The QSE Index rose marginally to close at 9,981.2.

1. Page 1 of 8
QSE Intra-Day Movement
Qatar Commentary
The QSE Index rose marginally to close at 9,981.2. Gains were led by the Real Estate
and Insurance indices, gaining 1.5% and 0.9%, respectively. Top gainers were Doha
Insurance Group and Islamic Holding Group, rising 8.9% and 6.0%, respectively.
Among the top losers, Al Khaleej Takaful Insurance Company fell 4.5%, while Ahli
Bank was down 3.2%.
GCC Commentary
Saudi Arabia: The TASI Index fell 0.4% to close at 8,253.5. Losses were led by the
Pharma, Biotech and Capital Goods indices, falling 1.7% and 1.1%, respectively.
Arabian Shield Coop. declined 10.0%, while Wafrah for Ind. & Dev. was down 5.9%.
Dubai: The DFM General Index declined 0.2% to close at 2,973.9. The Services index
fell 1.2%, while the Real Estate & Const. index declined 0.7%. Drake & Scull
International fell 3.5%, while Khaleeji Commercial Bank was down 3.3%.
Abu Dhabi: The ADX General Index fell 0.7% to close at 4,811.4. The Energy index
declined 1.8%, while the Consumer Staples index fell 1.7%. Invest Bank declined
9.3%, while Ras Al Khaimah for White Cement was down 7.4%.
Kuwait: The Kuwait Main Market Index rose 0.1% to close at 4,946.2. The Basic
Material index gained 0.8%, while the Technology index rose 0.7%. National
Shooting Company gained 7.3%, while Warba Insurance Company was up 6.8%.
Oman: The MSM 30 Index fell 0.3% to close at 4,326.7. Losses were led by the
Industrial and Services indices, falling 1.0% and 0.2%, respectively. Raysut Cement
fell 9.9%, while Dhofar Int. Dev. and Inv. Holding was down 3.5%.
Bahrain: The BHB Index fell 0.3% to close at 1,349.2. The Investment index
declined 0.5%, while the Commercial Banks index fell 0.4%. Investcorp Bank
declined 3.8%, while Al Salam Bank - Bahrain was down 1.9%.
QSE Top Gainers Close* 1D% Vol. ‘000 YTD%
Doha Insurance Group 13.40 8.9 2.0 (4.3)
Islamic Holding Group 29.05 6.0 120.0 (22.5)
Qatari Investors Group 32.26 4.4 121.2 (11.9)
Ezdan Holding Group 10.20 2.6 1,477.6 (15.6)
Qatar International Islamic Bank 58.25 1.8 72.5 6.7
QSE Top Volume Trades Close* 1D% Vol. ‘000 YTD%
Ezdan Holding Group 10.20 2.6 1,477.6 (15.6)
Vodafone Qatar 9.18 (0.1) 870.8 14.5
Qatar Gas Transport Company Ltd. 17.00 0.9 811.0 5.6
Al Khaleej Takaful Insurance Co. 10.59 (4.5) 486.8 (20.0)
Mazaya Qatar Real Estate Dev. 7.25 0.7 336.8 (19.4)
Market Indicators 02 Aug 18 01 Aug 18 %Chg.
Value Traded (QR mn) 184.1 238.3 (22.8)
Exch. Market Cap. (QR mn) 550,539.5 549,804.1 0.1
Volume (mn) 7.3 6.6 10.1
Number of Transactions 3,808 3,827 (0.5)
Companies Traded 43 41 4.9
Market Breadth 21:14 26:13 –
Market Indices Close 1D% WTD% YTD% TTM P/E
Total Return 17,585.80 0.0 3.9 23.0 15.1
All Share Index 2,913.96 0.3 5.3 18.8 15.3
Banks 3,593.21 (0.1) 6.5 34.0 14.6
Industrials 3,199.86 0.2 2.7 22.1 17.0
Transportation 2,017.85 0.6 2.8 14.1 12.6
Real Estate 1,843.32 1.5 12.9 (3.8) 15.7
Insurance 3,213.00 0.9 5.4 (7.7) 30.1
Telecoms 1,008.62 (0.0) (3.5) (8.2) 39.6
Consumer 6,301.50 0.0 (0.5) 27.0 13.6
Al Rayan Islamic Index 3,910.46 0.2 2.1 14.3 17.1
GCC Top Gainers
##
Exchange Close
#
1D% Vol. ‘000 YTD%
Taiba Holding Co. Saudi Arabia 30.90 2.3 76.3 (11.2)
Qatar Int. Islamic Bank Qatar 58.25 1.8 72.5 6.7
Middle East Health. Co. Saudi Arabia 57.30 1.8 108.8 6.4
Mabanee Co. Kuwait 0.67 1.7 107.7 (0.4)
Agility Public Ware. Co. Kuwait 0.86 1.6 1,499.0 23.7
GCC Top Losers
