Qatar stock exchange

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QSE Intra-Day Movement
Qatar Commentary
The QSE Index gained marginally to close at 10,398.3. Gains were led by the Banks &
Financial Services and Transportation indices, rising 0.5% and 0.2%, respectively. Top
gainers were Zad Holding Co. and QNB Group, rising 4.5% and 2.9%, respectively. Among
the top losers, Qatar Insurance Co. fell 3.2%, while Al Khalij Commercial Bank was down
3.1%.
GCC Commentary
Saudi Arabia: The TASI Index fell 0.9% to close at 6,930.6. Losses were led by the
Energy & Utilities and Petrochem. Ind. indices, falling 5.3% and 3.8%, respectively.
Yanbu Nat. Petrochem. fell 7.6%, while Saudi Industrial Inv. Group was down 7.1%.
Dubai: The DFM Index gained 0.5% to close at 3,134.8. The Transportation index rose
2.1%, while the Consumer Staples index gained 1.2%. GFH Financial Group rose 7.5%,
while Mashreq Bank was up 6.3%.
Abu Dhabi: The ADX benchmark index rose 1.0% to close at 4,296.2. The Banks index
gained 2.0%, while the Real Estate index rose 0.9%. National Bank of Fujairah surged
14.9%, while Abu Dhabi Islamic Bank was up 3.7%.
Kuwait: The KSE Index declined 0.8% to close at 5,583.8. The Technology index fell
3.3%, while the Consumer Services index declined 1.5%. Kout Food Group fell 13.5%,
while Metal & Recycling Co. was down 11.9%.
Oman: The MSM Index fell 0.1% to close at 5,429.4. Losses were led by the Services and
Industrial indices, falling 0.3% and 0.2%, respectively. Al Jazeera Steel Products fell
2.9%, while Al Batinah Dev. Inv. Holding was down 2.4%.
Bahrain: The BHB Index declined 0.2% to close at 1202.4. The Industrial index fell
0.5%, while the Investment index declined 0.3%. GFH Financial Group fell 8.6%, while
Al Salam Bank – Bahrain was down 1.1%.
QSE Top Gainers Close* 1D% Vol. ‘000 YTD%
Zad Holding Co. 81.00 4.5 0.2 (3.6)
QNB Group 176.00 2.9 66.9 (17.3)
Industries Qatar 110.00 1.8 424.7 (34.5)
Qatar Navigation 96.00 1.5 75.6 (3.5)
Qatar General Insur. & Reins. Co. 54.00 0.8 13.0 5.3
QSE Top Volume Trades Close* 1D% Vol. ‘000 YTD%
Vodafone Qatar 12.59 (1.4) 1,046.9 (23.5)
Qatar Gas Transport Co. 23.00 (0.7) 644.9 (0.4)
Gulf International Services 51.40 (1.9) 523.6 (47.1)
Industries Qatar 110.00 1.8 424.7 (34.5)
Ezdan Holding Group 16.25 (0.3) 290.6 8.9
Market Indicators 29 Dec 15 28 Dec 15 %Chg.
Value Traded (QR mn) 199.8 250.0 (20.1)
Exch. Market Cap. (QR mn) 551,214.4 549,296.8 0.3
Volume (mn) 4.9 6.2 (21.7)
Number of Transactions 2,562 3,255 (21.3)
Companies Traded 41 41 0.0
Market Breadth 8:31 30:7 –
Market Indices Close 1D% WTD% YTD% TTM P/E
Total Return 16,162.71 0.0 1.4 (11.8) 10.8
All Share Index 2,764.81 (0.0) 1.2 (12.3) 10.9
Banks 2,787.72 0.5 0.9 (13.0) 11.3
Industrials 3,138.62 (0.0) 3.2 (22.3) 12.0
Transportation 2,423.01 0.2 0.5 4.5 11.5
Real Estate 2,358.75 (0.4) 0.5 5.1 7.6
Insurance 4,129.79 (2.2) (0.9) 4.3 11.4
Telecoms 973.59 (0.1) 2.7 (34.5) 21.3
Consumer 5,913.35 (0.8) (0.6) (14.4) 13.1
Al Rayan Islamic Index 3,827.10 (0.5) 0.7 (6.7) 11.3
GCC Top Gainers## Exchange Close# 1D% Vol. ‘000 YTD%
Nat. Bank Of Fujairah Abu Dhabi 4.02 14.9 235.0 (10.9)
Med. & Gulf Insurance Saudi Arabia 25.70 9.7 2,758.1 (48.6)
Co. for Coop. Insurance Saudi Arabia 75.04 6.2 331.4 50.3
Saudi Enaya Coop. Ins. Saudi Arabia 16.61 4.9 2,419.4 (36.0)
Alinma Bank Saudi Arabia 15.13 4.4 64,231.9 (25.7)
GCC Top Losers## Exchange Close# 1D% Vol. ‘000 YTD%
Abu Dhabi Nat. Ins. Abu Dhabi 2.88 (10.0) 94.3 (52.4)
DP World Ltd. Dubai 18.25 (8.8) 51.5 (13.1)
Yanbu Nat. Petrochem. Saudi Arabia 33.20 (7.6) 2,222.7 (30.3)
Saudi Ind. Inv. Group Saudi Arabia 14.38 (7.1) 6,297.3 (43.5)
Nat. Petrochemical Co. Saudi Arabia 17.92 (7.0) 2,200.9 (18.2)
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)
QSE Top Losers Close* 1D% Vol. ‘000 YTD%
Qatar Insurance Co. 84.20 (3.2) 45.7 6.9
Al Khalij Commercial Bank 17.45 (3.1) 36.6 (20.9)
Qatar Islamic Bank 106.20 (2.1) 71.2 3.9
Islamic Holding Group 78.30 (2.0) 101.2 (25.2)
Qatar Islamic Insurance Co. 65.70 (1.9) 0.2 (16.8)
QSE Top Value Trades Close* 1D% Val. ‘000 YTD%
Industries Qatar 110.00 1.8 45,883.3 (34.5)
Gulf International Services 51.40 (1.9) 26,896.6 (47.1)
