Oman’s MSX leads GCC in quarterly earnings
Published: 04:04 PM,Apr 16,2025 | EDITED : 08:04 PM,Apr 16,2025
Publicly listed companies on the Muscat Stock Exchange recorded the strongest quarterly growth among GCC peers.
MUSCAT: A recent report by Kamco Invest on corporate earnings across GCC stock markets for the fourth quarter of 2024 revealed mixed performance across the region, with Oman emerging as the top performer in quarterly earnings growth, even as the broader GCC saw a downturn due to weak results in the energy and utilities sectors.
Publicly listed companies on the Muscat Stock Exchange recorded the strongest quarterly growth among GCC peers, with net earnings surging by 83.4 per cent in Q4 2024 compared with the same quarter a year earlier. This exceptional rebound was primarily driven by the banking sector, which posted a 29 per cent increase in profits, along with a more than fourfold rise in energy sector earnings for the quarter, despite the sector’s annual decline.
Key contributors included Bank Muscat, which reported a 6.2 per cent increase in annual net profit, supported by stronger net interest income and growth in Islamic financing.
GCC-wide profitability declines
At the regional level, aggregate net profits of listed companies in the GCC fell by five per cent quarter-on-quarter to $57.3 billion—the lowest level in three consecutive quarters. The energy sector was the main contributor to the decline, with net earnings dropping 16.6 per cent, impacted by lower oil export volumes, weaker prices, and narrower refining margins. This was notably evident in the performance of Saudi Aramco and OQ Exploration and Production in Oman.
The utilities sector also dragged down regional performance, posting a net loss of $1.3 billion, largely due to the significant losses reported by the Saudi Electricity Company.
On the positive side, the telecommunications and banking sectors helped cushion the overall impact. The telecom sector saw a 51.7 per cent increase in annual profits, driven by extraordinary gains by STC (Saudi Telecom Company), while the banking sector recorded a 10.3 per cent growth in net earnings, with total GCC banking profits reaching $60.1 billion.
Comparative performance across Gulf markets
• Oman: Despite a 13.7 per cent annual decline in full-year earnings, Oman posted the highest quarterly growth in the region at 83.4 per cent, driven by robust performance in banking and energy.
• Saudi Arabia: Full-year corporate profits dropped 3.2 per cent, although gains in banking and telecommunications helped mitigate losses in energy.
• United Arab Emirates: Performance was mixed; Abu Dhabi saw a 7.1 per cent decline in earnings, while Dubai reported a 16 per cent increase, led by banking and real estate sectors.
• Qatar: Companies achieved 8.5 per cent growth in full-year earnings, largely driven by banks and energy firms.
• Kuwait: Posted 7.1 per cent growth, supported by strong contributions from the banking and industrial sectors.
• Bahrain: Reported a 12.5 per cent decline in overall profits, due to weaker banking performance, despite strong results in the materials sector, particularly from Aluminium Bahrain (Alba).
The earnings outlook for 2025 is cautiously optimistic. Continued pressure in energy and utilities could challenge short-term performance, yet economic diversification, digital transformation, and renewable energy investment present significant growth opportunities. Oman, in particular, is well positioned to capitalise on its structural reforms and rising investor confidence—cementing its role as a competitive and resilient economy in the Gulf.
Publicly listed companies on the Muscat Stock Exchange recorded the strongest quarterly growth among GCC peers, with net earnings surging by 83.4 per cent in Q4 2024 compared with the same quarter a year earlier. This exceptional rebound was primarily driven by the banking sector, which posted a 29 per cent increase in profits, along with a more than fourfold rise in energy sector earnings for the quarter, despite the sector’s annual decline.
Key contributors included Bank Muscat, which reported a 6.2 per cent increase in annual net profit, supported by stronger net interest income and growth in Islamic financing.
GCC-wide profitability declines
At the regional level, aggregate net profits of listed companies in the GCC fell by five per cent quarter-on-quarter to $57.3 billion—the lowest level in three consecutive quarters. The energy sector was the main contributor to the decline, with net earnings dropping 16.6 per cent, impacted by lower oil export volumes, weaker prices, and narrower refining margins. This was notably evident in the performance of Saudi Aramco and OQ Exploration and Production in Oman.
The utilities sector also dragged down regional performance, posting a net loss of $1.3 billion, largely due to the significant losses reported by the Saudi Electricity Company.
On the positive side, the telecommunications and banking sectors helped cushion the overall impact. The telecom sector saw a 51.7 per cent increase in annual profits, driven by extraordinary gains by STC (Saudi Telecom Company), while the banking sector recorded a 10.3 per cent growth in net earnings, with total GCC banking profits reaching $60.1 billion.
Comparative performance across Gulf markets
• Oman: Despite a 13.7 per cent annual decline in full-year earnings, Oman posted the highest quarterly growth in the region at 83.4 per cent, driven by robust performance in banking and energy.
• Saudi Arabia: Full-year corporate profits dropped 3.2 per cent, although gains in banking and telecommunications helped mitigate losses in energy.
• United Arab Emirates: Performance was mixed; Abu Dhabi saw a 7.1 per cent decline in earnings, while Dubai reported a 16 per cent increase, led by banking and real estate sectors.
• Qatar: Companies achieved 8.5 per cent growth in full-year earnings, largely driven by banks and energy firms.
• Kuwait: Posted 7.1 per cent growth, supported by strong contributions from the banking and industrial sectors.
• Bahrain: Reported a 12.5 per cent decline in overall profits, due to weaker banking performance, despite strong results in the materials sector, particularly from Aluminium Bahrain (Alba).
The earnings outlook for 2025 is cautiously optimistic. Continued pressure in energy and utilities could challenge short-term performance, yet economic diversification, digital transformation, and renewable energy investment present significant growth opportunities. Oman, in particular, is well positioned to capitalise on its structural reforms and rising investor confidence—cementing its role as a competitive and resilient economy in the Gulf.