##
Exchange Close
#
1D% Vol. ‘000 YTD%
Raysut Cement Oman 0.44 (9.9) 39.3 (43.8)
National Mobile Telecom. Kuwait 0.80 (2.5) 5.0 (26.4)
Saudi Int. Petrochemical Saudi Arabia 22.38 (2.3) 579.7 28.3
Bupa Arabia for Coop. Ins. Saudi Arabia 82.20 (2.1) 49.1 (11.6)
Kuwait Projects Co. Kuwait 0.23 (2.1) 1,472.5 (27.3)
Source: Bloomberg (# in Local Currency) (## GCC Top gainers/losers derived from the S&P GCC
Composite Large Mid Cap Index)
QSE Top Losers Close* 1D% Vol. ‘000 YTD%
Al Khaleej Takaful Insurance Co. 10.59 (4.5) 486.8 (20.0)
Ahli Bank 30.70 (3.2) 0.4 (17.3)
Qatar Industrial Manuf. Co 41.09 (1.5) 5.1 (6.0)
The Commercial Bank 41.99 (1.2) 295.3 45.3
Al Meera Consumer Goods Co. 162.00 (0.6) 2.6 11.8
QSE Top Value Trades Close* 1D% Val. ‘000 YTD%
QNB Group 178.99 (0.0) 21,526.2 42.0
Industries Qatar 125.00 0.0 16,724.9 28.9
Ezdan Holding Group 10.20 2.6 15,210.0 (15.6)
Qatar Gas Transport Co. Ltd. 17.00 0.9 13,817.5 5.6
The Commercial Bank 41.99 (1.2) 12,335.5 45.3
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* 9,981.22 0.0 3.9 1.6 17.1 50.65 151,233.2 15.1 1.5 4.4
Dubai 2,973.94 (0.2) 0.9 0.6 (11.8) 26.54 104,629.2 9.4 1.1 5.7
Abu Dhabi 4,811.42 (0.7) (0.7) (1.0) 9.4 38.54 131,391.4 12.6 1.4 5.0
Saudi Arabia 8,253.54 (0.4) (1.4) (0.5) 14.2 1,020.13 523,615.6 17.8 1.8 3.3
Kuwait 4,946.19 0.1 (0.1) 0.3 2.4 62.91 34,120.4 15.4 0.9 4.0
Oman 4,326.67 (0.3) (0.2) (0.2) (15.2) 2.53 18,500.4 8.8 0.9 6.3
Bahrain 1,349.17 (0.3) (1.4) (0.7) 1.3 17.85 20,702.0 8.5 0.9 6.1
Source: Bloomberg, Qatar Stock Exchange, Tadawul, Muscat Securities Market and Dubai Financial Market (** TTM; * Value traded ($ mn) do not include special trades, if any)
9,900
9,920
9,940
9,960
9,980
10,000
9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00

2. Page 2 of 8
Qatar Market Commentary
 The QSE Index rose marginally to close at 9,981.2. The Real Estate and
Insurance 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.
 Doha Insurance Group and Islamic Holding Group were the top gainers,
rising 8.9% and 6.0%, respectively. Among the top losers, Al Khaleej
Takaful Insurance Company fell 4.5%, while Ahli Bank was down 3.2%.
 Volume of shares traded on Thursday rose by 10.1% to 7.3mn from
6.6mn on Wednesday. Further, as compared to the 30-day moving
average of 7.1mn, volume for the day was 2.7% higher. Ezdan Holding
Group and Vodafone Qatar were the most active stocks, contributing
20.2% and 11.9% to the total volume, respectively.
Source: Qatar Stock Exchange (* as a % of traded value)
Earnings Releases, Global Economic Data and Earnings Calendar
Earnings Releases
Company Market Currency
Revenue (mn)
2Q2018
% Change
YoY
Operating Profit
(mn) 2Q2018
% Change
YoY
Net Profit
(mn) 2Q2018
% Change
YoY
Bupa Arabia for Cooperative
Insurance Co.
Saudi Arabia SR 2,019.6 9.3% – – 23.2 39.5%
Alinma Tokio Marine Co.#
Saudi Arabia SR 100.9 -2.0% – – 2.2 102.8%
Wataniya Insurance Co. Saudi Arabia SR 164.5 99.2% – – 0.9 -99.9%
Al Hassan Ghazi Ibrahim Shaker
Co.
Saudi Arabia SR – – -29.8 N/A -36.6 N/A
Raydan Co. Saudi Arabia SR – – 7.4 1.8% 7.0 7.3%
Saudi Steel Pipe Co. Saudi Arabia SR – – -12.9 N/A -36.8 N/A
Lazurde Company for Jewelry Saudi Arabia SR – – 17.4 10.4% 4.8 -24.6%
Saudi Ceramic Co. Saudi Arabia SR – – -33.1 N/A -46.5 N/A
Tourism Enterprise Co. Saudi Arabia SR – – -1.1 N/A -1.3 N/A
Astra Industrial Group Saudi Arabia SR – – 31.6 35.7% 16.1 129.8%
Al-Jouf Agricultural Development
Co.
