GIH - Equity Research

Global Research Monthly Update Equity - GCC July, 2012

GCC Equity Monitor
GCC ROE & P/BV
24%

GCC Country Performance Country
Qatar

1M -1.7% 0.1% -1.6% -2.5% 0.4% 0.8% -0.6%

3M -2.7% -3.0% -2.0% -7.4% -15.2% -3.9% -11.6%

12M -15.1% -6.6% -4.3% -1.8% 0.8% -9.0% -3.6%

P/E* 9.1 13.3 8.5 9.3 9.7 8.1 10.4

P/BV* 0.9 1.7 1.4 1.8 1.5 1.1 0.6

DY (%) 5.5% 3.9% 7.1% 5.0% 4.9% 5.6% 4.2%

22%
20%
2012e ROE

Bahrain Kuwait Oman Qatar KSA
2.5 3.0

18%

KSA

Oman

16% GCC
14% 12% 10% 0.5 1.0 1.5 2.0 UAE Kuwait

2012e P/BV

UAE-Abu Dhabi UAE-Dubai

GCC PE & Earnings Grow th
19% 17%
Earnings Grwoth

Source: Global Research, Bloomberg, Zawya * 2012e
Kuwait

Top Fundamental Picks
Yamama Saudi Cement Co. (KSA), CMP: SAR48.20, Target Price: SAR56.40
Yamama Saudi Cement Company is considered the third largest cement company operating in KSA in terms of production and dispatches. During the first five months of 2012 the company produced 3.1mn tons of cement and sold 3.1mn tons, growing 17.4% and 14.5% respectively as compared to the same period a year ago. Yamama's location in the central region is of huge benefit whereby it is within close proximity of the most populous region in the Kingdom and next to the capital where huge projects are underway. Trading at SAR48.20, the P/E is 9.6x, well below the sector's multiple of 10.9x.

15% 13%

UAE Qatar

11% 9%
7% 5% 5.0 7.0 9.0 Oman

GCC

KSA 11.0

13.0

15.0

2012e P/E

World & GCC Indices YTD

Saudi Basic Industries (KSA), CMP: SAR91.50, Target Price: SAR116.10
30.0%

12.8%

8.1% 5.0%

8.3%

2.4% -0.1% -5.6%
UAE-Abu Dhabi

1.2%

-0.7% -6.5%
UAE -Dubai Qatar Oman KSA

-2.0%
Bahrain

Being a diversified petrochemical producer, SABIC is expected to do well when compared with others. Its affiliate, Saudi Kayan is expected to report a full year profit in 2012 compared to losses last earlier. Profits from its fertilizer subsidiaries, expansion in Asia particularly China and move towards higher grade petrochemicals are all going to counteract against falling petrochemical prices.

Kuwait

Egypt

India

China

Jordan

US

Burgan Bank (Kuwait), CMP: KWD0.430, Target Price: KWD0.475
Burgan Bank is the cheapest bank within our Kuwait banking universe, trading at P/E and P/BV of 9.8x and 1.3x respectively, for 2012. The bank offers substantial earnings growth for 2012 with expectations of over 30%YoY, due to improved core earnings and lower provisions. With certain acquisitions in the pipeline, that too in high growth geographies, the bank's revenues are anticipated to see a helpful thrust. The bank stands out as the only BUY within our Kuwaiti banking coverage with an upside potential of 10%.

So urce: Glo bal Research, B lo o mberg A s o f 01 July 201 2

Top Technical Picks
SAFCO's stock price closed at SAR170.00. We will stick with a bearish bias for the coming period as the stock is printing a close below both medium-term (11 weeks) and long-term (50 weeks) moving averages, and look for signals that could trigger further weaknesses. Knowing that a dip below the temporarily support line at SAR168.25 would allow a slippage towards an initial level of SAR162.00 and maybe SAR155.00. On the counter side, regaining the resistance zone at SAR175.00 ­ SAR178.00 would be a positive sign that should lead to SAR186.75. The weekly and daily "RSI" indicators are currently looking neutral. Strategy: Medium-term and long-term investors can only re-purchase the stock at levels higher than SAR176.00 and SAR178.00, respectively.

Global Research fhasan@global.com.kw Tel.: (965) 22951270

Global Investment House www.globalinv.net

Global Research - GCC

GCC Equity Monitor

GCC Universe by Country

Global Research - GCC Universe UAE Abu Dhabi Commercial Bank Dana Gas Emirates Telecommunications Corp First Gulf Bank National Bank of Abu Dhabi Ras Al Khaimah Cement Co Ras Al Khaimah Ceramics Co Union National Bank Air Arabia Arabtec Holding PJSC Dubai Financial Market Drake & Scull International Emirates NBD Aramex Emaar Properties Aldar Properties Sorouh Real Estate Total

Bloomberg Ticker

Mkt. Cap USD mn 5,073.1 682.8 19,910.6 6,648.5 8,723.8 88.3 269.3 1,888.9 750.9 1,209.5 2,064.8 493.1 4,100.6 697.6 4,726.4 1,245.7 736.1

