Gulf banks could see second wave of mergers after pandemic dust settles
The impact of the novel coronavirus on the global economy is growing and continues to shock the markets. S&P Global Ratings acknowledges a high degree of uncertainty about the rate of spread and peak of the COVID-19 outbreak. It comes as no surprise that the pandemic will halt the growth of GCC Islamic and conventional banks this year as they focus on preserving asset quality rather than business expansion. The delay of Expo 2020 for Dubai and potential cancelation of the pilgrimage season for Saudi Arabia, may result in a stronger impact on the regional economies. When the dust settles and the full effect of current conditions on banks’ financials is visible, there could be a second wave of mergers and acquisitions in the region.
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