country standard small cap markets small cap...

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MENA StrategyEquities

MSCI Review

Sunday, 15 November 2015

MSCI’s major three indices showed little changes, while the other indices showedmajor additions/exclusions: MSCI updated its Global Indices in terms of additions andexclusions which will take place as of the close of Monday, 30 November 2015. For thethree major indices:

MSCI Global Standard Indices:

o Added: Etisalat Group (ETISALAT.ADX), Qatar Gas Transport “Nakilat” (QGTS.QE).o Deleted: Gulf International Services (GISS.QE).

MSCI Global Small Cap Indices:

o Added: Amlak Finance (AMLAK.DFM).o Deleted: Shuaa Capital (SHUAA.DFM), Al Khalij Commercial Bank (KCBK.QE),

Alexandria Mineral Oils (AMOC.EGX).

MSCI GCC Countries Standard Indices:

o Added: Etisalat Group (ETISALAT.ADX), Qatar Gas Transport “Nakilat” (QGTS.QE), Ahli United Bank (AUB`R.KSE).

o Deleted: Gulf International Services (GISS.QE), Al-Salam Bank (SALAM.BB), Bank Dhofar (BKDB.MSM).

Saudi Arabia Small Cap index showed major changes: MSCI announced major changesin the constituents list of MSCI Saudi Arabia Small Cap index effective as of the close of30 November 2015. With no additions, six stocks will be deleted, namely Al JoufCement (3091.TDWL), Bawan Holding (1302.TDWL), Hail Cement (3001.TDWL), RedSea Housing Services (4230.TDWL), Tabuk Cement (3090.TDWL), and UnitedElectronics “Extra” (4003.TDWL).

Aggregate additions/exclusions are sorted by country on pages 2-3 and by index onpages 4-5. Company briefs are on pages 6-11.

MSCI Equity Indices November 2015

Semi-Annual Index Review

Ahmed Abd ElnabyStrategist

Mubasher [email protected]

MENA Securities Affected by Recent MSCI Review

Research [email protected]

In Out In Out In Out In Out In Out In Out In Out In Out In Out

Bahrain 0 0 0 0 1 1 3 2 1 1 3 2 0 1 1 1 0 0Egypt 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0Jordan 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0Kuwait 0 0 0 0 0 0 1 4 0 0 1 4 0 0 1 4 0 0Morocco 0 0 0 0 0 0 3 2 0 0 0 0 0 0 0 0 0 0Oman 0 0 0 0 0 1 1 3 0 1 1 3 0 1 1 2 0 0Qatar 1 1 0 1 0 0 0 0 1 1 0 1 0 0 0 2 0 0Saudi Arabia 0 0 0 0 0 0 0 0 0 0 0 0 1 1 3 12 0 6Tunisia 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0UAE 1 0 1 1 0 0 0 0 1 0 1 1 0 1 1 1 0 0Total 2 1 1 3 1 3 9 11 3 3 6 11 1 4 7 22 0 6

Source: MSCI

MENA

Country

MSCI

FRONTIER

MARKETS

SMALL CAP

MSCI

SAUDI ARABIA

SMALL CAP

MSCI GCC

COUNTRIES

STANDARD

MSCI

GLOBAL

STANDARD

MSCI GCC

COUNTRIES

DOMESTIC

STANDARD

MSCI GCC

COUNTRIES

SMALL CAP

MSCI GCC

COUNTRIES

DOMESTIC

SMALL CAP

MSCI

GLOBAL

SMALL CAP

MSCI

FRONTIER

MARKETS

http://www.MubasherTrade.com

mailto:[email protected]


MENA Strategy | Equities | MSCI Review


MSCI Indices | All Additions / Exclusions By Country

Mubasher

TickerName Added To

Mubasher

TickerName Excluded From

Bahrain Frontier Market AUB`R.KSE Ahli United Bank MSCI FRONTIER MARKETS INDEXES SALAM.BB Al-Salam Bank MSCI FRONTIER MARKETS INDEXES

MSCI GCC COUNTRIES STANDARD INDEXES MSCI GCC COUNTRIES STANDARD INDEXES

SALAM.BB Al-Salam Bank MSCI FRONTIER MARKETS SMALL CAP INDEXES MSCI GCC COUNTRIES DOMESTIC STANDARD INDEXES

MSCI GCC COUNTRIES SMALL CAP INDEXES ITHMR.BB Ithmaar Bank MSCI FRONTIER MARKETS SMALL CAP INDEXES

MSCI GCC COUNTRIES DOMESTIC SMALL CAP INDEXES MSCI GCC COUNTRIES SMALL CAP INDEXES

GFH.BB Gulf Finance House MSCI FRONTIER MARKETS SMALL CAP INDEXES MSCI GCC COUNTRIES DOMESTIC SMALL CAP INDEXES

MSCI GCC COUNTRIES SMALL CAP INDEXES NASS.BB Nass Corp MSCI FRONTIER MARKETS SMALL CAP INDEXES

ITHMR.KSE Ithmaar Bank MSCI FRONTIER MARKETS SMALL CAP INDEXES MSCI GCC COUNTRIES SMALL CAP INDEXES

MSCI GCC COUNTRIES SMALL CAP INDEXES

Egypt Emerging Market -- -- -- AMOC.EGX Alexandria Mineral Oils MSCI GLOBAL SMALL CAP INDEXES

Jordan Frontier Market -- -- -- JTEL.ASE Jordan Telecommunications MSCI FRONTIER MARKETS INDEXES

Kuwait Frontier Market MEZZAN`R.KSE Mezzan Holding MSCI FRONTIER MARKETS SMALL CAP INDEXES TAM.KSE Tamdeen Real Estate MSCI FRONTIER MARKETS SMALL CAP INDEXES

MSCI GCC COUNTRIES SMALL CAP INDEXES MSCI GCC COUNTRIES SMALL CAP INDEXES

MSCI GCC COUNTRIES DOMESTIC SMALL CAP INDEXES MSCI GCC COUNTRIES DOMESTIC SMALL CAP INDEXES

ALQURAIN.KSE Al-Qurain Petrochemicals MSCI FRONTIER MARKETS SMALL CAP INDEXES


MSCI GCC COUNTRIES DOMESTIC SMALL CAP INDEXES

IKARUS.KSE Ikarus Petroleum Industries MSCI FRONTIER MARKETS SMALL CAP INDEXES



KRE.KSE Kuwait Real Estate MSCI FRONTIER MARKETS SMALL CAP INDEXES



Morocco Frontier Market CSR.CSE Cosumar MSCI FRONTIER MARKETS SMALL CAP INDEXES RIS.CSE RISMA MSCI FRONTIER MARKETS SMALL CAP INDEXES

LYD.CSE Lydec MSCI FRONTIER MARKETS SMALL CAP INDEXES SMI.CSE Societe Metallurgique D'imiter MSCI FRONTIER MARKETS SMALL CAP INDEXES

TMA.CSE Total Maroc MSCI FRONTIER MARKETS SMALL CAP INDEXES

Oman Frontier Market PHPC.MSM Phoenix Power MSCI FRONTIER MARKETS SMALL CAP INDEXES BKDB.MSM Bank Dhofar MSCI FRONTIER MARKETS INDEXES

MSCI GCC COUNTRIES SMALL CAP INDEXES MSCI GCC COUNTRIES STANDARD INDEXES

MSCI GCC COUNTRIES DOMESTIC SMALL CAP INDEXES MSCI GCC COUNTRIES DOMESTIC STANDARD INDEXES

OOMS.MSM Oman Oil Marketing MSCI FRONTIER MARKETS SMALL CAP INDEXES



RNSS.MSM Renaissance Services MSCI FRONTIER MARKETS SMALL CAP INDEXES


SMNP.MSM SMN Power Holding MSCI FRONTIER MARKETS SMALL CAP INDEXES



CountryCountry

Classification

Stocks Added Stocks Excluded






MSCI Indices | All Additions / Exclusions By Country (Cont.’d)

Source: MSCI

Mubasher

TickerName Added To

Mubasher

TickerName Excluded From

Bahrain Emerging Market AUB.BB Ahli United Bank MSCI FRONTIER MARKETS INDEXES SALAM.BB Al-Salam Bank MSCI FRONTIER MARKETS INDEXES


SALAM.BB Al-Salam Bank MSCI GCC COUNTRIES SMALL CAP INDEXES MSCI GCC COUNTRIES DOMESTIC STANDARD INDEXES

MSCI GCC COUNTRIES DOMESTIC SMALL CAP INDEXES ITHMR.BB Ithmaar Bank MSCI GCC COUNTRIES SMALL CAP INDEXES

MSCI FRONTIER MARKETS SMALL CAP INDEXES MSCI GCC COUNTRIES DOMESTIC SMALL CAP INDEXES

GFH.BB Gulf Finance House MSCI FRONTIER MARKETS SMALL CAP INDEXES MSCI FRONTIER MARKETS SMALL CAP INDEXES

MSCI GCC COUNTRIES SMALL CAP INDEXES NASS.BB Nass Corp MSCI FRONTIER MARKETS SMALL CAP INDEXES


Jordan Emerging Market -- -- -- JTEL.ASE Jordan Telecommunications MSCI FRONTIER MARKETS INDEXES

Kuwait Emerging Market MEZZAN`R.KSE Mezzan Holding MSCI GCC COUNTRIES SMALL CAP INDEXES TAM.KSE Tamdeen Real Estate MSCI GCC COUNTRIES SMALL CAP INDEXES

MSCI GCC COUNTRIES DOMESTIC SMALL CAP INDEXES MSCI GCC COUNTRIES DOMESTIC SMALL CAP INDEXES

MSCI FRONTIER MARKETS SMALL CAP INDEXES MSCI FRONTIER MARKETS SMALL CAP INDEXES

ALQURAIN.KSE Al-Qurain Petrochemicals MSCI FRONTIER MARKETS SMALL CAP INDEXES



IKARUS.KSE Ikarus Petroleum Industries MSCI FRONTIER MARKETS SMALL CAP INDEXES



KRE.KSE Kuwait Real Estate MSCI FRONTIER MARKETS SMALL CAP INDEXES



Morocco Emerging Market CSR.CSE Cosumar MSCI FRONTIER MARKETS SMALL CAP INDEXES RIS.CSE RISMA MSCI FRONTIER MARKETS SMALL CAP INDEXES

LYD.CSE Lydec MSCI FRONTIER MARKETS SMALL CAP INDEXES SMI.CSE Societe Metallurgique D'imiter MSCI FRONTIER MARKETS SMALL CAP INDEXES

