Doha – Mubasher: The Qatari and Saudi banks are better placed than Gulf Cooperation Council (GCC) peers to cope with an eventual deterioration in asset quality brought about by a prolonged period of weak oil prices, says Fitch Ratings.
The rating agency added that the GDP of the GCC will continue to grow in 2017 and 2018, with expectations of a gradual rise in oil prices to $55 a barrel by 2018.
In its GCC banks assets resilient to oil shock report, Fitch noted that both Saudi Arabia and Qatar would continue to offer the soundest lending opportunities under that scenario, suggesting impaired loan ratios should increase more slowly in these countries than their peers.
The agency said that it does no to expect any significant cuts to government spending in Qatar, with the numerous government-sponsored projects continue to provide profitable, low-risk, lending opportunities for banks.
The report pinpointed that business opportunities are strongest in KSA and the UAE, reflecting the countries' larger and more diversified economies.
