GCC banking sector relative bright spot among emerging markets: S&P

GCC banking sector relative bright spot among emerging markets: S&P

Muscat – The banking sector in the Gulf Cooperation Council (GCC) stands out as a relative bright spot among emerging markets (EMs) in 2024, according to S&P Global Ratings. According to a new report released on Thursday, S&P anticipates that GCC banks and banking systems will display broad stability across key metrics in 2024. The […]Muscat – The banking sector in the Gulf Cooperation Council (GCC) stands out as a relative bright spot among emerging markets (EMs) in 2024, according to S&P Global Ratings.

According to a new report released on Thursday, S&P anticipates that GCC banks and banking systems will display broad stability across key metrics in 2024. The rating agency forecasts that credit growth and profitability will remain strong for most GCC banks, although it expects a slight softening from 2023 levels.

‘In general, the region’s banks will continue to stand out as being well-capitalised, profitable, well-provisioned, and, for the most part, liquid,’ S&P said.

The UAE and Saudi banking systems are expected to lead growth in the region, with strong credit demand driven by a dynamic non-oil sector and economic diversification programmes. S&P also foresees robust credit growth in Oman.

However, the rating agency noted key risks to the outlook, including