TMA.CSE Total Maroc MSCI FRONTIER MARKETS SMALL CAP INDEXES

Oman Frontier Market PHPC.MSM Phoenix Power MSCI GCC COUNTRIES SMALL CAP INDEXES BKDB.MSM Bank Dhofar MSCI FRONTIER MARKETS INDEXES

MSCI GCC COUNTRIES DOMESTIC SMALL CAP INDEXES MSCI GCC COUNTRIES STANDARD INDEXES

MSCI FRONTIER MARKETS SMALL CAP INDEXES MSCI GCC COUNTRIES DOMESTIC STANDARD INDEXES

OOMS.MSM Oman Oil Marketing MSCI GCC COUNTRIES SMALL CAP INDEXES


MSCI FRONTIER MARKETS SMALL CAP INDEXES

RNSS.MSM Renaissance Services MSCI FRONTIER MARKETS SMALL CAP INDEXES


SMNP.MSM SMN Power Holding MSCI FRONTIER MARKETS SMALL CAP INDEXES



Qatar Frontier Market QGTS.QE Qatar Gas Transport (Nakilat) MSCI GLOBAL STANDARD INDEXES GISS.QE Gulf International Services MSCI GLOBAL STANDARD INDEXES


KCBK.QE Al Khalij Commercial Bank MSCI GLOBAL SMALL CAP INDEXES



MCGS.QE Medicare Group MSCI GCC COUNTRIES DOMESTIC SMALL CAP INDEXES

Saudi Arabia Frontier Market 8210.TDWL Bupa Arabia MSCI GCC COUNTRIES DOMESTIC STANDARD INDEXES 3010.TDWL Arabian Cement MSCI GCC COUNTRIES DOMESTIC STANDARD INDEXES

3010.TDWL Arabian Cement MSCI GCC COUNTRIES DOMESTIC SMALL CAP INDEXES 2200.TDWL Arabian Pipes MSCI GCC COUNTRIES DOMESTIC SMALL CAP INDEXES

1210.TDWL Basic Chemical Industries MSCI GCC COUNTRIES DOMESTIC SMALL CAP INDEXES

8210.TDWL Bupa Arabia MSCI GCC COUNTRIES DOMESTIC SMALL CAP INDEXES

2370.TDWL Middle East Specialized Cables MSCI GCC COUNTRIES DOMESTIC SMALL CAP INDEXES

2090.TDWL National Gypsum MSCI GCC COUNTRIES DOMESTIC SMALL CAP INDEXES

2120.TDWL Saudi Advanced Industries MSCI GCC COUNTRIES DOMESTIC SMALL CAP INDEXES

2110.TDWL Saudi Cable MSCI GCC COUNTRIES DOMESTIC SMALL CAP INDEXES

8311.TDWL Saudi Enaya Cooperative Insurance MSCI GCC COUNTRIES DOMESTIC SMALL CAP INDEXES

2030.TDWL Saudi Arabia Refineries MSCI GCC COUNTRIES DOMESTIC SMALL CAP INDEXES

8290.TDWL Solidarity Saudi Takaful MSCI GCC COUNTRIES DOMESTIC SMALL CAP INDEXES

4070.TDWL Tihama MSCI GCC COUNTRIES DOMESTIC SMALL CAP INDEXES

8300.TDWL Wataniya Insurance MSCI GCC COUNTRIES DOMESTIC SMALL CAP INDEXES

3091.TDWL Al Jouf Cement MSCI SAUDI ARABIA SMALL CAP INDEX

Tunisia Emerging Market STB.TNTSE Ste Tunisienne De Banque MSCI FRONTIER MARKETS SMALL CAP INDEXES -- -- --

UAE Emerging Market ETISALAT.ADX Emirates Telecommunications MSCI GLOBAL STANDARD INDEXES ETISALAT.ADX Emirates Telecommunications MSCI GCC COUNTRIES DOMESTIC STANDARD INDEXES

MSCI GCC COUNTRIES STANDARD INDEXES SHUAA.DFM SHUAA Capital MSCI GLOBAL SMALL CAP INDEXES

AMLAK.DFM Amlak Finance MSCI GLOBAL SMALL CAP INDEXES MSCI GCC COUNTRIES SMALL CAP INDEXES

MSCI GCC COUNTRIES SMALL CAP INDEXES MSCI GCC COUNTRIES DOMESTIC SMALL CAP INDEXES


Dark-blue colored cells indicate changes to MSCI Global Standard Indexes Dark-grey colored cells indicate changes to MSCI Frontier Markets Indexes

Light-blue colored cells indicate changes to MSCI Global Small Cap Indexes Light-grey colored cells indicate changes to MSCI GCC Countries Standard Indexes

CountryCountry

Classification

Stocks Added Stocks Excluded

Qatar Emerging Market QGTS.QE Qatar Gas Transport (Nakilat) MSCI GLOBAL STANDARD INDEXES GISS.QE Gulf International Services MSCI GLOBAL STANDARD INDEXES


KCBK.QE Al Khalij Commercial Bank MSCI GLOBAL SMALL CAP INDEXES



MCGS.QE Medicare Group MSCI GCC COUNTRIES DOMESTIC SMALL CAP INDEXES

Saudi Arabia Frontier Market 8210.TDWL Bupa Arabia MSCI GCC COUNTRIES DOMESTIC STANDARD INDEXES 3010.TDWL Arabian Cement MSCI GCC COUNTRIES DOMESTIC STANDARD INDEXES

3010.TDWL Arabian Cement MSCI GCC COUNTRIES DOMESTIC SMALL CAP INDEXES 2200.TDWL Arabian Pipes MSCI GCC COUNTRIES DOMESTIC SMALL CAP INDEXES

1202.TDWL Middle East Paper MSCI GCC COUNTRIES DOMESTIC SMALL CAP INDEXES 1210.TDWL Basic Chemical Industries MSCI GCC COUNTRIES DOMESTIC SMALL CAP INDEXES

4008.TDWL Saudi Co For Hardware MSCI GCC COUNTRIES DOMESTIC SMALL CAP INDEXES 8210.TDWL Bupa Arabia MSCI GCC COUNTRIES DOMESTIC SMALL CAP INDEXES

2370.TDWL Middle East Specialized Cables MSCI GCC COUNTRIES DOMESTIC SMALL CAP INDEXES

2090.TDWL National Gypsum MSCI GCC COUNTRIES DOMESTIC SMALL CAP INDEXES

2120.TDWL Saudi Advanced Industries MSCI GCC COUNTRIES DOMESTIC SMALL CAP INDEXES

2110.TDWL Saudi Cable MSCI GCC COUNTRIES DOMESTIC SMALL CAP INDEXES

8311.TDWL Saudi Enaya Cooperative Insurance MSCI GCC COUNTRIES DOMESTIC SMALL CAP INDEXES

2030.TDWL Saudi Arabia Refineries MSCI GCC COUNTRIES DOMESTIC SMALL CAP INDEXES

8290.TDWL Solidarity Saudi Takaful MSCI GCC COUNTRIES DOMESTIC SMALL CAP INDEXES

4070.TDWL Tihama MSCI GCC COUNTRIES DOMESTIC SMALL CAP INDEXES

8300.TDWL Wataniya Insurance MSCI GCC COUNTRIES DOMESTIC SMALL CAP INDEXES

3091.TDWL Al Jouf Cement MSCI SAUDI ARABIA SMALL CAP INDEX

1302.TDWL Bawan MSCI SAUDI ARABIA SMALL CAP INDEX

3001.TDWL Hail Cement MSCI SAUDI ARABIA SMALL CAP INDEX

4230.TDWL Red Sea Housing Services MSCI SAUDI ARABIA SMALL CAP INDEX

3090.TDWL Tabuk Cement MSCI SAUDI ARABIA SMALL CAP INDEX

4003.TDWL United Electronics MSCI SAUDI ARABIA SMALL CAP INDEX

Tunisia Frontier Market STB.TNTSE Ste Tunisienne De Banque MSCI FRONTIER MARKETS SMALL CAP INDEXES -- -- --

UAE Emerging Market ETISALAT.ADX Emirates Telecommunications MSCI GLOBAL STANDARD INDEXES DU.DFM Emirates Intgr Telecom "DU" MSCI GCC COUNTRIES DOMESTIC STANDARD INDEXES

MSCI GCC COUNTRIES STANDARD INDEXES SHUAA.DFM SHUAA Capital MSCI GLOBAL SMALL CAP INDEXES

AMLAK.DFM Amlak Finance MSCI GLOBAL SMALL CAP INDEXES MSCI GCC COUNTRIES SMALL CAP INDEXES

MSCI GCC COUNTRIES SMALL CAP INDEXES MSCI GCC COUNTRIES DOMESTIC SMALL CAP INDEXES


Light-blue colored cells indicate changes to MSCI Global Standard & Small Cap Indexes

Dark-grey colored cells indicate changes to MSCI Frontier Markets & Small Cap Indexes

Tan-colored cells indicate changes to MSCI GCC Countries & Small Cap Indexes

Light-grey colored cells indicate changes to MSCI GCC Countries Domestic & Small Cap Indexes






MSCI Indices | All Additions / Exclusions By Index

Mubasher

TickerName Sector

Mubasher

TickerName Sector

MSCI UNITED ARAB EMIRATES INDEX UAE Emerging Market ETISALAT.ADX Emirates Telecommunications Telecommunication Services -- -- --

MSCI QATAR INDEX Qatar Emerging Market QGTS.QE Qatar Gas Transport (Nakilat) Energy GISS.QE Gulf International Services Energy

MSCI UNITED ARAB EMIRATES INDEX UAE Emerging Market AMLAK.DFM Amlak Finance Financials SHUAA.DFM SHUAA Capital Financials

MSCI EGYPT INDEX Egypt Emerging Market -- -- -- AMOC.EGX Alexandria Mineral Oils Energy

MSCI QATAR INDEX Qatar Emerging Market -- -- -- KCBK.QE Al Khalij Commercial Bank Financials

MSCI JORDAN INDEX Jordan Frontier Market -- -- -- JTEL.ASE Jordan Telecommunications Telecommunication Services

MSCI BAHRAIN INDEX Bahrain Frontier Market AUB.BB Ahli United Bank Financials SALAM.BB Al-Salam Bank Financials

MSCI OMAN INDEX Oman Frontier Market -- -- -- BKDB.MSM Bank Dhofar Financials

CSR.CSE Cosumar Consumer Staples RIS.CSE RISMA Consumer Discretionary

LYD.CSE Lydec Utilities SMI.CSE Societe Metallurgique D'imiter Materials

TMA.CSE Total Maroc Energy -- -- --

SALAM.BB Al-Salam Bank Financials ITHMR.BB Ithmaar Bank Financials

GFH.BB Gulf Finance House Financials NASS.BB Nass Corp Industrials

ITHMR.BB Ithmaar Bank Financials -- -- --

MEZZAN`R.KSE Mezzan Holding Consumer Staples TAM.KSE Tamdeen Real Estate Real Estate

