1. Page 1 of 7
QE Intra-Day Movement
Qatar Commentary
The QE index rose 2.1% to close at 12,384.2. Gains were led by the Telecoms
and Transportation indices, gaining 3.9% and 3.3%, respectively. Top gainers
were Qatar Cinema & Film Distri. Co. and Qatar Islamic Bank, rising 9.4% and
7.1%, respectively. Among the top losers, Industries Qatar fell 2.2%, while Al
Ahli Bank declined 1.8%.
GCC Commentary
Saudi Arabia: The TASI index rose 1.0% to close at 9,678.5. Gains were led
by the Real Estate Dev. and Hotel & Tou. indices, rising 2.3% and 1.9%,
respectively. Alhokair Group and Umm Al-Qura Cement Co. rose 9.9% each.
Dubai: The DFM index gained 7.9% to close at 4,389.9. The Investment &
Financial Services index gained 13.4%, while the Services index rose 10.0%.
Gulf General Invest. Co. surged 15.0%, while Arabtec Holding was up 14.9%.
Abu Dhabi: The ADX benchmark index rose 5.0% to close at 4,806.8. The
Inv. & Financial Services index gained 14.5%, while the Real Estate index was
up 11.4%. Eshraq properties surged 14.9%, while Waha Capital gained 14.5%.
Kuwait: The KSE index gained 1.1% to close at 7,026.3. The Consumer
Goods and Banking indices rose 3.1% and 1.8%, respectively. Noor Financial
Investment gained 9.3%, while Palms Agro Production Co. was up 9.1%.
Oman: The MSM index rose 0.1% to close at 7,024.8. Gains were led by the
Financial and Industrial indices, rising 0.5% and 0.1%, respectively. Al Madina
Takaful gained 6.8%, while Oman Fisheries was up 3.4%.
Bahrain: The BHB index gained 0.3% to close at 1,430.6. The Industrial index
rose 0.9%, while the Commercial Banking index was up 0.6%. National Bank
of Bahrain and Ahli United Bank gained 1.3% each.
Qatar Exchange Top Gainers Close* 1D% Vol. ‘000 YTD%
Qatar Cinema & Film Distri. Co. 49.45 9.4 0.2 23.3
Qatar Islamic Bank 93.50 7.1 357.5 35.5
Medicare Group 85.40 6.8 178.5 62.7
Qatar International Islamic Bank 83.00 5.7 142.0 34.5
Ezdan Holding Group 22.51 5.2 4,687.1 32.4
Qatar Exchange Top Vol. Trades Close* 1D% Vol. ‘000 YTD%
Vodafone Qatar 18.15 5.1 6,228.2 69.5
Ezdan Holding Group 22.51 5.2 4,687.1 32.4
Masraf Al Rayan 51.50 3.0 3,337.8 64.5
Mazaya Qatar Real Estate Dev. 17.58 3.8 1,882.1 57.2
Qatar Gas Transport Co. 22.11 5.1 1,179.5 9.2
Market Indicators 02 Jul 14 01 Jul 14 %Chg.
Value Traded (QR mn) 949.8 848.9 11.9
Exch. Market Cap. (QR mn) 678,137.4 666,761.2 1.7
Volume (mn) 25.4 20.9 21.8
Number of Transactions 10,172 9,953 2.2
Companies Traded 42 41 2.4
Market Breadth 31:10 40:1 –
Market Indices Close 1D% WTD% YTD% TTM P/E
Total Return 18,470.98 2.1 4.8 24.6 N/A
All Share Index 3,145.78 1.7 4.4 21.6 15.1
Banks 3,034.66 2.5 7.2 24.2 15.1
Industrials 4,147.09 (0.6) 1.7 18.5 16.2
Transportation 2,167.11 3.3 2.2 16.6 13.9
Real Estate 2,603.00 2.9 5.8 33.3 13.0
Insurance 3,419.39 0.5 0.3 46.4 8.9
Telecoms 1,572.16 3.9 2.8 8.1 21.7
Consumer 6,746.68 1.5 2.2 13.4 26.5
Al Rayan Islamic Index 4,120.14 2.4 4.6 35.7 17.8
GCC Top Gainers##
Exchange Close#
1D% Vol. ‘000 YTD%
Arabtec Holding Co. Dubai 3.31 14.9 271,196.3 61.5
Dubai Financial Market Dubai 2.87 14.8 75,546.5 16.2
Drake & Scull Int. Dubai 1.48 14.7 102,655.5 2.8
Deyaar Development Dubai 1.10 14.6 137,312.6 8.9
Ajman Bank Dubai 2.60 13.0 10,702.2 4.8
GCC Top Losers##
Exchange Close#
1D% Vol. ‘000 YTD%
National Mobile Tele. Kuwait 1.68 (3.5) 5.3 (4.6)
Saudi Cement Saudi Arabia 111.42 (3.4) 145.0 9.8
Industries Qatar Qatar 172.00 (2.2) 190.9 1.8
Abu Dhabi Nat. Energy Abu Dhabi 1.08 (1.8) 11.4 (26.5)
Al Ahli Bank Qatar 50.10 (1.8) 4.3 18.4
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%
Industries Qatar 172.00 (2.2) 190.9 1.8
Al Ahli Bank 50.10 (1.8) 4.3 18.4
Widam Food Co. 53.10 (1.7) 68.7 2.7
Salam International Investment Co 16.35 (1.4) 1,030.4 25.7
Qatar National Cement Co. 133.00 (1.3) 6.0 11.8
Qatar Exchange Top Val. Trades Close* 1D% Val. ‘000 YTD%
Masraf Al Rayan 51.50 3.0 171,856.4 64.5
Vodafone Qatar 18.15 5.1 111,729.5 69.5
Ezdan Holding Group 22.51 5.2 106,486.7 32.4
