ECONOMIC RESEARCH | JULY 2010

GCC Debt Market Tracker

Debt markets revive

The second quarter of 2010 marked something of a revival for the GCC
debt capital markets which had seen a sharp drop is issuance volumes
during Q1. Even as global economic uncertainty continued to deter issuers,
investors received a fillip from ongoing restructuring efforts in the Gulf.
Especially sovereign sukuk experienced a marked turnaround from the
opening months of the year. While the near-term outlook remains highly
uncertain, the Q2 performance highlights the potency of structural drivers
of GCC debt market growth.

• The GCC conventional bond market bounced back in Q2. In value terms
primary issuances increased by 33% QoQ while the number of issuances more
than doubled. The largest issues came from the Dubai Electricity and Water
Authority (DEWA) and Bahrain-based Gulf International Bank which raised
some USD1bn each. In value terms, conventional government debt issuance
totaled USD12.2bn with Kuwait raising USD1.7bn through seven short-term
issues and Qatar placing USD1.4bn in a new domestic issue.

• Lead by sovereign sukuk, the Islamic bond market surged in value

terms. Total value of offerings in the GCC reached USD3.4bn, a significant
increase over USD1.1bn raised during 2Q09. The largest sovereign sukuk came
from the Government of Qatar which raised USD1.4bn for a tenor of eight
years. The Central Bank of Bahrain also tapped the market with six short-term
issues. By contrast, the corporate sector saw just one sukuk issue worth
USD1.9bn by the Saudi Electricity Company during the quarter. Globally, a total
of 74 sukuk were issued in 2Q10, with 41 coming from Malaysia where the
value of issuance increased almost three-fold from USD2.5bn in 1Q10 to
USD7.4bn in 2Q10. Encouragingly, the tenors of sukuk issues appear to be
growing longer.

• Government issuances emerged as a key market driver. Out of the eight

GCC sukuk issued during 2Q10, seven were sovereign issues from Bahrain and
Qatar. Sovereign sukuk issuance totaled USD1.5bn during 2Q10. The Qatari
government continued its deliberate program of developing domestic debt
capital markets and plans are underway for a secondary market.

• The near-term outlook remains cloudy amidst an uncertain global

Chief Economist
Dr Jarmo T. Kotilaine
j.kotilaine@ncbc.com
Please refer to the last page
for important disclaimer
economic environment and rising domestic inflationary pressures. The
GCC debt markets face a period of uncertainty because of mounting global
economic risks in the wake of the European sovereign debt crisis and signs of
renewed weakness in the US. In the Gulf region, rising inflation threatens to
push up yield expectations, thereby discouraging new issuance. Nonetheless,
the growing need for long-term financing coupled with low interest rates should
continue to support the market. In terms of new issues, the main worry would
appear to be delays rather than actual cancellations.
 GCC DEBT MARKETS

Second quarter catch-up

Following a market correction during 1Q10, the GCC debt markets resumed their
expansion during Q2 as restructuring deals announced in recent months, along with
easing sovereign debt fears in the Euro-zone, provided a much needed boost to
investor confidence. In May, Dubai World reached an agreement with its creditors
Restructuring deals gave a on USD23.5bn debt restructuring under which the company will pay USD4.4bn
welcome boost to investor
worth of loans over five years and another USD10bn over eight years. Further, the
confidence in Q2
Dubai Government will convert its USD8.9bn loan to Dubai World into equity. At the
same time, Dubai World’s real-estate arm Nakheel PJSC began returning 40% of its
debt to creditors in the form of cash payments. The company had earlier offered
trade creditors full recovery of their claims – 40% through a cash payment and
60% through a publicly tradable sukuk paying a 10% return annually. The Dubai
government in March pledged to pump USD8bn into Nakheel and said it will take
over the company from Dubai World after the restructuring is complete. Bahrain-
based Gulf Finance House also renegotiated with its creditors a USD100mn debt
which matures in August. Although the overall performance of the Gulf debt capital
markets was far ahead of the disappointing beginning to the year, activity levels
still fell far short of those seen in 2009.