Qatar Gas Transport Co. 23.00 (0.7) 14,847.7 (0.4)
Vodafone Qatar 12.59 (1.4) 13,167.7 (23.5)
QNB Group 176.00 2.9 11,652.0 (17.3)
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* 10,398.33 0.0 1.4 3.0 (15.4) 54.87 151,418.6 10.8 1.6 4.9
Dubai 3,134.82 0.5 (0.1) (2.2) (16.9) 114.30 83,547.2 12.3 1.1 3.7
Abu Dhabi 4,296.16 1.0 1.3 1.4 (5.1) 25.12 117,839.0 11.3 1.2 5.7
Saudi Arabia 6,930.60 (0.9) (0.2) (4.3) (16.8) 1,852.63 421,196.4 15.6 1.7 3.7
Kuwait 5,583.81 (0.8) (0.6) (3.8) (14.6) 30.34 86,953.0 15.4 1.0 4.7
Oman 5,429.36 (0.1) 0.2 (2.1) (14.4) 8.02 22,216.4 9.8 1.2 4.8
Bahrain 1,202.43 (0.2) 0.4 (2.4) (15.7) 1.08 18,903.1 7.8 0.8 5.7
Source: Bloomberg, Qatar Stock Exchange, Tadawul, Muscat Securities Exchange, Dubai Financial Market and Zawya (** TTM; * Value traded ($ mn) do not include special trades, if any)
10,250
10,300
10,350
10,400
10,450
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 QSE Index gained marginally to close at 10,398.3. The Banks &
Financial Services and Transportation indices led the gains. The index rose
on the back of buying support from non-Qatari shareholders despite selling
pressure from Qatari and GCC shareholders.
 Zad Holding Co. and QNB Group were the top gainers, rising 4.5% and 2.9%,
respectively. Among the top losers, Qatar Insurance Co. fell 3.2%, while Al
Khalij Commercial Bank was down 3.1%.
 Volume of shares traded on Tuesday fell by 21.7% to 4.9mn from 6.2mn on
Monday. Further, as compared to the 30-day moving average of 7.4mn,
volume for the day was 34.3% lower. Vodafone Qatar and Qatar Gas
Transport Co. were the most active stocks, contributing 21.6% and 13.3%
to the total volume, respectively.
Source: Qatar Stock Exchange (* as a % of traded value)
Global Economic Data
Global Economic Data
Date Market Source Indicator Period Actual Consensus Previous
12/29 US Census Bureau Advance Goods Trade Balance November -$60.500b -$60.720b -$61.276b
12/29 US S&P/Case-Shiller S&P/CS 20 City MoM SA October 0.84% 0.60% 0.50%
12/29 US S&P/Case-Shiller S&P/CS Composite-20 YoY October 5.54% 5.60% 5.36%
12/29 US S&P/Case-Shiller S&P/CaseShiller 20-City Index NSA October 182.8 183.3 182.7
12/29 US S&P/Case-Shiller S&P/Case-Shiller US HPI MoM October 0.88% – 0.77%
12/29 US S&P/Case-Shiller S&P/Case-Shiller US HPI YoY October 5.17% – 4.85%
12/29 US S&P/Case-Shiller S&P/Case-Shiller US HPI NSA October 175.7 – 175.5
12/29 US Conference Board Consumer Confidence Index December 96.5 93.5 92.6
12/29 Spain INE Retail Sales YoY November 4.20% – 5.00%
12/29 Spain INE Retail Sales SA YoY November 3.30% 4.60% 6.00%
12/29 Italy ISTAT Consumer Confidence Index December 117.6 117.0 118.4
12/29 Italy ISTAT Business Confidence December 104.1 104.4 104.4
12/29 Italy ISTAT Economic Sentiment December 105.8 – 107.1
Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted)
Overall Activity Buy %* Sell %* Net (QR)
Qatari Individual 33.50% 39.49% (11,976,819.40)
Qatari Institutions 28.41% 23.36% 10,096,186.29
Qatar 61.91% 62.85% (1,880,633.11)
GCC Individuals 0.99% 5.96% (9,935,906.96)
GCC Institutions 3.76% 5.30% (3,086,731.76)
GCC 4.75% 11.26% (13,022,638.72)
Non-Qatari Individuals 13.28% 16.02% (5,492,430.56)
Non-Qatari Institutions 20.07% 9.86% 20,395,702.39
Non-Qatari 33.35% 25.88% 14,903,271.83

3. Page 3 of 7
News
Qatar
 ABQK BoD meeting on January 14 – Ahli Bank’s (ABQK) board of
directors (BoD) will meet on January 14, 2016 to approve the
budget & discuss the proposal of profit distribution for the
financial year ended 2015. (QSE)
 QSE suspends trading of WDAM shares on December 30 – The Qatar
Stock Exchange (QSE) has announced the trading suspension of
Widam Food Company’s (WDAM) shares on December 30, 2015
due to its EGM being held on that day. (QSE)
 MDPS: Qatar’s population grows 8.5% YoY in November –
According to figures released by the Ministry of Development
Planning & Statistics (MDPS), Qatar’s population registered an
impressive annual increase of 8.5% in November 2015 breaching
the 2.46mn mark. MDPS, in its 23rd Monthly Bulletin issued for
November 2015, said the population in November 2014 was a
little over 2.27mn. In the 11 months, from January to November-
