60%
01/16
EU
Eurostat
CPI MoM
December
0.30%
0.30%
-0.10%
01/16
EU
Eurostat
CPI YoY
December
0.80%
0.80%
0.90%
01/17
EU
Eurostat
Construction Output MoM
November
-0.60%
–
-1.10%
01/17
EU
Eurostat
Construction Output YoY
November
-1.70%
–
-2.30%
01/16
China
NSB
Foreign Direct Investment YoY
December
3.30%
2.50%
2.40%
01/16
Japan
Ministry of Eco. Trade
Tertiary Industry Index MoM
November
0.60%
0.70%
-0.90%
01/16
Japan
Bank of Japan
Domestic CGPI MoM
December
0.30%
0.30%
0.00%
01/16
Japan
Bank of Japan
Domestic CGPI YoY
December
2.50%
2.60%
2.60%
01/17
Japan
ESRI
Consumer Confidence Index
December
41.3
43.0
42.5
Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted)
News
Qatar
 QCB issues government bonds, sukuk worth QR24bn – The
Qatar Central Bank (QCB) has issued government bonds and
sukuk for durations of 3 years and 5 years. The total amount of
issuance is worth QR24bn. (QCB)
 NLCS’ net profit declines 55.5% QoQ in 4Q2013 – Alijarah
Holding Company (NLCS) reported a net profit of QR3.3mn in
4Q2013, reflecting a decrease of 55.5% QoQ. Net profit for 2013
amounted to QR87.2mn, falling 54.1% YoY. Total income rose
by 15.6% QoQ to QR52.9mn in 4Q2013, while it was down by
54.8% YoY to QR284.1mn in 2013. EPS amounted to QR1.76 in
2013 as compared to QR4.21 in 2012. Meanwhile, NLCS’ board
of directors has proposed dividend distribution of QR1.5 per
share (15% of the nominal value) to its shareholders. The
company’s AGM has been scheduled on February 12, 2014,
which will be adjourned to March 17, 2014 in the event of
incomplete quorum. (QE)
 QATI reports QR753mn profit for 2013 – Qatar Insurance
Company (QATI) has posted a net profit of QR753mn for the
full-year of 2013 as compared to QR610mn in 2012. QATI’s
board of directors has recommended a cash dividend of QR2.5
a share and a special bonus share of 25%. (Gulf-Times.com)
 MARK’s subsidiary completes IBB acquisition – Masraf Al
Rayan (MARK) announced that its wholly-owned subsidiary Al
Rayan (UK) Ltd had completed its acquisition of the Islamic
Bank of Britain (IBB). IBB’s acquisition by Al Rayan UK follows
a cash offer made on November 28, 2013, for which MARK has
received valid shareholder acceptances exceeding 95% along
with the approval of the Prudential Regulatory Authority. (QE)
 Fitch: Regional growth, debut issues to drive sukuk
rebound in 2014 – According to Fitch Ratings, Qatar's imminent
sukuk issuance worth roughly $3bn will kick start what may be a
record year for the Shari’ah-compliant debt market. Regional
growth and robust government spending are likely to be partially
funded through sukuk programs in established GCC sukuk
markets. At the same time, strong investor demand is likely to
attract debut issues from Islamic and non-Islamic states in 2014.
The push by the region’s sovereigns to become an Islamic
finance hub is also likely to spur sukuk issuance. Fitch has
estimated that issuance dropped around 12% to $120bn in 2013
partly due to market jitters over the US bond purchase tapering.
