The United Arab Emirates has emerged as a standout performer in the GCC, with its corporate earnings surging in the third quarter of 2024, bucking a regional trend of declining profits.
According to Kamco Invest’s GCC Corporate Earnings Report for Q3 2024, the UAE’s listed companies recorded strong growth, while overall corporate earnings across the GCC fell by 3.3% year-on-year, declining from $61.6 billion in Q3 2023 to $59.6 billion. Abu Dhabi’s listed companies reported a remarkable 19.2% increase in net profits, reaching $9.1 billion compared to $7.6 billion in the same quarter last year. Dubai also saw a rise, with a 5.4% year-on-year increase, posting $6 billion in net profits, up from $5.7 billion.
The report highlighted the UAE’s economic diversification as a key driver, contrasting with the GCC’s energy sector, which experienced an 18.5% drop in profits, falling to $28.5 billion in Q3 2024.
Sector Highlights: Dubai
Dubai’s earnings growth was primarily driven by banks, telecommunications, and real estate, which together contributed 87.7% of the quarter’s total earnings. Of the 13 sectors listed on the Dubai Financial Market, nine posted year-on-year profit growth.
The banking sector reported a 3.2% rise in quarterly net profits, reaching $2.9 billion. For the first nine months of 2024, the sector achieved a 10.4% increase, totaling $9.4 billion compared to $8.5 billion during the same period in 2023. The real estate sector also recorded a modest 3% growth, with profits reaching $1.6 billion, bolstered by strong performance from Emaar Development, which saw a 9.9% rise in earnings due to robust market demand and investor confidence.
Sector Highlights: Abu Dhabi
Abu Dhabi’s corporate earnings surged by 9.3% in the first nine months of 2024, totaling $25.2 billion. The banking sector led the growth, with Q3 profits rising by 20.6% year-on-year to $2.5 billion. The energy sector followed closely, posting an 18.6% increase to $2.2 billion. Additional contributions came from transportation and capital goods, which also reported year-on-year earnings growth.
Regional Outlook
Across the GCC, the decline in Q3 profits was primarily driven by weaker performances in the energy, real estate, and food and beverage sectors. However, gains in banking (up 10.2%) and materials (which posted multifold profit growth) partially offset the overall downturn.
For the first nine months of 2024, GCC-listed banks recorded a 10.7% profit increase to $44 billion, while the materials sector achieved 79.5% growth, reaching $5.1 billion. Sectors like diversified financials and transportation also posted strong gains.
The UAE’s performance underscores the strength of its non-oil sectors, highlighting the nation’s success in diversifying its economy and reducing dependence on energy revenues.
