Banking revenues for companies and investment in the Gulf are thrived, as lenders guarantee the economic transformation of the region.
The lenders are like what they hear from the Gulf region companies. Corporate and Investment services (CIB), which already represents more than half of the banking revenues in the Gulf Cooperation Council (GCC), expands, at an annual rate of 14 %, or more than twice the average regional average, according to a recent study. The lenders expect CIB revenues to reach $ 100 billion by 2030, as the region deepens its economic transformation.
“All countries of the Gulf Cooperation Council countries actively work to diversify their economies away from dependence on hydrocarbon, which will achieve great growth opportunities in all sectors,” says Wissam Haddad, CEO of Sico Capital, which is based in its headquarters, which develops products and services directed towards emerging technologies.
From the Kingdom of Saudi Arabia’s vision of 2030 to the digital and green aspirations of the United Arab Emirates, the Gulf states have begun billions of dollars in questions to reshape their economies. Countless initiatives in all areas are enhanced by the demand for complex financing solutions and banking services. “Since governments give priority to the infrastructure on a large scale, energy transition, and technology -led growth, financial institutions play an increasing strategic role,” says Abbas Hussein, the global head of infrastructure financing and development financing at Standard Chartard. “In this environment, financing needs have become more sophisticated. There is an increasing interest in integrated capital solutions that combine bank lending and wider access to capital.” CIB customer base in the Gulf is wide: from sovereign wealth funds and government -related entities to multinational companies entering the region, high -value individuals, institutional investors, listed companies, and small to medium to medium companies.
“In this environment, financing needs have become more advanced.”
Abbas Hussein, International Head of Infrastructure and Development Financing, Carted Standard
“Many are deeply involved in the implementation of the national transformation agenda while they are at the forefront of innovation, sustainability and infrastructure development,” Hussein notes. “What is increasingly participated in is the need for integrated and aspirational solutions that support complex multi -market strategies. This extends through debt financing, risk management, and strategic consulting, and often with a strong dimension across the border.”
Capital markets
With the development of the economies of the Gulf Cooperation Council states, as well as their capital markets, which extend to the issuance of debts, stock shows, and fusion operations, all of which contribute to the sharp rise in CIB revenues. In the first quarter of 2025, the integration and purchase activity increased by 66 %, reaching 46 billion dollars more than 225 transactions, according to ERNST & Young reports, as the United Arab Emirates represents more than half of all declared deals. The UAE and Successful General subscription markets have recorded a steady growth from 10 % to 15 % year on an annual basis during the past decade.
“The increase in public subscription activity, especially in the United Arab Emirates, creates great momentum,” says Karim Shedb, the group’s CEO, Investment Banking, in Al Ramz, a Dubai -based joint company. “The privatization of the government and the family business lists is expanding the investment universe and generating new opportunities for institutional customers and retail trade.” Although the United Arab Emirates and the Kingdom of Saudi Arabia dominate market activity, it is advised that investors monitor other countries including Oman and Bahrain, where the symbol was recently licensed.
With family-owned companies that make up a lot of the private sector-by 90 % in the United Arab Emirates and 60 % in the Kingdom of Saudi Arabia-family lists appear an important incentive for the capital market activity. The area is on the brink of the transfer of unprecedented wealth; By 2030, more than one trillion dollars of assets is expected to change, which opens rare opportunities for investors to become contributing to some crown jewels in the region.
A high -level example is the Emirati retail giant Majid Al Futaim. After the death of the founder without a will in 2021, years of internal conflicts may culminate in public subscription.
“The region is witnessing an increasing number of companies lists, strategic projects, the increasing preference for the most advanced and hybrid debt products, and constant unification,” especially in sectors such as hospitality and insurance. Many countries of the Gulf Cooperation Council countries have strong strategic services in the long run.
Attracting international banks
International financial institutions intensify their presence in the Gulf Cooperation Council. BNY Mellon recently established its regional headquarters in RIYADH, after Goldman Sachs and Citigroup, which was licensed last year.