Saudi Arabia SR – – 29.6 154.6% 26.1 237.9%
Alkhaleej Training and Education
Co.
Saudi Arabia SR – – -2.7 N/A -7.1 N/A
Dubai Insurance Co. Dubai AED 135.1 3.5% – – 18.6 52.8%
National Central Cooling Co. Dubai AED 376.2 1.9% 122.2 3.3% 134.2 14.4%
Takaful-Emarat Dubai AED 15.9 -44.2% – – 0.3 36.9%
Abu Dhabi National Hotels Co. Abu Dhabi AED 274.6 -4.5% – – 44.4 10.8%
Ras Al Khaimah Cement Company Abu Dhabi AED 59.9 42.7% – – 5.0 N/A
Al Khaleej Investment Abu Dhabi AED 6.4 -9.3% – – 3.9 -49.2%
Gulf Medical Projects Company Abu Dhabi AED 120.3 10.8% – – 18.4 260.8%
RAK Ceramics Abu Dhabi AED 719.2 -0.3% 82.8 18.6% 44.8 -55.7%
National International Holding
Company
Kuwait KD 1.4 10.0% – – 0.8 1.9%
United Gulf Holding Company Bahrain USD 41.0 -53.7% – – 5.5 -53.8%
Source: Company data, DFM, ADX, MSM, TASI, BHB. (
#
Values in ‘000)
Overall Activity Buy %* Sell %* Net (QR)
Qatari Individuals 42.15% 45.98% (7,050,585.05)
Qatari Institutions 2.59% 13.88% (20,781,580.13)
Qatari 44.74% 59.86% (27,832,165.18)
GCC Individuals 1.81% 1.20% 1,138,419.68
GCC Institutions 1.62% 4.56% (5,406,782.12)
GCC 3.43% 5.76% (4,268,362.44)
Non-Qatari Individuals 12.77% 12.73% 72,187.79
Non-Qatari Institutions 39.05% 21.65% 32,028,339.83
Non-Qatari 51.82% 34.38% 32,100,527.62

3. Page 3 of 8
Global Economic Data
Date Market Source Indicator Period Actual Consensus Previous
08/02 US Department of Labor Initial Jobless Claims 28-July 218k 220k 217k
08/02 US Department of Labor Continuing Claims 21-July 1,724k 1,750k 1,747k
08/03 US US Census Bureau Trade Balance June -$46.3bn -$46.5bn -$43.2bn
08/03 US Bureau of Labor Statistics Unemployment Rate July 3.9% 3.9% 4.0%
08/03 US Markit Markit US Services PMI July 56.0 56.2 56.2
08/03 US Markit Markit US Composite PMI July 55.7 – 55.9
08/02 EU Eurostat PPI MoM June 0.4% 0.3% 0.8%
08/02 EU Eurostat PPI YoY June 3.6% 3.5% 3.0%
08/03 EU Markit Markit Eurozone Services PMI July 54.2 54.4 54.4
08/03 EU Markit Markit Eurozone Composite PMI July 54.3 54.3 54.3
08/03 EU Eurostat Retail Sales MoM June 0.3% 0.4% 0.3%
08/03 EU Eurostat Retail Sales YoY June 1.2% 1.4% 1.6%
08/03 Germany Markit Markit Germany Services PMI July 54.1 54.4 54.4
08/03 Germany Markit Markit/BME Germany Composite PMI July 55.0 55.2 55.2
08/03 France Markit Markit France Services PMI July 54.9 55.3 55.3
08/03 France Markit Markit France Composite PMI July 54.4 54.5 54.5
08/03 India Markit Nikkei India PMI Services July 54.2 – 52.6
08/03 India Markit Nikkei India PMI Composite July 54.1 – 53.3
Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted)
Earnings Calendar
Tickers Company Name Date of reporting 2Q2018 results No. of days remaining Status
GISS Gulf International Services 5-Aug-18 0 Due
MPHC Mesaieed Petrochemical Holding Company 6-Aug-18 1 Due
MCGS Medicare Group 6-Aug-18 1 Due
IGRD Investment Holding Group 6-Aug-18 1 Due
MERS Al Meera Consumer Goods Company 7-Aug-18 2 Due
QGMD Qatari German Company for Medical Devices 8-Aug-18 3 Due
IQCD Industries Qatar 8-Aug-18 3 Due
ZHCD Zad Holding Company 9-Aug-18 4 Due
MRDS Mazaya Qatar Real Estate Development 13-Aug-18 8 Due
Source: QSE

4. Page 4 of 8
News
Qatar
 MCCS’ net profit comes in flat YoY but decreases by ~16% QoQ
in 2Q2018 – Mannai Corporation’s (MCCS) YoY net profit came
in flat (but decreased ~16% QoQ) at ~QR76mn in 2Q2018. EPS
amounted to QR3.66 in 1H2018 as compared to QR3.65 in
1H2017. In 1H2018, MCCS reported QR167mn net profit on
revenue worth QR5.1bn. MCCS’ EBITDA rose by 56% to
QR444mn compared to QR284mn, and pre-tax profit rose by
25% to QR209mn compared to QR167mn in the previous year.
