30 September 2006

AUDITORS’ REVIEW REPORT TO THE SHAREHOLDERS OF
QATAR TELECOM (QTEL) Q.S.C.
Introduction
We have reviewed the accompanying interim condensed consolidated balance sheet of Qatar
Telecom (Qtel) Q.S.C. (the “Company”) and its subsidiaries (the “Group”) as of 30 September
2006, and the related consolidated statements of income, consolidated cash flows and changes in equity for the nine month period then ended and explanatory notes. Group is responsible for the preparation and presentation of these interim condensed financial statements in accordance with International Financial Reporting Standard IAS 34 Interim Financial Reporting (“IAS
34”). Our responsibility is to express a conclusion on these interim condensed consolidated financial statements based on our review. The interim condensed consolidated financial statements of the Group as of 30 September 2005 were reviewed and the consolidated financial statements as of 31 December 2005 were audited by another auditor, whose reports dated 18
October 2005 and 1 February 2006 respectively, expressed unqualified reviewed and audited opinions on those statements.
Scope of Review
We conducted our review in accordance with International Standard on Review Engagements
2410, “Review of Interim Financial Information Performed by the Independent Auditor of the
Entity”. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial statements are not prepared, in all material respects, in accordance with IAS 34.
A. Mekhael, F.C.C.A. of Ernst & Young
Auditor's Registration No. 59
Date: 16 October 2006
Doha

Qatar Telecom (Qtel) Q.S.C.
At 30 September 2006
NON-CURRENT ASSETS
Property, plant and equipment
Licence costs
Other assets
Investments
TOTAL NON-CURRENT ASSETS
CURRENT ASSETS
Inventories
Accounts receivable and prepayments
Cash and cash equivalents
TOTAL CURRENT ASSETS
CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Long term loan
Other non-current liabilities
Notes
3
4
5
EQUITY
Attributable to equity holders of the parent
Share capital
Legal reserve
Fair value reserve
Translation reserve
Retained earnings
Minority interests
Abdullah Bin Mohamed Bin Saud Al-Thani
Chairman
30 September 31 December
2006
QR’000
(Reviewed)
2005
QR’000
(Audited)
2,875,340
360,418
124,677
1,244,751
4,605,186
2,491,227
380,518
94,917
1,198,683
4,165,345
24,327
673,960
1,664,846
23,869
541,733
1,645,359
2,363,133
(1,623,149)
(647,706)
(142,622)
4,554,842
2,210,961
(1,386,988)
(573,413)
(128,758)
4,287,147
1,000,000
847,769
289,660
150
2,411,234
4,548,813
6,029
4,554,842
1,000,000
713,199
380,683
150
2,167,560
4,261,592
25,555
4,287,147
Mohammad Bin Isa Al-Mouhanadi
Member of the Board
The attached notes 1 to 15 form part of these interim condensed consolidated financial statements
2

Qatar Telecom (Qtel) Q.S.C.
Nine months Ended 30 September 2006
Three months ended 30
September
Nine months ended 30
September
2006 2005
QR’000 QR’000
2006
QR’000
2005
QR’000
Notes (Reviewed) (Reviewed) (Reviewed) (Reviewed)
REVENUE 15 1,049,230 783,422 3,082,712 2,136,649
EXPENSES
General and administrative expenses
Other operating expenses
OTHER INCOME
ROYALTIES
PROFIT FOR THE PERIOD
8
6
7
(337,923)
(157,667)
26,112
(153,793)
425,959
(235,867)
(118,484)
21,159
(119,692)
330,538
(1,013,079)
(461,608)
96,161
(452,283)
1,251,903
(715,151)
(312,152)
57,938
(314,385)
852,899
Attributable to:
Equity holders of the parent
Minority interests
BASIC EARNINGS PER SHARE
(attributable to equity holders of the parent)
(expressed in QR per share)
9
436,488
(10,529)
425,959
4.36
350,615
(20,077)
330,538
3.51
1,294,731
(42,828)
1,251,903
12.95
930,468
(77,569)
852,899
9.30
The attached notes 1 to 15 form part of these interim condensed consolidated financial statements
3

