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Concerns over an imminent sharp rate hike in the US rattled global markets, whose reverberation was felt on the Qatar Stock Exchange, which on Monday lost a huge 165 points in key index and QR9bn in capitalisation. The transport, banking and telecom counters witnessed higher than average selling pressure as the 20-stock Qatar Index plunged 1.19% to 13,801.16 points, although it touched an intraday high of 13,995 points. The local retail investors were increasingly net sellers in the market, whose year-to-date gains were at 18.71%. The Gulf funds were also increasingly net profit takers in the bourse, whose capitalisation tanked more than QR9bn or 1.21% to QR770.15bn, mainly on the back of mid and small cap segments. The Islamic index was seen declining faster than the other indices in the market, which saw a total of 0.07mn exchange traded funds (sponsored by Masraf Al Rayan and Doha Bank) valued at QR0.45mn changed hands across 15 deals. The Arab individuals turned bearish in the market, which saw no trading of sovereign bonds. The domestic funds’ net buying was seen weakening drastically in the bourse, which saw no trading of treasury bills. The Total Return Index shrank 1.19% to 28,269.26 points, the All Share Index by 1.2% to 4,383.49 points and the Al Rayan Islamic Index (Price) by 1.33% to 3,014.43 points. The transport sector index plummeted 2.38%, telecom (1.93%), banks and financial services (1.38%), insurance (1.12%), real estate (0.95%) and industrials (0.77%); while consumer goods and services rose 0.18%. More than 80% of the traded constituents were in the red in the main market and included Mannai Corporation, Doha Insurance, Milaha, Aamal Company, Estithmar Holding, QNB, QIIB, Gulf International Services, QLM, Ezdan, Barwa and Ooredoo. In the venture market, Al Faleh Educational Holding saw its shares depreciate in value. Nevertheless, Qatari German Medical Devices, Ahlibank Qatar, Woqod, Qatar National Cement and Dlala were among the gainers in the main market. In the junior bourse, Mekdam Holding saw its shares appreciate in value. Qatari individuals’ net selling increased considerably to QR72.72mn compared to QR46.27mn on August 21. The Gulf institutions’ net selling grew perceptibly to QR10.64mn against QR7.59mn the previous day. The Arab individuals turned net sellers to the tune of QR5.12mn compared with net buyers of QR11.33mn on Sunday. The Gulf retail investors were net sellers to the extent of QR2.88mn against net buyers of QR1.08mn on August 21. The domestic institutions’ net buying declined noticeably to QR27.17mn compared to QR45.84mn the previous day. However, the foreign institutions’ net buying expanded significantly to QR66.09mn against QR2.48mn on Sunday. The foreign individuals’ net profit booking weakened markedly to QR1.9mn compared to QR6.87mn on August 21. The Arab funds had no major net exposure for the second consecutive day. Total trade volume in the main market shrank 9% to 203.43mn shares, while value shot up 26% to QR774.42mn and deals by 31% to 18,494. In the venture market, trade volumes plunged 46% to 0.28mn equities, value by 58% to QR1.53mn and transactions by 58% to 76.    

The average share of bad loans to banks' total loan book stood at 2.7% in Qatar during the second quarter (Q2) of 2022, which is lower than the Gulf average of 3.4%, according to Kamco Invest. Qatari banks had the highest cover against Stage 3 bad loans in the Gulf Co-operation Council (GCC) during the quarter at 99.2%, which is much higher than the Gulf average of 71.7% during the review period, Kamco Invest said in its latest report. The average share of bad loans (Stage 3 loans) on GCC banks’ loan books declined slightly to 3.4% during Q2-2022 compared to 3.6% at the end of first quarter (Q1)-2022 and 4.1% at the end of Q1-2021. Non-performing loans for the UAE banks continued to remain the highest in the GCC at 5.5% of aggregate gross loans at the end of Q2-2022, which was 30bps (basis points) below Q1-2022 share and significantly below Q2-2021 level of 6%. On the other hand, Kuwaiti banks reported the lowest bad loans on their books at 1.6% at the end of Q2-2022, in line with Q1-2022 while a steep drop from 2.7% last year. The report said the aggregate provision cover that GCC banks made against Stage 3 bad loans stood at 71.7% at the end of Q2-2022. The provision cover has increased consistently over the last three quarters when it stood at 69.8% in Q1-2022 and 67.1% at the end of Q4-2021. Bahraini banks' aggregate provisions stood at 70.5% during Q2-2022 while the ratio for the rest of the region remained below the 70% mark. Highlighting that loan-to-deposit ratio fell below the 80% mark for the first time in seven quarters; Kamco Invest said aggregate net loan growth during Q2-2022 stood at 1.9% on a quarterly basis for the GCC banking sector to $1.71tn, mainly led by growth reported by Saudi and the UAE-listed banks. The growth in customer deposits was positive across the GCC during Q2-2022. The aggregate customer deposits' quarter-on-quarter growth for the sector was at a four-quarter high of 4% while the year-on-year growth stood at 9.4% to $2.16tn at the end of Q2-2022. Total bank revenue for the GCC banks registered a healthy q-o-q growth of 4.8% during Q2-2022 to $24.9bn compared to $23.7bn during Q1-2022. The q-o-q increase was led by a broad-based improvement in revenues across the GCC during the quarter. Finding that the increase was mainly led by higher interest rates across the GCC after central banks in the region hiked policy rates following the rate hikes by the US Fed; Kamco said as a result, net interest income increased by a strong 9.6% to $17.1bn. However, this increase was partially offset by a quarter-on-quarter drop in non-interest income that reached $7.7bn in Q2-2022 registering a decline of 4.5%. The drop in non-interest income reflected the quarterly decline in global and regional financial markets during the quarter that affected investments banks’ balance sheet.    

