02/09/2014
Recorded 33 billion dollars
GCC corporate earnings grow 11% in first half
Economic report said yesterday that overall profit for the companies in the GCC region has grown during the first half of this year to reach 33 billion dollars, up 11 percent from the same period of the previous year as a result of the strong performance of all sectors. He said the report issued by Kuwait financial center (the Centre) the total net profits of financial services amounted to $ 1.2 billion in the first half of the year 2014 up 35 percent compared with the same period of the previous year. The profits of big business groups totaled billion dollars registered a growth of 29 percent compared to the same period of the previous year, while the profits of the real estate sector, 1.8 billion dollars, up by 8 per cent on the first half of 2013. The report showed that the Kuwaiti News Agency, that the banking sector is characterized by the highest profits compared to other sectors, growing 6% compared to the same period of the previous year to 13.3 billion dollars.
The report shows that corporate profits of the Gulf in the first half of the year 2014 rose by 11 per cent compared with the first half of 2013 and has grown at a rate of 12 per cent compared with the previous year. The report noted that Saudi Arabia had achieved the greatest growth in profit compared with other markets by as much as 20 per cent in the first half of the year 2014 while Bahrain has most declined by 23 per cent during the first half of 2014, while corporate profits remained without any change. The report said that the financial services sector has achieved the largest percentage growth in profit in the first half of the year 2014, with 35 per cent compared with the same period of the previous year, and was replaced by major corporate groups in second place followed by the telecommunications sector and the real estate sector by 29-25 and 8 per cent respectively.
The report noted that the performance of the financial services sector, promote improved economic Outlook and increase in value of asset classes, including stocks, real estate and construction sectors, profits and goods down 1 and 4 per cent respectively in the first half of 2014 compared to the same period of the previous year, which is linked to the goods sector in the GCC is closely related to global growth and affected profits in this sector as a result of low demand in the global market. Stressing that the impact on the growth of profits of Saudi basic industries Corporation (SABIC), which is a measure of performance in the region, where very much on what it has achieved a growth rate of 2 per cent compared with the previous half year. The report predicted the annual growth in profits by 10 percent in 2014, adding that local developments in the GCC countries play a vital role in regional stock markets.
Also expect that profit growth will be strengthened as a result of the implementation of structural reforms in Saudi Arabia and fundamental changes in the corporate law that provide a favorable environment for business in Kuwait and the implementation of infrastructure projects in the framework of the preparations for hosting the Expo show (2020) in the UAE and the World Cup (2022) in Qatar. The report predicted that the strong profit growth in the UAE 15.5 per cent for the full year 2014 year 2013 along with his expectations for growth in corporate profits in Saudi Arabia grew by 10.8 per cent. He noted that the projected growth in corporate profits in both Kuwait and Qatar and Oman by 5.9 and 6.1 and 6.2 per cent respectively during the same period to see corporate profits at Bahrain developed a slight 1.9 percent.
