1

Qatar: a snapshotPopulation2

21.3% annual growth 2004-2010 to reach 1.7 million

Economic growth1

27.2% nominal GDP growth 2005-2009 28.1% expected nominal GDP for 2010 25.5 % expected nominal GDP for 2011 Qatari Riyal pegged to US Dollar at 3.64

Oil & gas3

Proven reserves of 85 years at current production levels

Largest supplier of LNG with 14.43% of world reserves (Note: LNG production capacity reached 77 million tons by Dec 2010)

1. QNB, Qatar Economic Review, July 20102. Qatar Statistics Authority, 2010 Census3. IMF Data

Foreign affairs

Qatar is member of the GCC, UN, OPEC, WTO, IMF

2

2010 and beyond: economy remains buoyant

Source: QNB: Qatar Economic Review July 2010. QNB Capital Forecasts

Dependence on oil & gas

2009 first year that oil & gas sector was overtaken

Government is actively diversifying revenue sources

* Preliminary ** QNB Forecasts

Growth estimates

One of the highest growth rates in the world

Impact of global financial turmoil has been limited

(QR million) 2009 2010 2011Nominal Oil and Gas GDP 165,325 235,500 318,650% Growth/Decline -23.1% 42.4% 35.3%Nominal non-Oil and Gas GDP 192,535 223,025 256,590% Growth 2.4% 15.8% 15.0%Total Nominal GDP 357,860 458,525 575,240% Nominal GDP Growth/(Decline) -11.2% 28.1% 25.5%% Real GDP Growth 8.7% 14.5% 17.0%

(QR million) 2006 2007 2008 2009 20101. Oil & Gas 130,203 166,642 215,053 165,325 235,500% Change 41.4% 28.0% 29.1% -23.1% 42.4%- Gas 54,762 78,944 97,550 87,500 142,100- Oil 75,441 87,698 117,503 77,825 93,4002. Non-Oil & Gas 90,005 127,291 187,940 192,535 223,025% Change 39.4% 41.4% 47.6% 2.4% 15.8%- Agriculture & Fishing 233 270 305 315 325- Manufacturing 23,236 26,001 37,946 28,363 43,800- Electricity & Water 2,431 3,179 4,348 3,913 4,700- Building & Construction 7,674 21,625 32,507 25,781 27,100- Trade, Restaurants and Hotels 9,609 15,480 20,674 23,946 26,150- Transport & Communications 8,950 13,539 21,199 22,696 28,300- Finance, Insurance & Real Estate 19,476 27,309 38,106 43,374 45,550- Other Services 18,396 19,888 32,855 44,147 47,100Total GDP 220,208 293,933 402,993 357,860 458,525% Change 40.6% 33.5% 37.1% -11.2% 28.1%Total GDP ($ million) 60,497 80,751 110,712 98,313 125,968GDP per capita ($) 58,073 65,854 71,256 60,251 74,100

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QE History

1997 First day of trading of securities at

Doha Securities

Market (DSM).

1998 Introduction of

the Central Registration

System.

1999 Investors were able to

sell their purchased

shares on the next day

following their purchase (T+1)

2000 Implementation of companies’ linkage project

through the internet the first of its kind in the

GCC

2001 Start of electronic

trading project to replace

manual trading systems.

2002 Investors able to sell

their purchased shares on the

same day; approval of a new market

index

2005 Non-Qataris

permitted to invest in up to

25% of the shares offered

for trading.

2007 Became correspondent

of World Federation of Exchanges

(WFE).

2009 Signed strategic

partnership agreement with

NYSE Euronext to

transform Qatar Exchange into

world-class market.

2010 launched NYSE

Euronext Universal Trading Platform

April 2011

Implementation of DVP

SFTI

connectivity

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QIA - QE - NYSE Euronext partnership

80% shareholding of QE through Qatar Holdings

20% shareholding of QE

In June, 2009 QIA and NYSE Euronext formed a strategic partnership agreement – Qatar Exchange. The Exchange is part of a comprehensive national strategy that aims to establish Qatar as a world-class international market and reinforce the Country’s position as regional financial centre by introducing new trading products, technology and international investors and issuers to Doha. Qatar Exchange is regulated by the Qatar Financial Markets Authority

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Objectives:

• Develop a successful regional and international exchange with strong domestic roots

