GCC Banks: 2H Wrap, Conflict Update

GCC Banks Conflict Update

GCC Banks: 2H Wrap, Conflict Update

Trung Tran: Senior Analyst, APAC Insurance and GCC Banks
Lim Ze Hao, CFA: Analyst, APAC Financials and GCC Banks
Pramod Shenoi: Head of Asia-Pacific Research, Head of Financials

17 September 2026

Download the Full Report to gain insights on:
  • How regional disruption is reshaping lending growth, fee income and funding conditions across GCC banks.
  • What mixed earnings signals reveal about margins, credit costs and underlying operating resilience.
  • Why logistics pressures and weaker confidence could increasingly affect UAE and Saudi banking performance.
  • Where liquidity, capital and external buffers may help absorb prolonged economic and market pressures.
  • Which asset quality, property exposure and funding indicators warrant closer attention across key markets.

Executive Summary

Banks continue navigating regional disruption while maintaining broadly resilient operating foundations. Uncertainty is weighing on confidence, lending activity and fee generation.

Regional logistics constraints are creating pressure across trade dependent sectors. However, infrastructure activity continues supporting selected areas of credit demand.

Credit conditions remain stable, although underlying asset quality signals require careful monitoring. Regulatory flexibility may obscure emerging stress within some borrower segments.

Liquidity and capital buffers provide meaningful protection against temporary economic shocks. Meanwhile, tighter funding conditions could challenge margins and balance sheet flexibility.

Investors should monitor funding composition, property exposure and borrower payment behaviour. Prolonged disruption could test the durability of current mitigation measures.

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