1. QE Intra-Day Movement Market Indicators 31 Dec 12 30 Dec 12 %Chg.
8,380 Value Traded (QR mn) 230.4 132.9 73.4
Exch. Market Cap. (QR mn) 459,883.6 456,786.0 0.7
8,360 Volume (mn) 4.9 2.4 98.8
8,340 Number of Transactions 2,165 1,864 16.1
8,320 Companies Traded 41 40 2.5
Market Breadth 24:10 14:23 –
8,300
Market Indices Close 1D% WTD% YTD% TTM P/E
8,280
Total Return 11,312.66 0.7 0.6 1.4 N/A
8,260 All Share Index 2,014.60 0.8 0.6 4.6 10.1
9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00
Banks 1,949.30 0.7 0.3 (1.3) 10.9
Qatar Commentary Industrials 2,627.09 0.6 0.6 15.2 10.6
The QE index rose 0.7% to close at 8,358.9. Gains were led by the Insurance Transportation 1,340.32 0.1 (0.2) (9.1) 10.7
and Real Estate indices, gaining 2.1% and 1.4% respectively. Top gainers were Real Estate 1,611.70 1.4 1.3 (3.9) 4.0
Qatar General Insurance & Reins. and Qatar Cinema & Film Dist. Co., rising Insurance 1,963.58 2.1 3.4 12.0 11.7
9.1% and 7.8% respectively. Among the top losers, Al Ahli Bank fell 2.6%, while Telecoms 1,064.99 1.0 1.0 11.9 11.9
Al Meera Consumer Goods Co. declined 1.7%. Consumer 4,670.55 0.8 0.5 37.9 12.8
GCC Commentary GCC Top Gainers## Exchange Close# 1D% Vol. ‘000 YTD%
Saudi Arabia: The TASI index rose 0.9% to close at 6,860.0. Gains were led National Ind. Co. Saudi Arabia 29.90 7.9 6,243.7 7.9
by the Petrochemical Industries and Industrial Investment indices, rising 1.8%
and 1.4% respectively. National Industrialization Co. gained 7.9%, while Saudi Al-Khodari Saudi Arabia 26.90 4.3 696.0 4.3
Advanced Industries Co. was up 4.6%. Aseer Saudi Arabia 17.10 3.3 1,940.5 3.3
Dubai: The DFM index fell 0.4% to close at 1,622.5. Losses were led by the
Real Estate & Construction and Investment & Financial Services indices, Saudi Public Tran. Co. Saudi Arabia 17.00 3.0 3,613.3 3.0
falling 1.1% and 0.8% respectively. Shuaa Capital fell 7.0%, while Al Salam Bank Albilad Saudi Arabia 29.10 2.8 451.5 2.8
Bank - Bahrain was down 6.1%.
Abu Dhabi: The ADX benchmark index rose 0.1% to close at 2,630.9. The GCC Top Losers## Exchange Close# 1D% Vol. ‘000 YTD%
Industrial index gained 1.6%, while the Energy index was up 0.6%. Sudan Amana Coop. Ins. Co Saudi Arabia 123.50 (9.9) 2,318.1 (9.9)
Telecommunication Co. gained 8.8%, while Gulf Cement Co. rose 6.3%.
Arriyadh Dev. Co. Saudi Arabia 22.35 (2.2) 3,946.9 (2.2)
Kuwait: The KSE index declined 0.2% to close at 5,934.3. Losses were led by
the Basic Material and Technology indices, falling 1.2% and 0.7% respectively. MEDGULF Saudi Arabia 27.60 (2.1) 357.6 (2.1)
Pearl of Kuwait Real Est. Co. fell 7.8%, while Housing Fin. Co. declined 7.3%.
