Dubai firms defy regional downtrend with 29% Q2 profit surge

Dubai firms defy regional downtrend with 29% Q2 profit surge

Earnings growth mainly driven by banks, transportation and telecom companies

The Dubai Financial Market. Dubai-listed companies defied the regional downtrend by recording a remarkable surge in quarterly net profit. — File photo

Published: Wed 30 Aug 2023, 4:01 PM Last updated: Wed 30 Aug 2023, 4:02 PM

Dubai-listed companies defied the regional downtrend by recording a remarkable surge in quarterly net profit as GCC-listed firms continued to show a year-on-year decline in Q2-2023, mainly driven by a fall in energy and commodity prices.

Companies listed in Dubai reported a 28.6 per cent year-on-year (Y-o-Y) profit growth to $5 billion in the second quarter, up from $3.9 billion in the same 2022 quarter. According to a Kamco Invest research report, earnings growth of Dubai corporates during the quarter were mainly driven by banks, transportation and telecom companies with the three sectors accounting for 65 per cent of the aggregate earnings in the exchange during the quarter. On the other hand, listed companies in Abu Dhabi witnessed a 3.4 per cent Y-o-Y dip in total net profits during Q2-2023 to $8.0 billion as compared to $8.2 billion during Q2-2022.

In contrast, the aggregate net profit for GCC-listed companies fell to $57.9 billion in the second quarter from