end this year, 22,927 births were registered in the country which
worked out to 8.7 people added to every 1,000 people of the
country’s population. The number of people who died in the 11
months of 2015 was 2,102. (Peninsula Qatar)
 OPEC: Qatar 2016 oil demand to firm up on transportation,
industrial demand – According to a recent OPEC report, oil demand
is expected to grow firmly in Qatar in 2016 with transportation
fuels, especially gasoline and industrial fuels such as diesel &
residual fuel oil playing a "significant part" in the overall oil
demand growth. Oil demand growth in the region is projected to
reach 0.19mn bpd in 2015, while in 2016 it is anticipated to record
around 0.21mn barrels per day of growth. The ‘Monthly oil market
report’ revealed that oil demand grew strongly in Qatar and the
UAE in 2015. In both countries, transportation fuels – notably
gasoline – dominated the increases. Elsewhere in the Middle East,
solid demand was witnessed in October with oil demand growth in
Saudi Arabia hitting the highest level in 2015. Oil demand in Saudi
Arabia continued its positive momentum, growing by around
0.34mn bpd, or 15% YoY. All products recorded positive gains
during the month, without exception. Direct crude burning
recorded the highest gains in both percentage and volumetric
basis. Transportation, industrial fuels and direct crude burning
were the contributing elements in rising Saudi Arabian demand in
2015, which continues to be the pattern of consumption during
October 2015. Demand also grew solidly in Kuwait, particularly
lifting road transportation & industrial fuels, gasoline & gas diesel
oil. Iraqi oil demand continued its positive growth trend which
started in June, with most gains being observed in fuel oil and
gasoline. However, the report said the Middle East oil demand
growth may be challenged in 2016 by some downside risks, which
relate to the continuing geopolitical turbulence in some countries.
(Gulf-Times.com)
 Qatari banks’ assets touch QR1.11tn in November – Qatar banks’
assets (and liabilities) increased QR27.9bn, or 2.6%, to QR1.11tn
in November 2015, as compared to QR1,077.9bn recorded in
October 2015. The government and public sector deposits touched
QR220.7bn, a decline of QR11.4bn, in November. Qatar’s total
domestic public debt increased by QR9.1bn to QR356bn. The
market liquidity analysis revealed that the month witnessed high
credit for the domestic private sector, reflecting an increase by
QR5.5bn to QR408.6bn. Local private sector deposits rose by
QR2.5bn to QR337.1bn. In November, the banks’ combined
deposits at QCB stabilized at QR33.7bn. A breakdown of the figure
showed that the banks’ mandatory reserve stood at QR30.1bn at
the rate of 4.75% of the total customer deposits at each bank as set
by the QCB. Government and public sector deposits increased
around QR3bn to reach the QR220.7bn level. The breakdown
showed QR66.3bn from government, QR120bn from government
institutions and QR34.4bn for the quasi-governmental institutions.
The government and public sector total loans increased to around
QR6.8bn to reach QR235.7bn. (Peninsula Qatar)
 EY: Islamic banking assets up 16% in 2015; Qatar among key
markets – According to a report released by Ernst & Young (EY),
Islamic retail and commercial banking assets continued to grow at
16% in 2015, at the same rate as they did in 2014. The recently
issued World Islamic Banking Competitiveness Report 2016
revealed that Islamic banking assets in six main markets are set to
exceed $801bn in 2015. Those markets are Qatar, Indonesia, Saudi
Arabia, Malaysia, the UAE and Turkey, where around 80% of
international banking assets are being held. Altogether, the global
Islamic banking assets are expected to reach or cross $1tn in 2015
and by 2020 to reach a profit pool of approximately $30.3bn. Gulf
Cooperation Council (GCC) countries added $91bn in Shari’ah-
compliant assets in 2015, representing a growth of 18% YoY. If
Bahrain, Kuwait and Pakistan are added to the core markets,
altogether they account for 93% of the global industry assets in
Islamic banking, which are estimated to exceed $920bn in 2015.
