1. Page 1 of 7
QE Intra-Day Movement
Qatar Commentary
The QE index rose 1.3% to close at 12,717.0. Gains were led by the Telecoms
and Insurance indices, gaining 3.5% and 2.0%, respectively. Top gainers were
Salam International Investment Co. and Ooredoo, rising 5.3% and 3.8%
respectively. Among the top losers, Qatar Cinema & Film Distribution Co. fell
4.9%, while Qatar General Ins. & Reins. Co. declined 3.1%.
GCC Commentary
Saudi Arabia: The TASI index rose 0.1% to close at 9,787.4. Gains were led
by the Multi-Inv. and Petrochemical Industries indices, rising 0.8% and 0.5%
respectively. Sanad gained 6.9%, while Al Hokair Group was up 6.0%.
Dubai: The DFM index declined marginally to close at 4,507.9. The Inv. &
Financial Ser. index fell 1.7%, while the Real Estate & Const. index was down
0.7%. Al Salam Sudan declined 9.4%, while Gulf Navigation was down 7.9%.
Abu Dhabi: The ADX benchmark index fell 0.2% to close at 4,817.5. The
Consumer index declined 4.2%, while the Inv. & Fin. Ser. index was down
1.5%. Agthia Group fell 5.2%, while Arkan Building Materials was down 4.5%.
Kuwait: The KSE index gained 0.7% to close at 7,053.1. The Real Estate and
Telecommunication indices rose 1.5% and 1.3%, respectively. Pearl Of Kuwait
Real Estate Co. surged 33.3%, while Hilal Cement Co. was up 8.3%.
Oman: The MSM index rose 0.2% to close at 7,152.3. Gains were led by the
Services and Financial indices, rising 0.3% and 0.1%, respectively. National
Aluminium Products gained 2.1%, while HSBC Bank Oman was up 1.7%.
Bahrain: The BHB index gained 0.5% to close at 1,440.7. The Commercial
Banking index rose 1.0%, while the Industrial index was up 0.4%. Ithmaar
Bank gained 7.1%, while National Bank of Bahrain was up 2.0%.
Qatar Exchange Top Gainers Close* 1D% Vol. ‘000 YTD%
Salam International Investment Co. 19.30 5.3 2,959.8 48.3
Ooredoo 135.00 3.8 56.9 (1.6)
Qatar Insurance Co. 85.50 3.8 257.1 60.7
Qatar Oman Investment Co. 15.40 3.6 1,295.1 23.0
Gulf Warehousing Co. 49.30 3.2 57.8 18.8
Qatar Exchange Top Vol. Trades Close* 1D% Vol. ‘000 YTD%
Ezdan Holding Group 23.69 0.9 3,977.9 39.4
Salam International Investment Co. 19.30 5.3 2,959.8 48.3
Masraf Al Rayan 52.80 1.5 1,694.2 68.7
Vodafone Qatar 18.78 2.5 1,532.6 75.4
Mazaya Qatar Real Estate Dev. 18.80 2.2 1,317.5 68.2
Market Indicators 09 Jul 14 08 Jul 14 %Chg.
Value Traded (QR mn) 641.0 669.4 (4.2)
Exch. Market Cap. (QR mn) 694,196.6 686,973.3 1.1
Volume (mn) 17.8 20.9 (14.9)
Number of Transactions 7,154 8,448 (15.3)
Companies Traded 43 42 2.4
Market Breadth 26:15 34:6 –
Market Indices Close 1D% WTD% YTD% TTM P/E
Total Return 18,967.29 1.3 2.8 27.9 N/A
All Share Index 3,220.24 1.1 2.3 24.5 15.4
Banks 3,071.55 0.6 1.7 25.7 15.2
Industrials 4,305.41 1.0 2.5 23.0 16.8
Transportation 2,205.35 1.2 1.2 18.7 14.2
Real Estate 2,676.14 1.8 3.0 37.0 13.4
