(MENAFN - Khaleej Times) Drives region?s corporate earnings 12.
the uae is the best-performing market in the gcc. — kt file photo
propelled by record-high earnings growth by dubai companies the uae continued to outperform other countries in the gcc and drove the region’s corporate earnings to 16.8 billion up 12.1 per cent year-on-year in the first quarter 2014.
as the uae outpaced other nations in the region by contributing 5.9 per cent to the overall regional growth dubai posted an astounding earnings growth of 45.6 per cent in the first quarter compared to the same period in 2013 according to global investment house’s gcc earnings monitor.
while uae corporates recorded a combined 26.5 per cent year-on-year growth critically contributing to the region’s incremental rise in earnings kuwait registered a first-quarter earnings growth of 14.6 per cent to come second.
saudi arabia recorded a 11.1 per cent surge in earnings followed by qatar with 8.9 per cent. however bahrain witnessed a 25.4 per cent year-on-year fall in the fist quarter while oman’s slid 4.6 per cent.
“the uae the best-performing market in the gcc has witnessed solid recovery on improvement in the banking and real estate sectors driven by strong investor optimism. growth in earnings in the uae was driven by dubai which continued to outperform the rest.”
abu dhabi posted a first-quarter gain of 17.8 per cent o 2.7 billion in the first quarter driven by an 11.4 per cent growth in the banking sector’s earnings (57.8 per cent of consolidated earnings). dubai’s corporate earnings surged 45.6 per cent to 1.5 billion in the quarter led by banks (42.6 per cent growth) real estate and construction (77.8 per cent) and investment and financial services (103.7 per cent).
according to the global earnings monitor the first-quarter growth in the banking sector was driven by dubai islamic bank or dib (111 per cent) emirates nbd (24.5 per cent) and mashreq (35.2 per cent). dib reported solid earnings growth owing to a robust increase in loans with better margins higher fee income and a decline in impairment loss while higher earnings of emirates nbd can be ascribed to higher non-interest income and lower operating expenses. growth in mashreq’s net profit (accounting for 21.3 per cent of the sector’s total earnings) was driven by a 23.6 per cent surge in total operating income due to higher net interest income (41 per cent) and increased net fee and commission income.
earnings of dubai’s real estate and construction sector rose 77.8 per cent to 300 million in the quarter driven by robust growth in the profit of emaar properties (55.2 per cent) union properties (720.6 per cent) and arabtec holding (120.8 per cent) as a result of continued overall recovery in the sector.
emaar properties’ growth (accounting for 67.8 per cent of the sector’s total earnings) was supported by a 15 per cent rise in recurring revenues to dh1.35 billion (about 60 per cent of total revenue) lower cost of sales and net finance income of dh67.5 million vis-a-vis net finance cost of dh55.5 million in the same quarter in 2013.
growth in union properties’ earnings was ascribed to profit from the sale of investment properties and a gain of dh100 million following the settlement of liabilities with contractors. arabtec holding’s net profit increased due to a 39.3 per cent rise in revenues coupled with an expansion in gross margin to 15.3 per cent from 12.3 per cent in the first quarter of 2013.
dubai’s investment and financial services sector earnings surge was driven by dubai financial market which posted a sharp 696.7 per cent jump in profit to dh215.1 million led by a 289 per cent surge in revenues as trading volumes rose 428.8 per cent. the sector also benefitted from dubai investment co (25.6 per cent) owing to higher profit on fair value of its investments and gain from the sale of properties global investment house said in its report.
abu dhabi’s banking sector growth was ascribed to first gulf bank (up 27.2 per cent) followed by abu dhabi commercial bank (14.9 per cent) and abu dhabi islamic bank (20.4 per cent).
the capital’s real estate industry recorded an 80.8 per cent growth accounting for 5.5 per cent of consolidated first-quarter earnings. the sector was driven by aldar properties which posted a 193.9 per cent increase due to continued unit handovers and better recurring revenues from its merged hospitality and investment property portfolio. excluding aldar properties the sector’s earnings fell 40.8 per cent global investment house said.
telecommunications also contributed significantly during the quarter with earnings rising 10.9 per cent. the growth was led by etisalat driven by a higher share of profits from associates.