The strong earnings growth of Qatari companies in the third quarter of current year shows that they have managed to overcome the impact of coronavirus. Even though the COVID-19 pandemic has hit the global economy hard, the strength of Qatar’s economy and companies remain evident.
According to Qatar Stock Exchange (QSE) data, the combined net profit of companies listed on QSE has reached QR23.8bn in the third quarter of the current year.
It is worth noting that the companies have reported profits amid challenges posed by COVID-19 pandemic. Despite the testing environment, Qatari companies have managed to deliver profits by adopting prudent measures.
Qatari companies have been delivering profits despite decline in pace of commercial activities due to coronavirus outbreak since March. The combined net profit of QSE listed companies had reached QR8.3bn at the end of first quarter (March 31, 2020) of this year and QR19.6bn at the end of second quarter (June 30, 2020).
Of the total 47 companies listed on Qatar Stock Exchange, 13 firms fall in the Banks & Financial Institutions sector. In terms of amount, this sector has come in the top. The Banks & Financial Institutions sector witnessed a net profit of QR16.9bn. Banking major QNB Group led the pack, as its net profit for the first nine months this financial year ended September 30, reached QR9.5bn ($2.6bn).
The strong banking sector demonstrates the soundness of Qatar’s financial system. The State of Qatar has taken several measures to strengthen banking and other sectors. Qatar has managed to maintain its high credit ratings with a stable outlook in ratings by global agencies.
The strong earnings growth by companies reflects the resilience of Qatar’s economy. The support measures announced by the government have also helped the private sector to post positive performance. To support the private sector, especially small businesses, the government had announced a stimulus package of QR75bn. Since the outbreak, QDB launched several initiatives within the framework of a trilateral strategy to help SMEs survive the pandemic, revive their businesses amid ongoing challenges, and ultimately thrive in the new economy.
Qatar’s advanced logistical, financial and digital infrastructure, in addition to the free industrial zones are witnessing continuous expansion, creating the conditions and environment conducive to long-term investments and sustainable growth. The positive performance of companies in the third quarter shows that Qatar’s private sector has emerged stronger despite exceptional situation created by the pandemic.
