Abu Dhabi outpaces Dubai in 2Q earnings: Abu Dhabi-listed companies posted an 18.3% y-o-y rise in net income to USD 10.3 bn in 2Q 2025, while Dubai-listed firms saw profitability fall 5.7% y-o-y to USD 6.5 bn, according to Kamco Invest’s latest GCC Corporate Earnings report (pdf). This makes Abu Dhabi the region’s best performer during the quarter in absolute terms.

Abu Dhabi’s earnings expansion was underpinned by a strong performance from the banking sector, which saw its profitability rise 23.1% y-o-y to USD 3.2 bn. Within the sector, FAB led with earnings of USD 1.5 bn (+29.3%), boosted by higher non-interest income and lower impairments. ADCB added USD 699 mn (+11%), while Adib rose 12% to USD 457 mn.

Non-financials also contributed to Abu Dhabi’s gains. The F&B sector surged 65.8% to USD 1.1 bn, powered almost entirely by IHC, which booked a 55.3% bottom line increase. Energy earnings were broadly flat, rising just 1.9% y-o-y to USD 2.3 bn, but bottom line growth at Adnoc Gas and Adnoc Drilling) offset a 32.7% decline at Taqa. Real estate and telecoms also added modest gains.

The contraction in Dubai came mainly from the banking and capital goods sectors, which made up 50.7% of total earnings. The banking sector’s bottom line fell 6.4% y-o-y to USD 3.2 bn. Emirates NBD weighed on the index, reporting a 9% decline in 1H net income to USD 3.4 bn, driven by higher impairments and non-interest expenses. By contrast, Commercial Bank of Dubai delivered a 15% jump in 2Q net income to USD 236 mn, underpinned by resilient loan growth and balance-sheet expansion.

Non-financials provided some relief, with Dubai’s real estate sector surging 40.8% y-o-y to USD 1.6 bn, on the back of gains from Emaar Properties and Tecom Group. Utilities were another bright spot, with aggregate earnings reaching USD 727.8 mn — up 19.4% y-o-y. Dewa ’s bottomline rose 21.4% to USD 615 mn, while Empower and Tabreed also reported growth.

1H snapshot: Dubai-listed firms saw net income edge up 2.4% y-o-y to USD 12.6 bn, supported by real estate and utilities despite weaker banking. Abu Dhabi posted 3.4% growth to USD 19.3 bn during the period, underpinned by banks and Adnoc Gas.

THE REGIONAL PICTURE-

GCC earnings under pressure: Aggregate net income for GCC-listed firms fell 8.7% y-o-y to USD 56.7 bn in 2Q 2025. Softer oil and petrochemical prices were the main drag, with lower Brent crude prices resulting in energy earnings falling 18% y-o-y to USD 25.5 bn. 1H 2025 earnings across the GCC slipped a milder 3.4% y-o-y to USD 115.4 bn.

The main offset came from banking, where net income hit a record USD 16.6 bn, up 10.3% y-o-y. Gains were broad-based across six of seven exchanges, lifted by higher net interest (+6.9%) and non-interest income (+25%), which outweighed a 42% rise in impairments.

Saudi drives the drop: Saudi Arabia alone accounted for the bulk of regional contraction, with listed company earnings’ falling to USD 33 bn — down from USD 39.4 bn the year before. Energy was the main culprit, with Aramco’s bottom line fell 19%, though banking (+18%) and telecoms (+18%) posted double-digit growth.

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