The GCC banking sector maintained its resilience and stability despite volatile global economic conditions, with commercial bank assets surpassing $4 trillion and deposits reaching approximately $2.45 trillion by the end of June 2026.
Gulf Cooperation Council Secretary General Jasem Mohamed Albudaiwi said advanced regulatory and supervisory frameworks, strong liquidity levels and solid capital adequacy continued to underpin banking-sector stability across the six GCC economies.
The strength of those buffers has allowed Gulf banks to navigate rapid changes in the global economy while maintaining their role in supporting economic activity and financing development across GCC member states, Albudaiwi said.
His remarks came during the 87th Meeting of the Committee of Governors of Central Banks in the GCC States, held in Manama, Bahrain.
Deposits reach $2.45 trillion
Albudaiwi highlighted several indicators showing the scale and resilience of the region’s banking and monetary sectors.
Total deposits at commercial banks operating across the GCC reached approximately $2.45 trillion by the end of June 2026, representing growth of 6 percent compared with the end of 2025.
Commercial bank assets increased 3.9 percent over the same period, taking the total to more than $4 trillion.
The growth extends a strong expansion recorded during 2025.
Official GCC Secretariat data showed that commercial bank deposits stood at approximately $2.3 trillion at the end of 2025, after increasing 10.6 percent from the previous year.
Bank assets exceeded $3.9 trillion at the end of 2025, having increased 11.9 percent from 2024.
The latest June readings therefore indicate that both deposits and total banking assets continued to expand during the first half of 2026.
Foreign assets provide import buffer
GCC central banks also maintained substantial external buffers.
Net foreign assets held by Gulf central banks stood at approximately $829 billion at the end of June 2026, according to Albudaiwi.
Those assets provided the GCC with the equivalent of approximately 11 months of import cover, reinforcing the region’s capacity to withstand external financial and trade pressures.
Net foreign assets had stood at approximately $842 billion at the end of 2025, when they were 10.5 percent higher than a year earlier, according to GCC Secretariat figures.
The June figure was therefore below the end-2025 level, but the region continued to maintain a substantial external liquidity buffer.
GCC inflation remains contained
Inflation also remained relatively contained across the region.
Albudaiwi said the GCC-wide inflation rate stood at approximately 2.1 percent in May 2026, describing it as significantly below rates recorded across major global economic blocs.
Relatively stable inflation, combined with strong banking-sector liquidity and capital buffers, provides additional support for financial stability as Gulf economies navigate changing global interest-rate conditions and higher geopolitical uncertainty.
The resilience of regional banking systems also remains important as GCC governments pursue major infrastructure projects and economic diversification programs requiring substantial financing.
Global risks remain elevated
Albudaiwi warned that the global economy is undergoing rapid shifts driven by geopolitical and economic developments.
Those changes have been accompanied by market volatility and challenges affecting trade, investment and global supply chains, increasing the importance of maintaining economic and financial preparedness.
Because GCC economies are deeply integrated with the international economy, developments abroad can quickly affect regional financial markets, trade flows and investment conditions.
Albudaiwi said this close integration makes it necessary for GCC countries to continuously strengthen their readiness to protect economic, financial and monetary stability.
The IMF has similarly highlighted elevated global financial-stability risks arising from geopolitical conflict, inflation pressures and the possibility of tighter financial conditions.
At the same time, the Fund has described GCC banking systems as generally well-capitalized, liquid and profitable, with capital adequacy ratios remaining comfortably above regulatory requirements and nonperforming loans mostly low and well provisioned.
Governors deepen banking cooperation
The Manama meeting also focused on strengthening cooperation among GCC central banks and further integrating regional financial infrastructure.
The governors discussed monetary and financial developments across GCC countries, current and future initiatives under the joint central-bank work program and ways to enhance international cooperation and exchange expertise.
They also discussed a joint meeting between GCC central bank governors and the People’s Bank of China.
The committee reviewed recommendations covering payment systems, banking supervision and regulation, and efforts to combat money laundering and terrorist financing.
Governors also examined the latest developments in the agreement to link payment systems across GCC countries, an initiative aimed at making regional financial infrastructure more efficient and resilient.
