S&P Says Gulf Banks Face Long Climb to Recovery After 2020 Shock

Lenders in the Gulf Cooperation Council are set to have long-lasting negative effects from last year’s pandemic-driven downturn and lower oil prices, according to S&P Global Ratings.

“Despite the recent rally in oil prices and brighter near-term outlook for economic recovery, the operating performance of GCC banks will continue to be constrained by the protracted recovery in key economic sectors and low interest rates,” S&P analysts including Mohamed Damak wrote in a report Sunday.