A panoramic view of the Dubai skyline. Net profits for companies listed on the Dubai stock exchange rose by 5.4 percent year-on-year to $6.0 billion in Q3 2024, according to a recent report by Kamco Invest.
The UAE's economic diversification strategy once again demonstrated its effectiveness, as data revealed that corporate earnings in the country's third quarter defied the broader GCC trend of declining profits. The Kamco Invest GCC Corporate Earnings Report: Q3 2024 highlighted that aggregate net profits across GCC exchanges fell by 3.3 percent year-on-year to $59.6 billion in Q3 2024, down from $61.6 billion in Q3 2023. In contrast, listed companies in Abu Dhabi saw a significant 19.2 percent increase in net profits, reaching $9.1 billion compared to $7.6 billion in the same period the previous year. Dubai-listed companies also experienced a 5.4 percent rise in net profits, reaching $6.0 billion in Q3 2024, up from $5.7 billion in Q3 2023.
The year-on-year decline in GCC profits was primarily driven by a drop in the energy sector, which saw profits fall by 18.5 percent to $28.5 billion, underscoring the resilience of the UAE's non-oil sector. In Dubai, earnings growth was primarily fueled by banks, telecom, and real estate companies, which together accounted for 87.7 percent of the aggregate earnings on the exchange during the quarter. Notably, out of the 13 sectors on the Dubai Stock Exchange, nine saw year-on-year growth in profits, while the remaining four sectors, including utilities and materials, reported declines.
Looking at the nine-month performance, net profits increased by 14.8 percent year-on-year to reach $18.0 billion compared to $15.7 billion in the first nine months of 2023. The banking sector's net profits rose by 3.2 percent year-on-year in Q3 2024 to $2.9 billion, up from $2.8 billion in Q3 2023. Over the first nine months of 2024, banking sector profits increased by 10.4 percent to $9.4 billion, up from $8.5 billion in the same period the previous year. Four out of the seven banks that reported their Q3 2024 financials saw declines in net profits, while the remaining three banks reported year-on-year earnings gains.
The real estate sector's aggregate profits improved by 3.0 percent in Q3 2024 to $1.6 billion, compared to $1.5 billion in Q3 2023. The sector's moderate growth was largely due to the performance of Emaar Development, which recorded a 9.9 percent year-on-year growth in profits to $563.3 million, up from $512.5 million. The company's strong earnings were attributed to robust demand in Dubai's real estate market, efficient project execution, and sustained investor confidence.
In Abu Dhabi, total net profits increased by 9.3 percent year-on-year during the first nine months of 2024 to $25.2 billion, up from $23.1 billion in the same period the previous year. The banking sector in Abu Dhabi saw a 20.6 percent increase in net profits, reaching $2.5 billion in Q3 2024, up from $2.1 billion in Q3 2023. The energy sector also posted significant growth, with net profits rising by 18.6 percent to $2.2 billion, compared to $1.9 billion in Q3 2023. Other key sectors, including transportation and capital goods, also contributed to the overall growth in earnings.
Across the wider GCC, lower profits in the real estate and F&B sectors further reduced aggregate corporate profits. However, growth in the banking and materials sectors partially offset the overall decline. Banks in the region saw a 10.2 percent year-on-year profit growth to $14.9 billion, while the materials sector recorded substantial profit growth. During the first nine months of 2024, most sectors saw higher year-on-year profits, although the energy sector's 9.8 percent decline to $89.1 billion offset the overall profit growth. The banking sector's net profits rose by 10.7 percent to $44.0 billion, and the materials sector saw a 79.5 percent profit growth to $5.1 billion.
Sectors such as diversified financials and transportation also recorded higher profits during the first nine months of 2024, reaching $1.8 billion and $2.7 billion, respectively.
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