Real Estate, Transport Sectors Drive Dubai Corporates' Q1 Profit Surge

Dubai-listed companies kicked off 2025 with a solid earnings season, reporting a 6.3 per cent year-on-year rise in net profits during the first quarter. Total net earnings reached $6 billion, up from $5.7 billion in Q1 2024, as multiple sectors posted improved results despite headwinds in banking and consumer-facing industries.

According to Kamco Invest's GCC Corporate Earnings Report for Q1 2025, the rise in profits was powered by strong performance in the transportation, real estate, telecoms, and insurance sectors. These gains helped offset declines in the banking, utilities, consumer services, and food and beverage sectors.

Junaid Ansari, head of Investment Strategy & Research at Kamco Invest, said the earnings growth was notably concentrated, with the banking, real estate, and transportation sectors together accounting for 84.3 per cent of total net earnings in Dubai during the quarter.

Zooming out to the broader Gulf region, net profits of companies listed on GCC stock exchanges increased by 2.0 per cent year-on-year to $58.6 billion. Gains were led by the banking, telecom, and real estate sectors, while profits declined across energy, materials, and F&B companies.

In Dubai, banks remained the biggest contributors to corporate earnings despite a modest 2.4 per cent year-on-year decline in profits, which totalled $3.2 billion in Q1 2025. Emirates NBD, the largest listed bank, posted a 7.3 per cent drop in profits to $1.7 billion due to higher impairments, even as both interest and non-interest income rose. Nevertheless, the bank's balance sheet broke through the Dh1 trillion mark, driven by solid growth in loans and deposits.

Dubai Islamic Bank delivered better news, recording net profits of $473.7 million, up from $433.7 million last year. The gains were due to higher income and a reduction in provisions.

The real estate sector delivered one of the most robust performances of the quarter. Net profits across the sector surged by nearly 30 per cent to reach $1.7 billion. Emaar Properties led the way, reporting a 27 per cent year-on-year rise in net earnings to $1.01 billion. The company's revenue rose by 50 per cent to Dh10.1 billion ($2.8 billion), while Ebitda increased 24 per cent to Dh5.4 billion ($1.5 billion), buoyed by strong demand, successful project launches, and continued investor confidence.

Emaar Development, a subsidiary focused on residential projects, reported an even stronger 48.3 per cent jump in net profits to $522.3 million. Meanwhile, business parks operator Tecom Group posted a 23.3 per cent profit increase to $98.3 million.

In transportation, net profits rose 18.4 per cent to $246.7 million. Toll operator Salik led the charge with a 33.6 per cent jump in net earnings to $100.9 million. The company's performance was driven by the implementation of variable toll pricing and the launch of two new toll gates, generating Dh158 million in chargeable trips during the quarter.

Abu Dhabi corporates also enjoyed a strong quarter. Companies listed on the capital's exchange recorded a 9.8 per cent year-on-year increase in net profits, reaching $9 billion. The banking and telecom sectors were the key drivers, contributing nearly $4.4 billion combined.

First Abu Dhabi Bank (FAB) was the standout performer in the banking sector, with net profits up 23.4 per cent year-on-year to $1.4 billion. FAB cited strong client activity and diversified income streams for the boost. Revenue rose 11 per cent to Dh8.81 billion. Abu Dhabi Commercial Bank also saw a healthy rise, with Q1 profits reaching $606.6 million, up from $517.1 million a year earlier.

Telecom major Emirates Telecommunication Corp (Etisalat by e&) reported an impressive $1.5 billion in net profits, more than doubling its Q1 2024 figure of $634.4 million. Revenues climbed nearly 19 per cent year-on-year to Dh16.9 billion, driven by growth in both telecom and digital verticals. Ebitda rose 15.4 per cent to Dh7.4 billion, maintaining a healthy 43.6 per cent margin.

The energy sector in Abu Dhabi also posted moderate growth, with total net earnings increasing 7.4 per cent to $2.3 billion. Adnoc Gas led with $1.3 billion in profits, a 6.9 per cent increase, supported by higher-margin exports and operational efficiencies. Adnoc Drilling followed with a 24.1 per cent year-on-year profit jump to $341 million.

Corporate sector experts said the Q1 results paint an optimistic picture for the UAE's corporate sector in 2025. Despite global macroeconomic pressures and sector-specific challenges, diversified revenue streams and strong fundamentals appear to be cushioning the region's companies, positioning them for further, they noted.

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