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.
Dubai-listed companies posted net profits of $6.5 billion in Q2-2025, down 5.7 per cent from $6.9 billion in the same quarter of 2024. The contraction was driven by banks and capital goods, which together contributed more than half of the emirate’s corporate earnings.
The banking sector saw a 6.4 per cent decline to $3.2 billion, led by Emirates NBD’s impairment charges and higher operating expenses. The bank’s half-year profit fell 9 per cent year-on-year to $3.4 billion, underscoring the impact of provisioning swings. In contrast, Commercial Bank of Dubai (CBD) stood out with a 15.4 per cent profit jump to $236 million in Q2-2025, supported by record total assets exceeding Dh150 billion ($40.8 billion).
Notably, out of 13 sectors on the Dubai exchange, 11 delivered profit growth in Q2-2025. Real estate, telecom, and utilities showed strong double-digit increases, signalling healthy demand fundamentals. For the first half of 2025, Dubai’s aggregate profits inched up 2.4 per cent to $12.6 billion, pointing to underlying resilience despite near-term banking weakness.
Abu Dhabi emerged as the clear outperformer, with Q2-2025 net profits surging by $1.6 billion year-on-year to $10.3 billion. Banks were the main growth engine. First Abu Dhabi Bank (FAB) reported a stellar 29.4 per cent jump in quarterly earnings to $1.5 billion, buoyed by higher non-interest income, stronger markets revenues, and lower impairments. For the first half, FAB’s profits climbed 26.5 per cent to $2.9 billion.
Abu Dhabi Commercial Bank (ADCB) and Abu Dhabi Islamic Bank (ADIB) also posted double-digit gains, supported by rising net interest and fee income. ADCB earned $699 million in Q2-2025, up 10.8 per cent, while ADIB delivered $456 million, up 12.3 per cent.
Energy remained another strong driver. Adnoc Gas reported $1.4 billion in profits for the quarter, up from $1.2 billion, benefiting from a diversified product mix and strong LNG exports. Adnoc Drilling’s earnings surged 19 per cent to $351 million, while Abu Dhabi National Energy Company (TAQA) saw profits fall 18.2 per cent to $443 million due to higher pass-through costs in transmission and distribution.
The emirate’s diversified corporate landscape — spanning financial services, energy, real estate, and industrials — is giving Abu Dhabi a structural advantage in earnings momentum compared to its regional peers.
Across the GCC, non-oil sectors continued to underpin earnings. Food, Beverage & Tobacco profits rose 65.8 per cent year-on-year to $1.1 billion, almost entirely driven by International Holding Company (IHC), whose net earnings jumped 71.6 per cent to $1.1 billion. IHC’s revenue growth in real estate and marine & dredging segments highlighted the diversification of Abu Dhabi corporates beyond hydrocarbons.
Real estate and telecom companies across Dubai and Abu Dhabi also delivered double-digit earnings gains, supported by strong population growth, higher rents, and robust demand for digital services. Utilities benefited from higher consumption, reflecting ongoing infrastructure expansion and rising residential demand.
The Q2-2025 results reinforce a theme of divergence. Dubai’s corporate earnings are being held back by banks and capital goods even as most other sectors expand, while Abu Dhabi’s banks and energy companies are powering ahead with broad-based profit growth.
For investors, this divergence is likely to shape capital flows in the coming quarters. Abu Dhabi-listed banks, led by FAB and ADCB, are positioned to attract more institutional money given their earnings momentum, diversified income streams, and strong balance sheets. Dubai’s broader market resilience offers long-term appeal, but short-term valuations could remain capped until its banking sector stabilises.
The outlook for oil and gas remains a key swing factor. Should crude prices stabilise or rebound, GCC energy earnings could recover, providing upside for both Abu Dhabi and Saudi corporates. Meanwhile, resilient non-oil sectors — particularly real estate, telecom, and food — suggest the region is building a stronger earnings base that is less dependent on hydrocarbons.