In line with the group’s strategy of diversifying geographically,
MCCS acquired additional 15.39% share in GFI Informatique,
France during the first half of 2018 and currently holds 96.6%.
MCCS stated that the group is well positioned to participate in
the major infrastructure development projects and services
sector in the state of Qatar and is optimistic of the future. (QSE,
Gulf-Times.com)
 QCFS’ net profit declines 19.5% YoY and 18.2% QoQ in 2Q2018
– Qatar Cinema and Film Distribution Company’s (QCFS) net
profit declined 19.5% YoY (-18.2% QoQ) to QR2.22mn in
2Q2018. In 1H2018, QCFS reported net profit of QR4.94mn as
compared to QR5.71mn in 1H2017. EPS fell to QR0.79 in 1H2018
from QR0.91 in 1H2017. (QSE)
 Fitch and Moody’s upgrade The Commercial Bank’s outlook –
Global credit rating agencies Fitch and Moody’s have upgraded
the outlook of The Commercial Bank to ‘Stable’ and affirmed
the long-term issuer default ratings (IDR) at ‘A’ (Fitch) and ‘A3’
(Moody’s), reflecting the strength of Qatar’s economy and the
banking sector. In a statement, The Commercial Bank stated,
“Qatar has demonstrated strong financial performance despite
the diplomatic boycott by three GCC neighbors, with Moody’s
expecting no change in the capacity of the government to
support the country’s banks. The Commercial Bank has also
maintained strong asset quality, capital and liquidity buffers.”
The Commercial Bank’s CEO, Joseph Abraham said, “This news
reflects the commitment by Qatar’s government to maintain
the resilience and stability of Qatar’s banking system, with
Qatar emerging from the boycott stronger than it was before.
The Commercial Bank is closely aligned with the strategic
economic objectives of the nation and we are well-positioned to
benefit from Qatar’s continued economic growth.” (Gulf-
Times.com)
 Container traffic rises 30% at Hamad Port in July – Hamad Port
is continuing to see huge rise in traffic. The QR27bn port
witnessed 30% rise in the handling of goods containers in July.
The port handled 122,827 Twenty-Foot Equivalent Units
(TEUs) containers last month, according to Mwani Qatar data.
It had handled 94,911 TEUs containers in June. The strong
momentum was also seen in vehicle movement. The port,
which has a capacity to receive 500,000 vehicles per year,
witnessed around 20% rise in the handling of vehicles. A total
of 5,643 vehicles were handled last month compared to 4,708
vehicles handled by the port in June. Last month, 133
commercial vessels called at Hamad Port, which is one of the
largest multipurpose ports in the region. It handled 61,280 tons
of break bulk cargo in July, while 8,005 tons of bulk cargo was
handled during the month. (Peninsula Qatar)
 Rise in Qatar’s listed government bond value – The value of
Qatar’s listed government bonds saw a staggering growth of
94.21% to QR12.57bn in 2017, from QR6.4bn in the previous
year. Listed T-bills value increased by 32.26% to QR12.75bn
from QR9.64bn in 2016, according to the Qatar Financial
Markets Authority (QFMA). In its annual report, the market
regulatory body noted the value of traded government bonds
also increased by 17.05% YoY, from QR3bn to QR3.55bn. The
year 2017 saw the share of total equity ownership of Qatari
investors, individual and institutional, slipping to 91.09% from
91.47% on YoY. The share of equity ownership percent of
foreign investors rose to 8.91% from 8.5%. While foreign
individual investors’ equity ownership rose to 2.19% from
2.10%, institutional investors’ share increased to 6.72% from
6.43%. (Peninsula Qatar)
 QCB’s Chief lauds QFMA’s role in developing Qatari capital
market – The Governor of the Qatar Central Bank (QCB) lauded
the role played by the Qatar Financial Markets Authority
(QFMA) in developing the country’s financial market amid the
blockade imposed by four Arab countries in June last year.