However, demand remains strong and Fitch expect this decline
to be a blip in the long-term trend of steady growth, with 2014
issuance likely to be at least in line with 2012's record of
$137bn. (Peninsula Qatar)
 QNB Group’s AGM to be held on February 2 – QNB Group
has announced that its AGM will be held on February 2, 2014 at
Fareej Sharq Hotel and Resort. In absence of required quorum,
the second meeting will be conducted on February 5, 2014 at
the same place. The agenda of the AGM includes the board’s
approval of the proposal to distribute to shareholders a cash
dividend at the rate of 70% of the nominal value of the share,
representing QR7.0 per share, among others. (QE)
 QISI’s BoD to meet on February 13 – Qatar Islamic Insurance
Company’s (QISI) board of directors will meet on February 13,
2014 to discuss the company’s financial results ending on
December 31, 2013. The board has also invited new
membership nominations for QISI’s board for a period of three
years (2014-2016). Nominations are open for 11 positions from
January 19, 2014 until January 30, 2014. (QE)
 DBIS’ BoD to meet on February 4 – Dlala Brokerage &
Investment Holding Company’s (DBIS) board of directors will
meet on February 4, 2014 to discuss the company’s financial
results ending December 31, 2013. (QE)
 QA to launch Saudi operations by 3Q2014; signs cargo deal
with IAG – Qatar Airways’ (QA) CEO Akbar Al Baker said that
the airline has reached an agreement with Saudi authorities on
solving problems that blocked its entry into Saudi Arabia's
domestic market. He said that Qatar Airways have already now
appointed a new CEO for its Saudi operations, and planning to
launch the Saudi operations anytime between the middle to the
third quarter of this year. Meanwhile, Qatar Airways has reached
a deal with British Airways’ parent IAG to provide it with cargo
capacity. QA will operate five Boeing 777 freighters between
London and Hong Kong on behalf of IAG Cargo starting from
May 2014. The company said that these measures will curtail
IAG’s cargo capacity by about 13%. London-based IAG’s Chief
Executive Officer Willie Walsh said that this new partnership is
an important step that enhances its relationship with Qatar.
(Gulf-Times.com, Qatar Tribune)
 Cargo flights at HIA set to begin within a month – According
to sources, cargo flights at the new Hamad International Airport
(HIA) are expected to begin within a month. The New Doha
International Airport Steering Committee’s Chairman Abdul Aziz
al-Noaimi said that they are using the cargo terminal for the
freight, but the actual landing will take place a month’s time from
now. The committee’s spokesperson also confirmed that cargo
flights were not landing at HIA at the moment, but the terminal
was being used to store freight. HIA’s cargo terminal received
the first cargo shipment from Qatar Airways on December 1,
2013, which was transferred from Europe to Doha International
Airport by air and then onwards to the new cargo terminal at HIA
via land. The new cargo terminal at HIA has an annual capacity
of 1.4mn tons. (Gulf-Times.com)
Page 3 of 7

4. International
 US Senate passes $1.1tn spending bill – The US Senate has
passed the $1.1tn omnibus spending bill that eliminates the
threat of another government shutdown at least until October.
Passed by the House of Representatives a day earlier, the bill
now goes to the White House for President Barack Obama’s
approval, thus preventing another shutdown. While the Senate
passed the massive bill by 72-26 votes, the House approved it
by 359-67 votes earlier. All Senate Democrats supported the
spending package, while 17 Republicans also voted in its favor.
(ET)
 EU wants common rules for shale gas fracking – The
European Commission wants EU member states to accept
common environment and health rules if they use the
controversial fracking method to develop their shale gas
resources. A document prepared for the Commission's 2030
Energy & Climate Package recognizes the importance of the
shale gas revolution, which has driven the US gas prices down
sharply, but also recommends strong regulation to prevent
environmental damage. (ET)
 Eurozone’s inflation slows in December on one-off effect in
Germany – According to the European Union's statistics office,
inflation in the Eurozone slowed in December, in what the ECB
attributed last week to a one-off change in the method of
calculating price growth in Germany. Consumer prices among
17 countries sharing the euro rose 0.3%, putting the annual
inflation rate at 0.8%, down from 0.9% in November, but a tad
above 0.7% in October. The ECB, which wants to keep inflation
at around 2% over the medium-term, expects a prolonged
period of low inflation, but sees no immediate risk of deflation.
(Reuters)
 Ireland regains investment grade from Moody’s – Ireland’s
credit rating was restored to investment grade by Moody’s after
the country became the first to exit the EU bailout since the debt
crisis erupted in 2009. Moody’s raised the country’s rating to
Baa3 from Ba1 with a positive outlook. Earlier, Moody’s had cut
the nation’s ranking five times in two years before assigning junk
status in July 2011. The increase means all the three main credit
rating companies now rate Ireland as investment grade.
(Bloomberg)
 OPEC outages cut its oil output to below 2014 demand –
The oil exporter group OPEC stated that it has lowered its
output further and is pumping less than 2014’s global need for
its crude oil, underlining the toll that outages in Libya and
elsewhere are taking on production. The OPEC’s monthly report
kept its global supply and demand forecasts unchanged, which
point to a smaller market share in 2014 due to increasing supply
from non-OPEC countries. However, the OPEC is relatively
upbeat on economic prospects, seeing faster growth in 2014 of
3.5%, up from 2.9% in 2013 as monetary stimulus continues.
