This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS DOHA 000003 
 
SIPDIS 
 
FOR NEA/ARPI - THORNE AND EB/CBA - BEHRENS 
COMMERCE FOR FCS - ISRAEL HERNANDEZ AND ITA/MAC/AMESA - C. 
LOUSTAUNAU AND M. TALAAT 
STATE PASS TO USTR - JASON BUNTIN 
 
E.O. 12958: N/A 
TAGS: ECON EPET EINV PGOV QA
SUBJECT: DOHA SECURITIES MARKET: THIRD QUARTER 2005 
 
 
¶1.  Summary. Qatar's stock market is keeping up with the 
frenetic, bullish trajectory of Gulf region stock indexes. 
Although the market has remained below the 12,000 trading range 
reached in the summer, it is up 85 percent from the beginning of 
the year.  Speculation -- rather than value investing -- is being 
driven by high oil prices and the country's rosy outlook for 
natural gas exports. Qatar's protected economy ensures that state- 
sponsored industrial and service monopolies enjoy large profits. 
The booming real estate market has spurred the creation of public- 
shareholder real estate development enterprises. These have 
enjoyed extremely high price spikes. The Qatari Amir has used 
stock IPOs as a means of distributing wealth, and Qataris believe 
he will protect the market from a sharp downturn. Qataris are 
taking profits (and deflating the market) in order to raise cash 
for several IPOs in coming months. End Summary. 
 
Doha Securities Market (DSM) 
---------------------------- 
 
In compliance with Doha Securities Market Regulations, all 31 
listed companies provided pre-audited financial statements 
covering their activities up to the end of the third quarter of 
¶2005. Doha Securities Market (DSM) categorizes listed companies 
into four major groups: Banks, Insurance, Services and Industry. 
DSM listed companies earned $2,376 million and average profits 
grew by 42 per cent over the same quarter the previous year. 
 
The Banking Sector 
------------------ 
 
The banking sector's profits grew the most in comparison with the 
same period last year. The sector benefits from high business 
margins, limited risks, limited foreign competition and a booming 
economy. Total profits of listed banks grew by 97 percent 
totaling $841 million. The largest percentage was by Qatar 
International Islamic Bank with 381 percent growth and a profit 
of $19.5 million, followed by CommercialBank with 108 percent 
growth and a profit of $153 million, Qatar Islamic Bank with 90 
percent growth and a profit of $102 million, Doha Bank with 85 
percent growth and a profit of $142 million, and  Qatar National 
Bank (mainly government owned) with 74 percent growth and a 
profit of $322 million, and Al-Ahli Bank with 52.8 percent growth 
and $28.96 million in profits. 
 
Insurance: Up 
------------- 
 
The Insurance sector is the second fastest-growing sector in DSM. 
The sector grew by 43 per cent in the quarter in comparison with 
the third quarter of 2004. Profits totaled $105 million. The 
highest percentage was witnessed by Qatar Insurance Company with 
73 percent growth and a profit of $47 million, followed by the 
independent, new entrant Doha Insurance with 37 percent growth 
and a profit of $6.7 million. The three other listed companies 
achieved growth rates from 5 to 33 percent. 
 
Varied Performance in Services 
------------------------------ 
 
The Services sector grew only by 5 percent bringing in profits of 
$659 million. But within this category, there were enormous 
variations. Gulf Warehousing Company realized the huge growth 
rate of 1,944 percent and earned $2.34 million. Qatar Navigation 
Company and Qatar Shipping Company are both doing extremely well 
with respectively 124 and 123 percent growth in profits, at $72 
and $102 million. The largest profits were pulled in by telecom 
monopoly Q-Tel with a profit of $234 for the quarter, which was 
in fact a drop of 25 percent over the previous year. Qatar 
Electricity and Water Company also suffered a dip in profits 20 
percent. There was one loss: Al-Ahli Hospital at $11 million. 
 
Industry: Large but Still Growing 
--------------------------------- 
 
The Industrial sector grew by 42 percent with total profits of 
$771 million. The petrochemical consortium "Qatar Industries," of 
which Qatar Petroleum is the major shareholder, earned the 
largest profits in the sector, at $675 million. This represented 
a 37 percent growth rate. The highest growth percentage was 
recorded by United Development Company: 1,028 percent, on profits 
of a more modest $34 million.