No 42



GCC Banks Record Healthy Profits In 2001 But Challenges Remain

The banks of the GCC on the whole enjoyed a profitable year in 2001 and the trend continues in 2002. Despite the beginnings of the global recession and the fall in oil prices from the highs of the previous year, the GCC economies grew at around 2.5%-5%, helping to bolster the sectors performance. Banks in the Gulf continue to make attractive interest rate spreads on the low interest-bearing accounts...