{"id":5014,"date":"2025-10-02T15:17:00","date_gmt":"2025-10-02T11:17:00","guid":{"rendered":"https:\/\/omanet.om\/en\/news\/business\/gcc-banking-sector-shows-strong-resilience\/"},"modified":"2025-10-02T23:49:52","modified_gmt":"2025-10-02T19:49:52","slug":"gcc-banking-sector-shows-strong-resilience","status":"publish","type":"post","link":"https:\/\/omanet.om\/en\/news\/business\/gcc-banking-sector-shows-strong-resilience\/","title":{"rendered":"GCC Banking Sector Resilience: Key Insights from Strong H1 Performance for Investors and Entrepreneurs"},"content":{"rendered":"<style>\r\n@keyframes hitv3sog-fadein{from{opacity:0;transform:translateY(14px)}to{opacity:1;transform:translateY(0)}}\r\n@keyframes hitv3sog-slideup{from{opacity:0;transform:translateY(20px)}to{opacity:1;transform:translateY(0)}}\r\n@keyframes hitv3sog-pulse{0%,100%{box-shadow:0 0 14px #dc262688}50%{box-shadow:0 0 32px #dc2626,0 0 60px #dc262655}}\r\n@keyframes hitv3sog-shimmer{0%,100%{opacity:0.3;transform:scaleX(0.4)}50%{opacity:1;transform:scaleX(1)}}\r\n@keyframes hitv3sog-glow{0%,100%{opacity:0.6}50%{opacity:1}}\r\n@keyframes hitv3sog-badge{from{opacity:0;transform:scale(0.8)}to{opacity:1;transform:scale(1)}}\r\n<\/style><style>\r\n.hitv3sogw{container-type:inline-size;width:100%;max-width:970px;margin:0 auto;box-sizing:border-box}\r\n.hitv3soga{display:flex;flex-direction:row;align-items:center;justify-content:space-between;width:100%;box-sizing:border-box;text-decoration:none;color:#fff;font-family:-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,system-ui,sans-serif;position:relative;overflow:hidden;cursor:pointer;background:linear-gradient(135deg,#111118 0%,#080808 100%);border:1.5px solid rgba(255,255,255,0.08);border-radius:14px;gap:20px;padding:20px 40px;transition:border-color .2s}\r\n.hitv3soga:hover{border-color:#dc262688}\r\n.hitv3sogg1{position:absolute;inset:0;background:radial-gradient(ellipse at 50% 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.15s}\r\n.hitv3sogbtn:hover{filter:brightness(1.15);transform:scale(1.04)}\r\n.hitv3sogbr{font-size:9px;color:rgba(255,255,255,.18);text-align:center;margin-top:5px;letter-spacing:.1em;text-transform:uppercase}\r\n\/* \u2500\u2500 Compact horizontal: 380\u2013599px (like 320\u00d7100) \u2500\u2500 *\/\r\n@container (min-width:380px) and (max-width:599px){\r\n  .hitv3soga{padding:12px 22px;gap:12px;min-height:100px}\r\n  .hitv3sogh{font-size:16px}\r\n  .hitv3sogs{display:none}\r\n  .hitv3sogbtn{padding:7px 16px;font-size:11px}\r\n}\r\n\/* \u2500\u2500 Mobile\/card: < 380px (like 300\u00d7250) \u2500\u2500 *\/\r\n@container (max-width:379px){\r\n  .hitv3soga{flex-direction:column;align-items:center;justify-content:space-between;min-height:260px;padding:22px 22px;gap:10px}\r\n  .hitv3sogc{align-items:center;text-align:center}\r\n  .hitv3sogh{font-size:22px;white-space:normal}\r\n  .hitv3sogs{font-size:11px;white-space:normal}\r\n  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solid rgba(255,255,255,0.18);backdrop-filter:blur(8px);-webkit-backdrop-filter:blur(8px);border-radius:20px;padding:3px 10px 3px 7px;margin-bottom:clamp(5px,0.6vw,9px);animation:hitv3sog-badge 0.5s ease both;\"><span style=\"display:inline-block;width:6px;height:6px;border-radius:50%;background:#dc2626;flex-shrink:0;\"><\/span><span style=\"font-size:clamp(8px,0.9vw,10px);font-weight:700;letter-spacing:0.07em;color:rgba(255,255,255,0.88);text-transform:uppercase;white-space:nowrap;\">EXCLUSIVE OMAN OFFER<\/span><\/div>\r\n    <div class=\"hitv3sogh\" style=\"animation:hitv3sog-slideup 0.7s ease both;animation-delay:0.15s;\">Websites For <span style=\"color:#dc2626;\">Omani Businesses.<\/span><\/div>\r\n    <div class=\"hitv3sogs\" style=\"animation:hitv3sog-slideup 0.7s ease both;animation-delay:0.3s;\">Empower your brand with custom digital solutions designed for high conversion and market dominance.