Today's Edition
ABU DHABI (WAM)
Aggregate net profits reported by companies listed on GCC exchanges witnessed a healthy year on year (YoY) growth of 5.7 per cent during Q2-2024 led by a broad-based growth across most markets in the region.
Kamco Investment Company, a regional non-banking financial powerhouse headquartered in Kuwait, in its latest report, stated that the quarter on quarter (QoQ) growth came in at 8.1 per cent with total net profits up for the second consecutive quarter to reach $60.7 bn during Q2-2024 as compared to $56.2 bn in Q1-2024 and $57.4 bn in Q2-2023.
At the regional level, Dubai reported the second-biggest YoY growth in profits (after Bahrain) at 30.9 per cent reaching $6.7 bn during Q2-2024 mainly related to accounting adjustments and restructuring implemented by DSI.
According to the report, companies in Bahrain also reported double-digit YoY 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 per cent and 15.8 per cent, respectively, while Materials and Real Estate sectors showed even stronger growth of 45.6 per cent and 23.9 per cent, respectively. The 68.3 per cent profit growth for the Capital Goods sector reflected the accounting adjustments related to DSI.
In terms of 1H-2024 performance, net profits for GCC listed corporates was almost flat with a marginal increase of 0.1 per cent to reach $116.9 bn as compared to $116.8 bn during 1H-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 per cent and 2.2 per cent, respectively, which was completely offset by higher total profits for the rest of the country aggregates.
The report concluded that the aggregate for Dubai once again showed the biggest YoY growth of 20.0 per cent during 1H-2024.
