GCC Secretary General: Gulf Banking Sector Maintains Resilience Despite Current Conditions

Manama, Sept 14 (KUNA) -- Secretary-General of the Gulf Cooperation Council (GCC) Jasem Al-Budaiwi stated that the Gulf banking sector has maintained its resilience and stability despite current conditions, supported by advanced supervisory and regulatory frameworks, healthy liquidity levels, and adequate capital adequacy. This has strengthened its capacity to keep pace with economic changes and continue its role in supporting economic activity and financing development in GCC member states.

This was said in Al-Budaiwi’s speech today, Monday, during the 87th meeting of the Committee of Central Bank Governors of the GCC states, hosted by the Bahraini capital Manama and chaired by Khalid Humaidan, Governor of the Central Bank of Bahrain, with the attendance of the central bank governors of the GCC countries.

He added that the global economic landscape is witnessing rapid transformations amid successive geopolitical and economic developments, accompanied by market volatility and challenges in trade, investment, and supply chains.

Given the close ties between the economies of the GCC states and the global economy, these changes underscore the importance of continuing to enhance preparedness and the ability to address various challenges, thereby preserving economic, financial, and monetary stability.

He affirmed that the GCC states have demonstrated their ability to confront various crises and exceptional circumstances with efficiency and competence, maintaining the resilience of their economies based on effective economic, financial, and monetary policies, strong institutions, and advanced frameworks for coordination and joint cooperation.

Al-Budaiwi pointed out that GCC coordination has contributed to enhancing the member states’ capacity to deal with changes and challenges, confirming the importance of continuing and deepening joint GCC efforts, particularly in monetary and banking sectors, to strengthen financial stability, support banking sector efficiency, and consolidate the ability of the GCC economies to face changes and external shocks.

He referred to several indicators reflecting the resilience of the banking sector and monetary stability in the GCC states, noting that total deposits at commercial banks operating in the GCC rose by 6 percent by the end of June 2026 compared to the end of 2025, reaching approximately 2.45 trillion US dollars.

Al-Budaiwi added that total assets of commercial banks operating in the GCC exceeded 4 trillion US dollars by the end of June 2026, an increase of 3.9 percent compared to the end of 2025. Meanwhile, the volume of net foreign assets held by GCC central banks reached approximately 82.9 billion US dollars by the end of June 2026, sufficient to cover 11 months of GCC imports.

He noted that the GCC states maintained stable inflation levels despite current economic challenges, with the GCC inflation rate reaching 2.1 percent in May 2026, which is lower than the averages of major economic blocs. These indicators confirm the resilience of the GCC economies and the success of the GCC economic integration process, enhancing their competitive position at both the regional and international levels. (End) K.N.A