In a remarkable financial performance, companies listed across the Gulf Cooperation Council (GCC) reported a record net profit of $74.8 billion in the second quarter of 2026, marking a 31.3 percent increase year-on-year. This surge is largely attributed to gains in the energy and banking sectors, as highlighted in a recent analysis by Kamco Invest.
The report indicates that the rise in net profits was bolstered by higher average crude oil prices, which offset a decline in crude oil exports from the region. Compared to the previous quarter, net profits increased by 10 percent, underscoring the resilience of GCC corporates amid ongoing geopolitical tensions and regional disruptions.
Sector Performance and Regional Insights
According to Kamco, the profit growth was particularly pronounced in Kuwait, Saudi Arabia, Abu Dhabi, and Oman, all of which experienced double-digit year-on-year growth. Conversely, Qatari and Bahraini companies reported declines in quarterly profits of 20 percent and 0.4 percent, respectively.
Industry expert Tony Hallside, CEO of STP Partners, noted that the record profit figure reflects 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 stated.
Saudi Arabia’s Dominance
Saudi Arabia emerged as a key player in this financial landscape, with listed companies in the kingdom accounting for a significant portion of the regional gains. Aggregate net profits for Saudi firms rose by 36.7 percent to $45.3 billion, driven by robust performances in the energy, banking, and materials sectors, which collectively constituted 92 percent of Saudi earnings for the quarter.
Saudi Aramco reported a net profit increase of 42 percent year-on-year to $32.4 billion, supported by a 19 percent rise in total revenue as crude prices climbed from $66.7 a barrel in the second quarter of 2025 to $108.1 a barrel in the same period this year. The banking sector also showed resilience, with net profits rising 8.3 percent to $6.6 billion.
Wider Regional Outlook
Kuwaiti companies saw the largest percentage increase, with net profits nearly doubling to $3.1 billion. Abu Dhabi’s profits rose by 41.8 percent year-on-year to $14.7 billion, while Dubai-listed firms grew by 4.9 percent to $6.9 billion. In contrast, Qatari companies experienced a 20 percent decline in profits to $2.9 billion, and Bahraini firms saw a slight decrease of 0.4 percent to $572 million.
Overall, the first half of 2026 saw aggregate net profits for GCC-listed companies rise by 23.1 percent, or $26.8 billion, totaling $142.81 billion. This growth was primarily driven by nearly 30 percent increases in both Abu Dhabi and Saudi Arabia.
As the GCC continues to navigate a complex economic landscape, the mixed sector performance highlights the importance of strategic investment decisions. Hallside emphasized that the divergence in profit growth across the region indicates that “the GCC cannot be treated as one homogeneous equity market; earnings drivers are becoming increasingly differentiated.”
For further details, you can read the full report on Arab News.
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