GCC Corporate Earnings - Q4 and 2010 earnings until third week of March

As of third week of March 2011, we have 90% visibility in terms of market cap and 72% visibility in terms of number of companies to measure performance in GCC corporate earnings. Saudi Arabia enjoys 100% market capitalization visibility while Bahrain lags at 69%, the lowest in the GCC region. In terms of GCC Corporate Earnings visibility, Saudi Arabia leads the region with 95% visibility while Kuwait lags at 37%.

During 2010, GCC Corporate earnings grew by 25% YoY to USD43.1 Bn. The earnings were driven by an increase in the region’s commodities, telecom and banking segments’ earnings. Saudi Arabia (at 95% coverage) reported 34% YoY growth in corporate earnings to USD20.8 Bn in 2010 aided by commodities sector. KSA’s earnings received a boost from the commodities sector led by SABIC, which reported earnings of USD5.7 Bn in 2010. However, the real estate sector’s profits contracted 38% in YoY in 2010.

Kuwait recorded one of the fastest growths in earnings though on the back of poor visibility. Banks and Telecom led this surge. NBK and Zain are notable performers. Oman’s earnings increased 15% YoY in 2010, led by financial services sector.