Covid-19 crisis: UAE, GCC firms’ Q2 net profits set to plunge – ZAWYA

Covid-19 crisis: UAE, GCC firms’ Q2 net profits set to plunge – ZAWYA

covid-19 crisis: uae, gcc firms' q2 net profits set to plunge market insiders and analysts anticipate that hospitality, retail, real estate, construction, banking and commodity-based companies will report up to 50% decline in their second-quarter profits    an investor uses his mobile phone at the dubai financial market. uae and gcc companies will report a significant drop in their second-quarter earnings due to higher provisions and lower revenues in the wake of the covid-19 crisis, according to experts.market insiders and analysts anticipate that hospitality, retail, real estate, construction, banking and commodity-based companies will report up to 50 per cent decline in their second-quarter profits amid worldwide economic slowdown after the coronavirus outbreak earlier this year. they fear worst performance in certain sectors such as financials, real estate, travel and tourism and hope that telecom and consumer staple firms are likely to see less impact of covid-19 on their earnings."the corporate sector will see a bigger decline in second-quarter profit compared to the previous quarter, both in the gcc and the uae. we estimate a 56 per cent decline in profits for the listed companies in the uae and a 45 per cent drop in the gcc on a year-on-year basis,"