ABU DHABI: Aggregate net profits reported by companies listed on GCC exchanges witnessed a healthy year on year (YoY) growth of 5.7percent 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 percent with total net profits up for the second consecutive quarter to reach US$60.7 bn during Q2-2024 as compared to US$56.2 bn in Q1-2024 and US$57.4 bn in Q2-2023.
At the regional level, Dubai reported the second-biggest YoY growth in profits (after Bahrain) at 30.9 percent reaching US$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 highli
ghted 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 percent and 15.8 percent, respectively, while Materials and Real Estate sectors showed even stronger growth of 45.6 percent and 23.9 percent, respectively. The 68.3 percent 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 percent to reach US$116.9 bn as compared to US$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 percent and 2.2 percent, 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 percent during 1H-2024.
Source: Emir
ates News Agency
