MENA MARKETS September 24 — 28, 2017

WEEKLY RESEARCH MENA MARKETS September 24 — 28, 2017

TOP NEWS

details in  Saudi Arabia to lift Ban on women driving, ending global isolation PAGE 1  Saudi central bank announcing measures to cut mortgage costs  Qatar sees tourism below 2016 levels until 2020 amid Gulf crisis  Qatar signing 15-year LNG supply agreement with Bangladesh  UAE's first nuclear reactor to operate in 2018: minister  Dubai airport passenger traffic up 6.6% in August, busiest month on record  Egypt central bank keeping main interest rates on hold  IMF seeing 'good progress' on reforms in Egypt  Saudi sovereign fund to redevelop Jeddah waterfront in $4.8 billion project  Saudi Arabia issuing $12.5 billion of sovereign bonds  Qatar's Commercial Bank in talks with UAE's Tabarak for stake sale in UAB- sources  Abu Dhabi state fund Mubadala swinging to profit, assets grow  Qatar Airways expanding airline investments with Italy's Meridiana  Saudi Aramco to finish first shale gas project soon  BahriBollore Logistics JV to start operations by year-end

MARKETS EQUITIES Price % 1 W Saudi Arabia 7283.01 -0.59%  Most Gulf stock markets ended lower this week, failing to recover from big Abu Dhabi 4397.40 -1.29% losses suffered at the beginning of the week. Rising oil prices and surging global Dubai 3563.99 -1.89% equities helped in recouping some of the losses. Qatar 8312.43 -0.58%  The Saudi index traded near 1-month low. Investors showed concerns that the Oman 5137.35 1.89% Egypt 13888.51 1.41% index compiler FTSE might not upgrade Riyadh to emerging-market status. Kuwait 6679.73 -2.47%  The UAE stocks dropped for the second week hitting more than 2-month lows. Bahrain 1283.46 -1.87% Jordan 2121.52 -0.47%  The Qatari index posted its 9th weekly drop in a row. more data in PAGE 2  The Kuwaiti index was the worst performer this week hitting a 2 1/2-month low.

FX Rates vs USD vs EUR SAR 3.75 4.42 AED 3.67 4.33 QAR 3.67 4.37 OMR 0.385 0.454 EGP 17.643 20.796 KWD 0.302 0.356 BHD 0.377 0.445 JOD 0.708 0.836 LEBANON more data in PAGE 3

BEIRUT S.E. Price* % 1 W BONDS Mat YTM* BANK OF BEIRUT FUNDS SOLIDERE A 8.00 - LEB 5.45 Nov-19 5.19 SINCE NAME CY NAV* YTD (%) SOLIDERE B 8.02 - LEB 6.15 Jun-20 5.61 INCEPTION BANK OF BEIRUT 18.80 - LEB 6.10 Oct-22 6.07 BEIRUT PREFERRED FUND II USD 1,004.71 3.63% 22.83% BoB Priority 21.00 - LEB 6.65 Apr-24 6.60 BANK AUDI 5.83 -0.34% LEB 6.60 Nov-26 6.84 OPTIMAL INVESTMENT FUND LBP 101,128.91 5.62% 57.41% BLOM BANK 11.50 0.88% LEB 6.75 Nov-27 6.91 BOB LBP GROWTH FUND A LBP 123,855.56 5.79% 24.00% BYBLOS BANK 1.60 -0.62% LEB 6.65 Feb-30 7.04 BLC BANK 0.93 - LEB 7.05 Nov-35 7.39 BOB LBP GROWTH FUND B LBP 102,058.38 5.61% 21.21% BEMO BANK 1.55 - LEB 7.25 Mar-37 7.54 * NAV as of September 28, 2017 (click for more details) * September 29, 2017 *MID Value more data in PAGE 3

Copyright: Bank of Beirut 2017 - Research Department - Global Markets Division Friday, September 29, 2017 MENA MARKETS September 24 — 28, 2017 MAIN 1 2 3 4