A revival in conventional bonds

Following a slowdown in the first three months of the year, the second quarter of
2010 saw a revival in terms of both the aggregate value and the number of GCC
conventional bond issuances. The total amount issued in 2Q10 was USD6.6bn, up
from USD3.4bn in 1Q10. The number of offerings more than doubled to 16 from six
Conventional bond markets
in the previous quarter. Although market sentiment improved, both value and
rebounded after a sharp
issuances levels remained far short of those seen in 2009, which saw a broad-based
decline in 1Q10
increase in government and corporate activity. During Q2, GCC governments and
central banks issued bonds worth USD5.4bn, of which the Central Bank of Kuwait
accounted for USD1.7bn through short-term issues. Reflecting improving sentiment
in the UAE, the state owned Dubai Electricity and Water Authority (DEWA)
successfully raised USD1bn through five-year bonds.

Exhibit 1: Revival in conventional bond market during 2Q10

Value (LHS) No of deals (RHS)

16,000 30

14,000
25
12,000
Value (USDmn)

20
10,000

8,000 15

6,000
10
4,000
5
2,000

0 0
1Q07

2Q07

3Q07

4Q07

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

Source: Bloomberg, NCBC Research

JULY 2010 2
 GCC DEBT MARKETS

The revival of debt capital markets took place against the backdrop of relative
anemia in IPO and bank lending activity. Sentiment was hit by the Greek crisis and
Some evidence of its potential contagion effects. The GCC equity markets reflected this with falls of
improving bank lending 7.5%-20.7%, which led to negative year-to-date returns. This continued to depress
may have depressed the IPO market where Saudi Arabia was the only GCC nation with any activity at all
corporate bond issuance in during the quarter. In comparison with Q1, aggregate issuance declined marginally
2Q10
from USD420.5 to USD409.2 while the number of issues dropped from six to two.
The Knowledge Economic City Company’s issue of USD272mn was the largest Gulf
IPO during the quarter.

The recovery of the GCC banking sector, which was hit by a tumultuous 2009,
similarly experienced renewed delay to its normalization as banks shied away from
lending amid uncertain market conditions. In Saudi Arabia, bank lending to the
private sector grew by a mere 1.6% to USD189.8bn in the first four months of the
year while that to the government sector increased 6.8% to USD8.0bn. Lending
activity in the UAE remained constrained with credit to the private sector declining
by 0.7% to USD164.2 in the first fourth months of 2010 while lending to the
government sector rose by 0.6%.

Exhibit 2: Mixed progress in bank lending Exhibit 3: Slowdown in IPO activity during 2Q10
Value (LHS) Number (RHS)
Saudi Arabia UAE
1200.0 7
2.0%

1.0% 1000.0 6

0.0% 5
Credit growth (MoM %)

800.0
Mar-09

May-09

Jun-09

Jul-09

Oct-09

Nov-09

Dec-09

Jan-10

Feb-10

Mar-10
Sep-09
Apr-09

Aug-09

Apr-10

USD (mn)

-1.0% 4
600.0
-2.0% 3
-3.0% 400.0
2
-4.0% 200.0 1
-5.0%
0.0 0
-6.0% 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q10

Source: Respective Central Bank, NCBC Research , * As of April 2010 Source: Zawya NCBC Research

The sukuk market gains traction

The value of GCC sukuk issued in 2Q10 was USD3.4bn, markedly ahead of the
USD0.6bn seen in Q1 and even well ahead of the USD1.1bn recorded a year earlier.
The total number of new sukuk increased from seven in Q1 to eight. The largest
issue in value terms came from the Saudi Electricity Company which launched its
third sukuk, with a tenor of seven years and an issue size of USD1.9bn (SAR7bn).
Lead by sovereign issues, This followed a USD1.3bn (SAR5bn) five–year issue in 2007 and another USD1.9bn
the value of GCC sukuk
(SAR7bn) issue last year. In terms of the number of issues, Bahrain dominated the
issuance surged to
sukuk spectrum with six short-term sovereign issues with an aggregate value of
USD3.3bn in 2Q10
USD175.8mn in 2Q10.

The progress made in restructuring troubled sukuk boosted sentiment also in the
Shariah-compliant market segment. The Dubai World deal in May was the most
important milestone in this regard. Reflecting the improvement in investor
confidence, Dubai’s credit default swaps have declined by about 20% since the last
quarter. The HSBC/DIFX GCC Sukuk Index rose by 1.1% MoM and 10.7%YoY in June.