<\/div>\r\n    <div class=\"hitv3sogbl\"><div class=\"hitv3sogbi\"><span style=\"display:inline-block;width:5px;height:5px;border-radius:50%;background:#dc2626;flex-shrink:0;margin-right:7px;\"><\/span><span>Responsive designs built for growth<\/span><\/div><div class=\"hitv3sogbi\"><span style=\"display:inline-block;width:5px;height:5px;border-radius:50%;background:#dc2626;flex-shrink:0;margin-right:7px;\"><\/span><span>Fast loading with smart automation<\/span><\/div><\/div>\r\n  <\/div>\r\n  \r\n  <div class=\"hitv3sogct\">\r\n    <button class=\"hitv3sogbtn\" style=\"animation:hitv3sog-pulse 2.5s ease-in-out infinite;animation-delay:1s;\">Build Your Free Website <span style=\"opacity:.9;\">\u2192<\/span><\/button>\r\n    <div class=\"hitv3sogbr\">hit.land<\/div>\r\n  <\/div>\r\n<\/a>\r\n<\/div>\n<p><\/p>\n<p><strong>MUSCAT<\/strong>: Banks throughout the Gulf region showed robust performance in the first half of 2025, with improvements in profitability, asset quality, and capitalization. According to EY&#8217;s latest <strong>GCC Banking Sector Outlook for H1 2025<\/strong>, the sector&#8217;s resilience is notable, despite the onset of monetary policy easing and tighter liquidity affecting margins.<\/p>\n<p>The GCC economy is anticipated to grow by <strong>3% in 2025<\/strong> and further rise to <strong>4.1% in 2026<\/strong>, bolstered by investments in infrastructure, diversification efforts, and a dynamic private sector. Oil GDP is projected to recover modestly by <strong>1.7% in 2025<\/strong> before experiencing a growth surge of <strong>5.4% in 2026<\/strong>. Non-oil sectors are expected to drive this growth through ongoing reforms and foreign investment, creating a supportive environment for banking activities across the region.<\/p>\n<p>Mayur Pau, EY&#8217;s MENA Financial Services Leader, stated that the first half of 2025 underscores the <strong>resilience of the GCC banking sector<\/strong>. With strong capital buffers, improved balance sheets, and heightened efficiency, banks are well-equipped to tackle near-term challenges and seize long-term opportunities. As digital adoption and sustainability initiatives progress, the sector will continue to play a key role in the region&#8217;s economic transformation.<\/p>\n<p>The average return on equity for the GCC banking industry reached <strong>13.2%<\/strong>, driven by increased non-interest income and better cost efficiency. The cost-to-income ratio improved to <strong>32.0%<\/strong>, reflecting sustained advantages from operational optimization and digital transformation.<\/p>\n<p>Asset quality has also shown improvement, with non-performing loans decreasing to <strong>2.4%<\/strong>, down from <strong>2.8%<\/strong> a year earlier, while coverage ratios remained above <strong>140%<\/strong>. Capitalization continues to be a fundamental strength, with an average Tier 1 ratio of <strong>17.5%<\/strong> and a capital adequacy ratio of <strong>18.9%<\/strong>, enhancing the sector&#8217;s ability to absorb external shocks.<\/p>\n<p>Nonetheless, GCC banks are adapting to a changing landscape. Net interest margins have narrowed to <strong>2.6%<\/strong>, down from <strong>2.8%<\/strong> in H1 2024, reflecting the impact of rate cuts across the region, with additional reductions anticipated following September 2025 adjustments. Liquidity conditions have also tightened, with the loan-to-deposit ratio increasing to <strong>94.1%<\/strong>, up from <strong>90.7%<\/strong> the previous year. This situation highlights the critical need for efficiency improvements, funding diversification, and revenue growth beyond interest income.<\/p>\n<p>The report emphasizes that banks are evolving by integrating sustainability, accelerating digital transformation, and preparing for changing regulatory requirements. The adoption of AI-driven banking, improved customer-facing digital solutions, and compliance with frameworks such as <strong>Basel III<\/strong> and <strong>Anti-Money Laundering and Countering the Financing of Terrorism (AML\/CFT)<\/strong> are ongoing priorities. These initiatives are reshaping business models, positioning the sector for long-term competitiveness.