Insurance 3,575.73 2.0 4.4 53.1 9.4
Telecoms 1,636.08 3.5 5.7 12.5 22.6
Consumer 6,813.10 0.3 1.4 14.5 26.8
Al Rayan Islamic Index 4,248.24 1.2 3.4 39.9 18.4
GCC Top Gainers##
Exchange Close#
1D% Vol. ‘000 YTD%
Ithmaar Bank Bahrain 0.15 7.1 766.1 (34.8)
Saudi Ind. Inv. Group Saudi Arabia 39.24 4.4 1,651.7 21.1
Ooredoo Qatar 135.00 3.8 56.9 (1.6)
Qatar Insurance Co. Qatar 85.50 3.8 257.1 60.7
Arab National Bank Saudi Arabia 28.94 3.5 1,933.5 10.5
GCC Top Losers##
Exchange Close#
1D% Vol. ‘000 YTD%
IFA Hotels & Resorts Kuwait 0.20 (4.8) 22.9 (30.5)
RAKBANK Abu Dhabi 8.60 (3.9) 372.5 20.5
Qatar Gen. Ins. & Reins. Qatar 44.50 (3.1) 6.0 11.5
Arabtec Holding Co. Dubai 4.13 (2.1) 60,455.1 101.5
United Electronics Co. Saudi Arabia 119.70 (2.1) 38.7 21.2
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%
Qatar Cinema & Film Distri. Co. 50.00 (4.9) 7.2 24.7
Qatar General Ins. & Reins. Co. 44.50 (3.1) 6.0 11.5
Qatar National Cement Co. 134.20 (1.7) 8.1 12.8
Dlala Brokerage & Invest. Holding 53.00 (1.3) 387.2 139.8
Al Khaleej Takaful Group 43.00 (1.1) 13.4 53.1
Qatar Exchange Top Val. Trades Close* 1D% Val. ‘000 YTD%
Ezdan Holding Group 23.69 0.9 94,726.9 39.4
Masraf Al Rayan 52.80 1.5 89,197.9 68.7
QNB Group 174.80 (0.1) 65,567.2 1.6
Salam International Investment Co 19.30 5.3 56,766.1 48.3
Gulf International Services 101.30 0.3 30,760.1 107.6
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* 12,717.00 1.3 2.8 10.7 22.5 176.08 190,695.8 15.8 2.2 3.9
Dubai 4,507.93 (0.0) 2.5 14.3 33.8 235.80 88,310.6 18.1 1.8 2.3
Abu Dhabi 4,817.45 (0.2) 1.0 5.9 12.3 47.64 134,520.4 14.2 1.8 3.4
Saudi Arabia 9,787.41 0.1 1.0 2.9 14.7 1,576.86 533,713.5 19.4 2.4 2.9
Kuwait 7,053.11 0.7 0.7 1.2 (6.6) 47.31 110,559.9 16.8 1.1 3.9
Oman 7,152.32 0.2 1.4 2.1 4.6 15.76 26,356.3 12.4 1.7 3.9
Bahrain 1,440.66 0.5 0.9 0.9 15.4 0.80 53,713.4 11.3 1.0 4.8
Source: Bloomberg, Qatar Exchange, Tadawul, Muscat Securities Exchange, Dubai Financial Market and Zawya (** TTM; * Value traded ($ mn) do not include special trades, if any)
12,500
12,550
12,600
12,650
12,700
12,750
9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00

2. Page 2 of 7
Qatar Market Commentary
 The QE index rose 1.3% to close at 12,717.0. The Telecoms and
Insurance indices led the gains. The index rose on the back of
buying support from Qatari shareholders despite selling pressure
from non-Qatari shareholders.
 Salam International Investment Co. and Ooredoo were the top
gainers, rising 5.3% and 3.8%, respectively. Among the top
losers, Qatar Cinema & Film Distribution Co. fell 4.9%, while
Qatar General Ins. & Reins. Co. declined 3.1%.
 Volume of shares traded on Wednesday fell by 14.9% to 17.8mn
from 20.9mn on Tuesday. Further, as compared to the 30-day
moving average of 20.0mn, volume for the day was 10.9% lower.
Ezdan Holding Group and Salam International Investment Co.