-- -- -- ALQURAIN.KSE Al-Qurain Petrochemicals Materials

-- -- -- IKARUS.KSE Ikarus Petroleum Industries Materials

-- -- -- KRE.KSE Kuwait Real Estate Real Estate

PHPC.MSM Phoenix Power Energy OOMS.MSM Oman Oil Marketing Energy

-- -- -- RNSS.MSM Renaissance Services Energy

-- -- -- SMNP.MSM SMN Power Holding Utilities

MSCI TUNISIA INDEX Tunisia Frontier Market STB.TNTSE Ste Tunisienne De Banque Financials -- -- --

MSCI UNITED ARAB EMIRATES INDEX UAE Emerging Market ETISALAT.ADX Emirates Telecommunications Telecommunication Services -- -- --

MSCI QATAR INDEX Qatar Emerging Market QGTS.QE Qatar Gas Transport (Nakilat) Energy GISS.QE Gulf International Services Energy

MSCI BAHRAIN INDEX Bahrain Frontier Market AUB`R.KSE Ahli United Bank Financials SALAM.BB Al-Salam Bank Financials



MSCI QATAR INDEX Qatar Emerging Market -- -- -- KCBK.QE Al Khalij Commercial Bank Financials

SALAM.BB Al-Salam Bank Financials ITHMR.BB Ithmaar Bank Financials

GFH.BB Gulf Finance House Financials NASS.BB Nass Corp Industrials

ITHMR.KSE Ithmaar Bank Financials -- -- --






-- -- -- RNSS.MSM Renaissance Services Energy


Frontier Market

Oman Frontier Market

MSCI KUWAIT INDEX

Frontier MarketOmanMSCI OMAN INDEX

Frontier Market

MSCI MOROCCO INDEX Morocco

MSCI FRONTIER MARKETS SMALL

CAP INDEXESFrontier Market

MSCI BAHRAIN INDEX Bahrain

Kuwait

Stocks Excluded

MSCI BAHRAIN INDEX Bahrain

MSCI KUWAIT INDEX Kuwait

Country

ClassificationCountrySub-Index

Stocks Added

Frontier Market

Frontier Market

Major Index

MSCI OMAN INDEX

MSCI GLOBAL SMALL CAP INDEXES

MSCI GLOBAL STANDARD INDEXES

MSCI FRONTIER MARKETS INDEXES

MSCI GCC Countries Standard

Indexes

MSCI GCC COUNTRIES SMALL CAP

INDEXES






MSCI Indices | All Additions / Exclusions By Index (Cont.’d)

Mubasher

TickerName Sector

Mubasher

TickerName Sector

Stocks ExcludedCountry

ClassificationCountrySub-Index

Stocks Added

Major Index

MSCI UNITED ARAB EMIRATES INDEX UAE Emerging Market -- -- -- DU.DFM Emirates Intgr Telecom "DU" Telecommunication Services

MSCI SAUDI ARABIA INDEX Saudi Arabia Frontier Market * 8210.TDWL Bupa Arabia Financials 3010.TDWL Arabian Cement Materials

MSCI BAHRAIN INDEX Bahrain Frontier Market -- -- -- SALAM.BB Al-Salam Bank Financials



-- -- -- KCBK.QE Al Khalij Commercial Bank Financials

-- -- -- MCGS.QE Medicare Group Health Care

MSCI BAHRAIN INDEX Bahrain Frontier Market SALAM.BB Al-Salam Bank Financials ITHMR.BB Ithmaar Bank Financials







3010.TDWL Arabian Cement Materials 2200.TDWL Arabian Pipes Industrials

1202.TDWL Middle East Paper Materials 1210.TDWL Basic Chemical Industries Materials

4008.TDWL Saudi Co For Hardware Consumer Discretionary 8210.TDWL Bupa Arabia Financials

-- -- -- 2370.TDWL Middle East Specialized Cables Industrials

-- -- -- 2090.TDWL National Gypsum Materials

-- -- -- 2120.TDWL Saudi Advanced Industries Financials

-- -- -- 2110.TDWL Saudi Cable Industrials

-- -- -- 8311.TDWL Saudi Enaya Cooperative Insurance Financials

-- -- -- 2030.TDWL Saudi Arabia Refineries Energy

-- -- -- 8290.TDWL Solidarity Saudi Takaful Financials

-- -- -- 4070.TDWL Tihama Consumer Discretionary

-- -- -- 8300.TDWL Wataniya Insurance Financials

-- -- -- 3091.TDWL Al Jouf Cement Materials

-- -- -- 1302.TDWL Bawan Materials

-- -- -- 3001.TDWL Hail Cement Materials

-- -- -- 4230.TDWL Red Sea Housing Services Real Estate

-- -- -- 3090.TDWL Tabuk Cement Materials

-- -- -- 4003.TDWL United Electronics Consumer Discretionary

Source: MSCI

* Saudi Arabia Index is a standalone index

Frontier Market *Saudi Arabia

Frontier Market

Emerging Market

Frontier Market

MSCI SAUDI ARABIA SMALL CAP INDEXMSCI SAUDI ARABIA SMALL CAP

INDEXSaudi Arabia Frontier Market *

MSCI OMAN INDEX Oman

MSCI GCC COUNTRIES DOMESTIC

SMALL CAP INDEXES

MSCI QATAR INDEX Qatar

MSCI KUWAIT INDEX Kuwait

MSCI SAUDI ARABIA INDEX

MSCI GCC COUNTRIES DOMESTIC

STANDARD INDEXES






Selected Company Briefs

QATAR

Al Khalij Commercial Bank “Al Khaliji” (KCBK.QE): Al Khaliji is one of Qatar's leading banks and a member of the Qatar Exchange since 2007 with QAR55.3bn in total assets and

QAR29.4bn in customer deposits as of 30 September 2015. The bank offers a wide range of conventional banking products and services to premium, business, corporate and

international customers in Qatar and UAE. In addition, the bank controls a fully-owned subsidiary in France named Al Khaliji France, located in Paris, France. The bank has a network of

branches in the UAE covering Abu Dhabi, Dubai, Sharjah, and Ras Al Khaima. Al Khalij Commercial Bank is headquartered in Doha.

Gulf International Services “GIS” (GISS.QE): GIS, established in February 2008, is a Qatar-based public company that operates, along with its subsidiaries and joint ventures, in four

business segments: (1) The insurance segment provides a range of insurance and reinsurance services to Qatar Petroleum (QP) and its subsidiaries and other companies, (2) The

aviation segment provides helicopter transportation services in Qatar, as well as operates as a provider of helicopter transportation services in Middle East and North Africa (MENA

region), (3) The drilling segment provides drilling and drilling related services to the QP group and its international co-ventures, and (4) the catering segment provides catering and

manpower services to the QP group and its affiliates. GIS has been listed on the Qatar Exchange since May 2008.

Medicare Group (MCGS.QE): Established in December 1996, Medicare Group is a public company based in Doha, Qatar. It operates within the health care equipment and services

sector, specializing in establishing hospitals with outside clinics. It posted its Q3 2015 results showing 12% YoY higher earnings of QAR128.8mn on 18% higher revenues. While gross

margin merely declined from 48% to at 47%, net margin only slipped to 16% from 17% in Q3 2014. Furthermore, in October 2015 the company had announced its plans to expand its

operations through establishing three major emergency departments and outpatient clinics worth QAR500mn over the coming three years.

Qatar Gas Transport (Nakilat): Nakilat is a marine company established in 2004 by the government of Qatar to own, operate and manage LNG vessels and provide shipping and

marine-related services. Nakilat is considered the world’s leading owner and operator of vessels for the transportation of liquefied natural gas (LNG) and associated products. Its LNG

shipping fleet is the largest in the world, growing to 61 LNG vessels in 2015. Key positives are: Stable cash flows backed by long term charter agreements; Nakilat is protected from

swings in spot market LNG charter rates and from changes in LNG and oil prices; Not exposed to commodity price risk due to the pass of fuel costs to the charterers. Meanwhile, key

risks are: With most of the company’s vessels being bound by long-term contracts, Nakilat is unlikely to benefit from any increase in spot rates; Political tensions in the Middle East

that could cause disruption to key shipping routes.






Selected Company Briefs (Cont.’d)

SAUDI ARABIA

Al Jouf Cement (3091.TDWL): Al Jouf Cement operates since mid-2010 in the Northern region with a current capacity of 1.7mn tons per annum producing Ordinary Portland Cement

(OPC) and Sulfate-Resistant Cement (SRC). The company is planning to double its current capacity by mid-2017. On the upside, the company is expected to increase its current 2.4%

market share when expansions begin commercial operations. The company’s proximity to Jordan and Iraq will enable it to expand its market reach when the export ban is lifted. The

company has good distribution channels in the Medina and the central region. The construction of the The Prince Abdulaziz bin Musaid Economic City worth USD20bn. On the

downside, uncertainty surrounds the supply of energy for the new expansions. Slow demand on the Northern region which has the least market share in the Kingdom (9% as of 2014).

The removal of energy subsidies would severely affect margins especially with the presence of a selling price cap. There is also the risk of political instability across the border in Iraq.

Arabian Cement (3010.TDWL): Arabian Cement is the oldest cement producer in Saudi Arabia, operating since 1955 in the Western region with a current capacity of 5mn tons per

annum producing Ordinary Portland Cement (OPC), Sulfate-Resistant Cement (SRC), and Portland Pozzolana Cement (PPC). The company is planning to double its current capacity by

2018. On the upside, the company has the second largest market share (10% as of 2014) in the Western region and if planned expansions go ahead will increase its market share to

11.9%, thus becoming the leader in the Western region. The company operates in the region with the largest share of planned projects (39%) worth USD179bn. The company has a

wholly-owned subsidiary in Bahrain and a majority owned subsidiary in Jordan (87%), improving its market reach. On the downside, the company has announced that Aramco will not

supply it with the needed energy for its current expansions and instead the company will be self-sufficient. However, the KSA government has not announced any initiatives or passed

any laws that allow the use of alternative sources of energy. Also, removal of energy subsidies would severely affect margins, especially with the presence of a selling price cap. The

company operates at utilization rates nearing and sometimes exceeding 100%, which leaves no room for growth if expansion plans do not go through.

