A pan-GCC body urged the banking sector in the region to expand financing policies towards more domains and individuals and to shy away from focusing on specific categories.
As of 2015, the banking sector in the GCC region continues to deliver strong growth rates unabated by the plunge in oil prices, the Federation of GCC Chambers says in a new report.
However, the report warns that the region’s banks will be undertaking a major risk if they continue to focus on specific categories when extending loans and financing.
The massive financial reserves of the GCC states and their sovereign funds remain a major pillar supporting growth in the banking sector and providing it with a buffer against shocks, the report published by Al Ittihad indicates.
The report says that it is expected that the assets of the GCC sovereign funds and their foreign assets will increase from $1.45 trillion in 2013 to $1.5trn in 2014.
Furthermore, the fiscal surpluses of the six-nation group, which comprised 10.6 per cent of their aggregate GDP in 2013, are projected to make up 7.9 per cent of their GDPs in 2014 as a result of lower oil revenues.