GCC quarterly profits reach a new record high in Q3-2021

GCC quarterly profits reach a new record high in Q3-2021

KUWAIT: Aggregate net profits reported by companies listed on GCC exchanges reached a new record high during Q3-21 at $55.5bn, an increase of 123.4% y-o-y and 22.7% q-o-q. The increase reflected positive earnings growth across the seven exchanges in the region with Kuwait leading during the quarter led by an aggregate net profit of $5.6bn, an increase of almost six folds. Profits for Saudi Arabia, Dubai and Bahraini companies also more than doubled during the quarter, whereas Omani companies reported only marginal growth of 1.2%.

Higher profitability reflected accelerated economic activity in the region with the PMI figures for Saudi Arabia and UAE consistently and comfortably above the growth mark of 50 at 57.7 and 55.7 during October-21, respectively. The COVID-19 pandemic has largely remained under control over the last few months with declining cases as well as due to a fast paced vaccination effort in the GCC. As a result, bulk of the economic sectors are back at pre-pandemic capacities barring a few that include tourism and hospitality sectors.

The sector performance chart once again saw a repeat of last quarter with energy, banks and materials companies leading the quarterly net profit growth. The transportation sector was next with a net