GulfBase Live Support
Leave a message and our representative will contact you soon
19/04/2017 13:57 AST
The end of the commodities super-cycle has sparked a fall in the economic growth and prospects of the Gulf Cooperation Council region, implying both lower growth opportunities and deteriorating liquidity for its conventional and Islamic banking systems.
The weak economic environment will continue to dampen the financial performance of Islamic banks in Gulf Cooperation Council countries in 2017 and 2018, said S&P Global Ratings in a report published today, "GCC Islamic Banks Stay On Course Through Glum Operating Conditions."
The end of the commodities super-cycle has sparked a fall in the economic growth and prospects of the Gulf Cooperation Council region, implying both lower growth opportunities and deteriorating liquidity for its conventional and Islamic banking systems.
"We foresee further declines in GCC banks' asset quality and profitability indicators in 2017-2018," said S&P Global Ratings Head of Islamic Finance Dr. Mohamed Damak. "Still, we think that the banks have built sufficient buffers to make the overall impact on their financial profiles manageable."
"By global and regional standards, the Islamic banks in our sample continued to display strong asset quality indicators, profitability, and capitalization in 2016. We think that the current environment is creating an opportunity for the local regulators to start inching toward a more stringent application of Islamic finance's profit and loss sharing principle. We have seen a few attempts in the industry to move in this direction, through the issuance of Tier 1 and Tier 2 sukuk with loss absorption at the point of nonviability (generally defined as a breach of the local regulatory capital ratios). We expect such issuance will continue, albeit slowly, over the next two years," said Damak.
S&P Global Ratings
Ticker | Price | Volume |
---|---|---|
SABIC | 114.77 | 5,915,941 |
SAMBA | 26.98 | 1,138,683 |
STC | 83.41 | 257,644 |
DARALARKAN | 13.47 | 74,648,349 |
05/04/2018
Saudi Arabia's Public Investment Fund (PIF) has signed an agreement with Six Flags to develop and design an amusement park in Riyadh. Six Flags, the world’s leading international amusement park compa
Arab News
05/04/2018
In an exclusive interview with Arab News, Turki Mohammed Al-Shehri explains how an expanding renewables industry will boost employment as well as pave the way for a greener future.
A massiv
Arab News
05/04/2018
Dubai’s residential property market continued to soften in the first three months of this year, in line with analysts’ forecasts, with rental values recording a more pronounced fall than sales prices
The National
05/04/2018
Buoyed by a strong oil price of $70 per barrel, Saudi Arabia’s Tadawul shot up by over 6 per cent in March 2018, according to Kuwait Financial Centre’s (Markaz’s) recently released Monthly Markets Re
Times of Oman
05/04/2018
Qatar banks’ combined credit facilities to real estate sector rose by QR17bn to QR147.7bn in 2017. The banks’ credit to various sectors stood at QR911bn at the end of 2017, up from QR839bn recorded i
The Peninsula