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					                                                            Kuwait Financial Centre “Markaz”
                                                                                                     RESEARCH



                                GCC Bond Market Survey
February 2010
Fixed Income Research
                                                                               2009 Highlights
                                Before reading this report
                                - Aggregate bonds market includes sovereign and corporate issuances, conventional
                                (“bonds”) and Shari’ah compliant issuances (“sukuk”).

                                - Sovereign issuances include treasury bills and bonds issued by either the central
                                bank or a government entity, and do not include corporations owned fully or largely
                                by the government.

                                - A number of sources which include Bloomberg, Zawya, GCC central banks’
                                websites, reports by rating agencies, related offering memorandums, and others
                                were utilized.

                                - Every effort has been made to include and quote the majority of data sources that
Markaz Research is              are accessible to Markaz.
available on Bloomberg
Type “MRKZ” <Go>                - All currencies have been converted into US dollars to facilitate easy comparison.

                                GCC Aggregate Bond Market 2009
Rasha A. Othman                 The GCC aggregate primary bond market, which includes both conventional
AVP – Corporate Finance         (“bonds”) and Shari’ah compliant issues (“sukuk”) increased substantially to
+965 2224 8000 Ext.: 1113       USD72.7 billion in 2009, up by 220.5% compared with amount raised in
rothman@markaz.com              2008.

Ziad G. Jarjouhi                The majority of issuances took place in the second half of the year with 77
Assistant Analyst               issuances, representing 61.1% of the total number of issuances and 60.0%
+965 2224 8028                  of the aggregate volume issued throughout the year. The increase was
zjarjouhi@markaz.com            fueled by new issuances of sovereign issuers or corporations that are fully
                                or largely owned by the governments, which together represented 93.8% of
                                the total issuance during the period.
                                                    Total Fixed Income Issuances in the GCC Region
                                                                  (USD Mn 2003-2009)
                                                                                                                72,774.0



                                                                                          48,011.3
                                                                               39,871.2

                                                                    25,169.8                         22,706.5
                                                         18,436.4
Kuwait Financial Centre                15,325.6
“Markaz”

P.O. Box 23444, Safat 13095,            2003              2004       2005       2006       2007       2008       2009
Kuwait
Tel: +965 224 8000             Source: Markaz Analysis
Fax: +965 242 5828
markaz.com                     November witnessed the highest issuance frequency and value with 21
                               issuances raising a total of USD18.1 billion, representing 16.7% and 24.9%
                               respectively of total 2009 issuances.
                                                                                                                                        RESEARCH
                                                                                                                                         February 2010


                                                     Total Fixed Income Issuance in the GCC Region
                                                                     (2009 USD Mn)
               Amount Raised in USD Mn   20,000                                                                                     25.00
                                         18,000




                                                                                                                                             Number of Issues
                                         16,000                                                                                     20.00
                                         14,000
                                         12,000                                                                                     15.00
                                         10,000
                                          8,000                                                                                     10.00
                                          6,000
                                          4,000                                                                                     5.00
                                          2,000
                                              0                                                                                     -



                                                                     Total Value (USD Mn)     Number of Issues

                                    Source: Markaz Analysis


Sovereign vs Corporate
During 2009, sovereign issuances regained their dominance with the majority of the amount raised, with
USD52.6 billion representing 72.3% of the total amount raised; continuing with the trend observed since
2003 except for the peak years of 2006 and 2007. Corporate issuances raised USD20.1 billion during 2009,
27.7% of the total amount raised.


                                                    Total Sovereign & Corporate Issuance in the GCC
                                                                       (USD Bn)




                                                                                                                             52.6
                                                                                                   19.7
                                                                                       12.4

                                                                           13.7                                  13.1
                                                              13.5                     28.1        28.3
                                             14.6                                                                            20.1
                                                               4.9         11.4                                  9.6
                                              0.7
                                             2003         2004            2005        2006        2007           2008        2009

                                                                       Sovereign                      Corporate
                                    Source: Markaz Analysis


The sovereign issuances in this survey include the USD20.0 billion bonds issued by the Emirate of Dubai,
which were fully subscribed by the UAE’s central bank and Government of Abu Dhabi, and which was made
up of the following issues:

                                                                                                      Amount             Issue
Type                 Issuer Name                                         Subscribed By                                                   Maturity               Coupon
                                                                                                     (USD Mn)            Date
Conventional         Dubai Government                                    Central Bank of the UAE          10.0          22-Feb-09        22-Feb-14               4.0%
Sukuk                Dubai Department of Finance                         Al Hilal Bank                    5.0           25-Nov-09        24-Nov-14               4.0%
                                                                         National Bank of Abu
Conventional         Dubai Department of Finance                                                           5.0          25-Nov-09        24-Nov-14               4.0%
                                                                         Dhabi
Conventional         Dubai Government                                    Abu Dhabi Government              5.0          14-Dec-09        14-Dec-14               4.0%
                                                                               Bond Program Size          20.0




                                                                                                          Kuwait Financial Centre “Markaz”                        2
                                                                                                             RESEARCH
                                                                                                              February 2010

Conventional vs Sukuk
Continuing with the trend witnessed since 2003, issuances of conventional bonds raised the greatest amount
during 2009 with USD61.5 billion representing 84.5% of the total value raised through 93 issuances,
compared to USD11.3 billion for sukuk through 33 issuances.