The Qatar Stock Exchange Sunday opened the week weak as its key index lost more than 51 points, although more than 55% of the traded constituents extended gains to investors. The Gulf funds were seen net sellers as the 20-stock Qatar Index settled 0.37% lower at 13,967.04 points, although it touched an intraday high of 14,040 points. The foreign individuals were also seen net profit takers in the market, whose year-to-date gains were at 20.14%. The domestic funds’ net buying weakened substantially in the bourse, whose capitalisation declined more than QR1bn or 0.19% to QR779.57bn, mainly on the back of microcap segments. The Islamic index was seen gaining vis-à-vis declines in the other indices in the market, which saw a total of 0.13mn exchange traded funds (sponsored by Masraf Al Rayan and Doha Bank) valued at QR1.61mn changed hands across 67 deals. The foreign institutions’ net buying weakened considerably in the market, which saw no trading of sovereign bonds. The Gulf individuals were seen net buyers in the bourse, which saw no trading of treasury bills. The Total Return Index fell 0.37% to 28,609.04 points and the All Share Index by 0.4% to 4,436.7 points, while the Al Rayan Islamic Index (Price) gained 0.32% to 3,055.18 points. The banks and financial services sector index shrank 1.3%, telecom (0.31%) and insurance (0.24%); while transport gained 2.64%, real estate (0.78%), industrials (0.56%) and consumer goods and services (0.24%). Major losers in the main market included Qatari General Insurance and Reinsurance, Qatar First Bank, Qatar National Cement, Commercial Bank, Qatar Industrial Manufacturing, QNB, Qatar Islamic Bank and Doha Bank. In the venture market, both Al Faleh Educational Holding and Mekdam Holding saw their shares depreciate in value. Nevertheless, Widam Food, Doha Insurance, Milaha, Gulf International Services, Ezdan, Dlala, Qatari Investors Group and Gulf Warehousing were among the gainers in the main market. The Gulf institutions turned net sellers to the tune of QR7.59mn compared with net buyers of QR9.22mn on August 18. The foreign individuals were net sellers to the extent of QR6.87mn against net buyers of QR6.03mn last Thursday. The domestic institutions’ net buying declined noticeably to QR45.84mn compared to QR69.48mn the previous trading day. The foreign institutions’ net buying shrank perceptibly to QR2.48mn against QR16.5mn on August 18. However, the Arab individuals turned net buyers to the tune of QR11.33mn compared with net sellers of QR14.91mn last Thursday. The Gulf retail investors were net buyers to the extent of QR1.08mn against net sellers of QR2.58mn the previous trading day. Qatari individuals’ net selling weakened considerably to QR46.27mn compared to QR76.56mn on August 18. The Arab funds had no major net exposure against net profit takers to the tune of QR7.18mn the previous day. Total trade volume in the main market shrank 41% to 224.23mn shares, value by 54% to QR616.84mn and deals by 37% to 14,091. In the venture market, trade volumes stood at 0.52mn equities, value at QR3.63mn and transactions at 179.

The manufacturing sector, which contributed QR18bn to Qatar’s gross domestic product in the first quarter, saw as many as 33 new factories being set up in the second quarter of 2022, indicating the pace with which the country is advancing its diversification strategy. The infographics posted on the Ministry of Commerce and Industry’s official Twitter handle showed that the value of exports of local origin amounted to QR124bn. A KPMG report had said the government’s effort to boost small and medium enterprises sector manufacturing and the shifting focus towards non-hydrocarbon sector exports is expected to drive the production value for manufacturing sector by 30% from 2019 to 2025. The ‘Industry Indicators Second Quarter 2022’ also showed that 98 new domestic products entered the market and the sector provided an additional employment to 1,638 factory workers. The KPMG report had said the number of people employed is expected to grow from 85,000 to 101,000 in 2025. The industrial manufacturing production index stood at 99.6 in May 2022, it said, adding 83% of the factories were in compliance with the industrials requirements. The average time taken for licensing services within the industrial sector was three days, indicating the government efficiency and the ease of doing business. "To drive industrial sector growth, Qatar should look beyond its boundaries and drive export of Qatari products to the global markets. Developing upstream and midstream industries can enhance raw material availability, substitute imports and strengthen SME competitiveness in the export market. Exports can help overcome the limitations of a small domestic market, drive resident population growth and enhance in-country value," said Adhishree Jakali, associate director, Advisory, KPMG Qatar.

Gulf International Services (GIS) - the umbrella organisation of Gulf Drilling International, Gulf Helicopters, Al Koot and Amwaj - is in continuous discussion with different key stakeholders to restructure its debt. Highlighting that the current levels of debt continue to weigh on the group's net earnings, the company said finance cost is one of the key cost elements, and specifically limits the drilling segment’s ability to accomplish its desired profitability. "GIS management is in continuous discussion with different key stakeholders to restructure the debt with an aim to provide greater flexibility to manage liquidity and ease pressure on the group’s financial position," it said, highlighting that total debt at the group level stood at QR4.29bn at the end of June 30, 2022. The drilling segment saw new contracts being won in Saudi Arabia and Maldives for liftboats, building international footprints for the segment, while enhancing asset utilisation, as both the liftboats remained operational throughout the second quarter of 2022. This was in addition to continued positive impacts on the segment’s performance for the first half of 2022, from new rig day-rates for the offshore fleet applied starting from the mid of last year and redeployment of two previously suspended onshore rigs during the third quarter of 2021. The segment had successfully renewed contracts for certain offshore rigs with an extended term ranging from two to five years, improving segment’s future financial position. During the second quarter of 2022, international operations of its aviation segment witnessed further growth from Angola’s contract revision with better terms on account of better asset utilisation. An aircraft was mobilised to the Angolan fleet from the Qatari fleet to cover the additional flying hours as per the new contract. Also, another aircraft was mobilised to the Turkish fleet from Qatar to meet the upcoming increased demand from the market. The insurance segment managed to build up its strong performance by further expanding its general line of business. However, the medical insurance business witnessed loss of certain contracts. "Efforts are underway to explore new opportunities within domestic retail and small and medium enterprises markets. Performance of the segment investment portfolio remained wavered due to volatilities in capital markets," the company said. The catering segment improved its performance on the back of realisations from the new contract won during last year. Additionally, certain contracts have been renewed within the manpower segment, with broader scope improving overall service volumes for the segment. Moreover, the segment was able to demonstrate improved performance, as industry specific pandemic-linked restrictions gradually started to subside.