The study also forecast the development of the industry up to
2020. By that year, the total Islamic banking assets of commercial
banks in the six core markets are expected to reach $1.6tn and
their overall profit pool is expected to reach $27.8bn. In terms of
Islamic banking market share, Saudi Arabia, Kuwait, Bahrain and
Qatar are expected to be the major players by 2020, with the GCC
providing additional acceleration for future growth of the industry.
Turkey is expected to recover from the current temporary setback
due to the political volatility. Looking specifically at Qatar, the
report says that while the national market share of Islamic
banking plateaued in the recent past, this changed during 2014
when it achieved a noticeable increase and became the third
largest contributor toward global growth in Islamic banking.
Shari’ah-compliant assets of Qatar’s banks grew three times higher
than conventional banking. However, the supply-side initiatives or
the launch of new Islamic banks would be needed if Islamic
banking in Qatar wishes to go mainstream. In total, Qatar had a
national market share of Islamic banking assets of 20.8%, or
$72bn in 2014, and a global share of 8.1%. (Gulf-Times.com)
 Qatar private sector may feel heat if QCB responds to Fed liftoff –
According to experts, Qatar which has not yet responded to the
liftoff of interest rate by the US Federal Reserve, can afford to wait
in the short term, but will have to eventually reciprocate, which
may slowdown the private sector that is increasingly becoming a
growth engine for the country. A banking source said given that
consumer price index inflation is benign and strong growth has to
emerge, especially from the non-hydrocarbon sector, conventional
wisdom suggests continuing with an expansionary monetary
policy over the short-term. Highlighting that the 2016 budget has
itself spelt out the need for raising finance from domestic markets
to plug the more than 26% decline in expected revenues, he said
an interest hike in such a scenario would put additional burden on
the exchequer. Saudi Arabia, the UAE, Kuwait and Bahrain had
increased interest rates, following the Fed’s decision to hike the
rate by 25 basis points, after keeping it near zero for the last seven
years. Qatar Central Bank (QCB) Governor HE Sheikh Abdulla bin
Saoud al-Thani had said in October that Qatar might not need to
increase the interest rates based on the liquidity and looking at the
domestic environment. QCB’s policy rates such as QMR deposit
rate stands at 0.75%, QMR lending rate at 4.5% and repo rate at
4.5%. The deposit and lending rates are announced by the QCB on
overnight deposit and loan deals between it and local banks
through the Qatar Money Market Rate Standing Facility (QMR),
respectively. The Federal Open Market Committee projections

4. Page 4 of 7
suggest that the rate is expected to rise to about 1.4% by 2016-
end, suggesting four more increases over the coming 12 months.
Qatar banking sources said in the long term, it will eventually
prompt the QCB, whose monetary policies are linked to riyal’s
fixed peg with the dollar, to reciprocate. The Ministry of
Development Planning & Statistics (MDPS), in its Qatar Economic
Outlook 2015-17 Update, had said domestic interest rates in Qatar
are likely to rise during 2015-17 on rising funding needs of
government and commercial banks and “accentuated” by the Fed
liftoff. (Gulf-Times.com)
 Waseela opens new Qatar office to tap priority market – Integrated
ICT system and service solutions provider Waseela has launched
its Qatar office as its continues its regional expansion. Through its
new branch in Doha’s Gate Building Tower 2, Waseela taps into
growing demand for integrated ICT systems in Qatar as the
country’s construction boom gathers momentum. Waseela’s Qatar
office offers clients in the country a full spectrum of solutions and
services provided by its subsidiary companies, with smart
solutions for mega construction projects a key area of focus. The
firm is also undertaking specialized projects in the country such as
deploying broadband wireless networks for public security
surveillance, creating public safety wireless systems in
underground tunnels, installing 3G and 4G systems, and delivering
turnkey integrated solutions combining ICT with Extremely Low
Voltage (ELV) and Building Management Systems (BMS).
