In a Middle East experiencing a resurgence of democracy, and for banks in the region too, the past year was the best of times and the worst of times. On the one hand there were the markets most adversely affected by the Arab Spring, such as Egypt, Bahrain and, most drastically, Syria. In these countries, the regional political turmoil is having a negative effect on banking-sector growth and stability, at least in the short term. On the other hand, there are those markets, such as Saudi Arabia and Oman, where higher government spending – in part prompted by regional political pressures – sparked renewed growth in the banking sector. |
