Al-Riyadh newspaper | Saudi market companies recorded the largest growth in net profits, with an annual increase of $8.1 billion

The total net profits of companies listed in the Gulf financial markets increased by 15.5 percent on an annual basis in the first quarter of 2026, reaching a new record level on a quarterly basis amounting to US$67.9 billion, compared to US$58.8 billion in the first quarter of 2025. The growth in profits was mainly driven by an increase in the profits of energy sector companies, led by Aramco, in addition to the growth in the profits of listed banks and companies in the food production and capital goods sectors. On the other hand, the sharp decline recorded in the profits of companies in the communications and transportation sectors limited the pace of overall profit growth. On a quarterly basis compared to the previous quarter, profit growth was more robust, exceeding more than 40 percent compared to the fourth quarter of 2025, supported once again by the rise in energy sector profits, in addition to the growth in profits of companies operating in the basic materials and banking sectors. This was partially offset by declining profits in the real estate and food production sectors.

At the country-by-country level, listed companies in Qatar and Kuwait recorded a decline in profits during the first quarter of 2026 by 3.3 percent and 48.9 percent on an annual basis, respectively. However, the increase in profits of listed companies in the rest of the Gulf Cooperation Council countries was sufficient to compensate for this decline. Companies listed in the Saudi market recorded the largest growth in net profits, with an annual increase of 8.1 billion US dollars, or the equivalent of 22.2 percent, to reach 44.4 billion US dollars, followed by companies listed in the Abu Dhabi and Dubai markets, with an annual increase of 1.5 billion US dollars and 0.8 billion US dollars, respectively. On a quarterly basis, companies listed in the Abu Dhabi, Dubai and Kuwait markets recorded a decline in profits, but this decline was offset by a strong increase in corporate profits.

Listed in the Saudi market, whose quarterly profits recorded a growth of nearly double, followed by companies listed in Qatar and Bahrain, which achieved double-digit growth in their profits during the same period. The first quarter of 2026 also witnessed widespread growth in the revenues of companies listed on Gulf stock exchanges on an annual basis, as total quarterly revenues reached 353.3 billion US dollars, recording a growth of 7.7 percent on an annual basis. Compared to the previous quarter, revenue growth came at a slower pace of 2.7 percent, in light of the decline in revenues in most Gulf countries, affected by the repercussions of the war in the Middle East.

Aramco’s net profits

According to the companies’ financial statements, which were monitored by Bloomberg, Reuters and Kamco Invest Research, and in the energy sector, 21 out of 30 listed companies recorded growth in their profits, compared to a decline in the profits of nine companies on an annual basis. Saudi Aramco’s net profit increased by more than a quarter in the first quarter of 2026 to reach $32.0 billion, supported by the rise in crude oil prices, as the price of Brent crude oil reached $126.7 per barrel at the end of the first quarter of 2026, while its average price reached $80.7 per barrel during this quarter, recording an annual growth of 6.4 percent and a quarterly growth of 26.8 percent. The hundred. The company also benefited from increased sales volumes and revenue growth generated from refined products and chemicals. Also, the Rabigh Refining and Petrochemical Company (Petro Rabigh) and the National Shipping Company of Saudi Arabia (Bahri), which are listed on the Saudi market, recorded remarkable growth in profits, supported by improved margins for refined products, higher sales volumes, and an increase in shipping rates for crude oil tankers. In contrast, this performance was offset by a 15.0 percent decline in ADNOC Gas’ profits as a result of the turmoil resulting from the war. In terms of revenues, energy sector revenues increased by 8.9 percent on an annual basis and by 10.3 percent on a quarterly basis during the first quarter of 2026, to reach 144.6 billion US dollars. At the level of the Gulf banking sector, the sector’s profits continued to achieve stable growth rates during the first quarter of the year 2026, recording an increase of 13.2 percent on a quarterly basis and by 5.1 percent on an annual basis, bringing the total net profit of the sector to 16.9 billion US dollars during this quarter. This growth was supported by the continued expansion of credit at a strong and widespread pace in most Gulf countries. According to data from Gulf central banks, the total outstanding credit facilities in the region amounted to 2.1 trillion US dollars by the end of the first quarter of 2026 (excluding Oman due to lack of data), recording a growth of 2.5 percent on a quarterly basis and 9.1 percent on an annual basis. On the other hand, the total revenues of banks grew at a more moderate pace on a quarterly basis, at a rate of 0.9 percent during the first quarter of 2026, which is the lowest quarterly growth rate in four quarterly periods, to reach 35.2 billion US dollars, while the annual growth rate reached 8.8 percent. Net interest income witnessed a marginal decline of 0.3 percent during this quarter, but non-interest income growth of 3.8 percent offset this decline. The decline in provisions for credit losses to US$2.7 billion in the first quarter of 2026, compared to US$3.9 billion in the fourth quarter of 2025, also contributed to enhancing the sector’s net profit.