                          Total Conventional & Sukuk Issuance in the GCC Region
                                                (USD Mn)

                                                                                                  11,309.5    15.5%



                                                             11,423.5    19,132.0
                                              2,967.5                                                         84.5%
                     1,880.0       1,940.2                                              8,081.0

                     13,445.6     16,496.1    22,202.3       29,012.9    28,879.3      14,625.6   61,464.5

                      2003          2004       2005           2006         2007         2008       2009

                                                     Sukuk        Conventional

                Source: Markaz Analysis


Breakdown by Sector
In aggregate, sovereign issuances totaled USD51.8 billion representing 71.2% of the total amount raised
through 89 issuances. Excluding sovereign issues, six sectors were active in the issuance of bonds and sukuk
during 2009: Financial Services, Oil and Gas, Real Estate, Power and Utilities, Telecom and Conglomerates.

Financial Services sector raised USD8.7 billion, or 41.4% of the aggregate corporate bond market, through
23 issuances. The Oil and Gas sector ranked second raising USD3.5 billion, representing 16.6% of the
aggregate corporate bond market through four issuances. The Real Estate sector followed, raising USD3.5
billion, representing 16.4% of the aggregate corporate bond market with four issuances.

The first telecom bond issuance to occur in the GCC was placed during June 2009 by Qatar Telecom.
According to Reuters, the inaugural issue attracted substantial interest with global orders in excess of USD13
billion. The size of the issuance was USD1.5 billion and allocated as follows: USD900 million 5-year bond and
USD600 million 10-year bond.


                                Total Issuance by Sector - Excluding Government
                                                 (2009 USD Bn)


                                                                     0.50 , 2.4%
                                                                                                    Financial Services
             8.69 , 41.39%
                                                                                                    Conglomerate
                                                                                   3.48 , 16.6%
                                                                                                    Oil and Gas

                                                                                                    Power and Utilities

                                                                                                    Real Estate

                                                                                                    Telecom


                                                                               3.37 , 16.1%
            1.50 , 7.1%


                                      3.45 , 16.4%

                Source: Markaz Analysis




                                                                                    Kuwait Financial Centre “Markaz”      3
                                                                                                       RESEARCH
                                                                                                        February 2010


                                                Total Issuance by Sector
                                                 (2003-2009 USD Mn)




                              135.06, 55.6%
                                                                                         Government
                                                                                         Financial Services
                                                                                         Real Estate
                                                                                         Oil and Gas
                                                                47.94; 19.7%
                                                                                         Power and Utilities
                                                                                         Transport
                                                                                         Others
                                          15.28;   18.81;
           4.61, 1.9%                     6.3%     7.7%
              9.19, 3.8%
                   11.98, 4.9%


                Source: Markaz Analysis


Geographical Breakdown
Continuing with the trend witnessed since 2006, the UAE garnered the majority share of amount issued
during 2009, raising USD36.6 billion, or 50.2% of the total amount. Next was Qatar, raising USD15.3 billion,
or 21.1% of the aggregate amount raised; Kuwait raising USD14.0 billion with 19.2%, Saudi Arabia USD4.5
billion with 6.2%; Bahrain USD2.0 billion with 2.8% and then Oman USD0.4 billion with 0.6% of aggregate
amount raised.

In terms of issuance frequency, Kuwait garnered the majority share of the number of issues, with 47
issuances representing 37.3% of the total number; out of which 46 issuances were issued by the Central
Bank of Kuwait. UAE followed with 31 issuances, representing 24.6% of the total number of issuances, while
Oman was the least active amongst the GCC issuers with only 3 issuances raising USD0.4 billion (2.4% of
the total number of issuances).
                                    Total Issuance - Geographical Breakdown
                                                 (2009 USD Mn)
                                      2,020.50 , 2.8%

                        4,495.32 , 6.2% 408.54 , 0.6%


                                                                                            UAE
                            13,957.91 ;                                                     Qatar
                              19.2%                                                         Kuwait
                                                        36,561.71 , 50.2%
                                                                                            Saudi Arabia
                            15,330.00 , 21.1%
                                                                                            Bahrain
                                                                                            Oman




                Source: Markaz Analysis




                                                                               Kuwait Financial Centre “Markaz”   4
                                                                                                                                                RESEARCH
                                                                                                                                                 February 2010

Maturity Structure
During 2009, issuances with 5 year maturities raised the highest amount, USD42.5 billion, representing
58.4% of the aggregate amount raised, while issuances with 3 month maturities had the largest number of
issuances with 28 issues, raising USD5.4 billion. The State of Qatar issued the longest tenor GCC sovereign
bond ever in the market during 2009, with a tenor of 30 years.


