Islamic banking growth to outpace conventional banks in GCC: Moody’s
Islamic finance is set to outpace conventional banking growth across the Gulf Cooperation Council (GCC) region, driven by sustained economic expansion and rising demand for Shariah-compliant products, according to a report from Moody’s Ratings. Saudi Arabia leads the region with an 85 percent market penetration in Islamic banking, while the UAE, Oman, Kuwait and Qatar also show strong potential for growth. The report highlights Saudi Arabia as a major beneficiary, with Islamic financing supporting the kingdom’s Vision 2030 programme. Moody’s forecasts that Islamic banks in the GCC will maintain strong profitability over the next 12 to 18 months, buoyed by government efforts to diversify economies and increase commercial activity. “Islamic banks across most of the region have ample liquidity to support their expansion, thanks to strong deposit inflows. However, Islamic banks will continue to hold relatively lower levels of liquid assets than their conventional peers, reflecting a lack of liquid Shariah-compliant financial instruments for liquidity management,” said Moody’s.
GCC leaders optimistic on economic viewpoint and investment climate
“The GCC countries have seen sustained economic progress backed by clear leadership vision. These advancements have solidified the GCC’s position on the global stage, showcasing the region’s dynamism and enduring potential,” commented Nicholas McDonagh, senior managing director and head of Teneo in the Middle East. The most optimistic countries in the GCC are the UAE and Saudi Arabia. A total of 72 percent of leaders in the UAE and 82 percent of leaders in Saudi Arabia said that they believe their regional economy will improve by the end of this year.
Visa-free entry for Saudi and GCC nationals for 90 days: Pakistan
The Pakistani government has announced a visa exemption for citizens of Saudi Arabia and other GCC countries, allowing them a 90-day visa-free entry. The new decision under Pakistan’s “Revised Visa Policy” marks the first time Saudi nationals can enter Pakistan without prior visa formalities. Under this new policy, GCC citizens are no longer required to secure an electronic travel authorisation or a visa through Pakistan’s e-Visa system. This initiative is expected to enhance business interactions and increase tourist influx from the Gulf region into Pakistan. Pakistan, known for its diverse landscapes and rich cultural heritage, offers numerous attractions. The capital city, Islamabad, known for its well-planned streets and scenic beauty, is surrounded by the Potahar Plateau, the Margalla Hills, and the foothills of the Himalayas.
DP World ranked among best workplaces for GCC millennials
DP World has been recognised as one of the Best Workplaces for Millennials in the GCC by Great Place to Work. The recognition, driven by positive feedback from millennial employees who constitute 55 percent of DP World GCC’s workforce, highlights the company’s ongoing efforts to cultivate a supportive and empowering work environment. The Certification recognises organisations that excel in creating outstanding employee experiences and demonstrating exceptional people practices. As a global authority on workplace culture, Great Place to Work surveys 10,000 companies each year across 90 countries. The accolade comes following DP World’s Great Place to Work certification earlier this year, further affirming its position as an employer that prioritises the needs of a diverse workforce, said a top official.
GCC non-oil growth remains strong despite fiscal uncertainty: report
Non-oil growth across the GCC continues to show resilience despite global uncertainties, according to PwC’s latest Middle East Economy Watch report. The report highlights strong growth rates for 2024, with the UAE at 4 percent, Saudi Arabia at 3.7 percent, and Oman at 3.8 percent. Kuwait has also returned to growth, posting a 4.7 percent expansion in its non-oil sector. The outlook remains positive for 2025, with expectations of further growth driven by a forecasted decline in US interest rates, allowing GCC countries to lower their rates as well. However, fiscal uncertainties persist, as OPEC+ members agreed to delay planned production tapering amidst falling oil prices, with crude nearing $70 a barrel. Despite these challenges, the report points to several positive developments in the region.