The banking sector in the Gulf Cooperation Council (GCC) is set for strong growth in 2025, driven by economic diversification, infrastructure projects, and favorable financial conditions, according to Ernst & Young (EY).
The firm projects 3.5% economic expansion across the region, with Saudi Arabia and the UAE expected to see non-oil growth exceed 3.4%, supported by major investment and reform initiatives.
Saudi banks are witnessing steady credit expansion, fueled by Vision 2030 megaprojects and increased private-sector lending. Meanwhile, UAE banks are benefiting from strong deposit inflows and relaxed monetary policies.
Qatar’s banks remain well-capitalized, with new credit opportunities emerging from LNG sector expansion. Oman, Bahrain, and Kuwait also continue to see solid banking performance, backed by diversification efforts and foreign asset reserves.
Global financial trends, including the US Federal Reserve’s recent rate cut, are easing inflationary pressures, prompting GCC economies to adjust monetary policies accordingly. Additionally, digital transformation is accelerating, with banks adopting AI, open banking, and digital currencies to enhance profitability.
With Brent crude prices expected to stay above $74 per barrel through 2027, GCC banks are positioned for continued financial stability and expansion.