QCB’s Governor, HE Sheikh Abdulla Bin Saoud Al Thani said,
“The procedures and decisions issued by QFMA have played an
active role not only in strengthening the Qatari capital market
under the blockade, but also in delivering more achievements
and development of such market as well as making it more
resilient against sudden fluctuations or subversive plans that
aim to undermine the development of the Qatari financial
markets.” The QCB’s Governor, who is also QFMA’s Chairman,
stressed that the efforts of the QFMA and financial sector
regulators during the second half of 2017 resulted in achieving a
record success and addressing the attempts of the unjust
blockade imposed on the State to harm the Qatari financial
sector. (Gulf-Times.com)
 Ooredoo’s 5G home broadband test results show mega speeds
available – With over 75 5G-ready Ooredoo network towers
now in place around Doha, Ooredoo has announced that it is
pushing forward with testing the first-ever live 5G home
broadband devices. The first results of rigorous stress tests
using the 25 home broadband 5G devices show superfast ‘fiber
comparable’ speeds on the Ooredoo 5G networks, the company
stated in a press statement. These tests were conducted in real-
life non-laboratory environments across various parts of the
city. Ooredoo was the first company in the world to launch a
commercial 5G network in May and has since invested heavily
in rolling out the next generation technology to ensure Qatar is
at the forefront of 5G developments and the 5G ecosystem.
(Gulf-Times.com)
 Qatari stocks have the highest level of foreign investment since
2014 – Qatari stocks captured about QR5.4bn in net foreign
inflows this year through August 1, the highest for the period in
four years, according to data compiled by Bloomberg. This was
the highest inflow by foreigners since 2014, when Qatar was
added to the emerging markets (EM) index compiled by MSCI,
leading to billions in inflows by fund managers tracking the
gauge. Several large caps, including QNB Group and Industries
Qatar, this year increased the foreign ownership limit for

5. Page 5 of 8
foreigners to 49%, prompting a higher weighting in EM
benchmarks. (Bloomberg)
 Doha, suburbs witnessing hectic construction activity – A
number of areas in Doha and beyond are witnessing hectic
construction activity as part of various infrastructure projects
aimed at improving the lives of people, some Central Municipal
Council (CMC) members have stressed. The Council’s members
said these projects included roads, lighting works, commercial
complexes and outlets, water and sewage networks, and
healthcare centers. A considerable number of such projects
have been accomplished over the last six months while others
are being implemented, they point out, adding that more
projects are expected to be launched soon for further
development in various areas. They praised the efforts of the
entities involved in such initiatives, such as the Ministry of
Municipality and Environment, Public Works Authority
(Ashghal), Ministry of Public Health and others, as a good
number of these projects were being accomplished in record
time. (Gulf-Times.com)
International
 US June trade deficit posts biggest rise in 1-1/2 years – The US
trade deficit recorded its biggest increase in more than 1-1/2
years in June as the boost to exports from soybean shipments
faded and higher oil prices lifted the import bill. The Commerce
Department stated the trade gap increased 7.3% to $46.3bn.
The rise in percentage terms was the biggest since November
2016. Data for May was revised slightly to show the trade
deficit falling to $43.2bn, instead of the previously reported
$43.1bn. Economists polled by Reuters had forecast the trade
deficit widening to $46.5bn in June. The trade gap narrowed in
April and May as farmers front-loaded soybean exports to China
before China’s retaliatory tariffs came into effect in early July.
(Reuters)
 US job growth slows in July, unemployment rate drops – US job
growth slowed more than expected in July as employment in
the transportation and utilities sectors fell, but a drop in the
unemployment rate suggested that labor market conditions
continued to tighten. With manufacturing payrolls increasing
by the most in seven months, the moderation in hiring reported
by the Labor Department likely does not reflect the rising trade
tensions between the US and other nations including China.
