Bahrain: diversifying away from oil
Saudi Arabia and Kuwait: closed-economy cousins
Oil lows hit UAE, Oman and Qatar
Results for the top 20 Arab banks in 1998 were mixed and clearly reflect both regional and general emerging-market difficulties. The operating environment throughout the Gulf Cooperation Council (GCC) states - Bahrain, Saudi Arabia, Kuwait, Oman, Qatar, and the United Arab Emirates - was difficult on account of the weak oil price. Despite the recent price increase providing some respite, growth will remain subdued this year in most Middle East countries although slightly more robust in Egypt, Morocco and Tunisia.
The subdued growth prospects may precipitate banks to promote strategic corporate activity through consolidation and alliances. Already there has been action in this respect, most notably the proposed merger of Saudi American Bank (Samba) and United Saudi Bank, which, if successful, will create the fourth-largest bank in the Arab world.
Further intra-country...