Qatar Telecom (Qtel) Q.S.C.
Nine months Ended 30 September 2006
Nine months ended 30 September
2006
QR’000
2005
QR’000
Note
OPERATING ACTIVITIES
Operating profit before working capital changes
Inventories
Receivables
Payables
Net cash from operating activities
INVESTING ACTIVITIES
Purchase of property, plant and equipment
Net movement in other assets
Purchase of available-for-sale investments
Proceeds from sale of plant and equipment
Proceeds from sale of available-for-sale investments
Net adjustment in license costs
Investment and interest income
Net cash used in investing activities
FINANCING ACTIVITIES
Dividend paid
Long term loan from bank
Minority interest holders’ contributions
Deferred financing costs
Net cash used in financing activities
INCREASE IN CASH AND CASH EQUIVALENTS
Cash and cash equivalents at the beginning of the period
CASH AND CASH EQUIVALENTS AT 30 SEPTEMBER
10
(Reviewed)
1,441,099
(458)
(132,227)
240,817
1,549,231
(656,820)
(29,760)
(136,969)
1,150
16,636
-
84,515
(721,248)
(910,000)
74,293
27,211
-
(808,496)
19,487
1,645,359
1,664,846
(Reviewed)
979,959
1,084
(59,341)
5,941
927,643
(644,999)
(1,741)
(138,795)
473
283,886
377
45,823
(454,976)
(850,000)
528,098
-
(10,423)
(332,325)
140,342
1,370,869
1,511,211
The attached notes 1 to 15 form part of these interim condensed consolidated financial statements
4

Qatar Telecom (Qtel) Q.S.C.
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Nine months Ended 30 September 2006
Attributable to equity holders of the parent
Share Legal Fair value Translation Retained Minority Total capital Reserve reserve reserve earnings Total interests equity
QR’000 QR’000 QR’000 QR’000 QR’000 QR’000 QR’000 QR’000
At 1 January 2006
Final dividend paid for 2005 (Note 11)
Directors’ remuneration for 2005
Net movement in fair value reserve
Total expenses for the period recognised directly in equity
Profit for the period
Total income and expenses for the period
Contributions
Net adjustment to minority interests
Transfer to legal reserve
Interim dividend paid for 2006 (Note 11)
At 30 September 2006
-
-
-
-
-
-
-
1,000,000 713,199 380,683
- - -
- - -
1,000,000 713,199 380,683
- - (91,023)
-
-
(91,023)
-
-
-
-
134,570
-
(91,023)
-
-
-
-
1,000,000 847,769 289,660
-
-
-
-
150 2,167,560
(485,000) (485,000)
(6,300)
4,261,592
(6,300)
25,555 4,287,147
- (485,000)
- (6,300)
-
150 1,676,260 3,770,292
-
25,555 3,795,847
(91,023) (4,096) (95,119)
- (91,023) (4,096) (95,119)
1,294,731
1,294,731
(42,828) 1,251,903
-
-
- 1,294,731 1,203,708
-
(187)
-
(187)
-
-
(134,570) -
(425,000) (425,000)
150 2,411,234 4,548,813
(46,924) 1,156,784
27,211
187
-
-
27,211
-
-
(425,000)
6,029 4,554,842
The attached notes 1 to 15 form part of these interim condensed consolidated financial statements
5

