In a new report, “Moody's Investors Services” gave a stable outlook to GCC banks, showing that supportive energy prices and government diversification agendas will continue to support strong growth in GCC economies.
Trust between companies, consumers, and investors in non-oil sectors, which account for the bulk of banks' lending, will remain strong. Diversification agendas and increased spending in some GCC countries have helped improve operating conditions, while tourism, trade, real estate, and construction will continue to benefit the most.
GCC banks have historically maintained strong capitalization, with high loan loss reserves supporting banks' ability to absorb losses.
Source (Al-Khaleej Emirati Newspaper, Edited)