TOP NEWS in June and a deeper-than-expected currency depreciation, but inflation remains the main risk for stability, the IMF said on Saudi Arabia to lift ban on women driving Tuesday. Egypt agreed a 3-year, $12 billion IMF loan The morning after Saudi Arabia joined the rest of the world in programme in November last year that is tied to ambitious opening its roads to female drivers, the top trending hashtag economic reforms such as spending cuts and tax hikes to help among the kingdom’s Twitter users wasn’t supportive. “The revive an economy where subsidies accounted for a quarter of people reject women driving” was shared widely in this highly- state spending. wired society where social media offers people a rare outlet for criticism. Tuesday’s royal decree overturning a ban that Saudi sovereign fund to redevelop Jeddah waterfront had been widely condemned by Saudi activists and global Saudi Arabia's Public Investment Fund (PIF) will lead the human rights organizations was the boldest move yet in redevelopment of Jeddah's waterfront corniche in an 18 billion Crown Prince Mohammed bin Salman’s effort to open up riyal ($4.8 billion) project that will include housing, shops, Saudi society, a counterpart to an ambitious program to museums and a marina, the sovereign fund said on modernize the economy and reduce its reliance on oil. Yet Wednesday. The project, to be built over 10 years, is part of Saudi Arabia remains a deeply conservative Islamic country economic reform plans that seek to move Saudi Arabia's and there is a risk of a backlash. economy beyond dependence on oil exports by expanding industries such as tourism and entertainment. The PIF, which Saudi central bank announce measures to cut mortgage costs is the country's main sovereign wealth fund and is believed to KSA’s central bank has scrapped administrative fees for have about $180 billion of assets, is being mobilized to support mortgage holders if they switch between fixed and floating many such projects. Its statement did not specify how much rate loans, as part of new measures to boost the housing money the PIF would invest or how much would come from market. The SAMA also announced, via its twitter account, other investors including the private sector. other measures to help reduce mortgage costs, including allowing a mortgage holder to move to a new lender without Saudi Arabia issuing $12.5 billion of sovereign bonds additional costs. Mortgage laws and regulations are still being Saudi Arabia's finance ministry said on Thursday it has priced ironed out, according to one Jeddah-based analyst, and may $12.5 billion of triple-tranche international bond issue and the be subject to modifications. offering has attracted more than $40 billion. The bond was split into three tranches with $3 billion maturing in March Qatar sees tourism below 2016 levels until 2020 2023, $5 billion in March 2028 and $4.5 billion maturing in (Reuters) Qatar expects the overall number of annual foreign October 2047, a statement from the ministry said. The sale has visitors to the country to be below 2016 levels for the next attracted around $40 billion and the settlement is expected by three years if it remains cut off from some of its neighbours, a October 4, the ministry added. senior tourism official said on Wednesday. KSA, the UAE and Bahrain banned their citizens from visiting the small, wealthy Commercial Bank in talks with UAE's Tabarak for stake sale Gulf state after cutting ties with Qatar in June, accusing it of (Reuters) Qatar's third-largest lender, Commercial Bank , is in supporting terrorism. Qatar denies this. Saudi Arabia was talks to sell its 40% stake in Abu Dhabi-listed United Arab Bank Qatar's single largest source market in 2016, accounting for to the UAE's Tabarak Investment, sources told Reuters on around a third of its 2.94 million visitors. Growth from other Wednesday. Commercial Bank joins several Qatari companies markets is expected to continue despite the crisis and an exiting the United Arab Emirates due to a widening Gulf rift. increase in Chinese, Indian, and Russian visitors will drive net The UAE, Saudi Arabia, Egypt and Bahrain cut diplomatic and visitor growth in 2020, said Qatar Tourism Authority Chief economic ties with Qatar in June, accusing it of supporting Tourism Development Officer Hassan al-Ibrahim. terrorism, a charge Doha denies. Commercial Bank on Tuesday said it entered into a 90-day period of exclusivity with a "third Qatar signing 15-year LNG supply agreement with Bangladesh party purchaser" it did not name to negotiate the terms of a Qatar's RasGas Co signed a 15-year liquefied natural gas (LNG) deal, according to a statement on the Qatar bourse. sales and purchase agreement with Bangladesh Oil, Gas and Mineral Corp (Petrobangla) on Monday, RasGas said in a Abu Dhabi state fund Mubadala swinging to profit statement late on Monday. Under the agreement, the Qatari Abu Dhabi's state fund Mubadala Investment Company made company will supply 2.5 million tonnes of LNG every year to a net profit of 4.2 billion dirhams ($1.14 billion) in