How did Kuwaiti companies withstand the fires of war?
- Walid Al-Sharhan to Al-Rai: Some impacts of the war will appear in the results of the third and fourth quarters
- Shopping activities within Kuwait have revitalized the retail sector
- Saleh Al-Salimi to Al-Rai: Results reflect the strength of the private sector, and company values have risen compared to pre-crisis levels
- Positive corporate performance will continue through the end of the year
Kuwaiti listed companies successfully navigated the repercussions of the war in the region, posting positive performance in the second quarter of 2026. Their net profits surged by 90% year-on-year, reaching KD 970 million in the second quarter, compared to KD 511.05 million in the same period of 2025. This also represented an increase of approximately 149.2% compared to the KD 389.6 million recorded in the first quarter.
Furthermore, 64 companies reported net profits by the end of the first half of the year. Among them, 50 increased their profit levels, while 14 either turned profitable or reduced their loss levels. Thus, 47.4% of the approximately 135 companies showed performance improvement.
This growth defied expectations, which had pointed to a decline in profits due to the outbreak of war and geopolitical disturbances that cast a shadow over the economy and business activity in the region. This raises questions about the reasons behind the resilience of companies during the crisis and their ability to move forward toward doubling profitability, despite an operational environment characterized by high risks, disrupted trade, and supply chain instability.
In this regard, leaders in the private sector believe that the growth in corporate profits in the second quarter was not the result of a single factor, but rather driven by a combination of factors. These include the efficiency of operational activities in several sectors during the crisis, the return of sales to normal levels after the initial drop, and the continued momentum of credit activity. Additionally, companies’ ability and strategies to manage costs and risks, coupled with investor confidence in corporate performance and their capacity to overcome the crisis, played key roles.
They emphasized that this positive performance reflects the private sector’s ability to confront challenges and contribute to supporting the national economy. They noted that there are specific reasons for each company, alongside general factors related to corporate performance and the operating environment.
Conversely, they pointed out that a portion of the war’s effects, particularly regarding supply chain disruptions and rising shipping costs, had not fully materialized in the second-quarter results. This may make its implications more evident in the results of the third and fourth quarters.
At the outset, Walid Al-Sharhan, CEO of Al-Mabani Company, stated that while the crisis was ongoing and operational issues persisted, companies managed to generate profits. Therefore, it is important to analyze the financial statements of listed companies to understand the reasons behind their good performance in the second quarter, despite difficult operational conditions and political disturbances in the region.
Al-Sharhan added that assessing corporate performance requires a careful reading of financial statements and verifying the nature of the profits achieved—whether they stem from actual operational activity or were influenced by other factors, such as changes in accounting policies, provisions, and depreciation. He stressed the necessity of conducting sound comparisons between financial results across different years.
Al-Sharhan noted that reasons may vary from one sector to another. The retail sector was initially affected by the crisis, particularly during the first two or three weeks, before sales rebounded. This recovery was driven by a decline in travel by citizens and residents, their stabilization in the country, and the growth of commercial activities in shopping malls and restaurants, amid improved shopping activity within Kuwait.
Al-Shara’an emphasized that the real estate sector continued to deliver normal performance amid the operational pressures witnessed in the second quarter, noting that the actual impacts of the crisis on the sector are expected to begin materializing in the coming quarters, particularly due to delays in completing several projects.
He clarified that real estate development companies were affected by delays in the completion and operation of certain projects, pointing out that some openings scheduled for the current period have been postponed to later dates, which will reflect on revenues and the results of the third and fourth quarters.
He added that one of the reasons for these delays is that the repercussions of the war and disruptions to navigation through the Strait of Hormuz caused delays in the arrival of certain materials, including construction materials and finishing supplies, due to disruptions in supply chains and shipping and transportation.
He predicted that project completion delays would range between three to six months, both in Kuwait and the region, and that the consequences of these delays would be reflected in financial results in the near future. He explained that postponing completion necessarily means deferring revenues, while companies continue to bear their obligations, including bank installments, which could lead to financial pressures during the third and fourth quarters.
Regarding stock market performance, Al-Shara’an expressed optimism about the market’s performance, affirming that it remains encouraging, and noted that many Kuwaiti stocks are trading at levels below their intrinsic value.
He added that the share prices of a large number of Kuwaiti companies do not reflect their actual value, but the overall outlook for the Kuwaiti market remains positive and encouraging.
For his part, Saleh Al-Salimi, Chairman of the Board of Directors of International Financial Consulting Holding Company “EVA,” stated that the positive performance of listed companies during the second quarter of this year, despite political circumstances and geopolitical events, reflects the private sector’s ability to confront challenges and contribute to supporting the national economy.
Al-Salimi added that the positive results achieved by companies require little explanation, as the figures clearly demonstrate them. He pointed out that the market capitalization of listed companies had risen compared to pre-crisis levels, confirming that Kuwaiti companies and the Kuwaiti market have demonstrated a strong capacity to handle crises and operational difficulties.
He clarified that these results also reflect investor confidence in the market and listed companies, alongside the redirection of local savings toward available investment opportunities in the market. He affirmed that companies succeeded in maintaining investor confidence despite exceptional circumstances.
He noted that the reasons for growth vary from one company to another according to the nature of its activity, strategy, and future plans, emphasizing that the positive performance was not limited to a specific sector but encompassed various sectors, including banks, investment companies, real estate firms, and others.
He explained that banks, for example, continue to achieve good growth rates despite their different operational nature, amid ongoing credit and economic activity. He affirmed that there are specific reasons for each company, in addition to general factors related to company performance and the operating environment.
Al-Salimi expressed optimism about companies’ performance during the remainder of the year, noting that continued skirmishes and geopolitical events, including the closure of the Strait of Hormuz, may impact certain prices and investor behavior, particularly individual investors, potentially prompting some to sell.
For his part, he affirmed that Kuwaiti companies continue to work toward achieving their goals, fostering growth, and enhancing their performance through the plans and strategies each company has developed in accordance with its specific business nature and strategic directions. He emphasized that current indicators reflect a solid depth in the market and the private sector, thereby supporting the development of the investment environment and strengthening investment opportunities in Kuwaiti companies.
He further stressed that this positive performance is not confined to a single sector but extends across various segments of the economy, underscoring the ability of Kuwaiti companies to sustain their operations and continue developing despite existing challenges.
