UAE’s profits boost in GCC during first quarter

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Impelled by record-high earnings growth by Dubai companies, the UAE continued to do better than the other countries in the GCC and drove the region’s corporate earnings to $16.8 billion, up 12.1% annual in the first quarter 2014.

UAE’s profits boost in GCC during first quarter

UAE’s profits boost in GCC during first quarter

As the UAE outpaced other nations in the region by contributing 5.9% to the overall regional growth, Dubai posted an astonishing profits increase of 45.6% in the first quarter compared to the similar time in 2013, according to Global Investment House’s GCC Earnings Monitor.

While UAE companies recorded a combined 26.5% annual raise, seriously contributing to the region’s incremental increase in earnings, Kuwait registered a first-quarter earnings growth of 14.6% to come second.

Saudi Arabia recorded an 11.1% surge in earnings, then Qatar with 8.9%. However, Bahrain witnessed a 25.4% annual fall in the first quarter while Oman’s slid 4.6%.

The UAE, the best-performing marketplace in the GCC, has witnessed solid resurgence on development in the real estate and banking sectors, driven by robust investor confidence. Progress in earnings in the UAE was driven by Dubai, which continued to surpass the rest.

Abu Dhabi, posted a first-quarter acquire of 17.8% to $2.7 billion, driven by an 11.4% growth in the banking sector’s earnings (57.8% of consolidated earnings). Dubai’s corporate earnings surged 45.6% to $1.5 billion in the quarter, led by banks (42.6% growth), real estate and construction (77.8%) and investment and financial services (103.7%).

Earnings of Dubai’s real estate and construction sector rose 77.8% to $300 million in the quarter. Dubai’s investment and financial services sector earnings surge was driven by Dubai Financial Market, which posted a sharp 696.7% jump in profit to Dh215.1 million led by a 289% surge in revenues as trading volumes rose 428.8%.

The capital’s real estate industry recorded an 80.8% increase, accounting for 5.5% of consolidated first-quarter profits

Meanwhile, telecommunications also contributed notably during the quarter, with earnings growing 10.9%.

Mohamed Dekkak