QNB Group 177.00 1.6 89,376.1 2.9
Doha Bank 57.00 0.4 45,058.6 (2.1)
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* 12,384.24 2.1 4.8 7.8 19.3 260.90 186,284.3 15.4 2.1 4.1
Dubai 4,389.94 7.9 4.0 11.3 30.3 817.33 86,213.9 17.6 1.7 2.4
Abu Dhabi 4,806.75 5.0 1.7 4.2 10.5 150.72 133,857.5 14.0 1.8 3.5
Saudi Arabia 9,678.51 1.0 1.1 1.7 13.4 1,734.42 527,768.8 19.3 2.4 2.9
Kuwait 7,026.29 1.1 0.6 0.8 (6.9) 62.29 111,258.3 16.7 1.1 4.0
Oman 7,024.77 0.1 1.2 0.2 2.8 14.90 25,997.8 12.1 1.7 3.9
Bahrain 1,430.56 0.3 (0.1) 0.2 14.5 0.25 53,475.8 11.2 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)
12,100
12,200
12,300
12,400
12,500
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 2.1% to close at 12,384.2. The Telecoms and
Transportation indices led the gains. The index rose on the back
of buying support from non-Qatari shareholders despite selling
pressure from Qatari shareholders.
 Qatar Cinema & Film Distri. Co. and Qatar Islamic Bank were the
top gainers, rising 9.4% and 7.1% respectively. Among the top
losers, Industries Qatar fell 2.2%, while Al Ahli Bank declined
1.8%.
 Volume of shares traded on Wednesday rose by 21.8% to
25.4mn from 20.9mn on Tuesday. Further, as compared to the
30-day moving average of 21.9mn, volume for the day was
16.3% higher. Vodafone Qatar and Ezdan Holding Group were
the most active stocks, contributing 24.5% and 18.4% to the total
volume respectively.
Source: Qatar Exchange (* as a % of traded value)
Global Economic Data
Global Economic Data
Date Market Source Indicator Period Actual Consensus Previous
07/02 US MBA MBA Mortgage Applications 27 June -0.20% – -1.00%
07/02 US IPSOS Public Affairs RBC Consumer Outlook Index July 50.5 – 51.0
07/02 US ADP ADP Employment Change June 281K 205K 179K
07/02 EU Eurostat PPI MoM May -0.10% 0.00% -0.10%
07/02 EU Eurostat PPI YoY May -1.00% -1.00% -1.20%
07/02 UK Markit Markit/CIPS UK Construction PMI June 62.6 59.8 60.0
07/02 Spain Spanish Labour Ministry Unemployment MoM Net ('000s) June -122.7 -150.1 -111.9
07/02 Japan Bank of Japan Monetary Base YoY June 42.60% – 45.60%
Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted)
News
Qatar
 QNB Capital appoints new CEO – The Board of Directors of
QNB Capital, the investment banking subsidiary of QNB Group
(QNBK), has appointed Mira Hamad Abdullah Al Attiyah as its
Chief Executive Officer. Ms. Al Attiyah had recently held the
position of assistant undersecretary for trade at the Ministry of
Economy and Commerce. She has been occupying several
senior positions within the ministry and at the Supreme Council
for Information and Communication Technology. She was also a
key member of several national committees in the business and
investment sector. QNB Capital provides a wide range of
services to corporations, government and institutional clients
locally and globally. (Gulf-Times.com)
 CBQK initiates squeeze-out process at its Turkish
subsidiary Alternatifbank – The Commercial Bank of Qatar
(CBQK), Anadolu Endustri Holding and Anadolu Motor Uretim
ve Pazarlama holding 74.25%, 17.21% and 7.79% shares of
Alternatifbank (ABank), Turkey, respectively, have initiated a
formal squeeze-out process pursuant to which CBQK will
acquire a further 0.75% shares of ABank from the Bourse
Istanbul. The necessary application regarding the squeeze out,
and simultaneous delisting from Bourse Istanbul, has been
submitted to ABank's board of directors on July 1, 2014. In
accordance with the applicable laws of Turkey, the purchase
price of the shares acquired through the squeeze out is
expected to be the average price over the last 30 days. (QE)
 QIBK and Bank Asya end exclusive talks over stake sale –
According to sources, Qatar Islamic Bank (QIBK) and Turkey's
Bank Asya have ended exclusive talks over the former acquiring
a stake in Bank Asya due to valuation concerns. Turkish state
bank Ziraat Bank may now be the most likely partner for Bank
Asya, but the two banks have not officially begun talks.