(AmeInfo.com)
International
 US home prices rise slightly in October 2015 – Annualized US
single-family home prices rose in October 2015 at a slightly faster
pace than in September and above market expectations. The
S&P/Case Shiller composite index of 20 metropolitan areas gained
5.5% in October on a YoY basis compared with 5.4% in the year to
September 2015. It was just above the 5.4% estimate from a
Reuters poll of economists. S&P Dow Jones Indices Managing
Director and Chairman of the index committee, David M. Blitzer
said the generally good economic conditions continue to support
gains in home prices. Among the positive factors are consumers’
expectations of low inflation and further economic growth as well
as recent increases in residential construction including single
family housing starts. Inventories of existing homes have averaged
around a five month supply for last year, a level that suggests a
fairly tight market with limited supplies. (Reuters)
 Barclays in $13.75mn US settlement over mutual funds – Barclays
Plc will pay more than $13.75mn to settle US regulatory charges
that it let retail brokerage customers make unsuitable mutual fund
transactions, including more than 6,100 fund switches, over a five-
year period. The Financial Industry Regulatory Authority(FINRA)
said the London-based bank's Barclays Capital Inc unit will pay
more than $10mn in restitution, including interest, to affected
customers, and was fined $3.75mn. Barclays did not admit or deny
wrongdoing in agreeing to the settlement, which includes a
censure. FINRA said that from January 2010 to June 2015,
Barclays' inadequate supervisory procedures failed to stop many
customers from swapping one mutual fund for another when the
benefits of switching might be undermined by the transaction
costs. This caused $8.63mn of harm to customers, most of whom
were not warned of such costs. (Reuters)
 PBOC to launch new macro-prudential regime to curb risks –
Chinese central bank, People's Bank of China (PBOC), said it will
introduce a new system to assess macro-prudential risks in the
financial system in 2016 as the country's banking assets become
more diversified. The Macro-Prudential Assessment (MPA) system
will replace the current regime of "dynamic adjustments in
differentiated reserve requirements and desirable loan
management" that has been in place since 2011. Under the existing
assessment system, the PBOC uses window guidance and applies
different reserve requirement ratios to different banks to get
lenders to issue loans at a pace that is appropriate to their
respective sizes. The new assessment system will cover banks'
capital adequacy and leverage ratios, assets and liabilities,
liquidity and foreign debt risks. It will also monitor banks' pricing
of interest rates to prevent them from engaging in "vicious
competition". Meanwhile, preliminary data from State
Administration of Foreign Exchange (SAFE) showed a $63.4bn
current account surplus and a $63.4bn deficit on the capital and
financial account in 3Q2015. (Reuters)
 Ukraine central bank expects next tranche of IMF funds in January –
Ukraine central bank Governor Valeriya Gontareva said the
country expects at least one tranche of funding, its third, from the
International Monetary Fund (IMF) in January as Kiev has fulfilled
all preconditions. Ukraine had expected the third tranche, worth
$1.7bn, by the end of 2015. Gontareva said it might now receive
the fourth tranche, also of $1.7bn, at the same time as the third.
Meanwhile, she said the country’s inflation this year had hit 44%,
up from 24.9% in 2014 and foreign exchange reserves had
remained roughly stable at $13.3bn from $13.1bn as of December
01, 2015. The Parliament approved a budget for 2016, a major
condition to secure the next tranche of financial aid under a
$17.5bn IMF loan package as the country teeters on the edge of
bankruptcy. The Parliament backed the government's proposal to
adopt the budget with the deficit at 3.7% of GDP, the figure agreed
with the IMF. Ukraine has already received about $11bn in 2015
from the IMF and other international lenders to shore up its
finances, which were crippled by separatist conflict and years of
economic mismanagement and corruption. (Reuters)
Regional
 SASCO BoD recommends 5% cash dividend for 2015 – Saudi
Automotive Services Company’s (SASCO) board of directors (BoD)
has recommended the distribution of 5% (SR0.5 per share) cash
dividend for the fiscal year 2015, amounting to SR27mn. The
eligibility of dividend shall be for shareholders registered in the
registers of the Securities Depository Center (Tadawul) on the
general assembly meeting day, which will be announced later.
Meanwhile, SASCO said that financial impact of increment in the
electricity, fuel and water prices in the Kingdom will reflect on its
financial statements starting from 1Q2016, while the actual value
of this impact cannot be determined currently. (Tadawul)
 SCC updates on second sanitary ware plant project – Saudi Ceramic
Company (SCC) announced that it had completed the majority of
stages of the second sanitary ware plant. The remaining part of the
project is related to final installation of certain machinery to start
trial production. SCC expects to complete installation of the
remaining machinery of the project and start the trial production
by 1Q2016-end. Meanwhile, SCC said that due to the recent
increase in power supply prices, there will be a material impact on
its operating costs during 2016 and the company will make efforts
to deal with these changes and reduce their impact on its financial
results. (Tadawul)
 SFG BoD proposes 4.5% dividend for 2H2015 – Samba Financial
Group’s (SFG) board of directors (BoD) has proposed the
distribution of 4.5% (45 halalas per share) dividend for 2H2015
amounting to SR1,134mn. The eligibility of dividend shall be for
the shareholders registered in the registers of the Securities
Depository Center (Tadawul) as at the end of trading hours on the
general assembly meeting day, to be held during 1Q2016.
(Tadawul)
 Bank Aljazira shareholders ratify convention signed with AlJazira
Takaful Taawuni – Bank AlJazira’s extraordinary general assembly

5. Page 5 of 7
has ratified the convention signed with AlJazira Takaful Taawuni
Company (related party) to provide collective insurance services
for the bank’s financing portfolios amounting to SR12.95mn. The
shareholders also ratified another convention signed with AlJazira
Takaful on the renewal of the convention of the bank’s collective
insurance personal finance portfolios amounting to SR16.9mn.