                                                        Total Market - Maturity Structure 2009

                                             45,000                                                                                30
                   Amount Raised in USD Mn




                                             40,000
                                                                                                                                   25




                                                                                                                                        Number of Issues
                                             35,000
                                             30,000                                                                                20
                                             25,000
                                                                                                                                   15
                                             20,000
                                             15,000                                                                                10
                                             10,000
                                                                                                                                   5
                                              5,000
                                                  0                                                                                -



                                                         Total Amount USD Mn Raised             Total Number of Issues
                Source: Markaz Analysis


Size
The bond and sukuk issuances during 2009 had sizes ranging from USD10.0 million to USD10.0 billion.
However, issuances with a principal amount of more than USD200 million and equal to or less than USD500
million were the most active with 32 issuances, representing 25.4% of the total number of issuances,
totaling USD10.4 billion. This represents a shift from the trend witnessed during the past two years, when
issuances with a principal amount equal or less than USD100 million were the most dominant.

Out of the five largest issues ever placed in the GCC, three were raised during 2009: Government of Dubai’s
USD10.0 billion bond; Government of Dubai’s USD5.0 billion bond; and, State of Qatar’s USD3.5 billion bond.


                                                      Total Market- Breakdown of Issue Size Structure
                                                                           2009
                                             30,000                                                                                35
                   Amount Raised in USD Mn




                                             25,000                                                                                30
                                                                                                                                        Number of Issues




                                                                                                                                   25
                                             20,000
                                                                                                                                   20
                                             15,000
                                                                                                                                   15
                                             10,000
                                                                                                                                   10
                                              5,000                                                                                5
                                                 0                                                                                 -
                                                      Size of Issue USD 100 Mn USD 200 Mn USD 500 Mn USD 1,000 Size of Issue
                                                       < USD 100      ≤ Size of   ≤ Size of   ≤ Size of Mn ≤ Size of ≥ USD 3,000
                                                           Mn       Issue < USD Issue < USD Issue < USD Issue < USD      Mn
                                                                       200 Mn      500 Mn     1,000 Mn    3,000 Mn
                                                        Total Amount USD Mn Raised                Total Number of Issues
                Source: Markaz Analysis


Currency Structure
In 2009, the currency structure for bond issuance reversed to its pre-2008 trend, where most issuances
were denominated in USD. Total USD denominated issuance reached USD53.2 billion, representing 73.1% of
the total volume followed by KWD-denominated issues with USD13.5 billion or 18.5% of the total issuances.
Only three AED-denominated issuances were placed during 2009, raising USD1.3 billion and representing
1.8% of the total volume.




                                                                                                             Kuwait Financial Centre “Markaz”              5
                                                                                                                                 RESEARCH
                                                                                                                                  February 2010

                                                                 Total Issuance - Currency Structure
                                                                                2009
                                             60,000                                                                 50


                   Amount Raised in USD Mn
                                             50,000                                                                 40




                                                                                                                         Number of Issues
                                             40,000
                                                                                                                    30
                                             30,000
                                                                                                                    20
                                             20,000

                                             10,000                                                                 10

                                                 0                                                                  -
                                                         USD      KWD     SAR    BHD     AED  OMR      EUR    HKD
                                                                  Total Value (USD Mn)     Number of Issues

                Source: Markaz Analysis



                                                                Total Issuance - Currency Structure
                                                                          (USD Mn - 2009)


                                                165.4
                                                                 163.5                                                                      USD
                                                  408.5
                                                                                                                                            KWD
                                                      1,279.6
                           1,270.5                                                                                                          SAR
                                                       2,795.3                           53,233.2                                           BHD
                                                                                                                                            AED
                                                                  13,457.9
                                                                                                                                            OMR
                                                                                                                                            EUR
                                                                                                                                            HKD



                Source: Markaz Analysis


Rating
In 2009, a total of 45 issuances, or 81.8% of the total issuances, were rated by either one of the following
rating agencies: Moody’s, Standard & Poor’s and Fitch.

According to Moody’s, the average rating in the GCC has migrated from A1 in 2008 to Baa1 in 2009, as a
result of the downgrades for many regional issuers during the year. Most prominently were the Dubai’s
corporate government-related issuers, downgraded due to uncertainties concerning the repayment of their
debt and the degree of government support they will effectively receive.