(Reuters)
 Turkey-based Anel Elektrik’s unit inks QR169.3mn LOI for
road project in Qatar – Turkey-based Anel Elektrik’s unit,
Anelmep Maintenance & Operation, has signed QR169.3mn
letter of intent (LOI) to carry out electrical and mechanical works
related to the Al Rayyan road construction & development
project in Qatar. Anelmep Maintenance & Operation has inked
the agreement with the project’s main contractor Dogus Onur JV
– a joint venture between Turkish companies Dogus and Onur.
The project envisages the construction of a 10.7 km long road
section and is expected to be completed in 1Q2017.
(Bloomberg)
 HPS to supply integrated control and safety system for
QAFAC’s plant – Qatar Fuel Additives Company (QAFAC) has
selected the UK-based Honeywell Process Solutions (HPS) to
supply a new integrated control & safety system for its Mesaieed
Industrial City plant, 50 kilometers south of Doha. The
upgradation work will help the plant reduce operating costs and
improve efficiencies as it scales up production of methanol and
MTBE (methyl tertiary butyl ether), a key gasoline additive that
reduces tailpipe. HPS’s integrated control & safety solution,
including a new fire and gas system, will improve automation at
the plant, increase cyber security, and enhance operator
effectiveness. QAFAC will also benefit from the ongoing long-
term services through Honeywell's lifecycle support. QAFAC is a
joint venture between Industries Qatar (IQCD), OPIC Middle
East, LCY and IOL. (Bloomberg)
 Total E&P Qatar sees potential in offshore Al Khalij oilfield,
signs agreement with QP – Total E&P Qatar sees interesting
potential in the offshore Al Khalij oilfield, for which it has signed
Overall Activity Buy %* Sell %* Net (QR)
Qatari 62.08% 63.70% (15,367,480.21)
Non-Qatari 37.92% 36.30% 15,367,480.21

3. Page 3 of 7
an agreement with Qatar Petroleum (QP) to form a JV for 25
years from 2014. Under the terms of this new JV, QP and Total
hold 60% and 40% interest, respectively, in the oilfield. Total
continues to operate the oilfield. Total E&P Qatar’s Managing
Director and Group representative Guillaume Chalmin said that
the JV intends to enhance oil recovery as much as possible from
this mature offshore oilfield. (Gulf-Times.com)
 DHBK to disclose results on July 16, 2014 – Doha Bank
(DHBK) will disclose its financial reports for the period ending
June 30, 2014, on July 16, 2014. (QE)
 KCBK to announce results on July 17, 2014 – Al Khalij
Commercial Bank (KCBK) will announce its financial reports for
the period ending June 30, 2014, on July 17, 2014. (QE)
 VFQS wins Golden CSR award – The Arab Organization for
Social Responsibility has recently recognized Vodafone Qatar
(VFQS) with the Golden Corporate Social Responsibility (CSR)
award. Vodafone Qatar has recently launched the fourth edition
of its annual program, World of Difference, which gives financial
grants to a number of people to carry out their creative ideas
that generate tangible benefits for the community. (Gulf-
Times.com)
 QA named official carrier of IASP 2014 – The Qatar Science
& Technology Park (QSTP) has announced that Qatar Airways
(QA) will be the official carrier of the International Association of
Science Parks and Areas of Innovation’s (IASP) 31st Annual
World Conference (IASP 2014 Doha). IASP 2014 Doha is a
global gathering of science parks, entrepreneurs and policy
makers. As the event’s official carrier, QA will help bring roughly
1,000 leading government, business and technology innovation
delegates from 45 countries to Qatar. (Gulf-Times.com)
International
 Yellen says rate policy shouldn’t change over instability –
Federal Reserve Chairman Janet Yellen said there is no need to
change the current monetary policy to address the financial
stability concerns although she sees “pockets of increased risk-
taking” in the financial system. In a comprehensive salvo into the
worldwide debate among central bankers over whether interest
rates are a first-order tool to curb financial excess, Yellen came
down against that idea and favored regulatory mechanisms.