(Reuters)
Regional
 QNB Group: Africa needs infrastructure boost, prudent
policies to reach emerging market status – According to a
report by QNB Group, strong infrastructure investment and
continued prudent macroeconomic policies will be essential if
the African subcontinent is to achieve double-digit growth and
reach an emerging market status. QNB Group’s latest estimates
show that Sub-Saharan Africa (SSA) continues on its rapid
growth momentum; the subcontinent grew by 5% in 2013 and is
expected to reach 6-6.5% this year on the back of high
investment spending and a growing middle class. QNB Group
said this makes it the second fastest economic growth
performance in the world, placing it next to China. QNB Group
said from stagnation and high inflation in the 1980s, several
African countries have managed to grow rapidly over the last
two decades under moderate inflation. Countries such as
Ethiopia, Mozambique, Rwanda, Tanzania and Uganda
quadrupled their real GDP growth on average, while bringing
inflation down into single digits, which has enabled millions of
Africans. (Gulf-Times.com)
 GCC, China sign strategic action plan – GCC countries and
China have signed a strategic dialogue action plan for the period
from 2014 until 2017. Under the four-year blueprint, the two
sides have pledged to boost bilateral relations in terms of
political, economic, trade, educational, technical, environmental,
health and sporting ties, in addition to promoting joint
investments. (GulfBase.com)
 Al Rajhi Bank reports SR1,547mn net profit in 4Q2013 – Al
Rajhi Bank has reported a net profit of SR1,547mn in 4Q2013,
reflecting an decrease of 9.9% QoQ (-19.1% YoY). EPS stood at
SR4.96 for the period ended December 31, 2013 as compared
to SR5.26 on December 31, 2012. Total assets at the end of
2013 stood at SR279.9bn, growing 4.7% YoY. Loans &
advances were up by 8.7% YoY to SR186.8bn, while consumer
deposits rose by 4.6% YoY to SR231.6bn. (Tadawul)
 Medical insurance makes up 55% of total premiums in KSA
– According to Standard & Poor’s (S&P), medical insurance now
comprises about 55% of total insurance premiums paid in Saudi
Arabia, up from around 40% in 2008. The ratings agency
pointed out that the big Saudi insurance companies effectively
control majority of the market’s distribution and ownership now.
S&P said the Council of Cooperative Health Insurance has
proven to be effective at steering the market to a more stable
direction with a sustainable level of provision across the GCC
region. Compulsory health schemes are now the norm. S&P
expects a progressive surge in premium income from the
introduction of compulsory medical insurance in Dubai, but
probably not much of a material increase until 2015.
(GulfBase.com)
 Madinah Investment Forum to explore SR4bn projects – The
forthcoming Madinah Investment Forum will explore a series of
mega projects in the region predicted to be worth SR4bn. The
Forum’s Coordinator Ali Awari said that the forum is being
organized by the Madinah Chamber of Commerce & Industry on
February 12. Further, Ali Awari said that the two-day forum will
discuss projects related to endowments, real estate and
industry, in addition to a key project offered by the Yanbu Royal
Commission. (GuflBase.com)
 Gulf Union to provide SR11.9mn technical reserve – The
Gulf Union Cooperative Insurance Company (Gulf Union) has
provided for an additional technical reserve of SR11.9mn. The
additional reserve is based on the report of an independent
actuary dated December 15, 2014, in accordance with SAMA
Implementation Regulations for Insurance Companies.
Consequently, this additional reserve will negatively impact on
Gulf Union's financial statements for 4Q2013 and the year
ended December 31, 2013, but it would enhance the company's
ability to meet its obligations in the future. (Tadawul)
 Saudi construction on track to reach SR1.12tn – The
construction & building sector in Saudi Arabia is forecasted to
reach SR1.12tn in 2016, and stand second only to the oil sector.
