The overall outlook in the GCC economies remains positive, with growth rates averaging around 5.3% in 2011 and 4.9% in 2012. Depending on the levels of oil prices and the continuation of expansive fiscal standing, economic growth might maintain its current momentum or may taper off a little. As the fourth quarter of the year unfolds, the GCC banking system remains robust and largely stable, backed up by large deposits and a relatively weak credit growth. The 2008 financial crisis, coupled with the sovereign debt crisis and the Arab spring proved that GCC banks are generally resilient and well?capitalized helped by ample regional liquidity, fairly adequate regulatory supervision from the region?s central banks on top of government expansive fiscal measures and support. The downside is however in the slow expansion of credit growth by GCC banks.








