- Companies listed on the Dubai Financial Market (DFM) reported a nearly 30% rise in net profits during the second quarter of 2023 compared to the previous year. Total net earnings for Dubai-listed firms reached $5 billion in Q2 2023, marking a 28.6% increase from the same period a year ago. Notably, Emirates NBD led in earnings, recording about AED 6 billion in net profits, followed by DEWA with AED 1.93 billion, Mashreqbank with AED 1.9 billion, Emaar Properties with AED 1.74 billion, and Dubai Islamic Bank with AED 1.5 billion.
- This growth was primarily driven by Dubai-listed banks, transportation, and telecom companies, accounting for 65% of the total profits in the exchange during the quarter. In contrast, Abu Dhabi-listed companies experienced a 3.4% decline in net profits, reaching $8 billion in the same period. Sectors such as banking, telecommunication services, food, beverage, and tobacco in the UAE capital saw increased net profits. However, energy, capital goods, materials, and retailing categories witnessed declines, contributing to the overall decrease in total profits on the Abu Dhabi Securities Exchange (ADX).
Why it matters
The significant increase in net profits for Dubai-listed companies in the second quarter of 2023 highlights the robust performance of various sectors, particularly banks, transportation, and telecom, contributing to a substantial growth of 28.6% in net earnings compared to the previous year. On the other hand, the decline in net profits for Abu Dhabi-listed companies suggests a mixed economic performance across sectors, with contrasting trends in net earnings within different industries contributing to the overall drop in total profits on the Abu Dhabi Securities Exchange.