UAE firms lead GCC earnings surge as Q3 profits hit 3-year high

27/11/2025 04:07 AST

Corporate earnings across the Gulf reached their strongest level in three years in the third quarter of 2025, with UAE-listed companies emerging as the region's standout performers.

According to Kamco Invest, aggregate net profits of listed firms in the GCC rose 7.9 per cent year-on-year to $65.6 billion, up from $60.7 billion a year earlier, and jumped 15.7 per cent from the previous quarter. Banks and real estate companies were the main drivers of this growth, supported by a modest recovery in the energy and materials sectors.

The UAE delivered the biggest increase in absolute profit growth among all GCC markets, reflecting the continued strength of its banking, real estate and utilities sectors, along with rising investment and population growth that have fuelled domestic demand. Dubai-listed companies posted one of their highest quarterly results on record, while Abu Dhabi firms saw double-digit earnings expansion.

Dubai-listed companies recorded a sharp 29.7 per cent year-on-year rise in Q3 net profits to $8.1 billion, driven largely by banks, utilities and real estate firms, which together accounted for more than 87 per cent of total earnings. Twelve of the exchange's thirteen sectors reported higher profits.

Banks delivered a particularly strong performance, with sector profits rising 28.7 per cent to $3.7 billion. Emirates NBD saw net profit climb to $1.7 billion, up 23.3 per cent on improved loan growth and higher fees. Dubai Islamic Bank posted an 18 per cent rise to $529.3 million, while Mashreq Bank recorded a 21.3 per cent decline due to higher impairments and lower non-interest income.

Dubai's real estate sector continued to benefit from unprecedented demand, with aggregate profits rising 43.7 per cent to $2.3 billion. Emaar Properties reported a 37.4 per cent jump in quarterly profits to $1.2 billion, supported by strong sales reaching Dh52.9 billion ($14.4 billion) for the first nine months of the year. Emaar Development posted a 57.1 per cent surge to $884.8 million, reflecting ongoing momentum in new project launches.

Utilities also supported the emirate's earnings growth. Dewa reported a 26.3 per cent rise in Q3 profits to $983.1 million, driven by increasing demand and operational efficiencies.

Abu Dhabi-listed companies recorded a 17 per cent year-on-year increase in Q3 profits to $11.1 billion, bolstered by strong performances in banking, energy, and consumer sectors.

Banks in the capital posted aggregate profits of $3.3 billion, up 21.2 per cent from the prior year. First Abu Dhabi Bank led with $1.5 billion in net earnings, a 20.8 per cent increase driven by broad-based expansion across its divisions and rising client activity. Abu Dhabi Commercial Bank followed with $841.4 million, up from $651 million a year earlier.

The energy sector delivered the second-largest contribution to Abu Dhabi's earnings. Aggregate profits climbed 10.9 per cent to $2.5 billion, supported by Adnoc Gas, which posted $1.34 billion in quarterly profit amid rising domestic demand. Taqa reported a 26.6 per cent increase in quarterly net income to $645 million, aided by lower operating expenses, while Adnoc Drilling saw profits rise nearly 10 per cent.

The capital's food, beverage and tobacco sector also reported healthy profit growth, largely driven by International Holding Company, whose net profit rose 27.7 per cent to $1.3 billion.

Analysts noted that with Dubai and Abu Dhabi both reporting strong multi-sector earnings and sustained momentum in banking, real estate and energy, the UAE remains the GCC's most consistent earnings growth engine in 2025. The country's listed companies recorded substantial profit gains for the first nine months of the year - 5.6 per cent in Abu Dhabi and 2.7 per cent in Dubai - putting the UAE on track for one of its strongest corporate earnings years on record.

Across the region, all GCC markets reported higher year-on-year profits in Q3, with banking sector earnings hitting a record $17.4 billion. UAE banks led the region with 25.1 per cent profit growth, followed by Saudi banks at 15.2 per cent.

Saudi-listed companies, however, saw mixed results for the first nine months of the year. Although Q3 earnings reached a five-quarter high of $38.2 billion, nine-month profits declined 5.3 per cent due to weaker performance in the energy, materials and insurance sectors. The materials sector across the GCC saw profits recover to $1.8 billion, up 9.3 per cent year on year after a steep drop the previous quarter.

Khaleej Times