Business Optimism Index Kuwait Q Presented by Dun & Bradstreet South Asia Middle East Ltd (D&B) Muthanna Investment Company (MIC)

Business Optimism Index 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 businesses on sales, profit growth, investment etc Provides analysis of major trends, outlook and issues concerning businesses

Sample of business units representing Kuwait’s economy was selected 500 business owners and senior executives across business units 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

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 world over Global composite manufacturing & services PMIReal GDP Growth Source: IMFSource: JP Morgan and markit economics

Kuwait’s Economy Source: IMF Kuwait’s GDP to register a growth rate of 2.4% after contracting by 1.1% in Non-oil GDP to grow at 3.3% in 2010 Kuwait's budget surplus widened to US$ bn in the first eleven months of its 2009/10 fiscal year due to higher than forecast oil income GDP OutlookAverage Oil Production Source : OPEC

Business Optimism Indices Trend

Manufacturing Sector Global manufacturing activity suffers a slight dip, February reading at 56.5 as compared to 58.4 in the previous month Kuwait’s manufacturing sector evinces mixed trends as sales volume expectation improves but new order expectation declines marginally Higher raw material costs cited as the main cause for increase in selling price outlook Source: JP Morgan and markit economics Global Manufacturing Purchasing Managers’ Index GDP 13% Manufacturing Sector

Global construction sector currently driven by infrastructure spending as commercial property undergoes correction Strong demand outlook for Kuwait’s construction sector as both sales volumes and new orders expectations improve Better demand conditions driving profitability expectations Construction Sector

Trade & Hospitality Sector Global wholesale/retail trade & hospitality sector continues to be on the growth track Sales and new orders outlook of the Kuwait’s trade & hospitality sector consolidates at the levels recorded in the previous quarter Profitability expectations upbeat as selling price outlook improves after recording negative reading for the last three quarters Trade & Hospitality Sector

Global transport & communications sector expected to witness gradual recovery in 2010 Kuwait’s Transport & Communications sector has recorded highest optimism for all the survey parameters in the non hydrocarbon sector Transport & Communications sector GDP 12% Transport & Communications Sector

Finance, Insurance, & Business Services Sector The Global Services PMI reading suggests continued expansion of business activity Improvement in sales volume and new orders outlook point towards strengthening of demand in the sector Profitability outlook brightens on the back of strong demand and selling price expectations Global Services Purchasing Managers’ Index Source: JP Morgan and markit economics GDP 23% Finance, Insurance & Business Services sector

Business Optimism Indices Trends : Hydrocarbon sector Source : OPEC Average oil prices have stayed above US$ 70 per barrel mark for six consecutive months 57% of the respondents expect further strengthening of selling prices OPEC Average Monthly Price BasketBOI – Hydrocarbon Sector

Other Key Highlights Raw materials cost continues to be a major concern for the manufacturing sector Business units in the non-hydrocarbon sector continue being increasingly optimistic about borrowing conditions to improve 35% of the business units plan to invest in business expansion Less Hydrocarbon business units concerned about Project delays as compared to the previous quarter

Conclusion Strong fiscal & monetary measures and firm oil prices lift Kuwaiti business sentiments in Q Profitability expectations strengthen further on the back of seemingly improving demand conditions and higher selling price outlook Optimism in transport & communications sector strongest among all non-hydrocarbon sectors Hydrocarbon sector respondents expect further improvement in oil prices

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