were the most active stocks, contributing 22.4% and 16.6% 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
Saudi Telecom Co S&P
Saudi
Arabia
LT CCR/ST CCR A+/A-1 A+/A-1 – Positive 
Bank AlJazira (BAJ) CI
Saudi
Arabia
FSR/LT FCR/ST
FCR/SR
BBB/BBB+/A2/2 BBB/BBB+/A2/2 – Stable –
Saudi National
Insurance
Company's (SNIC)
S&P Bahrain LCR BBB BBB – Stable –
Source: News reports (* LT – Long Term, ST – Short Term, FSR- Financial Strength Rating, FCR – Foreign Currency Rating, LCR – Local Currency Rating, IDR – Issuer Default Rating, SR – Support Rating, LC
– Local Currency, CCR – Corporate Credit Rating)
Earnings Releases
Company Market Currency
Revenue
(mn)2Q2014
% Change
YoY
Operating Profit
(mn) 2Q2014
% Change
YoY
Net Profit (mn)
2Q2014
% Change
YoY
Jazan Development
Company (JAZADCO)
Saudi SR – – 0.3 NA 1.1 -99.1%
Nakheel* Dubai AED – – – – 1850.0 54.2%
Hotel Management
Company International
(HMCI)
Oman OMR 6.8 3.7% – – 1.9 -8.6%
Financial Services (FSCI)* Oman OMR 0.6 11.1% – – 0.2 -39.0%
Source: Company data, DFM, ADX, MSM (* 1H2014 results)
Global Economic Data
Date Market Source Indicator Period Actual Consensus Previous
07/09 US MBA MBA Mortgage Applications 4 July 1.90% – -0.20%
07/09 UK BRC BRC Shop Price Index YoY June -1.80% – -1.40%
07/09 Spain INE House transactions YoY May 5.40% – 5.30%
07/09 China NBS PPI YoY June -1.10% -1.00% -1.40%
07/09 China NBS CPI YoY June 2.30% 2.40% 2.50%
07/09 Japan Bank of Japan Money Stock M2 YoY June 3.00% 3.00% 3.30%
07/09 Japan Bank of Japan Money Stock M3 YoY June 2.40% 2.50% 2.60%
Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted)
News
Qatar
 GISS announces QR1.6bn onshore contract extension;
raising estimates and PT to QR129 – GDI announces 5-year
contract extension for GDI 1-4 land rigs. GDI announced that
four of its contracts with Qatar Petroleum (QP), covering the
provision of the onshore rigs GDI-1, GDI-2, GDI-3 and GDI-4,
were extended for an additional five years with effect from
2Q2014. The cumulative value of these contract extensions
(including income from ancillary services) is worth QR1.6bn.
These rigs have been working exclusively for QP in the Dukhan
oilfields since they were first acquired. The 1500hp rigs, GDI-1,
GDI-2 and GDI-4, commenced operations in 2004, 2005 and
2006, respectively, while the 1000hp rig, GDI-3, began
operating in 2008. Deal extension terms imply 2x existing
land rig rates. While the extension value includes one-off
charges, taking into account the overall value, the daily rate for
each of these four rigs works out to around $60k/d. This is
almost double the $30.4k/rig for the existing land fleet as of
2013. Increasing estimates by an average of 3-5%. As a
result of this new extension, we are increasing our revenue
forecast to QR3.81bn vs. QR3.73bn for 2014. Moreover, we
also raise top-line estimates for 2015 (QR4.92bn vs. QR4.77bn)
and 2016 (QR5.27bn vs. QR5.05bn). Consequently, our 2014
Overall Activity Buy %* Sell %* Net (QR)
Qatari 68.40% 67.20% 7,726,965.69
Non-Qatari 31.59% 32.80% (7,726,965.69)

3. Page 3 of 7
EBITDA increases to QR1.41bn vs. QR1.36bn. Moreover, our
2015 EBITDA increases to QR1.73bn vs. QR1.66bn.
Furthermore, our 2016 EBITDA increases to QR1.87bn vs.
1.76bn. Our net profit estimates change from QR981mn to
QR1.01bn (2014), from QR1.08bn to QR1.12bn (2015), and
from QR1.15bn to QR1.21bn (2016). We note that these
revisions are subject to change pending discussion with GISS
management. Increasing price target to QR129 from QR121;
maintain Outperform rating. We recently raised GISS’
estimates and PT factoring in recent deals (again on extremely
attractive terms) for the Dukhan (offshore) and the GDI 7/8
(land) rigs. Thus new contract extension prompts us to raise our
price target further to QR129. Our price target implies 27.3%
upside (QNBFS Research, Peninsula Qatar)
 IHGS reports a net profit of QR4.6mn in 2Q2014, up 55.0%
QoQ – Islamic Holding Group (IHGS) reported a net profit of
QR7.6mn in 1H2014 (QR4.6mn in 2Q2014, up 55% QoQ and
100% YoY) as compared to QR4.4mn in 1H2013, reflecting an
increase of 71.7% YoY. EPS stood at QR1.89 in 1H2014
(QR1.15 in 2Q2014) in comparison to QR1.10 in 1H2013
(QR0.57 in 2Q2013). The rise in IHGS’s net income was on
account of substantial increase in its net brokerage &
commission income that rose to QR13.1mn in 1H2014 from
QR5.6mn in 1H2013 while, on a QoQ basis, it grew 55.7% to
QR8.0mn in 2Q2014. Also, net income growth was supported by
higher net gain from sale of available for sale investments
(QR0.5mn in 1H2014 compared to QR0.2mn in 1H2013) and
lower impairment losses on available for sale investments of
QR0.3mn in 1H2014 compared to QR0.5mn in 1H2013. (QE)
 ABQK reports a net profit of QR302.7mn in 1H2014 – Ahli
Bank (ABQK) reported a net profit of QR302.71mn in 1H2014
vs. QR270.73mn for the same period last year. EPS amounted
to QR1.83 vs. QR1.64 for the corresponding period in 2013.
