Gulf loan growth to decline by 6pct

22 Sep 2016

(MENAFN) GCC banking sector is predicted to face continued slowdown in growth, deterioration of asset quality and reduced profitability this year.

Accordingly, lower economic growth means fewer chances for banks in the GCC, while loans growth will reach almost 6pct on average in 2016.

Moreover, lower oil prices will lead to lower liquidity, as deposits from government and their related entities account between 20 and 40 percent.

The decline in economic growth exposed the most vulnerable borrowers, basically subcontractors and small and midsize enterprises.

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