Standard & Poor's announced that raising interest rates will reduce the credit growth of Gulf banks, but the performance of Saudi and UAE banks will be more resilient.
The credit rating firm predicted that higher interest rates will reduce credit growth at Kuwaiti banks to about 3 percent from about 8 percent in 2022. It will also ease the growth of total lending by Saudi banks to about 10 percent in 2023, from 14 percent in 2022.
The economy will benefit from continued strong non-oil GDP growth, which will somewhat mitigate the negative impact of higher interest rates on credit growth.
Source (Al-Arabiya.net Website, Edited)