(QE)
 Cabinet nod to bank transfer of workers’ pay – Qatar’s
Cabinet has approved a draft law amending some provisions of
the Labor Law No 14 of 2004 and decided to submit it to the
Advisory Council. As per the amendment, all workers in the
country would be paid wages through bank transfers. Workers
who have been hired on annual or monthly salaries are to be
paid once a month, but all other workers must be paid at least
once every two weeks. The draft law seeks to facilitate the
launch of the Wage Protection System (WPS) in the country.
According to the draft law, it will be mandatory for employers to
transfer the wages of workers to their accounts within a
specified time. The Cabinet also initiated measures to issue a
draft law that seeks to allow tax exemption to foreigners on
capital gains from sale of Qatari shares or sale of mutual fund
units or shares held in investment or portfolio funds listed on
Qatar’s bourse. (Peninsula Qatar, Gulf-Times.com)
 QPI, Shell sign agreement for new international upstream
partnership in Brazil – Qatar Petroleum International (QPI) and
Shell have signed a memorandum of co-operation in support of
their new international upstream partnership in Brazil. The
agreement follows QPI’s $1bn purchase in April 2014 of a 23%
stake in a major oil production asset, offshore Brazil operated by
Shell known as BC-10 or Parque das Conchas. BC-10 is
producing around 50,000 barrels of oil equivalent a day (boe/d).
Since coming on stream in 2009, BC-10 has produced more
than 80mn boe. (Gulf-Times.com)
 GISS to announce results on July 23 – Gulf international
Services (GISS) will disclose its financial reports for the period
ending June 30, 2014, on July 23, 2014. (QE)
 BRES to announce results on July 23 – Barwa Real Estate
Company (BRES) will disclose its financial reports for the period
ending June 30, 2014, on July 23, 2014. (QE)
International
 Fed mulls policy exit, eyes end of asset purchases – The
Federal Reserve has begun detailing how it plans to ease the
US economy out of an era of loose monetary policy, indicating it
will end its asset purchases in October and appearing near
agreement on a plan to manage interest rates in the future,
according to minutes of the last Fed policy meeting. The minutes
from the June 17-18 meeting indicate the Fed envisions using
overnight repurchase agreements in tandem with the interest it
pays banks on excess reserves to set a ceiling and floor for its
target interest rate. Though no decisions have been announced,
the discussion has become detailed enough for Fed officials to
contemplate the proper spread between the two - mentioned in
the minutes as 20 basis points. The minutes showed the Fed
participants also "generally agreed" that monthly bond
purchases would end in October, with a final reduction of $15bn
in monthly purchases of US Treasuries and mortgage-backed
securities. Fed officials expressed overall confidence that
moderate economic growth will continue and unemployment &
inflation will gradually move toward the central bank's targets. If
anything, there were concerns that the recent low volatility in
financial markets showed investors "were not factoring in
sufficient uncertainty." (Reuters)
 Draghi: Europe needs higher powers as leaders quarrel –
European Central Bank President Mario Draghi said the region
needs more centralized powers to push governments to
overhaul their economies. Draghi added that there is a case for
some form of common governance over structural reforms.