SADAFCO Saudi Arabia 63.75 (1.5) 36.1 (1.5)
Oman: The MSM index gained 0.1% to close at 5,763.8. The Banking &
Investment index rose 0.5%, while the Services & Insurance index gained Arab National Bank Saudi Arabia 26.00 (1.5) 413.2 (1.5)
0.2%. Transgulf Ind. Inv. Holding rose 6.0%, while Global Financial Investment
was up 4.4%. 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 Gainers Close* 1D% Vol. ‘000 YTD% Qatar Exchange Top Losers Close* 1D% Vol. ‘000 YTD%
Qatar General Insurance & Reins. 52.90 9.1 7.8 7.3 Al Ahli Bank 49.00 (2.6) 1.4 (6.7)
Qatar Cinema & Film Dist. Co. 56.90 7.8 4.4 (23.5) Al Meera Consumer Goods Co. 157.70 (1.7) 6.7 4.4
Qatar Islamic Insurance 62.00 7.3 10.0 7.8 Qatar & Oman Investment Co. 12.39 (1.7) 92.6 23.9
Qatar National Cement Co. 107.00 5.9 57.4 (4.5) Qatar Insurance Co. 67.10 (1.2) 59.8 3.8
United Development Co. 17.80 3.5 72.8 1.8 Dlala Brok. & Inv. Holding Co. 34.50 (1.1) 16.0 137.1
Qatar Exchange Top Vol. Trades Close* 1D% Vol. ‘000 YTD% Qatar Exchange Top Val. Trades Close* 1D% Val. ‘000 YTD%
Masraf Al Rayan 24.79 0.9 1,385.0 (11.0) Qatar National Bank 130.90 1.3 65,417.2 (5.3)
Qatar National Bank 130.90 1.3 518.9 (5.3) Commercial Bank of Qatar 70.90 0.9 36,151.1 (15.6)
Commercial Bank of Qatar 70.90 0.9 517.0 (15.6) Masraf Al Rayan 24.79 0.9 33,229.7 (11.0)
Al Khaliji 16.99 1.9 514.0 (1.0) Industries Qatar 155.10 0.0 17,041.7 16.6
Vodafone Qatar 8.35 1.2 173.3 10.6 Qatar Navigation 63.10 0.2 9,059.3 (17.5)
Source: Bloomberg (* in QR)
Regional Exch. Val. Exchange Mkt. Dividend
Close 1D% WTD% MTD% YTD% 2012 % P/E** P/B**
Indices Traded ($ mn) Cap. ($ mn) Yield
Qatar* 8,358.94 0.7 0.6 (0.5) (4.8) (4.8) 37.45 126,330.0 9.5 1.6 4.3
Dubai 1,622.53 (0.4) 0.7 0.9 19.9 19.9 57.26 49,531.2 11.7 0.7 3.9
Abu Dhabi 2,630.86 0.1 0.2 (1.6) 9.5 9.5 20.66 79,190.7 8.9 1.0 5.0
Saudi Arabia# 6,860.01 0.9 (0.1) 0.9 0.9 6.0 1,174.63 375,751.8 14.2 1.8 3.6
Kuwait 5,934.28 (0.2) (0.1) (0.2) 2.1 2.1 93.22 104,069.6 26.8 1.1 3.3
Oman# 5,763.77 0.1 1.4 0.1 0.1 1.2 16.00 20,244.4 10.9 1.5 4.4
Bahrain 1,065.61 (0.8) 0.2 1.6 (6.8) (6.8) 0.56 19,198.4 11.9 0.8 4.6
# ##
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. 1, 2013
Page 1 of 7

2. Qatar Market Commentary
 The QE index rose 0.7% to close at 8,358.9. The Insurance and
Overall Activity Buy %* Sell %* Net (QR)
Real Estate indices were the major contributors to the gains. The
index increased on the back of buying support from Qatari Qatari 86.79% 81.60% 11,945,477.79
shareholders despite selling pressure from non-Qatari Non-Qatari 13.21% 18.40% (11,945,477.79)
shareholders.
Source: Qatar Exchange (* as a % of traded value)
 Qatar General Insurance & Reins. and Qatar Cinema & Film
Dist. Co. were the top gainers, rising 9.1% and 7.8%
respectively. Among the top losers, Al Ahli Bank fell 2.6%, while
Al Meera Consumer Goods Co. declined 1.7%.
 Volume of shares traded on Monday surged by 98.8% to 4.9mn
from 2.4mn on Sunday. Further, as compared to the 30-day
moving average of 2.8mn, volume for the day was 72.5% higher.
Masraf Al Rayan and Qatar National Bank were the most active
stocks, contributing 28.5% and 10.7% to the total volume
respectively.
