The profits of Gulf companies decline due to decreased commodity prices.
According to Kamco Invest's GCC Corporate Earnings Report for Q1-2023, listed companies in Dubai and Abu Dhabi experienced significant growth in net profits, outperforming their counterparts in the Gulf Cooperation Council (GCC).
Dubai-listed companies saw a 51.2% surge in net profits, reaching $4.8 billion, driven by the banking, real estate, and capital goods sectors. Abu Dhabi-listed companies witnessed a 51.8% increase in net profits, reaching $11.1 billion.
In Dubai, the banking sector showed an 84.2% rise in total net earnings, with Emirates NBD leading the way. The real estate sector in Dubai also experienced significant growth. However, the utility sector in both Dubai and Abu Dhabi saw marginal changes in profits.
Overall, across the GCC, aggregate net profit for listed companies declined by 9.1% to $61.5 billion in Q1-2023 compared to the same period in 2022, primarily due to lower profits in the energy, materials, and diversified financial sectors.
News Sources: Khaleej Times
