The aggregate net profits for companies listed on GCC exchanges reached a year-on-year (YoY) growth of 5.7% during Q2 2024, according to a report by Kamco Invest.
The region experienced a 8.1% quarter on quarter (QoQ) growth to $60.7 billion, compared to the $56.2 billion and $57.4 billion achieved in the Q1 2024 and S$57.4 billion in Q2 2023, respectively. The rise in profit was attributed to broad-based growth across most markets in the region.
Bahrain reported the largest YoY growth for the quarter, reporting double-digit profit increases. Other GCC countries experienced low to mid-single digit profit growth.
Dubai posted the second-largest YoY profit growth, with a 30.9% increase to $6.7 billion in the quarter, largely due to accounting adjustments and restructuring by DSI.
In terms of sectors, banking and telecommunications reported profit growths of 10.8% and 15.8%, respectively, according to the report. Meanwhile, the materials and real estate sectors showed even stronger growth of 45.6% and 23.9%, respectively. The capital goods sector exhibited a 68.3% profit growth, reflecting the accounting adjustments related to DSI.
For the first half of 2024, net profits for GCC-listed companies were nearly flat, with a slight increase of 0.1% to $116.9 billion, compared to $116.8 billion in the first half of 2023.
Dubai showed the largest YoY growth, with a 20% increase during the first half of 2024.