Arabian Pipes Company (2200.TDWL): Arabian Pipes was established on 1991 as a Saudi joint stock company with a 100% Saudi ownership as a specialized company in steel pipes

manufacturing with an SAR400mn capital and total investments of about SAR1.2bn. The company manufactures and markets welded steel pipes for oil and gas, structural and

commercial utilization, with sizes range from 6 to 48 inches. The company owns and operates two factories: the first plant in Riyadh with an average capacity of 160,000 tons per year

of ERW pipes, with sizes range from 6 to 20 inches; the second plant in Jubail Industrial City with an average capacity of 300,000 tons per year of LSAW pipes, with sizes range from 16

to 48 inches, to reach a total average capacity of 460,000 tons per year. The company is approved by most of the oil and gas companies in the region and exporting to Gulf countries,

Middle East and North Africa.

Bawan Holding Company “Bawan” (1302.TDWL): Bawan is one of the leading industrial groups in Saudi Arabia and was formed by the merger of Abdulkader Al-Muhaidib & Sons

General Trading Co. and Abdullatif & Mohammad Al Fozan Co. Bawan has interests in the manufacturing of reinforced steel bars, wood, concrete, switchgear, generators and

packaging products, in addition to providing engineering consultancy services. Among its subsidiaries are Bawan Engineering Industries (100%), Inma Pallets Company (100%), Bawan

Metal Industries (c. 95%), Bawan Wood Industries (c. 95%), and United Transformers Electric Company (c. 85%). Major shareholders are Abdulkader Al Muhaidib & Sons Co.

(c.26%), Al Fozan Holding Group (c.26%) and Maaaly Holding (c.9%). On 17 September 2015, Bawan received an approval to increase its capital from SAR500mn to SAR600mn through

one-to-five bonus share distribution. Bawan began operations in 1980 and was listed on Tadawul in 2013.

Basic Chemical Industries Co. “BCI” (1210.TDWL): BCI is one of the largest privately-owned chemical companies in Saudi Arabia. BCI manufactures hydrochloric acid, caustic soda,

chlorine gas, sodium hypochlorite and ferric chloride. Through its main subsidiaries, BCI manufactures polyurethane chemicals, water treatment chemicals, adhesives, sulfuric and

battery acid. The BCI group of companies is comprised of: Saudi Water Treatment Co., Chemical Marketing & Distribution Co., Huntsman APC Ltd., National Adhesives Ltd., and

Basic Chemicals National Co. The company's headquarters, manufacturing plants, and main storage facilities are located on its own 200,000 sqm site besides Dammam's First

Industrial City. Major shareholders include the Tamimi Group (c. 22.05%), Mr. Abdullah Al Moaibed (c. 9.25%), and Ms. Noor Al Moaibed (c. 5.09%). BCI was established in 1973 and

listed on Tadawul in 2008.







Bupa Arabia for Cooperative Insurance “Bupa” (8210.TDWL): Bupa, established in May 2008, is a Jeddah, Saudi Arabia based public company that operates within the insurance

sector focusing on personal and corporate health insurance. It runs care homes for older people and hospitals by providing total healthcare solutions to more than 22mn members in

190 countries across the globe. The major shareholder is BUPA Investments Overseas Co. which owns a 26.25% stake. Bupa was listed on Tadawul since its inception in May.

Hail Cement (3001.TDWL): Hail Cement has been operating since mid-2013 in the Northern region with a current capacity of 1.7mn tons per annum producing Ordinary Portland

Cement (OPC) and Sulfate-Resistant Cement (SRC). The company is planning to double its current capacity by mid-2017. On the upside, the company’s plants are the newest in the

Northern region and hence are operationally more efficient. The company has succeeded in a short time in establishing a client base in the central region. Demand will be supported

by the construction of the Prince Abdulaziz bin Musaid Economic City worth USD20bn. On the downside, there are no expansions plans. With additional capacities entering the

region, the company will lose part of its market share (2.9%). Other risks include: slow demand in the Northern region which has the least market share in the kingdom (9% as of 2014)

and has the second lowest share of planned projects (4.2% worth USD20bn). Removal of energy subsidies would severely affect margins, especially with the presence of a selling price

cap. Another risk is political instability across the border in Iraq.

Middle East Paper Co. “MEPCO” (1202.TDWL): MEPCO operates in the industrial sector focusing on paper packaging with a capacity of 500,000 tons of paper products per year. The

company manufactures paper products including satrating kraft, testliner, fluting, craft, cardboard, semi chemical fluting, came liner, plaster board, core board and paper boards.

MEPCO started operating its Hydrapulper on 29 September 2015 which had an investment cost of SAR63.6mn. MEPCO has two subsidiaries: Waste Collection and Recycling (c.97%

stake) and Specialized Achievements Co. (c.97% stake). Major shareholders are Abdulkader Al Muhaidib & Sons (c. 23% stake) and Lefana Holding (c. 23% stake). MEPCO was

established in 2001 and listed on Tadawul in May 2015.

Middle East Specialized Cables “MESC” (2370.TDWL): MESC was established in 1992, working in the building and construction sector by focusing on electrical components and

equipment. The company provides different electrical components and equipment; instrumentation & control cables, high voltage cables, medium voltage cables, low voltage cables,

fire survival-performance cables, wires, PVC plant and sheathed cables with high level of quality accordance with the guidelines of ISO 9001:2008, ISO14001:2004 and

OHSAS18001:2007. MESC has three subsidiaries operating across Jordan and the UAE; Middle East Specialized Cables - UAE (c.100% stake), MESC for Medium & High Voltage Cables

Co. (c.57.5% stake), and Middle East Specialized Cables - Jordan (c.49% stake). The company was listed on Tadawul in December 2007.

National Gypsum Co. “NGC” (2090.TDWL): NGC is a Saudi-based company that operates in the building materials sector. The company manufactures gypsum plaster, gypsum spray,

gypsum powder, plaster and laminated gypsum boards. NGC has a production capacity of 900,000 tons of gypsum powder per year, 450,000 tons of gypsum plaster per year, and

24mn sqm of gypsum boards per year. The company has five plants in Riyadh, three plants in Yanbu, and three plants in Dammam. NCG has a 33.34% stake in Qatar-based Qatar Saudi

Gypsum Industries Company in addition to a 6% stake in Al-Kayan Petrochemical Company (not to be confused with the listed Saudi Kayan Petrochemical Company). NGC’s major

shareholder is Mr. Thonayan Bin Fahed Al Thonayan (c. 10.31%). NGC began operations in 1959 and was listed on Tadawul in 1993.

Red Sea Housing Services (4230.TDWL): Red Sea provides housing solutions in remote areas for local and international clients in the mining, oil & gas, manufacturing and industrial

sectors, which include rental of properties and sale of housing units using products manufactured in its facilities. The manufacturing facilities are located in Jubail, Saudi Arabia (52%

of 2014 revenues), Jebel Ali, Dubai (29% of 2014 revenues), and in Accra, Ghana. The company also has a facility in Libya, which has not commenced yet, and is currently in the

process of constructing a facility in King Abdullah Economic City in Saudi Arabia. The operating facilities have a total capacity of 770,000 sqm per year. In 2014, the company posted

2.6% YoY higher earnings of SAR157mn on 13.7% YoY higher revenues of SAR1.1bn. However, earnings declined in 9M 2015 by 61.5% YoY due to lower revenues and gross margin,

driven by pricing pressure, and higher expenses.







Saudi Advanced Industries Company “SAIC” (2120.TDWL): SAIC is an industrial investment vehicle of the US Peace Shield defense offset program. Established in 1987, SAIC invests in

technology companies in Saudi Arabia through focusing on the transfer of advanced industrial technology to the kingdom by participating in economic equilibrium programs and

other industrial projects. The company has investments in the following national companies: Al Salam Aircraft (10%), Aircraft, Gulf Salt Manufacturing Co. (4%), Arab Synthetic

Fibbers Co. (under formation, 1.5%). SAIC was listed on Tadawul in May 1993.

Saudi Arabian Refinery Co. “SARCO” (2030.TDWL): SARCO was established in 1960 to operate within the energy sector focusing on oil and gas refining and marketing. The company is

engaged in different petroleum activities, water projects, land reforms, utilities, transport and all industrial business and commercial projects that serve in the same scope. SARCO was

listed on Tadawul in 1993.

Saudi Cable Company Group (2110.TDWL): Founded in 1975, Saudi Cable enjoys a track record of providing total system solutions in energy and telecommunications for over three

decades. The company offers an entire spectrum of services, from design and engineering to manufacturing, installation, testing and commissioning. The company adheres to global

standards in power (400 kV underground & 500 kV overhead) and telecom networks (288 fiber & 3600 pairs metallic). The company has ten strategically-located manufacturing

units in three countries and the supplementary services offered by the SCC Group. The SCC Group is a non-governmental stock company whose shares are publicly traded on Tadawul.

Saudi Company for Hardware ‘’Saco’’ (4008.TDWL): Saco is a public company, listed on Tadawul since May 2015. Saco operates within the retail sector focusing on specialty stores.

Saco is based in Riyadh, Saudi Arabia and was established in January 1985. The company reported positive results in Q3 2015, where net income increased by 11. 5% YoY to

SAR18.5mn, driven mainly by sales of its newly-opened store in 2015 and the increase in sales of all divisions. SACO has opened a new store in Jazan, bringing the total number of its

stores to 25 in Saudi Arabia. Meanwhile, the company recently signed a memorandum of understanding (MoU) in October to acquire Medscan Terminal, which is specialized in

transporting goods, logistics and warehousing, which we believe will create cost synergies for the company and enhance its margins.

Saudi Enaya Cooperative Insurance “Enaya” (8311.TDWL): Enaya is a public company, listed on Tadawul in February 2012. Enaya operates within the insurance sector providing all

types of cooperative health insurance and its related activities, including reinsurance, agencies or representation, correspondence, mediation. It also has a wide range of products,

offering different types of coverage for corporate and individual clients, inside and outside Saudi Arabia. It also customizes health insurance to suit the different needs of its clients.

Enaya is based in Jeddah, Saudi Arabia and was established in February 2012. Enaya is in partnership with Munich Re, one of the largest and most reputable financial service providers

in the world, which owns 15% of Enaya.

Solidarity Saudi Takaful “Solidarity” (8290.TDWL): Solidarity is a public company, listed on Tadawul in June 2010. Solidarity operates within the insurance sector via focusing on

multi-line insurance. The company provides various insurance products include general accidents and liability insurance products. It also offers engineering insurance products, as well

as travel, home, and medical malpractice insurance products. Solidarity is based in Riyadh, Saudi Arabia with main regional customer branches operating in Riyadh, Jeddah and

Khobar. Solidarity has one subsidiary operating across Saudi Arabia.

