GCC banks ride wave of economic diversification, poised for robust year
GCC banks are set to maintain strong performance in 2025, supported by robust capital levels and resilient economic conditions, according to the recent EY
GCC Banking Sector Outlook 2024
report.
The report highlights that the expansion of gas production in Qatar, economic transformation projects in Saudi Arabia, and non-oil economic growth in Bahrain and the UAE will underpin the sector's resilience.
Furthermore, Brent crude prices are projected to remain above $74 per barrel through 2027, bolstering banking sector stability.
Credit growth across most GCC countries is driven by a strong project pipeline, particularly in infrastructure development in Saudi Arabia and the UAE. This positive trend is expected to continue, supported by rising lending volumes, increased fee income, stable margins, and effective cost management.
As lending costs become more favourable, GCC countries may increase global investments.
Mayur Paul,
GDP growth on the rise
GCC GDP growth is projected at 3.5 per cent in 2025, with non-oil growth exceeding 3.4 per cent in Saudi Arabia and the UAE. The IMF forecasts a current account surplus of 8.2 per cent of GDP and a fiscal surplus of 3.9 per cent of GDP for 2025.
Global oil demand is expected to increase to 104.5 million barrels per day (mbpd) in 2025.
High oil prices, averaging $81 per barrel in 2024, and favorable economic growth have supported GCC banks' finances.
In 2024, GCC GDP growth rebounded to 3.5per cent, driven by increased oil production and strong domestic investment. Hydrocarbon growth is projected at 3.3 per cent, and non-hydrocarbon sectors at 3.4 per cent.
GCC economies are following the US Federal Reserve's interest rate cuts, which, along with domestic policies, have helped lower inflation. GCC banks have shown sustained credit growth, supported by economic transformation plans and robust project pipelines.
Outlook for GCC banks
UAE banks are expected to maintain strong lending growth, with deposits outpacing lending. Saudi Arabian banks reported healthy credit growth, driven by private sector loans and Vision 2030 projects.
Qatari banks exhibit strong profitability and capital strength. Omani banks' lending growth aligns with non-oil economic activities and Vision 2040 initiatives. Bahrain is poised for robust economic growth and increased credit growth. Kuwait's banking sector has enjoyed high profitability and stability.
Read:
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
an hour ago
- Zawya
UAE developer Binghatti Holding prices $500mln 5-year sukuk
Binghatti Holding marginally tightened the price on its $500 million Reg S 5-year benchmark sukuk to a profit rate of 8.125%, equivalent to a spread of 418 basis points over US Treasuries. The initial price guidance was in the 8.500% area The UAE developer, rated Ba3 by Moody's (Stable) and BB- by Fitch (Stable), saw its issuance oversubscribed five times, with an order book exceeding $2.5 billion. The company said its issuance attracted strong regional and international investor demand. The sukuk will be issued under Binghatti's $1.5 billion Trust Certificate Issuance Programme and listed on both, the Nasdaq Dubai and the London Stock Exchange. Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital, HSBC and Mashreq were appointed as Joint Global Coordinators and, together with Abu Dhabi Commercial Bank, Ajman Bank, Arqaam Capital, First Abu Dhabi Bank, RAKBANK, Sharjah Islamic Bank and Warba Bank, as Joint Lead Managers and Joint Bookrunners. Last year, the real estate developer turned to the debt markets with its inaugural $300 million sukuk in February, followed by a $200 million sukuk tap in July that took the overall deal size to $500 million. The issuance by Binghatti is the latest in a growing number of property developers tapping debt markets to capitalise on a construction boom in the GCC. In recent months, several developers including Omniyat, Damac, and the Abu-Dhabi based Aldar Investment Properties have tapped debt markets with sukuk issuances. Earlier this week, Sharjah's Arada Developments also launched its $450 million sukuk with a coupon of 7.150%. (Writing by Bindu Rai, editing by Brinda Darasha)
Khaleej Times
an hour ago
- Khaleej Times
BITS Pilani Dubai first to launch bachelor's degree in robotics and industrial automation
BITS Pilani Dubai Campus (BPDC) has announced the launch of its new B.E. programme in robotics and industrial automation, a forward-looking initiative designed to prepare students for careers in the rapidly evolving landscape of intelligent automation. This is the first time this specialised programme is being introduced across any BITS Pilani campus, placing the Dubai campus at the forefront of robotics education within the institution's global network. This launch comes at a time when the global robotics market valued at $62.75 billion in 2019 is projected to nearly triple by 2027. The UAE and wider GCC region are already emerging as leaders in robotics and automation, driven by smart city development, AI innovation, and growing investments in sectors such as logistics, manufacturing, energy, and healthcare. In this dynamic environment, BPDC's