Listed companies in Dubai and Abu Dhabi, UAE firms have delivered an outstanding financial performance in the first quarter of 2023, outpacing their GCC counterparts. According to Kamco Invest’s GCC Corporate Earnings Report Q1-2023, Dubai-listed companies reported a remarkable 51.2 per cent year-on-year increase in net profits, soaring to $4.8B compared to $3.2B in the same period of 2022. Similarly, Abu Dhabi-listed companies witnessed a substantial 51.8 per cent rise in net profits during Q1-2023, reaching an impressive $11.1B compared to $7.3B in Q1-2022.
Driving Dubai’s impressive financial performance in Q1-2023 was the banking, real estate, and capital goods sectors. The banking sector experienced a staggering 84.2 per cent surge in total net profits, with Emirates NBD leading the way with a remarkable 114.7 per cent jump in net earnings. The bank’s outstanding performance was attributed to its record-breaking quarterly results in retail lending.
The real estate sector in Dubai also contributed significantly to the overall positive performance, with aggregate net earnings witnessing a healthy 31.4 per cent increase to reach $1.2B. Emaar Properties played a crucial role in bolstering the sector’s earnings, reporting net profits of $872.9M in Q1-2023, compared to $609.6M in the same period last year.
While Dubai’s utility sector experienced a marginal 0.5 per cent dip in total profits, Abu Dhabi’s utility sector displayed an exceptional performance. Abu Dhabi National Energy Co, the sole company in this sector, reported a net profit of $3.2B during Q1-2023, marking a significant increase from $536.6M in Q1-2022.
In contrast, the aggregate net profits of listed companies across the GCC showed a decline of 9.1 per cent during Q1-2023 compared to the same period last year. This decline was primarily driven by the energy, materials, and diversified financial sectors, which accounted for a substantial decline in profits. However, the banking and utilities sectors demonstrated positive year-on-year profit growth in Q1-2023.
Overall, the exceptional financial performance of Dubai and Abu Dhabi-listed companies in Q1-2023 highlights their resilience and ability to thrive despite challenging market conditions. With impressive earnings growth in key sectors, these cities continue to cement their positions as attractive investment destinations in the region.