Robust earnings of the listed companies in the first half and a lower than expected inflation in the US lifted sentiments in the Qatar Stock Exchange, which otherwise saw weakened trading volumes this week. The foreign and Gulf funds were bullish as the 20-stock Qatar Index surged 2.75% and capitalisation expanded about QR19bn this week which saw Industries Qatar (IQ) report net profit of QR5.4bn in the first half (H1) of this year. The banking and industrials counters witnessed higher than average demand this week which saw Gulf International Services (GIS) report H1 net profit at QR168mn. More than 57% of the traded constituents extended gains to investors this week which saw Mesaieed Petrochemical Holding report net profit of QR1bn in H1, 2022. The Arab individuals were also seen net buyers this week which saw Milaha report net profit of QR641mn in H1, 2022. However, local retail investors were net sellers this week which saw a total of 0.08mn Masraf Al Rayan-sponsored exchange traded fund QATR worth QR0.22mn trade across 24 deals. The Gulf individuals were also net sellers this week which saw as many as 1.07mn Doha Bank-sponsored QETF valued at QR14.19mn change hands across 327 transactions. The overall trading turnover and volumes were on the decline in the main market this week, which saw the industrials and real estate sectors together constitute about 67% of the total trade volume. Market capitalisation zoomed about QR19bn or 2.53% to QR762.07bn, mainly on large and midcap segments this week, which saw no trading of sovereign bonds and treasury bills. The Total Return Index shot up 2.75%, All Share Index by 2.62% and All Islamic Index by 1.86% this week. The banks and financial services sector index surged 3.64%, industrials (3%) and transport (2.3%); while telecom declined 3.61%, consumer goods and services (0.53%), realty (0.21%) and insurance (0.11%) this week. Major gainers in the main market included GIS, Estithmar Holding, Milaha, Qamco, Commercial Bank, QNB, Qatar Islamic Bank, Qatar Industrial Manufacturing, Qatar National Cement, IQ, Ezdan and Gulf Warehousing. In the venture market, both Al Faleh Educational Holding and Mekdam Holding saw their stocks appreciate in value. Nevertheless, Qatar Cinema and Film Distribution, Dlala, Ooredoo, Qatar General Insurance and Reinsurance, Salam International Investment, Baladna, Qatari Investors Group and Aamal Company were among the losers in the main market. In the main market, the industrials sector accounted for 50% of the total trade volume, realty (16%), consumer goods and services (15%), banks and financial services (14%), transport and telecom (2% each) and insurance (1%) this week. In terms of value, the industrials sector’s share was 46%, banks and financial services (30%), consumer goods and services (10%), real estate (7%), transport (4%), telecom (2%) and insurance (1%) this week. The foreign institutions were net buyers to the tune of QR134.4mn, while foreign individuals were net sellers to the extent of QR1.3mn this week. The Gulf funds were net buyers to the tune of QR51.75mn; whereas the Gulf retail investors were net sellers to the extent of QR15.6mn this week. The Arab individuals were net buyers to the tune of QR7.16mn, while the Arab institutions were net sellers to the extent of QR0.03mn this week. In the case of local retail investors and domestic funds, both were net profit takers to the tune of QR148.82mn and QR27.56mn respectively this week. Total trade volume in the main market fell 24% to 1.08mn shares, value by 18% to QR3.02bn and deals by 17% to 82,746. The venture market’s trade volume stood at 1.05mn stocks, value at QR5.35mn and transactions at 298.

Reflecting the optimism in the global markets on reports of softer-than-expected inflation in the US, the Qatar Stock Exchange Thursday surged 175 points and its key index surpassed 13,700 points. Strong buying at the banking and industrials counters helped the 20-stock Qatar Index gain 1.29% to 13,743.9 points, recovering from an intraday low of 13,592 points. The foreign and Gulf institutions were increasingly into net buying in the market, whose year-to-date gains improved to 18.22%. The foreign individuals turned bullish in the bourse, whose capitalisation gained more than QR8bn or 1.11% to QR762.07bn, mainly on the back of large cap segments. The Islamic index was seen outperforming the other indices in the market, which saw a total of 0.94mn exchange traded funds (sponsored by Masraf Al Rayan and Doha Bank) valued at QR12.31mn changed hands across 263 deals. The domestic institutions were increasingly net buyers in the market, which saw no trading of sovereign bonds. However, the local retail investors turned net sellers in the bourse, which saw no trading of treasury bills. The Total Return Index rose 1.29% to 28,151.96 points, the All Share Index by 1.23% to 4,363.21 points and the Al Rayan Islamic Index (Price) by 1.08% to 2,964.73 points. The banks and financial services sector index shot up 1.48%, industrials (1.52%), transport (0.88%), consumer goods and services (0.78%) and real estate (0.31%); while insurance and telecom declined 0.25% each. More than 65% of the traded constituents extended gains in the main market with major gainers being Estithmar Holding, Qamco, QIIB, Al Khaleej Takaful, Gulf International Services, QNB, Commercial Bank, Masraf Al Rayan, Industries Qatar, Milaha and Gulf Warehousing. In the venture market, Mekdam Holding saw its shares appreciate in value. Nevertheless, Doha Insurance, Qatari German Medical Devices, Ezdan, Mannai Corporation and Mesaieed Petrochemical Holding were among the losers in the main market. In the juniour bourse, Al Faleh Educational Holding saw its shares depreciate in value. The foreign institutions’ net buying increased notably to QR27.84mn compared to QR22.05mn on August 10. The Gulf institutions’ net buying grew markedly to QR27.68mn against QR16.86mn the previous day. The domestic institutions’ net buying strengthened noticeably to QR13.16mn compared to QR2.28mn on Wednesday. The foreign individuals turned net buyers to the tune of QR2.86mn against net sellers of QR3.78mn on August 10. However, Qatari individuals’ net selling strengthened considerably to QR56.64mn compared to QR27.99mn the previous day. The Gulf retail investors’ net profit booking grew marginally to QR7.55mn against QR6.94mn on Wednesday. The Arab individuals’ net selling expanded perceptibly to QR7.35mn compared to QR2.39mn on August 10. The Arab funds had no major net exposure against net profit takers of QR0.12mn the previous day. Total trade volume in the main market grew 74% to 285.61mn shares, value by 67% to QR787.8mn and deals by 31% to 18,926. In the venture market, trade volumes stood at 0.33mn equities, value at QR1.11mn and transactions at 46.  

