Gulf Region: Banks Increase Half-Year Profits
Fuelled by strong demand for real estate and a steady influx of new companies and workers from around the world, the leading banks in the Gulf managed to significantly boost their earnings in the first half of the year—despite ongoing geopolitical headwinds. One well-known financial brand from Dubai, however, stands out from the rest.
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Written by Gérard Al-Fil, Dubai
First Abu Dhabi Bank (FAB), the largest bank in the United Arab Emirates (UAE), kicked off the earnings season. FAB’s six-month profit rose by a solid 26 percent year-on-year, reaching AED 10.6 billion (USD 2.89 billion). Thanks to this strong performance—bank assets increased by 11 percent, surpassing the AED 1 trillion (USD 400 billion) mark for the first time—FAB stated it was prepared to pursue acquisitions in the regional financial sector, provided they made economic sense.
Kuwait Makes Its Mark
The National Bank of Kuwait (NBK) reported a 7.8 percent rise in net profit. The bank, known for its camel logo, also announced that its first green bond—issued in June 2024 with a volume of USD 500 million—is now being invested in sustainable assets such as energy-efficient buildings and renewable energy, in accordance with United Nations guidelines. This marks a first in the desert nation of Kuwait.
FAB and NBK are among the few financial institutions in the Middle East to receive a double-A credit rating (the second-highest grade) from leading rating agencies Moody’s, S&P, and Fitch. The reason: both Abu Dhabi and Kuwait are major oil exporters, and the state holds stakes in both banks—meaning petrodollars would be available as a safety net if needed.
Gains in (Almost) All Areas
There was good news from Saudi Arabia and Qatar as well. Saudi financial giant SNB posted a 17.3 percent increase in profit for the first half of 2025. Qatar’s major bank QNB reported a 3 percent gain. Like most top GCC banks, QNB has expanded internationally in recent years and maintains offices in London, Hong Kong, Singapore, and Geneva. The lender is also a member of the Swiss Association of Foreign Banks (AFBS).
Banks across the six GCC states are benefiting in multiple ways. According to credit rating agency S&P, ongoing geopolitical tensions in the Middle East (Iran-Israel) as well as the continuing war in Ukraine are driving a steady flow of flight capital into GCC accounts, which are seen as safe havens. The GCC bloc’s political stability is fuelling a tourism boom, and minimal taxation is attracting companies, skilled professionals, and wealthy individuals from abroad—many of whom are buying property. For example, the UAE’s population reached 11 million for the first time in July, increasing demand for housing and retail banking products. Dubai’s real estate market saw a 46 percent year-on-year increase in sales value in the second quarter of 2025, reaching AED 151.8 billion (USD 41.3 billion).
However, a notable shift is on the horizon: starting in 2028, the Gulf state of Oman will introduce a 5 percent income tax—an unprecedented move in the region.
Mixed Signals from Dubai
Only one well-known name among the Arab financial institutions failed to join the profit surge. Dubai’s first bank, Emirates NBD, reported a 9 percent decline in profit for the first six months. The reason: operating costs rose by nearly 20 percent year-on-year, as the bank is heavily investing in expanding its digital service platforms.
Nonetheless, Emirates NBD’s stock significantly outperformed the Dubai market index DFMGI in the first half of the year, rising 25 percent compared to the gauge's 11 percent gain.
Gulf Region: Banks Increase Half-Year Profits: Fuelled by strong demand for real estate and a steady influx of new companies and workers from around the world, the leading banks in the Gulf managed to significantly boost their earnings in the first half of the year—despite ongoing… #middleeat #gulf
