RIYADH: The Gulf Cooperation Council’s banking industry is expected to grow rapidly in 2025 thanks to initiatives to diversify the economy and advantageous international financial circumstances. The region’s economy is expected to increase by 3.5 percent in 2025, according to accounting firm Ernst & Young. This growth is being driven by major infrastructure projects, expanding non-oil activities, and supportive monetary policies.
These forecasts are in line with those of several other rating agencies, such as S&P Global, which said in its most recent banking sector outlook that GCC financial institutions “are doing well” and that they anticipate continuing to perform well all year long.
With reforms and investment, non-oil growth is predicted to surpass 3.4 percent in the two biggest GCC economies, Saudi Arabia and the United Arab Emirates. “The GCC banking sector should continue to be robust as we enter the first quarter of 2025 because of sizable capital cushions, sound asset quality metrics, and sufficient profitability,” stated Mayur Pau, the EY MENA Financial Services Leader.
Vision 2030 initiatives and a rise in private sector loans are driving Saudi banks’ consistent credit expansion. “This year, banks will have a lot of business and lending opportunities thanks to the nation’s planned megaprojects,” the research stated.
Also Read:
List of Offenses Involving the Drug Methamphetamine
Hungary Gives up its Veto and Consents to Extend EU Sanctions Against Russian Nationals