Qatar Telecom (Qtel) Q.S.C.
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (continued)
Nine months Ended 30 September 2006
Attributable to equity holders of the parent
Share Legal Fair value Translation Retained Minority Total capital reserve reserve reserve earnings Total interests equity
QR’000 QR’000 QR’000 QR’000 QR’000 QR’000 QR’000 QR’000
At 1 January 2005
Final dividend paid for 2004 (Note 11)
Directors’ remuneration for 2004
Net movement in fair value reserve
Total income for the period recognised directly in equity
Profit for the period
Total income and expenses for the period
Transfer to legal reserve
Interim dividend paid for 2005 (Note 11)
At 30 September 2005
1,000,000 582,320 157,419
- - -
- - -
1,000,000 582,320 157,419
- - 241,250
-
-
-
- -
241,250
-
-
- -
102,540
-
241,250
-
-
1,000,000 684,860 398,669
-
-
150 1,962,692 3,702,581 122,530 3,825,111
(485,000) (485,000) - (485,000)
(4,700) (4,700) - (4,700)
-
150 1,472,992 3,212,881 122,530 3,335,411
- 241,250 - 241,250
-
-
-
930,468
241,250
930,468
-
(77,569)
241,250
852,899
-
-
- 930,468
(102,540)
1,171,718
-
(77,569) 1,094,149
- -
(365,000) (365,000) - (365,000)
150 1,935,920 4,019,599 44,961 4,064,560
The attached notes 1 to 15 form part of these interim condensed consolidated financial statements
6

Qatar Telecom (Qtel) Q.S.C.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
At 30 September 2006
1 ACCOUNTING POLICIES
The interim condensed consolidated financial statements comprise Qatar Telecom (Qtel) Q.S.C (the “Company”) and its subsidiaries (together referred to as the “Group”).
These interim condensed consolidated financial statements are prepared in accordance with International Accounting
Standard 34, Interim Financial Reporting. The accounting policies used in the preparation of the interim condensed consolidated financial statements are consistent with those used in the preparation of the annual consolidated financial statements for the year ended 31 December 2005.
The interim condensed consolidated financial statements of Qatar Telecom (Qtel) Q.S.C. were authorised for issue by a Board Member and the Chairman on 16 October 2006.
The interim condensed consolidated financial statements are prepared in Qatari Riyals and all values are rounded to the nearest thousands (QR’000) except when otherwise indicated.
The interim condensed consolidated financial statements should be read in conjunction with the 2005 annual audited consolidated financial statements and the notes attached thereto.
The interim condensed consolidated financial statements do not contain all information and disclosures required for full financial statements prepared in accordance with International Financial Reporting Standards. In addition, results for the nine months ended 30 September 2006 are not necessarily indicative of the results that may be expected for the financial year ending 31 December 2006.
2 BASIS OF CONSOLIDATION
Subsidiaries
Subsidiaries are those enterprises controlled by the Group. Control exists when the Group has the power, directly or indirectly, to govern the financial and operating policies of an enterprise so as to obtain benefits from its activities.
The financial statements of the subsidiaries are included in the interim condensed consolidated financial statements from the date that control commences until the date that control ceases.
The interim condensed consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries at the balance sheet date:
Omani Qatari Telecommunications Company S.A.O.C.
TDC – Qtel MENA Investcom B.S.C.
Qtel Investment Holdings B.S.C.
55%
79%
100%
Omani Qatari Telecommunications Company S.A.O.C. was incorporated as an Omani closed joint stock company.
The subsidiary company is engaged in providing mobile telecommunication services in the Sultanate of Oman.
TDC – Qtel MENA Investcom B.S.C. is a closed company incorporated in Bahrain.
Qtel Investment Holdings B.S.C is a closed company incorporated in Bahrain, fully owned by the Company and is established primarily for the purpose of acting as the holding company for Qtel’s investments outside Qatar.
Transactions eliminated on consolidation
Inter-company balances and transactions, and any unrealized gains arising from intra-group transactions are eliminated in preparing the interim condensed consolidated financial statements.
Minority interests
Minority interests in these subsidiary companies are presented in the interim condensed consolidated statement of changes in equity.
7