Ratings, Earnings and Global Economic Data
Ratings Updates
Company Agency Market Type* Old Rating New Rating Rating Change Outlook Outlook Change
Al Ahli Bank of LT IDR/ ST IDR/ VR/ SR/ A-/ F2/ bb+/ A-/ F2/ bb+/
Fitch Kuwait – Stable –
Kuwait (ABK) SR Floor 1/ A- 1/ A-
Source: News reports (* LT – Long Term, ST – Short Term, IDR- Issuer Default Rating, VR – Viability Rating, SR- Support Rating)
Earnings Releases
Revenue % Change Operating Profit % Change Net Profit (mn) % Change
Company Market Currency
(mn) 4Q2012 YoY (mn) 4Q2012 YoY 4Q2012 YoY
Southern Province Cement
Saudi Arabia SR – – 264.0 3.9% 253.0 0.8%
Co. (SPCC)
Source: Company data, Tadawul
Global Economic Data
Date Market Source Indicator Period Actual Consensus Previous
12/31 UK Lloyds Bank Lloyds Business Barometer December 20 -- 17
12/31 China HSBC HSBC Manufacturing PMI December 51.5 50.9 50.5
01/01 China Markit Manufacturing PMI December 50.6 51 50.6
Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted)
News
Qatar 30.9% and QoQ increase of 10.7%. However, the balance of
merchandise trade dropped to QR91.88bn from QR94.87bn in
 Qatar 92-day, 274-day T-bill yields narrow, 183-day yields 2Q2012. (GulfBase.com)
widen – According to Qatar Central Bank (QCB) data, Qatar
 Qatar’s population rises by 18% in 4 years – According to
Treasury bill yields on 3M and 9M issuances narrowed, while
Qatar Statistics Authority (QSA), Qatar’s population grew more
yields for the 6M bills widened. Qatari T-bills maturing April 2
than 18% at the end of December 2012 compared to the same
yielded 0.87%, down from 0.9% for 92-day bills in the last
period in 2008. The current population rests at 1,836,676. (Gulf-
issuance on December 4. T-bills maturing October 1 yielded
Times.com)
1.14%, down from 1.15%, while T-bills maturing July 2 yielded
1.06%, up from 1.03%. Qatar issued QR4bn worth of treasury  Qatar’s foreign investment reaches QR163.8bn in 2012 –
bills on Monday. (Bloomberg) Qatar’s sovereign wealth fund’s (SWF) investments abroad has
reached QR163.8bn in 2012, $32bn higher than the previous
 Qatar to introduce law to regulate public-private
year. Apart from the Arab region, Qatar made major investments
partnerships soon – Qatar may soon put a law in place to
in Singapore, France, UK, Italy, Switzerland, the US, Vietnam,
regulate public-private partnerships (PPP), which allow private
Iraq, Netherlands, Turkey, Bulgaria, Germany, China and
sector enterprises to readily participate in key infrastructure
Malaysia in 2012. The country invested in a wide range of
projects. Qatar’s Minister of Business & Trade, HE Sheikh
sectors in 2012, including in hotels, resorts, petrochemicals,
Jassim bin Abdulaziz Al Thani hinted the move is part of the
power plants, oil companies, banks and financial institutions,
government’s long-term plans aimed at accelerating the
fashion, mining, media and communications, roads,
transition from a public sector-driven economy to a market-
transportation and sports in these countries. (GulfBase.com)
driven economy. (Peninsula Qatar)
 QE brokerages lose market share to bank arms – According
 Qatar’s imports rise, balance of merchandise trade drops –
to Qatar Exchange data, conventional brokers by and large
According to data issued by Qatar Statistics Authority (QSA),
witnessed erosion in their share in stock broking, while the
Qatar’s total exports in 3Q2012 increased by 7.3% YoY;;
brokerage arms of commercial banks improved their kitty year-
however, declined 0.3% QoQ to QR118.5bn. Total imports of
to-date in December. The Group Securities accounted for 29.1%
3Q2012 stood at QR26.63bn, reflecting a YoY increase of
of the stocks trading value (QR41.58bn) YTD in December
Page 2 of 7

3. compared to 34.6% in the year-ago period. The Gulf  Qatar Airways responds to Lindner claims – Qatar Airways
Investments Group, which stood second, however improved its replied to statements by the German Emirati joint venture
market share to 27.17% of stocks trading value in December company Lindner Depa Interiors (LDI) on the delay of the
against 14.05% in the year-ago period. Dlala Brokerage opening of the New Doha International Airport (NDIA). LDI
cornered 11.0% of the stocks trading value against 17.55% in claimed it had no relationship nor a contract with Qatar Airways
the comparable period of 2011. Qatar Securities saw its market and that the airline’s claims were misleading. Qatar Airways
share plunge to 7.40% of the stocks trading value compared to CEO Akbar Al Baker said LDI is adding insult to injury by
14.6% in the previous-year period. International Securities denying that its delay caused huge damages, and that LDI
