GCC Companies Report 5.7% YoY Profit Growth in Q2-2024

Aggregate net profits for companies listed on Gulf Cooperation Council (GCC) exchanges grew by 5.7% year on year (YoY) during the second quarter of 2024, driven by broad-based growth across most regional markets. This performance reflects the resilience of key sectors amid global economic challenges, with particular strength observed in the banking, materials, and telecommunications industries.

Saudi Arabia, the largest economy in the region, saw a 2.6% YoY increase in aggregate net profits, reaching $39.1 billion in Q2-2024. The banking, materials, and telecommunications sectors were the main contributors to this growth. However, several sectors, including energy and consumer services, experienced profit declines, tempering the overall increase.

The United Arab Emirates (UAE) displayed robust financial results across both its main markets, Dubai and Abu Dhabi. Dubai-listed companies reported a significant 30.9% YoY rise in net profits, totaling $6.7 billion. Banks, capital goods, and telecommunications companies drove this growth, with these sectors accounting for over 80% of the exchange’s aggregate earnings.

Abu Dhabi’s companies experienced a more moderate 4.7% YoY increase in net profits, amounting to $8.3 billion. The banking and energy sectors were the primary growth drivers, with the latter witnessing a 20.7% YoY surge in profits. However, on a half-year basis, Abu Dhabi’s total net profits slightly declined by 2.2% compared to the same period in 2023.

Bahrain and Kuwait also reported positive financial performances. Bahrain-listed companies achieved a 37.5% YoY rise in total net profits for Q2-2024, driven by gains in the banking and materials sectors. Meanwhile, Kuwait’s listed firms saw a modest 1.0% YoY growth in net profits, with the real estate sector showing the most significant improvement, reporting a 104.4% jump in profits.

Qatar’s stock market recorded a 5.6% YoY gain in total earnings for Q2-2024, reaching $3.35 billion. The banking, insurance, and capital goods sectors were the primary contributors, although this growth was partially offset by declines in the materials and real estate sectors.

In contrast, Oman was the only GCC market to report a slight decline in total net profits, with a 0.9% YoY decrease to $506.4 million in Q2-2024. This was largely due to underperformance in several key sectors, despite growth in banking and commercial services.

The overall 5.7% YoY growth in the GCC’s aggregate net profits highlights the region’s economic resilience, with a diverse range of sectors contributing to the financial health of these markets. As the global economic landscape continues to evolve, the GCC remains a key area of focus for investors seeking stability and growth opportunities.