GCC-Listed Firms Report $60.7 Billion Earnings In Q2 2024, Reveals Kamco Invest

Companies listed on GCC exchanges experienced a notable year-on-year (YoY) net profit growth of 5.7% in Q2-2024, driven by widespread market improvements across the region. Kamco Investment Company, a prominent non-banking financial institution based in Kuwait, highlighted in its recent report that quarter-on-quarter (QoQ) growth was 8.1%. Total net profits rose for the second consecutive quarter, reaching US$60.7 billion in Q2-2024, up from US$56.2 billion in Q1-2024 and US$57.4 billion in Q2-2023.

At the regional level, Dubai reported the second-highest YoY profit growth at 30.9%, reaching US$6.7 billion during Q2-2024. This increase was primarily due to accounting adjustments and restructuring by DSI. Bahrain also saw double-digit YoY profit growth during this period, followed by low to mid-single digit profit increases in other GCC countries.

The report indicated that most sectors within the GCC experienced significant profit increases. Banks and Telecom sectors posted profit growths of 10.8% and 15.8%, respectively. The Materials sector showed even stronger growth at 45.6%, while the Real Estate sector grew by 23.9%. The Capital Goods sector saw a remarkable 68.3% profit increase due to accounting adjustments related to DSI.

In terms of first-half performance for 2024, net profits for GCC-listed companies remained almost flat with a slight increase of 0.1%, totalling US$116.9 billion compared to US$116.8 billion during the first half of 2023.

The mixed trends at the country level were evident as Saudi Arabia and Abu Dhabi reported declines in net profits by 2.7% and 2.2%, respectively, which were offset by higher total profits from other countries in the region.

The aggregate data for Dubai once again showed the highest YoY growth at 20% during the first half of 2024.

This broad-based growth across various sectors and markets underscores the resilience and adaptability of companies within the GCC region amidst changing economic conditions.

With inputs from WAM