JULY 2010 3
 GCC DEBT MARKETS

Exhibit 4: HSBC GCC sukuk total returns Exhibit 5: Dow Jones Citi global sukuk index

120
130.0
115
120.0
110

105 110.0

100
100.0
95
90.0
90

85 80.0

80
70.0
Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10
Jan-09 Apr-09 Jul-09 Oct-09 Dec-09 Mar-10 Jun-10

Source: Zawya, NCBC Research Source: Zawya, NCBC Research

Highlighting broad-based nature of the improving sentiment in the global sukuk

market, the Dow Jones Citi Sukuk Index, which measures the performance of global
sukuk, was up 1.9% QoQ and 10.4% YoY at the end of June. The value of global
issuance in 2Q10 stood at USD11.9bn more than double the USD5.4bn in 1Q10 and
the USD5.6bn level in 2Q09. There were a total of 74 global sukuk issues in 2Q10,
higher than 57 in the previous quarter. The value of issuances in Malaysia increased
from USD2.5bn in 1Q10 to USD7.4bn in 2Q10. At the same time, the number if
issues nearly doubled to 41 from 22 in Q1. In its first global offering in eight years,
the Malaysian government issued a sovereign sukuk priced at USD1.25bn during
May. The sukuk, which met with strong demand, was priced 180 basis points above
comparable US Treasury bonds. Indonesia by contrast saw a lull with the value of
sovereign issues falling from USD1.6bn in 1Q10 to USD749mn in 2Q10.

Exhibit 6: Global value of primary sukuk issues Exhibit 7: Global number of primary sukuk issues

GCC (LHS) non-GCC (LHS) Total (RHS) GCC (LHS) non-GCC (LHS) Total (RHS)

9,000 14,000 80 80
8,000 70 70
number of issues

12,000
7,000 60 60
10,000
6,000 50 50
8,000
USD mn

5,000
40 40
4,000 6,000
30 30
3,000
4,000 20 20
2,000
2,000 10 10
1,000
0 0 0 0
1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10
1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

Source: Zawya, NCBC Research Source: Zawya, NCBC Research

JULY 2010 4
 GCC DEBT MARKETS

A turnaround in government issuance

Government activity has in recent years become an increasingly important driver of
the GCC debt capital markets with issuers such as Qatar and Abu Dhabi playing an
active role in fostering its development. Government issuance once again revived in
Q2 after a difficult beginning to the year. Sovereign sukuk accounted for four out of
the total five GCC sukuk issuances during 2Q10. The Central Bank of Bahrain issued
six short-term sukuk valued at an aggregate USD175.8mn while Qatar placed an 8-
year QAR10bn (USD2.75bn) local currency issue, split equally between sukuk and
conventional bonds, with domestic banks. Nine domestic banks participated in the
programme, with the conventional banks buying QAR1bn each and their Islamic
Bahrain and Qatar led the
counterparts subscribing to QAR1.25bn each from the issue. The Qatari government
return of GCC sovereign
further issued QAR2bn (USD549.7mn) in heavily oversubscribed 5-year domestic
issuers to the primary
market in Q2
bonds, rolling over old debt. Qatar’s domestic issuances are a part of the
government’s program to develop a local debt market and provide new vehicles to
mobilize excess liquidity in the banking sector, partly in a bid to contain inflationary
pressures. The aggregate value of GCC sovereign sukuk issuances in 2Q10 --
USD1.5bn -- was almost eight times the USD0.2bn seen in 1Q10. In addition,
following a USD1.25bn issue of 10-year bonds in March, Bahrain's sovereign wealth
fund Mumtalakat issued a five-year USD750mn bond in June.

The positive trend in sovereign issuance looks set to continue and the Qatar
Exchange may even follow Tadawul’s footsteps and start secondary bond and sukuk
trading later this year. Reflecting the broader positive effect of government activity,
Qatari Diar, the property arm of Qatar’s sovereign wealth fund launched a
USD3.5bn dual tranche bond in July. This was the government’s first international
offering since November 2009 when it raised USD7bn through a multi-tranche bond
sale.