According to him, this is because the outcome of structural
reforms, a continuously high level of productivity and
competitiveness, is not merely in a country’s own interest but in
the interest of the union as a whole. Draghi has repeatedly said
the ECB’s ultra-loose monetary policy is not sufficient to sustain
the Euro area’s fragile recovery if governments backslide. The
European Union finance ministers meeting in Brussels this week
signaled a willingness to give politicians extra leeway so long as
they take measures to fix their economies. They then clashed as
Italian Prime Minister Matteo Renzi pushed back against
austerity measures. Draghi said historical experience, for
example of the International Monetary Fund, makes a
convincing case that the discipline imposed by supranational
bodies can make it easier to frame the debate on reforms at the
national level. He sees merits in initiating, as a one-off, a new
convergence process within the Euro area – one which ensures
that all countries are truly in a position to benefit from
membership. (Bloomberg)
 RICS: London house prices seen falling as BOE acts to
curb risks – The Royal Institution of Chartered Surveyors
(RICS) said London house prices rose at their slowest pace in
15 months in June and values are expected to fall as Bank of
England(BoE) attempts to cool the property market deter
buyers. RICS said a gauge of home prices in the capital
dropped to 31, the lowest since March 2013, from 50 in May,
citing a poll of property surveyors. A measure of price
expectations for the next quarter fell to minus 10 from 24. That
indicates more respondents see declines than increases and is
the weakest reading since May 2012. London has led the surge
in British house prices in the past year, prompting BOE financial-
stability officials to announce measures last month to limit riskier
mortgages and prevent an unsustainable build-up of consumer
debt. That and tougher affordability tests introduced in April are
slowing activity, RICS said. (Bloomberg)

4. Page 4 of 7
 Japan May core machinery record order fall casts shadow
over economy – Japan's machinery orders posted their worst
monthly fall in May, defying expectations of a bounce and
casting doubt on hopes that capital spending was picking up and
could drive further economic recovery. The 19.5% MoM fall in
core orders in May from the previous months, a highly volatile
data series regarded as an indicator of capital spending in the
coming six to nine months, compared with a median estimate of
a 0.7% gain in a Reuters poll of economists. That followed a
9.1% fall in April, data compiled by the Cabinet Office showed.
Thursday’s data directly contradicted the Bank of Japan's key
tankan survey earlier this month, which found that major
Japanese companies are planning to increase spending more
than expected in the current fiscal year to March 2015. (Reuters)
 Finance Minister: China to keep intervening on Yuan –
China said it cannot stop intervention in the Yuan because
economic growth is too weak and capital flows are not steady
enough to warrant changes. Finance Minister Lou Jiwei said the
US side has repeatedly asked, in terms of exchange-rate policy,
whether China needs to intervene any more. He added that but
for China, under the current situation, when the economy has
not recovered fully and when cross-border capital flows are not
completely normal, China will continue existing practices. The
comments signal China may move more slowly than the US
wants on liberalizing its currency policy after it widened the daily
trading limits in March and the central bank said it would
eventually end normal intervention in the market. Lou spoke
hours after Treasury Secretary Jacob J. Lew said moving to a
market-determined exchange rate will be a “crucial step” in
helping drive China’s economic growth. Vice Premier Wang
Yang said that if China moves too fast on opening up to the US
and on exchange-rate reform, it may make “fundamental
mistakes,” while moving too slowly would affect the policy
process in China. (Bloomberg)
Regional
 Meethaq, IDB & IRTI sign MoU to promote Islamic banking –
Meethaq, Islamic Development Bank (IDB), and Islamic
Research & Training Institution (IRTI) have signed a MoU that
aims to support joint business opportunities in the Islamic
banking sector. The MoU provides a general & broad
understanding of the common interests of the respective
institutions and a desire to work together for mutual benefits &
the greater good of the Islamic finance industry. (GulfBase.com)
 Lufthansa may launch low-cost long-haul flights under new
brand – Lufthansa may launch low-cost long-haul flights under a
new brand as part of plans by the company’s new CEO, Carsten
Spohr, to battle competition from Middle East carriers and no-
frills airlines. Under his plans, Lufthansa will join a low-cost rush
to attract leisure travellers with cheaper tickets and no-frills
services, while still keeping its premium namesake brand.