Dhahran International Exhibition’s CEO Mohamed Al-Husaini
stated that the sector’s contribution to the country’s GDP in 2012
reached 16.5%. The construction sector grew by around 5.7%
YoY in 3Q2013, down from 6.5% in 2Q. (GulfBase.com)
Page 4 of 7

5.  Aldrees declares SR60mn dividends for FY2013; to increase
its capital through bonus shares – Aldrees Petroleum &
Transport Services Company’s (Aldrees) board of directors has
recommended the distribution of dividends worth SR60mn (SR2
per share), representing 20% of the face value for period
FY2013. Those shareholders who are registered in the Security
Depository Center on the day of the general assembly meeting
(date to be announced) will be eligible for these dividends. The
cash dividend will be distributed before the increase in
company's capital, if approved. Meanwhile, Aldrees’ board of
directors has recommended for an increase in the company’s
capital through bonus shares. The company’s capital is to be
raised by 33.33%, from SR300mn to SR400mn. With this, the
number of shares would go up from 30mn shares to 40mn
shares. The increase will be done through capitalization of
SR100mn from account retained earnings and statutory
reserves. (Tadawul)
 GGCIC gets SAMA’s approval for insurance products – The
Gulf General Cooperative Insurance Company has obtained the
Saudi Arabian Monetary Agency’s (SAMA) temporary approval
to use of its insurance products for six months for various
products. Some of the covered products are: burglary, travel,
employers’ liability, workmen’s compensation, property all risks
material damage, material damage and consequential loss,
home insurance, marine open policy, marine cargo policy, etc.
(Tadawul)
 SIECO declares SR5.4mn dividends for 2013 – Saudi
Industrial Export Company’s (SIECO) board of directors has
recommended the distribution of dividends worth SR5.4mn
(SR0.5 per share), representing 5% of the face value for 2013.
Those shareholders who are registered in the Security
Depository Center on the day of shareholder meeting (date to be
announced) will be eligible for these dividends. (Tadawul)
 ArcelorMittal’s plant begins production in Jubail – Global
iron & steel company ArcelorMittal has begun commercial
production at its plant in Jubail 2 Industrial Zone in the Kingdom.
The mill located in Jubail Industrial City has a capacity of
600,000 tons a year built with an investment in excess of a
billion dollars. ArcelorMittal’s CEO Timothy Erway said that
about two-thirds of its capacity will be used for tubular products
and the remainder for pipelines. (GulfBase.com)
 Vallourec sets up new venture in Dammam – The Eastern
Province’s Governor Prince Saud bin Naif has opened the
Vallourec plant for manufacturing oil & gas pipes at the second
industrial city in Dammam. Meanwhile, the Minister of
Commerce & Industry Tawfiq Al-Rabiah said that the ministry
will continue to help commercial initiatives both from the public
and private sectors. Al-Rabiah said that they have 647,220
plants and 94 of them are still under construction. The total cost
of these plants has reached SR800bn and Saudization in these
plants is 70%. Additionally, he said that there are now seven
industrial cities in the Eastern Province, including Dammam and
Hafr Al-Batin, and a few more are under construction.
(GulfBase.com)
 Bahri receives Bahri Jeddah vessel – The National Shipping
Company of Saudi Arabia (Bahri) has received a new vessel
named “Bahri Jeddah” specialized in general cargo with a
capacity of 26,000 DWT. Built by Hyundai MIPO in South Korea,
Bahri Jeddah is the fifth vessel delivered among the six vessels
that were contracted by the company in 2011 for a total value of
SR1,543mn. The financial impact of the delivered vessel will
materialize on the company’s revenue during 1Q2014. Bahri has
one more general cargo vessel remaining under construction at
Hyundai MIPO whose delivery is expected during 1Q2014.