(Tadawul)
 Saudi Aramco to build $2.1bn gas industrial complex – Saudi
Arabian Oil Company (Saudi Aramco) is planning to build the
world’s largest industrial gas complex at a total cost of $2.1bn. The
project will be built, owned and operated by Arabian Company for
Water & Power Development (ACWA) and US-based Air Products
& Chemicals. The venture will supply Saudi Aramco with 18,500
metric tons (MT) of oxygen per day and 56,000 MT of nitrogen
that will go to its new oil refinery, whose output is expected to be
400,000 barrels per day. Part of the complex’s nitrogen production
will go to a natural gas-fired power station currently being built in
Jazan with a capacity of 3,700 megawatts (MW). Saudi Fransi bank,
Samba Financial Group, Al-Inma Bank, Saudi British Bank (SABB),
National Commercial Bank, Mizuho Bank, Societe Generale, Bank
Sumitomo Mitsui, Bank of Tokyo-Mitsubishi UFJ and First Gulf
Bank are co-funding the investment evenly. (Ameinfo.com)
 SPC: Higher gas prices to impact 2016 financials – Sahara
Petrochemicals Company (SPC) has said that the impact of
increase in gas prices, coupled with hike in electricity charges, will
be reflected in the financial statements for 2016. The company
said it is working on the calculation of the financial impact, and
will announce the expected figure as soon as possible. (Tadawul)
 Saudi Cement suffers SR66.15mn loss from non-operational kilns –
Saudi Cement Company has incurred SR66.15mn impairment loss
for the net book values of kilns 4 and 5 at the Hofuf factory as at
December 31, 2015. The loss has been recognized due to the
continuation of high clinker inventory and continued export ban,
which together has reduced the possibility of the kilns’ operation
in the foreseeable future to a great extent. It is to be noted that
kilns are not in operation since the completion of rehabilitation
works in September 2014. The profit of the company for 4Q2015
as well as financial year 2015 will be reduced by the amount of the
aforementioned loss. (Tadawul)
 Chemanol estimates impact of increase in gas prices at SR30mn –
Methanol Chemical Company (Chemanol) has said that the
expected financial impact due to the incremental increase in gas
will be around SR30mn annually. Gas prices were increased to
$1.25 per million British thermal units (MMBTU) from $0.75 per
MMBTU, along with an increase in electricity tariff. Such impact
will be reflected in the financial results of 2016 and will represent
an additional cost of production of around 5% as compared to
2015. The company said it will make all possible efforts to contain
these changes, especially amid decline in its products that were
impacted by falling oil prices and global economic fluctuations.
(GulfBase.com)
 KSA to cut reliance on foreign workers – Saudi Arabia has
announced plans to reduce its reliance on expat workers by
recruiting only workers with technical skills and monitoring
investments closely. Finance Minister Ibrahim Al-Assaf said the
Kingdom will now be more selective in hiring foreign workers.
Dismissing rumors and allaying fears of expatriates, he said the
Kingdom has no plans to impose taxes on the income of
expatriates. (GulfBase.com)
 NCB wins approval for derivatives unit – National Commercial Bank
(NCB) has received the regulatory approval to set up a subsidiary
to engage in derivatives trading and repo activities. The Cayman
Islands-based unit, Saudi National Commercial Bank Markets
Limited will be 100% owned by NCB and will have a paid-up
capital of $50,000. The bank said there would be no financial
impact on NCB’s current financial statements due to the
establishment of the company. (Bloomberg)
 Mobily agrees with majority of lenders to waive breach – Etihad
Etisalat Company (Mobily) has agreed with the majority of its
lenders to waive the breach of covenant under several loan
facilities totaling SR12.1bn. Mobily said it is still in negotiations
with others lenders relating to its export credit agency facilities
and other bilateral facilities to reach a similar waiver agreement.
The company had revealed in February 2015 that it was in breach
of the terms of loans from various lenders after issuing a
drastically reduced restatement of previously announced profit. It
had hoped to reach an agreement with lenders to set new
covenants for some outstanding loans by 2015-end. (Reuters)
 Saudi listed companies assess financial impact resulting from fuel,
energy price hike – Several Saudi Arabian-listed companies have
informed that their financials will be impacted in 2016 and
afterwards due to the recent increase in fuel and energy prices by
Saudi government. The companies, namely, Saudi Cable Company,
Almarai Company, Northern Region Cement Company, Abdullah A.