*The amendments provide opportunities that allow national micro, small and medium-sized firms to grow; increase the number of tenders available to them and facilitate their cooperation with the public sector, and give preference to national products In an overhaul of the tender and auction laws, Qatar has incorporated in-country value (ICV) into the purchase and procurement process, especially financial assessment, as part of efforts to support the small and medium companies. This has been done through amendments with a view to enhance governance and procurement processes. The amendments to the executive provisions of Law No. 24 of 2015, regulating tenders and auctions, were highlighted by the top officials of the Ministry of Finance at a press conference Tuesday. The amendments come within the continuous efforts of Qatar to support economic activities in the non-oil sectors with increasing trend towards enhancing the role of the private sector in implementing a wide range of development projects, said the ministry officials. One of the most prominent of these amendments is the addition of a definition of ICV, defining it as the total expenses incurred by the contractor, supplier, or service provider within the country to develop national businesses, services or human resources to stimulate productivity in the local economy. The ICV will also provide valuable business opportunities for local business owners or attract investors who are planning to set up their businesses in the country. The amendments aim to facilitate not only the completion of procurement processes in relation to the ICV programme in Qatar but also the implementation of ICV procedures in procurement processes, in order to contribute to the sustainable economic growth. Through the amendments, the country aims to give preference to national products and the ICV and award bids to those who submit the least expensive monetary bids after calculating the local value ratio. The amendments provide opportunities that allow national micro, small and medium-sized firms to grow; increase the number of tenders available to them and facilitate their cooperation with the public sector. It seeks to exempt national micro companies as well as small and medium companies from providing temporary and insurance, and from paying for tender documents valued at less than QR1mn. The amendments seek to permit limited participation in tenders valued at less than QR5mn to micro, small or medium-sized companies. The amendments included the development and acceleration of procurement in government agencies by introducing a specific timeframe to organise transactions and complete them within 60 working days, setting a deadline of 20 working days from the date of submitting the final insurance to sign the contract and setting a deadline of 90 working days to start the execution of the contract after signing. In 2021, the Ministry of Finance launched the stimulus programme, which included three main pillars as Qatar ICV programme, the promotion of the development of small and medium-sized enterprises and the environmental, social, and general governance for the financial sector (ESG) to achieve Qatar Vision 2030. The "stimulus" programme targets the development of the private sector and its important role in economic growth, and its contribution to a sustainable economy through production, job creation and industrialisation as well as increased exports and gross domestic product.

An across the board selling, particularly in the telecom, transport and insurance counters, Tuesday dragged the Qatar Stock Exchange more than 44 points. The Arab individuals were seen net profit takers as the 20-stock Qatar Index settled 0.33% to 13,518.81 points, although it touched an intraday high of 13,611 points. The foreign institutions’ weakened net buying also had its influence in the market, whose year-to-date gains were at 16.28%. More than 55% of the traded stocks were in the red in the bourse, whose capitalisation eroded about QR4bn or 0.49% to QR749.45bn, mainly on the back of small and microcap segments. The Islamic index was seen declining faster than the other indices in the market, which saw a total of 0.12mn exchange traded funds (sponsored by Masraf Al Rayan and Doha Bank) valued at QR1.24mn changed hands across 42 deals. The Gulf retail investors were seen net sellers in the market, which saw no trading of sovereign bonds. The Arab funds turned net profit takers in the bourse, which saw no trading of treasury bills. The Total Return Index shed 0.33% to 27,690.91 points, All Share Index rose 0.36% to 4,288.09 points and Al Rayan Islamic Index (Price) by 0.47% to 2,935.63 points. The telecom sector index shrank 1.05%, transport (0.92%), insurance (0.81%), real estate (0.43%), industrials (0.43%), banks and financial services (0.22%) and consumer goods (0.08%). Major losers in the main market included Qatar General Insurance, Estithmar Holding, Doha Insurance, Alijarah Holding, QIIB, Medicare Group, Qatari Investors Group, Qamco, Ezdan, Ooredoo and Nakilat. In the venture market, Al Faleh Educational Holding saw its shares depreciate in value. Nevertheless, Gulf International Services, Qatari German Medical Devices, Qatar Islamic Insurance, Mannai Corporation, Doha Bank, Vodafone Qatar and Gulf Warehousing were among the gainers in the main market. In the junior bourse, Mekdam Holding saw its shares appreciate in value. The Arab individuals turned net sellers to the tune of QR6.18mn compared with net buyers of QR12.39mn on August 8. The Gulf retail investors were net sellers to the extent of QR1.01mn against net buyers of QR0.4mn on Monday. The Arab funds turned net profit takers to the tune of QR0.01mn compared with net buyers of QR0.1mn the previous day. The foreign institutions’ net buying decreased noticeably to QR24.37mn against QR50.26mn on August 8. However, the Gulf institutions were net buyers to the extent of QR10.43mn compared with net sellers of QR0.56mn on Monday. The foreign individuals turned net buyers to the tune of QR0.26mn against net sellers of QR0.89mn the previous day. The domestic institutions’ net selling declined considerably to QR11.03mn compared to QR36.56mn on August 8. Qatari individuals’ net profit booking weakened markedly to QR16.8mn against QR25.15mn on Monday. Total trade volume in the main market was down 2% to 247.84mn shares and value by 8% to QR688.3mn but on 13% jump in transactions to 21,260. In the venture market, trade volumes stood at 0.16mn stocks, value at QR1.09mn and deals at 56.