Nonfarm payrolls increased by 157,000 jobs last month, still
more than the roughly 120,000 jobs per month needed to keep
up with growth in the working-age population. The economy
created 59,000 more jobs in May and June than previously
reported. (Reuters)
 Bank of England raises rates above crisis lows, signals no rush
for next hike – The Bank of England (BoE) pushed interest rates
above their financial crisis lows, but signaled it was in no hurry
to raise them further as Britain heads for Brexit next year with
no clear plan for leaving the European Union. The BoE’s nine
rate-setters unexpectedly voted unanimously to raise rates to
0.75% from 0.50%, the level at which they have spent most of
the past decade, apart from a period after the 2016 Brexit vote
when they were cut even lower. (Reuters)
 QNB Group: Bank of Japan may continue its ultra-radical
monetary policy – Japan may have been usurped by China as
the world’s second largest economy some years ago, but it
remains of critical importance to global economy, QNB Group
stated in its latest report. “For starters, it still accounts for a
substantial 4.5% of global GDP at purchasing power parity as
per the International Monetary Fund estimates. Second, Japan’s
financial markets play a major role in the global economy as the
Japanese Yen (JPY), a key reserve currency. Japan’s
government bonds (JGBs) market is also the largest global
sovereign bond market ensuring that JGB yields operate as a
key anchor for global interest rates. Lastly, Japan has long been
the vanguard of global monetary policy developments. The
Bank of Japan (BoJ) has been battling deflation for over two
decades and was the first major central bank to hit the zero
bound (policy rates dropping to zero) and also the first to adopt
quantitative easing (QE): the large scale purchase of
government securities,” QNB Group stated. (Gulf-Times.com)
 Japan’s steelmakers shrug off US tariffs in earnings but warn on
automobile duties – Japanese steelmakers reported little fallout
in their first-quarter earnings from the US import tariffs on
steel, but they all voiced growing concerns over possible US
duties on automobiles which could hurt a wide range of Japan’s
industries. US President Donald Trump ordered a national
security probe into imports of automobiles in May. Similar
national security investigations were the precursor to the
imposition of import tariffs of 25% on steel and 10% on
aluminum in March. (Reuters)
 Japan’s July services PMI slows slightly in sign of subdued
activity – Activity in Japan’s services sector cooled slightly in
July from the previous month as new orders grew at a slower
pace, a private survey showed, suggesting the economy may
have lost some momentum at the start of the third quarter. The
Markit/Nikkei Japan Services Purchasing Managers Index
(PMI) fell to 51.3 on a seasonally adjusted basis from 51.4 in
June, though it has remained above the 50 threshold that
separates expansion from contraction for the 22nd consecutive
month. (Reuters)
 China plans tariffs on $60bn of US goods in latest trade salvo –
China proposed retaliatory tariffs on $60bn worth of US goods
ranging from liquefied natural gas (LNG) to some aircraft, as a
senior Chinese diplomat cast doubt on prospects of talks with
US to solve their trade conflict. The Trump administration
tightened pressure for trade concessions from China this week
by proposing a higher 25% tariff on $200bn worth of Chinese
imports. China vowed to retaliate while also urging US to act
rationally and return to talks to resolve the dispute. The US and
China implemented tariffs on $34bn worth of each others’
goods in July. The US is expected to soon implement tariffs on
an additional $16bn of Chinese goods, which China has already
announced it will match immediately. (Reuters)
 China rejects US request to cut Iran oil imports – The US has
been unable to persuade China to cut Iranian oil imports,
according to sources, dealing a blow to President Donald
Trump’s efforts to isolate the Islamic Republic after his
withdrawal from the 2015 nuclear accord. China has, however,
agreed not to ramp up purchases of Iranian crude, according to
sources. That would ease concerns that China would work to
undermine US efforts to isolate the Islamic Republic by
purchasing excess oil. (Bloomberg)

6. Page 6 of 8
 China’s July services new business growth weakest since
December 2015 – China’s services sector expanded at the
weakest pace in four months in July, as there was the least
growth in new business since December 2015, a private survey
showed. Forward-looking sentiment meanwhile was the
second-weakest on record, with respondents blaming concerns
surrounding company restructuring and the impact of the US-
China trade war. For July, the Caixin/Markit services
purchasing managers’ index (PMI) fell to 52.8, the lowest since
March, from June’s 53.9. The 50-mark separates growth from
contraction. The findings were largely in line with those of an
official gauge of the non-manufacturing sector released, which
showed the services PMI falling in July. (Reuters)
Regional
 Investment activity in MENA region sustains growth in 1H2018
– MENA region’s startup ecosystem continued growth with a
record number of transactions in 1H2018, despite a drop in
disclosed startup funding, MAGNiTT stated in its Venture
Investment report. According to the report, 141 investments
were made in 1H2018, which marks a 12% increase on the
number of deals for 1H2017. Total disclosed funding is down
43% to $112mn as compared to the same period in 2017 when
stripping out Careem’s $150mn investment in 1H2017.
(GulfBase.com)
 GCC countries to break dependence on hydrocarbons by 2050 –
GCC countries will finally achieve the goal of diversifying their
economies away from oil over the next three decades, according
to a report from Fitch Solutions (Fitch). Fitch also predicted
growing Chinese and Asian economic and military influence in
the region with India also expected to play a bigger role.
Additionally, the report flagged up the regional dangers of high
youth unemployment and burgeoning populations that would
ramp up the number of people struggling to find work and
possibly lead to more popular upheavals of the type seen in
countries such as Egypt and Tunisia in 2011, but the outlook for
the GCC was more upbeat. The report stated that there would
be progress at last, as the GCC nations made tangible strides
toward economic diversification. (GulfBase.com)
 Quest for size has Gulf banks rushing to seal takeover deals –
After a long pause, deals between Gulf banks are kicking up a
gear. Lenders across the region are undergoing their biggest
shake up since 2007, with almost a dozen of them involved in
takeovers or mergers over the past two years. The companies
are bulking up to cope with declining government revenues
following a drop in oil prices that squeezed deposits. They’re
also combining operations in a market seen as overbanked for
the population size. Sergey Dergachev at Union Investment
Privatfonds GmbH in Frankfurt said, “We will see more bank
consolidation in the GCC, with most activity likely in the UAE.