M. Al-Khodari Sons Company and Saudi Arabian Mining Company
(Ma’aden) have said they are currently working to assess the
extent of financial impact and will announce the results of this
study upon its completion. (Tadawul)
 Economic shake-up shows KSA bracing for cheap oil – Saudi
Arabia’s planned cuts in spending and energy subsidies is signaling
that the world’s largest crude exporter is bracing for a prolonged
period of low oil prices. The OPEC heavyweight shows no signs of
wavering in the long-term oil strategy it has been orchestrating
since 2014. Instead, it appears willing to continue tolerating cheap
crude to defend market share and wait for the market to balance
without cutting supplies and oil sources. Saudi Aramco Chairman
Khalid Al Falih said the Kingdom expects the market to balance
sometime in 2016. Analysts said the plans announced on
December 28 to shrink the record state budget deficit with
spending cuts, reforms to energy subsidies and a drive to raise
revenues from taxes and privatization showed Riyadh was
expecting lower revenues. (Reuters)
 Etisalat Group launches first 4K IPTV service in MEA – Emirates
Telecommunications Group Company (Etisalat Group) has
partnered with Huawei to introduce an ultra HD 4K IPTV service in
the Middle East and Africa (MEA), which will be available
exclusively for Etisalat’s eLife customers in the UAE starting in
1Q2016. Etisalat Group’s eLife customers can now enjoy access to
a 4K linear channel and VoD service through Etisalat’s new 4K set-
top box. (Ameinfo.com)
 Cybergun opens second center of recreational shooting in Abu
Dhabi – Cybergun SA has opened its second center of recreational
shooting in Abu Dhabi in the UAE. Cybergun said this launching is
done within the relaunching of the soft air battle zone concept
together with the new associate Tasleeh Entertainment. (Reuters)
 GHC appoints CDO – Gulf Holding Company (GHC) has appointed
Laith Yousif Al Memar as its Chief Development Officer (CDO). In
his new role, Al Memar will oversee GHC’s real estate projects
across the region. (GulfBase.com)
 NBK: Kuwait’s credit growth up 6.6% YoY in October 2015 –
According to a report by the National Bank of Kuwait (NBK), credit
had grown at the most rapid pace in over a year in October 2015,
rising 6.6% YoY, despite a small decline of KD22mn MoM. The
report noted that the Central Bank of Kuwait (CBK) increased its
discount rate by 25 basis points (bps) to 2.25% in December 2015,
following the policy rate hike by the US Federal Reserve. The rate
had remained unchanged at 2% for over three years. NBK said that
the country’s household debt had increased 13.1% YoY to

6. Page 6 of 7
KD107mn in October. Non-bank financial companies resumed
their net reduction of bank credit, with a decline of KD27mn. As
per the report, private deposits had kept their decline in October
2015, registering a relatively large drop of KD776mn. Government
deposits with domestic banks had soared by KD219mn in October
and were up by KD527mn since July 2015. The ratio of
government deposits to bank assets had risen to 10% in October
2015 from 9% in July 2015. System liquidity is still relatively
comfortable, though it has come under some pressure recently.
Banks’ core liquid assets had stood at KD5.1bn in October 2015 or
9% of total bank assets, down from 10-11% before the summer.
(GulfBase.com)
 Ominvest establishes new subsidiary – Oman International
Development & Investment Company’s (Ominvest) board of
directors has approved the establishment of a new subsidiary,
ONIC SAOC with an authorized capital of OMR50mn and a paid-up
capital of OMR20mn. The new company’s capital will be 98%
owned by Ominvest, 1% by Oman Investment Services and 1% by
Salalah Resorts. To enable it to have a greater focus in managing
its financial investments, Ominvest’s non-strategic financial
investments (public and private) will be transferred to its new
subsidiary ONIC. This will lead to realizing efficiencies in the
investment decision making process. Such transfers will have no
bearing on Ominvest’s consolidated (group level) financials,
including the earning per share and book value per share as these
transfers are essentially inter-group transactions. (MSM)
 Omantel launches SIP Trunking service for corporate customers –
Oman Telecommunications Company (Omantel) has launched the
Session Initiation Protocol (SIP) Trunking service for its corporate
customers, enabling a large number of enterprises to benefit from
the internet protocol and value added services provided by SIP.
(GulfBase.com)
 Bank Sohar to fund OMR40mn for Omran’s JW Marriot Hotel – Bank
Sohar will fund OMR39.68mn for building JW Marriott Hotel by
Oman Tourism Development Company (Omran), which is coming
up at the Oman Convention & Exhibition Centre (OCEC) precincts
and is a part of the emerging Al-Irfan City developed by Omran.
The new five-star hotel will be operated under the JW Marriott
brand. The hotel, currently under construction, includes state-of-
the-art food and beverage outlets, meeting facilities and a health &
leisure club. Once completed, it will add an additional 304 keys to
hotel offerings in the Sultanate. (GulfBase.com)
 Batelco appoints Group CEO – Bahrain Telecommunications
Company (Batelco) has appointed Ihab Hinnawi as its Group CEO.