Tabuk Cement (3090.TDWL): Tabuk Cement has been operating since mid-1994 in the Western region with a current capacity of 3mn tons per annum but with an operating capacity

of 1.6mn tons per annum producing Ordinary Portland Cement (OPC), Sulfate-Resistant Cement (SRC), and Portland Pozzolana Cement (PPC). The company is planning to double its

current capacity by 2016. On the upside, the company serves the Western region (27% of Saudi Arabia’s cement market share) which has a project pipeline of USD179bn (38% of

planned projects in the kingdom). Close proximity to the Red Sea port of Dabaa is an advantage once the export ban is removed. Currently, the company has two production lines with

a combined capacity of 3mn tons per annum. One of the production lines (1.4mn tons per annum) is currently idle as there is no energy supply. Once the government allows the use

of alternative energy sources, the idle capacity could enter the market capturing more market share. On the downside, the company operates at utilization rates nearing and

sometimes exceeding 100% which leaves no room for growth if idle capacities do not operate. Removal of energy subsidies would severely affect margins, especially with the presence

of a selling price cap. The company has the least market share in its region (2.5%) and with the entry of new players in that region its market position will be threatened.







Tihama Advertising & Public Relations (4070.TDWL): Tihama is a public company, listed on Tadawul since January 1993. Tihama operates within the media sector focusing on

advertising. It has 13 subsidiaries operating across Saudi Arabia, the UAE, United Kingdom and Bahrain. Tihama signed in June an MoU with Saudi Radio & Television Corp. (SRTC) for

offering some advertising and marketing services to support the financial sources as well as advertising and marketing activities. Meanwhile, Tihama Global, a subsidiary of Tihama

signed in Dubai another MoU with the creative company Think Big, a subsidiary of the European marketing group Zen. The MoU is focused on cooperation in the areas of digital

creativity in the field of marketing and public relations. However, the company posted an 854% surge in losses to SAR29mn in Q2 2015/2016, compared to SAR3.1mn in Q2 2014/2015,

mainly due to charging the quarter with c.SAR11mn worth of rents for previous financial periods, after the Court of Appeal in Dammam obliged the company to pay SAR13.918mn to

the General Authority for King Fahd.

United Electronics “Extra” (4003.TDWL): Extra was established in January 2003, originally based in Khobar, operating in the computer and electronics retail sector through four

subsidiaries in Saudi Arabia, Bahrain and Oman. Extra had showed poor results in Q3 2015, where it posted 59% YoY lower earnings to SAR12.2mn, missing consensus by 73%, on 11%

lower sales. Accordingly, the BoD recommended freezing dividends to finance its strategic expansions. The company’s margins were pressured by growing competition especially in

electronics and mobile phones, the market which has no barrier to entry. On a positive note, Extra opened its second showroom in Muscat, Oman bringing its total stores to 40 across

the GCC. In a step to diversify its operations, Extra has recently signed an MoU with Mohammed Youssef Al-Saqr & Partners to acquire a 51% stake in its fashion retail subsidiary,

International Provinces Co., to capitalize on its major brands, including DKNY, Kenzo, and Max.

Wataniya Insurance “Wataniya” (8300.TDWL): Wataniya is a public company based in Jeddah, Saudi Arabia and was established in May 2010. It operates within the insurance sector

providing different types of insurance services, including fire insurance, property insurance, engineering insurance, accident insurance, liability insurance, vehicle insurance, marine

insurance, aviation insurance, energy insurance, as well as the benefits of collective insurance. It has one subsidiary operating across Saudi Arabia, working on property and casualty

insurance. The company is rated ‘BBB’ by Standard and Poor's. The major shareholders are Saudi National Insurance Co. (28% stake) and Saudi Hollandi Bank (20% stake). Wataniya

Insurance was listed on Tadawul in June 2010.







UNITED ARAB EMIRATES

Amlak Finance (AMLAK.DFM): Established in 2000, Amlak Finance was the first specialized home finance provider in the UAE. Amlak is an Islamic finance company operating under

the principles of Shari’a Law. The company resumed trading on DFM in June 2015 after more than six years of suspension on the back of falling real estate prices post the global

financial crisis. Upon resuming trading, the company said it has expansion plans in both Egypt and Saudi Arabia real estate markets to seize growth opportunities. Recently, the

company signed an agreement with DAMAC to provide real estate mortgages for clients interested in buying properties that have not been finished in Dubai. For 9M 2015 ended 30

September, the company’s profits declined 15% YoY on the back of lower financing income and recognized amortization charges.

Etisalat Group (ETISALAT.ADX): Etisalat Group is a well-diversified telecom group with international presence in numerous markets, offering a wide range of telecommunication

services including mobile, fixed land in broadband. In June 2015, the UAE Federal Government decided to lift the restriction on the stock and allow foreigners to own up to 20% of the

company. Etisalat benefits from (1) Vast affluent population in the UAE that tends to be tech-savvy, (2) High purchasing power indicated by high per-capita income, (3) government

support (60% stakes in the company), and (4) Outperforming du in terms of mobile and fixed subs as well as revenues. Downside risks include (1) Approaching mobile market

saturation will likely curb mobile subs growth, (2) Fixed-Mobile Substitution (FMS) depresses fixed-line growth rates, (3) Future competition in the fixed-line market as a result of the

infrastructure sharing agreement, and (4) High percentage of royalty on revenues and earnings significantly cut profitability of Etisalat UAE.

Shuaa Capital (SHUAA.DFM): Established in 1979, Shuaa Capital is a UAE-based publicly-listed financial services firm offering a broad range of asset management, corporate finance

advisory, and capital markets. In addition, the company offers credit services, including lending to regional SMEs through its fully-owned subsidiaries Gulf Finance Corporation in the

UAE and Gulf Finance Corporation in Saudi Arabia. The firm serves more than 500 active clients, including corporations, financial institutions, GREs, high net worth individuals and

family businesses. Shuaa Capital is headquartered in Dubai, the UAE with offices in Abu Dhabi, Riyadh, and Jeddah. The firm has been listed on DFM since 2000.






MSCI MENA Stocks | Price Performance

Ticker Company Country Sector Market Cap ADTV6M Curr. Last Price BetaConsensus

Target Price

Up/(down)side

Potential

Consensus

Rating

(USD mn) (USD mn) (LC) YoY YTD High Low (LC) +/-

Price Change (%) 52-Week Price Levels

AUB.BB Ahli United Bank Bahrain Financials 4,500 0.8 USD 0.70 (8.7) (8.7) 1.0 0.80 0.69 0.90 28.6% BUY

SALAM.BB Al-Salam Bank Bahrain Financials 585 0.1 BHD 0.10 (41.1) (21.4) 2.2 0.19 0.10 na na na

GFH.BB Gulf Finance House Bahrain Financials 372 0.0 USD na na na na 0.23 0.15 na na na

ITHMR.BB Ithmaar Bank Bahrain Financials 1,206 0.1 BHD 0.15 (14.3) (6.2) 1.0 0.18 0.12 na na na

NASS.BB Nass Corp Bahrain Industrials, Energy & Utilities 83 0.0 BHD 0.14 (19.8) (17.4) 0.6 0.19 0.14 na na na

JTEL.ASE Jordan Telecommunications Jordan Telecom Services & IT 780 0.0 JOD 2.21 (30.5) (37.0) 1.1 3.52 2.00 na na na

MEZZAN`R.KSE Mezzan Holding Kuwait Consumer Staples 1,073 2.1 KWD 1,100.00 na na na 1,220.00 740.00 1,126.20 2.4% HOLD

ALQURAIN.KSE Al-Qurain Petrochemicals Kuwait Materials 680 0.1 KWD 188.00 (16.1) (6.9) 0.9 224.00 174.00 na na na

IKARUS.KSE Ikarus Petroleum Industries Kuwait Materials 264 0.1 KWD 102.00 (38.6) (31.1) 1.3 168.00 93.00 na na na

KRE.KSE Kuwait Real Estate Kuwait Real Estate 188 0.2 KWD 63.00 (20.3) (11.3) 1.7 78.00 58.00 na na na

TAM.KSE Tamdeen Real Estate Kuwait Real Estate 690 0.1 KWD 510.00 15.2 17.7 na 520.00 400.00 na na na

CSR.CSE Cosumar Morocco Consumer & Health Care 721 0.5 MAD 171.00 (0.0) 9.4 0.8 192.90 153.20 235.75 37.9% BUY

RIS.CSE RISMA Morocco Consumer & Health Care 124 0.1 MAD 155.00 (48.0) (45.8) 0.8 280.00 137.00 na na na

TMA.CSE Total Maroc Morocco Energy 519 0.4 MAD 576.00 na na na 638.00 531.20 567.00 -1.6% HOLD

LYD.CSE Lydec Morocco Industrials, Energy & Utilities 342 0.0 MAD 425.00 8.4 13.0 0.8 448.50 354.00 443.67 4.4% HOLD

SMI.CSE Societe Metallurgique D'imiter Morocco Materials 455 0.1 MAD 2,750.00 (22.8) (11.3) 1.0 3,560.00 2,371.00 2,401.33 -12.7% HOLD

PHPC.MSM Phoenix Power Oman Energy 574 1.9 OMR 0.15 na na na 0.16 0.11 na na na

BKDB.MSM Bank Dhofar Oman Financials 963 0.1 OMR 0.24 (22.9) (22.0) 0.9 0.32 0.23 0.34 43.3% HOLD

OOMS.MSM Oman Oil Marketing Oman Industrials, Energy & Utilities 320 0.1 OMR 2.00 (10.9) (10.7) 0.3 2.25 2.00 na na na

RNSS.MSM Renaissance Services Oman Industrials, Energy & Utilities 118 0.3 OMR 0.16 (73.2) (66.0) 1.3 0.61 0.16 0.21 30.4% BUY

SMNP.MSM SMN Power Holding Oman Industrials, Energy & Utilities 384 0.8 OMR 0.74 15.6 12.1 0.5 0.76 0.62 na na na

MCGS.QE Medicare Group Qatar Consumer & Health Care 1,083 0.9 QAR 140.10 10.8 19.7 1.2 204.00 88.10 na na na

KCBK.QE Al Khalij Commercial Bank Qatar Financials 1,983 0.3 QAR 20.05 (8.9) (9.1) 0.7 22.86 19.51 na na na

GISS.QE Gulf International Services Qatar Industrials, Energy & Utilities 2,951 6.5 QAR 57.80 (53.8) (40.5) 1.2 125.00 53.60 88.20 52.6% BUY

QGTS.QE Qatar Gas Transport Qatar Industrials, Energy & Utilities 3,761 2.3 QAR 24.45 (0.4) 5.8 0.8 25.30 19.31 25.35 3.7% BUY

AUB.BB Ahli United Bank Bahrain Financials 4,500 0.8 USD 0.70 (8.7) (8.7) 1.0 0.80 0.69 0.90 28.6% BUY

