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Kuwait Financial Centre “Markaz” GCC Daily Fixed Income Report – 30 May 2012 News Update Select GCC Bond and Sukuk Prices (29 May 2012) Saudi Almarai reveals $4.2bn, 5-year investment plan- Saudi-based Type Name Maturity Size (Mn) Rating Almarai Co has approved a SR15.7bn ($4.2bn), five-year investment plan Bond State of Qatar 9-Apr-14 2,000 AA/Aa2 that will draw on finance from bank loans and Islamic bonds, Reuters has Bond State of Qatar 9-Apr-19 1,000 AA/Aa2 Bond Emirate of Abu Dhabi 8-Apr-14 1,500 AA/Aa2 reported. The dairy and food producer has been keen to expand its Bond Emirate of Abu Dhabi 8-Apr-19 1,500 AA/Aa2 footprint outside its core presence in the Gulf. The money will replace the Bond Mubadala Development Co. 6-May-14 1,250 Aa3/Aa2 company's existing investment base and fund expansion between 2013 to Bond Mubadala Development Co. 6-May-19 500 Aa3/Aa2 2017 of its operations in farming, manufacturing, distribution and logistics, Bond Qatar Telecom 10-Jun-14 900 A/A2 Almarai said. Bond Qatar Telecom 10-Jun-19 600 A/A2 China’s Top rating Agency gives AA to Kuwait’s sovereign creditDagong Global Credit Rating Co, China‟s leading credit rating agency assigned a local and foreign sovereign credit rating of AA to Kuwait with a stable outlook . “The rating reflects the country‟s robust fiscal and foreign exchange strength as well as its complex geopolitical environment and economic vulnerability” Dagong said. It is the first time Dagong rates Kuwait‟s sovereign credit status.

Sukuk Aldar Properties Sukuk DP World Ltd

27-May-14 2-Jul-17

1,500 1,500

Bid Price 107.235 118.996 108.500 122.000 107.532 121.592 109.317 122.416 BB-/B1 109.737 BBB-/Baa3 105.237

3.89 3.59

4.10 4.31

295.19 312.20

146.75 5.26 Dubai’s 5.591% Dollar Bond Yield Falls 2 Basis Points to 5.21%141.59 5.26 The yield on the Dubai government‟s 5.591 percent dollar bonds due June 2021 fell two basis points, or 0.02 percentage point, to 5.21 percent at Interbank Rates (%) 12:07 p.m. in the emirate. 1-Month

4.60 5.07

299.05 322.59

7.17 7.31

Dubai's economy grew 3.4% last year- The government of Dubai has said the emirate's economy grew 3.4% in real terms in 2011, helped by strong trade flows and rising tourist numbers, Reuters has reported. Dubai, which have been recovering from the 2009-2010 debt crisis, saw its foreign trade jump by a record 22% in 2011, driven by strong flows with Asia. The emirate, which makes up nearly a third of the UAE's GDP, is aiming for economic growth of 4.5% this year, the government said. Saudi issuance is important signal to companies- Saudi Arabia, long the sleeping giant of the Islamic debt markets, is finally shaking off its torpor and has dominated global sales of so-called sukuk so far this year. Sukuk are bonds that are structured to comply with Islamic principles and have strictures against interest. Rather than a fixed coupon, the instruments pay a "profit rate".

Bid Yield 1.490% 3.475% 1.209% 3.219% 2.047% 4.085% 2.109% 4.223% 3.970% 5.097%

Ask Yield 1.243% 3.381% 0.970% 3.148% 1.771% 3.957% 1.829% 4.105% 3.659% 4.982%

HSBC/NASDAQ Dubai GCC Sukuk & Bonds US Dollar Index

Clean Price 4.44 97.15 3.99 95.79

U.A.E. National Board Set to Lower Sukuk Costs- The cost of selling Islamic bonds in the United Arab Emirates may decline as the Arab world‟s second- biggest economy mulls a centralized Shariah board to emulate Malaysia, Credit Agricole SA and Moody‟s Investors Service said. The central bank is calling for the board‟s creation to facilitate sukuk offerings, Saif Al-Shamsi, assistant governor for monetary policy and financial stability, said in a speech delivered for Governor Sultan bin Nasser alSuwaidi on May 23.