Spohr’s plan is for Lufthansa to expand its European low-cost
service and possibly add a new one for long-haul flights. (Gulf-
Times.com)
 NCB Capital: Housing programs remain key driver of KSA
real estate sector – According to a report released by NCB
Capital, the Saudi housing programs remain the key driver of the
Kingdom’s real estate sector. The outlook for the sector is
positive, driven by the Ministry of Housing (MoH) programs and
the positive outlook for real estate financing. The sector
continues to be the best performing sector on the TASI, up 34%
YTD and outperforming the index by around 22%. The report
stated that the MoH is currently working on developing around
153,000 units as part of its housing programs. These programs
aim to offer affordable housing units to address the supply
shortage. The MoH announced that it is keen to involve the
private sector in executing its current projects. NCB Capital’s
report pointed out that real estate financing is another key factor
in the sector. Financing is expected to increase significantly,
supported by the full approval and implementation of the
mortgage law. (GulfBase.com)
 Saudi Aramco plans to reduce cost of producing natural
gas from tight rock formations – Saudi Arabian Oil Company
(Saudi Aramco) is planning to reduce the cost of producing
natural gas from the so-called tight rock formations, putting it on
equal footing to gas from the best plays in the US. The company
is now targeting a cost of $2 to $3 per thousand cubic feet of
tight gas. Saudi Aramco is drilling in tight sands reservoirs
where permeability and porosity is greater than that of shale
formations but below that of conventional oil and gas bearing
sands. (GulfBase.com)
 Alhokair proposes doubling capital – Fawaz Abdulaziz
Alhokair & Company (Alhokair) has proposed doubling its capital
to SR2.1bn from SR1.05bn through a one-for-one bonus issue.
The company said it would convert reserves and retained
earnings into new shares for the capital boost, which is designed
to support the growth of the company. (Reuters)
 Saudi oil production reaches 9.78mn bpd in June 2014 –
According to sources, Saudi crude oil production rose to
9.780mn barrels per day (bpd) in June 2014, up from 9.705mn
bpd in May 2014. The world’s largest oil exporter supplied
9.745mn bpd to the market. The supply to the market may differ
from production depending on the movement of barrels in and
out of storage. Saudi Arabia typically increases production
during the hot summer months to meet a surge in electricity
demand. Supply from the OPEC averaged 29.93mn bpd, down
from 30mn bpd in May 2014, according to a survey based on
shipping data and information from sources at oil companies,
OPEC and consultants. (Reuters)
 BSF to distribute SR542.4mn dividend for 1H2014 – Banque
Saudi Fransi’s (BSF) board of directors has recommended the
distribution of 4.5% dividend (SR0.45 per share) amounting to
SR542.4mn for 1H2014. The dividend will be distributed on
August 12, 2014. (Tadawul)
 SABB reports net profit of SR1.16bn in 2Q2014 – The Saudi
British Bank (SABB) reported a net profit of SR1.16bn in
2Q2014 as compared to SR1bn in 2Q2013, reflecting an
increase of 15.19%. The bank’s net profit for 1H2014 reached
SR2.24bn from SR1.95bn, registering an increase of 14.61%.
EPS as of June 30, 2014 amounted to SR2.24 as against
SR1.95 a year earlier. The bank’s total assets stood at
SR175.47bn at the end of June 2014 as against SR161.94bn a
year ago. Loans & advances stood at SR112.7bn, while
customer deposits stood at SR138.3bn. (Tadawul)
 UAE Central Bank: Public sector outpaces private sector in
credit growth – According to data released by the UAE Central
Bank, public sector loan growth outpaced lending to the private
sector in 1Q2014. Public sector credit at the end of March 2014
rose by 17.5% QoQ and 52.15% YoY. In comparison, lending to
the private sector, including loans by non-bank financial
institutions, dipped 1.3% on a quarterly basis. Growth edged up
by 0.4% on an annual basis. A drop in lending by non-bank
financial institutions was the main driver of the weakness in
private sector credit growth. (GulfBase.com)
 UAE officially enters OECD as member – The UAE has
officially joined the Organization for Economic Co-operation and
Development (OECD), as a member. (GulfBase.com)

5. Page 5 of 7
 SCA plans to examine bank lending for share purchases –
The Securities and Commodities Authority (SCA) said that it is
planning to scrutinize bank lending on shares. SCA will review
and amend the regulations regarding lending by banks operating
in the UAE against shares if found necessary. (GulfBase.com)
 Moody’s: Dubai realty needs time to mature – According to a
report by rating agency Moody’s Investor Service (Moody’s), the
current real estate prices in Dubai are at the upper bound of
affordability for many end-users and the probability of a market
correction will increase if current market trends continue. The
ratings agency cautioned that potential market volatility is also
exacerbated by Dubai’s demographics, with a majority of the
estimated 2.1mn inhabitants being transient. The ratings agency
said that there is much room for improvement and the market
would need time to mature. The report said that a number of
lessons have been learned from the past, with banks being
cautious about providing mortgages for off-plan properties,
investors being more selective when dealing with property
developers and regulators recognizing the need to introduce
various measures. (GulfBase.com)
 GFH signs land sale agreement to develop new mixed‐use
residential development in Dubailand – Gulf Finance House
(GFH) has signed a land sale agreement with Dubai Properties
Group (DPG) to establish a new mixed‐use residential
development in Dubailand district. The project aims to establish
a high standard of residential, commercial & retail space and
facilities within Dubailand, which welcomed over 13mn visitors in
2013 and is already home to over 100,000 residents. The initial
development process is expected to be launched later this year
with the project to be completed over the next five years. (DFM)
 Emirates finalizes $56bn order for buying 150 Boeing 777X
planes – Emirates has finalized a $56bn order to buy 150
Boeing 777X jets. The deal includes purchase rights for an
additional 50 airplanes which, if exercised, could increase the
value to about $75bn at list prices. The Emirates' order was part
of the 777X launch at the Dubai Air Show in November 2013,
one of the largest product launches in commercial jetliner
history. Along with Emirates, Gulf carriers Etihad Airways and
Qatar Airways (QA) also announced deals for the plane, totaling
$100bn at list prices. Emirates and QA, which also ordered 50
777X jets, had jointly negotiated the deal at the Dubai Air Show.
