São Paulo – The banking sector in the Gulf Cooperation Council is set for robust growth in 2025, supported by economic diversification efforts and favorable global financial conditions, Arab News reported based on data from accounting firm Ernst & Young.
According to EY, economic expansion across the region—projected at 3.5% in 2025—is driven by large-scale infrastructure projects, growing non-oil activity, and favorable monetary policies.
Saudi Arabia and the UAE, the two largest GCC economies, are expected to see non-oil growth exceed 3.4 percent, fueled by reforms and investment. “As we go into the first quarter of 2025, the GCC banking industry should remain strong due to considerable capital cushions, healthy asset quality indicators, and adequate profitability,” said the EY MENA Financial Services Leader, Mayur Pau.
Saudi banks are witnessing steady credit expansion, propelled by Vision 2030 projects and a surge in private sector lending. “The country’s planned megaprojects will play a role in creating enormous business and lending opportunities for banks this year,” the report said.
Saudi banks are witnessing steady credit expansion, propelled by Vision 2030 projects and a surge in private sector lending. “The country’s planned megaprojects will play a role in creating enormous business and lending opportunities for banks this year,” the report said.
The UAE banking sector is experiencing sustained growth in lending activities, aided by relaxed monetary policies and strong corporate and retail deposit inflows.
Banks in Qatar remain well-capitalized, with ongoing expansion of Qatar’s liquefied natural gas sector expected to generate fresh credit opportunities.
In Oman, banking sector growth aligns with the country’s Vision 2040 diversification initiatives, which are boosting lending activity.
Bahrain’s financial industry is benefiting from an uptick in private-sector investments and the completion of refinery upgrades.
Kuwait’s banking sector maintains stability, backed by high foreign assets, accounting for 30.4% of total local bank assets.
