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Significance
Low global oil prices are weighing heavily on the profitability of the Gulf Cooperation Council (GCC) banking sector. Moody's Investors Service in March downgraded 26 GCC banks. This raises questions about the future of retail banking in the region.
Impacts
GCC governments' commitment to developing financial hubs will support retail banking.
However, lack of economic integration in the region will prevent regional Gulf banks from benefitting from economies of scale.
Fragmentation in the retail market means that each country will be dominated increasingly by their largest banks.
Keywords:
Middle East,
ME/NAF,
Egypt,
Jordan,
Kuwait,
Qatar,
Saudi Arabia,
United Arab Emirates,
economy,
industry,
banking,
retail,
internet
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2016
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