DOHA: The financial landscape of Qatar showcased significant growth in the second quarter of 2024, with total earnings for listed companies reaching an impressive $3.35 billion, marking a year−on−year increase of 5.6 per cent compared to $3.17 billion a year ago.
The upward trend in earnings can largely be attributed to robust performance in key sectors such as banking, insurance, and capital goods, reflecting a resilient and progressive economy.
Examining the first half of 2024, net profits for Qatari companies surged by 5.9 per cent, amounting to $6.9 billion, compared to $6.6 billion during the same period in the previous year.
The broad-based growth across multiple sectors illustrates the underlying strength of the Qatari economy, which has been bolstered by a diverse industrial landscape. Among the fifteen sectors listed on the Qatar Exchange, ten witnessed an increase in profits, demonstrating a general trend of economic vitality, while five sectors experienced declines.
The information, as reported by Kamco Invest in their GCC Corporate Earnings report for second quarter of 2024, indicates a healthy distribution of profit growth across a range of industries.
Sectoral growth
The banking sector stands out as a critical contributor to this upward trajectory, showcasing a profit growth of 5.2 per cent in the second quarter of 2024 with overall earnings totaling $1.9 billion.
Notably, Qatar National Bank (QNB) experienced an 8.6 per cent increase in profit to $1.9 billion, attributable to higher operating income and a notable 10 per cent growth in net interest income.
This highlights the important role that the banking sector plays not only in the Qatari economy but also in the overall profitability of the exchange.
Furthermore, the telecommunications sector also demonstrated positive earnings performance, with Ooredoo reporting a net profit of$ 262.9 million during the quarter, reflecting a substantial 14.9 per cent increase to $262.9million in the second quarter, attributed to the steady growth in fixed broadband services and various managed services, including Internet of Things (IoT) solutions.
The growth in service revenue underscores the vital role of technology and connectivity in driving contemporary economic growth.
Additionally, the energy sector reported a commendable profit increase of 7.4 per cent, reaching $231.3 million, aided largely by stronger earnings from Qatar Gas Transport Co. (Nakilat), which posted an 8 per cent rise in profits. This increase further illustrates the positive impact of operational efficiencies and improved topline growth in enhancing overall profitability within this sector.
