UAE-listed companies in Dubai and Abu Dhabi have reported a significant increase in net profits during the first quarter of 2023, surpassing their counterparts in the GCC region.
Dubai-listed companies saw a 51.2% jump in net profits, reaching $4.8B compared to $3.2B in the same period last year.
The growth was primarily driven by the banking, real estate, and capital goods sectors. Similarly, Abu Dhabi-listed companies experienced a 51.8% year-on-year increase in net profits, reaching $11.1B compared to $7.3B in Q1-2022.
Dubai’s banking sector witnessed a remarkable 84.2% increase in net earnings, reaching $2.8B in Q1-2023, according to Khaleej Times.
Emirates NBD played a significant role in this growth, achieving a 114.7% rise in net earnings to $1.6B, attributed to its strong performance in retail lending.
In the real estate sector, aggregate net earnings in Dubai rose by 31.4% to $1.2B, with Emaar Properties contributing significantly with Q1-2023 net profits of $872.9M.
However, Dubai’s utilities sector experienced a slight decline of 0.5% in total profits, amounting to $248.0M.
In Abu Dhabi, the utilities sector, represented solely by Abu Dhabi National Energy Co, reported a substantial net profit of $3.2B, compared to $536.6M in Q1-2022. The banking sector in Abu Dhabi saw a smaller profit growth of 3.2% in Q1-2023, reaching $2.2B.
In contrast to the UAE’s positive performance, the GCC region as a whole experienced a decline in aggregate net profit for listed companies.
There was a 9.1% decrease, with net profits totaling $61.5B in Q1-2023 compared to $67.9B in the same period last year.
Sectors such as energy, materials, and diversified financials accounted for the majority of the decline. However, the banking and utilities sectors showed growth in net profits during the quarter.