Exhibit 8: GCC sovereign sukuk issues Exhibit 9: GCC corporate sukuk issues

Value (LHS) No of deals (RHS) Value (LHS) No of deals (RHS)

2,500 9
3000 3
8
2,000 2500
Value (USDmn)

7
Value (USDmn)

6 2000 2
1,500
5
1500
4
1,000
3 1000 1

500 2
500
1
0 0
0 0
1Q09 2Q09 3Q09 4Q09 1Q10 2Q10
1Q09 2Q09 3Q09 4Q09 1Q10 2Q10

Source: Zawya, NCBC Research Source: Zawya, NCBC Research

By contrast to the recovery in the sovereign space, 2Q10 saw only one corporate
Corporate sukuk issuance sukuk issuance, highlighting the continued vulnerability of this market to the
was depressed during
uncertain economic backdrop. Corporate involvement in the GCC sukuk market has
2Q10 as the quarter saw
been minimal since the beginning of 2009 with the exception of 3Q09 where
only a single issue from the
USD2.7bn was raised through two corporate issues. Symptomatic of shaky investor
Saudi Electricity Company
confidence, corporates postponed their bond issuance plans waiting for more

JULY 2010 5

Secondary market activity
declined significantly with
the Tadawul registering
only nine trades during
2Q10
The near-term outlook for
the GCC debt market
remains uncertain amidst
global concerns and rising
inflationary pressures
JULY 2010
GCC DEBT MARKETS
favorable market conditions. The Bank of Bahrain and Kuwait, a Bahrain-based
bank delayed its benchmark bond issue which was set to launch in May. Sabic
Capital, a unit of Saudi Basic Industries Corporation also delayed its sukuk sale in
the face of investor expectations of higher yields. The J P Morgan Emerging Markets
Bond Index Plus, which measures the premium investors demand to hold debt of
developing nations over US Treasuries reached an eight-month high of 354.7 basis
points in May.
Secondary market activity depressed
In spite of the primary market revival, secondary trading on Tadawul was
characterized by marked drops in both trading values and volumes. The second
quarter of 2010 saw a significant decline in the number of trades to nine from 57 in
the previous quarter. The total value of registered trades fell to SAR46.6mn from
SAR365.7mn in the preceding three months. By contrast, the total volume of equity
trades was up 33.4% during 2Q10 while turnover increased by 39.8%.
Exhibit 10: Sukuk trading on Tadawul
Period Total volume (SAR) Total value (SAR) No of trades
2Q09 11,380,000 11,269,575 27
3Q09 15,230,000 15,043,435 26
4Q09 4,650,000 4,657,000 6
1Q10 367,390,000 365,681,600 57
2Q10 46,600,000 46,576,000 9
Source: Tadawul, NCBC Research
Planned capital spending improves outlook
Even as global economic uncertainties will inevitably persist, the steady progress of
corporate restructuring in the region has boosted confidence. Credit default swaps
linked to Dubai government’s debt narrowed by 167 basis points on June 24 from a
year high of 651 on February 15. In spite of the progress, it is far from clear that
the risks associated with the Dubai government-related corporate entities have
been fully identified or dealt with. Dubai Holding and its subsidiaries still owe banks
USD12bn with three-quarters of the total obligations attributable to Dubai Holding’s
two investment companies, Dubai Group LLC and Dubai International Capital LLC.
Echoing the eruption of the Dubai World crisis in November, Dubai International
Capital sought a three-month extension on some of its loan payments in May.
Apart from global concerns, rising inflationary pressures pose an additional
challenge for fixed-income debt instruments. Consumer prices in the GCC region
have been on a fairly consistent upward trend since late last year with Saudi Arabia
leading the way with a rise to a 13-month high of 5.5% in June. Although the
headline figures elsewhere are lower, the basic dynamic is similar, with less and
less relief expected from the real estate market correction while prices pressures
are once again beginning to manifest themselves in food. Steadily increasing
inflationary expectations will likely put pressure on yields expectations as investors
seek compensation for the price pressures. This could act as a dampener for
corporates planning to come out with bond issues in the coming quarters.
6