SALAM.BB Al-Salam Bank Bahrain Financials 585 0.1 BHD 0.10 (41.1) (21.4) 2.2 0.19 0.10 na na na

GFH.BB Gulf Finance House Bahrain Financials 372 0.0 USD na na na na 0.23 0.15 na na na

ITHMR.BB Ithmaar Bank Bahrain Financials 1,206 0.1 BHD 0.15 (14.3) (6.2) 1.0 0.18 0.12 na na na

NASS.BB Nass Corp Bahrain Industrials, Energy & Utilities 83 0.0 BHD 0.14 (19.8) (17.4) 0.6 0.19 0.14 na na na

JTEL.ASE Jordan Telecommunications Jordan Telecom Services & IT 780 0.0 JOD 2.21 (30.5) (37.0) 1.1 3.52 2.00 na na na

MEZZAN`R.KSE Mezzan Holding Kuwait Consumer Staples 1,073 2.1 KWD 1,100.00 na na na 1,220.00 740.00 1,126.20 2.4% HOLD

ALQURAIN.KSE Al-Qurain Petrochemicals Kuwait Materials 680 0.1 KWD 188.00 (16.1) (6.9) 0.9 224.00 174.00 na na na

IKARUS.KSE Ikarus Petroleum Industries Kuwait Materials 264 0.1 KWD 102.00 (38.6) (31.1) 1.3 168.00 93.00 na na na

KRE.KSE Kuwait Real Estate Kuwait Real Estate 188 0.2 KWD 63.00 (20.3) (11.3) 1.7 78.00 58.00 na na na

TAM.KSE Tamdeen Real Estate Kuwait Real Estate 690 0.1 KWD 510.00 15.2 17.7 na 520.00 400.00 na na na

CSR.CSE Cosumar Morocco Consumer & Health Care 721 0.5 MAD 171.00 (0.0) 9.4 0.8 192.90 153.20 235.75 37.9% BUY

RIS.CSE RISMA Morocco Consumer & Health Care 124 0.1 MAD 155.00 (48.0) (45.8) 0.8 280.00 137.00 na na na

TMA.CSE Total Maroc Morocco Energy 519 0.4 MAD 576.00 na na na 638.00 531.20 567.00 -1.6% HOLD

LYD.CSE Lydec Morocco Industrials, Energy & Utilities 342 0.0 MAD 425.00 8.4 13.0 0.8 448.50 354.00 443.67 4.4% HOLD

SMI.CSE Societe Metallurgique D'imiter Morocco Materials 455 0.1 MAD 2,750.00 (22.8) (11.3) 1.0 3,560.00 2,371.00 2,401.33 -12.7% HOLD

PHPC.MSM Phoenix Power Oman Energy 574 1.9 OMR 0.15 na na na 0.16 0.11 na na na

BKDB.MSM Bank Dhofar Oman Financials 963 0.1 OMR 0.24 (22.9) (22.0) 0.9 0.32 0.23 0.34 43.3% HOLD

OOMS.MSM Oman Oil Marketing Oman Industrials, Energy & Utilities 320 0.1 OMR 2.00 (10.9) (10.7) 0.3 2.25 2.00 na na na

RNSS.MSM Renaissance Services Oman Industrials, Energy & Utilities 118 0.3 OMR 0.16 (73.2) (66.0) 1.3 0.61 0.16 0.21 30.4% BUY

SMNP.MSM SMN Power Holding Oman Industrials, Energy & Utilities 384 0.8 OMR 0.74 15.6 12.1 0.5 0.76 0.62 na na na

MCGS.QE Medicare Group Qatar Consumer & Health Care 1,083 0.9 QAR 140.10 10.8 19.7 1.2 204.00 88.10 na na na

KCBK.QE Al Khalij Commercial Bank Qatar Financials 1,983 0.3 QAR 20.05 (8.9) (9.1) 0.7 22.86 19.51 na na na

GISS.QE Gulf International Services Qatar Industrials, Energy & Utilities 2,951 6.5 QAR 57.80 (53.8) (40.5) 1.2 125.00 53.60 88.20 52.6% BUY

QGTS.QE Qatar Gas Transport Qatar Industrials, Energy & Utilities 3,761 2.3 QAR 24.45 (0.4) 5.8 0.8 25.30 19.31 25.35 3.7% BUY

AMOC.EGX Alexandria Mineral Oils Egypt Energy 319 0.2 EGP 29.01 (58.3) (52.5) 0.7 71.50 28.45 na na na

Source: Bloomberg, Last price as of 12 November 2015






MSCI MENA Stocks | Price Performance (Cont.’d)

Ticker Company Country Sector Market Cap ADTV6M Curr. Last Price BetaConsensus

Target Price

Up/(down)side

Potential

Consensus

Rating

(USD mn) (USD mn) (LC) YoY YTD High Low (LC) +/-

Price Change (%) 52-Week Price Levels

4008.TDWL Saudi Co For Hardware Saudi Arabia Consumer & Health Care 639 12.3 SAR 99.86 na na na 148.25 77.00 138.33 38.5% BUY

4070.TDWL Tihama Saudi Arabia Consumer & Health Care 127 11.4 SAR 31.63 (67.1) (65.1) 0.5 131.25 29.90 na na na

4003.TDWL United Electronics Saudi Arabia Consumer & Health Care 451 6.7 SAR 46.96 (46.3) (30.0) 0.9 94.17 43.50 63.66 35.6% HOLD

8210.TDWL Bupa Arabia Saudi Arabia Financials 2,399 5.1 SAR 224.90 34.9 33.1 1.1 280.00 136.50 331.50 47.4% BUY

2120.TDWL Saudi Advanced Industries Saudi Arabia Financials 182 3.1 SAR 13.66 (36.8) (17.6) 1.2 22.98 12.15 na na na

8311.TDWL Saudi Enaya Cooperative Saudi Arabia Financials 173 3.0 SAR 16.24 (54.1) (37.4) 1.1 39.00 15.20 na na na

8290.TDWL Solidarity Saudi Takaful Saudi Arabia Financials 123 3.6 SAR 8.31 (63.9) (58.2) 1.1 28.30 7.90 na na na

8300.TDWL Wataniya Insurance Saudi Arabia Financials 175 2.5 SAR 65.65 (18.6) 3.9 1.1 111.00 46.40 na na na

2200.TDWL Arabian Pipes Saudi Arabia Industrials, Energy & Utilities 149 3.7 SAR 14.00 (48.3) (27.1) 1.0 27.10 12.80 16.00 14.3% SELL

2370.TDWL Middle East Specialized Cables Saudi Arabia Industrials, Energy & Utilities 157 3.4 SAR 9.79 (55.7) (55.3) 1.0 26.90 8.80 na na na

2030.TDWL Saudi Arabia Refineries Saudi Arabia Industrials, Energy & Utilities 175 3.9 SAR 43.67 (39.7) (11.6) 1.1 74.50 37.80 na na na

2110.TDWL Saudi Cable Saudi Arabia Industrials, Energy & Utilities 171 2.9 SAR 8.43 (25.4) (8.9) 1.0 11.70 6.90 na na na

3091.TDWL Al Jouf Cement Saudi Arabia Materials 404 8.4 SAR 11.64 (47.0) (17.2) 1.2 22.10 11.40 13.50 16.0% HOLD

3010.TDWL Arabian Cement Saudi Arabia Materials 1,317 5.1 SAR 49.37 (41.9) (36.4) 0.7 84.75 47.00 82.72 67.6% BUY

1210.TDWL Basic Chemical Industries Saudi Arabia Materials 167 1.9 SAR 22.80 (40.9) (23.2) 1.1 40.20 20.24 na na na

1302.TDWL Bawan Saudi Arabia Materials 429 7.1 SAR 26.80 (52.9) (32.3) 1.2 57.29 24.17 na na na

3001.TDWL Hail Cement Saudi Arabia Materials 404 2.2 SAR 15.46 (41.8) (32.2) 1.0 27.30 14.95 20.45 32.3% BUY

1202.TDWL Middle East Paper Saudi Arabia Materials 365 13.4 SAR 27.39 na na na 51.25 25.80 na na na

2090.TDWL National Gypsum Saudi Arabia Materials 147 3.6 SAR 17.42 (48.9) (25.5) 1.1 34.10 15.75 na na na

3090.TDWL Tabuk Cement Saudi Arabia Materials 407 0.5 SAR 16.95 (39.8) (31.7) 0.8 28.10 16.15 20.50 20.9% HOLD

4230.TDWL Red Sea Housing Services Saudi Arabia Real Estate 368 2.3 SAR 23.00 (56.7) (36.4) 1.2 53.25 20.70 34.00 47.8% HOLD

STB.TNTSE Ste Tunisienne De Banque Tunisia Financials 416 0.0 TND 5.40 44.2 35.5 1.1 6.67 3.30 na na na

AMLAK.DFM Amlak Finance UAE Financials 604 32.8 AED 1.48 na na na 2.92 0.75 0.30 -79.7% SELL

SHUAA.DFM SHUAA Capital UAE Financials 136 0.3 AED 0.47 (49.4) (28.8) 1.2 0.97 0.41 0.70 50.0% BUY

ETISALAT.ADX Emirates Telecommunications UAE Telecom Services & IT 36,574 11.5 AED 15.45 47.8 55.2 0.7 15.85 9.41 15.60 1.0% BUY

Total / Average 71,378 168 21.8%

Last Price As of 12/11/2015


DU.DFM du UAE Telecom Services & IT 6,262 0.6 AED 5.00 (3.8) 1.1 0.7 5.51 3.88 5.90 18% HOLD






MSCI MENA Stocks | Valuation & Multiples

Ticker Company Country Sector

Net Inc.

