Gulf banks are well-positioned to weather the economic fallout from rising global trade tensions according to a new report by S&P Global Ratings.
Despite minimal direct US exports, GCC countries could face indirect pressures such as market volatility and increased investor risk aversion. S&P highlighted the region’s strong banking fundamentals including solid liquidity, healthy profitability, and robust capital buffers as key factors supporting stability. GCC banks’ conservative approach to asset management, with 20–25% of assets held in high-quality fixed-income portfolios, offers additional protection from market shocks.
S&P concluded that GCC banks are likely to remain resilient even in worst-case scenarios.
Gulf Economist Staff Writer