Stock Performance 1M 3M 12M 11.7% -2.6% 5.4% -5.6% -3.7% -6.9% -14.3% -2.5% 2.6% -2.7% 0.3% 2.9% 0.4% -2.8% -2.1% 7.7% 5.1% 3.1% -24.0% 4.4% -16.3% -4.9% -5.6% -28.8% -11.2% -17.9% -1.0% -18.3% -19.3% -11.4% -2.2% -7.2% -5.1% -10.4% 11.0% -37.7% -16.7% -8.5% 1.5% -18.3% -37.7% -23.2% -10.9% 132.1% -19.0% -13.0% -34.7% -0.6% -5.6% -9.7% -16.3%

P/E 2012e 9.1 4.5 10.0 6.2 8.0 nm 5.0 4.4 10.1 30.2 71.0 8.5 6.6 11.1 10.2 11.2 5.8 8.54

P/BV 2012e 1.0 0.3 1.8 1.1 1.2 0.4 0.4 0.6 0.5 1.5 1.0 0.7 0.5 1.3 0.5 0.6 0.4 0.94

ROE 2012e 11.8% 6.0% 18.2% 17.8% 16.6% 0.0% 7.5% 13.7% 5.2% 5.0% 1.4% 8.0% 7.2% 11.9% 5.3% 5.7% 6.9% 11.3%

ROA 2012e 1.1% 4.2% 9.6% 2.4% 1.5% 0.0% 3.3% 1.9% 3.7% 1.7% 1.4% 3.6% 0.8% 9.0% 2.9% 1.1% 3.4% 2.1%

EPS 2012e 0.37 0.08 0.93 1.31 1.04 0.00 0.26 0.63 0.06 0.09 0.01 0.09 0.41 0.16 0.28 0.10 0.16

Current Price 3.33 0.38 9.25 8.14 8.27 0.67 1.14 2.78 0.59 2.83 0.95 0.79 2.71 1.75 2.85 1.12 1.03

Target Price 3.73 U/R 11.10 12.40 9.92 U/R U/R 4.64 0.76 1.21 0.90 0.95 3.42 2.00 U/R U/R U/R

Upside / (Downside) 12.0% U/R 20.0% 52.3% 20.0% U/R U/R 66.9% 29.4% -57.3% -5.1% 19.9% 26.2% 14.3% U/R U/R U/R

Rating

ADCB UH DANA UH ETISALAT UH FGB UH NBAD UH RAKCC UH RAKCEC UH UNB UH AIRARABI UH ARTC UH DFM UH DSI UH EMIRATES UH ARMX UH EMAAR UH ALDAR UH SOROUH UH

BUY U/R STRONG BUY STRONG BUY BUY U/R U/R STRONG BUY STRONG BUY SELL HOLD BUY STRONG BUY BUY U/R U/R U/R

Kuwait Mobile Telecommunications Co ZAIN KK National Bank of Kuwait NBK KK Kuwait Finance House KFIN KK Commercial Bank of Kuwait CBK KK National Mobile Telecommunications Co NMTC KK Jazeera Airways Co JAZEERA KK Burgan Bank BURG KK Mabanee MABANEE KK Salhia Real Estate SRE KK Total Oman Oman Telecommunications Co Bank Muscat Raysut Cement Co Oman Cement Co Total

11,386.2 16,173.0 7,572.9 3,544.1 3,961.0 289.6 2,373.1 2,357.9 494.5

5.7% 0.0% -2.7% 2.6% 6.8% -16.3% 2.4% 11.3% 1.9%

-3.9% -3.7% -6.4% -1.3% -0.9% -21.6% 2.4% 10.0% 9.8%

-28.8% -1.4% -21.2% -11.4% 12.2% 86.1% -11.5% 36.6% 23.9%

9.6 14.0 24.7 22.0 10.9 4.6 9.8 18.8 20.1 13.27

1.4 2.0 1.8 1.8 1.2 1.8 1.3 3.8 1.0 1.67

14.9% 14.5% 7.3% 8.2% 11.2% 50.4% 14.3% 21.8% 5.2% 12.9%

9.9% 2.3% 0.6% 1.2% 7.4% 9.6% 1.3% 10.8% 2.5% 2.4%

0.08 0.07 0.03 0.04 0.20 0.07 0.04 0.06 0.01

0.74 1.04 0.73 0.78 2.20 0.34 0.43 1.08 0.27

0.86 1.13 0.77 0.73 2.59 0.56 0.48 U/R U/R

16.6% BUY 8.8% HOLD 5.3% HOLD -6.7% HOLD 17.8% BUY 66.6% STRONG BUY 10.5% BUY U/R U/R U/R U/R

OTEL OM BKMB OM RCCI OM OCOI OM

2,600.6 2,762.7 697.7 552.6

1.1% 3.5% 2.5% -5.2%

2.8% -5.3% 39.8% 15.4%

21.7% -9.0% 26.3% 14.8%

8.6 7.4 12.7 10.7 8.45

1.9 1.1 2.7 1.4 1.44

22.5% 15.5% 21.0% 13.4% 17.8%

16.0% 2.0% 11.6% 11.5% 3.6%

0.15 0.09 0.11 0.06

1.34 0.59 1.34 0.64

1.45 U/R 1.38 0.70

9.0% U/R 2.5% 8.6%

HOLD U/R HOLD HOLD

July - 2012

2

Global Research ­ GCC

GCC Equity Monitor

GCC Universe by Country (cont)
Global Research - GCC Universe Bloomberg Ticker Mkt. Cap USD mn Stock Performance 1M 3M 12M P/E 2012e P/BV 2012e ROE 2012e ROA 2012e EPS 2012e Current Price Target Price Upside / (Downside) Rating