Yellen added that the monetary policy faces significant
limitations as a tool to promote financial stability. She said that
the policy’s effects on financial vulnerabilities, such as excessive
leverage & maturity transformation, are not well understood and
are less direct than a regulatory or supervisory approach. Yellen
stated that the “primary role” should fall to a macroprudential
approach, a combination of multiagency oversight, attention to
bank capital & liquidity, and regulatory pressure to create buffers
against failure. (Bloomberg)
 Moody's Analytics: US wage growth seen modest into 2016
– Moody's Analytics' chief economist Mark Zandi said US wage
growth will likely remain modest into 2016 even as employers
have ramped up hiring in recent months. Zandi projected the
average domestic wages to likely increase at a 2.5% pace in
2015 and 3.0% in 2016, as compared to the current 2.0% rate.
Zandi said while wage growth is expected to remain "spotty" in
the next couple of years, there are signs of rising salaries in
certain regions of the US and high-paying sectors where there is
a scarce supply of qualified workers. The pace of pay increases
is expected to accelerate when the economy achieves full
employment, which he expects will occur in 2016. Earlier, the
ADP National Employment Report, which Moody's jointly
developed with ADP, showed the US private sector added
281,000 jobs last month, marking the biggest monthly rise since
November 2012. (Reuters)
 Markit : UK construction PMI hits four-month high in June –
Industry data showed a surge in home-building helped British
construction activities to grow at its fastest annual pace in four
months in June, bucking expectations for a slowdown. The
monthly Markit/CIPS purchasing managers' index (PMI) for the
construction sector rose to 62.6 in June from 60.0 in May, its
highest level since February and well above the forecast for a
fall to 59.5. Readings above 50 represent a YoY growth in
activities, and those below 50 point to contraction. The
equivalent manufacturing survey on Tuesday also beat
expectations, driving sterling to its highest level in nearly six
years and bolstering expectations that the Bank of England
would raise interest rates this year. The construction survey
showed the fastest pace in hiring in the sector since 1997.
Official data released last week showed that Britain's
construction output rose by 1.5% in the first three months of
2014 and was 6.7% higher than a year earlier - the biggest
annual rise in three years. The PMI figures pointed to ongoing
momentum in the sector, with new orders coming in at the
fastest rate since January. (Reuters)
 China's official services PMI eases slightly to 55 in June –
Government data showed growth in China's services sector
edged down from a six-month high in June, with the purchasing
manufacturing index (PMI) for the industry slipping to 55. That
compares with a reading of 55.5 in May, according to the
National Bureau of Statistics. A reading above 50 in PMI
surveys indicates growth on a monthly basis, while an outcome
below the threshold points to a contraction in activity. More
economic indicators are suggesting that the world's second-
largest economy is steadying as a flurry of government stimulus
measures start to kick in. The results in other similar surveys of
Chinese factories earlier in the week have also been upbeat.
(Reuters)
 Premier Li says downward pressure still exists for Chinese
economy – China's Premier Li Keqiang said downward
pressure still existed in its economy despite it operating within a
reasonable range and some leading indicators demonstrating a
positive trend. China's factory activities hit multi-month highs in
June, official and private surveys showed on Monday,
reinforcing signs that the world's second-largest economy is
steadying as the government steps up policy support. Li gave no
figures or details and few direct quotes in the comments on the
Chinese government's official website, but also addressed the
disconnect between government finances and the difficulty of
business getting financing. Li said the country is finding it harder
and more expensive to finance firms in the real economy. He
further added that these costs must be decreased, especially for
small and medium enterprises. The government has unveiled a
series of modest stimulus measures in recent months to give a
lift to economic growth, which dipped to an 18-month low of
7.4% in the first quarter, China's slowest annual growth since
the third quarter of 2012. (Reuters)
 China frees spreads on retail Yuan rate in reform step –
China will permit banks to set their own exchange rates for the
Yuan against the dollar in deals with clients, in a further step to
relax controls to make the currency more market-driven. The
world's second-largest economy seeks to widen the use of the
Yuan in global trade and freeing up its tightly-controlled currency
is a pre-requisite for wider market liberalization. Beijing has
pledged to free up interest rates and currency controls
eventually to help put its economy on a more sustainable
footing, but such changes have so far been gradual. Effective
Wednesday, banks can set the Dollar/Yuan exchange rate in

4. Page 4 of 7
their over-the-counter deals based on market demand, the
