1. Business Optimism Index Qatar – Q4 2008 usiness Optimism Index Qatar Q4 2008 28 th Sept, 2008 Business Optimism Index Qatar Q4 2008 28 th Sept, 2008 Presented by Dun & Bradstreet Qatar Financial Centre (QFC) Authority Al Khalij Commercial Bank (al khaliji)

2. Business Optimism Index Qatar – Q4 2008  Recognized world over as a measure of the pulse of the business community  Expectation survey of 500 business owners and senior executives between Aug. 16 th and Sep. 5 th for the quarter starting Oct. 2008  Respondents questioned on their expectations for relevant business parameters  Other parameters include current business conditions vis-à-vis investment plans, sources of finance, primary concerns etc.  Analysis of major trends, outlook and issues concerning the business community  Provides insights into the short-term outlook of the business community on investment, sales, profit growth etc Business Optimism Index

3. Business Optimism Index Qatar – Q4 2008 Overall Business Sentiments High  Buoyancy in Sales volume and profits continues  Outlook on New orders and additional Employees subdued  Selling prices expected to plateau Business Optimism Index

4. Business Optimism Index Qatar – Q4 2008 Positive outlook continues % Volume of Sales  Q4 sales expected to rise further  Finance sector continues on high growth path  Manufacturing units’ profits hit by high input costs Net Profits %

5. Business Optimism Index Qatar – Q4 2008 … With a blip Number of EmployeesNew orders  Hiring plans tempered; 6 point drop in the index  36% expect no change; 2% expect a decrease  Finance and Construction sectors continue to be employment generators  Subdued outlook for new orders; 12 point drop in index  Units expecting an increase drop from 81% to 69%  Manufacturing units see a 32 point fall in the index

6. Business Optimism Index Qatar – Q4 2008 Dampened Selling Price outlook  Early signs of easing inflationary pressure; 6 point drop in the index  40% do not foresee any rise over the last quarter  At least a couple of quarters before we see any impact on inflation levels

7. Business Optimism Index Qatar – Q4 2008  Sentiments subdued; significant drop in all the indices  Drop in global oil prices drags selling price index  Profits outlook still high Oil and Gas sector Business Optimism Index

8. Business Optimism Index Qatar – Q4 2008 Non Hydrocarbon Oil & gas Investment Plans  Services sector on expansion mode  Investment in new technology moves up while work force expansion moves down the priority list  More investment in machinery and infrastructure in the Oil and Gas sector

9. Business Optimism Index Qatar – Q4 2008  Rising input costs continue to be primary concern for businesses  Import intensive sectors worst hit  Finance sector worried about skilled labour availability Oil & gasNon Hydrocarbon Business Concerns

10. Business Optimism Index Qatar – Q4 2008  Easing inflationary pressure  Sales and profits levels to increase further  Finance and construction sector on high growth path  More capital investment on its way  Profitability of industry to go down Outlook: a quarter of demand consolidation

11. Business Optimism Index Qatar – Q4 2008 THANK YOU