Strong earnings, especially in the underlying stocks, brightened the sentiments on the Qatar Stock Exchange (QSE), whose key index vaulted 183 points to inch towards 13,600 levels. The industrials and transport counters witnessed higher than average demand as the 20-stock Qatar Index shot up 1.27% to 13,562.2 points, recovering from an intraday low of 13,414 points. The foreign institutions were increasingly net buyers in the market, whose year-to-date gains improved to 16.66%. More than 68% of the traded stocks extended gains to investors in the bourse, whose capitalisation grew more than QR8bn or 1.12% to QR753.11bn, mainly on the back of midcap segments. The Islamic index was seen gaining slower than the main index in the market, which saw a total of 0.03mn exchange traded funds (sponsored by Masraf Al Rayan and Doha Bank) valued at QR0.2mn changed hands across 14 deals. The Arab retail investors were increasingly net buyers in the market, which saw no trading of sovereign bonds. The Gulf individuals turned net buyers, albeit at lower levels, in the bourse, which saw no trading of treasury bills. The Total Return Index rose 1.37% to 27,781.84 points, the All Share Index rose 1.08% to 4,303.5 points and the Al Rayan Islamic Index (Price) by 1.35% to 2,949.52 points. The industrials sectors soared 1.43%, transport (1.42%), banks and financial services (1.22%), real estate (0.53%) and insurance (0.33%); while telecom declined 0.23% and consumer goods and services 0.1%. Major gainers in the main market included Qatari German Medical Devices, Estithmar Holding, Qamco, Ezdan, Qatar Islamic Bank, Commercial Bank, Masraf Al Rayan, Industries Qatar, Gulf International Services, Mesaieed Petrochemical Holding and Milaha. In the venture market, Mekdam Holding saw its shares appreciate in value. Nevertheless, Zad Holding, Baladna, United Development Company, Qatar Islamic Insurance and Qatari Investors Group were among the losers in the main market. In the junior bourse, Al Faleh Educational Holding saw its shares depreciate in value. The foreign institutions’ net buying increased substantially to QR50.26mn compared to QR9.87mn on August 7. The Arab individuals’ net buying grew noticeably to QR12.39mn against QR10.69mn the previous day. The Gulf retail investors turned net buyers to the tune of QR0.4mn compared with net sellers of QR0.5mn on Sunday. The Arab funds were net buyers to the extent of QR0.1mn against no major net exposure for the previous three sessions. The Gulf institutions’ net selling decreased markedly to QR0.56mn compared to QR2.67mn on August 7. However, the domestic institutions were net sellers to the extent of QR36.56mn against net buyers of QR4.6mn the previous day. Qatari individuals’ net profit booking grew perceptibly to QR25.15mn compared to QR22.23mn on Sunday. The foreign individuals were net sellers to the tune of QR0.89mn against net buyers of QR0.25mn on August 7. Total trade volume in the main market almost doubled to 253.25mn shares and value more than doubled to QR746.16mn on more than doubled transactions to 18,887. In the venture market, trade volumes stood at 0.23mn stocks, value at QR1.31mn and deals at 46.

Qatar became the world’s biggest LNG (liquefied natural gas) exporter in April this year, surpassing the US after its LNG exports jumped to a five-year high following the completion of seasonal maintenance on its LNG facilities, according to Kamco Invest. Total LNG exports of Qatar reached $11.9bn during April 2022 compared to $5.8bn in April 2021. Most of the Qatar’s LNG exports went to China, followed by India and Japan. The IEA (International Energy Agency) expects the Asia Pacific region to drive as much as 50% natural gas demand growth for the period. In terms of sectors, the IEA projects the industrial sector would represent about 60% of the global gas growth between 2021 and 2025. In the GCC or Gulf Co-operation Council region, higher natural gas prices have been positive on the fixed front, especially for Qatar as a leading global LNG exporter. Qatar, which accounted 21% of the LNG exports market share in 2021, has emerged as one of the key countries that the EU or European Union is trying to import more LNG from as they scramble to find new suppliers and increase LNG imports. The EU imported 24% of its 77bcm (billion cubic centimetres) LNG in 2021 from Qatar ahead of Russia (20%) and behind the US (26%). According to the International Monetary Fund, the EU’s Russian natural gas imports supply insecurity is weighing on European economies and is also expected to have a negative impact on the global economy. Europe is currently facing the possibility of gas cut-off while Russia is dealing with the consequences of the US and EU sanctions. According to the IEA, Russian natural gas would only account for 25% of total EU natural gas demand in 2022. The determination of the EU countries to find new natural gas suppliers is one the main elements that is keeping global gas prices up. This was reflected in the 60% decline in Russian gas supplies to Europe since June-2021.The global economy is also facing investment, trade and supply chain disruption due to the conflict which might lead to reduced economic activity and rising inflation. Qatar is currently set to begin the first phase of the North Field Expansion project after declaring some of the key partners in the project namely Shell, ExxonMobil, ConocoPhillips, Eni and TotalEnergies. In the first phase Qatar plans to increase its LNG production by 43% from 77mn tonnes per year to 110mn tonnes per year by 2025. In the second phase of the project Qatar plans its LNG production to increase to 126mn tonnes per year by 2027.

The Qatar Stock Exchange witnessed five of the seven sectors under buying spotlight even as it treaded a flat path. The Arab individuals and domestic institutions were seen net buyers as the 20-stock Qatar Index settled mere 0.2% higher at 13,379.72 points, recovering from an intraday low of 13,315 points. The foreign individuals were seen bullish, albeit at lower levels, in the market, whose year-to-date gains were at 15.09%. More than 53% of the traded stocks extended gains to investors in the bourse, whose capitalisation grew more than QR1bn or 0.2% to QR744.76bn, mainly on the back of microcap segments. The Islamic index was seen declining vis-à-vis gains in the other indices in the market, which saw a total of 0.01mn exchange traded funds (sponsored by Masraf Al Rayan and Doha Bank) valued at QR0.05mn changed hands across seven deals. However, local retail investors turned net sellers in the market, which saw no trading of sovereign bonds. The foreign institutions’ net buying weakened substantially in the bourse, which saw no trading of treasury bills. The Total Return Index was up 0.02% to 27,406.01points and All Share Index rose 0.13% to 4,257.34 points, while Al Rayan Islamic Index (Price) was down 0.01% to 2,910.32points. The transport sector index rose 1.29%, real estate (0.74%), banks and financial services (0.16%), insurance (0.15%) and industrials (0.05%); while telecom shrank 1.33% and consumer goods and services 0.49%. Major gainers in the main market included Qatar General Insurance and Reinsurance, Milaha, Al Khaleej Takaful, Ezdan and Dlala. Nevertheless, QLM, Ooredoo, Al Meera, Qatar Oman Investment and Mesaieed Petrochemical Holding were among the losers in the main market. In the venture market, Al Faleh Educational Holding saw its shares depreciate in value. The Arab individuals turned net buyers to the tune of QR10.69mn compared with net sellers of QR3.53mn on August 4. The domestic institutions were net buyers to the extent of QR4.6mn against net sellers of QR32.54mn the previous trading day. The foreign individuals turned net buyers to the tune of QR0.25mn compared with net sellers of QR6.31mn last Thursday. The Gulf institutions’ net selling decreased markedly to QR2.67mn against QR6.95mn on August 4. However, Qatari individuals were net sellers to the tune of QR22.23mn compared with net buyers of QR19.96mn the previous day. The Gulf retail investors’ net profit booking grew marginally to QR0.5mn against QR0.22mn last Thursday. The foreign institutions’ net buying weakened substantially to QR9.87mn compared to QR29.58mn on August 4. The Arab funds continued to have no major net exposure for the third straight session. Total trade volume in the main market declined 48% to 127.55mn shares, value by 45% to QR327.78mn and transactions by 51% to 9,215. In the venture market, trade volumes stood at 0.06mn stocks, value at QR0.26mn and deals at 25.