Qatar Qatar National Bank Industries Qatar Qatar Telecom Vodafone Qatar Qatar Islamic Bank Commercial Bank of Qatar Doha Bank Al Rayan Bank Qatar National Cement Co Total Saudi Arabia Saudi Basic Industries Corp Saudi Telecom Co Etihad Etisalat Co Saudi Arabian Fertilizers Co Yanbu National Petrochemicals Co Saudi International Petrochemical Co Yamama Saudi Cement Co Arabian Cement Co Saudi Cement Co Dar Alarkan Emaar Economic City Saudi Real Estate Co Al Khodari Sons Co Yanbu Cement Co Qassim Cement Co Total Bahrain Bahrain Telecommunications Co
* All price in local currency as of 1 July 2012 Source: Bloomberg & Global Research

QNBK QD IQCD QD QTEL QD VFQS QD QIBK QD CBQK QD DHBK QD MARK QD QNCD QD

25,561.4 19,215.6 6,630.0 2,103.7 4,952.0 4,750.7 3,122.5 5,562.0 1,402.6

0.2% -7.1% -7.0% -1.1% -1.2% -1.3% -2.7% 1.1% -2.6%

-3.3% -10.2% -8.6% 20.3% -1.4% -9.6% -10.4% -2.7% -1.6%

3.8% -6.6% 2.9% 15.9% -2.4% -3.1% 7.0% 16.2% -10.3%

10.3 7.3 8.2 na 11.5 7.7 8.1 12.8 11.4 9.34

2.1 2.3 1.0 1.2 1.7 1.3 1.8 2.4 2.1 1.83

21.5% 33.9% 13.4% -4.1% 15.1% 17.3% 22.5% 18.9% 19.0% 20.5%

2.8% 24.4% 2.8% -3.3% 2.5% 3.0% 2.6% 2.6% 16.8% 3.9%

14.21 17.53 12.87 (0.32) 6.62 9.08 6.76 2.10 9.12

133.00 127.20 105.50 9.06 76.30 69.90 55.00 27.00 104.00

156.08 170.90 151.67 7.49 81.30 95.12 64.96 27.51 125.40

17.4% 34.4% 43.8% -17.3% 6.5% 36.1% 18.1% 1.9% 20.6%

BUY STRONG BUY STRONG BUY SELL HOLD STRONG BUY BUY HOLD STRONG BUY

SABIC AB STC AB EEC AB SAFCO AB YANSAB AB SIPCHEM AB YACCO AB ARCCO AB SACCO AB ALARKAN AB EMAAR AB SRECO AB ALKHODAR AB YNCCO AB QACCO AB

73,190.2 21,010.5 11,665.1 11,398.5 6,569.1 1,764.7 2,602.5 1,183.8 3,681.7 2,692.4 2,062.4 803.1 415.0 2,197.7 1,895.7

1.7% 0.0% -2.3% -0.4% 0.9% -3.5% 2.1% 0.0% 2.6% -5.1% -5.2% -2.0% -12.3% 5.4% 1.0%

-16.4% -4.4% -8.4% -10.9% -21.8% -25.3% -3.6% -1.3% 4.3% -27.2% -28.9% -13.4% -32.8% 0.6% -1.3%

-13.7% 7.4% 17.4% -10.2% -8.9% -20.0% 14.8% 23.3% 39.4% 17.6% 18.2% 2.9% -48.8% 42.7% 15.3%

9.8 9.0 7.9 9.7 8.6 10.2 9.6 8.4 12.6 8.3 na 24.7 8.9 11.2 12.8 9.67 7.4

1.3 1.5 2.1 4.8 1.9 0.9 2.7 1.5 4.0 0.6 1.0 0.9 2.1 2.5 3.6 1.53 1.2

16.3% 17.5% 28.1% 51.6% 24.5% 9.2% 29.2% 18.2% 32.6% 7.6% -0.5% 3.8% 24.8% 23.9% 28.4% 17.9% 17.2%

8.2% 7.3% 14.3% 45.6% 12.0% 4.4% 26.4% 12.0% 23.0% 5.1% -0.2% 3.6% 7.4% 15.9% 26.1% 9.1% 13.6%

9.30 91.50 4.35 39.40 7.93 62.50 17.61 171.00 5.09 43.80 1.77 18.05 5.02 48.20 6.63 55.50 7.19 90.25 1.13 9.35 (0.04) 9.10 1.02 25.10 3.30 29.30 7.01 78.50 6.19 79.00