However, it was not clear whether the Doha airline had finalized
its order yet. (Reuters)
 Abu Dhabi teams up with BP on water & energy
management – Abu Dhabi officials have partnered with BP to
map out how the emirate’s rapid economic growth will affect
future water and energy demand. The Abu Dhabi Regulation
and Supervision Bureau will use technology harnessed by BP to
visualize what different levels of development will mean for
water and energy supply. The tie-up with BP gives Abu Dhabi
officials access to the energy company’s program called the
Energy Sustainability Challenge, involving academics from 15
top universities around the world. Using a system developed at
the University of Cambridge called the Foreseer tool,
researchers have worked with governments of California, China
and the UK to forecast how different decisions can affect water,
land and energy supplies. With Abu Dhabi, the project will focus
on generating a model of future energy & water use based on
factors such as population growth and economic development.
(GulfBase.com)
 Etihad, Philippine Airlines sign strategic deal – Etihad
Airways and Philippine Airlines have signed a partnership
agreement that covers codeshare flights, loyalty program, airport
lounges, joint sales and marketing programs. Initially, the airline
partners will place their respective ‘PR’ and ‘EY’ codes on each
other’s Manila-Abu Dhabi flights to operate a combined total of
19 weekly flights between the two capitals. Etihad Airways will
also place its ‘EY’ code on Philippine Airlines flights from Manila
to 20 destinations throughout Philippines in the first phase,
increasing to 28 during 2014. The cooperation agreement also
covers a Philippines domestic air pass, cargo, and the
coordination of airport operations to provide a better guest
experience at their Abu Dhabi and Manila hubs. (Bloomberg)
 ADIA mulls stake sale – Abu Dhabi Investment Authority
(ADIA) is considering selling as much as $2bn in private-equity
fund stakes. ADIA, which invests on behalf of the government of
Abu Dhabi, has hired Cogent Partners to advice on the sale.
(Bloomberg)
 PDO extends Galfar's service contract – Petroleum
Development Oman (PDO) has granted Galfar Engineering and
Contracting Company a year’s extension for its North Oman off
plot delivery contract. The contract was awarded in May 2005
and has now been decided to extend it for another one year to
August 2015. The expected value of this extension is likely to be
around $100mn. Galfar had been carrying out this complex
project in the Northern regions of Oman involving several
locations like Fahud, Qarn Alam, Yibal and Lekhwair and
spanning an area greater than 200 square kilometers and
providing maintenance services in design, civil, mechanical,
electrical & instrumentation works. The project’s work involved
supporting oil production activities, with scope of work ranging
from wellhead location preparation works to providing flow lines,
pipelines and several such activities. (GulfBase.com)
 Bahrain plans $15.8mn shelter complex – Bahrain is planning
to construct a $15.8mn complex that will house six government
shelters to help abused children and distressed migrant workers.
The project will feature three new facilities – a men's shelter, a
center for child abuse victims and one for juveniles – and is
expected to be operational by 2017. Social Development
Ministry under-secretary for social welfare and rehabilitation, Dr.
Badriya Al Jeeb, said that the project is still in the initial stages
and is being financed by the $10bn Gulf Development Program.
