Net profits reported by companies listed on GCC exchanges grew 8.1% with total net profits up for the second consecutive quarter to reach $60.7 billion during Q2-2024 as compared to $56.2 billion in Q1-2024 and $57.4 billion in Q2-2023.

 

Aggregate net witnessed a healthy y-o-y growth of 5.7% during Q2-2024 led by a broad-based growth across most markets in the region, barring Oman, according to Kamco Invest, a Kuwait-based non-banking financial powerhouse. 

 

At the regional level, Dubai reported the second-biggest y-o-y growth in profits (after Bahrain) at 30.9% reaching $6.7 billion during Q2-2024 mainly related to accounting adjustments and restructuring implemented by DSI.

 

Bahrain firms report double-digit growth

Companies in Bahrain also reported double-digit y-o-y growth in profits during the quarter followed by low to mid-single digit profit growth for the rest of the GCC countries.

 

The growth in profits also highlighted a broad-based double-digit increase in profits for most sectors in the GCC. Key sectors like Banks and Telecom posted profit growth of 10.8% and 15.8%, respectively, while Materials and Real Estate sectors showed even stronger growth of 45.6% and 23.9%, respectively. 

 

The 68.3% profit growth for the Capital Goods sector reflected the accounting adjustments related to DSI. On the other hand, profits for the Energy sector declined during the quarter by 0.9% mainly reflecting 2.5% decline in net profits for Aramco that more than offset higher profits for a majority of the companies in the sector. The F&B sector also registered a steep profit decline of 35.5% mainly led by a fall in profits reported by IHC during Q2-2024.

 

In terms of H1-2024 performance, net profits for GCC listed corporates was almost flat with a marginal increase of 0.1% to reach $116.9 billion as compared to $116.8 billion during H1-2023. The flattish growth reflected mixed trend at the country level with Saudi and Abu Dhabi-listed entities reporting a decline in net profits by 2.7% and 2.2%, respectively, which was completely offset by higher total profits for the rest of the country aggregates. The aggregate for Dubai once again showed the biggest y-o-y growth of 20.0% during H1-2024.

 

Bahrain

Total Q2-2024 net profits for Bahrain-listed companies increased by 37.5% y-o-y to $532.6 million after eight out of its fourteen sectors reported y-o-y growth including two of its key sectors during the quarter the Banking and Materials Sectors. In terms of H1-2024 performance, net earnings increased by 16.5% y-o-y to reach $1 billion up from $0.9 billion in H1-2023.

 

Saudi Arabia

Aggregate net profits for listed companies in Saudi Arabia witnessed a y-o-y increase of 2.6% to reach $39.1 billion in Q2- 2024 against $38.1 billion in Q2-2023. The key sectors on the exchange including Banks, Materials and Telecommunication Services reported a strong y-o-y growth in profitability during the quarter, whereas the Energy, Consumer Services, Media & Entertainment and Food & Staples Retailing reported y-o-y profit declines during the quarter. 

 

Dubai

Net profits for Dubai-listed companies increased by 30.9% y-o-y to $6.7 billion in Q2-2024 against $5.1 billion in Q2-2023. Earnings growth during the quarter was mainly driven by Banks, Capital Goods and Telecom companies with the three sectors accounting for 83.1% of the aggregate earnings in the exchange during the quarter. 

 

Out of Dubai Stock Exchange’s thirteen sectors, seven have witnessed a y-o-y increase in profits during Q2-2024 while the remaining six sectors, including the Insurance and Diversified Financial sectors, reported declines. In terms of H1-2024 performance, net profits increased by 20% y-o-y to reach $12.1 billion as compared to $10.0 billion in H1-2023.

 

Abu Dhabi

Listed companies in Abu Dhabi witnessed a 4.7% y-o-y uptick in total net profits during Q2-2024 to reach $8.3 billion as compared to $7.9 billion during Q2-2023. On the other hand, total net profits declined by 2.2% y-o-y during H1-2024 to reach $16.2 billion down from $16.5 billion in H1-2023. 

 

The Banking sector in Abu Dhabi witnessed an increase in net profits with aggregate sector profit of $2.5 billion in Q2-2024 as compared to $2.2 billion during Q2-2023, registering a y-o-y increase of $281.3 million or 12.7 %. 

 

The Energy Sector posted the second-largest net profits in the exchange during Q2-2024 after witnessing a 20.7% y-o-y total net earnings growth which reached $2.2 billion compared with $1.9 billion during Q2-2023. The Transportation and Telecommunication sectors were among the other key sectors that reported y-o-y aggregate earnings growth during Q2-2024, contributing to the overall growth in total earnings in the exchange during the period.

 

Qatar

Total earnings for Qatari-listed companies witnessed a y-o-y gain of 5.6% during Q2-2024 to reach $3.35 billion as compared to $3.17 billion in Q2-2023. The surge in earnings was primarily driven by earnings growth in the Banking, Insurance and Capital Goods. However, a decline in profits for the Materials, Real Estate and Health Care Equipment & Services sectors partially offset the overall growth in net profits.

 

Kuwait

Net profits reported by companies listed on Boursa Kuwait increased by 1.0% y-o-y during Q2-2024 to reach $2.20 billion as compared to $2.18 billion in Q2-2023. The biggest impact on aggregate earnings came from the Real Estate sector which showed a 104.4% jump in profits that reached $153.0 million in Q2-2024 from $74.8 million in Q2-2023. Banks, Consumer Services and Energy sectors also contributed to earnings growth during the quarter.

 

Oman

Total net profits for listed companies in Oman decreased marginally by 0.9% y-o-y to $506.4 million in Q2-2024 compared with $511.2 million in the corresponding quarter in 2023. In terms of first half of the year performance, total net earnings remained unchanged at $1.0 billion. The growth in net earnings was concentrated in the Banking and Commercial & Professional Services Sectors as six out of the fourteen sectors in the exchange reported y-o-y profits growth during Q2-2024.--TradeArabia News Service