Mashreq, Ghtiha report solid earnings, while war weighs on NMDC and Borouge

Mashreq pushes ahead as fees and lending pick up

Our friends at Mashreq delivered a solid 1Q 2026, with strong balance sheet expansion and fee-driven growth lifting net income after tax 7.5% y-o-y to AED 1.9 bn, while pre-tax earnings rose 9% to AED 2.3 bn, according to its financials (pdf) and management discussion and analysis report (pdf). Operating income climbed 10% to AED 3.4 bn, supported by growth across lending and transaction banking.

Diversification doing the heavy lifting: Non-interest income rose 20% y-o-y to AED 1.4 bn, accounting for 41% of total income, as fees, FX, and cross-border activity picked up. CEO Ahmed Abdelaal flagged stronger client engagement across trade finance and payments as a key driver.

Volumes offset margin pressure: Net interest income grew 4% as rate cuts weighed on margins. That was largely offset by a 33% jump in customer loans and a solid CASA ratio of 63%, keeping funding costs in check.

Efficiency and balance sheet strength intact despite investment push: Operating expenses rose 15% to AED 1.1 bn on higher spend across AI, digital infrastructure, and international expansion, but the cost-to-income ratio held at 31%, pointing to continued cost discipline.

Management also pointed to “uninterrupted operations across all channels” despite regional tensions, with Chairman Abdul Aziz Al Ghurair saying the quarter “reaffirmed the structural resilience of the UAE and the wider GCC economies.”

Ghitha grows as food demand holds, integration deepens

Ghitha Holding is riding resilient demand across essential food segments and a more integrated platform to drive growth, with revenue rising 23% y-o-y to AED 1.6 bn in 1Q 2026, according to its earnings release (pdf). The agriculture and food platform’s gross income rose 8% y-o-y to AED 330.8 mn.

Integration + expansion driving the top line: Growth was supported by organic momentum and ongoing integration. Ghitha deepened its vertical play with the acquisition of fresh produce player Taaza under NRTC, strengthening farm-to-market capabilities. That comes as its Invictus unit expands in Africa, with a Mauritius subsidiary signing to acquire a majority stake in a North African agro-food manufacturer to bolster its trading footprint.

While Ghitha flagged sustained demand and no direct disruption, policymakers have stepped up their focus on food security, and Ghitha is one of the key local players with a role there. The government rolled out a AED 1 bn national fund targeting essential food, while a Sustainable Product Initiative aims to lift local sourcing in hospitality to 25%.

REMEMBER- Ghitha has also moved to mitigate disruption during the quarter, ramping up imports across land, air, and sea. Its NRTC unit brought in over 4.7k tons of fresh produce in a week, with another 17k tons on the way.

Borouge’s 1Q hit by regional disruption and weaker pricing, but March rebound offers some relief

Petrochemicals player Borouge saw its bottom line take a hit in 1Q as logistics disruptions and weaker pricing earlier in the quarter weighed on performance, with net income falling 45% y-o-y to USD 156 mn, according to its management discussion and analysis report (pdf) and earnings release (pdf). Revenue dropped 17% to USD 1.2 bn.

Volumes and pricing under pressure: Sales volumes fell 13% y-o-y to 1.1 mn tons, hit by shipment disruptions following the closure of the Strait of Hormuz, while blended selling prices slipped 6% amid weaker benchmarks earlier in the quarter. Production, however, held steady at around 98% utilization, with the firm managing to reroute around 61% of production through alternative logistics channels.

REMEMBER-Operations at Borouge were briefly affected when debris-triggered fires forced a temporary suspension at its Al Ruwais plant. This occurred just weeks after the formation of Borouge Group International — a USD 60 bn platform combining Borouge, Borealis, and Nova Chemicals — putting the newly merged group’s resilience to an early test.

A March turnaround in prices helped cushion the blow: Prices surged by about 62% toward the end of the quarter as global supply tightened.

Looking ahead, a rebound is taking shape: Unsold volumes were placed into storage and are expected to ship in 2Q, setting the stage for a rebound as stronger pricing helps offset higher freight and logistics costs. “With global prices showing encouraging signs of recovery and as market conditions improve, we are well positioned to translate this opportunity into earnings,” CEO Hazeem Sultan Al Suwaidi said.

In the longer term, growth will be supported by the ramp-up of Borouge 4 — with initial production underway and around USD 400 mn in cumulative net income expected over three years — alongside a newly signed 50:50 China JV to develop a cracker and polyethylene complex, expanding its footprint in a key demand market.

As for dividends: Borouge is keeping payouts intact, with its 2H 2025 dividend of USD 658 mn due around 5 May. The company also reiterated plans to maintain a minimum dividend of 16.2 fils per share through at least 2030.

NMDC’s margins take the hit as costs bite

NMDC Group’s net income was squeezed by higher logistics, ins., and fuel costs related to regional disruptions, falling 51% y-o-y to AED 387 mn in 1Q 2026, according to its earnings release (pdf). Meanwhile, its revenues rose 7% y-o-y to AED 6.6 bn on steady backlog conversion.

The group’s dredging and marine unit generated 79% of its net income, while the remaining 21% came from its energy segment. For revenues, the energy segment drove 75% of the total but reported slimmer margins.

Pipeline stays heavy: The backlog stands at AED 55.4 bn, with some AED 1.8 bn in new awards during the quarter.