Industries Qatar Q.S.C. : QATAR STEEL INCREASES ITS STAKE IN SOUTH STEEL UP TO 29.74%

CONTACT DETAILS:

Name Mr. Saed Al-Roomi Title Head of PR Company Qatar Steel Company QSC ("QS") Telephone Number (974) 4477-8440 Fax Number (974) 4476-0719

DOCUMENT DETAILS:

Document Reference QS/PR/111220 Eng.DOCX For Immediate Release December 20, 2011 PRESS RELEASE QATAR STEEL INCREASES ITS STAKE IN SOUTH STEEL UP TO 29.74% DOHA, QATAR -Qatar Steel's Board of Directors has recently approved to increase the company's stake in South Steel of Saudi Arabia, from 20.9% to 29.74% (by additional 9%), amounting to QS 90 million Saudi Riyals.

South Steel, located in Jazan economic area in Saudi Arabia, consists of an integrated steel melting complex, with a capacity of 1 million MTPA of steel billets and 500,000 MTPA of steel reinforcement bars.

South Steel is currently meeting the requirements of local Saudi markets, and particularly the southern area. The surplus production is marketed to other areas inside Saudi Arabia and to the neighboring markets of Yemen and Africa.

Qatar Steel is providing all technical support to South Steel in all areas; operations, production, administration, marketing and training.

Qatar Steel is a leading industrial company producing iron and steel in the Arabian Gulf. Today the company is proud of its outstanding reputation in local and world markets, due to its high quality products of iron and steel, which entirely conform to the world standards and specifications.

Document Reference: QS/PR/111220 Eng.docx

Release Date: December 20, 2011

Page: 2 of 3

Qatar Steel has adopted a competent and reliable marketing policy, based on distinguished customer service, and what gave her a value added advantage is its being close to the GCC markets, enabling her to meet most of its requirements, in addition, of course, to those of the local market in Qatar.

Mr. Ali Bin Hasan Al-Muraikhi, Director and General Manager of Qatar Steel declared that the decision of the Board Directors to increase the company's stake in South Steel comes within the framework of supporting its existing strategic partnership, boosting its solid cooperation with South Steel and to further enhance the brotherly relations that exist between Qatar and Saudi Arabia.

Al-Muraikhi added that Qatar Steel has an ambitious strategy aiming at increasing its investments and expansions in iron and steel industry, to serve both the local and the Gulf markets. Qatar Steel now owns a steel plant in Jabal Ali in the UAE, producing reinforcement bars and rod wires. It has also some investments in Bahrain and looks forward to having more investments in other countries in the future.

###

For more information about this press release, email [e-mail] or visit www.iq.com.qa

DISCLAIMER

The companies in which Industries Qatar QSC directly and indirectly owns investments are separate entities. In this document, "IQ" and "the group"
are sometimes used for convenience in reference to Industries Qatar QSC.
This document may contain forward-looking statements concerning the financial condition, results of operations and businesses of Industries Qatar QSC. All statements other than statements of historical fact are deemed to be forward-looking statements, being statements of future expectations that are based on current expectations and assumptions, and involve known and unknown risks and uncertainties that could caus e actual results, operations and business performance or events impacting the group to differ materially from those expressed or as may be inferred from these statements.
There are a number of factors that could affect the realisation of these forward-looking statements such as: (a) price fluctuations in crude oil and natural gas, (b) changes in demand or market conditions for the group's products, (c) loss of market share and industry compe tition, (d) environmental risks and natural disasters, (e) changes in legislative, fiscal and regulatory conditions, (f) ch anges in economic and financial market conditions and (g) political risks. As such, results could differ substantially from those stated, or as may be inferred fro m the forward-looking statements contained herein. All forward-looking statements contained in this presentation are made as of the date of this presentation, as marked on the Cover page.
Industries Qatar QSC, its Directors, officers, advisors, contractors and agents shall not be liable in any way for any costs, losses or other detrimental effects resulting or arising from the use of or reliance by any party on any forward-looking statement and / or other material contained herein. Industries Qatar QSC, its subsidiary, joint ventures and associated companies are further in no way obliged to upda te or publish revisions to any forward-looking statement or any other material contained herein which may or may not be known to have changed or to be inaccurate as a result of new information, future events or any reason whatsoever. Industries Qatar QSC does not guarantee the accuracy of the historical statements contained herein.

GENERAL NOTES

Industries Qatar's accounting year follows the calendar year. No adjustment has been made for leap years. Where applicable, all values refer to Industries Qatar's share. Values expressed in QR billions and percentages have been rounded to 1 decimal point. All other values have been rounded to the nearest whole number. Values expressed in US $'s have been translated at the rate of US $1 = QR3.64.

DEFINITIONS

CAGR: 5-Year Compound Annual Growth Rate (from 2010 actuals) • Cash Realisation Ratio: Cash Flow From Operations / Net Profit x 100 • Debt to Equity: (Current Debt + Long-Term Debt) / Equity x 100 • DRI: Direct Reduced Iron • EBITDA: Earnings Before Interest, Tax, Depreciation and Amortisation calculated as [Net Profit + Interest Expense + Depreciation + Amortisation - QR1.2bn government grant received in 2009] • EPS: Earnings per Share [Net Profit / Number of Ordinary Shares outstanding at the year end] • Free Cash Flow: Cash Flow From Operations - Total CAPEX • HBI: Hot Briquetted Iron • Interest Cover: (Earnings before Interest Expense + Tax) / Interest Expense • LDPE: Low Density Poly Ethylene • LLDPE: Linear Low Density Poly Ethylene • mmBTU: Million British Thermal Units • MT / PA: Metric Tons Per Annum • MTBE: Methyl Tertiary Butyl Ether • Net Debt: Current Debt + Long-Term Debt - Cash & Cash Equivalents • Payout Ratio: Total Cash Dividend / Net Profit x 100 • P/E: Price to Earnings multiple [Closing market capitalisation / Net Profit] • ROA: Return On Assets [EBITDA/ (Total Assets - CWIP - PUD) x 100] • ROCE: Return On Capital Employed [Net Profit before Interest & Tax / (Total Assets - Current Liabilities) x 100] • ROE: Return On Equity [ Net Profit / Shareholders' Equity x 100] • Utilisation: Production Volume / Rated Capacity x 100 [For new facilities, measure includes first full operational quarter only]

ABOUT QS

Qatar Steel Company QSC ("QS") was originally incorporated in 1974, and is now fully-owned by IQ. QS has several investments in the steel industry including Qatar Steel Company FZE, a fully-owned subsidiary of Qatar Steel and three associates, Qatar Metal Coating Company Q.S.C., South Steel Company W.L.L. and Gulf United Steel Company (Foulath) B.S.C. Closed.

Products

QS's steel products consist of:

Hot Bricked Iron (HBI) and Direct Reduced Iron (DRI): Qatar Steel produces more than 700,000 MT/PA of HBI/DRI for sale. Markets include the Medal East, India, and the Far East.

Steel Billets: Most of the steel billets produced are processed into steel bars by Qatar Steel, with the remainder exported to neighbouring countries in the Gulf region.

Steel Bars: Hot rolled deformed steel bars are used extensively in the construction industry. The majority of the production is marketed in

Qatar, with the remainder exported to neighbouring countries in the Gulf region.

Steel Coils: Steel coils are used extensively in the construction industry, primarily as a binding medium and for making nuts and bolts. The majority of the production is marketed in Qatar, with the remainder exported to neighbouring countries in the Gulf region .