                                                                                                     Kuwait Financial Centre “Markaz”             6
                                                                                                       RESEARCH
                                                                                                        February 2010

                                                      Total Issuances Rated 2009

                                                         2   2
                                                                         10                     A
                                                                                                A-
                                                  8
                                                                                                A+
                                                                                                AA
                                                                                                AA-

                                                                              8                 AAA
                                                  6                                             BBB+


                                                                 9
                       Source: Markaz Analysis


Select Moody’s Investors Service Rating Actions
                                                                     Issuance     Initial   Rating After Review
Company                                                                                                              Country
                                                                       Year       Rating    (as of 31 Dec 2009)
Aldar Properties Atlantic Finance Ltd                                  2009         A3      A3 (Negative Watch)       UAE
Tourism Development & Investment Company TDIC
                                                                       2009        Aa2      Aa2 (Negative Watch)      UAE
Sukuk Limited
Tourism Development & Investment Company TDIC
                                                                       2009        Aa2      Aa2 (Negative Watch)      UAE
Finance Limited
Abu Dhabi National Energy Company Taqa 2019                            2009        Aa2      Aa2 (Negative Watch)      UAE
Abu Dhabi National Energy Company Taqa 2019                            2009        Aa2      Aa2 (Negative Watch)      UAE
Mubadala Development Company MDC - GMTN B.V.
                                                                       2009        Aa2      Aa2 (Negative Watch)      UAE
2019
Mubadala Development Company MDC - GMTN B.V.
                                                                       2009        Aa2      Aa2 (Negative Watch)      UAE
2014
Dolphin Energy Limited Dolphin 2019                                    2009        Aa3      Aa3 (Negative Watch)      UAE
Kuwait Projects Company (Holding) KWIPKK 8.875                         2009        Baa1     Baa1 (Negative Watch)    Kuwait
Dubai Electricity & Water Authority DEWA Funding Ltd                   2008         A1      Ba2 (Negative Watch)      UAE
DIFC Investments DIFC Sukuk Centre                                     2007         A1      B2 (Negative Watch)       UAE
DP World DP World Sukuk Ltd                                            2007         A1      Ba1 (Negative Watch)      UAE
Dubai Holding Commercial Operations Group DHCOG
                                                                       2007         A1      B1 (Negative Watch)       UAE
MTN Ltd
Jebel Ali Free Zone JAFZ Sukuk Ltd                                     2007         A1      B1 (Negative Watch)       UAE
Qatar Real Estate Investment Company QREIC Sukuk Co.                   2007         A2      A2 (Negative Watch)       Qatar
National Industries Group Holding NIG Sukuk                            2007        Baa2     Ba3 (Negative Watch)     Kuwait
Source: Moody’s Investors Service and Bloomberg



 Listing
 During 2009 only two issuances were listed on the NASDAQ Dubai: GE Capital’s USD500.0 million Sukuk,
 which was listed on 10 December 2009; and the World Bank Hilal Sukuk Company’s USD100.0 million sukuk
 which was listed on 4 November 2009.

 On the Bahrain Stock Exchange two issuances were listed during 2009: the Central Bank of Bahrain’s
 BHD165.0 million Long Term Sukuk, which was listed on 15 October 2009; and the World Bank Hilal Sukuk
 which was listed on 4 November 2009.

 On the Muscat Securities Market three bonds were listed during 2009: Bank Muscat’s 7% Convertible Bond
 which was listed on 12 April 2009; Bank Muscat’s 8% Subordinated Bond which was listed on 14 May 2009;
 and the Central Bank of Oman’s 36th Government Bond Issue which was listed on 4 October 2009.




                                                                                  Kuwait Financial Centre “Markaz”     7
                                                                                      RESEARCH
                                                                                       February 2010

Market Performance
The HSBC/DIFX GCC Aggregate Bond and Sukuk (GCCB) Index performance increased substantially by
18.3% during 2009, from 98.8 on 31 December 2008 reaching 116.9 on 31 December 2009; while the GCCB
index yield decreased by 37.0%, from 10.5% on 31 December 2008 to 6.6% on 31 December 2009.


                                    HSBC/DIFX GCC Bond and Sukuk Index
                                            2009 Performance
               140.0
               120.0
               100.0
                80.0
                60.0
                40.0
                20.0
                 0.0




               Source: HSBC/DIFX Indices

                                    HSBC/DIFX GCC Bond and Sukuk Index
                                                2009 Yield
               12.0
               10.0
                8.0
                6.0
                4.0
                2.0
                0.0




               Source: HSBC/DIFX Indices


The Dow Jones Citigroup Sukuk Price Index for regional sukuk has also increased by 25.06% in 2009, from
91.5 at 31 December 2008 to 114.43 at 31 December 2009.