accounted for 5.62% of the stocks trading value against 7.9% in should pay compensation for such damages. (Peninsula Qatar)
the year-ago period. In the case of Islamic Securities, the market
 Qatar Industrial Manufacturing Co BoD holds meeting on
share improved to 6.12% of the stocks trading value compared
December 31 – Qatar Industrial Manufacturing Company’s
to 4.9% in the previous-year period. Dlala-Islamic Brokerage
Board of Directors held its sixth periodic meeting for 2012 on
accounted for 2.7% of the stocks trading value compared to
December 31, 2012. (QE)
3.17% in the year-ago period. QNB Financial Services cornered
6.9% of stocks trading value in December against 2.62% in the  Qatar Oman Investment to hold Ordinary General Assembly
comparable period of 2011. Commercialbank Investment meeting on March 25, 2013 – Qatar Oman Investment
Service accounted for 2.9% of trading value compared to mere Company will hold its Ordinary General Assembly meeting on
0.54% in the previous-year period. Al-Ahli Brokerage saw its March 25, 2013. In case the required quorum is not maintained,
market share rise to 0.89% of stocks trading value against a an alternate meeting is to be scheduled on April 1, 2013. (QE)
meager 0.11% in the year-ago period. Al Rayan Financial
 Al khaliji BoD to hold meetings on January 16 to discuss
Brokerage accounted for 0.16% of stocks trading value. (Gulf-
and approve new strategy – The Board of Directors of Al Khalij
Times.com)
Commercial Bank (al khaliji) will meet on January 16, 2013 to
 Qatar’s construction industry to top in Gulf region amid discuss and approve the bank’s new strategy and governance
$150bn spending plans – According to a report from BMI, items. (QE)
Qatar’s construction industry will continue to be the region’s top
 Real estate transactions worth QR748.1mn during
performer in the long-term on the back of big projects being
December16 to 20 – The volume of real estate trading in sales
taken up in the country. The report mentioned that construction
contracts registered with the Real Estate Registration
and energy projects worth $150bn in the pipeline will have a
Department at Qatar’s Ministry of Justice from December 16 to
positive impact on the sector. However, BMI warned there is a
20 amounted to QR748.1mn. These real estate sales included
potential risk of decreasing margins due to continuously rising
land plots, two-storey villas, houses, residential multi-storey
construction costs as a result of a surge in infrastructure
buildings and commercial stores. (Gulf-Times.com)
investment. (GulfBase.com)
 14 five-star hotels opened in Qatar in 2012 – The hospitality
 MEED: Qatar needs extra power capacity of 8,216MW by
industry in Qatar witnessed an impressive growth in 2012,
2019 – According to a report by MEED Insight, Qatar will require
supported by the opening of 18 new hotels with a total 2,863
an additional power capacity of 8,216MW worth about $10bn by
rooms. The total number of hotel rooms in the country increased
2019 to meet the country’s growing demand for electricity. In its
to 14,363 in 2012 from 11,500 in 2011. Fourteen 5-star, three 4-
“Qatar Power Fact File” MEED Insight said the country’s
star and one 3-star hotels opened in 2012. Hotel St Regis with
installed power generating capacity stood at 5,314MW based on
336 rooms was the biggest hotel opened in 2012. (Peninsula
2009 data. MEED also indicated that Qatar’s nominal GDP
Qatar)
would exceed $190bn in 2013 with a GDP per capita of
$103,748. Qatar’s real GDP growth is expected to be 4.6% in  Qatar National Bank’s shares traded on Special Market –
2013 compared with 6.6% this year. Inflation will rise marginally Qatar National Bank’s 0.47mn shares were traded on the
to 3% this year compared to 2% in 2011 and 2012 (estimated). Special Market on December31, 2012. (QE)
(Gulf-Times.com)
 Commercial Bank of Qatar’s shares traded on Special
 Real estate bounces back after long lull – The real estate Market – Commercial Bank of Qatar’s 0.145mn shares were
sector is witnessing a boom after a prolonged lull, with traded on the Special Market on December 31, 2012. (QE)
transactions almost doubling in 2012, and the prices of land
 Masraf Al Rayan’s shares traded on Special Market – Masraf
near existing and planned development projects across the Al Rayan’s 1.05mn shares were traded on the Special Market on
country galloping to incredible highs. The value of real estate December 31, 2012. (QE)
deals struck last year totaled QR42bn, up 59.1% YoY. The
Qatar Statistics Office (QSA) recently said while releasing International