Ihab has been holding the post of Acting Group CEO since February
2015 and has shown excellent leadership skills in directing
operations across the group’s 14 geographies since. (Bahrain
Bourse)
 GFH reveals reason for reconsidering delisting from KSE – GFH
Financial Group has said that the latest amendments to the
implementing regulations of Kuwait’s Capital Markets Authority
(CMA) have made its board of directors (BoD) reconsider their
earlier decision of delisting from the Kuwait Stock Exchange
(KSE). GFH said the new regulations have resolved many shortfalls
of the preceding regulations on disclosure and transparency,
including those which conflicted with GFH’s other regulators’
requirements. The company noted that the new amendments
would allow listed firms to postpone the disclosure of material
information without getting the CMA’s prior approval, until a
binding agreement has been reached in respect of the transaction
or process, if such information might cause harm to the
confidentiality of the negotiations or initial procedures for the
transaction to be carried out. (Bahrain Bourse)
 TRA: Key broadband services cheaper in Bahrain – The
Telecommunications Regulatory Authority’s (TRA) latest retail
price benchmark study of telecommunication services in Arab
countries has revealed that fixed and mobile broadband prices in
Bahrain are lower than the Organization of Economic Cooperation
and Development average. As per the study, mobile broadband
services in Bahrain have become cheaper by up to 55% and fixed
services by up to 85% between 2010 and 2015. The study also
showed customers in Bahrain have benefited from a wide range of
retail telecom services and more data at lower prices.
(GulfBase.com)

7. Contacts
Saugata Sarkar Shahan Keushgerian Zaid al-Nafoosi, CMT, CFTe
Head of Research Senior Research Analyst Senior Research Analyst
Tel: (+974) 4476 6534 Tel: (+974) 4476 6509 Tel: (+974) 4476 6535
saugata.sarkar@qnbfs.com.qa shahan.keushgerian@qnbfs.com.qa zaid.alnafoosi@qnbfs.com.qa
`
QNB Financial Services SPC
Contact Center: (+974) 4476 6666
PO Box 24025
Doha, Qatar
Disclaimer and Copyright Notice: This publication has been prepared by QNB Financial Services SPC (“QNBFS”) a wholly-owned subsidiary of QNB SAQ (“QNB”). QNBFS is regulated by the Qatar Financial
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recommendation to buy or sell securities or other investments, nor is it intended to constitute legal, tax, accounting, or financial advice. QNBFS accepts no liability whatsoever for any direct or indirect
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Page 7 of 7
Rebased Performance Daily Index Performance
Source: Bloomberg Source: Bloomberg
Source: Bloomberg Source: Bloomberg (*$ adjusted returns)
80.0
100.0
120.0
140.0
160.0
180.0
Nov-11 Nov-12 Nov-13 Nov-14 Nov-15
QSE Index S&P Pan Arab S&P GCC
(0.9%)
0.0%
(0.8%)
(0.2%) (0.1%)
1.0%
0.5%
(1.0%)
(0.5%)
0.0%
0.5%
1.0%
1.5%
SaudiArabia
Qatar
Kuwait
Bahrain
Oman
AbuDhabi
Dubai
Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D%* WTD%* YTD%*
Gold/Ounce 1,069.10 (0.0) (0.6) (9.8) MSCI World Index 1,685.62 0.9 0.7 (1.4)
Silver/Ounce 13.96 0.2 (2.8) (11.1) DJ Industrial 17,720.98 1.1 1.0 (0.6)
Crude Oil (Brent)/Barrel (FM Future) 37.79 3.2 (0.3) (34.1) S&P 500 2,078.36 1.1 0.8 0.9
Crude Oil (WTI)/Barrel (FM Future) 37.87 2.9 (0.6) (28.9) NASDAQ 100 5,107.94 1.3 1.2 7.9
Natural Gas (Henry Hub)/MMBtu 2.37 13.6 54.9 (21.0) STOXX 600 369.68 1.0 0.7 (2.5)
LPG Propane (Arab Gulf)/Ton 39.25 3.3 1.6 (19.9) DAX 10,860.14 1.5 1.7 (0.4)
LPG Butane (Arab Gulf)/Ton 55.00 3.0 0.9 (12.4) FTSE 100 6,314.57 0.1 0.1 (8.6)
Euro 1.09 (0.4) (0.4) (9.7) CAC 40 4,701.36 1.4 0.6 (0.6)
Yen 120.46 0.0 0.1 0.6 Nikkei 18,982.23 0.5 1.1 7.9
GBP 1.48 (0.4) (0.6) (4.9) MSCI EM 799.69 (0.1) (0.6) (16.4)
CHF 1.01 (0.5) (0.5) 0.1 SHANGHAI SE Composite 3,563.74 0.9 (2.1) 5.5
AUD 0.73 0.6 0.2 (10.8) HANG SENG 21,999.62 0.4 (0.6) (6.8)
USD Index 98.10 0.2 0.3 8.7 BSE SENSEX 26,079.48 (0.1) 0.6 (9.5)
RUB 72.31 0.1 2.3 19.0 Bovespa 43,653.97 (1.0) 1.0 (40.6)
BRL 0.26 (0.2) 2.1 (31.4) RTS 769.64 1.8 (0.4) (2.7)
121.9
104.6
102.8