(GulfBase.com)
 Bank Al Jazira, MoneyGram sign deal – MoneyGram has
announced an agreement with Bank Al Jazira to offer its
services at multiple bank and remittance centers. The alliance
gives access to over-the-counter global money transfers to
consumers along with the ability to send and receive money in
just 10 minutes. (GulfBase.com)
 Saudi Gulf signs $2bn deal to buy Bombardier planes –
Dammam-based New Saudi Gulf Airlines has signed a $2bn
deal with Canadian aircraft company Bombardier to buy 16 CSeries jets with options for 10 more. Delivery of these CS300
jets with seating capacity of 130-160 passengers is expected to
happen by the end of 2015. Meanwhile, Saudi Gulf is expected
to start operating in 2014 or in 2015. (Peninsula Qatar)
 UAE to attract $14.4bn FDI in 2014 – According to sources,
the UAE is expected to attract foreign direct investment (FDI)
worth $14.4bn in 2014, a 20% rise over 2013. The UAE Ministry
of Economy’s Undersecretary for Foreign Trade Sector Abdulla
Al Saleh said that the country also recorded a 20% YoY growth
in FDI last year, reaching $12bn. Al Saleh said that in 2013, the
UAE was able to attract three times more FDI than expected,
adding that increased government spending and a significant
resurgence in tourism, transport and trade have contributed to
this upswing. He mentioned that FDI jumped by 200% to reach
$12bn in 2013, rising from $4bn in 2007. (GulfBase.com)
 West Coast to set up AED60mn paper, plastic products
plant – West Coast Company will set up a new manufacturing
facility in the Khalifa Industrial Zone Abu Dhabi (Kizad), in order
to expand its business targeting the GCC market. The new
facility will be located in Kizad’s mixed-use cluster and will
commence operations in June 2014. The facility’s first line will
focus on producing paper-based products including facial
tissues, toilet rolls and hand towels, and will have a production
volume of 120-150 tons per month. The second line will focus on
the production of plastic-based products such as shopping and
waste bags, and will have a production volume between 60-80
tons per month. (GulfBase.com)
 Gulftainer increases its market dominance in 2013 – The
Sharjah-based Gulftainer Company Ltd has increased its market
dominance in 2013 by controlling one-fifth of total containerized
trade in the GCC region. The cargo company achieved this
significant milestone due to its streamlined operations and
commercial efforts. Gulftainer now plans to increase its global
portfolio to handle up to 18mn twenty-foot equivalent units
(TEUs) by 2020. (GulfBase.com)
 Shuaa hires for its institutional brokerage – Shuaa Capital,
which had cut jobs and shut its retail operations, is hiring for its
institutional brokerage as the investment bank bets on a further
increase in the stock market. The company’s spokesman Oliver
Schutzmann said that it is planning to add equity traders on the
back of the current positive momentum in the market.
(GulfBase.com)
 Rotana plans to open four new hotels with 1,500 rooms in
1Q2014 – Rotana is planning to open four new hotels with
nearly 1,500 rooms in the Middle East. Rotana manages a
significant portfolio of properties throughout the Middle East,
Africa, South Asia and Eastern Europe regions. The hotel
management company plans to will add 1,096 rooms in Gulf
countries including the UAE during 1Q2014, and an additional
400 rooms during the forthcoming summer in Jordan.
(GulfBase.com)
Page 5 of 7

6.  Dubai’s inflation rises 1.31% in 2013 – According to a report
by the Dubai Statistics Centre, the inflation rate in Dubai in 2013
increased 1.31% over 2012, mainly due to an increase in the
prices of the beverages & tobacco group by 14.79%. Other
factors that affected the inflation rate included a rise in the
education group by 4.58%; furnishings, household equipment &
routine household maintenance by 3.37%; food by 2.55%;
recreations & culture by 1.79%; transport by 1.62%; housing,
water, electricity, gas & other fuels by 1.22%; restaurants &
hotels by 1.16%; and health by 1.14%. On the other hand, the
inflation rate for clothing & footwear declined by 2.65%;
communication by 1.04%; and miscellaneous goods & services
by 0.28%. (GulfBase.com)
 Dubal converted into PJSC with AED3bn capital – The UAE
Prime Minister & Vice President, HE Highness Shaikh
Mohammed bin Rashid Al Maktoum has issued Law No. (1) of
2014 converting Dubai Aluminium (Dubal) into a private joint
stocks company (PJSC). Pursuant to the law, the name of the
new company is “Dubai Aluminium PJS” with a declared capital
of AED3bn, which would be headquartered in Dubai and may
establish branches inside and outside the UAE. The law stated
that Dubai Aluminium PJS subrogates Dubai Aluminium in all
legal and business obligations and rights starting from the date
of effective of this law, and the employees of Dubai Aluminium
shall benefit from their vested right. (GulfBase.com)
 Dubai Group signs $10bn debt restructuring deal –
According to sources, Dubai Group has signed a $10bn debt
restructuring agreement, bringing an end to the last major issue
remaining from the Emirate’s 2009 financial crisis. The
investment vehicle owned by the Emirate’s ruler signed the
restructuring deal. Lenders to the unit of Dubai Holding, which
include France’s Natixis and Dubai’s Emirates NBD, still have to
sign the last piece of documentation. Out of its total $10bn debt,
Dubai Group owes $6bn to banks and the remaining $4bn is
classified as inter-company loans. (Peninsula Qatar)
 DEWA signs new electrical contracts – The Dubai Electricity
& Water Authority’s (DEWA) Managing Director & CEO Saeed
Mohammed Al Tayer has signed a contracts with Power Magic
Electrical Works LLC and Gulf Sands Contracting LLC, to
complete low voltage cable-laying works within a week of
receiving requests made by Dewa’s relevant departments. The
contracts ensure the highest standards of excellence and
through such agreements, DEWA aims to strengthen the
electricity infrastructure of Dubai. (GulfBase.com)
 du Telecom doubles 4G LTE footprint in 2013 – The Emirates
Integrated Telecommunications Company (du Telecom) has
increased its 4G LTE footprint by more than double during 2013.