116.10 44.00 73.00 220.70 56.00 25.50 56.40 66.90 86.10 U/R U/R U/R 52.08 66.80 77.00

26.9% 11.7% 16.8% 29.1% 27.9% 41.3% 17.0% 20.5% -4.6% U/R U/R U/R 77.7% -14.9% -2.5%

STRONG BUY BUY BUY STRONG BUY STRONG BUY STRONG BUY BUY STRONG BUY HOLD U/R U/R U/R STRONG BUY SELL HOLD

BATELCO BI

1,757.0

-2.5%

6.0%

2.7%

0.06

0.46

0.53

14.1%

BUY

July - 2012

3

Global Research ­ GCC

GCC Equity Monitor

GCC Universe by Sector
Global Research - GCC Universe Cement & Building Material Ras Al Khaimah Cement Co Ras Al Khaimah Ceramics Co Raysut Cement Co Oman Cement Co Qatar National Cement Co Yamama Saudi Cement Co Arabian Cement Co Yanbu Cement Co Qassim Cement Co Saudi Cement Co Total Bloomberg Ticker Mkt. Cap USD mn RAKCC UH RAKCEC UH RCCI OM OCOI OM QNCD QD YACCO AB ARCCO AB YNCCO AB QACCO AB SACCO AB 88.3 269.3 697.7 552.6 1,402.6 2,602.5 1,183.8 2,197.7 1,895.7 3,681.7 Stock Performance 3M 12M -5.6% -28.8% 39.8% 15.4% -1.6% -3.6% -1.3% 0.6% -1.3% 4.3% -18.3% -37.7% 26.3% 14.8% -10.3% 14.8% 23.3% 42.7% 15.3% 39.4% P/E 2012e nm 5.0 12.7 10.7 11.4 9.6 8.4 11.2 12.8 12.6 10.89 P/BV 2012e 0.4 0.4 2.7 1.4 2.1 2.7 1.5 2.5 3.6 4.0 2.29 ROE 2012e 0.0% 7.5% 21.0% 13.4% 19.0% 29.2% 18.2% 23.9% 28.4% 32.6% 21.7% ROA 2012e 0.0% 3.3% 11.6% 11.5% 16.8% 26.4% 12.0% 15.9% 26.1% 23.0% 15.2% EPS 2012e 0.00 0.26 0.11 0.06 9.12 5.02 6.63 7.01 6.19 7.19 Current Price 0.67 1.14 1.34 0.64 104.00 48.20 55.50 78.50 79.00 90.25 Target Price U/R U/R 1.38 0.70 125.40 56.40 66.90 66.80 77.00 86.10 Upside / (Downside) Rating

1M

-6.9% -14.3% 2.5% -5.2% -2.6% 2.1% 0.0% 5.4% 1.0% 2.6%

U/R U/R U/R U/R 2.5% HOLD 8.6% HOLD 20.6% STRONG BUY 17.0% BUY 20.5% STRONG BUY -14.9% SELL -2.5% HOLD -4.6% HOLD

Telecom Emirates Telecommunications Corp ETISALAT UH Bahrain Telecommunications Co BATELCO BI Mobile Telecommunications Co ZAIN KK National Mobile Telecommunications Co NMTC KK Oman Telecommunications Co OTEL OM Qatar Telecom QTEL QD Vodafone Qatar VFQS QD Saudi Telecom Co STC AB Etihad Etisalat Co EEC AB Total Petrochemicals Dana Gas Industries Qatar Saudi Basic Industries Corp Saudi Arabia Fertilizers Co Yanbu National Petrochemicals Co Saudi International Petrochemichal Co Total Transportation and Logistics Aramex Air Arabia Jazeera Airways Co Total

