Corporate earnings across the Gulf rose to a 12-quarter high in the third quarter, lifted by strong banking and real estate results that offset weaker performance in telecom and utilities, according to Kamco Invest.

Aggregate net income for listed GCC companies grew 7.9% year-on-year to $65.6 billion, with quarterly profits up 15.7% — one of the strongest sequential increases since 2022.

The annual rise was driven mainly by higher banking and real estate earnings, supported by a mild rebound in the energy sector. The UAE recorded the biggest jump in total profits, followed by Kuwait and Saudi Arabia. Saudi-listed firms posted a five-quarter high of $38.2 billion, while Dubai-listed companies reported one of their strongest quarters on record at $8.1 billion.

Banking led sector performance, with GCC-listed banks achieving a record $17.4 billion in profits, supported by growth in both interest and non-interest income. UAE banks saw profits climb 25.1%, while Saudi banks recorded a 15.2% rise.

Real estate earnings also surged, rising nearly two-thirds year-on-year. UAE developers posted the biggest gains, with profits up 43.1% to $2.67 billion. Dubai accounted for almost two-thirds of regional real estate profits at $2.3 billion.

The energy sector recorded a marginal 0.5% increase to $28.9 billion despite a 13.7% decline in average crude prices. Companies such as Abu Dhabi National Energy Co. benefitted from lower operating costs.

Elsewhere, Qatar’s earnings were broadly stable, Oman posted modest growth driven by banking and utilities, and Bahrain saw a slight improvement supported by financial services.

For the nine-month period, Abu Dhabi and Dubai-listed firms posted gains of 5.6% and 2.7% respectively, while Saudi-listed companies saw profits fall 5.3% to $107.5 billion due to weaker performance in energy, materials and insurance, partially offset by stronger banking and real estate results.