Clear outperformer: Abu Dhabi banks drive GCC profits

Dubai-listed companies post net profits of $6.5 billion in Q2-2025, down 5.7% from in the same quarter of 2024

- Issac John

Aggregate net profits of listed companies across the GCC fell 8.7 per cent year-on-year in the second quarter of 2025, dropping to $56.7 billion from $62.1 billion a year earlier.

Sequentially, profits were also down 3.4 per cent from the previous quarter, underlining the strain from weaker crude and petrochemical prices that dragged the energy and basic materials sectors.

Yet beneath the headline decline, divergent trends emerged across member states and sectors. Abu Dhabi reinforced its role as a corporate earnings powerhouse, while Dubai's listed companies saw banking and capital goods weigh on results despite strong gains in most other industries.

The sharp fall in oil prices during the quarter was the primary headwind, with energy majors across the region seeing bottom-lines contract.

Petrochemical players faced a similar squeeze from softer global prices. Saudi Arabia, the region's largest market, recorded the steepest profit decline in absolute terms down $6.3 billion year-on-year to $33.04 billion. Kuwait followed with a 27 per cent decline to $1.65 billion, largely due to discontinued operations at Agility.

By contrast, Abu Dhabi, Oman and Qatar delivered robust earnings growth that partly cushioned the regional picture. Non-oil momentum was evident across food and beverages, real estate, utilities, telecom, and banks most of which posted double-digit profit growth. GCC banking sector net profits climbed 10.3 per cent to $16.6 billion in Q2-2025, confirming balance-sheet resilience and strong credit demand.