Qatar Business Optimism Survey Q Presented by Dun & Bradstreet South Asia Middle East Ltd. Qatar Financial Centre (QFC) Authority

The D&B Business Optimism Index is recognized world over as an indicator which ascertains the pulse of the business community Provides insight into the short-term outlook of business units on sales, profit growth, investment, etc. Provides analysis of major trends, outlook and issues concerning the business units Business Optimism Index

Sample of business units representing Qatar’s economy was selected 500 business owners and senior executives across different industry sectors were surveyed Survey conducted during March 2010 for the 2 nd quarter of 2010 Respondents are asked questions about their expectations on relevant business parameters Survey also captures respondent feedback on current business conditions Survey

Composite Business Index The Composite Business Index is calculated separately for the hydrocarbon and non hydrocarbon sector For the non hydrocarbon sector, the Composite Index captures the weighted aggregate behavior of five individual indices For the hydrocarbon sector, the Index takes into account the weighted aggregate behavior of three individual indices

World Economic Outlook Global economy expected to grow 3.9% in 2010, emerging economies to expand 6.0% US economy registered 5.6% growth in Q4 2009, fastest since third quarter of 2003 Global composite PMI indicates continued expansion of manufacturing and services industry activity Real GDP GrowthGlobal composite manufacturing & services PMI Source: IMFSource: JP Morgan and market economics

Economy of Qatar Qatar’s real GDP is expected to expand by 18.1% in 2010 Continued government support and increased hydrocarbon revenues to boost the economy Central Bank’s net reserves estimated at US$ 19.3 bn (2009), up from US$ 9.8 bn in 2008 Qatar Economic Indicators Average Oil Production ‘000 bpd Source: IMF Source: OPEC US$ billion % Change

Composite Business Optimism Indices Non Hydrocarbon SectorHydrocarbon Sector Business optimism in the non hydrocarbon sector has stabilized in last two quarters Drop in selling price optimism becomes a drag on the hydrocarbon sector outlook

Business Optimism Trends – Non Hydrocarbon Sector

Manufacturing Sector Global manufacturing activity suffers a slight dip, February reading at 56.5 as compared to 58.4 in the previous month Qatar manufacturing sector optimism mixed as volume of sales parameter improves but new orders decline Global Manufacturing Purchasing Managers’ Index Source: JP Morgan and market economics BOI - Manufacturing Sector GDP 8.3%

GDP 4.9% Construction Sector Global construction sector currently driven by infrastructure spending as commercial property undergoes correction Demand outlook for Qatar’s construction sector shows signs of improvement with increasing optimism on new orders Profitability levels are expected to stay muted due to higher raw material costs BOI – Construction Sector

Trade & Hospitality Sector Global wholesale/retail trade & hospitality sector continues to be on the growth track Volume of Sales and new orders indicate improved demand conditions in Qatar for the second quarter Hiring outlook improves as 47% of respondents are expected to add staff BOI – Trade & Hospitality sector GDP 3.3%

Logistics & Communication Sector Global Logistics & communications sector expected to witness gradual recovery in 2010 Demand outlook for Qatar’s logistics & communication sector mixed as new orders parameter registers a 12 point drop while volume of sales parameter improves BOI – Logistics & Comm. sector GDP 3.3%

Finance and Business Services Sector The Global Services PMI reading suggests continued expansion of business activity Half of the respondents in Qatar’s Financial and Business Services sector expect to get new orders in Q Sector outlook with regards to Net Profit and Number of Employees shows signs of stabilization BOI – Finance & Business Services sector GDP9.9% Source: JP Morgan and market economics Global Services Purchasing Managers’ Index

Oil & Gas sector Selling prices outlook dampens optimism of the hydrocarbon sector 53% respondents expect to add new employees during Q GDP 61.7% BOI – Hydrocarbon SectorOPEC Monthly Price Basket

Other Key Highlights Raw materials cost continues to be a major concern for the manufacturing sector 37% of the non hydrocarbon respondents expect borrowing conditions to improve during the quarter One third of companies in the non hydrocarbon sector plan to invest in business expansion 60% of companies in the hydrocarbon sector expect to face project delays

Conclusion Business Optimism levels in Qatar’s non hydrocarbon sector improve slightly in Q Improvement in volume of sales and new orders indicates stable demand outlook for the non hydrocarbon sector Qatar’s trade and hospitality sector expect better demand conditions in the second quarter Despite turbulence witnessed in the international financial markets during the last quarter, optimism levels in finance & business services sector registers a minor improvement

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