foreign exchange regulator said in a statement. Before the
move, the spread in banks' Dollar/Yuan buying and selling
prices had been subject to regulatory controls. The State
Administration of Foreign Exchange (SAFE) has already
scrapped controls on spreads for banks' retail exchange rates
between Yuan and non-dollar currencies. (Reuters)
Regional
 STC joins Telecom Council of Silicon Valley – Saudi
Telecom Company (STC) has joined the Telecom Council of
Silicon Valley for business development, collaboration and
education. The Telecom Council of Silicon Valley connects
companies and individuals involved in the communications
technology industry with one another. STC is the first telecom
company in the Middle East to join the Telecom Council of
Silicon Valley, which includes over 100 member companies,
including more than 25 fixed and wireless operators across the
globe. (GulfBase.com)
 Accor, Munshaat sign management deal for ZamZam
Pullman Madinah – Accor Hotel Services Middle East and
Munshaat for Projects & Contracting Company have signed a
management agreement for a new upscale Pullman hotel in
Madinah. The five-star ZamZam Pullman Madinah will consist of
two towers, comprising a total of 834 rooms and suites in the
holy city. The construction of the ZamZam Pullman Madinah is
in an advanced stage and is scheduled to be opened by
September 2014. The ZamZam Pullman Madinah is located 150
meters away from the Holy Mosque. (GulfBase.com)
 SAMA: Saudi insurance premiums up 19% to SR25bn –
According to a report based on Saudi Arabian Monetary Agency
(SAMA) data, the value of insurance premiums in the Saudi
market rose by 19.2% to reach SR25.2bn in 2013 as compared
to SR21.2bn in 2012. The health insurance sector, which
represented 51% of the insurance market, grew by 14.3% to SR
12.9bn as compared to SR11.3bn in 2012. Growth in general
insurance, which represented 46% of the insurance market,
reached 27.8% to SR11.5bn as compared to SR9bn in 2012,
whereas growth in protection and saving insurance sector,
which represented 3% of the insurance market, dropped by 5%
to SR845mn in 2013 as compared to SR889mn in 2012. As
regards claims, the report said the value of claims substantially
grew to SR15.9bn in 2013 as compared to SR10.9bn in 2012, or
an increase of 45.8%. The number of settled claims in a three-
year period (2010-2013) rose by 36.5%, whereas insurance
premiums rose by only 21% over the same period, which has
negatively affected the operating income of the companies in
general. (GulfBase.com)
 Zain Saudi, Huawei sign new Reload Contract agreement –
Mobile Telecommunications Company Saudi Arabia (Zain
Saudi) and Huawei have signed a new Reload Contract
agreement, aimed at advancing its network infrastructure,
managed services and applications in Saudi Arabia. Under the
terms of the new agreement, Huawei will work closely with Zain
Saudi to improve its technologies and extend its customer
service offering for Saudi users. The contract includes Zain’s
network new FTK, expansion, modernization and managed
services. It also includes the provisions of all related products
and services for Zain’s network in Saudi Arabia. (GulfBase.com)
 TVTC signs technology agreement with Mobily, Microsoft
Saudi Arabia – Technical and Vocational Training Corporation
(TVTC) has signed a MoU with Etihad Etisalat Company
(Mobily) and Microsoft Saudi Arabia to raise the level of using
technology in the educational process in the TVTC colleges and
in pursuit of enhancing productivity levels & better qualify
students for the labor market. Under the terms of the agreement,
tablet computers will be provided to the trainees with productivity
applications to upgrade the level of students’ productivity
necessary for the labor market. (GulfBase.com)
 Saudi Aramco’s subsidiary to buy 28.4% stake in South
Korea-based S-Oil Corporation – Saudi Arabian Oil
Company’s (Saudi Aramco) Netherlands-based subsidiary –
Aramco Overseas Company (AOC) – has agreed in principle to
buy 28.4% stake in South Korea-based S-Oil Corporation from
Hanjin Group, for a purchase consideration of about $1.95bn.
This acquisition will increase AOC's ownership of S-Oil to 63.4%
from 34.99%. (Reuters)
 SCC updates on capital increase – Saudi Cable Company
(SCC) revealed its stance on the proposal of capital increase by
stating that it is the process of finalizing the restructuring of its
obligations with lenders, which it expects to complete before the
end of 2Q2014. The company after completing the financial
restructuring and meeting the Capital Market Authority’s (CMA)
requirements, will initiate the process of applying to the CMA for
the capital increase through a rights issue. (Tadawul)
 SEC orders transformers worth $78mn from ABB – ABB, a
Zurich-based power and automation technology group, has won
an order worth $78mn from Saudi Electricity Company (SEC).
ABB will supply transformers for two new combined-cycle power
plants that will boost transmission capacity in Riyadh and
surrounding areas of the Central Region. The order was booked
in the 2Q2014. ABB will deliver generator step-up (GSU)
transformers, power transformers and station service
transformers for SEC’s combined-cycle power plants. Saudi
Arabia plans to boost power-generation capacity by more than
50% by 2020 – from less than 60GW to approximately 91GW.