the first half Petrobangla for 15 years. Deliveries will be made to of the year, it reported on Thursday, its first set of results since Petrobangla's floating storage and regasification unit (FSRU) merging with the other state wealth fund, International near Moheshkhali Island in Bangladesh, marking RasGas' first Petroleum Investment Company (IPIC). Mubadala made a net long-term contract delivered to a FSRU, the company said. loss of 4.7 billion dirhams in the first half of 2016, it said in a statement. Total assets rose to 465.5 billion dirhams at the UAE's first nuclear reactor to operate in 2018: minister end of June, from 449.7 billion dirhams a year ago. The The United Arab Emirates' first nuclear reactor will "definitely" merged fund, whose investments include stakes in General be operational next year with the operating company getting Electric and private equity firm Carlyle Group , also reported a licence in 2018, the UAE's energy minister said on Monday. "total comprehensive income" of 6.8 billion dirhams in the The world's largest single nuclear project, the Barakah plant first half of 2017 compared with a "total comprehensive loss" will have capacity of 5,600 megawatts (MW) of electricity, of 5.4 billion dirhams in the same period last year. with four 1400 MW reactors. Korea Electric Power Corporation (KEPCO) is building the four APR-1400 reactors Qatar Airways expands airline investments with Italy's simultaneously. The UAE was forced to delay the start-up by a Meridiana year as the company set up to run it had not yet received an Qatar Airways said on Thursday it had acquired a 49% stake in operating licence to ensure sufficient time for international AQA Holding, the new parent company of Italy's Meridiana, assessments and safety standards, the Emirates Nuclear adding to its growing portfolio of investments in foreign Energy Company (ENEC) told Reuters in May. The first reactor airlines. Previous sole owner Alisarda retains 51%, the major at Barakah is 96% complete now and is in the final stages of Middle East airline said in a statement. Loss-making, Sardinia- commissioning, Suhail al-Mazroui told reporters. based Meridiana is Italy's second largest carrier behind Alitalia, which is partly owned by Abu Dhabi's Etihad Airways. Alitalia Dubai airport passenger traffic busiest month on record filed for administration earlier this year. The value of the Dubai International Airport, the world's busiest for Meridiana acquisition was not given, and the deal was finalised international traffic, recorded its busiest month ever in August after protracted negotiations that formally started more than for passenger traffic, which the operator said was boosted by a year ago. a seasonal increase in travellers. The number of passengers travelling through the airport increased 6.6% to 8.23 million Saudi Aramco to finish first shale gas project soon compared to the same month a year ago, operator Dubai (Reuters) State oil giant Saudi Aramco is expected to finish Airports said in a statement on Tuesday. August is the third building facilities soon in the north of the kingdom that will time this year the airport has seen record monthly passenger allow it to produce shale gas for the first time, industry traffic, beating July's 8.07 million and January's 8.04 million. sources said. The project, known as System A, involves gas processing facilities, wellheads and pipelines in Turaif which Egypt central bank keeping main interest rates on hold will feed the Waad al-Shamal phosphate mining project in the Egypt's central bank left its main interest rates unchanged on region. Thursday at a meeting of its monetary policy committee, it said in a statement. The bank has raised key interest rates by a BahriBollore Logistics JV to start operations by year-end total of 700 basis points since it floated the pound in Saudi Arabia's Bahri, the world's largest owner and operator November as part of a $12 billion International Monetary Fund of very large crude carriers (VLCCs), aims to start operating its loan programme aimed at boosting the economy. It kept the joint venture with French logistics firm Bollore by the end of overnight deposit rate at 18.75% and the overnight lending rate the year, an executive told Reuters on Tuesday. "We are at 19.75%, in line with the views of 10 out of 12 economists looking at activating the JV within the coming weeks. The CEO polled by Reuters this week. Inflation dipped in August from a has been chosen, we're forming the board," said Bahri Vice multi-decade high hit in July after a hike in energy prices as the Chairman Mohammed Abdulaziz AlSarhan, speaking on the government sought to narrow its gaping budget gap. sidelines of a launch event for the partnership in Riyadh. BahriBollore Logistics, 60% owned by Bahri and based in IMF seeing 'good progress' on reforms in Egypt Riyadh, will expand the shipper's cargo business from port-to- Egypt has made a "good start" to its IMF-backed reform port deliveries into more extensive door-to-door logistics. programme despite seeking waivers for missing some targets

