Qatar and UAE banks show highest revenue growth rates in Middle East

Qatar is the only country in the Middle East with a significant growth rate in profits in the first half of 2009, according to a new study by The Boston Consulting Group (BCG). The global management consulting firm’s analysis of each country and individual bank shows that banks in Qatar and the UAE had the highest revenue growth rates of Middle Eastern banks in the first half of 2009.

A segment analysis of banks in the GCC shows that retail banking revenues stagnated in the first half of 2009, but retail banking profits fell less strongly than total banking profits. Thus, retail banking has been a stabiliser of revenue and profit development for banks in the Middle East, which was also the case around the globe.

The study also shows that the growth rate of banking revenues has been slowing down in the Middle East in the first half of 2009. While the overall growth rate of banking revenues was still positive, banking profits continued to fall further below 2005 levels due to significant loan loss provisions. However, the study revealed that Middle Eastern banks continue to fare better in comparison with their international counterparts.