consumer price indices the chances of a repeat of the peaks
home rentals witnessed during 2006-08 are remote. Market  US Senate approves "fiscal cliff" deal – The US Senate has
reports suggest there has been a steady increase in the prices passed a bipartisan budget deal to prevent the potential
of land, particularly in Doha and its sprawling suburbs. economic harm from tax increases and spending cuts. However,
(Peninsula Qatar) the bipartisan deal could still face stiff challenges in the House
of Representatives. The senators voted 89-8 to raise some
 QTEL raises Tunisiana stake – Qatar Telecom (QTEL) has
taxes on the wealthy while making permanent low tax rates on
increased its stake in the Tunisia venture Tunisiana as the
the middle class that have been in place for a decade. However,
company seeks to expand in the MENA region. QTEL reached
the measure did little to rein in huge annual budget deficits that
an agreement with Tunisia’s government to acquire a 15% stake
have helped push the US debt to $16.4tn. (FT)
in Tunisiana for $360mn, boosting its stake to 90%. Tunisia will
hold 10% and may sell the stake in a public offering.  CBO: US Senate's "fiscal cliff" bill adds $4tn to deficit – The
(GulfBase.com) US Congressional Budget Office said the Senate-passed
legislation to avert the "fiscal cliff" would add nearly $4tn to
federal deficits over a decade, largely because it would extend
Page 3 of 7

4. low tax rates for almost all Americans. The Senate-passed plan  Saudi to develop Midyan natural gas field in 2013 –
extends the decade-old Bush-era tax rates for individuals According to Saudi Oil Minister Ali Naimi, Saudi Arabia will
earning up to $400,000 and couples earning up to $450,000, develop its Midyan natural gas field in the Red Sea in 2013. It
which comprises nearly 99% of the US taxpayers. (Reuters) would boost electric power plants run by gas instead of diesel,
and both electricity and gas would reach industrial zones.
 ECB sees more stable Eurozone, inflation under control –
(GulfBase.com)
European Central Bank (ECB) Executive Board Member Joerg
Asmussen said the Eurozone is more stable than it was this time  PetroRabigh halts refinery for 20 days maintenance – Saudi-
last year and price pressures are well contained. Asmussen based PetroRabigh refining & petrochemicals complex will carry
appeared optimistic about the state of the Eurozone which out maintenance work for 20 days after a power cut on Saturday
seemed close to collapse at certain points of 2012. He said forced it to halt its operations. The company said in order to
Ireland and Portugal have progressed the most and both the ensure the facility’s reliability it is currently performing the
nations have managed to return gradually to the capital markets. necessary maintenance on all the facilities, which is expected to
He also said Greece is back on course, while Spain has to clean take around 20 days. PetroRabigh said the maintenance will not
up its banking sector. Nevertheless, he cautioned that the have a significant impact on the company’s earnings.
process of recovering competitiveness in the embattled euro PetroRabigh has annual output capacity of 18mn tons of refined
area would still take years. (Economic Times) products and 2.4mn tons of petrochemicals. (Peninsula Qatar)
 Spain's bad bank receives €37bn of toxic assets – Spain's  SPCC signs contract for expansion of power generation
so-called “bad bank” has received €37bn of toxic assets from plant in Tahama factory – Southern Province Cement
four nationalized banks, starting a key part of the country's drive Company (SPCC) has signed a contract with Wartsilla Power
to clean up its financial sector. The largest share of the toxic Contracting Company for the expansion of the power generation
assets transferred to the asset management company, known plant in Tahama factory. Under the contract, the company has
by its Spanish acronym Sareb, comes from Bankia, which was added four diesel units with a total capacity of 32MW. The
rescued by the state in May in Spain's biggest ever bank bailout. contract value is SR96mn and it will be self- financed. (Tadawul)
Bankia has transferred €22.32bn in assets, while Catalunya
 SPCC’s BoD recommends to pay dividend of SR560mn for
Banc has transferred €6.71bn, NCG Banco-Banco Gallego has
2H2012 – SPCC’s BoD has recommended the dividend
transferred €5.71bn and Banco de Valencia has transferred
distribution of SR560mn for 2H2012 at SR4 per share,
€1.96bn. (Economic Times)
representing 40% of the company’s capital. (Tadawul)
 China’s Central Bank: China to stick to a prudent monetary
