Corporate profits will remain strong in 2019 - The Peninsula Qatar

Corporate profits will remain strong in 2019 - The Peninsula Qatar:

Amidst muted growth expectations in global markets, economic outlook for the GCC region as a whole remains positive, as the surge in oil revenues and fiscal reforms will provide the necessary cushion for GCC countries to support economic growth through capital expenditure. With the exception of Bahrain, where there is weakness in government finances, economic factors remain largely favourable for the region.

Markaz noted in its “GCC Stock Market Outlook 2019” that the growth in corporate earnings is expected to witness an uptick in the GCC during 2019 with the exception of Bahrain and Saudi Arabia. Banks will be the primary growth drivers, as the sector is expected to see a rise in profitability and credit growth due to tailwinds such as rising interest rates and new infrastructure projects. Commodity related companies are likely to see their earnings drop due to the fall in oil prices while the construction sector is expected to mildly rebound after years of underperformance.