Copyright: Bank of Beirut 2017 - Research Department - Global Markets Division MENA MARKETS September 24 — 28, 2017 MAIN 1 2 3 4

EQUITIES

Price As at ∆ 1 W NET ∆ 1 W % High Low

TADAWUL ALL SH INDEX SA 7283.01 28-Sep -43.31 -0.59% 7,329.01 7,207.29

ADX GENERAL INDEX UA 4397.40 28-Sep -57.69 -1.29% 4,453.87 4,396.42

DFM GENERAL INDEX UA 3563.99 28-Sep -68.55 -1.89% 3,636.06 3,554.21

QE Index QA 8312.43 28-Sep -48.34 -0.58% 8,595.91 8,312.43

MSM30 Index OM 5137.35 28-Sep 95.07 1.89% 5,160.29 5,105.34

EGX 30 INDEX EG 13888.51 28-Sep 193.18 1.41% 13,894.84 13,598.96

KUWAIT SE PRICE INDEX KW 6679.73 28-Sep -169.38 -2.47% 6,850.87 6,659.89

BB ALL SHARE INDEX BH 1283.46 28-Sep -24.48 -1.87% 1,309.14 1,280.35

AMMAN SE GENERAL INDEX JO 2121.52 28-Sep -9.97 -0.47% 2,133.41 2,118.96

TOP MOVERS GAINERS LOSERS 1 SUEZ CANAL BANK EJSC EG 50.57% 1 KIPCO ASSET MANAGEMENT CO KU -15.53% 2 EGYPTIANS FOR INVESTMENT AND EG 38.54% 2 REAL ESTATE TRADE CENTERS CO KU -11.76% 3 COMMERCIAL BANK OF KUWAIT KU 31.75% 3 AL MOWASAT HEALTH CARE CO KU -11.70% 4 ABU DHABI ISLAMIC BANK/EGYPT EG 28.99% 4 QATAR INSURANCE CO QA -10.99% 5 NATIONAL BANK OF FUJAIRAH UA 23.33% 5 SHARJAH GROUP UA -10.00% 6 METAL & RECYCLING CO KU 21.35% 6 UMM AL QAIWAIN GENERAL INVES KU -9.92% 7 UMM AL QAIWAIN GENERAL INVES KU 19.16% 7 OMAN INSURANCE CO PSC UA -9.55% 8 EGYPTIAN MEDIA PRODUCTION EG 16.11% 8 AL-MASSALEH REAL ESTATE CO KU -9.52% 9 AJIAL REAL ESTATE ENTMT KU 14.89% 9 WETHAQ TAKAFUL INSURANCE CO KU -9.47% 10 AL TAMDEEN INVESTMENT CO KU 14.75% 10 SHARJAH INSURANCE COMPANY UA -9.35%

TOP MARKET CAPS TOP TRADING VOLUMES (WEEKLY AVG) (in MILLIONS) 1 SAUDI BASIC INDUSTRIES CORP SR 2.04% 1 PORTO HOLDING SAE EG 102.89 2 EMIRATES TELECOM GROUP CO UA -2.81% 2 AMER GROUP HOLDING EG 99.88 3 SAUDI TELECOM CO SR -1.13% 3 ORASCOM TELECOM MEDIA AND TE EG 78.90 4 QATAR NATIONAL BANK QA -1.21% 4 CITADEL CAPITAL SAE EG 62.50 5 AL RAJHI BANK SR -2.47% 5 EGYPTIAN RESORTS CO EG 43.71 6 NATIONAL COMMERCIAL BANK SR -1.93% 6 ALINMA BANK SR 24.78 7 SAUDI ELECTRICITY CO SR 1.57% 7 DRAKE & SCULL INTERNATIONAL UA 24.44 8 DP WORLD LTD UA -3.19% 8 DANA GAS UA 24.43 9 JABAL OMAR DEVELOPMENT CO SR 1.05% 9 KHALEEJI COMMERCIAL BANK BJ 20.20 10 EMAAR PROPERTIES PJSC UA -3.52% 10 INVEST BANK UA 18.98

