Arab News | GCC corporate profits surge to record $74.8bn as oil boosts earnings
RIYADH: Companies listed across the Gulf Cooperation Council posted a record $74.8 billion in net profits in the second quarter of 2026, up 31.3 percent year on year, driven by gains in the energy and banking sectors, according to an analysis.
In its latest report, Kamco Invest said the rise in net profit also reflected higher average crude oil prices amid the regional geopolitical situation, which more than offset a decline in crude oil exports from the region.
Compared with the previous three months, net profit of listed companies in the GCC region increased 10 percent.
The strong figures underscore the resilience of GCC corporates even as geopolitical tensions and regional disruptions continue to weigh on investor sentiment. The gains also highlight the continued importance of energy to Gulf corporate earnings, even as governments pursue economic diversification and non-oil sectors expand.
In its report, Kamco stated: “At the country level, the increase in profits mainly reflected double-digit y-o-y growth in profits for Kuwait, Saudi Arabia, Abu Dhabi and Oman and 4.9 percent growth in profits for companies listed on Dubai Exchange.
It added: “On the other hand, Qatari and Bahraini companies reported decline in quarterly profits by 20 percent and 0.4 percent, respectively.”
Industry observer Tony Hallside, CEO of STP Partners, said the record $74.8 billion profit figure reflected strength beyond the headline number. “Higher oil prices clearly provided a major tailwind, with energy-sector profits rising more than 40 percent, but earnings growth across several other sectors shows that corporate activity remains resilient.”
He added: “For investors, that breadth is arguably more important than the record number itself.”
Aggregate revenues for GCC-listed companies rose 17 percent year on year to $381.6 billion in the second quarter and 8.1 percent quarter on quarter.
Excluding Saudi Aramco, revenue growth for the rest of the region remained in double digits at 11.4 percent.
Saudi Arabia leads growth
Saudi-listed companies accounted for the bulk of the gain in the region, with aggregate net profits rising 36.7 percent to $45.3 billion from $33.2 billion a year earlier.
Energy, banking and materials together made up 92 percent of Saudi earnings in the quarter.
Saudi Aramco’s net profit increased 42 percent year on year to $32.4 billion, supported by a 19 percent rise in total revenue as realized crude prices climbed from $66.7 a barrel in the second quarter of 2025 to $108.1 a barrel in the second quarter of this year.
Saudi Arabia’s banking sector net profits increased 8.3 percent to $6.6 billion from $6.1 billion, supported by strong lending growth and resilient operating income.
Al Rajhi Bank reported $1.9 billion net profit, up from $1.6 billion, driven by a 13.7 percent increase in net income from financing and investments and a 13.3 percent rise in total operating income.
Saudi National Bank recorded a 7.5 percent increase in net profit to $1.8 billion, mainly supported by a 1.6 percent rise in income from financing and investments.
“Saudi Arabia remains the earnings engine of the GCC market. Aramco was clearly a major contributor as higher crude prices lifted energy earnings, but the more interesting figure is that Saudi-listed company revenues still grew around 11 percent excluding Aramco,” said Hallside.
He noted that it points to “broader corporate momentum and gives investors more evidence that the opportunity set in Saudi equities is widening beyond the traditional energy story.”
Wider regional outlook
Kuwaiti companies recorded the largest percentage increase, with net profits almost doubling to $3.1 billion, partly reflecting the absence of large losses from discontinued operations that weighed on Agility in the year-earlier quarter.
Abu Dhabi profits rose 41.8 percent year on year to $14.7 billion. Dubai-listed firms grew 4.9 percent to $6.9 billion.
Qatari companies saw profits fall 20 percent to $2.9 billion, while Bahraini firms declined 0.4 percent to $572 million. Omani companies rose 24.2 percent to $1.4 billion.
In the first half of 2026, aggregate net profits for GCC-listed companies rose 23.1 percent, or $26.8 billion, to $142.81 billion. The increase was led by almost 30 percent growth in Abu Dhabi and Saudi Arabia, followed by a 14.6 percent rise in Oman. Kuwaiti and Dubai-listed companies registered high single-digit growth, while Qatar and Bahrain recorded declines of 11.6 percent and 0.2 percent, respectively.
Sectoral outlook
Sector performance was mixed but broadly positive. Energy profits jumped 41.6 percent year on year to $36.2 billion in the second quarter.
Food, beverage and tobacco more than doubled to $3.9 billion. Real estate, materials, capital goods and transportation also posted higher profits.
Banks reached a record $17.8 billion, up from $16.6 billion, with six of seven country aggregates higher. Telecom recorded modest growth. Utilities, food and staples retailing, and media and entertainment declined.
“What stands out is the divergence within the GCC. Kuwait, Saudi Arabia, Abu Dhabi and Oman all delivered double-digit profit growth, while Qatar and Bahrain saw declines. That tells investors this remains a market where country and sector selection matters,” said Hallside.
He noted that banks and telecoms continued to grow, albeit more moderately, while energy, real estate, materials and transportation were stronger. “The GCC cannot be treated as one homogeneous equity market; earnings drivers are becoming increasingly differentiated,” Hallside added.
