Qatari-listed companies’ earnings kicked off the year with a modest but important growth in the first quarter of 2025, showing the strength of Qatar’s key business sectors. The rise in profits was mainly led by banking, real estate and energy, which continued to attract strong investor confidence.
Banking Sector: The Backbone of Q1 Gains
The banking industry remains the strongest part of Qatar’s stock exchange, accounting for more than half of the total Q1 profits. A report by Kamco Invest stated that profits from the sector rose by 1.1%, reaching $2.09 billion, or 57.7% of all earnings from Qatari-listed companies.
Here are some highlights:
- QNB posted a net profit of $1.2 billion, up 2.9% year-on-year, due to a 5.3% rise in operating income, a 6% increase in customer deposits, and a 9% increase in loans to $260.1 billion.
- QIB grew its net profit by 3.2% to $270.2 million, supported by stronger income from both interest and other sources.
- Qatar International Islamic Bank saw a 6.4% profit increase to $97.7 million, helped by higher net interest income and reduced impairment charges.
Another major player, QIIB, posted a 6.3% year-on-year increase in net profit to QR 356.4 million, or about $97.9 million, by the end of Q1.
These figures show how crucial the banking sector is to Qatar’s stock market performance.
Real Estate Sector: A Quiet but Steady Supporter
While the banking sector took the spotlight, real estate companies also played a role in supporting overall earnings. Firms like United Development Company, Barwa Group, and Ezdan Holding Group reported stable performances in property development and leasing. Their earnings helped maintain confidence in the property sector, despite a slightly slower construction market.
Energy Sector: Building Strength with Global Demand
Qatar’s energy firms showed clear growth, with sector earnings increasing 7.5% year-on-year to $242.9 million.
Some of the top performers include:
- Gulf International Services Co. reported earnings of $60.9 million, a sharp 37.8% rise, driven by improvements in its drilling, aviation, and insurance businesses.
- Qatar Gas Transport Co. (Nakilat) delivered a net profit of $118.8 million, up 3.2%, backed by solid demand for shipping services.
Qatar’s long-term investments in LNG production and energy transport have helped this sector remain strong, even as energy prices fluctuate globally.
Telecom Sector: Modest Yet Reliable Growth
The telecom sector also added to Q1 profits with consistent, moderate gains.
- Ooredoo posted a 5.2% year-on-year profit rise to $263.3 million. This was helped by stable exchange rates and reduced borrowing costs.
- Vodafone Qatar saw profits grow 8.2% year-on-year to $44.5 million, driven by a 6.1% increase in total revenue and careful cost control.
While not as large as banking or energy, the telecom sector’s stable earnings helped diversify Qatar’s corporate growth in Q1.
Overall Q1 Picture: Slow but Healthy Gains
The combined earnings of all Qatari-listed companies rose 0.9% year-on-year to $3.62 billion, compared to $3.59 billion in Q1 2024.
For comparison, banks across the GCC earned $13.2 billion in Q1 2025, marking a 9% jump year-on-year. While Qatar’s growth is more modest, it reflects steady and cautious progress in line with long-term economic goals.
Economic Context: A Balanced Approach
Qatar’s financial reports show a stable economic environment.
- In Q1 2025, the government posted a small budget deficit of QR 500 million (about $138 million), with revenues at QR 49.4 billion and expenditures at QR 49.9 billion.
- Fitch forecasts Qatar’s GDP will grow by 2.6% in 2025. Growth will be led by both the hydrocarbon and non-hydrocarbon sectors, although the real estate and construction industries may face challenges.
Main Drivers of Q1 Success
- Banking growth: Higher income from loans and strong customer deposits drove bank profits.
- Energy strength: Ongoing global demand for gas and oil supported energy companies.
- Real estate stability: Long-term investment in housing and infrastructure helped realty firms maintain profits.
- Telecom expansion: Strong consumer demand for mobile, internet, and new technologies like IoT supported telecom revenues.
Potential Risks and Areas to Watch
- Construction and real estate: These sectors may see weaker growth if demand or funding falls.
- Global energy market: Qatar’s energy companies are doing well, but may face risks from international price swings or supply chain issues.
- New tax rules: The introduction of global minimum tax rules for multinationals could impact future bank earnings.
Conclusion: Steady and Strategic Growth Ahead
Qatari-listed companies’ earnings showed modest but meaningful growth in the first quarter of 2025. Banking continues to lead the way, with support from energy, real estate, and telecom sectors.
Although the rise was not dramatic, the Q1 results show that Qatar’s economy remains healthy, diversified, and focused on long-term goals. As global markets shift, Qatar seems well-positioned to balance growth with caution — a strategy that could pay off in the quarters ahead.
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