UAE company revenues increase 16% to $8billion in first half

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Company revenues in the UAE mounted 16% to $8 billion in the first half of 2014 at a pace exceeding the average progress rate for the GCC states, highlighting the robust rebound in business activity.

UAE company revenues increase 16% to $8billion in first half

UAE company revenues increase 16% to $8billion in first half

Across the GCC, overall earnings in the first half-year of 2014 went up 11% to $33 billion over the same period last year. In general, they assume the UAE revenues progress, the second-fastest in the region after Saudi Arabia, to be robust at 15.5% for the full year of 2014 as against 2013. In the first half of 2013, UAE recorded corporate profits of $6.89 billion.

Based on the recent trends, analysts expect a yearly modifications in Saudi Arabia, major changes in corporate law offering a earnings growth of 10% for the GCC in 2014. They believe that local improvements in the GCC nation play an essential role in the regional stock markets. Execution of structural beneficial environment to conduct business in Kuwait and execution of infrastructural projects in anticipation of hosting Dubai Expo 2020 and the 2022 Fifa World Cup in the UAE and Qatar, correspondingly, are expected to support earnings improvement.

Aggregate net profits from financial services in the first half-year of 2014 were $1.2 billion, an increase of 35% over the same period last year. Earnings from multinationals came in at $1 billion recording an upsurge of 29% when compared with the similar period of 2013.

Realty earnings in the region went up 8% to $1.8 billion compared to the same 2013 period. Banking division had the highest earnings amongst the divisions recording $13.3 billion and therefore the highest impact on the complete earnings noting an upsurge of 6% over the similar period in 2013.

When compared with the preceding half-year — the first half of 2014 against the second half of 2013 — GCC corporate earnings rose by 12%. On an annual basis, Saudi Arabia was the biggest gainer with 20% in 2014 first half while Bahrain dropped the most at 23%.

Earnings in construction associated and commodities sector contracted by 1% and 4%, correspondingly, on an annual basis during the first half.

Mohamed Dekkak