(GulfBase.com)
 Tadawul deposits Al-Ahlia’s tradable rights – The Saudi
Stock Exchange (Tadawul) announced that the tradable rights
for Al-Ahlia Insurance Company have been deposited into
applicable investors’ portfolios on July 1, 2014. (Tadawul)
 RFIB appoints General Manager of RFIB Saudi Arabia –
RFIB Group Limited, the international Lloyd's insurance &
reinsurance broker, has appointed Hassan El Kaissi as General
Manager of RFIB Saudi Arabia. Hassan brings over 20 years of
experience in the Middle East reinsurance market to his new
role. He had earlier served Zurich Insurance, as the head of its
mid market segment in the Middle East. (Bloomberg)
 Midad, Tech Mahindra to establish new 51:49 JV entity –
Saudi-based Midad Holding, wholly-owned by Al Fozan Group
and India-based information technology (IT) company, Tech
Mahindra have entered into an agreement to establish a new
joint venture (JV) entity, Tech Mahindra Arabia (TMA). TMA will
provide a gamut of IT and IT-enabled services (ITES) to cater to
the established and emerging sectors in KSA. The JV would aim
to provide services in the areas of consulting, application
development & management, network services, integration,
engineering, managed services, remote infrastructure
management, operational & maintenance services and business
process outsourcing. Midad will hold a 51% stake, while the
remaining 49% will be held by Tech Mahindra. (Bloomberg)
 SCTA signs contract worth SR12mn – Saudi Commission of
Tourism and Antiquities (SCTA) has signed a project contract
worth about SR12mn with a national company for operating
tourist information centers in Saudi Arabia for three years.
(Bloomberg)
 Tarmac signs MoU with Etihad Rail – Tarmac Middle East has
signed a MoU with Etihad Rail, the developer and operator of

5. Page 5 of 7
the UAE’s national railway. The MoU will enable Tarmac Middle
East to utilize Etihad Rail operations for the distribution of its
products from its local arm, Al Futtaim Tarmac Quarry Product
Company to Etihad Rail’s distribution and export terminals
across the UAE. It will also enable the distribution to other GCC
counties once Etihad Rail completes its connection to the
mainline GCC rail network at the end of 2018. This will help
Tarmac to reduce operating costs and enhance transit times.
The agreement will also provide Etihad Rail with additional
volumes of bulk commodities transport capability from its export
terminals to other locations within the UAE. It is expected that
the volume to products Tarmac Middle East will transport by
2020 via Etihad Rail will reach 6mn tons. (GulfBase.com)
 MEED: Construction contracts worth $15bn awarded in UAE
in 1H2014 – According to data released by MEED Projects,
contracts worth $15bn were awarded in 1H2014 for projects
valued at more than $30mn in the UAE’s civil construction
sectors. More than 50 contracts, worth a total of over $5.4bn,
were for newly-announced or recovered residential projects, and
$3.8bn was for mixed-use projects. The civil construction
projects represented 75% of all awards in the UAE in 1H2014. In
Dubai, 44 major residential projects sector contracts totaling
$4.8bn were awarded in 1H2014. Abu Dhabi, with six projects
worth a total of $500mn, had the second highest level of
residential sector awards measured by value. The top six
contractors measured by value of contracts awarded in the six-
month period all netted over $500mn worth of contracts. Arabian
Construction Company and Arabtec topped the list with over
$1bn each. Over $15bn worth of buildings’ projects have been
recovered, with nearly 80% of these in the mixed-use and
residential sub-sectors, while around $9bn worth of civil sector
projects have changed from on hold to active status in the six-
month period. (Bloomberg)
 DME launches new trading mechanism – The Dubai
Mercantile Exchange (DME) has launched a new trading
mechanism, Trade at Marker (TAM), for customers of the DME
Oman crude oil futures contract. TAM will allow DME customers
to buy and sell oil at a price directly linked to DME’s 12:30pm
Marker Price. The average of the month’s Marker Prices on
DME is the basis of the crude oil export price of the Sultanate of
Oman and the Emirate of Dubai, making the DME Marker Price
one of the world’s key energy benchmarks. The ability to trade
the Marker Price directly will be extremely useful to investors
who want exposure to Oman and Dubai‘s crude oil export price,
but who may not necessarily want to trade during DME’s
settlement window. The TAM trading mechanism can be traded
on a daily basis for the front three months of the DME Oman
crude oil contract. (GulfBase.com)
 DP commences handover of mixed-use development Bay
Square – Dubai Properties (DP), the development company of
Dubai Properties Group (DPG), has commenced the handover
process at its popular mixed-use Bay Square development in
Business Bay. Bay Square has become one of Dubai’s most
sought-after developments, recording a sell-out response when
it was launched for sale in 2013 which prompted huge demand
for other similar projects in Business Bay. Bay Square
comprises thirteen low-rise buildings which include residential,
commercial, retail units and a hotel facing a landscaped
courtyard. DP has commenced handovers with new owners of
up to 570 commercial units, covering 1mn square ft, in Bay
Square, and with new tenants of over 120 retail units at the
podium level. (GulfBase.com)
 HSBC: Arabtec needs to hire 17,500 staff to clear AED60bn
backlog – According to a research report by HSBC, Arabtec
Holding’s ability to meet its ambitious growth strategy could be
seriously hampered by a lack of executive and middle-
management talent in the wake of the crisis that has swept the
contracting company in recent weeks. The report says that the
company needs to hire an additional 17,500 employees to
execute its backlog until 2017, believed to be standing at more
than AED60bn. The report also says Arabtec would have to
outsource as much as 25 per cent of its order backlog.