Planned capital
expenditure and
infrastructure investments
are likely to drive the GCC
debt market in the coming
quarters
JULY 2010
GCC DEBT MARKETS
Exhibit 11: Easing sovereign CDS spreads (basis points)
1200.0
1000.0
800.0
600.0
400.0
200.0
0.0
Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10
Bahrain Dubai Abu Dhabi Qatar Saudi Arabia
Source: Bloomberg, NCBC Research
In spite of the uncertainties, the strong pipeline of large infrastructure projects
should help support the bond/sukuk given the relative lack of alternatives for long-
term finance outside of government expenditure. At this, periods of market stress
seem to result in issues being delayed rather than actually dropped. The regional
governments stand ready to bring forward some of their capital expenditure
projects as a way of supporting aggregate demand at a time of continued global
uncertainty. The Saudi government recently announced that it will stick to its 2010
budget spending of SAR540bn. What is less clear is the way in which governments
will utilize the debt capital markets to fund their spending. Saudi Finance Minister
Ibrahim al Assaf recently stated that the Kingdom does not plan to roll over a
USD7.7bn Riyal-denominated government bond maturing in January 2011 and,
moreover, intends to stay away from the debt market until it has brought down its
debt to 10% of GDP. This position is further supported by the rebounding oil prices
which have ensured that the GCC government’s finances are in a strong position
even at a time of elevated spending. However, some other regional governments
have taken a different view and even in Saudi Arabia, some large government-
related entities have the potential to be key players in the continued development
of the market.
Even as regional sovereigns will pursue divergent strategies in the near term,
improving investor sentiment in the GCC will encourage corporate bonds/sukuks in
the future. Some recently announced issues in the GCC region include:
• Qatari Diar Finance, the property wing of Qatar’s sovereign wealth fund,
concluded its dual tranche bond sale on July 14. The USD3.5bn issue
comprised USD1.0bn of five-year notes priced 180 basis points over
comparable US Treasuries and USD2.5bn of 10-year notes priced to yield
190 basis points over US Treasury bonds.
• Saudi Arabia-based Ahmed Salem Bugshan Group (ASB) plans to raise
USD100mn through five-year sukuk to fund projects including real-estate
development and a large steel plant.
• Qatar Islamic Bank, the biggest Shariah-compliant bank in Qatar plans to
sell a USD750mn sukuk in the second half of the year.
7
 GCC DEBT MARKETS

• The Saudi Binladin Group issued a SAR700mn (USD187mn) Sukuk al

murabaha in July. The privately placed sukuk was offered to Saudi
investors and issued through Saudi Binladin Sukuk Co.

• Following its offering USD1.9bn in May, Saudi Electricity Company plans to

issue its fourth sukuk in 2011.

• Nakheel, which is currently in the process of restructuring its USD10.5bn

debt will likely issue bonds in mid-July in order to settle debt with its
contractors

• The state-owned Saudi Aramco and Total SA expect to raise USD8bn in

debt financing for a joint refinery and petrochemical project in months to
come.

• Oman's central bank plans to issue five-year development bonds worth

OMR100mn (USD259.7mn) with a 4% coupon. The subscription period will
run from June 28 to July 15 for the bonds which will be issued on July 26
and mature on July 26 2015.

Exhibit 12: Highlights of the sukuk pipeline

Amount Subscription
Organizations Country
(USD mn) Date
ADIB Tier 1 Sukuk UAE 544.5 2010
Taqa Malaysian Sukuk UAE N/A 2010
Ahmed Salem Bugshan Sukuk Saudi Arabia 100 2010
Al Aqeeq Sukuk Saudi Arabia 186.7 2010
Al Mazaya Holding Sukuk Kuwait N/A 2010
Al Oula Sukuk Saudi Arabia 800.1 2010
Al Safwa Group Sukuk Kuwait 150 2010
Al Salaam Bank - Bahrain Sukuk Bahrain 227.3 2010
Dar Al Dhabi Sukuk Kuwait 344.5 2010
Dubai Bank Sukuk (Tranche 1) UAE 500 2010
Ekttitab Sukuk Kuwait 150-200 2010
Emaar Sukuk Limited UAE 2,000 2010
First Investment Company Sukuk Kuwait 155 2010
Dubai Sukuk UAE N/A 2010
Islamic Development Bank 2010 Sukuk Saudi Arabia N/A 2010
Ithmaar Mandatory Convertible Sukuk Bahrain N/A 2010
Jabal Omar Sukuk Saudi Arabia N/A 2010
Nakheel Sukuk 4 UAE N/A 2010
Tabreed 2010 Sukuk UAE N/A 2010
QIB Sukuk Qatar 750 2010
Jubail Refining and Petrochemical Company Saudi Arabia USD997.7 2010
Sukuk
Saudi Electricity Sukuk IV Saudi Arabia N/A 2011
Unicorn Capital Saudi Arabia Sukuk Saudi Arabia N/A 2010
Source: Zawya, NCBC Research

