Analysis of the GCC banking sector performed by QNB Group concludes that its prospects are stable, banks are expected to be remain profitable and that the sector itself has room for growth.
Total assets in the sector rose by 8.9 percent in 2011 to $1.46 trillion, equivalent to 106 percent of regional GDP. By comparison, assets in the UK equal 341 percent of its GDP. This suggests that there is still plenty of room for GCC assets to grow in relative terms.
GCC banking assets have been growing strongly in recent years, except for a slow period in 2009, at a compound annual growth rate of 7.5 percent from 2007-11. This growth in banking assets is a consequence of the region’s economic boom, driven by high oil prices.
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