In Q2 of 2024, aggregate net profits reported by companies listed on GCC exchanges saw a robust year-over-year (YoY) growth of 5.7 percent, driven by growth in most of the region’s markets.
In its most recent report, Kamco Investment Company—a regional powerhouse in non-banking finance with its headquarters located in Kuwait—stated that its quarter-over-quarter (QoQ) growth was 8.1% and that its total net profits increased for the second straight quarter, reaching US$60.7 billion in Q2-2024 as opposed to US$56.2 billion in Q1-2024 and US$57.4 billion in Q2-2023.
Regionally, Dubai recorded the second-highest YoY growth in profits (behind Bahrain), with 30.9 percent, reaching US$6.7 billion in Q2 of 2024. This was primarily due to DSI-implemented restructuring and accounting adjustments.
The report states that businesses in Bahrain saw double-digit year-over-year profit growth during the quarter, with low- to mid-single-digit profit growth observed in the remaining GCC nations. The increase in earnings also demonstrated a widespread double-digit rise in most GCC sectors.
Important industries like telecom and banks reported profit growth of 10.8 and 15.8 percent, respectively, while the real estate and materials sectors saw even greater growth of 23.9 and 45.6 percent, respectively. The accounting adjustments on DSI were reflected in the Capital Goods sector’s 68.3 percent profit growth.
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