HOUSE OVERSIGHT 029460 • Jarir: We like Jarir for its potential to increase its market penetration having increased its store count by 13% since August 2017 while maintaining its premium ROE of 53% and attractive dividend. • Al Tayyar : Stock will see a slew of positive catalysts over the next two quarters, particularly a second tranche of substantial gov receivable recoveries in Ql. 130mn SAR loss from associates in 2017 is a one off and should make comps easier this year. Q1 earnings should see the first earnings growth after a very difficult 2 years. Makkah real estate REIT will also provide an uplift. • Al Hokair: has massively under performed in Saudi index and consumer sector and should see substantial improvement in business in 2018 as LFL turns the corner and the company businesses a beneficiary from social reforms in the country. Debt restructuring concerns likely behind us at this point, relief there would be the main catalyst for the name. • Malath / Alrajhi Takaful: 2 of the top motor insurers in Saudi secular growth trend in motor insurance sector over the next two years as the regulator clamps down on more than 50% uninsured drivers while women driving to present multiyear volume growth story. Cole Mackay, CFA, Director Emerging Europe, Middle East & Africa Equity Sales Bank of America Merrill Lynch Office: *1 212 449 52711Cell: +1 917 678-9716 coleman.mackayPbaml.com This material was prepared by Sales personnel of Bank of America Merrill Lynch and is subject to the terms available at the following link: http://corp.bankofamerica.com/business/smb/landincilemaildisclaimer/americas/plobal-markets "SALES VIEW ONLY** Global Research Bank of America Merrill Lynch GEMs Paper #31 Saudi Arabia: growth bull, fiscal bear 29 January 2018 Key takeaways • Growth recovers as high oil prices allow looser fiscal, contain near-term deterioration. Mega-projects offer upside potential HOUSE_OVERSIGHT_029460 • The oil price at which reforms n