Commercial banks in Gulf Cooperation Council (GCC) countries closed 2024 with notable gains across all financial indicators. Backed by robust deposits, rising loan volumes, and sustained capital adequacy, the sector’s total assets reached $3.5 trillion. These figures, released by the Statistical Centre for the Cooperation Council for the Arab Countries of the Gulf (GCC-Stat), reflect a resilient post-pandemic recovery and underline the growing strength of banking systems across the six GCC nations.
Assets, deposits, and lending see double-digit gains
The commercial banking sector in the GCC recorded solid year-on-year growth in 2024, driven by expansion in assets, deposits, and lending activities:
- Total Bank Assets:
As of the end of 2024, the total assets of commercial banks operating across the six GCC countries stood at approximately $3.5 trillion, marking a 10% increase compared to year-end 2023. - Total Deposits:
Deposits at commercial banks grew to around $2.1 trillion by end-2024, representing a 9.6% rise from 2023. This increase was observed across all GCC countries, indicating broad-based depositor confidence. - Loan Portfolio:
The total outstanding balance of loans issued by GCC commercial banks also hit approximately $2.1 trillion by end-2024, a 9.9% increase compared to the previous year. - Private Sector Lending:
A substantial portion, about 80.7% of total loans, was directed to the private sector, underlining the sector’s importance in regional economic activity.
Lending health and capital buffers remain strong
While the volume of lending rose, the sector’s risk indicators and regulatory compliance remained stable and strong:
- Non-Performing Loans (NPLs):
The ratio of non-performing loans to total loans continued its downward trend between 2020 and 2024 in most GCC countries, although levels varied between nations. - Loan-to-Deposit Ratios (LDRs):
Loan-to-deposit ratios differed significantly across member states, ranging from 66% to 125%, reflecting varying lending appetites and liquidity management strategies. - Capital Adequacy Ratios (CARs):
All GCC banking systems exceeded Basel III minimum capital requirements in 2024. The Basel III minimum CAR is 8%, whereas GCC countries reported capital adequacy ratios ranging between:
Country (Unnamed) Capital Adequacy Ratio (2024) Highest 32% Lowest 17.8%
These high CARs suggest that banks in the region remain well-capitalized and prepared to absorb potential losses, ensuring system-wide financial stability. Another standout performance metric in 2024 was net profitability, which showed a clear upward trend:
- Over the last four years, the net profits of commercial banks across the GCC have shown consistent growth, exceeding pre-COVID-19 levels.
- This growth reflects both an increase in core banking activities (such as lending and deposit mobilization) and effective cost and risk management practices adopted by banks post-pandemic.
The data and insights are compiled and published by the Statistical Centre for the Cooperation Council for the Arab Countries of the Gulf (GCC-Stat) — the official statistical body of the six GCC nations: United Arab Emirates, Bahrain, Saudi Arabia, Oman, Qatar, and Kuwait.Founded under the GCC’s broader mission for institutional coordination across economic, social, political, defense, and security domains, GCC-Stat provides essential data to monitor regional progress.The organization compiles and analyzes statistics covering a broad spectrum: economic, social, demographic, agricultural, environmental, energy, tourism, and development indicators. Its work is divided across four core divisions, Economic Statistics; Demography & Social Statistics; Research & Development Indicators; and Geographical, Environmental, Tourism & Energy Statistics.GCC-Stat’s mandate is comprehensive, involving the collection, classification, storage, and analysis of data sourced from national statistics bodies within member countries. This centralized function enables consistent monitoring and evaluation, ensuring the GCC’s growth remains balanced and coordinated across all sectors.
