Abu Dhabi: The GCC’s corporates posted a six per cent growth in the second half of 2014 compared to the same time in the previous year, with total earnings in the period coming in at $32 billion (Dh117.4 billion), according to the latest report by Kuwait Financial Centre (Markaz).
The earnings were driven by strong performance from financial services and real estate. Aggregate net profits from the financial services sector in H2 2014 came in at $1.2 billion — a 99 per cent growth over H2 2013. Meanwhile, earnings from real estate came in at $2.7 billion, recording a 29 per cent growth year-on-year, the report said.
The banking sector had the highest earnings and third highest growth among the sectors at 20 per cent, and hence, had the highest impact on the overall earnings, recording an annual growth of six per cent.
The UAE and Bahrain had the highest full year earnings growth in 2014 at 32 per cent and 11 per cent respectively followed by Kuwait (at eight per cent), and Qatar (at six per cent). Oil prices were partly responsible for Saudi Arabia’s three per cent performance.
GCC corporate earnings grew by six per cent in the second half of 2014 on a year-on-year. During the same period, Bahrain was the biggest gainer with 57 per cent growth in earnings while earnings in Saudi Arabia and Oman contracted by 10 per cent and one per cent respectively, according to the report
UAE, Kuwait, and Qatar also witnessed positive double digit earnings growth in the period.
Looking at individual sectors, while real estate showed signs of slowing down towards the end of the year, it had a great run in the beginning of the year. The commodities sector, which is the second largest sector in terms of net earnings, has been impacted heavily by the lower oil prices.
