GCC corporate profits hit 12-quarter high on banking, real estate surge

28/11/2025 03:58 AST

Corporate earnings across the Gulf climbed to a 12-quarter high in the third quarter as stronger banking and real estate profits offset weakness in telecom and utilities, a new analysis showed.

In its latest earnings review, Kamco Invest said aggregate net income for listed companies in the Gulf Cooperation Council saw an annual rise of 7.9 percent to $65.6 billion, up from $60.7 billion a year earlier.

Profits also jumped 15.7 percent from the previous quarter, marking one of the strongest sequential gains since 2022, the Kuwait-based investment firm added.

The report highlighted that the annual increase was "mainly led by higher profits for the banking and real estate sectors," which successfully offset declines in the telecom and utilities sectors. A marginal recovery in the energy sector, following a previous quarterly decline, also contributed to the strong aggregate performance.

At the country level, the UAE led with the biggest absolute growth in profits, followed by Kuwait and Saudi Arabia.

Profits for Saudi-listed companies reached a five-quarter high of $38.2 billion, while net profits for Dubai-listed companies soared to one of the highest quarterly levels on record at $8.1 billion.

The banking sector was a standout performer, with listed banks in the GCC achieving a new record high of $17.4 billion in net profits during the third quarter of this year.

The report noted that the increase was "driven by a 7.8 percent growth in net interest income while non-interest income increased by 20.4 percent as compared to the third quarter of 2024," which more than offset a rise in quarterly impairments.

UAE-listed banks showed a total net profit growth of 25.1 percent, while Saudi banks also posted a 15.2 percent growth.

In the real estate sector, net profits surged by almost two-thirds during the quarter, "mainly led by higher profits in most markets." UAE-listed real estate companies showed the biggest absolute growth, with a year-on-year increase of $800 million, or 43.1 percent, to reach $2.67 billion.

The report identified Dubai as "the biggest market for real estate in the region with a net profit of $2.3 billion, accounting for almost two-thirds of the sector profits in the third quarter of 2025."

The energy sector showed resilience, posting a marginal year-on-year growth of 0.5 percent to reach $28.9 billion. This growth occurred "despite a 13.7 percent decline in average trend crude oil price that reached $69.0/b during the third quarter of 2025," the report noted.

Companies like Abu Dhabi National Energy Co. saw profits rise by 26.6 percent due to lower operating expenses.

Elsewhere in the Gulf, earnings in Qatar remained broadly steady, as solid banking and transport results were tempered by softer performance in industrial and energy-linked companies.

Oman continued to show steady but moderate growth, supported mainly by the banking and utilities sectors, while Bahrain recorded a slight improvement in profitability driven by continued strength in financial services.

These markets contributed to what Kamco described as a "broad-based improvement" across the region.

Looking at the broader nine-month period, performance was more mixed across the GCC. While Abu Dhabi and Dubai-listed companies showed strong growth of 5.6 percent and 2.7 percent respectively, "net profits for Saudi-listed companies dropped 5.3 percent to reach $107.5 billion."

This decline was mainly led by a fall in profits for the energy, materials and insurance sectors that was partially offset by higher profits for banks and the real estate sectors.