3-Yr

CAGR

2013 2014 2015 2013 2014 2015 2013 2014 2015 2013 2014 2015 2013 2014 2015

2013-

2016

Div. Yield (%)PER EV/EBITDA PBV ROE

AUB.BB Ahli United Bank Bahrain Financials 6.9x 9.2x 10.0x na na na 1.3x 1.3x na 20% 17% na 6% 5% 6% na

SALAM.BB Al-Salam Bank Bahrain Financials 16.9x na na na na na 0.9x na na 6% na na 4% na na na

GFH.BB Gulf Finance House Bahrain Financials na na na 53.7x na na 1.1x na na -4% na na 0% na na na

ITHMR.BB Ithmaar Bank Bahrain Financials na 5.6x 5.6x na na na 1.3x 0.3x na -14% na na 0% na na na

NASS.BB Nass Corp Bahrain Industrials, Energy & Utilities 8.4x na na 2.9x na na 0.6x na na 7% na na 9% na na na

JTEL.ASE Jordan Telecommunications Jordan Telecom Services & IT 20.1x na na 7.2x na na 2.8x na na 14% na na 5% na na na

MEZZAN`R.KSE Mezzan Holding Kuwait Consumer Staples na na 16.9x na na 14.1x na na 3.3x 15% na 22% na na 2% 31%

ALQURAIN.KSE Al-Qurain Petrochemicals Kuwait Materials 9.7x na na na na na 0.8x na na na na na 5% na na na

IKARUS.KSE Ikarus Petroleum Industries Kuwait Materials 11.1x na na na na na 0.7x na na 7% na na 6% na na na

KRE.KSE Kuwait Real Estate Kuwait Real Estate 13.1x na na 22.3x na na 0.7x na na 6% na na na na na na

TAM.KSE Tamdeen Real Estate Kuwait Real Estate 17.1x na na 20.2x na na 0.7x na na 4% na na 4% na na na

CSR.CSE Cosumar Morocco Consumer & Health Care 12.8x 10.9x 9.3x 7.9x 6.0x 5.2x 2.3x 1.9x 1.7x 18% 17% 19% 0% 6% 7% 10%

RIS.CSE RISMA Morocco Consumer & Health Care na 24.2x 42.5x 10.2x 7.1x na 1.7x na na -5% 6% na 0% 2% na na

TMA.CSE Total Maroc Morocco Energy na na 17.3x na na 10.4x na na 5.7x 35% na 33% na na 6% 3%

LYD.CSE Lydec Morocco Industrials, Energy & Utilities 8.9x na 12.0x 3.1x na 4.1x 1.6x na 1.8x 18% na 15% na na 6% 1%

SMI.CSE Societe Metallurgique D'imiter Morocco Materials 11.5x 16.6x 22.8x 9.2x 9.1x 11.5x 3.6x 2.8x 3.3x 35% 17% 11% 0% 7% 5% 564%

PHPC.MSM Phoenix Power Oman Energy na na na na na na na na na na na na na na na na

BKDB.MSM Bank Dhofar Oman Financials 7.5x 9.2x 9.6x na na na 1.4x na na 21% 14% 14% 4% na 4% -4%

OOMS.MSM Oman Oil Marketing Oman Industrials, Energy & Utilities 13.6x na na 10.4x na na 3.1x na na 24% na na 3% na na na

RNSS.MSM Renaissance Services Oman Industrials, Energy & Utilities 24.2x 2.9x na 11.4x 5.4x 6.5x 1.2x 0.2x 0.3x 7% 9% -4% 0% 3% na -29%

SMNP.MSM SMN Power Holding Oman Industrials, Energy & Utilities 13.9x na na 11.0x na na 8.9x na na 128% na na na na na na

MCGS.QE Medicare Group Qatar Consumer & Health Care 16.5x na na 12.8x na na 1.8x na na 11% na na 6% na na na

KCBK.QE Al Khalij Commercial Bank Qatar Financials 13.1x 12.9x 12.6x na na na 1.3x 1.3x 1.1x 10% 10% na 5% 4% 5% 11%

GISS.QE Gulf International Services Qatar Industrials, Energy & Utilities 13.4x 9.6x 8.4x 17.4x 10.5x 8.7x 2.9x 3.0x 2.5x 24% 34% 28% 3% 7% 9% 26%

QGTS.QE Qatar Gas Transport Qatar Industrials, Energy & Utilities 15.3x 15.8x 13.6x 14.0x 13.0x 11.4x 2.6x na 3.0x 24% 20% 25% 5% 5% 5% 17%

AUB.BB Ahli United Bank Bahrain Financials 6.9x 9.2x 10.0x na na na 1.3x 1.3x na 20% 17% na 6% 5% 6% na

SALAM.BB Al-Salam Bank Bahrain Financials 16.9x na na na na na 0.9x na na 6% na na 4% na na na

GFH.BB Gulf Finance House Bahrain Financials na na na 53.7x na na 1.1x na na -4% na na 0% na na na

ITHMR.BB Ithmaar Bank Bahrain Financials na 5.6x 5.6x na na na 1.3x 0.3x na -14% na na 0% na na na

NASS.BB Nass Corp Bahrain Industrials, Energy & Utilities 8.4x na na 2.9x na na 0.6x na na 7% na na 9% na na na

JTEL.ASE Jordan Telecommunications Jordan Telecom Services & IT 20.1x na na 7.2x na na 2.8x na na 14% na na 5% na na na

MEZZAN`R.KSE Mezzan Holding Kuwait Consumer Staples na na 16.9x na na 14.1x na na 3.3x 15% na 22% na na 2% 31%

ALQURAIN.KSE Al-Qurain Petrochemicals Kuwait Materials 9.7x na na na na na 0.8x na na na na na 5% na na na

IKARUS.KSE Ikarus Petroleum Industries Kuwait Materials 11.1x na na na na na 0.7x na na 7% na na 6% na na na

KRE.KSE Kuwait Real Estate Kuwait Real Estate 13.1x na na 22.3x na na 0.7x na na 6% na na na na na na

TAM.KSE Tamdeen Real Estate Kuwait Real Estate 17.1x na na 20.2x na na 0.7x na na 4% na na 4% na na na

CSR.CSE Cosumar Morocco Consumer & Health Care 12.8x 10.9x 9.3x 7.9x 6.0x 5.2x 2.3x 1.9x 1.7x 18% 17% 19% 0% 6% 7% 10%

RIS.CSE RISMA Morocco Consumer & Health Care na 24.2x 42.5x 10.2x 7.1x na 1.7x na na -5% 6% na 0% 2% na na

TMA.CSE Total Maroc Morocco Energy na na 17.3x na na 10.4x na na 5.7x 35% na 33% na na 6% 3%

LYD.CSE Lydec Morocco Industrials, Energy & Utilities 8.9x na 12.0x 3.1x na 4.1x 1.6x na 1.8x 18% na 15% na na 6% 1%

SMI.CSE Societe Metallurgique D'imiter Morocco Materials 11.5x 16.6x 22.8x 9.2x 9.1x 11.5x 3.6x 2.8x 3.3x 35% 17% 11% 0% 7% 5% 564%

PHPC.MSM Phoenix Power Oman Energy na na na na na na na na na na na na na na na na

BKDB.MSM Bank Dhofar Oman Financials 7.5x 9.2x 9.6x na na na 1.4x na na 21% 14% 14% 4% na 4% -4%

OOMS.MSM Oman Oil Marketing Oman Industrials, Energy & Utilities 13.6x na na 10.4x na na 3.1x na na 24% na na 3% na na na

RNSS.MSM Renaissance Services Oman Industrials, Energy & Utilities 24.2x 2.9x na 11.4x 5.4x 6.5x 1.2x 0.2x 0.3x 7% 9% -4% 0% 3% na -29%

SMNP.MSM SMN Power Holding Oman Industrials, Energy & Utilities 13.9x na na 11.0x na na 8.9x na na 128% na na na na na na

MCGS.QE Medicare Group Qatar Consumer & Health Care 16.5x na na 12.8x na na 1.8x na na 11% na na 6% na na na

KCBK.QE Al Khalij Commercial Bank Qatar Financials 13.1x 12.9x 12.6x na na na 1.3x 1.3x 1.1x 10% 10% na 5% 4% 5% 11%

GISS.QE Gulf International Services Qatar Industrials, Energy & Utilities 13.4x 9.6x 8.4x 17.4x 10.5x 8.7x 2.9x 3.0x 2.5x 24% 34% 28% 3% 7% 9% 26%

QGTS.QE Qatar Gas Transport Qatar Industrials, Energy & Utilities 15.3x 15.8x 13.6x 14.0x 13.0x 11.4x 2.6x na 3.0x 24% 20% 25% 5% 5% 5% 17%

AMOC.EGX Alexandria Mineral Oils Egypt Energy 6.7x 3.4x 5.8x 3.8x 1.5x 3.1x 1.9x 1.0x 28% 11% 12.6% 10.3% na0.9x na 24.1%







MSCI MENA Stocks | Valuation & Multiples (Cont.’d)


Ticker Company Country Sector

Net Inc.

3-Yr

CAGR

2013 2014 2015 2013 2014 2015 2013 2014 2015 2013 2014 2015 2013 2014 2015

2013-

2016

Div. Yield (%)PER EV/EBITDA PBV ROE

4008.TDWL Saudi Co For Hardware Saudi Arabia Consumer & Health Care na na 18.4x na na 14.2x na na 5.1x 42% na 31% na na 3% 21%

4070.TDWL Tihama Saudi Arabia Consumer & Health Care 1,429.2x na na 4,666.0x na na 5.4x na na 0% na na na na na na

4003.TDWL United Electronics Saudi Arabia Consumer & Health Care 17.7x 10.2x 13.6x 14.1x 7.4x 9.9x 6.1x 3.0x 2.9x 35% 31% 24% 3% 6% 5% 0%

8210.TDWL Bupa Arabia Saudi Arabia Financials 12.6x 28.3x 17.9x 11.0x na na 2.3x 8.7x 5.9x 19% 36% 40% 1% 0% 0% 82%

2120.TDWL Saudi Advanced Industries Saudi Arabia Financials 31.9x na na 110.1x na na 0.9x na na 3% na na 0% na na na

8311.TDWL Saudi Enaya Cooperative Saudi Arabia Financials na na na na na na 5.4x na na na na na 0% na na na

8290.TDWL Solidarity Saudi Takaful Saudi Arabia Financials na na na na na na 4.2x na na -23% na na 0% na na na

8300.TDWL Wataniya Insurance Saudi Arabia Financials na na na 72.3x na na 15.0x na na -41% na na na na na na

2200.TDWL Arabian Pipes Saudi Arabia Industrials, Energy & Utilities 100.4x na na 89.6x na na 1.4x na na 1% 0% na na na na na

2370.TDWL Middle East Specialized Cables Saudi Arabia Industrials, Energy & Utilities 26.9x na na 12.4x na na 1.6x na na 8% na na na na na na

2030.TDWL Saudi Arabia Refineries Saudi Arabia Industrials, Energy & Utilities 55.8x na na 59.5x na na 1.5x na na 3% na na 1% na na na

2110.TDWL Saudi Cable Saudi Arabia Industrials, Energy & Utilities na na na na na na 1.4x na na -29% na na 0% na na na

3091.TDWL Al Jouf Cement Saudi Arabia Materials 43.8x 21.0x 29.8x 24.8x 19.0x na 1.7x 1.1x na 4% 6% 5% na na na 23%

3010.TDWL Arabian Cement Saudi Arabia Materials 26.8x 7.5x 8.3x 14.6x 5.5x 5.8x 1.8x 1.6x na 7% 19% 19% 5% 7% na 54%