3
Qatar Telecom (Qtel) Q.S.C.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
At 30 September 2006
PROPERTY, PLANT AND EQUIPMENT
Cost:
At 1 January 2006
Additions
Transfers
Disposals
At 30 September 2006
Depreciation:
At 1 January 2006
Provided during the period
Relating to disposals
At 30 September 2006
Net book value:
At 30 September 2006
Exchanges International
Subscriber apparatus
Land and
593,644
- and line buildings plant
QR’000 QR’000
2,139,551
-
6,828 143,834
- (2,555) communication links
QR’000
177,561
-
-
279 and other equipment
-
137,598
(6,217)
Capital work in progress Total
QR’000
862,711
QR’000 QR’000
555,295 4,328,762
656,820
(288,539)
-
656,820
-
(8,772)
600,472 2,280,830
151,330 1,067,283
18,728 154,580
- (2,553)
170,058 1,219,310
430,414 1,061,520
177,840
95,877
5,404
-
101,281
76,559
994,092
523,045
93,991
(6,215)
610,821
383,271
923,576 4,976,810
-
-
-
-
923,576
1,837,535
272,703
(8,768)
2,101,470
2,875,340
81,684 339,666 555,295 2,491,227 At 31 December 2005
4 INVESTMENTS
Available-for-sale investments:
Quoted investments
Unquoted investments
Investments in hedge funds
Investments in mutual funds
442,314 1,072,268
30 September 31 December
2006
QR’000
(Reviewed)
2005
QR’000
(Audited)
569,431 664,668
271,904 167,509
345,883
57,533
326,526
39,980
1,244,751 1,198,683
8

Qatar Telecom (Qtel) Q.S.C.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
At 30 September 2006
5 LONG TERM LOAN
The Group has entered into a facility agreement with a consortium of banks for a term loan of US Dollars 220 million to finance the activities of Omani Qatari Telecommunications Company S.A.O.C. The term loan has been guaranteed by the Company and is secured on the property, plant and equipment of Omani Qatari Telecommunications Company
S.A.O.C. The amount outstanding under the facility agreement at 30 September 2006 was QR 655,639,000 (31
December 2005: QR 582,759,000).
The term loan is repayable in nine semi-annual instalments commencing from 12 March 2008 and carries interest at six month LIBOR plus applicable margins.
The term loan presented in the balance sheet consists of the following:
Long term loan from bank
30 September
2006
QR’000
(Reviewed)
655,639
31 December
2005
QR’000
(Audited)
Less: Deferred financing costs (7,933)
582,759
(9,346)
647,706 573,413
6 GENERAL AND ADMINISTRATIVE EXPENSES
Employee salaries and associated costs
Depreciation and amortization
Rentals and utilities
Repairs and maintenance
Marketing costs and donations
Legal and professional fees
Provision for receivables
Finance costs
Other expenses
Employee salaries and associated costs comprise of:
Salaries and allowances
End of service benefits
Training and related costs
Pension contribution
Three months ended
30 September
Nine months ended
30 September
2006 2005 2006 2005
QR’000 QR’000 QR’000 QR’000
(Reviewed) (Reviewed) (Reviewed) (Reviewed)
117,518
94,190
29,871
83,263
70,193
22,162
335,032
292,803
87,025
248,539
190,036
61,386
28,505
37,680
14,401
5,396
3,205
7,157
337,923
14,605
16,296
7,130
-
630
21,588
235,867
84,747
102,374
66,172
7,969
8,945
28,012
1,013,079
43,966
66,853
25,494
13,042
-
65,835
715,151
99,896
7,100
8,264
2,258
117,518
72,199
4,931
4,185
1,948
83,263
287,727
17,911
22,813
6,581
335,032
216,895
12,622
13,242
5,780
248,539
9

