GCC banking consolidation driven by high density, profit fall: Markaz

GCC banking consolidation driven by high density, profit fall: Markaz:

The presence of unusually high number of banks and the fall in profitability linked to low oil price environment have triggered the need for consolidation among GCC banks, Markaz (Kuwait Financial Centre) has said in a report.

GCC countries have witnessed a surge in high-profile merger announcements in recent times, especially in the banking sector. It would also help in scaling up operations and widening the geographic scope for these banking institutions, Markaz said.

Markaz report stated that GCC countries are set to grow at a strong pace in 2019. Combined growth in the region is expected to be at 3% this year. Oman and Kuwait will be the leaders in terms of real GDP growth, registering 5% and 4.1% growth rate in 2019.