19,910.6 1,757.0 11,386.2 3,961.0 2,600.6 6,630.0 2,103.7 21,010.5 11,665.1

5.4% -2.5% 5.7% 6.8% 1.1% -7.0% -1.1% 0.0% -2.3%

4.4% 6.0% -3.9% -0.9% 2.8% -8.6% 20.3% -4.4% -8.4%

-16.7% 2.7% 0.0% 12.2% 21.7% 2.9% 15.9% 7.4% 17.4%

10.0 7.4 9.6 10.9 8.6 8.2 na 9.0 7.9 9.45

1.8 1.2 1.4 1.2 1.9 1.0 1.2 1.5 2.1 1.53

18.2% 17.2% 14.9% 11.2% 22.5% 13.4% -4.1% 17.5% 28.1% 5.7%

9.6% 13.6% 9.9% 7.4% 16.0% 2.8% -3.3% 7.3% 14.3% 7.4%

0.93 0.06 0.08 0.20 0.15 12.87 (0.32) 4.35 7.93

9.25 0.46 0.74 2.20 1.34 105.50 9.06 39.40 62.50

11.10 0.53 0.86 2.59 1.45 151.67 7.49 44.00 73.00

20.0% STRONG BUY 14.1% BUY 16.6% BUY 17.8% BUY 9.0% HOLD 43.8% STRONG BUY -17.3% SELL 11.7% BUY 16.8% BUY

DANA UH IQCD QD SABIC AB SAFCO AB YANSAB AB SIPCHEM AB

682.8 19,215.6 73,190.2 11,398.5 6,569.1 1,764.7

-2.6% -7.1% 1.7% -0.4% 0.9% -3.5%

-24.0% -10.2% -16.4% -10.9% -21.8% -25.3%

-37.7% -6.6% -13.7% -10.2% -8.9% -20.0%

4.5 7.3 9.8 9.7 8.6 10.2 9.13

0.3 2.3 1.3 4.8 1.9 0.9 1.54

6.0% 33.9% 16.3% 51.6% 24.5% 9.2% 19.5%

4.2% 24.4% 8.2% 45.6% 12.0% 4.4% 10.4%

0.08 17.53 9.30 17.61 5.09 1.77

0.38 127.20 91.50 171.00 43.80 18.05

U/R 170.90 116.10 220.70 56.00 25.50

U/R 34.4% 26.9% 29.1% 27.9% 41.3%

U/R STRONG BUY STRONG BUY STRONG BUY STRONG BUY STRONG BUY

ARMX UH AIRARABI UH JAZEERA KK

697.6 750.9 289.6

-2.8% 2.6% -16.3%

-2.2% -17.9% -21.6%

-0.6% -10.9% 86.1%

11.1 10.1 4.6 8.64

1.3 0.5 1.8 0.82

11.9% 5.2% 50.4% 9.7%

9.0% 3.7% 9.6% 6.0%

0.16 0.06 0.07

1.75 0.59 0.34

2.00 0.76 0.56

14.3% BUY 29.4% STRONG BUY 66.6% STRONG BUY

July - 2012

4

Global Research ­ GCC

GCC Equity Monitor

GCC Universe by Sector (cont)
Global Research - GCC Universe Bloomberg Ticker Mkt. Cap USD mn Stock Performance 3M 12M P/E 2012e P/BV 2012e ROE 2012e ROA 2012e EPS 2012e Current Price Target Price Upside / (Downside) Rating

1M

Banks Abu Dhabi Commercial Bank First Gulf Bank National Bank of Abu Dhabi Union National Bank Emirates NBD National Bank of Kuwait Kuwait Finance House Commercial Bank of Kuwait Burgan Bank Bank Muscat Qatar National Bank Qatar Islamic Bank Commercial Bank of Qatar Doha Bank Al Rayan Bank Total Construction Contractors Arabtec Holding Drake & Scull International Al Khodari Sons Co Total Real Estate Dar Alarkan Emaar Economic City Saudi Real Estate Co (Akaria) Emaar Properties Aldar Properties Sorouh Real Estate Mabanee Salhia Real Estate Total Others Dubai Financial Market Total
* All price in local currency as of 1 July 2012 Source: Bloomberg & Global Research

ADCB UH FGB UH NBAD UH UNB UH EMIRATES UH NBK KK KFIN KK CBK KK BURG KK BKMB OM QNBK QD QIBK QD CBQK QD DHBK QD MARK QD

5,073.1 6,648.5 8,723.8 1,888.9 4,100.6 16,173.0 7,572.9 3,544.1 2,373.1 2,762.7 25,561.4 4,952.0 4,750.7 3,122.5 5,562.0

11.7% -5.6% -3.7% -2.5% 0.4% 0.0% -2.7% 2.6% 2.4% 3.5% 0.2% -1.2% -1.3% -2.7% 1.1%

3.1% -16.3% -4.9% -11.2% -11.4% -3.7% -6.4% -1.3% 2.4% -5.3% -3.3% -1.4% -9.6% -10.4% -2.7%

11.0% -8.5% 1.5% -23.2% -34.7% -1.4% -21.2% -11.4% -11.5% -9.0% 3.8% -2.4% -3.1% 7.0% 16.2%

9.1 6.2 8.0 4.4 6.6 14.0 24.7 22.0 9.8 7.4 10.3 11.5 7.7 8.1 12.8 9.95

1.0 1.1 1.2 0.6 0.5 2.0 1.8 1.8 1.3 1.1 2.1 1.7 1.3 1.8 2.4 1.43

11.8% 17.8% 16.6% 13.7% 7.2% 14.5% 7.3% 8.2% 14.3% 15.5% 21.5% 15.1% 17.3% 22.5% 18.9% 14.9%