<\/p>\n<p><style>\r\n@keyframes hitl8gak-fadein{from{opacity:0;transform:translateY(14px)}to{opacity:1;transform:translateY(0)}}\r\n@keyframes hitl8gak-slideup{from{opacity:0;transform:translateY(20px)}to{opacity:1;transform:translateY(0)}}\r\n@keyframes hitl8gak-pulse{0%,100%{box-shadow:0 0 14px #dc262688}50%{box-shadow:0 0 32px #dc2626,0 0 60px #dc262655}}\r\n@keyframes hitl8gak-shimmer{0%,100%{opacity:0.3;transform:scaleX(0.4)}50%{opacity:1;transform:scaleX(1)}}\r\n@keyframes hitl8gak-glow{0%,100%{opacity:0.6}50%{opacity:1}}\r\n@keyframes hitl8gak-badge{from{opacity:0;transform:scale(0.8)}to{opacity:1;transform:scale(1)}}\r\n<\/style><style>\r\n.hitl8gakw{container-type:inline-size;width:100%;max-width:970px;margin:0 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solid rgba(255,255,255,0.18);backdrop-filter:blur(8px);-webkit-backdrop-filter:blur(8px);border-radius:20px;padding:3px 10px 3px 7px;margin-bottom:clamp(5px,0.6vw,9px);animation:hitl8gak-badge 0.5s ease both;\"><span style=\"display:inline-block;width:6px;height:6px;border-radius:50%;background:#dc2626;flex-shrink:0;\"><\/span><span style=\"font-size:clamp(8px,0.9vw,10px);font-weight:700;letter-spacing:0.07em;color:rgba(255,255,255,0.88);text-transform:uppercase;white-space:nowrap;\">EXCLUSIVE OFFER<\/span><\/div>\r\n    <div class=\"hitl8gakh\" style=\"animation:hitl8gak-slideup 0.7s ease both;animation-delay:0.15s;\">Your Website <span style=\"color:#dc2626;\">Should Sell.<\/span><\/div>\r\n    <div class=\"hitl8gaks\" style=\"animation:hitl8gak-slideup 0.7s ease both;animation-delay:0.3s;\">Custom-built websites with smart automation & AI-powered features.<\/div>\r\n    <div class=\"hitl8gakbl\"><div class=\"hitl8gakbi\"><span style=\"display:inline-block;width:5px;height:5px;border-radius:50%;background:#dc2626;flex-shrink:0;margin-right:7px;\"><\/span><span>SEO-optimized & lightning fast<\/span><\/div><div class=\"hitl8gakbi\"><span style=\"display:inline-block;width:5px;height:5px;border-radius:50%;background:#dc2626;flex-shrink:0;margin-right:7px;\"><\/span><span>Smart features built for your business<\/span><\/div><\/div>\r\n  <\/div>\r\n  \r\n  <div class=\"hitl8gakct\">\r\n    <button class=\"hitl8gakbtn\" style=\"animation:hitl8gak-pulse 2.5s ease-in-out infinite;animation-delay:1s;\">Get Free Consultation <span style=\"opacity:.9;\">\u2192<\/span><\/button>\r\n    <div class=\"hitl8gakbr\">hit.land<\/div>\r\n  <\/div>\r\n<\/a>\r\n<\/div><br \/>\n<\/p>\n<p><strong>Special Analysis by Omanet | Navigate Oman&#8217;s Market<\/strong><\/p>\n<p>The recent performance of the <strong>GCC banking sector, with an average return on equity of 13.2%<\/strong>, signals robust opportunities for businesses in Oman, particularly in leveraging <strong>digital transformation<\/strong> and sustainability efforts. However, the tightening liquidity and shifting net interest margins pose <strong>risks<\/strong> that require investors to reassess their funding strategies. Smart investors should focus on <strong>diversification<\/strong> and <strong>innovative revenue streams<\/strong>, as these will be key in navigating the evolving economic landscape and capitalizing on the region&#8217;s growth potential.<\/p>\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Banks in the Gulf region showed strong performance in H1 2025, with improved profitability and asset quality, despite tighter liquidity. The GCC economy is projected to grow by 3%, supported by investments and reforms. As digital transformation continues, the banking sector adapts to evolving regulatory landscapes.<\/p>\n","protected":false},"author":2,"featured_media":5015,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[114],"tags":[1253,252,423],"class_list":["post-5014","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-banking","tag-economic-growth","tag-gcc"],"jetpack_featured_media_url":"https:\/\/omanet.om\/wp-content\/uploads\/2025\/10\/3146742.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/posts\/5014","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/comments?post=5014"}],"version-history":[{"count":1,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/posts\/5014\/revisions"}],"predecessor-version":[{"id":5016,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/posts\/5014\/revisions\/5016"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/media\/5015"}],"wp:attachment":[{"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/media?parent=5014"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/categories?post=5014"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/tags?post=5014"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}