(GulfBase.com)
 Arabtec says it has Aabar’s backing; no projects scrapped
– Arabtec has retained the support of its major shareholder
Aabar Investments and announced that the company has not
cancelled any projects as a result of recent management
changes and a restructuring of the firm. Earlier Aabar diluted its
stake in Arabtec to 18.94% from 21.57%, raising doubts over its
willingness to support the company. (Reuters)
 NBAD launches liquidity management fund – The National
Bank of Abu Dhabi (NBAD) has launched the Cash Plus Fund, a
fund designed to offer liquidity, capital preservation and yield
enhancement. The NBAD Cash Plus Fund allows investors to
benefit from higher rates than conventional deposits and avail
liquidity. The Fund is designed for corporates, institutions and
high net worth individuals (HNWI) and suits clients, who would
like to benefit from higher returns on cash without giving up their
liquidity position. NBAD Cash Plus enhances cash yield through
investments into sophisticated money market instruments that
are otherwise not accessible to investors; and allows them to
retain the flexibility to access their investments on a daily basis.
NBAD Cash Plus Fund is open for subscriptions in the form of
private placements with a minimum subscription of AED250,000
with multiples of AED100,000 thereafter. The Fund is an open-
ended, actively managed product, which aims to provide a yield
in excess of overnight deposits, with income distributed daily in
the form of additional units. The Fund aims to capture the best
opportunities available to investors by investing in a range of
high quality money market instruments in the UAE and wider
MENA region, in addition to Asia and Europe. (GulfBase.com)
 Kuwait: CPI inflation at 2.9% in May 2014 – Kuwait’s inflation
in the consumer price index (CPI) rose from 2.7% YoY in April
2014 to 2.9% YoY in May 2014 – the marginal rise in inflation
was mostly driven by core inflation (excluding food), which also
climbed from 2.7% YoY in April 2014 to 2.9% YoY in May 2014,
making it currently on par with the overall inflation rate. The rise
in core inflation primarily stemmed from YoY rises in clothing &
footwear prices and furnishing & household maintenance costs.
Food price inflation remained largely unchanged, slowing
marginally from 2.9% YoY in April 2014 to 2.8% YoY, while
inflation in housing rents was steady at 4.6% YoY, unchanged
from April 2014. Pressures in the three other major components
of the CPI - clothing, furnishings and other goods & services
resumed their upward trajectory in May 2014. Inflation is
expected to average 3.0% in 2014, amid firm pressures from the
housing sector. (GulfBase.com)
 CBO: Omani Commercial banks’ profits climb 15.1% –
According to the Central Bank of Oman’s (CBO) annual report,
the net profits of commercial banks operating in the Sultanate
rose 15.1% to OMR351.3mn in 2013 after provisions and taxes
from OMR305.3mn in 2012. Of the total profits, local banks’
share stood at OMR337.8mn at 96.2%, while that of foreign
banks amounted to OMR13.5mn at 3.8%. Interest income
remained the dominant component of bank revenues accounting
for 73.3% of the total income in 2013. At OMR841.1mn, interest
income stood higher by 6.5% over the previous year. On the
other hand, interest expenses accounted for 39.1% of total
expenditure in 2013 as compared to 40.1% in the previous year.
However, interest expenses registered an increase of 6.7% from

6. Page 6 of 7
OMR240.3mn in 2012 to OMR256.5mn in 2013. Net interest
income increased from OMR549.4mn in 2012 to OMR584.6mn
in 2013, reflecting a rise of 6.4% over the year. The ratio of
operating expenses to total expenses stood at around 60% over
2011-2013. Provision for taxes increased by 21.2% to
OMR50.3mn in 2013. Cash dividends paid out by local banks to
shareholders increased by 9.2% in 2013 to OMR120.5mn as
compared to OMR110.3mn in the previous year. Stock
dividends, too, rose by 18.7% over the year to OMR64.2mn.