1.1% 2.4% 1.5% 1.9% 0.8% 2.3% 0.6% 1.2% 1.3% 2.0% 2.8% 2.5% 3.0% 2.6% 2.6% 1.8%

0.37 1.31 1.04 0.63 0.41 0.07 0.03 0.04 0.04 0.09 14.21 6.62 9.08 6.76 2.10

3.33 8.14 8.27 2.78 2.71 1.04 0.73 0.78 0.43 0.59 133.00 76.30 69.90 55.00 27.00

3.73 12.40 9.92 4.64 3.42 1.13 0.77 0.73 0.48 U/R 156.08 81.30 95.12 64.96 27.51

12.0% 52.3% 20.0% 66.9% 26.2% 8.8% 5.3% -6.7% 10.5% U/R 17.4% 6.5% 36.1% 18.1% 1.9%

BUY STRONG BUY BUY STRONG BUY STRONG BUY HOLD HOLD HOLD BUY U/R BUY HOLD STRONG BUY BUY HOLD

ARTC UH DSI UH ALKHODAR AB

1,209.5 493.1 415.0

-2.7% 2.9% -12.3%

-1.0% -19.3% -32.8%

132.1% -13.0% -48.8%

30.2 8.5 8.9 14.60

1.5 0.7 2.1 1.22

5.0% 8.0% 24.8% 8.4%

1.7% 3.6% 7.4% 1.7%

0.09 0.09 3.30

2.83 0.79 29.30

1.21 0.95 52.08

-57.3% SELL 19.9% BUY 77.7% STRONG BUY

ALARKAN AB EMAAR AB SRECO AB EMAAR UH ALDAR UH SOROUH UH MABANEE KK SRE KK

2,692.4 2,062.4 803.1 4,726.4 1,245.7 736.1 2,357.9 494.5

-5.1% -5.2% -2.0% -2.1% 7.7% 5.1% 11.3% 1.9%

-27.2% -28.9% -13.4% -7.2% -5.1% -10.4% 10.0% na

17.6% 18.2% 2.9% -5.6% -9.7% -16.3% 36.6% 23.9%

8.3 na 24.7 10.2 11.2 5.8 18.8 20.1 12.59

0.6 1.0 0.9 0.5 0.6 0.4 3.8 1.0 0.72

7.6% -0.5% 3.8% 5.3% 5.7% 6.9% 21.8% 5.2% 5.8%

5.1% -0.2% 3.6% 2.9% 1.1% 3.4% 10.8% 2.5% 2.8%

1.13 (0.04) 1.02 0.28 0.10 0.16 0.06 0.01

9.35 9.10 25.10 2.85 1.12 1.03 1.08 0.27

U/R U/R U/R U/R U/R U/R U/R U/R

U/R U/R U/R U/R U/R U/R U/R U/R

U/R U/R U/R U/R U/R U/R U/R U/R

DFM UH

2,064.8

0.3%

-18.3%

-19.0%

71.0 70.98

1.0 0.97

1.4% 1.4%

1.4% 1.4%

0.01

0.95

0.90

-5.1%

HOLD

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Charts

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

-

10.0%

20.0%

25.0%

30.0%

40.0%

45.0%

50.0%

15.0%

35.0%

0.0%

5.0%

July ­ 2012
6.0% 9.0% 12.0% 15.0%

0.0%
Union National Bank Saudi Arabian Fertilizers Co Dana Gas Yamama Saudi Cement Co Jazeera Airways Co Qassim Cement Co

3.0%

Air Arabia

Global Research ­ GCC

Oman Cement Co

Commercial Bank of Qatar

Ras Al Khaimah Ceramics Co

Source: Glob al Research, Bloomb erg
Industries Qatar

Doha Bank Sorouh Real Estate Saudi Cement Co First Gulf Bank

Attractive P/E x

Raysut Cement Co Qatar National Cement Co

Dividend Yield

Return on Assets (ROA)

Saudi Arabian Fertilizers Co

Emirates NBD

Oman Telecommunications Co

Bahrain Telecommunications Co Yanbu Cement Co

Industries Qatar

Yamama Saudi Cement Co Etihad Etisalat Co

Bank Muscat

First Gulf Bank Bahrain Telecommunications Co

Bahrain Telecommunications Co

Mobile Telecommunications Co

5.0%

10.0%

15.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

0.0% 0.0%
Saudi Arabian Fertilizers Co Jazeera Airways Co Industries Qatar Saudi Cement Co

0.3

0.4

0.5

0.6

0.7

0.1
-

0.2

Abu Dhabi Commercial Bank

Dana Gas

Mabanee

Ras Al Khaimah Ceramics Co

Aldar Properties

Sorouh Real Estate

National Mobile Telecommunications Co

Ras Al Khaimah Cement Co

Mobile Telecommunications Co

Yamama Saudi Cement Co

Emirates NBD

Yanbu Cement Co

Qassim Cement Co

Attractive P/BV x

Return on Equity (ROE)

Air Arabia

Top 10 Gainers in 1 month

Emirates Telecommunications Corp

Etihad Etisalat Co Emaar Properties

Sorouh Real Estate

Al Khodari Sons Co

Union National Bank

Bank Muscat

Yanbu National Petrochemicals Co

Dar Alarkan

GCC Equity Monitor

6

Drake & Scull International

Yanbu Cement Co

Aldar Properties

Global Research ­ GCC

GCC Equity Monitor

Technical Overview: Saudi Stock Exchange (Tadawul)
Saudi All Share Index <.TASI> closed at 6,709.91 point. The support line at 6,500 point (near the base of Bollinger band) rejected further weaknesses in the market towards 6,300 point and 6,200 point, while the last buying activity could suggest a halt of the bearish tone, allowing additional strength to take place on the coming period. However, managing to gain a foothold over the resistance line at 6,840 point would be a positive sign that should enhance further potential to retarget the psychological level at 7,000 point and maybe more to 7,210 point. The weekly "RSI" indicator is looking neutral at present, while the daily one is pointing upwards. Strategy: Long-term (50 weeks) and medium-term (11 weeks) investors can re-enter the market above 6,840 point and 6,950 point, respectively. Index Name Saudi All Share Index June 30, 2012 Sector Reuters' RIC Last Trade (point) MACD* RSI** Moving Average (11 weeks) Moving Average (50 weeks) Support (1) ^ Support (2) ^ Resistance(1) ^^ Resistance(2) ^^ Trend Status
Name of Index Kuwait Stock Exchange Price Index Saudi All Share Index QE Index Abu Dhabi Price Index Dubai Financial Market Index MSM 30 Index Bahrain All Share Index

Index <.TASI> 6,709.91 120.18 41.558 6,950 6,840 6,500 6,300 7,000 7,210 Neutral
Reuter' RIC <.KWSE> <.TASI> <.QSI> <.ADX> <.DFMGI> <.MSI> <.BAX> Close 5,789.21 6,709.91 8,123.02 2,447.62 1,451.87 5,689.83 1,126.71 Weekly RSI 1 33.457 41.558 33.528 44.875 42.521 44.528 32.450 5,750 6,500 8,000 2,415 1,420 5,560 1,110 Support 2 5,680 6,300 7,750 2,292 1,350 5,500 1,100 Resistance 1 6,000 7,000 8,500 2,515 1,510 5,840 1,165 2 Strategy Medium Long Moving Average 11 6,050 6,840 8,400 2,470 1,510 5,720 1,140 50 6,120 6,950 8,500 2,515 1,510 5,800 1,200

