Commercial banks in the Gulf Cooperation Council (GCC) recorded strong financial growth in 2024, with total assets climbing 10 percent to reach around $3.5 trillion, according to the Statistical Centre for the Cooperation Council for the Arab Countries of the Gulf (GCC-Stat).
Deposits also rose sharply, reaching approximately $2.1 trillion by the end of 2024, up 9.6 percent from 2023. The data showed deposits increased across all GCC countries, reflecting stronger confidence in the region’s banking sector.
Lending activity kept pace with deposit growth, with total loans provided by commercial banks hitting $2.1 trillion, a 9.9 percent rise from the previous year. Private sector borrowers accounted for more than 80 percent of the loan portfolio, underscoring the sector’s critical role in driving economic activity across the Gulf.
The ratio of non-performing loans to total loans declined between 2020 and 2024 in most GCC countries, although the level varied from one state to another. Loan-to-deposit ratios also showed wide variation, ranging from 66 percent to 125 percent.
Capital adequacy ratios remained well above global regulatory requirements. By the end of 2024, GCC banks reported ratios between 17.8 percent and 32 percent, comfortably exceeding the Basel III minimum of 8 percent.
Net profits of GCC banks also posted steady gains, surpassing pre-pandemic levels over the past four years, highlighting the sector’s resilience and ability to adapt to shifting market conditions.
The figures point to a strengthened banking system across the Gulf, supported by robust liquidity, prudent risk management, and rising profitability as the region continues its post-pandemic recovery.
News Source: Emirates News Agency
