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29 March 2024

UAE-listed firms' profits plunge 26% to Dh31.4bn

The real estate firms listed on DFM saw their income plunge by around 72 per cent (FILE)

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By Staff

UAE companies listed on the two main bourses generally had a difficult year in 2009 as their combined net earnings plunged by more than 26 per cent, according to a key Kuwait investment bank.

Most sectors recorded a steep fall while the telecommunications services emerged unscathed by the global downturn and rocketed by 936 per cent on the Dubai bourse, Global Investment House (GIH) said in a study.

From around Dh42.5 billion in 2008, the combined net profits of the more than 120 companies listed on the UAE’s Abu Dhabi and Dubai stock exchanges dipped by nearly 26.1 per cent to Dh31.4 billion in 2008, the study said.

“Compared to their 2008 performance, the earnings of the UAE markets’ listed companies declined by 26.1 per cent in 2009,” it said.

Earnings of companies listed on the Abu Dhabi Securities Exchange (ADX) plunged by around 23.2 per cent to Dh24.8 billion from Dh32.4 billion.

Those listed on Dubai Financial Market (DFM) tumbled by about 35.2 per cent to Dh6.59 billion from Dh10.16 billion in the same period.

In ADX, most sectors declined except the construction sector, which grew by 15.8 per cent and the industrial and healthcare companies, whose profits swelled by nearly 15 and 30.6 per cent respectively.

Energy and real estate firms listed on ADX recorded the worst performance as their income plummeted by around 86 and 70.8 per cent. There was a decline of nearly 58 per cent in insurance, around 12.1 per cent in banking and nearly 2.6 per cent in telecommunications.

But the telecom sector on DFM was the star performer in 2009, leaping by 936.7 per cent, according to GIH.

Other good performers were the insurance and transportation sectors, which swelled by about 81.3 and 1.9 per cent respectively. The real estate firms listed on DFM saw their income plunge by around 72 per cent, the report showed.