• Offer diversified range of investment and trading opportunities for investors and members

• Provide access to domestic and international investors for listed companies from Qatar and abroad

Competitive Advantages

• Strength of the economy

• Support and commitment from State of Qatar to reform financial & regulatory system

• Building on solid foundations

- not a start up struggling to attract business but a reasonable sized domestic exchange

• Partnership with NYSE Euronext

- shareholder with vested interest

- expert knowledge in developing international markets

QE Strategy

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QE Strategy

• Best trading environment • New trading opportunities• Efficient post trade system

• Companies and IPOs meet international standards• Cash product diversification• Derivatives

• Broad access • International best practices• Education & training

• Broaden membership base• Lower barriers to entry• Diversify services provided

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• Banks • DMA• SFTI• QFCRA licensed institutions• Segregation of roles in value chain

• Adjusted trading model• UTP• Liquidity providers• Lending & borrowing• Covered short selling• CCP

• Disclosure & IR practices• IPO process• Free float requirement• Corporate actions• Indices• Cash market: ETFs & bonds• Derivatives• GCC IPOs• Dual listings with NYSE Euronext

• Foreign participation• WFE & MSCI• Education & Training• Trading hours• Global Custodians

Regulatio

n Regula

tion

Educatio

n

Educa

tion

QE Strategy

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QE: a snapshotInvestors

Foreign institutions account for 22.5% of the annual trading turnover

Qatari institutions account for 20.5% of the annual trading turnover

Over 1200 foreign institutions and funds investing in QE stocks directly

Growth 2004-2010

24.75% growth in the QE20 index during 2010 206% growth in the market cap 270% growth in number of annual transactions

2004 2005 2006 2007 2008 2009 20100

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

350,000,000

400,000,000

450,000,000

500,000,000

0

2,000

4,000

6,000

8,000

10,000

12,000

147,190,720.67

317,201,745.88

221,729,740.16

347,695,032.47

279,038,216.44

320,207,247.63

450,203,021.09

Market Capitalization Market Index

Mar

ket

Cap

QR

Ind

ex

QE was the best performing market in the MENA region for 2010

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QE today

• 41 listed companies and four sectors (plan to move to 7 sectors in line with international standards)

• Total market cap: over $120 billion• QE Index covers 20 companies• Ten brokers, 3 of which just started in 2011• Fees: 27.5 bps (charged by brokers)

• 22 bps to brokers• 5.5 bps to the Qatar Exchange

• SWIFT in place between QE, custodians and QCB• UTP successfully implemented – Sept 2010• New Tick Sizes• Enhanced Trading hours

Sector Full Market Weighting

Banking and Financial 33.66%

Industrial 18.92%

Insurance 2.30%

Services 45.12%

Qatar Exchange - Brokers

Ahli Brokerage Company

Commercial Bank Investment Services

Dlala Brokerage

Dlala Islamic Brokerage

Gulf Investments Group

International Financial Securities

Islamic Financial Securities

Qatar Securities

QNB Financial Services

The Group Securities

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The QE Central Registry Department (CRD)

• Fully integrated within QE• 25 staff• Nasdaq-OMX Equator technology• 3 Custodians: HSBC, Qatar National Bank,

Standard Chartered• Dual listing with ADSM(QTEL)

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The CRD’s Missions

• NIN Account Openings• Exempt (off-market) Transfers• Processing of Pledges and Court Orders• Monitoring of the Brokers’ Settlement Cap• Corporate Actions• Foreign & Single Ownership Limits• DvP & Failed Trades Management• Daily Settlement Procedure• Cash-settlement Process with the QCB

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The CRD in Numbers (2010)

• 10,708 Exempt Transfers• 1,444 Pledges• 5,035 new Accounts opened• 263,747 Account Statements• 0 Failed Trade

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2011 so far & still to come

• Successful DvP Implementation• Buyer’s Compensation Enhancement• New Custodians• Securities Lending Program• Margin Lending• VaR-based Risk Management• SWIFT Developments• ANNA membership

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Longer Term Plans

• Creation of a fully-integrated CCP 100% QE-owned separate legal entity CCP for Cash, Derivatives & OTC Settlement Cap replaced with Guarantee

Fund

• Creation of a Third-Party CSD Separate legal entity with QE stake