"KIPCO Invest": Kuwait's fastest-growing companies, with profits doubling to $3.1 billion

- Kuwait Stock Exchange-listed companies’ profits grew by 7.4% to $4.4 billion in the first half

- Saudi companies’ profits rose by 29% to $89.7 billion

- Abu Dhabi-listed companies’ net profit increased by 29.8% to $25.2 billion

- Dubai-listed companies’ profits grew by 8.5% to $13.7 billion

- Omani companies’ net profit rose by 14.6% to $2.3 billion

A report by KAFU Investment noted that companies listed on Gulf stock markets continued to achieve year-on-year growth in net profit for the second consecutive quarter, reaching a new record high in the second quarter of 2026.

Total net profits reached $74.8 billion during this quarter, marking a 31.3% year-on-year increase, with a quarterly growth rate of 10%. The strong rise was primarily driven by higher average crude oil prices amid regional geopolitical developments, which helped offset the impact of declining crude oil exports from the region. More than a third of energy sector companies in the region recorded growth in their total profits in the second quarter of 2026.

The report indicated that profit growth was mainly driven by double-digit year-on-year growth rates achieved by listed companies in Kuwait, Saudi Arabia, Abu Dhabi, and Oman, alongside a 4.9% rise in profits for companies listed on the Dubai Financial Market.

It noted that Kuwaiti companies recorded the highest growth rate in percentage terms, with their net profits nearly doubling to reach $3.1 billion in the second quarter. Kuwaiti banks also posted stable profits, contributing to overall growth.

Regarding the first half of 2026, Gulf-listed companies’ net profit saw a relatively lower annual growth of 23.1%, equivalent to $26.8 billion, bringing the total to $142.81 billion. The increase was driven by nearly 30% growth in net profits for companies listed in Abu Dhabi and Saudi Arabia, followed by Omani companies at 14.6%. Kuwaiti and Dubai-listed companies also recorded high single-digit growth in net profits.

The report highlighted that net profits of companies listed on the Kuwait Stock Exchange surged by 88.7% to reach $3.1 billion in the second quarter, compared to $1.7 billion in 2025. The banking and telecommunications sectors led the growth in profitability.

On the other hand, the transportation sector turned profitable during this quarter after recording losses in the second quarter of 2025.

Total company revenues rose by 13% year-on-year and 9% quarter-on-quarter, reaching $18.8 billion in the second quarter.

Regarding first-half profits, Kuwait Stock Exchange-listed companies’ net profit grew by 7.4% year-on-year to reach $4.4 billion, compared to $4.1 billion in 2025. The broad-based profit growth was led by the banking, telecommunications services, and transportation sectors. Out of 18 sectors, 11 recorded year-on-year profit growth. The diversified financials and capital goods sectors were among the worst performers.

The report noted that listed banks recorded a net profit of $3 billion in the first half, up 4.6% year-on-year from $2.9 billion in 2025. On a quarterly basis, net profits rose by 7.6% to reach $1.7 billion in the second quarter, compared to $1.6 billion in 2025.

Meanwhile, the telecommunications sector outperformed in terms of contribution to net profit growth during this period, recording a net profit of $489 million in the second quarter, compared to $345.8 million in 2025, achieving a 42.7% increase.

The report recorded a 36.7 percent increase in the net profit of Saudi-listed companies, reaching SAR 45.3 billion in the second quarter, compared to SAR 33.2 billion in 2025. Profit growth was primarily driven by the performance of the energy, banking, and basic materials sectors, which collectively accounted for 92 percent of total profits during the second quarter. Conversely, the utilities, media and entertainment, and food retail sectors recorded a decline in profitability. For the first half of the year, net profits rose by 29 percent to reach SAR 89.7 billion, compared to SAR 69.5 billion in 2025.

The report also noted a 41.8 percent year-on-year increase in the net profit of companies listed on the Abu Dhabi Securities Exchange during the second quarter of 2026, reaching $14.7 billion, compared to $10.3 billion in 2025. Net profit also rose by 29.8 percent year-on-year during the first half, reaching $25.2 billion, compared to $19.4 billion in 2025.

The report indicated that net profit for companies listed on the Dubai Financial Market grew by 4.9 percent year-on-year, reaching $6.9 billion in the second quarter of 2026, compared to $6.5 billion in 2025. During the first half, net profit rose by 8.5 percent year-on-year to reach $13.7 billion, compared to $12.6 billion in 2025. Total revenues for companies listed in Dubai increased by 14.1 percent year-on-year and by 4.6 percent quarter-on-quarter, reaching $28.7 billion in the second quarter.

Net profit for companies listed on the Qatar Stock Exchange declined by 20 percent year-on-year, reaching $2.9 billion in the second quarter of 2026, compared to $3.6 billion in 2025. Notably, 12 out of 15 sectors listed on the Qatar Stock Exchange recorded year-on-year profit growth in the second quarter, while the remaining three sectors saw a decline. During the first half, net profit also fell by 11.6 percent year-on-year to reach $6.4 billion, compared to $7.2 billion in 2025.

Net profit for companies listed on the Muscat Securities Market rose by 24.2 percent year-on-year to reach $1.4 billion, compared to $1.1 billion in the same period in 2025. Net profit also increased by 14.6 percent year-on-year to reach $2.3 billion, compared to $2 billion in 2025.

Profit growth was concentrated in the energy, banking, and basic materials sectors, despite eight out of the 14 sectors listed on the market recording year-on-year profit growth.