7
Qatar Telecom (Qtel) Q.S.C.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
At 30 September 2006
OTHER OPERATING EXPENSES
Outpayments and interconnect charges
Cost of equipment sold and other services
Commission on cards
Leased circuit rentals
Three months ended
30 September
Nine months ended
30 September
2006 2005 2006 2005
QR’000 QR’000 QR’000 QR’000
(Reviewed) (Reviewed) (Reviewed) (Reviewed)
105,809
19,257
20,257
12,344
157,667
74,108
13,517
16,416
14,443
118,484
297,522
69,057
58,098
36,931
461,608
182,366
42,738
44,936
42,112
312,152
8 ROYALTIES
Royalty to the Government of State of Qatar
Royalty to the Government of Sultanate of Oman
Three months ended
30 September
Nine months ended
30 September
2006 2005 2006 2005
QR’000 QR’000 QR’000 QR’000
(Reviewed) (Reviewed) (Reviewed) (Reviewed)
145,434
8,359
153,793
2,820
116,872
119,692
431,577
20,706
452,283
310,156
4,229
314,385
In accordance with Law No. 6 of 2002, effective 1 January 2005, Qtel is liable to pay royalty to the Government of
State of Qatar for the exclusive right to provide telecommunication services in the State of Qatar. Additionally, in accordance with the terms of licence granted to Omani Qatari Telecommunications Company S.A.O.C., to operate wireless telecommunication services in the Sultanate of Oman, royalty is payable to the Government of the Sultanate of Oman, effective March 2005.
9 BASIC EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the profit for the period attributable to equity holders of the parent by the weighted average number of shares outstanding during the period.
Three months ended
30 September
2006 2005
Profit for the period attributable to equity holders of the parent (QR’000) 436,488 350,615
Nine months ended
30 September
2006 2005
1,294,731 930,468
Weighted average number of shares outstanding during the period in thousands
Basic earnings per share (QR)
100,000
4.36
100,000
3.51
100,000
12.95
100,000
9.30
10

Qatar Telecom (Qtel) Q.S.C.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
At 30 September 2006
10 OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES
Nine months ended 30 September
Profit for the period
Adjustments for:
Depreciation and amortization
Other income
Directors’ remuneration
Gain on disposal of plant and equipment
2006
QR’000
(Reviewed)
1,251,903
292,803
(96,161)
(6,300)
(1,146)
1,441,099
2005
QR’000
(Reviewed)
852,899
190,036
(57,938)
(4,700)
(338)
979,959
11 DIVIDENDS
During the current period, following the approval at the Annual General Assembly, the Company paid a final dividend of QR 4.85 per share totalling QR 485 million relating to the year 2005 (2005 : QR 4.85 per share, totalling
QR 485 million relating to the year 2004).
The Company also paid an interim dividend of QR 4.25 per share, totalling QR 425 million for the current period
(2005 : QR 3.65 per share, totalling QR 365 million), which will be adjusted against the final dividend.
12 COMMITMENTS
At 30 September 2006, future capital expenditure approved and contracted for is as follows:
Due within 1 year
Due after 1 year
30 September 2006 31 December 2005
Approved Contracted Approved Contracted
QR’000 QR’000 QR’000 QR’000
(Reviewed) (Reviewed) (Audited) (Audited)
1,577,450 495,111 1,458,478 651,315
466,508 2,840 951,873 36,781
2,043,958 497,951 2,410,351 688,096
11

Qatar Telecom (Qtel) Q.S.C.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
At 30 September 2006
13 CONTINGENT LIABILITIES
30 September 31 December
2006
QR’000
(Reviewed)
2005
QR’000
(Audited)
Letters of guarantees 115,617 100
Letters of credits
Claims against the Group not acknowledged as debts
127,197
6,150
56,547
5,180
Loan repayment guarantees to Thuraya Satellite Telecommunications Company
The Group has entered into an agreement to guarantee a portion of the loan repayments of Thuraya Satellite
Telecommunications Company in respect of project financing for the construction of a satellite system. The obligation of the Group under the guarantees is limited to QR 76,472,000 as at 30 September 2006 (31 December
2005: QR 114,707,000).
14 COMPARATIVE FIGURES
The corresponding figures presented for 2005 have been reclassified where necessary to preserve consistency with the
2006 figures. However, such reclassification did not have any effect on the profit for the period and total equity.
12