As for the Gulf telecommunications sector, it recorded a sharp decline in net profit by 12.2 percent on an annual basis, to reach 3.1 billion US dollars in the first quarter of 2026. This decline is mainly due to a decline in the profits of the Emirates Telecommunications Group “e&” by 46.2 percent.

Profits of listed Saudi companies

The profits of companies listed on the Saudi Stock Exchange (Tadawul) recorded a growth of 22.2 percent on an annual basis to reach US$44.4 billion in the first quarter of 2026, compared to US$36.3 billion in the first quarter of 2025. This growth was supported by the strong performance of the main sectors in the market, led by the energy, banking and public utilities sectors, while the real estate, healthcare, investment and finance sectors recorded a decline in profits during this quarter.

The energy sector came at the forefront of the market sectors in terms of contribution to profits, after its net profit increased to 33.1 billion US dollars in the first quarter of the year 2026 compared to 25.6 billion US dollars in the first quarter of the year 2025, achieving a growth of 29.5 percent. Saudi Aramco recorded a net profit of $32.0 billion in the first quarter of 2026, compared to $25.5 billion in the first quarter of 2025, against the backdrop of higher crude oil prices, increased sales volumes, and improved performance of refining, processing, and marketing activities. Total revenues also increased by 6.8 percent, reaching 433.1 billion Saudi riyals (115.5 billion US dollars). The company’s Board of Directors announced the distribution of basic dividends to shareholders for the first quarter of 2026, amounting to US$21.9 billion, an annual increase of 3.5 percent. In the same context, Rabigh Refining and Petrochemical Company (Petro Rabigh) returned to achieving profitability again during the first quarter of 2026, recording a net profit of 390.8 million US dollars after incurring losses in the first quarter of 2025. The company’s revenues also increased by 32.4 percent on an annual basis to reach 14.85 billion Saudi riyals, supported by higher crude oil sales and improved pricing conditions.

On the other hand, banks listed on the Saudi market recorded strong results in the first quarter of 2026, as their net profits increased by 7.7 percent to reach 24.0 billion Saudi riyals (6.4 billion US dollars). This growth was supported by an increase in financing revenues, a decrease in provisions for credit losses, and the strong performance of Al Rajhi Bank, the National Bank of Saudi Arabia, and Bank Albilad. Deposit growth of 9 percent year-on-year, exceeding credit growth of 8 percent, also contributed to supporting the stability of the sector’s profit margins. All listed banks recorded growth in profits during the first quarter of 2026, with the exception of First Saudi Bank (SABB). Al Rajhi Bank recorded a net profit of 6.8 billion Saudi riyals (1.8 billion US dollars) compared to 5.9 billion Saudi riyals (1.6 billion US dollars) in the previous year, mainly due to an increase in net financing and investment income by 18.4 percent on an annual basis. The profits of the Saudi National Bank also increased by 6.7 percent to reach 6.4 billion Saudi riyals (1.7 billion US dollars) in the first quarter of the year 2026, compared to 6.0 billion Saudi riyals (1.6 billion US dollars) in the first quarter of the year 2025, supported by the growth of net special commission income by 3.1 percent as a result of the increase in financing revenues. For its part, Bank Albilad recorded a 5.1 percent growth in net profits to reach 735.8 million Saudi riyals (196.2 million US dollars) in the first quarter of 2026, compared to 700.4 million Saudi riyals (186.7 million US dollars) in the first quarter of 2025, as a result of an increase in net income from financing and investment assets. On the other hand, the profits of First Saudi Bank (SABB) declined by 2.3 percent to reach 2.09 billion Saudi riyals (556.2 million US dollars) in the first quarter of 2026, compared to 2.14 billion Saudi riyals (569.1 million US dollars) in the first quarter of 2025. This decline is mainly due to a rise in provisions for credit losses by 20 percent on an annual basis.