RIYADH: Gulf Cooperation Council banks face limited short-term credit risks from the regional conflict following US and Israeli strikes on Iran, supported by strong financial buffers and sovereign backing.
Analysts and rating agencies say the region’s banking system remains fundamentally resilient despite rising geopolitical tensions.
US and Israeli strikes on Iran on Feb. 28 have raised concerns about potential disruptions to energy markets, regional trade flows and broader financial stability across the Middle East.
“The banking system here in the GCC is resilient and it has been trusted by a lot of international and local businesses,” said Raed Al-Khedr, chief market analyst at fintech firm Equiti Group.
He added that the current situation stems from geopolitical tensions rather than financial or regulatory weaknesses in the region’s banking sector.
