GCC banks will remain profitable this year, despite global economic headwinds, according to S&P Global’s GCC Banking Sector Outlook 2024.
The S&P report reveals a challenging yet optimistic perspective in the year ahead.
Despite geopolitical uncertainties and potential economic headwinds, S&P expects banks in the Gulf to maintain their well-capitalised, profitable, and liquid status.
GCC banking forecast
S&P Global anticipates overall stability in key metrics for Gulf banks in 2024.
Credit growth and profitability are expected to remain robust, with the UAE and Saudi banking systems leading the region.
However, potential risks, including geopolitical tensions and real estate exposure, remain.
Moreover, S&P expects non-oil growth to remain dynamic in Saudi Arabia and the UAE.
Meanwhile, high interest rates are anticipated to persist with a 1 per cent decrease by year-end mirroring the US Federal Reserve’s trajectory.