JULY 2010 8
 GCC DEBT MARKETS

Exhibit 13: Key sukuk and conventional bond issuances in 2Q10

Issuer Issue date Maturity Amount issued

(USD mn)
Sovereign sukuk issuance
Qatar Sovereign Sukuk 6/1/2010 6/1/2018 1,373.0
Central Bank of Bahrain (ijarah) 5/18/2010 11/18/2010 26.5
Central Bank of Bahrain (ijarah) 4/26/2010 7/26/2010 31.8
Central Bank of Bahrain (ijarah) 4/20/2010 10/20/2010 26.5
Central Bank of Bahrain (al salam) 4/28/2010 7/28/2010 32.0
Central Bank of Bahrain (al salam) 6/2/2010 9/1/2010 32.0
Central Bank of Bahrain (al salam) 6/30/2010 9/29/2010 32.0
Corporate sukuk issuance
Saudi Electricity Company Sukuk III 5/10/2010 5/10/2017 1,866.8
Sovereign bond and T-bill issuance
Bahrain Treasury Bill 5/10/2010 7/14/2010 66.6
Bahrain Treasury Bill 4/14/2010 7/21/2010 66.6
Bahrain Treasury Bill 4/21/2010 8/4/2010 66.6
Bahrain Treasury Bill 5/5/2010 8/11/2010 66.6
Bahrain Treasury Bill 5/12/2010 8/18/2010 66.6
Bahrain Treasury Bill 5/19/2010 8/25/2010 66.6
Bahrain Treasury Bill 5/26/2010 9/9/2010 66.6
Bahrain Treasury Bill 6/8/2010 9/15/2010 66.6
Bahrain Treasury Bill 6/16/2010 9/22/2010 66.6
Bahrain Treasury Bill 6/23/2010 10/10/2010 53.3
Bahrain Treasury Bill 4/11/2010 12/12/2010 53.3
Bahrain Treasury Bill 6/13/2010 6/9/2011 133.2
Mumtalakat 6/10/2010 6/30/2015 750.0
Kuwait Treasury Bills 6/30/2010 7/27/2010 641.5
Kuwait Treasury Bills 4/27/2010 8/10/2010 242.7
Kuwait Treasury Bills 5/11/2010 8/24/2010 440.4
Kuwait Treasury Bills 5/25/2010 9/5/2010 450.8
Kuwait Treasury Bills 6/6/2010 9/13/2010 443.8
Kuwait Treasury Bills 6/14/2010 12/8/2010 558.3
Kuwait Government Bonds 6/9/2010 4/6/2011 277.4
Kuwait Government Bonds 4/7/2010 4/13/2011 173.4
Kuwait Government Bonds 4/14/2010 4/20/2011 294.7
Kuwait Government Bonds 4/21/2010 4/27/2011 242.7
Kuwait Government Bonds 4/28/2010 5/4/2011 433.4
Kuwait Government Bonds 5/5/2010 5/11/2011 208.0
Kuwait Government Bonds 5/12/2010 5/9/2012 114.4
Kuwait Treasury Bills 5/12/2010 7/29/2010 260.1
Kuwait Treasury Bills 4/29/2010 8/2/2010 260.1
Central Bank of Oman CD 5/3/2010 7/14/2010 506.0
Central Bank of Oman CD 6/16/2010 7/21/2010 868.6
Central Bank of Oman CD 6/23/2010 7/28/2010 1,312.0
Qatar Government Bonds 6/1/2010 6/1/2018 1,373.0
Qatar Government Bonds 6/1/2010 6/30/2015 549.7
Corporate bond issuance
Dubai Electricity & Water Authority 6/30/2010 4/22/2015 1,000.0
United Real Estate 6/22/2010 6/22/2013 39.9
United Real Estate 6/22/2010 6/22/2013 98.8
Gulf International Bank 4/27/2010 4/27/2015 934.8
National Bank of Abu Dhabi PJSC 6/21/2010 6/21/2012 44.0
Bank Muscat SAOG 5/31/2010 5/31/2011 39.1
Source: Bloomberg, NCBC Research

JULY 2010 9
 GCC DEBT MARKETS

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any copy hereof may be distributed in any jurisdiction outside the Kingdom of Saudi Arabia where its distribution may be restricted by law.
Persons who receive this document should make themselves aware, of and adhere to, any such restrictions. By accepting this document, the
recipient agrees to be bound by the foregoing limitations.

NCB Capital is authorised by the Capital Market Authority of the Kingdom of Saudi Arabia to carry out dealing, as principal and agent, and
underwriting, managing, arranging, advising and custody, with respect to securities under license number 37-06046. The registered office of
which is at Al Mather street in Riyadh, P.O. Box 22216, Riyadh 11495, Kingdom of Saudi Arabia.

JULY 2010