6,100 Bearish Bearish 7,210 Bearish Neutral 9,000 2,640 1,590 6,085 Neutral Bearish Neutral Bearish Neutral Neutral

Neutral Bearish

1,200 Bearish Bearish

Definitions: A trend-following momentum indicator that shows the relationship between two moving averages of prices. When the MACD is above zero, the short-term average is above the long-term average, which signals upward momentum. The opposite is true. ** A technical momentum indicator that compares the magnitude of recent gains to recent losses in an attempt to determine overbought and oversold conditions of an asset. An asset is deemed to be overbought once the RSI approaches the 70 level, meaning that it may be getting overvalued and is a good candidate for a pullback. Likewise, if the RSI approaches 30, it is an indication that the asset may be getting oversold and therefore likely to become undervalued. × Moving average. Which is an arithmetic way and a tool used purpose of easing the price fluctuations to clarify the trend and differentiate between primary or secondary trend of prices and the normal fluctuations. ^ The price level which, historically, a stock has had difficulty falling below. It is thought of as the level at which a lot of buyers tend to enter the stock. ^^ The price at which a stock or market can trade, but can not exceed, for a certain period of time. The stock or market stops rising because sellers start to outnumber buyers. Disclaimer: This Technical Analysis is not an invitation to buy or sell, as it is "Global's" opinion and speculation of future movement of the stock. Also it is not considered a sufficient material to rely on when taking financial and investment decisions. Investors should study the financial statement before taking any investment decision. *

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Global Research ­ GCC

GCC Equity Monitor

Disclosure
The following is a comprehensive list of disclosures which may or may not apply to all our researches. Only the relevant disclosures which apply to this particular research has been mentioned in the table below under the heading of disclosure. Disclosure Checklist Company Abu Dhabi Commercial Bank Air Arabia Aldar Properties Al Rayan Bank Al Khodari Sons Company Arabian Cement Co. Arabtec Holding PJSC Aramex Bank Muscat Burgan Bank Commercial Bank of Kuwait Dana Gas Dar Alarkan Doha Bank Drake & Scull International Dubai Financial Market Emaar Economic City Emaar Properties Emirates NBD Emirates Telecommunications Corporation Etihad Etisalat Company First Gulf Bank Industries Qatar Jazeera Airways Company Kuwait Finance House Mabanee Mobile Telecommunications Company National Bank of Abu Dhabi National Bank of Kuwait National Mobile Telecommunications Company Oman Cement Company Oman Telecommunications Company Qassim Cement Co Qatar Islamic Bank Qatar National Bank Qatar National Cement Company Qatar Telecom Ras Al Khaimah Cement Company Ras Al Khaimah Ceramics Co. Raysut Cement Company Recommendation BUY STRONG BUY U/R HOLD STRONG BUY STRONG BUY SELL BUY U/R BUY HOLD U/R U/R BUY BUY HOLD U/R U/R STRONG BUY STRONG BUY BUY STRONG BUY STRONG BUY STRONG BUY HOLD U/R BUY BUY HOLD BUY HOLD HOLD HOLD HOLD BUY STRONG BUY STRONG BUY U/R U/R HOLD Bloomberg Ticker ADCB UH AIRARABI UH ALDAR UH MARK QD ALKHODAR AB ARCCO AB ARTC UH ARMX UH BKMB OM BURG KK CBK KK DANA UH ALARKAN AB DHBK QD DSI UH DFM UH EMAAR AB EMAAR UH EMIRATES UH ETISALAT UH EEC AB FGB UH IQCD QD JAZEERA KK KFIN KK MABANEE KK ZAIN KK NBAD UH NBK KK NMTC KK OCOI OM OTEL OM QACCO AB QIBK QD QNBK QD QNCD QD QTEL QD RAKCC UH RAKCEC UH RCCI OM Reuters Ticker ADCB.AD AIRA.DU ALDR.AD MARK.QA 1330.SE 3010.SE ARTC.DU ARMX.DU BMAO.OM BURG.KW CBKK.KW DANA.AD 4300.SE DOBK.QA DSI.DU DFM.DU 4220.SE EMAR.DU ENBD.DU ETEL.AD 7020.SE FGB.AD IQCD.QA JAZK.KW KFIN.KW MABK.KW ZAIN.KW NBAD.AD NBKK.KW NMTC.KW OCCO.OM OTL.OM 3040.SE QISB.QA QNBK.QA QANC.QA QTEL.QA RAKC.AD RKCE.AD RAYC.OM Price AED 3.33 SAR 0.591 AED 1.12 QAR 27 SAR 29.3 SAR 55.5 AED 2.83 AED 1.75 OMR 0.587 KWD 0.43 KWD 0.78 AED 0.38 SAR 9.35 QAR 55 AED 0.792 AED 0.948 SAR 9.1 AED 2.85 AED 2.71 AED 9.25 SAR 62.5 AED 8.14 QAR 127.2 KWD 0.335 KWD 0.73 KWD 1.08 KWD 0.74 AED 8.27 KWD 1.04 KWD 2.2 OMR 0.643 OMR 1.335 SAR 79 QAR 76.3 QAR 133 QAR 104 QAR 105.5 AED 0.67 AED 1.14 OMR 1.343 Disclosure 1,10 1,10 1,10 1,10 1,10 1,10 1,10 1,10 1,10 1,10 1,10 1,10 1,10 1,10 1,10 1,10 1,10 1,10 1,10 1,10 1,10 1,10 1,10 1,10 1,10 1,10 1,10 1,10 1,10 1,10 1,10 1,10 1,10 1,10 1,10 1,10 1,10 1,10 1,10 1,10