                                           DJ Citigroup Sukuk Index
                                              2009 Performance
               140.0
               120.0
               100.0
                80.0
                60.0
                40.0
                20.0
                 0.0




               Source: Zawya




                                                                  Kuwait Financial Centre “Markaz”   8
                                                                                                  RESEARCH
                                                                                                   February 2010

The last week of November observed two significant events for both of the aforementioned indices. During
that week, the performance of both indices reached an annual high and then witnessed the largest daily
decline in performance as a result of DP World’s debt restructuring and standstill news. The performance of
the HSBC/DIFX GCC Aggregate Bond and Sukuk Index peaked at a high of 122.6 on 25 November and
decreased to 116.2 on the next calculation date, 30 November. The Dow Jones Citigroup Sukuk index’s
performance reached an annual high of 125.3 on 26 November and then dropped to 120.3 the next day, 27
November.

Credit Default Swaps
Kuwait’s Credit Default Swap (“CDS”) is the only CDS not priced in the GCC. During 2009, the CDS spreads
linked to GCC sovereigns reached a peak during the following days:

                                                    Highest CDS               Lowest CDS
                                                Basis                    Basis
                                                             Date                     Date
                                                Points                   Points
                         Abu Dhabi             374.240     02 March     94.630      21 October
                         Dubai                 976.900    17 February   287.590     20 October
                         Bahrain               600.000    24 February   144.200     19 October
                         Qatar                 315.410    27 February   76.625     09 September
                         Saudi                 278.920     02 March     70.200      30 October
                         Oman                  385.000      03 June     225.000    16 November
                         Source: Bloomberg




       Source: Bloomberg and Markaz Analysis




                                                                             Kuwait Financial Centre “Markaz”   9
                                                                                                                                                              RESEARCH
                                                                                                                                                               February 2010

        Notable Bond and Sukuk Issuances During 2009

Fixed
                                                                                              Subscription    Tenor    Maturity     Issue Size   Coupon
Income         Issuer                             Name                   Country   Currency                                                                    Margin            Sector
                                                                                                Month        (Years)    Date        (USD Mn)      Type
Type
Conventional   Emirate of Abu Dhabi               ADGB 5.5 04/14           UAE       USD          April        5       08/04/2014    1,500.0      Fixed        5.500%        Government

Conventional   Emirate of Abu Dhabi               ADGB 6.75 04/19          UAE       USD          April        10      08/04/2019    1,500.0      Fixed        6.750%        Government

Conventional   State of Qatar                     Qatar 5.15 04/14        Qatar      USD          April        5       09/04/2014    2,000.0      Fixed        5.150%        Government

Conventional   State of Qatar                     Qatar 6.55 04/19        Qatar      USD          April        10      09/04/2019    1,000.0      Fixed        6.550%        Government

                                                                                                                                                                                 Financial
Conventional   Mubadala Development Company       MDC - GMTN B.V.          UAE       USD          April        10      05/06/2019     500.0       Fixed        7.625%
                                                                                                                                                                                 Services
                                                                                                                                                                                 Financial
Conventional   Mubadala Development Company       MDC - GMTN B.V.          UAE       USD          April        5       05/06/2014    1,250.0      Fixed        5.750%
                                                                                                                                                                                 Services
               Dar Al Arkan Real Estate                                   Saudi
Sukuk                                             DAAR Sukuk III                     SAR          May          5       15/04/2014     200.2      Floating   3MSIBOR+4.00%    Real Estate
               Development Company                                        Arabia

Conventional   Aldar Properties                   Atlantic Finance Ltd     UAE       USD          May          5       27/05/2014    1,250.0      Fixed        8.750%        Real Estate

                                                  Qtel International
Conventional   Qatar Telecom Q.S.C.                                       Qatar      USD          June         10      10/06/2019     600.0       Fixed        7.875%            Telecom
                                                  Finance Limited
                                                  Qtel International
Conventional   Qatar Telecom Q.S.C.                                       Qatar      USD          June         5       10/06/2014     900.0       Fixed        6.500%            Telecom
                                                  Finance Limited

Sukuk          CBB International Sukuk Company    Bahrain Sukuk          Bahrain     USD          June         5       17/06/2014     750.0       Fixed        6.247%        Government

Conventional   TDIC Finance LTD                   TDIC Finance             UAE       USD          June         5       02/07/2014    1,000.0      Fixed        6.500%        Real Estate

Sukuk          RAK Capital                        RAK Capital Sukuk II     UAE       USD          July         5       22/07/2014     400.0       Fixed        8.000%        Government

Conventional   Dolphin Energy Limited LLC         Dolphin 2019             UAE       USD          July         10      15/06/2019    1,250.0      Fixed        5.880%        Oil and Gas

                                                  Saudi Electricity       Saudi                                                                                              Power and
Sukuk          Saudi Electricity Company                                             SAR          July         20      06/07/2029    1,868.7     Floating   3MSIBOR+1.60%
                                                  Company Sukuk II        Arabia                                                                                              Utilities
               Ras Laffan Liquefied Natural Gas                           Saudi
Conventional                                      RasGas 2012                        USD          July         3       30/09/2012     500.0       Fixed        4.500%        Oil and Gas
               Company Limited (3)                                        Arabia
               Ras Laffan Liquefied Natural Gas                           Saudi
Conventional                                      RasGas 2014                        USD          July         5       30/09/2014    1,115.0      Fixed        5.500%        Oil and Gas
               Company Limited (3)                                        Arabia