Du also doubled the original radio capacity to accommodate the
significant increase in mobile data traffic, since the launch of its
4G network in June 2012. During 2012-13 alone, du Telecom’s
investments in its 3G and 2G network capabilities have resulted
in an increase of its radio network capacity by 60%.
(GulfBase.com)
 RAKBANK’s BoD will meet on January 27 – The National
Bank of Ras Al Khaimah's (RAKBANK) board of directors will
meet on January 27, 2014 to approve of financial statements for
the year ended December 2013 and the distribution of profits
and appropriation of reserves. (ADX)
 NBO revamps SBU to motivate SME sector – The National
Bank of Oman (NBO) will revamp its Small Business Unit (SBU)
in a bid to extend support the small & medium enterprises
(SME) sector in Oman. The bank will launch specific segment
offerings under the Tijarati Banking Unit, a specialized
department that will focus on services for SMEs, to fully cater to
the diversity within the segment, and offer targeted support to
customers. The SBU will offer a comprehensive range of
products including collateral-backed and collateral-free financial
offerings. (GulfBase.com)
 BAC signs BHD1.2mn deal for new passenger boarding
bridges – Bahrain Airport Company (BAC) has signed an
agreement with Shenzhen CIMC TIANDA Airport Support Ltd to
replace the existing passenger bridges at Bahrain International
Airport with new state-of-the-art passenger boarding bridges. As
per the BHD1.2mn agreement, 7 CIMC TIANDA passenger
boarding bridges will be installed to replace the existing bridges
to further enhance the airport’s operations and travel
experience. The new bridges will not only provide weather
protection, comfort, and safe walkway between terminal and
aircrafts; but they will also be designed to create a welcoming
ambience for passengers. (GulfBase.com)
 Gulf Air signs $100m deal with Rolls-Royce; unveils $20mn
A330 retrofit – Bahrain-based Gulf Air has signed a five-year
agreement to extend Rolls-Royce TotalCare support for its fleet
of six A330 aircraft powered by Trent 700 engines. The
agreement worth over $100mn extends the previous five-year
agreement that was signed in 2009. Meanwhile, Gulf Air has
also signed contracts totaling approximately $20mn to appoint
Avianor, Zodiac Aerospace and BE Aerospace as partners for
the retrofit of its A330 fleet. Gulf Air’s planned A330 retrofit,
scheduled to be completed in 4Q2014, is part of the airline’s
ongoing proactive re-fleeting and product enhancement
strategy. (GulfBase.com)
 Aero Gulf signs MoU with KHCB for financing – Bahrainbased Aero Gulf Group has signed a memorandum of
understanding (MoU) with Khaleeji Commercial Bank (KHCB)
for financing support of its aviation investment program. KHCB
is committed to provide Islamic finance to underpin the business
growth plans of Aero Gulf Group and in particular its operations
within the aviation maintenance, repair and overhaul (MRO)
sector. The Aero Gulf Sola Engine Centre in Norway, which was
purchased from Pratt & Whitney late 2013, forms the
cornerstone of a growing aviation portfolio that will focus on the
provision of MRO services across the Middle East and North
Africa. (GulfBase.com)
 Batelco, Huawei sign MoU on 4G delivery – Bahrain
Telecommunications Company (Batelco) and Chinese telecom
company Huawei have signed a memorandum of understanding
(MoU) on the sidelines of Bahrain International Airshow 2014.
