After being hit by the double whammy of Covid-19 and a collapse in oil revenues in 2020, Arab banks turned a corner in 2021. The reopening of economies across the region, coupled with a rebound in the price of oil and a recovery in global trade, eased pressure on lenders’ balance sheets across the region.
The Banker’s Top 100 Arab Banks ranking for 2022 paints a picture of a sector in recovery, albeit one that has yet to reach several pre-pandemic markers. Tier 1 capital growth for the region’s largest lenders rose by 8.8% in 2021, compared to a rise of 7.4% in 2020, but has been held back by slower growth in the key markets of Egypt and the UAE. Assets grew by 11.1% in 2021 compared with 9.3% the previous year.