* Two and one-star hotels, standard hotel apartments lift rooms' yield year-on-year in Qatar's hospitality sector in June Faster earnings-per-available-room, especially in the two and one-star hotels as well as standard hotel apartments, led Qatar's hospitality sector report gain in rooms' yield on an annualised basis in June 2022 amidst fall in occupancy, according to the official statistics. The country's hospitality sector witnessed overall gains in the room yield amidst a 500% surge in the visitor arrivals in the review period, said the figures released by the Planning and Statistics Authority (PSA). In June 2022, Qatar has seen a total 145,641 visitor arrivals with majority coming in from the Gulf Co-operation Council (GCC) countries. The visitor arrivals from the GCC were 59,620 or 41% of the total, followed by other Asia (including Oceania) 33,790 or 23%, Europe 24,502 or 17%, other Arab countries 10,134 or 7%, Americas 15,196 or 10% and other African countries 2,399 or 2%. The properties that have been utilised as quarantine/Covid-19 response facilities have been removed from the full market data set from March 2020, PSA said. The country's overall hospitality sector saw a 4.51% year-on-year increase in average revenue per available room to QR278 in June 2022 as the average room rate grew 8.22% to QR474 amidst fall in occupancy to 59% in the review period. The two-star and one-star category hotels' average revenue per available room soared 73.68% year-on-year to QR165 in June this year. The average room rate in two-star and one-star hotels shot up 33.08% on yearly basis to QR177 and occupancy by 22% to 93%. The three-star hotels witnessed an 18.85% year-on-year surge in average revenue per available room to QR164 in June this year. The average room rate was seen rising 19.64% year-on-year to QR201 as occupancy was flat at 82%. The average revenue per available room in the four-star hotel category rose 10.95% on an annualised basis to QR152 in June 2022. The average room rate in the four-star hotels was up 9.96% to QR254 and the occupancy was up 1% to 60% in the review period. However, in the case of five-star hotels, the average revenue per available room declined 11.24% on annualised basis to QR387 in June this year as the average room rate shrank 13.11% to QR643 even as the occupancy grew 1% to 60%. In the case of standard hotel apartments, the room yield soared 38.79% year-on-year to QR161 in June 2022. The average room rate zoomed 34.41% year-on-year to QR207 and the occupancy by 3% to 78% in June 2022. The deluxe hotel apartments saw a marginal 2.25% year-on-year growth in average revenue available per room to QR182 in June 2022. The average room rate in the deluxe hotel apartments was seen gaining 27.48% on an annualised basis to QR385 but the occupancy plummeted 12% to 47%.

The Qatar Stock Exchange Thursday closed marginally down despite buying interests in the real estate, consumer goods, banking and insurance sectors. The domestic institutions were increasingly net sellers as the 20-stock Qatar Index settled 10 points or 0.07% lower at 13,376.64 points, but recovering from an intraday low of 13,386 points. The Gulf funds were also increasingly net profit takers in the market, whose year-to-date gains were at 15.06%. The foreign institutions’ weakened net buying interests had its influence in the bourse, whose capitalisation shot up about QR3bn or 0.38% to QR743.3bn, mainly on the back of small and microcap segments. The Islamic index was seen declining faster than the main index in the market, where the industrials and real estate sectors together constituted about 67% of the total trading volume. The Gulf individuals were seen bearish in the bourse, which saw a total of 0.06mn exchange traded funds (sponsored by Masraf Al Rayan and Doha Bank) valued at QR0.76mn changed hands across 25 deals. However, local retail investors turned net buyers in the market, which saw no trading of sovereign bonds. The Arab retail investors’ net profit booking weakened considerably in the bourse, which saw no trading of treasury bills. The Total Return Index was down 0.07% to 27,399.7 points and Al Rayan Islamic Index (Price) by 0.26% to 2,910.57 points, while All Share Index rose 0.17% to 4,251.67 points. The telecom sector index tanked 1.81%, industrials (0.83%) and transport (0.47%); while realty gained 1.55%, consumer goods and services (0.8%), banks and financial services (0.58%) and insurance (0.53%). Major losers included Al Khaleej Takaful, Mesaieed Petrochemical Holding, Ooredoo, Qatar Industrial Manufacturing, Qatar National Cement, Dlala, Inma Holding, Qatari German Medical Devices, Gulf International Services and Nakilat. In the venture market, Al Faleh Educational Holding saw its shares depreciate in value. Nevertheless, Ezdan Holding, Medicare Group, Doha Insurance, Mazaya Qatar, Mannai Corporation, QNB, Al Meera, Qamco and Untied Development Company were among the gainers in the main market. The domestic institutions’ net selling increased noticeably to QR32.54mn compared to QR24.6mn on August 3. The Gulf institutions’ net selling increased markedly to QR6.95mn against QR4.49mn the previous day. The Gulf retail investors turned net sellers to the tune of QR0.22mn compared with net buyers of QR0.04mn on Wednesday. The foreign institutions’ net buying weakened substantially to QR29.58mn against QR82.47mn on August 3. However, Qatari individuals were net buyers to the extent of QR19.96mn compared with net sellers of QR32.14mn the previous day. The Arab individuals’ net profit booking shrank significantly to QR3.53mn against QR13.2mn on Wednesday. The foreign individuals’ net selling eased marginally to QR6.31mn compared to QR8.8mn on August 3. The Arab funds continued to have no major net exposure for the second straight session. Total trade volume in the main market declined 23% to 246.21mn shares, value by 30% to QR591.3mn and transactions by 15% to 18,811. In the venture market, trade volumes stood at 0.26mn stocks, value at QR1.04mn and deals at 44.