1210.TDWL Basic Chemical Industries Saudi Arabia Materials 20.5x na na 8.1x na na 2.0x na na 10% na na 3% na na na

1302.TDWL Bawan Saudi Arabia Materials 18.9x 8.1x 8.9x 13.7x 8.2x na 4.5x 1.9x na 25% 24% na 3% 7% na 8%

3001.TDWL Hail Cement Saudi Arabia Materials 41.0x 9.4x 12.3x 19.5x 7.3x na 2.2x 1.4x na 5% 14% 14% 0% na na 52%

1202.TDWL Middle East Paper Saudi Arabia Materials na na na na na na na na na 18% na na na na na na

2090.TDWL National Gypsum Saudi Arabia Materials 54.0x na na 23.9x na na 2.0x na na 4% na na 3% na na na

3090.TDWL Tabuk Cement Saudi Arabia Materials 14.7x 9.1x 14.2x 10.6x 9.3x 11.8x 2.1x 1.3x na 15% 15% 9% 6% 11% na -2%

4230.TDWL Red Sea Housing Services Saudi Arabia Real Estate 14.3x 7.3x 14.7x 9.1x 5.5x 6.8x 2.4x 1.4x 1.4x 18% 18% 10% 3% 6% 4% -2%

STB.TNTSE Ste Tunisienne De Banque Tunisia Financials na na 11.0x na na na na na na na na na 0% na na na

AMLAK.DFM Amlak Finance UAE Financials na na 37.0x na na na na na 1.3x na na na na na na -12%

SHUAA.DFM SHUAA Capital UAE Financials 386.8x 11.8x 16.8x 57.1x 12.5x 11.9x 1.0x 0.4x 0.4x 0% 4% 4% 0% na na 15%

ETISALAT.ADX Emirates Telecommunications UAE Telecom Services & IT 13.0x 16.6x 15.9x 7.2x 6.4x 5.8x 2.3x 3.3x 2.7x 17% 20% 18% 6% 4% 5% 12%

Median 15.9x 9.9x 13.6x 13.7x 7.4x 9.9x 1.8x 1.4x 2.6x 10% 17% 18% 3% 6% 5% 11%

Last Price As of 12/11/2015

DU.DFM du UAE 15.5x 10.7x 11.4x 6.9x 4.1x 3.9x 4.3x 3.2x 27% 26% 4.7% 7.2% 0%3.3x 34% 7.0%Telecom Services & IT



Important Disclosures

METHODOLOGY: We strive to search for the best businesses that trade at the lowest valuation levels as measured by an issuer’s intrinsic value on a per-share basis. In doing so, we follow both top-down and bottom-up approaches. Under the top-down approach, we attempt to study the most important quantitative and qualitative factors that we believe can affect a security's value, includingmacroeconomic, sector-specific, and company-specific factors. Under the bottom-up approach, we focus on the analysis of individual stocks by running our proprietary scoring model, includingvaluation, financial performance, sentiment, trading, risk, and value creation.

COUNTRY MACRO RATINGS: We analyze the four main sectors of a country’s macroeconomics, then we assign , , and star for low risk, moderate risk, and high risk, respectively. We usedifferent weights for each economic sector: (a) Real Sector (35% weight), (b) Monetary Sector (15% weight), (c) Fiscal Sector (25% weight), and (d) External Sector (25% weight).

STOCK MARKET RATINGS: We compare our year-end price targets for the subject market index on a total-return basis versus our calculated required rate of return (RRR). Taking into account ourCountry Macro Rating, we set the “Neutral” borderline (below which is “Underweight”) as 20% of RRR for Country Macro Rating, 40% of RRR for Country Macro Rating, and 60% of RRR for Country Macro Rating. That said, our index price targets are based on the average of two models. Model (1): Estimated index levels based on consensus price targets of all index constituents. Stockswith no price targets are valued at market price. Model (2): Estimated index levels based on our expected re-pricing (whether re-rating, de-rating, or unchanged rating) of the forward price-earningsratio (PER) of each index in addition to consensus earnings growth for the forward year.

SECTOR RATINGS: On the sectors level, we focus on six major sectors, namely (1) Consumer and Health Care, (2) Financials, (3) Industrials, Energy, & Utilities, (4) Materials, (5) Real Estate, and (6)Telecom Services & IT. To assess each sector, we use the SWOT analysis to list the strengths, weaknesses, opportunities, and threats in each country. We then translate our qualitative SWOT analysisinto a quantitative model to evaluate all six sectors across countries. Each of the measures we used, although mostly subjective, is assigned a score as either +1 (high impact), 0 (medium impact), or -1(low impact). At a later stage, when assigning the final rating – Overweight, Neutral, or Underweight – for each sector in each country, we realize that sometimes it is unfair to assign equal weights forthe sub-sectors in each major sector assessed. Hence, some of the sub-sectors are given different weights for their significant profile in each country. Additionally, the final rating for each sector in eachspecific country is assigned based on a relative calculation comparing this sector to all other sectors in this country.

Low

(1)

Moderate

(2)

High

(3)

Buy

(B)Higher than RRR Higher than RRR Higher than RRR

Hold

(H)

Between RRR

and 20% of RRR

Between RRR

and 40% of RRR

Between RRR

and 60% of RRR

Sell

(S)

Lower than 20%

of RRR

Lower than 40%

of RRR

Lower than 60%

of RRR

Not Rated

(NR)

Not Covered

(NC)

We do not currently cover this stock or we are

restricted from coverage for regulatory reasons.

Inv

es

tme

nt

Ra

tin

g

Risk Rating

We have decided not to publish a rating on the

stock due to certain circumstances related to the

company (i.e. special situations).

If

Total Return

is …

Disclosure Appendix

SECURITY INVESTMENT RATINGS: We combine intrinsic value, relative valuation, and market sentiment into a singlerating. Our three-pronged methodology involves (1) discounted cash flows “DCF” valuation model(s), (2) relativevaluation metrics, and (3) overall sentiment. Whenever possible we attempt to apply all three aspects on the issuers orsecurities under review. In certain cases where we do not have our own financial and valuation models, we attempt toscan the market for other analysts’ value estimates and ratings (i.e. consensus view) on average. We compliment thiswith relative valuation and sentiment drivers, such as positive/neutral/negative news flows. For all issuers/securitiescovered, we have three investment ratings (Buy, Hold, or Sell), comparing the security’s expected total return (includingboth price performance and expected cash dividend) over a 12-month period versus its Required Rate of Return “RRR”as calculated using the Capital Asset Pricing Model “CAPM” and adjusted for the Risk Rating we attach to each security.Our price targets are subjective and are estimates of the analysts where the securities covered will trade within thenext 12 months. Price targets can be derived from earnings-based valuation models (e.g. Discounted Cash Flow “DCF”),asset-based valuation models (e.g. Net Asset Value “NAV”), relative valuation multiples (e.g. PER, PBV, EV/EBITDA, etc.),or a combination of them. In case we do not have our own valuation model, we use a weighted average of marketconsensus price targets and ratings. We review the investment ratings periodically or as the situation necessitates.

SECURITY RISK RATINGS: We assess the risk profile of each issuer/security covered and assign one of three risk ratings(High, Moderate, or Low). The risk rating is weighted to reflect different aspects specific to (1) the sector, (2) the issuer,(3) the security under review, and (4) volatility versus the market (as measure by beta) and versus the security’s averageannualized standard deviation. We review the risk ratings at least annually or as the situation necessitates.

Other DisclosuresMFS does not have any proprietary holding in any securities. Only as a nominee, MFS holds shares on behalf of itsclients through Omnibus accounts. MFS is not currently a market maker for any listed securities.

Analyst CertificationI (we), Ahmed Abd Elnaby, Strategist and Research Team, employed with Mubasher International, a company under the National Technology Group of Saudi Arabia being a shareholder of MubasherFinancial Services BSC (c) and author(s) to this report, hereby certify that all the views expressed in this research report accurately reflect my (our) views about the subject issuer(s) or security(ies). I(we) also certify that no part of my (our) compensation was, is or will be directly or indirectly related to the specific recommendation(s) or view(s) expressed in this report.

Head of Research CertificationI, Amr Hussein Elalfy, Global Head of Research of Mubasher Financial Services BSC (c) confirm that I have vetted the information, and all the views expressed by the Analyst in this research reportabout the subject issuer(s) or security(ies). I also certify that the author of this report, has not received any compensation directly related to the contents of the Report.

DisclaimerThis document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. Mubasher Financial Services BSC (c) (‘MFS’) has basedthis document on information obtained from sources it believes to be reliable but which it has not independently verified; MFS makes no guarantee, representation or warranty and accepts noresponsibility or liability as to its accuracy or completeness. The opinions contained within the document are based upon publicly available information at the time of publication and are subject tochange without notice. This document is not intended for all recipients and may not be suitable for all investors. Securities described in this document are not available for sale in all jurisdictions or tocertain category of investors. The document is not substitution for independent judgment by any recipient who should evaluate investment risks. Additionally, investors must regard this document asproviding stand-alone analysis and should not expect continuing analysis or additional documents relating to the issuers and/or securities mentioned herein. Past performance is not necessarily aguide to future performance. Forward-looking statements are not predictions and may be subject to change without notice. The value of any investment or income may go down as well as up and youmay not get back the full amount invested. Where an investment is denominated in a currency other than the local currency of the recipient of the research report, changes in the exchange rates mayhave an adverse effect on the value, price or income of that investment. In case of investments for which there is no recognized market, it may be difficult for investors to sell their investments or toobtain reliable information about its value or the extent of the risk to which it is exposed. References to ratings/recommendations are for informational purposes only and do not imply that MFSadopts, supports or confirms in any way the ratings/recommendations, opinions or conclusions of the analysts. This document is not directed or intended for distribution to, or use by, any person orentity who is a citizen or resident of or located in any locality, state, country, or other jurisdiction where such distribution, publication, availability or use would be contrary to law, regulation or whichwould subject MFS or its affiliates to any registration or licensing requirements within such jurisdiction. MFS accepts no liability for any direct, indirect, or consequential damages or losses incurred bythird parties including its clients from any use of this document or its contents.

Copyright© Copyright 2015, Mubasher Financial Services BSC (MFS), ALL RIGHTS RESERVED. No part or excerpt of this document may be redistributed, reproduced, stored in a retrieval system, or transmitted,on any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of MFS. MubasherTrade is a trademark of Mubasher FinancialServices BSC. Mubasher Financial Services BSC (c) is an Investment Business Firm Category 1, licensed and regulated by the Central Bank of Bahrain.

Issuer of ReportMubasher Financial Services BSC (c) is an Investment Business Firm Category 1, licensed and regulated by the Central Bank of Bahrain.Website: www.MubasherTrade.comE-mail: [email protected]



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