 Al-Ahsa Development Co’s textile factory’s business plan
policy in 2013 – China’s Central Bank Governor, Zhou
completes – Al-Ahsa Development Co announced that the
Xiaochuan said, China will stick to a prudent monetary policy
Indonesian company has completed the draft of business plan
next year and keep consumer prices stable. Reiterating China's
and operating contracts for Al-Ahsa Development Company’s
long-stated vow to reduce the level of central planning in its
Textile factory at Al-Ahsa. (Tadawul)
economy and make room for more market forces, Zhou also
said China will deepen reforms in its financial sector in 2013.  Saudi Aramco to drill 7 gas exploration wells in Tabuk
(Reuters) province - According to Saudi Arabian Oil Co (Saudi Aramco)
CEO Khalid al-Falih, Saudi Aramco is planning to drill seven gas
 OPEC’s December output falls to nine-month low –
exploration wells in deep and shallow water in the Red Sea, off
According to a Bloomberg survey, crude oil production in
the coast of the north-western city of Tabuk. (Gulf-Times.com)
Organization of Petroleum Exporting Countries (OPEC) declined
to a nine-month low in December as Saudi Arabian output  BAHRI postpones delivery of general cargo vessel –
dropped to the least in more than a year. OPEC’s output slipped National Shipping Company of Saudi Arabia (BAHRI) has
by 0.3% to 110,000 barrels (an average 31.4mn bpd) last month agreed with Hyundai MIPO in South Korea to postpone the
from a revised 31.5mn in November. Saudi Arabia pumped delivery of the first vessel to January 23, which was originally
9.57mn bpd last month, down 130,000 bpd from November. The scheduled to be delivered in December 2012. The
UAE raised its output by 50,000 bpd to 2.65mn bpd in postponement is due to the delivery coinciding with the
December, giving the country the second-biggest production completion of the last voyage of the replaced ship l (Saudi
increase in OPEC. (Gulf-Times.com) Abha). (Tadawul)
 NWC begins work on SR500mn water storage plant in
Regional
Jeddah –The National Water Company (NWC) has begun
 GCC exports to Japan up 13.7% in 10 months of 2012 – implementing the first phase of a strategic water storage facility
According to data released by Gulf Cooperation Council (GCC), in Jeddah with a project cost of SR500mn. (GulfBase.com)
exports by Gulf hydrocarbon producers to Japan rose by 13.7%  NWC inks five contracts with SEC to provide electric plants
YoY to $131.3bn in the first 10 months of 2012 as crude prices with treated water – The National Water Company (NWC) and
remained at historically high levels and Japan kept its heavy Saudi Electricity Company (SEC) have signed five contracts
reliance on crude from the region. The GCC’s imports from worth SR416mn to provide electric plants with treated water. As
Japan shot up by around 31% YoY to nearly $20.7bn. per the contracts, the NWC will provide 55mn cubic meters of
(GulfBase.com) treated water to SEC’s five electricity-generating stations in
 Kingdom to create sovereign fund for future generations – Qassim, Hail, Rafha, Qurrayyat and Wadi Al-Duwasir for 25
According to Saudi Arabia’s Finance Minister Ibrahim Al-Assaf, years beginning from 2016. (GulfBase.com)
Saudi government is planning to set up a sovereign fund to  SEC inks SR1.6bn power transmission line contracts –
support future generations. The new fund aims at channeling Saudi Electricity Company has signed five different contracts
part of the Kingdom’s budget surpluses to long-term investment worth SR1.6bn for the procurement and construction of 755
projects. (GulfBase.com) kilometers long 380 kV power transmission lines across the
Kingdom. (GulfBase.com)
Page 4 of 7

5.  Al Madinah Hotels to reduce its share capital – Shareholders Constructions Company is related to the construction of road in
of the Saudi Hotel Company’s subsidiary Al Madinah Hotels the Wilayat of Madha in Musandam. (GulfBase.com)
have decided to reduce the company’s share capital from
 Oman boosts spending plans in 2013 budget – Oman’s 2013
SR25mn to SR1mn, as the share capital exceeded the
budget has raised the government spending by nearly 30% over
company’s current needs. (Tadawul)
its 2012 plan to OMR12.9bn as the country boosts outlay on
 Accor, Al Hokair Group in deal to build 8 hotels by 2015 – social benefits. Oman’s Finance Minister Darwish al-Balushi
Accor Middle East has signed a franchise agreement with Al said the spending on education, health, housing and social
Hokair Group to open eight new hotels in the Kingdom by 2015. welfare projects has been boosted by 22% for this year’s plan.
