GCC Banks’ Assets Surpass $3.5 Trillion: Implications for Investors and Business Growth in Oman
MUSCAT: By the end of 2024, the total assets of commercial banks in the Gulf Cooperation Council (GCC) countries increased by 10%, reaching approximately $3.5 trillion compared to the end of 2023, as reported by the Gulf Statistical Centre.
The statistics show that total deposits in these banks amounted to $2.1 trillion by the end of 2024, reflecting a growth of 9.6% from the previous year. Deposits across all GCC countries rose during the same period.
In addition, the total value of loans extended by commercial banks in the GCC reached $2.1 trillion, marking a growth rate of 9.9% compared to 2023. Notably, loans granted to the private sector constituted 80.7% of total loans in the region.
Moreover, the percentage of non-performing loans (NPLs) declined in most GCC countries from 2020 to 2024, although the rate of decrease varied by country. The loan-to-deposit ratio also differed significantly among GCC nations, ranging from 125% to 66%.
Capital adequacy ratios across the GCC surpassed the minimum regulatory requirements established by Basel III, ranging between 32% and 17.8% in 2024. Basel III dictates a minimum capital adequacy ratio of 8% for banks.
Furthermore, net profits of commercial banks in the GCC have recorded substantial growth over the past four years, exceeding levels seen before the COVID-19 pandemic. — ONA
Special Analysis by Omanet | Navigate Oman’s Market
The 10% growth in total assets of GCC commercial banks signals a robust banking sector that could drive increased investment opportunities in Oman. Businesses should leverage the rising loan availability and decreasing non-performing loans to secure funding for expansion. Smart investors and entrepreneurs should consider aligning strategies with the banking sector’s growth, focusing on sectors that stand to benefit from increased financing and a burgeoning economy.
