Commercial banks in the Gulf Cooperation Council nations saw their total assets climb by 10 percent last year, hitting about $3.5 trillion as economies in the region bounced back strong. This growth, reported in fresh data from statistical centers, came amid rising deposits and loans, pointing to solid banking health across Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.
Strong Growth in Key Banking Metrics
Banks in these oil-rich countries enjoyed a banner year in 2024, with assets jumping from previous levels thanks to steady economic expansion and smart investments. Experts point to factors like higher oil prices early in the year and government pushes for diversification beyond energy.
Deposits at these banks totaled around $2.1 trillion by year’s end, up 9.6 percent from 2023. This rise shows more people and businesses trusting the system and parking their money there.
Loans also grew to $2.1 trillion, a 9.9 percent increase, with most going to private firms. This lending boost helped fuel projects in real estate, tech, and tourism, key areas for GCC growth.
Decline in Risky Loans and Solid Capital Buffers
One bright spot was the drop in non-performing loans across most GCC countries from 2020 to 2024. While the improvement varied by nation, it signals better risk management and fewer bad debts weighing down balance sheets.
Capital adequacy ratios stayed strong, ranging from 17.8 percent to 32 percent, well above the global Basel III minimum of 8 percent. This means banks have plenty of cushion against shocks.
Loan-to-deposit ratios showed differences across the region, from 66 percent in some spots to 125 percent in others. These figures highlight how banks balance lending with available funds.
- Saudi Arabia led with high ratios, driven by big infrastructure spends.
- UAE banks focused on tech and trade, keeping ratios steady.
- Smaller nations like Bahrain emphasized careful growth.
Profits Rebound Past Pre-Pandemic Highs
Net profits for GCC commercial banks kept climbing over the last four years, beating levels seen before the COVID-19 hit. In 2024, earnings got a lift from higher interest rates and expanding services.
This profit streak ties into broader trends, like the surge in net foreign assets at central banks, which rose 6.3 percent to $761.9 billion. UAE reserves played a big role in that jump.
Banks also issued more debt, topping $60 billion in 2025 so far, with expectations for strong activity into 2026. This helps fund operations and growth plans.
Regional Differences and Economic Ties
Not all GCC countries grew at the same pace. UAE and Saudi Arabia saw the biggest asset gains, thanks to booming non-oil sectors like finance and logistics.
Oman and Qatar focused on energy projects, while Kuwait and Bahrain worked on reforms to attract foreign cash. Overall, the region’s GDP at constant prices rose 3.3 percent to $456.3 billion in the fourth quarter of 2024.
| Country | Asset Growth (%) | Key Driver |
|---|---|---|
| Saudi Arabia | 12 | Infrastructure boom |
| UAE | 11 | Tech investments |
| Qatar | 9 | Energy exports |
| Kuwait | 8 | Policy reforms |
| Oman | 7 | Diversification efforts |
| Bahrain | 6 | Financial services |
Outlook for 2025 and Beyond
Looking ahead, experts predict continued strength in GCC banking, with non-oil activities driving more growth. Challenges like global rate changes and geopolitical tensions remain, but buffers are solid.
Recent events, such as Oman’s launch of a $265 million AI zone, show how tech is blending with finance to create new opportunities. Banks are positioning to support these shifts.
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