Why Gulf Banks Are Merging Like Never Before: QuickTake - Bloomberg:
Abu Dhabi is considering a merger between three of its banks, potentially the emirate’s second tie-up between lenders in just over a year. Saudi Arabia had its first bank merger in 20 years in May. Lenders across the region are undergoing possibly the biggest overhaul it’s witnessed, with at least half a dozen involved in takeover or merger talks.
1. Why are so many Gulf banks merging?
The region is heavily over-banked and lenders are being forced to merge as they seek to stay competitive in an era of lower oil prices. There are more than 73 listed banks in the six-nation Gulf Corporation Council, according to data compiled by Bloomberg, catering to a population of around 51 million. Regional banks are heavily reliant on government deposits, and those have been dwindling in sync with crude prices.
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