The 24 year old has dropped just one shot so far this week, and followed up his opening round of 64 with a 65 on Friday to move clear of England’s Richard Bland, who also registered a 65.
Holman was playing in just his 16th European Tour event when he won the Australian PGA Championship in December, and is now in the running to make it two wins in his first 20 appearances.
"After winning at home my next aim was to win a tournament overseas, so it's great to have the chance to tick that one off the list so soon," he said. "Then looking further ahead, getting into the top 100 in the World Ranking is a realistic aim.
"When I saw I was three or shots clear after the turn there were a few nerves, but I handled myself really well and managed to pick up a couple of birdies coming in."
Bland, in contrast, is looking for his first win at the 378th attempt, but the Englishman has yet to make a bogey this week and has made a steady start to the season, securing a tie for seventh place in the Commercial Bank Qatar Masters.
Holman followed his win on the Gold Coast with two solid efforts in the Desert Swing, and he is now aiming for a victory outside of his homeland as he looks to move up the Official World Golf Ranking.
In-form Englishman Danny Willett leads a host of challengers in a share of third place on eight under par after the World Number 13 added a round of 69 to his opening 65.
Marcus Fraser is the next best of the Australians in a share of 7th position albeit six shots from the lead.
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