(GulfBase.com)
 NBK: Bahrain economy expected to grow by 2.8% in 2014 –
According to a report released by the National Bank of Kuwait
(NBK), Bahrain's economy is expected to grow by 2.8% in 2014,
due to the growth in the oil sector and stability of the non-oil
sector. Economic growth continued to climb in 2013, when a
steep recovery in oil production offset the slowdown in non-oil
sector growth. Overall real GDP rose by 5.3% YoY in 2013, its
fastest pace in four years. Consumer price inflation in Bahrain
has been experiencing a downward trend since the beginning of
2014, amid a significant slowdown in both food and housing
prices. As a result, headline inflation is expected to slow from an
annual average of 3.2% in 2013 to 2.5% in 2014. According to
the report, the budget deficit almost doubled to $1.1bn in 2013,
to 3.3% of GDP, even as spending rose at its slowest rate since
2009. The deficit is expected to widen to around 5% over the
next two years, as current expenditures continue to rise and
softening oil prices drive revenues lower. According to the NBK
report, bank credit appears to have bottomed out and has been
gradually recovering since the end of 2013. (GulfBase.com)
 Alba increases production by 2.5% – Aluminium Bahrain
(Alba) has increased its production by 2.5% in 1H2014 to reach
464,012 metric tons as compared to 452,727 metric tons in
1H2013. The company’s sales figures topped 456,282 metric
tons, reflecting an increase of 1,852 metric tons as compared to
454,430 metric tons in 1H2013. In addition, Alba was able to

6. Page 6 of 7
sustain its value-added (VA) sales for this period with an
average of 65% as compared to 66% in 1H2013. Alba will
release its 2Q2014 financial results to the public on July 27,
2014. (Bahrain Bourse)
 KFH-Bahrain becomes official banking partner of BIC –
Kuwait Finance House - Bahrain (KFH-Bahrain) has become the
official banking partner of the Bahrain International Circuit (BIC)
under a strategic partnership agreement. KFH-Bahrain through
this agreement, sought to help BIC in its role of supporting
Bahrain's economy and boosting other sectors – tourism, sports
and transportation. (GulfBase.com)

7. 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 7 of 7
Rebased Performance Daily Index Performance
Source: Bloomberg Source: Bloomberg
Source: Bloomberg (*Market closed on 09 July 2014) Source: Bloomberg (*Market closed on 09 July 2014)
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
0.1%
1.3%
0.7%
0.5%
0.2%
(0.2%)
(0.0%)
(0.6%)
0.0%
0.6%
1.2%
1.8%
SaudiArabia
Qatar
Kuwait
Bahrain
Oman
AbuDhabi
Dubai
Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D% WTD% YTD%
Gold/Ounce 1,327.80 0.6 0.5 10.1 DJ Industrial 16,985.61 0.5 (0.5) 2.5
Silver/Ounce 21.13 0.4 (0.2) 8.5 S&P 500 1,972.83 0.5 (0.6) 6.7
Crude Oil (Brent)/Barrel (FM
Future)
108.28 (0.6) (2.1) (2.3) NASDAQ 100 4,419.03 0.6 (1.5) 5.8
Natural Gas (Henry
Hub)/MMBtu
4.15 (0.1) (3.3) (4.5) STOXX 600 339.96 (0.0) (2.3) 3.6
LPG Propane (Arab Gulf)/Ton 103.00 (0.2) (0.8) (18.6) DAX 9,808.20 0.4 (2.0) 2.7
LPG Butane (Arab Gulf)/Ton 123.00 (0.4) (0.8) (9.4) FTSE 100 6,718.04 (0.3) (2.2) (0.5)
Euro 1.36 0.2 0.3 (0.7) CAC 40 4,359.84 0.4 (2.4) 1.5
Yen 101.64 0.1 (0.4) (3.5) Nikkei 15,302.65 (0.1) (0.9) (6.1)
GBP 1.72 0.2 (0.0) 3.6 MSCI EM 1,060.93 (0.4) (0.1) 5.8
CHF 1.12 0.2 0.4 0.2 SHANGHAI SE Composite 2,038.61 (1.2) (1.0) (3.7)
AUD 0.94 0.2 0.5 5.6 HANG SENG 23,176.07 (1.6) (1.6) (0.6)
USD Index 79.99 (0.2) (0.3) (0.1) BSE SENSEX 25,444.81 (0.5) (2.0) 20.2
RUB 33.99 (0.8) (1.4) 3.4 Bovespa* 53,634.69 0.0 (0.8) 4.1
BRL* 0.45 0.0 (0.1) 6.7 RTS 1,403.72 0.7 3.2 (2.7)
182.7
152.3
137.9