In 2025 profitability, asset quality to boost GCC banking sector resilience: S&P
The banking sector in the Gulf Cooperation Council (GCC) region has been doing well. Banks have reported strong profitability and asset quality indicators in addition to strong capitalization and sufficient liquidity. This performance is expected to continue next year despite lower interest rates potentially impacting growth.
However, an unanticipated, severe increase in geopolitical risk or a major decline in oil prices could weigh on the GCC banking sector’s creditworthiness.
In its latest GCC Banking Sector Outlook 2025, S&P Global Ratings says that while it does not expect a full-scale regional war in the Middle East, a significant escalation could derail the macroeconomic environment in the region. As for interest rates, the agency expects lower rate to benefit systems that depend on external funding. However, banks’ bottom lines could be impaired by lower revenues if the cost of funding or the cost of risk does not decline.
UAE issues federal decree establishing UAE aid agency
President His Highness Sheikh Mohamed bin Zayed Al Nahyan has issued a Federal Decree No. 27 of 2024 to establish the UAE Aid Agency, affiliated with the International Humanitarian and Philanthropic Council. The agency shall have an independent juridical personality and full legal capacity to act.
The agency is tasked with implementing foreign aid programmes in line with the general policy for international humanitarian affairs. Its responsibilities include planning, overseeing, executing, and monitoring official government support, with a particular focus on disaster relief, early recovery programmes, post-conflict stabilisation, development programmes, and capacity building programmes.
Bahrain Finance Minister: In the GCC rising tide will lift all economies
Like many other Middle Eastern economies, Bahrain has been trying to move away from its dependence on fossil fuels. In 2000, oil and gas made up 44 percent of its GDP; now that figure is 16 percent.
“Economic diversification is as old as time,” Shaikh Salman bin Khalifa Al Khalifa, Bahrain’s Minister of Finance and National Economy, told CNN’s Richard Quest at Gateway Gulf, a gathering of business professionals, government officials and investors held this week in the country, under the theme “Investing in a Rapidly Transforming Region.”
“Bahrain was always a trading hub for the region, always had its pulse on what was happening around the world,” he said, adding that presently the country acts as a “service center” for the Gulf region as a whole.
The event concluded with deals and announcements to the tune of $12 billion, across sectors including finance, manufacturing, real estate and tourism.
In recent years, other members of the Gulf Cooperation Council — an economic and political union that also includes Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates — have had varying degrees of success in expanding their economies beyond fossil fuels.
By 2030 GCC economy set to reach $3trn
The GCC region is poised for significant economic growth, with GDP projected to reach $3 trillion by 2030 and $6trn by 2050, it has emerged.
This was the key takeaway from the opening panel discussion ‘Investing for Resilience in a Fast-Changing Global Reality’ at Gateway Gulf 2024 yesterday.
Moderated by broadcaster Richard Quest, with Finance and National Economy Minister Shaikh Salman bin Khalifa Al Khalifa participating alongside Saudi Arabia’s Minister of Investment Khalid Al Falih, and former UK Minister for Investment Lord Gerry Grimstone, the opening session underscored the necessity for growing regional integration, as well as technological innovation to leverage opportunities in the global economy, as well as mitigating current and future risks.
Panellists agreed that while Saudi Arabia and the UAE are major drivers of this growth, other GCC countries can capitalise on the opportunities by offering services and contributing to the regional economy.
Kuwait automotive retail market to hit valuation of US$ 12.28 billion by 2032
Kuwait automotive retail market is projected to hit the market valuation of US$ 12.28 billion by 2032 from US$ 3.58 billion in 2023 at a CAGR of 14.72 percent during the forecast period 2024–2032.
Kuwait’s automotive retail market presents a dynamic landscape of opportunities, trends, and emerging demands. The government’s Vision 2035 initiative, which focuses on economic diversification and sustainable development, serves as a catalyst for market growth. One key opportunity lies in the expansion of electric and hybrid vehicle offerings, as environmental consciousness rises among consumers. With the current sales of electric vehicles standing at approximately 2,000 units annually, there’s substantial room for growth. Automakers are poised to capitalize on this trend by introducing more models that meet stringent emission standards, supported by government incentives such as tax breaks and reduced registration fees (Kuwait Electric Vehicle Association, 2023).
Dubai’s economy grows 3.3pc in second quarter
Dubai’s economy grew by 3.3 percent annually in the second quarter of 2024 to reach Dh116 billion ($31.58 billion), driven by non-oil sectors including tourism and technology.
Growth in the April-June period was slightly higher than the 3.2 percent economic expansion recorded in the first three months of the year, as the emirate continues to focus on growing its non-oil industries.
For the first half of the year, the emirate’s economy grew by 3.2 percent to reach Dh231 billion, the Dubai Media office said on Sunday.
“We will continue our ambitious journey, building on every success to reach new heights,” Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, said.