Ask Price 107.747 119.641 109.000 122.500 108.122 122.477 109.950 123.241 110.414 105.779

Sukuk 18-May-12 31-December-11 Conventional 18-May-12 30-December-11

SAIBOR KIBOR BHIBOR QATAR AEIBOR LIBOR EURIBOR

Total Return 137.42 133.00

30/05/12 0.6012 0.5625 0.8417 0.8100 0.9687 0.2387 0.3870

Duration Yield

31/12/11 0.5188 0.5625 0.8500 0.4300 0.9750 0.2953 0.9643

U.S. Treasuries (28 May 2012) 3-Month 2-Year 3-Year 5-Year 10-Year 30-Year

Coupon 0.000 0.250 0.375 1.000 2.000 3.125

Equity Market Snapshot Abu Dhabi SE Bahrain SE Dubai SE Kuwait SE Muscat SE Qatar SE Saudi SE

Last Close 2,465.25 1,143.22 1,477.04 6,216.04 5,697.70 8,508.97 7,056.68

Price 0.065 99.844 99.633 99.813 98.156 96.031

1 Day Change -0.1% -0.1% 0.0% -0.9% -0.4% 0.3% -0.3%

Spread

Life

Coupon Total Market Cap

100.22 98.53

3-Month 30/05/12 31/12/11 0.9125 0.7800 0.8125 0.8125 1.2667 1.2583 1.0000 1.1000 1.5287 1.5200 0.4668 0.5810 0.6750 1.2921 Price Change 0.003 0.020 -0.004 -0.121 -0.430 -1.148 YTD Change 2.1% -0.0% 9.3% 7.9% -0.2% -3.2% 8.9%

4.96 5.06

192.47 142.39

5.38 5.63

935.73 808.83

30/05/12 1.1187 1.3125 1.9500 2.3300 1.9863 1.0692 1.2460

1-Year

31/12/11 1.0400 1.3125 1.9583 2.1500 1.9725 1.1281 1.9134

Current Yield (%) Yield Change (%) 0.069 8.001 0.331 -2.326 0.502 0.604 1.039 2.541 2.211 2.361 3.337 1.939

Crude Oil Brent WTI OPEC

Price 106.68 90.57 121.57

1 Day ∆ 0.49% 0.67% -0.56%

Gold Spot $/OZ

Price 1,558.44

1 Day ∆ -3.01%

GCC Sovereign Ratings Moody’s S&P Abu Aa2 AA Dhabi

Fitch

Bahrain Baa1 BBB

BBB

Kuwait Aa2

AA

AA NR

AA

Oman

A1

A

Qatar

Aa2

AA

NR

KSA

Aa3 AA-

AA-

UAE

Aa2

NR

NR

GCC Currencies Currency

USD 1-Day ∆

KWD

0.2770

SAR

3.7502 (0.0001)

(0.0007)

BHD

0.3770

0.0001

QAR

3.6411

0.0001

OMR

0.3851

0.0001

AED

3.6730

0.0000

EUR/USD 1.3084 (0.0031) JPY

79.8500 (0.2000)

USD 5-Year CDS Abu Dhabi Dubai

YTD Change

133.500

7.1%

377.344

-11.6%

Bahrain 348.920

-6.3%

Qatar

133.0000

7.1%

Saudi

129.070

4.2%

Egypt

601.470

-3.7%

Lebanon 485.660

6.0%

Turkey

276.820

-4.5%

China

131.180

-9.5%

France

203.360

-6.1%

Germany 98.460

-1.8%

Japan

100.040

-26.8%

UK

70.800

-26.0%

US

45.000

-3.0%

This report has been prepared and issued by Kuwait Financial Centre S.A.K (Markaz) , which is regulated by the Capital Markets Authority and the Central Bank of Kuwait. The report is owned by Markaz and is privileged and proprietary and is subject to copyrights. Sale of any copies of this report is strictly prohibited. This report cannot be quoted without the prior written consent of Markaz. Any user after obtaining Markaz permission to use this report must clearly mention the source as “Markaz “ .This 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 in no way are warranted by us as to its accuracy or completeness. Markaz has no obligation to update, modify or amend this report.For further information, please contact „Markaz‟ at P.O. Box 23444, Safat 13095, Kuwait. Tel: 00965 1804 800 Fax: 00965 2245 0647 Email: research@markaz.com

A number of sources which include Bloomberg, Zawya, and daily newspapers were utilized in the creation of this report.

DMB30052012  

DMB30052012

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