                                                                                                                                    Kuwait Financial Centre “Markaz”
                                                                                                                                                                            10
                                                                                                                                                                 RESEARCH
                                                                                                                                                                  February 2010

        Notable Bond and Sukuk Issuances During 2009
Fixed
                                                                                                 Subscription    Tenor    Maturity     Issue Size   Coupon
Income         Issuer                             Name                      Country   Currency                                                                    Margin            Sector
                                                                                                   Month        (Years)    Date        (USD Mn)      Type
Type
               Ras Laffan Liquefied Natural Gas                              Saudi
Conventional                                      RasGas 2019                           USD          July         10      30/90/2019     615.0       Fixed         6.75%        Oil and Gas
               Company Limited (3)                                           Arabia
                                                  IDB Trust Services         Saudi
Sukuk          Islamic Development Bank                                                 USD       September       5       16/06/2014     850.0       Fixed        3.172%        Government
                                                  Limited                    Arabia
                                                                                                                                                                                    Financial
Conventional   National Bank of Abu Dhabi         NBAD 2014                   UAE       USD       September       5       11/09/2014     850.0       Fixed        4.500%
                                                                                                                                                                                    Services
               Abu Dhabi National Energy                                                                                                                                        Power and
Conventional                                      Taqa 2014                   UAE       USD       September       5       15/09/2014    1,000.0      Fixed        4.750%
               Company                                                                                                                                                           Utilities
               Abu Dhabi National Energy                                                                                                                                        Power and
Conventional                                      Taqa 2019                   UAE       USD       September       10      15/09/2019     500.0       Fixed        6.250%
               Company                                                                                                                                                           Utilities
                                                                                                                                                                                    Financial
Conventional   Abu Dhabi Commercial Bank          ADCB 4.75 10/14             UAE       USD        October        5       08/10/2014    1,000.0      Fixed        4.750&
                                                                                                                                                                                    Services

Conventional   Kuwait Projects Company Holding    KWIPKK 8.875               Kuwait     USD        October        7       17/10/2016     500.0       Fixed        8.875%       Conglomerate

               Tourism Development and            TDIC Sukuk Limited
Sukuk                                                                         UAE       USD        October        5       21/10/2014    1,000.0      Fixed        4.949%        Real Estate
               Investment Company                 (TSL)
                                                  Dubai DOF Sukuk
Sukuk          Government of Dubai                                            UAE       AED       November        5       03/11/2014     680.6      Floating   3MEIBOR+3.70%    Government
                                                  Limited (AED)
                                                  Dubai DOF Sukuk
Sukuk          Government of Dubai                                            UAE       USD       November        5       03/11/2014    1,250.0      Fixed        6.390%        Government
                                                  Limited (USD)

Conventional   State of Qatar                     QATAR 6.400 01/40          Qatar      USD       November        30      20/01/2040    1,000.0      Fixed        6.400%        Government

Conventional   State of Qatar                     QATAR 5.250 01/20          Qatar      USD       November        10      21/01/2020    2,500.0      Fixed        5.250%        Government

Conventional   State of Qatar                     QATAR 4 01/20/15           Qatar      USD       November        5       20/01/2015    3,500.0      Fixed        4.000%        Government

                                                                                                                                                                                    Financial
Conventional   Commercial Bank of Qatar           COMQAT 2019                Qatar      USD       November        10      18/11/2019     600.0       Fixed        7.500%
                                                                                                                                                                                    Services
                                                                                                                                                                                    Financial
Conventional   Commercial Bank of Qatar           COMQAT 2014                Qatar      USD       November        5       18/11/2014    1,000.0      Fixed        5.000%
                                                                                                                                                                                    Services
                                                                             Saudi                                                                                                  Financial
Conventional   Gulf International Bank            Gulf International Bank               SAR       November        3       15/11/2012     533.0      Floating   3MSIBOR+1.28%
                                                                             Arabia                                                                                                 Services
                                                                                                                                                                                    Financial
Conventional   First Gulf Bank                    First Gulf Bank             UAE       USD       November        3       26/11/2012     500.0       Fixed        4.000%
                                                                                                                                                                                    Services
                                                  Saudi Hollandi Bank       Saudi                                                                                                   Financial
Sukuk          Saudi Hollandi Bank                                                      SAR       December        10      31/12/2019     193.4      Floating   6MSIBOR+1.90%
                                                  Sukuk ( Tranche 2)        Arabia                                                                                                  Services



                                                                                                                                       Kuwait Financial Centre “Markaz”
                                                                                                                                                                               11
                                                                                                                                     RESEARCH
                                                                                                                                      February 2010

