Expectations for Banks’ Lending Growth, in the Kingdom, other Gulf countries, revealed by S&P

Expectations for the growth of banks’ lending, in Saudi Arabia, in addition to other Gulf countries, revealed by a Standard & Poor’s report, pointing out that the rise, would be supported by the growth of lending, in the real estate and residential sector.

Impact of the expected rise in interest rates, during the current year, will positively reflected on the rise in the growth of profits of Gulf-wide banks, especially, in Oman and Kuwait, the report showed.

Region’s banks would benefit from raising US interest rates, the report indicated, explaining that if the interest rate to be raised by 100 points, the profits of Omani and Kuwaiti banks would increase by 30% and 28%, respectively.

In general, the profits of the region’s banks will rise by an average of 14% year-on-year, the report concluded.