Qatar, which is gearing up to host the FIFA World Cup later this year, has already initiated measures to curb the rising inflation such as a food security programme in which the government regulates the prices of essential food items as well as medium fiscal policies that control government spending, according to Kamco Invest. In its latest regional economic outlook report, the International Monetary Fund (IMF) forecast Qatar’s consumer price index (CPI) inflation to average 3.5% in 2022 and 3.2% in 2023. The IMF underlined that the combination of increasing global food prices and strengthening domestic demand are the main drivers of Qatar’s inflationary upward trend. Qatar’s inflation grew 5.4% year-on-year during June-2022, recording the fifth consecutive monthly growth. Moreover, the Qatar’s consumer price index remained flat during June-2022. Qatar’s inflation is mainly driven by its recreation and culture sector, which registered 36.5% year-on-year rise during June-2022 after the country eased pandemic related restrictions according to officials in Qatar’s Finance Ministry. Moreover, the housing and electricity sector index increased by 5.4% y-o-y during June2022 adding to the upward inflationary pressure. Kamco Invest said the government policies insulated the Gulf Co-operation Council (GCC) from rising inflation, which has been "significantly" lower than in most of the advanced and emerging markets. "Inflation in the GCC has been significantly lower than in most of the advanced and emerging market countries. The moderate inflation rate rise in the GCC countries is mainly attributed to improved economic activity in the region as higher oil and gas prices strengthened government coffers and investment," it said. Moreover, the GCC countries, despite importing up to 90% of their food supplies, have "weathered" the Russia-Ukraine conflict-related food supply chain disruption mainly by having varied food import sources, it said. (The) government price caps on essential food items and fuel also insulated the GCC households from steep food and fuel price rises, according to the note. The IMF said the GCC inflation rate to witness a growth of 3.3% in 2022 and 2.3% for 2023. The IMF expects Kuwait’s inflation to average 4.8% in 2022, the highest in the Gulf region. Comparatively, it projects 2.5% inflation growth for Saudi Arabia in 2022, the lowest among the GCC. On the other hand, the IMF forecasts 3.7% inflation uptick for UAE and Oman as compared to inflation rate of 3.7% for Qatar and Bahrain, respectively, in 2022. The overall Arab region countries were not immune from the repercussions of the war and commodity shortages, as the inflation rate in the Arab countries is expected to rise in 2022 to 7.5%, compared to about 5.7% in 2021, followed by a small decline in 2023 to reach 7%, according to Arab Monetary Fund. Higher oil prices are also expected to help the GCC countries offset the effect that the US interest rate hike might have on their non-oil economic sectors. According to the IMF, higher oil and gas prices in the GCC are expected to improve the domestic liquidity situation and induce expansionary fiscal policies which increase available credit in the private sector. In response to the latest 75 basis points (bps) hike in the US Fed rate, the GCC central banks followed varied paths in their rate hike decisions. While Saudi Arabia, the UAE, Bahrain and Oman fully replicated the rate hikes in their respective policy rates, Kuwait and Qatar did not fully replicated the rate hikes. Qatar raised its overnight lending rate by 50 bps to 3.75% and repo rate by 75 bps to 3.25%, Kamco Invest said.

Qatar's automobile sector went in an overdrive in June 2022 on an annualised basis, paced by sales of new private vehicles and motorcycles, according to the official data. The new vehicle registrations stood at 8,011; representing a sharp 53.1% and 22.6% increase year-on-year and month-on-month respectively, said the figures released by the Planning and Statistics Authority (PSA). The registration of new private vehicles stood at 4,955, which posted a 64.2% and 8.3% surge on yearly and monthly basis respectively in June 2022. Such vehicles constituted about 62% of the total new vehicles registered in the country in the review period. The registration of new private transport vehicles stood at 1,494; which grew 3.4% and 55.6% year-on-year and month-on-month respectively in June 2022. Such vehicles constituted about 19% of the total new vehicles in the review period. According to the Qatar Central Bank data, auto loans to Qataris and non-Qatari were seen declining 23.93% and 9.09% year-on-year respectively to QR0.89bn and QR0.2bn in June 2022. Personal loans to Qataris reported an 85.7% surge year-on-year to QR89.99bn and those for non-Qataris by 17.31% to QR9.49bn in the review period. The overall consumption credit to nationals grew 4.3% on an annualised basis to QR151.64bn and that to non-Qataris by 18.27% to QR12.82bn in June 2022. The registration of new private motorcycles more than tripled on a yearly basis to 1,123 units and it reported a sharp 63.9% expansion month-on-month in June 2022. These constituted more than 14% of the total new vehicles in the review period. The registration of new heavy equipment stood at 208, which constituted about 3% of the total registration this June. Their registrations had seen 13% shrinkage on an annualised basis but shot up 14.3% on monthly basis. The new registration of other non-specified vehicles stood at 185 units, which grew 29.4% on a yearly basis and more than doubled on a monthly basis in the review period. The registration of trailers stood at 46 units, which saw a 70.4% and 9.5% expansion on annualised and month-on-month basis respectively in the review period. The renewal of registration was reported in 71,494 units, which saw a 3.5% decline year-on-year but jumped 22.2% on a monthly basis this June. The transfer of ownership was reported in 33,822 vehicles in June 2022, which zoomed 23.6% and 20.1% year-on-year and month-on-month respectively. The re-registration of vehicles stood at 155, which reported 59.8% and 96.2% jump on yearly and monthly basis respectively this June. The modified vehicles’ registration stood at 8,137, which saw a 25.4% and 4.7% expansion year-on-year and month-on-month basis respectively in June 2022. The cancelled vehicles stood at 2,697 units, which shot up 8.8% and 40.1% year-on-year and month-on-month respectively in the review period. The number of lost/damaged vehicles stood at 8,840 units, which declined 40% year-on-year but zoomed 17.1% on monthly basis in June 2022. The number of vehicles meant for exports stood at 2,105 units, which shrank 3.1% on an annualised basis whereas it grew 34% month-on-month this June. The clearing of vehicle-related processes stood at 135,418 units, which expanded 2.1% and 20.8% on a yearly and monthly basis respectively in the review period.

