Moody's maintained its stable outlook on GCC’s Banking System as a result of improved operating conditions, strong lending and abundant capital.
Banks in UAE, Kuwait and Saudi Arabia will maintain their flexibility, but financial pressures will affect the banking sector in Oman and Bahrain, as Oil prices will remain below the required levels to balance the budgets of these Countries, Moody's said.
According to Moody’s Agency, current Oil prices will boost Government spending, and stimulus packages reflected in the stability of the financial performance of Banks. Lending growth is expected to reach 4% in Saudi Arabia in 2019 and between 6% and 7% in Kuwait, Oman and Bahrain.
The agency revealed a slowdown in Real Estate Market of Gulf Economies, such as United Arab Emirates, and expected to increase lending to the construction and contracting sectors by next year. It is also forecasted that non-performing loans would account for 3% of total loans at the end of 2019.
Source: (Al-Arabiya.net, Edited)