Qatar Telecom (Qtel) Q.S.C.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
At 30 September 2006
15 SEGMENT INFORMATION
Business segments
The segment information is presented based on the Group’s reporting structure and comprises of Wireless
Services and Wireline Services and is disclosed after elimination of inter company transactions.
Three months ended 30 September 2006 Nine months ended 30 September 2006
Revenue
Wireless
Services
QR’000
Wireline
Services
QR’000
765,550 283,680
Total
QR’000
1,049,230
Wireless
Services
QR’000
2,171,692
Wireline
911,020
Services Total
QR’000 QR’000
3,082,712
Contribution
Unallocated costs
Other income
Royalties
Profit for the period
502,859 167,472 670,331 1,438,004 531,183 1,969,187
(116,691) (361,162)
26,112
(153,793)
425,959
96,161
(452,283)
1,251,903
Revenue
Three months ended 30 September 2005
Wireless
Services
QR’000
536,048
Wireline
Services
QR’000
247,374
Total
QR’000
Nine months ended 30 September 2005
Wireless Wireline
Services
QR’000
Services Total
QR’000 QR’000
783,422 1,396,874 739,775 2,136,649
Contribution
Unallocated costs
Other income
Royalties
Profit for the period
355,470 149,886 505,356
(76,285)
21,159
(119,692)
908,343 424,892 1,333,235
(223,889)
57,938
(314,385)
330,538 852,899
13

Qatar Telecom (Qtel) Q.S.C.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
At 30 September 2006
15 SEGMENT INFORMATION (continued)
Geographic segments
The Group provides telecommunication services in the State of Qatar and the Sultanate of Oman. Segment information is disclosed after elimination of inter company transactions.
Three months ended 30 September 2006
Other
Nine months ended 30 September 2006
Other
Revenue
Expenses
GCC GCC
Qatar countries Total Qatar countries Total
QR’000 QR’000 QR’000 QR’000 QR’000 QR’000
922,158 127,072 1,049,230 2,761,100 321,612 3,082,712
(284,439) (113,757) (398,196) (858,400) (314,539) (1,172,939)
637,719 13,315 651,034 1,902,700 7,073 1,909,773 EBITDA
Depreciation and amortisation
Finance costs
Other income
Royalties
(67,303)
-
23,317
(145,433)
(26,887)
(3,205)
2,795
(8,359)
(94,190)
(3,205)
26,112
(153,792)
(215,124)
-
89,705
(431,577)
(77,679)
(8,945)
6,456
(20,706)
(292,803)
(8,945)
96,161
(452,283)
Profit (loss) for the period 448,300 (22,341) 425,959 1,345,704 (93,801) 1,251,903
Revenue
Expenses
Three months ended 30 September 2005 Nine months ended 30 September 2005
Other
Other GCC GCC
Qatar countries Total Qatar countries Total
QR’000 QR’000 QR’000 QR’000 QR’000 QR’000
735,909 47,513 783,422 2,066,018 70,631 2,136,649
EBITDA
Depreciation and amortisation
(211,671) (72,487) (284,158) (641,829) (195,438) (837,267)
524,238 (24,974) 499,264 1,424,189 (124,807) 1,299,382
(56,766) (13,427) (70,193) (166,517) (23,519) (190,036)
20,410
(116,872)
749
(2,820)
21,159
(119,692)
55,719
(310,156)
2,219
(4,229)
57,938
(314,385)
Other income
Royalties
Profit (loss) for the period 371,010 (40,472) 330,538 1,003,235 (150,336) 852,899
14