The US SQUARE CAPITAL has committed to a billion dollars for Saudi infrastructure projects, while AZURA, a wealth management company in Monaco, which oversees 5 billion dollars in assets, is its operations to Abu Dhabi. UBS is also scheduled to open an office in the capital of the United Arab Emirates, and JPMorgan plans to employ more than 100 additional employees to enhance its great presence in the Middle East.
“This is healthy and a reflection of the strong basics and the future capabilities of local markets,” “We consider this development as a natural part of mature financial Xcoms that continue to develop in both the scope and development.”
Regional banks maintain major advantages, including the customer’s deep relations, intimate knowledge of local organizational environments, and cultural proximity in areas such as Islamic finance, but global participants bring extensive budgets and is often more advanced digital infrastructure.
Although the presence of global banks intensifies competition, it “also raises industry standards, provides best global practices, attracts deeper capital gatherings to the region,” as mourning notes. He adds: “In many ways, the international interest completes our efforts,” he adds, “
However, success for local players will require more than just local familiarity and competitive products.
“Success is really in this environment, it is no longer enough to be just a source of liquidity,” Hussein says, pointing to his customers ‘interest in sustainable financing, digital transformation, and the structure of the capital in the long run: “Success is really in this environment, it is no longer enough to be just a source of liquidity,” noting that its customers’ interest in sustainable financing, digital transformation and capital structure in the long term. “What distinguishes institutions is the ability to provide comprehensive solutions on the basis of local understanding and global access. Deep relations, consistent presence, and a busy record in delivery is very important. What is the value of customers is a strategic partner that can support them through their full life cycle, from consulting to implementation and long -term financing.”
Next challenges
Despite the strong momentum, the CIB sector in the Gulf Cooperation Council faces the great opposite winds. Geopolitical tensions, the fluctuation of oil prices, new corporate tax systems, high interest rates of capital, reduce the investor’s appetite and influence the timelines for the implementation of deals.
“Jeetary tensions are broader and global economic transformations, such as inflationary pressures and interest rate courses, continuing to form investor morale throughout the region,” says Shoeib. “With the presence of the currencies of the Gulf Cooperation Council states related to US dollars, the movement of total economy is required for this agility and the steady focus on creating value in the long term.”
Another structural challenge relates to the availability of qualified human capital and the ability of the sector to keep pace with rapid technological innovation, including obstetric artificial intelligence. Hussein says: “The future of banking services for companies and investment in the Gulf Cooperation Council will be formed by those who can align innovation with implementation and combine global communication with a strong understanding of regional ambition.”
“The financial institutions that can work through the judicial states, link global capital to local opportunities, and provide clarity in a complex scene in a good position to lead.” At the same time, the increasing capital needs in the Gulf Cooperation Council are pressure on liquidity. In most countries, the demand for credit exceeds the growth of deposits, leading to the leadership of the loan ratios to the deposits to the historical highlands. In the Kingdom of Saudi Arabia, the percentage exceeds 100 %, as lending is expected to grow in the private sector by 12 % to 14 % annually, while deposits are expected to increase by 8 % to only 10 %. This dynamic creates both opportunities and risks for regional lenders.
The recent McKinsey study concluded that “CIBS must overcome the lack of financing through the loan rates to the standard discovery-which exceed or exceed 100 % in half of the countries of the Gulf Cooperation Council-which creates possible liquidity restrictions.” “In addition, low interest rates, with more discounts this year, put pressure on the returns, given that approximately 85 % of the income of the banks of the Gulf Cooperation Council states depend on interest.”
To maintain growth and profitability, the Gulf -based banks will need adaptation. McKinsey says, “Success requires consider adjustments that may help them to capture opportunities, stay competitive, and maintain the last momentum,” which indicates that local players focus on improving cost efficiency, diversifying their loan portfolios, deepening their prospects in capital and trade markets, and expanding banking services for foreign exchange services and services.