Batelco’s Chairman Shaikh Hamad bin Abdullah Al Khalifa and
Huawei’s VP Middle East Huang Ji signed the MoU covering the
delivery of 4G services for Batelco’s subsidiary SURE Telecom
in Guernsey, Jersey and the Isle of Man. Under the agreement,
Huawei will deliver and integrate 4G LTE base stations into
SURE's network. (GulfBase.com)
 Investcorp sells TDX Group to Equifax for £200mn –
Investcorp, together with the founders of the TDX Group (TDX)
has agreed the sale of TDX to Equifax Inc., for £200mn.
Through its technology fund, Investcorp Technology Partners III,
Investcorp had acquired a substantial minority stake in TDX in
2008, becoming the largest and only institutional shareholder
alongside TDX's three founders. (GulfBase.com)
 Ithmaar Bank appoints new CEO – Ithmaar Bank has
appointed Ahmed Abdul Rahim as the new chief executive
officer. Abdul Rahim had been the bank's acting chief executive
officer since September 2013. (Bloomberg)
Page 6 of 7

7. Rebased Performance
Daily Index Performance
170.0
160.0
150.0
140.0
130.0
120.0
110.0
100.0
90.0
80.0
139.2
0.8%
126.3
0.4%
1.3%
1.2%
0.8%
0.2%
0.3%
0.0%
0.0%
May-13
S&P Pan Arab
Dec-13
S&P GCC
Source: Bloomberg
Asset/Currency Performance
Gold/Ounce
Silver/Ounce
Crude Oil (Brent)/Barrel (FM
Future)
Natural Gas (Henry
Hub)/MMBtu
North American Spot LPG
Propane Price
North American Spot LPG
Normal Butane Price
Euro
Yen
Dubai
Oct-12
(0.2%)
Abu Dhabi
QE Index
Mar-12
Bahrain
Aug-11
Kuwait*
Jan-11
(0.3%)
Qatar
(0.8%)
Oman
(0.4%)
Saudi Arabia
Jun-10
1.6%
159.6
Source: Bloomberg (*Market closed on January 16, 2014)
Close ($)
1D%
WTD%
YTD%
Global Indices Performance
Close
1D%
WTD%
YTD%
1,254.05
0.9
0.4
4.0
DJ Industrial
16,458.56
0.3
0.1
(0.7)
20.33
1.1
0.8
4.4
S&P 500
1,838.70
(0.4)
(0.2)
(0.5)
106.48
(0.6)
(0.7)
(3.9)
NASDAQ 100
4,197.58
(0.5)
0.5
0.5
4.39
(3.2)
11.2
1.1
STOXX 600
335.82
0.5
1.8
2.3
137.50
5.2
7.6
8.9
DAX
9,742.96
0.3
2.8
2.0
150.50
4.9
8.4
10.3
FTSE 100
6,829.30
0.2
1.3
1.2
1.35
(0.6)
104.32
(0.0)
(0.9)
(1.5)
CAC 40
0.1
(0.9)
Nikkei
GBP
1.64
0.4
(0.4)
(0.8)
MSCI EM
CHF
1.10
(0.6)
(0.8)
(1.9)
SHANGHAI SE Composite
AUD
0.88
(0.5)
(2.4)
(1.5)
USD Index
81.23
0.4
0.7
RUB
33.56
0.4
1.5
BRL
0.43
0.6
0.8
0.6
4,327.50
0.2
1.8
0.7
15,734.46
(0.1)
(1.1)
(3.4)
972.27
(0.2)
0.2
(3.0)
2,004.95
(0.9)
(0.4)
(5.2)
HANG SENG
23,133.35
0.6
1.3
(0.7)
1.5
BSE SENSEX
21,063.62
(0.9)
1.5
(0.5)
2.1
Bovespa
49,181.86
(1.0)
(1.0)
(4.5)
1,395.79
(0.1)
(0.0)
(3.3)
Source: Bloomberg
RTS
Source: Bloomberg
Contacts
Saugata Sarkar
Ahmed M. Shehada
Keith Whitney
Sahbi Kasraoui
Head of Research
Head of Trading
Head of Sales
Manager - HNWI
Tel: (+974) 4476 6534
Tel: (+974) 4476 6535
Tel: (+974) 4476 6533
Tel: (+974) 4476 6544
saugata.sarkar@qnbfs.com.qa
ahmed.shehada@qnbfs.com.qa
keith.whitney@qnbfs.com.qa
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
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