(GulfBase.com)
 KFH: Bahrain introduces new personal financing product –
Kuwait Finance House-Bahrain (KFH-Bahrain) has launched a
new personal financing product, Tamweely. The first-of-its-kind
Shari’ah compliant Tawarruq facility, Tamweely, allows
customers to take financing up to BHD100,000 and enjoy a
generous repayment period of up to 84 months. The facility is
based on the international commodity trading of palm oil and is
offered in partnership with one of its international brokers at the
Malaysia bourse. According to an Islamic finance expert,
Tawarruq is a transaction where one party buys some goods on
credit at a marked-up price and sells the same at a lesser value
for the purpose of getting cash. (GulfBase.com)
 CIO: Bahrain's economy registers growth – According to the
Central Informatics Organization’s (CIO) statistics, Bahrain's real
economic growth increased to 3.1% in fixed prices and 1.4% at
current prices in 1Q2014 as compared to 1Q2013. The oil sector
grew by 4.1% at constant prices but dropped 0.7% at current
prices, while the non-oil sector increased by approximately 2.9%
and 2.1% at constant and current prices respectively. The
financial projects also registered a growth rate of 1.9% at
constant prices and 1.5% at current prices. The construction
activities grew by 1.5% at constant and current prices
respectively, while the real estate activities rose by about 3.1%
at constant prices and 4% at current prices. The transportation
and telecommunications sectors grew by 4.5% at fixed prices
and 5.3% at current prices, while manufacturing industries rose
by 0.8% at fixed prices and 2.9% at current prices. The CIO
periodical report also showed government-funded projects
growing by 2.4% at fixed prices and about 2.3% at current
prices. Electricity & water sector registered a 3.5% growth at
fixed prices and 3.8% at current prices. Agricultural & fishing
activities increased by 1.1% and 1.2% at fixed and current
prices respectively. Bahrain's GDP grew by 0.1% at fixed prices,
but dropped by 3.2% at current prices in 1Q2014 as compared
to 4Q2013. The oil sector dropped by 7.6% at constant prices
and 10% at current prices, while the non-oil sector soared by
2.3% at constant prices but recorded a 0.7% drop at current
prices. (GulfBase.com)
 CBB’s monthly issue of treasury bills oversubscribed by
402% – The Central Bank of Bahrain (CBB) has announced that
the BHD30mn monthly issue of Government T-Bills has been
oversubscribed by 402%. The bills, carrying a maturity of 182
days, are issued by the CBB, on behalf of the Kingdom of
Bahrain. The issue date of the bills is July 6, 2014 and the
maturity date is January 4, 2015. The weighted average rate of
interest is 0.73% as compared to 0.79% for the previous issue
on June 8, 2014. The approximate average price for the issue
was 99.63%, with the lowest accepted price being 99.622%.
With this, the total outstanding value of Government Treasury
Bills is BHD1.230bn. (Bloomberg)
 Bahrain Steel launches $340mn seven-year loan – Bahrain
Steel launched a $340mn seven-year syndicated loan. Arab
Banking Corporation, HSBC and Mashreqbank acted as
bookrunners, lead arrangers and underwriters for the
transaction. The company intends to use the proceeds to repay
debt and for general corporate purposes. (Bloomberg)

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 Source: Bloomberg
80.0
90.0
100.0
110.0
120.0
130.0
140.0
150.0
160.0
170.0
180.0
190.0
200.0
210.0
Jul-10 Jul-11 Jul-12 Jul-13 Jul-14
QE Index S&P Pan Arab S&P GCC
1.0%
2.1%
1.1%
0.3% 0.1%
5.0%
7.9%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
SaudiArabia
Qatar
Kuwait
Bahrain
Oman
AbuDhabi
Dubai
Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D% WTD% YTD%
Gold/Ounce 1,326.86 0.0 0.8 10.1 DJ Industrial 16,976.24 0.1 0.7 2.4
Silver/Ounce 21.16 0.6 0.9 8.7 S&P 500 1,974.62 0.1 0.7 6.8
Crude Oil (Brent)/Barrel (FM
Future)
111.24 (0.9) (1.8) 0.4 NASDAQ 100 4,457.73 (0.0) 1.4 6.7
Natural Gas (Henry
Hub)/MMBtu
4.39 (0.9) 0.3 1.1 STOXX 600 345.68 0.2 1.1 5.3
LPG Propane (Arab Gulf)/Ton 104.75 (1.2) (2.2) (17.2) DAX 9,911.27 0.1 1.0 3.8
LPG Butane (Arab Gulf)/Ton 125.00 (0.8) (1.4) (7.9) FTSE 100 6,816.37 0.2 0.9 1.0
Euro 1.37 (0.1) 0.1 (0.6) CAC 40 4,444.72 (0.4) 0.2 3.5
Yen 101.77 0.2 0.3 (3.4) Nikkei 15,369.97 0.3 1.8 (5.7)
GBP 1.72 0.1 0.8 3.7 MSCI EM 1,060.57 0.9 1.4 5.8
CHF 1.13 (0.1) 0.2 0.5 SHANGHAI SE Composite 2,059.42 0.4 1.1 (2.7)
AUD 0.94 (0.6) 0.2 5.9 HANG SENG 23,549.62 1.5 1.4 1.0
USD Index 79.96 0.2 (0.1) (0.1) BSE SENSEX 25,841.21 1.3 3.0 22.1
RUB 34.35 0.0 1.8 4.5 Bovespa 53,028.78 (0.3) (0.2) 3.0
BRL 0.45 (0.9) (1.3) 6.4 RTS 1,390.47 2.1 0.8 (3.6)
178.0
150.6
136.4