However, the net earnings of the listed companies was seen declining 3.03% year-on-year in January-December 2023 against a 10.28% growth in 2022, reflecting the challenging macroeconomic environment amidst geopolitical uncertainties and high interest rate environment.
The 2023 net profitability contraction was on account of double-digit decline in the earnings in the industrials sector as well as marked slowdown in the net profit growth in the real estate, telecom and transport sectors.
The industrials sector, which has 10 listed constituents, saw a 35.94% year-on-year plunge in net profitability to QR9.46bn in 2023 compared to a 9.4% jump in 2022. The sector contributed 19.94% to the overall net earnings of the listed entities in 2023 against 30.19% in 2022.
Within the industrials sector, the country’s underlying firms that have direct linkages with the hydrocarbons sectors saw their earnings growth weaken substantially owing to the subdued demand across most commodity sectors.
The consumer goods and services sector, which has 13 listed entities, saw its total net profit tank 4.73% year-on-year to QR1.76bn at the end of 2023 against a 1.07% dip in 2022. The sector contributed 2.94% to the overall net profitability in the review period against 3.76% in 2022.
The telecom sector, which has two constituents, reported net profit of QR3.56bn, which was 7.5% of the total net profits in 2023 against 5.85% the previous year period. The sector had reported 24.22% growth in net profit in 20223 compared to 664.76% in 2022.
The realty segment, which has four listed entities, saw total net earnings grow 6.46% year-on-year to QR1.76bn in 2023 against a 32.12% surge in 2022. The sector constituted 3.71% to the overall net profitability in 2023 compared to 3.37% in 2022.
The transport sector, which has three listed constituents, saw total net profits grow 4.14% year-on-year to QR2.8bn compared to 16.88% surge in 2022. The sector's net profit constituted 5.9% to the total net profit of the listed companies in 2023 against 5.49% in 2022.
The banks and financial services sector, which has 13 listed entities, reported a 7.64% year-on-year jump in total net profit to QR28.47bn against a 7.91% expansion in 2022. The sector contributed 60.01% to the total net profits of the listed companies in January-December 2023 compared to 54.04% in 2022.
The insurance sector, which has seven companies, registered a 73.12% annual decline in net earnings to QR0.36bn against 173.92% contraction in 2022. The sector contributed 0.76% to the overall net profitability in 2023 against 2.74% in January-December 2022.
The proposed mandatory health insurance and the substantial expansion planned in the North Field are slated to augur well for the insurance sector in the future, according to reports.