July ­ 2012

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Global Research ­ GCC

GCC Equity Monitor

Salhia Real Estate Saudi Arabia Fertilizers Company Saudi Basic Industries Corporation Saudi Cement Company Saudi International Petrochemichal Company Saudi Real Estate Co Saudi Telecom Company Sorouh Real Estate Commercial Bank of Qatar Union National Bank Vodafone Qatar Yamama Saudi Cement Company Yanbu Cement Co Yanbu National Petrochemicals Company

U/R STRONG BUY STRONG BUY HOLD STRONG BUY U/R BUY U/R STRONG BUY STRONG BUY SELL BUY SELL STRONG BUY

SRE KK SAFCO AB SABIC AB SACCO AB SIPCHEM AB SRECO AB STC AB SOROUH UH CBQK QD UNB UH VFQS QD YACCO AB YNCCO AB YANSAB AB

SREK.KW 2020.SE 2010.SE 3030.SE 2310.SE 4020.SE 4110.SE SOR.AD COMB.QA UNB.AD VFQS.QA 3020.SE 3060.SE 2290.SE

KWD 0.27 SAR 171 SAR 91.5 SAR 90.25 SAR 18.05 SAR 25.1 SAR 39.4 AED 1.03 QAR 69.9 AED 2.78 QAR 9.06 SAR 48.2 SAR 78.5 SAR 43.8

1,10 1,10 1,10 1,10 1,10 1,10 1,10 1,10 1,10 1,10 1,10 1,10 1,10 1,10

1. Global Investment House did not receive and will not receive any compensation from the company or anyone else for the preparation of this report. 2. The company being researched holds more than 5% stake in Global Investment House. 3. Global Investment House makes a market in securities issued by this company. 4. Global Investment House acts as a corporate broker or sponsor to this company. 5. The author of or an individual who assisted in the preparation of this report (or a member of his/her household) has a direct ownership position in securities issued by this company. 6. An employee of Global Investment House serves on the board of directors of this company. 7. Within the past year , Global Investment House has managed or co-managed a public offering for this company, for which it received fees. 8. Global Investment House has received compensation from this company for the provision of investment banking or financial advisory services within the past year. 9. Global Investment House expects to receive or intends to seek compensation for investment banking services from this company in the next three months. 10. Please see special footnote below for other relevant disclosures. Global Research: Equity Ratings Definitions Global Rating STRONG BUY BUY HOLD SELL U/R

Definition Fair value of the stock is Fair value of the stock is Fair value of the stock is Fair value of the stock is Fair value of the stock is

>20% from the current market price between +10% and +20% from the current market price between +10% and -10% from the current market price < -10% from the current market price Under Review

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Global Research ­ GCC

GCC Equity Monitor

Disclaimer
This material was produced by Global Investment House KSCC (`Global'),a firm regulated by the Central Bank of Kuwait. This document is not to be used or considered as an offer to sell or a solicitation of an offer to buy any securities. Global may, from time to time to the extent permitted by law, participate or invest in other financing transactions with the issuers of the securities (`securities'), perform services for or solicit business from such issuer, and/or have a position or effect transactions in the securities or options thereof. Global may, to the extent permitted by applicable Kuwaiti law or other applicable laws or regulations, effect transactions in the securities before this material is published to recipients. Information and opinions contained herein have been compiled or arrived by Global from sources believed to be reliable, but Global has not independently verified the contents of this document. Accordingly, no representation or warranty, express or implied, is made as to and no reliance should be placed on the fairness, accuracy, completeness or correctness of the information and opinions contained in this document. Global accepts no liability for any loss arising from the use of this document or its contents or otherwise arising in connection therewith. This document is not to be relied upon or used in substitution for the exercise of independent judgment. Global shall have no responsibility or liability whatsoever in respect of any inaccuracy in or omission from this or any other document prepared by Global for, or sent by Global to any person and any such person shall be responsible for conducting his own investigation and analysis of the information contained or referred to in this document and of evaluating the merits and risks involved in the securities forming the subject matter of this or other such document. Opinions and estimates constitute our judgment and are subject to change without prior notice. Past performance is not indicative of future results. This document does not constitute an offer or invitation to subscribe for or purchase any securities, and neither this document nor anything contained herein shall form the basis of any contract or commitment whatsoever. It is being furnished to you solely for your information and may not be reproduced or redistributed to any other person. Neither this report nor any copy hereof may be distributed in any jurisdiction outside Kuwait where its distribution may be restricted by law. Persons who receive this report should make themselves aware of and adhere to any such restrictions. By accepting this report you agree to be bound by the foregoing limitations.

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Global Research ­ GCC

GCC Equity Monitor

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