Compared to Saudi Arabia, the population in the UAE is
excessively banked with a few large banks and lots of smaller
ones.” (Gulf-Times.com)
 Al Rajhi Capital expects Saudi Arabia’s oil revenues to reach
SR547.5bn in 2018 – Al Rajhi Capital expects Saudi Arabia’s oil
revenues in 2Q2018 to reach SR134bn, while for the full year it
is expected to touch SR547.5bn, which is 11.3% higher than the
budget target of SR492bn. This is likely to lower deficit by 28%
in 2018, according to the report. The International Monetary
Fund (IMF) had raised Saudi Arabia’s 2018 growth forecast to
1.9% as against 1.7% projected earlier on account of higher oil
output amid firm crude oil prices and structural reforms. The
fiscal deficit will shrink from 9.3% of GDP in 2017 to 4.6% and
1.7% in 2018 and 2019, respectively, according to Al Rajhi
Capital. (GulfBase.com)
 Tadawul announces the listing of Swicorp Wabel REIT Fund –
The Saudi Stock Exchange Company (Tadawul) announced the
listing and trading units of Swicorp Wabel REIT Fund beginning
August 6, 2018, with the symbol 4345 in the Real Estate
Investment Traded Funds (REITs) sector, with a 10% daily
price fluctuation limit per unit. (Tadawul)
 Saudi Arabia reduced oil production in July – Saudi Arabia,
which recently pledged oil-supply increases to tame rallying
crude prices, cut production in July, according to The
Organization of Petroleum Exporting Countries (OPEC). Saudi
Arabia pumped 10.3mn bpd in July. The Kingdom told the group
it produced 10.489mn bpd in June. The cutback comes despite
promises from Saudi Arabia’s Energy Minister, Khalid Al-Falih
that key OPEC members and their allies would add about 1mn
barrels of supply, doing whatever is necessary to keep the
market in balance. (Gulf-Times.com)
 Saudi Arabia resumes oil exports through Red Sea lane – Saudi
Arabia stated that it resumed all oil shipments through the
strategic Red Sea shipping lane of Bab Al-Mandeb. Saudi Arabia
had halted temporarily oil shipments through the lane on July
25, after attacks on two oil tankers by Yemen’s Houthi
movement. (Gulf-Times.com)
 Affordable housing to boost Riyadh’s property market –
Although market conditions in Saudi Arabia’s capital Riyadh
remain relatively unchanged in 2Q2018, the government’s
continued focus on providing affordable housing to its nationals
will in turn boost the city’s overall real estate sector, according
to a JLL’s report. In line with the National Transformation
Program 2020, Ministry of Housing is aiming to increase home
ownership for nationals from 47% to 52% through boosting
affordable residential supply, stated JLL in its report. A
continued focus on this sector of the market was evident this
quarter with the ministry announcing eight new public-private
partnership (PPP) agreements and the distribution of 105,174
affordable residential products during the year to May, it added.
(GulfBase.com)
 Sharjah’s property market on solid growth track – The Sharjah’s
property market is marching ahead amid strong demand.
Sharjah Holding, a strategic partnership between Majid Al
Futtaim-Properties and Sharjah Asset Management, have
announced the sale of its 1,000th home at Al Zahia, Sharjah’s
premier lifestyle destination, marking a key milestone for the
community as it approaches its halfway sales point. Al Zahia
will feature 2,270 homes upon its completion in 2022.
