The second quarter of 2024 saw a significant increase in net profits for Dubai-listed companies, with a growth rate of 30.9% year-on-year to reach $6.7 billion. This growth far outpaced the aggregate net profit surge of 5.7% posted by listed companies across the GCC. Dubai reported the second-highest year-on-year growth in profits during Q2 2024, largely due to accounting adjustments and restructuring implemented by DSI. Earnings growth in Q2 was primarily driven by Dubai-based banks, capital goods, and telecom companies, which accounted for 83.1% of the total earnings during the quarter.
Junaid Ansari, head of Investment Strategy & Research at Kamco, explained that out of Dubai Financial Market’s 13 sectors, seven witnessed a year-on-year increase in profits during Q2 2024, while the remaining six sectors, including insurance and diversified financial sectors, reported declines. In terms of first-half performance, net profits increased by 20% year-on-year to reach $12.1 billion compared to $10 billion in the first half of 2023. The banking sector saw a 12% year-on-year increase in total net profits in Q2 2024, reaching $3.3 billion, up from $2.9 billion in Q2 2023. The sector’s profits in the first half increased by 13.9% year-on-year to reach $6.5 billion, up from $5.7 billion in 1H-2023.
The rise in total earnings for the banking sector was primarily driven by Emirates NBD, which delivered a record H1 profit of Dh13.8 billion. The bank’s profits grew by 13.6% year-on-year during Q2 2024, reaching $1.9 billion compared to $1.7 million during the corresponding period in 2023. The sector’s total earnings were also supported by Emirates Islamic Bank, reporting its highest-ever half-year profit of Dh1.7 billion during 1H-2024. Aggregate profits for the capital goods sector saw a massive jump almost 11 times during Q2 2024, reaching $1.2 billion compared to $101.5 million in Q2 2023. The jump in net earnings was mainly due to profits reported by Drake and Scull, which announced $1.0 billion in Q2 2024 net profits compared to an $11.8 million loss in Q2 2023.
Listed real estate stocks in Dubai also reported significant growth in net profits, with a 29% year-on-year increase in Q2 2024 to $1.1 billion compared to $859.2 million in Q2 2023. First-half net earnings for the sector saw an 11.9% year-on-year growth to reach $2.4 billion versus $2.1 billion in 1H-2023. Emaar Properties’ strong performance was the primary driver of the sector’s growth during the period. Listed companies in Abu Dhabi saw a 4.7% year-on-year uptick in total net profits during Q2 2024 to reach $8.3 billion compared to $7.9 billion in Q2 2023. However, total net profits declined by 2.2% year-on-year during the first half of 2024 to reach $16.2 billion from $16.5 billion in the first half of 2023.
Overall, combined net profits reported by companies listed on GCC exchanges saw a healthy year-on-year growth of 5.7% during Q2 2024, led by broad-based growth across most markets in the region. The quarter-on-quarter growth came in at 8.1%, with total net profits increasing for the second consecutive quarter to reach $60.7 billion in Q2 2024 compared to $56.2 billion in Q1-2024 and $57.4 billion in Q2 2023.