The two companies are seeking to expand their partnership, He said last year’s actual spending was around OMR13bn, 30%
which includes cooperating for additional Suite Novotel projects higher than planned, due to new projects. Although the 2013
in the Kingdom. (GulfBase.com) plan envisages revenues of OMR11.2bn, actual revenue is likely
to be higher because the budget is based on a conservative oil
 ATC renews its contracts with NCB for group life coverage
price of $85 a barrel, with average output of 930,000 bpd. (Gulf-
and credit card protection – Al Ahli Takaful Company (ATC)
Times.com)
has renewed its contract with the National Commercial Bank
(NCB) for providing group life insurance coverage to NCB’s  Oman awards $108.5mn airport contract to US firm Hill
employees and has also renewed its contract for NCB’s Credit International – Oman has awarded a two-year contract worth
Card Protection program. This contract is expected to have a OMR41.8mn to the US-based firm Hill International for
positive impact on ATC’s performance during 2013. (Tadawul) supervising the expansion of Muscat’s international airport. Hill
International will replace the Danish consulting group COWI
 Gulf Union inks agreement with GEMS to administer
after the Ministry of Transport did not to renew a contract signed
medical insurance claims – Gulf Union Cooperative Insurance
in 2008 to supervise the project. Oman’s plans worth $7bn to
Company has signed an agreement with Gulf Electronic
expand the airport’s terminal building and the airfield have been
Management System (GEMS) to administer medical insurance
dogged by delays. Initially, Oman had planned to complete the
claims. (Tadawul)
expansion by the end of 2012, but was forced to revise its
 Dubai unveils 2013 budget with marginal rise in spending – completion date to late 2014. (Gulf-Times.com)
The Dubai government unveiled its budget for 2013, setting
 Omani CMA completes drafting regulatory bylaws for
expenditure at AED34.1bn and a deficit at 0.5% of GDP.
Islamic banking – Oman’s Capital Market Authority (CMA) has
Expenditure was forecast to be slightly up from AED33.7bn
completed the initial draft of the regulatory bylaws of the Islamic
spent in this year's budget, while revenues were expected to
sukuk. The CMA also prepared the initial draft of the regulations
reach AED32.6bn, up from AED29.9bn in 2012. Meanwhile, the
and legislations needed to regularize the country’s capital
budget deficit was forecast to drop to AED1.5bn, compared with
market and insurance sector. This move is in line with the
AED3.8bn this year. Net oil income will amount to 12% of the
CMA’s policy to benefit from the visions of the respective
total revenues, with government fees representing 62%, while
agencies and ensure flexible legislations that promote efficiency
customs and taxes on foreign banks will account for 23% of
in the Omani capital market. (Bloomberg)
revenues. (GulfBase.com)
 PEIE to invest OMR117mn in three industrial estates –
 Emirates boosts flights to New York, Paris – Emirates has
According to the Public Establishment for Industrial Estates’
doubled its A380 capacity to New York’s John F Kennedy and
(PEIE) CEO Hilal bin Hamed al Hasani, PEIE is investing
Paris’ Charles De Gaulle airports with a twice daily A380 service
OMR117mn in the next three years to expand three industrial
from Dubai. The Emirates A380 fleet currently serves 21
estates in Rusayl, Sohar and Nizwa. The growing demand for
destinations with new cities to be announced in the coming
industrial plots from entrepreneurs in Oman has necessitated
months. (Gulf-Times.com)
this move. In addition, plans are afoot to set up industrial estates
 Abu Dhabi's foreign trade grows to AED533bn in 2011 – in Samayil, Ibri, Musandam and in the Sharqia region.
