JEDDAH: Saudi Arabia enjoyed 100 percent market capitalization visibility in terms of market capitalization and 72 percent visibility in terms of number of companies to measure performance in GCC corporate earnings, Kuwait Financial Centre (Markaz) said in a new report Friday. Bahrain lagged at 69 percent, the lowest in the GCC region. In terms of GCC corporate earnings visibility, Saudi Arabia led the region with 95 percent visibility, while Kuwait lagged at 37 percent. During 2010, GCC corporate earnings grew by 25 percent YoY to $43.1 billion. The earnings were driven by an increase in the region's commodities, telecom and banking segments' earnings. Saudi Arabia (at 100 percent coverage) reported 34 percent YoY growth in corporate earnings to $20.8 billion in 2010 aided by commodities sector. The Kingdom's earnings received a boost from the commodities sector led by SABIC, which reported earnings of $5.7 billion in 2010. However, the real estate sector's profits contracted 38 percent in YoY in 2010. The banking sector was flat as high provisioning continued to erode the bottom line amidst a slow lending scenario. After two consecutive years of losses, corporates returned to positive growth in 2010 in Kuwait. Kuwait recorded one of the fastest growths in earnings to $ 7.1 billion versus a loss of $ 438 million in 2009. Banks and Telecom led the surge. NBK and Zain are notable performers, though in the latter it was due to extraordinary earnings from the sale of its African assets to Bharti Airtel. However, UAE posted a 47 percent YoY decline in corporate earnings to $ 4.8 billion, marred by poor performances in real estate sector. UAE real estate sector was dragged by Aldar Properties PJSC that posted a loss of $3.5 billion in 2010 compared to profit of $228 million in 2009. Likewise, Qatar's corporate earnings fell nearly 20 percent YoY in 2010 relative to the 26 percent YoY growth in 2009, mainly due to $2.3 billion gain booked by Ezdan real estate during Q4 2009.