Coinciding with this occasion, Al Zahia is offering, for a limited
time, a summer sales promotion on apartments, villas and
townhouses. (GulfBase.com)
 Major pact signed to support SMEs in Oman – Bank Nizwa
teamed up with Zubair Small Enterprises Centre (Zubair SEC), a
social impact initiative by the Zubair Corporation, to support
the growth of small and medium enterprises (SMEs) in Oman, in
a move reflecting its strong dedication to become the financing

7. Page 7 of 8
platform of choice for entrepreneurs. With the aim of
facilitating trade and economic growth in the Sultanate, both
parties signed a Memorandum of Understanding (MoU) under
which Bank Nizwa agreed to offer its portfolio of commercial
banking services to Zubair SEC’s database of entrepreneurs,
giving them the tools required to succeed and grow in a
sustainable manner. The joint cooperation is expected to ramp
up the SME base in Oman, creating employment opportunities
for young Omanis, contributing to the GDP, and creating
funding opportunities. (GulfBase.com)
 Duqm Port offers 100 hectares of land for logistics – Port of
Duqm is opening up 100 hectares of new real estate for
investment. It follows the successful uptake of almost all of the
65 hectares of land offered by the port authority under the first
stage of a multiphase plan to create industrial and logistics
clusters in areas that fall under the port’s jurisdiction. Duqm
Industrial Land Company (DILC) is a special purpose vehicle set
up by the port company to develop and market an estimated
5,000 hectares of land allocated for medium and heavy
industries, as well as logistics investment, in the vicinity of the
port. (GulfBase.com)
 Bahrain central bank’s net foreign assets rebound in June – Net
foreign assets at Bahrain’s central bank, an indication of its
ability to defend its currency against market pressure,
rebounded in June, the central bank stated. The assets rose to
BHD820.6mn in June from BHD671.1mn in May. However, net
foreign assets at Bahraini retail banks fell in June, to minus
BHD1.26bn from minus BHD1.20bn, meaning their liabilities
exceeded assets. Foreign assets have been under pressure as
Bahrain runs fiscal and current account deficits fuelled by low
oil prices. (Reuters)
 NBK Bahrain profit hits BHD55mn in 1H2018 – National Bank
of Kuwait-Bahrain (NBK Bahrain), the branch of NBK Group in
Bahrain, reported net profit of BHD55mn for 1H2018 compared
with BHD46.1mn in 1H2017, a growth of 19.4%. NBK-Bahrain’s
total assets increased by 13% YoY to BHD6.048bn, compared
with BHD5.359bn for the same period of previous year, while
total shareholders’ equity increased by 18% YoY to
BHD642.330mn compared with BHD545.482mn for the same
period of previous year. Customer deposits increased by 24%
YoY to BHD3.244bn, compared with BHD2.611bn for the same
period of previous year. (GulfBase.com)

8. Contacts
Saugata Sarkar, CFA, CAIA 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 Co. W.L.L.
Contact Center: (+974) 4476 6666
PO Box 24025
Doha, Qatar
Disclaimer and Copyright Notice: This publication has been prepared by QNB Financial Services Co. W.L.L. (“QNBFS”) a wholly-owned subsidiary of Qatar National Bank (Q.P.S.C.). QNBFS is
regulated by the Qatar Financial Markets Authority and the Qatar Exchange. Qatar National Bank (Q.P.S.C.) 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. QNBFS accepts no liability whatsoever for any direct or indirect losses arising from use of this report. Any investment decision should depend on the individual circumstances of
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Page 8 of 8
Rebased Performance Daily Index Performance
Source: Bloomberg Source: Bloomberg
Source: Bloomberg Source: Bloomberg (*$ adjusted returns)
50.0
75.0
100.0
125.0
Jul-14 Jul-15 Jul-16 Jul-17 Jul-18
QSE Index S&P Pan Arab S&P GCC
(0.4%)
0.0% 0.1%
(0.3%) (0.3%)
(0.7%)
(0.2%)
(0.8%)
(0.4%)
0.0%
0.4%
SaudiArabia
Qatar
Kuwait
Bahrain
Oman
AbuDhabi
Dubai
Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D%* WTD%* YTD%*
Gold/Ounce 1,213.65 0.5 (0.8) (6.9) MSCI World Index 2,155.39 0.4 (0.0) 2.5
Silver/Ounce 15.41 0.6 (0.5) (9.0) DJ Industrial 25,462.58 0.5 0.0 3.0
Crude Oil (Brent)/Barrel (FM Future) 73.21 (0.3) (1.5) 9.5 S&P 500 2,840.35 0.5 0.8 6.2
Crude Oil (WTI)/Barrel (FM Future) 68.49 (0.7) (0.3) 13.4 NASDAQ 100 7,812.02 0.1 1.0 13.2
Natural Gas (Henry Hub)/MMBtu 2.86 3.2 2.9 (7.4) STOXX 600 389.16 0.5 (1.3) (3.6)
LPG Propane (Arab Gulf)/Ton 95.25 1.2 (2.1) (2.6) DAX 12,615.76 0.4 (2.4) (5.8)
LPG Butane (Arab Gulf)/Ton 100.00 (2.9) (3.8) (5.3) FTSE 100 7,659.10 1.0 (1.3) (4.1)
Euro 1.16 (0.1) (0.8) (3.6) CAC 40 5,478.98 0.2 (1.1) (0.5)
Yen 111.25 (0.4) 0.2 (1.3) Nikkei 22,525.18 0.4 (1.2) 0.1
GBP 1.30 (0.1) (0.8) (3.8) MSCI EM 1,073.33 0.6 (1.7) (7.3)
CHF 1.01 0.1 0.0 (2.0) SHANGHAI SE Composite 2,740.44 (1.1) (5.1) (21.3)
AUD 0.74 0.6 0.1 (5.2) HANG SENG 27,676.32 (0.1) (3.9) (7.9)
USD Index 95.16 (0.0) 0.5 3.3 BSE SENSEX 37,556.16 1.1 0.7 2.7
RUB 63.33 (0.1) 0.9 9.9 Bovespa 81,434.98 3.7 2.4 (4.9)
BRL 0.27 1.2 0.1 (10.6) RTS 1,145.08 0.4 (0.6) (0.8)
86.1
82.3
89.2