According to data released by the Abu Dhabi Department of (GulfBase.com)
Economic Development (DED), Abu Dhabi's foreign trade value
 Galfar E&C wins OMR4.8mn contract for periodic
increased by 37.6% in 2011 to reach AED532.9bn, accounting
maintenance of Sohar refinery project – Galfar Engineering &
for 66% of its GDP for the year. Exports grew by 38.5% and
Contracting (Galfar E&C) has won the tender for periodic
imports rose 34.4%. Saudi Arabia was Abu Dhabi's largest non-
maintenance of the Sohar refinery project from the Oman Oil
oil trading partner, accounting for 11% of the total non-oil trade
Refineries & Petroleum Industries. The contract worth a total
valued at AED15.9bn. (GulfBase.com)
sum of OMR4.8mn is to be completed in 150 days. The
 Kuwait MoE announces new projects worth KD321mn – company expects reasonable income from this project. (MSM)
Kuwait’s Ministry of Education has unveiled new projects valued
 CBB Treasury Bills oversubscribed – The Central Bank of
KD321mn under the ministry’s developmental plan for the 2014-
Bahrain’s (CBB) this week's BHD35mn issue of government
2018 period. The projects worth KD249mn were allocated to
treasury bills has been oversubscribed by 233%. The bills carry
demolishing and rebuilding old and dilapidated schools, and
a maturity of 91 days. The weighted average rate of interest for
building new schools in cooperation with the education sector.
the issue is 0.99% as compared with 1.04% for the previous
(GulfBase.com)
issue on December 19, 2012. (AME Info)
 Oman inks OMR57.5mn worth aviation and transport deals
 GSS bags €7.4mn contract from GNPOC – Global Sourcing
– The Omani Ministry of Transport & Communications has
and Supply Services Company (GSS), a subsidiary of BMMI has
signed two agreements worth OMR57.5mn in the field of
been awarded an existing contract to provide catering and
aviation and transport. The first agreement worth OMR41.8mn
associated services for upstream Heg1ig base camp from the
signed with the Hill International Company is for the completion
Greater Nile Petroleum Operating Company (GNPOC) based in
of consultancy services and supervision works for the Muscat
Khartoum, North Sudan. The contract’s term will be for two
International Airport and the Salalah Airport projects. The
second agreement worth OMR15.7mn signed with Al Sarooj
Page 5 of 7

6. years with a provisional contract price of €7.4mn. (Bahrain
Bourse)
 Alba’s production gets a boost – Aluminum Bahrain (Alba) is
on track to broaden its production capacity and enhance its
output levels in the line current for Pot Line 5 to 360 kA. The
increase in line current is part of an initiative to raise
performance in line with the recent upgrade of Pot Line 5 from
AP30 to AP 36 technology. The upgrade will enable Alba to
boost output since each 1 kA increase is expected to yield 950
tons of extra aluminum production each year. (Bahrain Bourse)
Page 6 of 7

7. Rebased Performance Daily Index Performance
140.0 1.2% 0.9%
0.7%
130.0
0.6%
120.0 0.1% 0.1%
120.1
0.0%
110.0
108.3
100.0 (0.6%) (0.2%)
101.1 (0.4%)
106.0
90.0 (0.8%)
98.2 (1.2%)
Saudi Arabia *
Bahrain **
Oman *
Abu Dhabi **
Kuwait **
Dubai **
Qatar **
80.0
Apr-10 Aug-10 Dec-10 Apr-11 Aug-11 Dec-11 Apr-12 Aug-12 Dec-12
4
QE Index S&P Pan Arab S&P GCC
Source: Bloomberg Source: Bloomberg (* Data as of Jan. 1, 2013, ** Data as of Dec. 31, 2012)
Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D% WTD% YTD%
Gold 1,665.16 (0.6) 0.6 (0.6) DJ Industrial 13,104.14 0.0 1.3 0.0
Silver 30.34 (0.0) 1.1 (0.0) S&P 500 1,426.19 0.0 1.7 0.0
Crude Oil (Brent) 112.84 0.0 0.8 0.0 NASDAQ 100 3,019.51 0.0 2.0 0.0
Euro 1.32 0.1 (0.1) 0.1 DAX 7,612.39 0.0 0.0 0.0
Yen 86.70 (0.1) 0.9 (0.1) FTSE 100 5,897.81 0.0 (0.5) 0.0
GBP 1.62 (0.0) 0.6 (0.0) CAC 40 3,641.07 0.0 0.6 0.0
CHF 1.10 0.3 0.1 0.3 Nikkei 10,395.18 0.0 0.0 0.0
AUD 1.04 0.0 0.2 0.0 Shanghai 2,269.13 0.0 1.6 0.0
USD Index 79.74 (0.0) 0.1 (0.0) BSE Sensex 19,580.81 0.8 0.7 0.8
RUB 30.56 0.1 0.7 0.1 Bovespa 60,952.08 0.0 0.0 0.0
BRL 0.49 0.0 (0.2) 0.0 RTS 1,530.41 0.0 0.2 0.0
Source: Bloomberg Source: Bloomberg
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