                                                                   Markaz Research Offerings

            Strategic Research                                                   Periodic Research                      Sector Research
                                                                                                      Infrastructure
What to expect in 2010 (Jan-10)                                      Daily
GCC Banks - Done with Provisions? (Jan-10)                           Markaz Daily Morning Brief       GCC    Power
What is left for 2009? (Sept-09)                                     Markaz Kuwait Watch              GCC    Ports
Kuwait Investment Sector (Jun-09)                                    Daily Fixed Income Update        GCC    Water
Missing the Rally (Jun-09)                                                                            GCC    Airports
Shelter in a Storm (Mar-09)                                          Weekly                           GCC    Roads & Railways
Diworsification: The GCC Oil Stranglehold (Jan-09)                                                    GCC    ICT
This Too Shall Pass (Jan-09)                                         KSE Market Weekly Review
Fishing in Troubled Waters (Dec-08)                                  International Market Update      Real Estate – Market Outlook
Down and Out: Saudi Stock Outlook (Oct-08)                           Real Estate Market Commentary
Mr. GCC Market-Manic Depressive (Sept-08)                                                                        Egypt Real Estate - Trends and Outlook(Feb-10)
Global Investment Themes (June-08)                                   Monthly                                     Kuwait Real Estate Outlook(Dec-09)
To Yield or Not To Yield (May-08)                                                                                Abu Dhabi Residential (Nov-09)
                                                                     Mena Mergers & Acquisitions                 Office Investment in KSA (Jul-09)
The Golden Portfolio (Apr-08)
                                                                     Option Market Activity                      Saudi Arabia – Residential Real Estate Outlook (Jun-09)
Banking Sweet spots (Apr-08)
                                                                     GCC Quants                                  Saudi Arabia (Sep-08)
The “Vicious Square” Monetary Policy options for Kuwait (Feb-08)
                                                                     Market Review                               Abu Dhabi (July-08)
China and India: Too Much Too Fast (Oct-07)
                                                                     GCC Corporate Earnings                      Algeria (Mar-08)
A Potential USD 140b Industry: Review of Asset Management
Industry in Kuwait (Sep-07)                                                                                      Jordan (Mar-08)
                                                                     Quarterly                                   Kuwait (Feb-08)
A Gulf Emerging Portfolio: And Why Not? (Jun-07)
To Leap or To Lag: Choices before GCC Regulators (Apr-07)            GCC Equity Funds                            Lebanon (Dec-07)
Derivatives Market in GCC (Mar-07)                                   Thought Speaks                              Qatar (Sep-07)
Managing GCC Volatility (Feb-07)                                     Equity Research Statistics                  Saudi Arabia (Jul-07)
GCC for Fundamentalists (Dec-06)                                                                                 U.S.A. (May-07)
GCC Leverage Risk (Nov-06)                                                                                       Syria (Apr-07)

                                                                                                     Real Estate Strategic Research

                                                                                                         •       GCC Distressed Real Estate Opportunities (Sep-09)
                                                                                                         •       GCC Real Estate Financing (Sept-09)
                                                                                                         •       Real Estate Earnings -2009 (May-09)
                                                                                                         •       Supply Adjustments Are we done? (Apr-09)
                                                                                                         •       Dubai Real Estate Meltdown (Feb-09)




                                                                                                     Kuwait Financial Centre “Markaz”
                                                                                                                                                      12
                                                                                                                                                                         RESEARCH
                                                                                                                                                                          February 2010

                                                                   Markaz Research Offerings

                                                                                         Company Research
  Saudi Arabia                            UAE                                        Qatar                                     Bahrain                              Oman