Strong buying, especially in the insurance, transport and telecom counters Wednesday helped Qatar Stock Exchange gain 84 points and its capitalisation expanded about QR5bn. The foreign funds were increasingly into net buying as the 20-stock Qatar Index shot up 0.63% to 13,386.21 points, recovering from an intraday low of 13,273 points. More than 73% of the traded constituents extended gains in the market, whose year-to-date gains were at 15.14%. The domestic institutions’ weakened net selling pressure had its influence in the bourse, whose capitalisation shot up 0.63% to QR740.47bn, mainly on the back of midcap segments. The Islamic index was seen gaining slower than the other indices in the market, where the industrials and consumer goods sectors together constituted about 76% of the total trading volume. The Gulf individuals were seen bullish, albeit at lower levels, in the bourse, which saw a total of 0.03mn exchange traded funds (sponsored by Masraf Al Rayan and Doha Bank) valued at QR0.35mn changed hands across 18 deals. However, local retail investors were seen net profit takers in the market, which saw no trading of sovereign bonds. The Arab retail investors also turned bearish in the bourse, which saw no trading of treasury bills. The Total Return Index gained 0.63% to 27,419.31 points, All Share Index by 0.69% to 4,244.44 points and Al Rayan Islamic Index (Price) by 0.54% to 2,918.11points. The insurance sector index zoomed 1.8%, telecom (1.35%), transport (1.1%), consumer goods and services (0.9%), real estate (0.75%), banks and financial services (0.6%) and industrials (0.45%).Major gainers in the main market included Qatar General Insurance and Reinsurance, Qatari German Medical Devices, QLM, Salam International Investment, Qamco, Qatar Islamic Bank, Dlala, Medicare Group, Baladna, Qatari Investors Group, Qatar National Cement, Aamal Company, Estithmar Holding, United Development Company, Ooredoo and Nakilat. In the venture market, Al Faleh Educational Holding saw its shares appreciate in value. Nevertheless, Doha Insurance, Mesaieed Petrochemical Holding, Zad Holding, Inma Holding and Qatar Electricity and Water were among the losers in the main market. In the juniour bourse, Mekdam Holding saw its shares lose sheen. The foreign institutions’ net buying increased substantially to QR82.47mn compared to QR50.48mn on August 2. The Gulf retail investors turned net buyers to the tune of QR0.04mn against net profit takers of QR0.69mn the previous day. The domestic institutions’ net selling decreased considerably to QR24.6mn compared to QR56.71mn on Tuesday. However, Qatari individuals were net sellers to the extent of QR32.14mn against net buyers of QR2.33mn on August 2. The Arab individuals were net sellers to the tune of QR13.2mn compared with net buyers of QR0.34mn the previous day. The foreign individuals’ net profit booking expanded noticeably to QR8.8mn against QR2.52mn on Tuesday. The Gulf institutions turned net sellers to the tune of QR4.49mn compared with net buyers of QR5.77mn on August 2. The Arab funds continued to have no major net exposure for the second straight session. Total trade volume in the main market rose 11% to 318.16mn shares, value by 18% to QR850.02mn and transactions by 12% to 22,073. In the venture market, trade volumes stood at 1.55mn stocks, value at QR9.26mn and deals at 353.

The general cargo and RORO movement through Hamad, Doha and Al Ruwais ports saw modest growth on an annualised basis in July 2022; indicating the steady pace of the economy, according to the official statistics. The general cargo handled through the three ports was 65,172 tonnes in July 2022, which showed a marginal 0.44% increase year-on-year but declined 35.74% month-on-month in the review period, said the figures released by Mwani Qatar. Hamad Port – whose multi-use terminal is designed to serve the supply chains for the RORO, grains and livestock – handled 53,199 freight tonnes of breakbulk in July this year. On a cumulative basis, the general cargo movement through the three ports totalled 919,201 tonnes in the first seven months of this year. The three ports handled 7,179 vehicles (RORO) in July 2022, which registered a 30.08% and 10.34% growth on yearly and monthly basis respectively. They together handled as many as 45,242 vehicles during January-July 2022. Hamad Port alone handled 7,144 units in July this year. The number of ships calling on Qatar's three ports stood at 241 in July 2022, which however was 19.13% and 12.04% lower year-on-year and month-on-month respectively. As many as 1,673 ships had called on three ports during the first six seven months of this year. Hamad Port – whose strategic geographical location offers opportunities to create cargo movement towards the upper Gulf, supporting countries such as Kuwait and Iraq and south towards Oman – saw as many as 117 vessels call on the port in the review period. With only few months to go for FIFA World Cup, the mega sporting event; Doha Port is boosting efforts to transform the country into an attractive regional tourist destination serving global cruise ships as well as providing the facilities needed for the economic diversification being pursued by Qatar National Vision 2030. "Qatar’s maritime sector is expected to witness another year of strong growth in light of the efforts taken by the concerned authorities to boost goods traffic at the ports, with expectations of supply chains improving during the next few periods," Mwani Qatar had said in its latest annual report. The container handling through three ports stood at 117,317 TEUs (twenty-foot equivalent units), which showed a 3.63% and 0.65% decrease on yearly and monthly basis respectively in July 2022. The container handling through the three ports stood at 816,235 TEUs during January-July this year. Hamad Port, which is the largest eco-friendly project in the region and internationally recognised as one of the largest green ports in the world, saw 114,861 TEUs of containers handled this July. The container terminals have been designed to address the increasing trade volume, enhancing ease of doing business as well as supporting the achievement of economic diversification, which is one of the most important goals of Qatar National Vision 2030. The three ports had handled 14,627 livestock in July 2022, which showed 60.6% and 42.8% decrease year-on-year and month-on-month respectively. The ports had handled a total 113,895 heads during January-July this year. The building materials traffic through the three ports amounted to 28,634 tonnes in July this year, which shrank 18.02% and 19.27% year-on-year and month-on-month respectively in the review period. A total of 289,383 tonnes of building materials had been handled by these ports in the first seven months of 2022.