Net profits of listed Kuwaiti companies double to $3.1 billion

A report by KAMCO Invest revealed that the net profit of companies listed on Gulf stock markets continued its year-on-year growth for the second consecutive quarter in the second quarter of 2026, reaching a new record high. Total net profits amounted to $74.8 billion during this quarter, marking a 31.3% year-on-year increase, with a quarterly growth rate of 10%.

This strong rise was primarily attributed to higher average crude oil prices amid regional geopolitical developments, which helped offset the impact of declining crude oil exports from the region. At the country level, the report noted that profit growth was mainly driven by double-digit year-on-year growth rates for listed companies in Kuwait, Saudi Arabia, Abu Dhabi, and Oman, alongside a 4.9% profit increase for companies listed on the Dubai Financial Market. Conversely, listed companies in Qatar and Bahrain recorded quarterly profit declines of 20% and 0.4%, respectively.

Kuwaiti companies achieved the highest percentage growth rate, with their net profits nearly doubling to reach $3.1 billion in the second quarter of 2026. Kuwaiti banks also posted stable profits, contributing to overall growth. By sector, most sectors recorded year-on-year profit growth in the second quarter of 2026, including several major weight sectors such as energy, food production, real estate, basic materials, and transportation. The banking and telecommunications sectors also saw profit growth ranging from low to mid-single digits during this quarter.

Furthermore, revenues of listed companies on Gulf stock markets showed strong improvement in the second quarter of 2026. Total revenues reached $381.6 billion, up from $326.3 billion in the second quarter of 2025, representing a 17% year-on-year increase.

Quarter-on-quarter growth was also strong at 8.1% compared to the first quarter of 2026. This rise was primarily driven by a 28.1% year-on-year increase in Saudi Aramco’s revenues. However, even excluding Saudi Aramco, revenue growth for other companies remained in the double digits, registering 11.4% across Gulf companies as a whole and 11.0% for companies listed on the Saudi market.

For the first half of 2026, net profits of listed companies on Gulf stock markets recorded a relatively lower annual growth of 23.1%, equivalent to $26.8 billion, bringing the total to $142.81 billion. This increase was driven by nearly 30% profit growth for listed companies in Abu Dhabi and Saudi Arabia, followed by Omani companies with 14.6% growth. Listed companies in Kuwait and Dubai also recorded high single-digit growth in net profits, while profits of listed companies in Qatar and Bahrain declined by 11.6% and 0.2%, respectively.

Profits of banks listed on Gulf markets reached a new record high in the second quarter of 2026, totaling $17.8 billion, supported by year-on-year profit increases in six of the seven markets in the region. Bahrain was the only market where the sector recorded a marginal year-on-year profit decline.

Conversely, Omani banks achieved the highest annual profit growth rate at 9.9%, while banks in the UAE, Saudi Arabia, and Kuwait recorded annual profit growth of approximately 8% during this quarter.

The rise in profits coincided with total bank revenues recording their highest growth rate over three consecutive quarters, increasing by 2.4% to reach $36.2 billion, supported by growth in non-interest income. Meanwhile, net interest income declined, and the sector experienced a slowdown in the pace of profit growth during this quarter, primarily influenced by conditions in the Middle East region. However, the strength of projects in the pipeline continued to support overall growth.

The report covered the profits of companies listed on the Kuwait Stock Exchange, stating that the net profit of listed companies rose by 88.7% to reach $3.1 billion in the second quarter of 2026, compared to $1.7 billion in the second quarter of 2025. The banking and telecommunications sectors led the way in supporting profitability growth. At the same time, total revenues of companies listed in Kuwait increased by 13% year-on-year and by 9% quarter-on-quarter, reaching $18.8 billion in the second quarter of 2026.

Regarding profits for the first half of 2026, the net profit of companies listed on the Kuwait Stock Exchange rose by 7.4% year-on-year to reach $4.4 billion, compared to $4.1 billion in the first half of 2025. The profit growth was broad-based, led by the banking, telecommunications services, and transport sectors. Out of 18 sectors, 11 recorded year-on-year profit growth, while the remaining seven sectors saw declines. The diversified financials and capital goods sectors were among the worst-performing sectors during the first half of 2026.

In the banking sector, listed Kuwaiti banks recorded a net profit of $3 billion in the first half of 2026, an increase of 4.6% year-on-year compared to approximately $2.9 billion in the first half of 2025. On a quarterly basis, net profits rose by 7.6% year-on-year to reach $1.7 billion in the second quarter of 2026, compared to $1.6 billion in the second quarter of 2025. On the other hand, the telecommunications sector outperformed other sectors in terms of contribution to net profit growth during this period, recording a net profit of $489 million in the second quarter of 2026, compared to $345.8 million in the second quarter of 2025, achieving growth of 42.7%.