BMI: Gulf banks show strong resilience during conflict

Reports have shown that the banking sector in the Gulf countries demonstrated greater resilience than expected during the Iran war, as capital flows did not face widespread pressure or significant deposit withdrawals, thanks to sovereign support and liquidity packages. Although deposit growth slowed, financing conditions remained stable, with notable improvements in managed assets. However, loan growth is expected to slow in 2026 due to declining non-oil activity and increased lending standards. The sector remains sensitive to external changes, with continued cautiousness in the markets.

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