DOHA: Qatar Exchange’s (QE) earnings remained relatively flat in 2012, falling 0.3 percent year-on-year. The real estate sector earnings declined 56 percent and consumer goods sector dropped 9.7 percent offsetting gains posted by heavyweights banks & financial services and industrials sectors. Consumer goods and real estate sector were the only losing sectors in 2012.
The Global Investment House’s “GCC Earnings-2012” released yesterday noted Qatar’s banks and financial services sector continued its strong performance, growing 6.6 percent YoY in 2012. Loan books of banks surged with increasing demand from public sector companies as well as from real estate and construction companies in the private sector. Growth in the sector was led by heavyweights Qatar National Bank, up 10.5 percent and Commercial Bank of Qatar, up 6.7 percent. The sector’s growth was largely unscathed by Qatar Islamic Bank, down 9.2 percent and National Leasing Holding Co, down 11.8 percent.
Industrial sector, representing 32.1 percent of the QE’s earnings rose 10.1 percent to $3.3bn supported by government spending. Industries Qatar (IQ) and Qatar Electricity & Water Co constituting 81.5 percent of the sector’s earnings grew 6.4 percent and 10.5 percent, respectively.
The performance of the real estate sector was dragged by de-growth in earnings of the industry leasers Barwa Real estate Co, down 6.6 percent and United development Company (UDC), down 80.5 percent.
The combined corporate earnings of the GCC continued to rise in 2012, albeit at a slower pace when compared to 2011. Overall corporate earnings grew 4.5 percent YoY to $55.4bn in 2012, after posting stronger growth in 2011.
Saudi Arabia remained the biggest contributor to overall GCC earnings, constituting 46.0 percent in 2012, followed by UAE and Qatar contributing 21.2 percent and 18.7 percent respectively.
Qatar and Bahrain were the only countries to witness a decline in earnings in 2012. Bahrain was the worst performer in the GCC region, declining 34.6 percent YoY in 2012 owing to deterioration across majority sectors. On the other hand, Qatar saw a marginal decline of 0.3 percent YoY led by decline in real estate sector earnings.
UAE continued to lead the race in 2012, rising 28.8 percent. UAE’s real estate sector recovered in 2012, which boosted the earnings during the year. Meanwhile, the Banking sector continued to grow despite tighter regulatory environment.
Saudi Arabia’s earnings growth remained flat in 2012 after recording a robust growth in 2011, despite huge government driven large expenditure witnessed during the year. Oman’s earnings rose by 14.3 percent as a result of buoyant performance across major sectors.
The Peninsula