  •   Saudi Electricity Company(Feb-10)   •     Dubai Financial Market (Sept-09)     •   Qatar Telecom (Jun-09)                •   Gulf Finance House (Oct-08)      •   Galfar Engineering & Cont. (Nov-08)
  •   Saudi Arabian Mining Co(Feb-10)     •     ADCB (Jun-09)                        •   Industries Qatar (Apr-09)             •   Esterad Investment Company       •   Oman Telecommunications (Sept-08)
  •   Yamama Saudi Cement (Feb-10)        •     DP World (Jun-09)                    •   Qatar National Bank (Feb-09)              (Aug-08)                         •   Bank Muscat(Sept-08)
  •   Etihad Etisalat (Feb-10)            •     NBAD (Feb-09)                        •   United Development Co. (Feb-09)       •   Bahrain Islamic Bank (Aug-08)    •   Oman cement (Sept-08)
  •   Al Marai Company (Dec-09)           •     Sorouh Real Estate (Feb-09)          •   Qatar Fuel Co. (Dec-08)               •   Ithmaar Bank (July-08)           •   Raysut Cement Company (Aug-08)
  •   Arab National Bank (Oct-09)         •     Aldar Properties (Feb-09)            •   Qatar Shipping Co (Dec-08)            •   Tameer (July-08)                 •   National Bank of Oman (Aug-08)
  •   SAFCO (Oct-09)                      •     Gulf Cement Company (Jan-09)         •   Barwa Real Estate Co. (Nov-08)        •   Batelco (July-08)                •    OIB (July-08)
  •   Al Rajhi Bank (Aug-09)              •     Abu Dhabi National Hotels (Dec-08)   •   Qatar Int’l Islamic bank (Nov-08)
  •   Riyad Bank (Jul-09)                 •     Dubai Investments (Dec-08)           •   Qatar Insurance Co. (Nov-08)         Research Coverage Market         Research Coverage Market
  •   Saudi Telecom Co. (May-09)          •     Arabtec Holding (Dec-08)             •   Qatar Gas Transport Co. (Oct-08)     Cap as % of total Market cap 29% Cap as % of total Market cap           69%
  •   Sabic (Mar-09)                      •     Air Arabia ( Nov-08)                 •   Doha Bank (Aug-08)
  •   Samba Financial Group (Feb-09)      •     Union Properties (Nov-08)            •   QEWC (July-08)
                                                                                                                               Egypt
  •   Saudi Investment Bank (Jan-09)      •     Dubai Islamic bank (Oct-08)          •   QISB (July-08)                                                             Jordan
  •   Savola Group (Dec-08)               •     Union National Bank (Aug-08)         •   Masraf Al-Rayan (Jun-08)
                                                                                                                               •   Commercial Int’l Bank (Oct-08)
  •   Kingdom Holding Co (Dec-08)         •     Emaar Properties (July-08)           •   Commercial Bank of Qatar (Jun-08)                                          •   Arab Bank (Sept-08)
                                                                                                                               •   Orascom Telecom (Sep-08)
  •   Saudi Kayan Petro Co. (Aug-08)      •     Dana Gas (July-08)                                                                                                  •   Cairo Amman Bank (Oct-08)
                                                                                                                               •   Mobinil (Sep-08)
  •   Banque Saudi Fransi (Jun-08)        •     FGB (July-08)                        Research Coverage Market
                                                                                                                               •   Telecom Egypt (Aug-08)
                                          •     Etisalat (Jun-08)                    Cap as % of total Market cap     95%                                           Research Coverage Market
                                                                                                                               •   EFG-Hermes (Jun-08)
  Research Coverage Market                                                                                                                                          Cap as % of total Market cap 39%
  Cap as % of total Market cap      40% Research Coverage Market
                                                                                                                             Research Coverage Market
                                        Cap as % of total Market cap         48%
                                                                                                                             Cap as % of total Market cap 45%



Markaz Research is available on: Bloomberg Type “MRKZ” <GO>, Thomson Financial, Reuters Knowledge, Zawya Investor & Noozz.
To obtain a print copy, kindly contact:
Kuwait Financial Centre “Markaz”
Media and Communications Department
Tel: +965 2224 8000 Ext. 1814
Fax: +965 2249 8740
Postal Address: P.O. Box 23444, Safat, 13095, State of Kuwait
Email: info@markaz.com
markaz.com/research


                                                                                                                                           Kuwait Financial Centre “Markaz”
                                                                                                                                                                                        13
                                                                                                                 RESEARCH
                                                                                                                  February 2010




Disclaimer
This report has been prepared and issued by Kuwait Financial Centre S.A.K (Markaz), which is regulated by the Central Bank of Kuwait.
The report is intended to be circulated for general information only and should not to be construed as an offer to buy or sell or a
solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy in any jurisdiction.

The information and statistical data herein have been obtained from sources we believe to be reliable but no representation or
warranty, expressed or implied, is made that such information and data is accurate or complete, and therefore should not be relied
upon as such. Opinions, estimates and projections in this report constitute the current judgment of the author as of the date of this
report. They do not necessarily reflect the opinion of Markaz and are subject to change without notice. Markaz has no obligation to
update, modify or amend this report or to otherwise notify a reader thereof in the event that any matter stated herein, or any opinion,
projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate, or if research on the subject company is
withdrawn.

This report does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person
who may receive this report. Investors are urged to seek financial advice regarding the appropriateness of investing in any securities or
investment strategies discussed or recommended in this report and to understand that statements regarding future prospects may not
be realized. Investors should note that income from such securities, if any, may fluctuate and that each security’s price or value may
rise or fall. Investors should be able and willing to accept a total or partial loss of their investment. Accordingly, investors may receive
back less than originally invested. Past performance is historical and is not necessarily indicative of future performance.

Kuwait Financial Centre S.A.K (Markaz) does and seeks to do business, including investment banking deals, with companies covered in
its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity
of this report.



                                                                                       Kuwait Financial Centre “Markaz”               14

				
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