new programme aims to equip students with a strong foundation in robotics, industrial automation, and artificial intelligence, combined with hands-on experience and interdisciplinary learning. What makes this programme truly unique is that the courses and curriculum have been jointly developed by the Departments of Mechanical, Electrical, and Computer Science at BITS Pilani Dubai. Equal emphasis has been placed on theory and lab-based learning — twelve courses in the programme include dedicated lab sessions, supported by the institute's advanced facilities. According to Prof. Souri Banerjee, director of BPDC, "Robotics is no longer science fiction. It's the future of every industry — from manufacturing and healthcare to logistics, agriculture, and even space exploration. With this programme, we are preparing our students to be leaders in this transformation, empowering them with advanced technical skills and the ability to innovate." The curriculum includes foundational courses in mechanical, electronic, and computer systems, alongside specialised subjects such as Introduction to Mechanisms and Robotics, AI for robotics, robot dynamics and control, Embedded System for Robotics, Industrial Automation & Control, Computer Vision and Sensors, Actuators & Signal Conditioning . Students will also gain practical experience with industry-relevant tools like Programmable Logic Controllers (PLC), SCADA systems, STM32 microcontrollers, CAD/CAE platforms, and Human-Machine Interfaces (HMI). Commenting on the new programme, Nahid Afshan, head of admissions at BPDC, said: "The introduction of this programme reflects our ongoing commitment to offering cutting-edge, industry-relevant education. With the world rapidly embracing automation, this is an exciting opportunity for students to gain a competitive edge in a high-growth field." Prof. Vincent Shantha Kumar, associate professor and head of the programme, added: "It's the right time that we have launched this particular programme. Professionally, Robotics and Industrial Automation is one of the fastest growing engineering fields and there's a huge demand in the field of aerospace, industries, manufacturing industries, energy industries and students will be developing high employability rate with this programme. We have benchmarked this programme with the top universities across the globe offering Robotics education, which makes it truly unique compared to other programmes offered by other universities." In addition, students can choose from a wide range of electives in cutting-edge areas such as deep learning, autonomous aerial vehicles, machine learning, digital twins in mechanical engineering, cyber Physical Systems and Security, AR/VR in Robotics, and Bio-Inspired Intelligence. This ensures a holistic education aligned with the demands of modern industries. The career prospects for graduates of this programme are both diverse and promising. Students can explore roles such as Robotics Engineer, Mechatronics Engineer, Controls Engineer, Robotics Software Developer, Automation Engineer, and Field Robotics Technician. The programme also opens up opportunities to work with leading companies in the UAE and India such as Siemens, Schneider Electric, Honeywell, Emerson Automation, Weidmuller, FESTO, Digi Robotics, IQ Robotics, Ameca Robotics, DEWA, Emirates Airlines, Techrobotix, and Larsen & Toubro, among others. As an international campus of the prestigious BITS Pilani, BPDC offers students a globally benchmarked education. The vibrant multicultural environment and state-of-the-art infrastructure at BPDC enhance the learning experience. Students may also opt for Minor Programmes in complementary areas like Data Science and Entrepreneurship to broaden their academic and career pathways. Admissions are now open for the B.E. in Robotics and Industrial Automation. High school students with a background in Physics and Mathematics are encouraged to apply.
Hi Dubai
an hour ago
- Hi Dubai
CBUAE Releases Report Highlighting Progress on Digital Dirham and Future CBDC Rollout
The Central Bank of the UAE (CBUAE) has published a detailed report outlining its progress toward launching the 'Digital Dirham', the UAE's national central bank digital currency (CBDC). As part of the Financial Infrastructure Transformation (FIT) programme, the report explores the Digital Dirham's design, policy framework, and pilot projects. Key features include offline usability, smart contracts, and cross-border transactions. The initiative aims to enhance payment efficiency, drive financial inclusion, and support the digital economy. The CBUAE emphasized its commitment to international standards by aligning the Digital Dirham's development with guidelines from the IMF and BIS. It also showcased its collaboration with strategic partners to ensure seamless adoption. Governor Khaled Mohamed Balama described the project as a cornerstone in shaping the UAE's future financial infrastructure. A full platform—including a digital wallet—has already been developed to support commercial and peer-to-peer transactions. The currency will serve as a secure digital alternative to cash, supporting both residents and non-residents. News Source: Emirates News Agency