TOP SECTORS MOVERS (where index is officially priced) SAUDI ARABIA ABU DHABI KUWAIT Utilities (L2) 0.87% Consumer Staples 3.97% Consumer Goods 1.01% Retailing 0.80% Real Estate 0.29% Parallel Mkt Pri 0.24% Materials (L2) 0.72% Industrial -0.60% Technology -0.36%

Phar, Bio & LS -2.66% Telecommunication -2.81% Health Care -10.30% Banks -2.03% Energy -2.63% Industrials Pric -3.77% Media -1.78% Services -2.38% Consumer Svc Pri -3.56% Copyright: Bank of Beirut 2017 - Research Department - Global Markets Division BOB Research MENA MARKETS September 24 — 28, 2017 MAIN 1 2 3 4

CURRENCIES Cross Rates

USD EUR GBP AUD JPY* CHF

Saudi Riyal SAR 3.75 4.42 5.04 2.95 29.96 3.87

UAE Dirham AED 3.67 4.33 4.94 2.89 30.59 3.79

Qatari Riyal QAR 3.67 4.37 4.97 2.90 30.41 3.81

Omani Riyal OMR 0.385 0.454 0.518 0.303 291.81 0.397

Egyptian Pound EGP 17.643 20.796 23.710 13.860 6.37 18.183

Kuwaiti Dinar KWD 0.302 0.356 0.406 0.237 371.90 0.311

Bahraini Dinar BHD 0.377 0.445 0.507 0.296 297.81 0.389

Jordanian Dinar JOD 0.708 0.836 0.953 0.557 158.44 0.729

 Thursday’s closing prices are used to calculate the cross rates  USD/EUR/GBP/AUD/CHF are base currencies

BONDS Sovereign Eurobonds (USD)

LEBANON GULF Maturity Range (yrs) Maturity YTM Maturity Range (yrs) Country Maturity YTM 1 - 2 Nov-18 4.60 1 - 2 DUBAI Dec-18 1.90 May-19 5.00 DUBAI Feb-19 1.97 2 - 4 Nov-19 5.19 ABU DHABI Apr-19 1.83 Mar-20 5.40 Apr-20 5.61 QATAR Apr-19 2.04 Jun-20 5.61 2 - 4 QATAR Jan-20 2.42 Apr-21 5.70 DUBAI Oct-20 2.58 4 - 7 Oct-22 6.07 ABU DHABI May-21 2.10 May-23 6.39 QATAR Jun-21 2.76 Apr-24 6.60 DUBAI Jun-21 2.90 7 - 10 Nov-24 6.54 4 - 7 QATAR Jan-22 2.90 Dec-24 6.64 Feb-25 6.66 7 - 10 ABU DHABI May-26 2.85 Jun-25 6.69 QATAR Jun-26 3.37 Nov-26 6.84 10 - 30 QATAR Jun-30 3.87 Mar-27 6.90 QATAR Jan-40 4.30 10 - 30 Nov-27 6.91 QATAR Jan-42 4.30 May-29 7.06 DUBAI Jan-43 5.04 Feb-30 7.04 QATAR Jun-46 4.31 Apr-31 7.16 Mar-32 7.24 Nov-35 7.39 Mar-37 7.54 Yields are MID values and shown strictly for information purpose and subject to change at any time

Copyright: Bank of Beirut 2017 - Research Department - Global Markets Division MENA MARKETS September 24 — 28, 2017 MAIN 1 2 3 4

DISCLAIMER

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