Bahrain's Manufacturing Sector Leads in Loan Acquisition

TDT | Manama

Email: mail@newsofbahrain.com

New statistics from the Gulf Cooperation Council (GCC) Statistical Centre reveal that the manufacturing sector in Bahrain received the highest percentage of loans in the first half of 2024, accounting for 25% of total loans disbursed, reflecting the Kingdom’s commitment to industrial diversification and growth, and the strong performance of its manufacturing sector.  This, however, contrasts with the overall GCC trend.

The data shows that in Qatar, the "other services" sector received the largest share of loans (48%), while in Saudi Arabia, individual loans constituted the largest portion (47%). This figure was 37% in Oman, 36.3% in Kuwait, and 26.3% in the UAE, primarily for household consumption.

Across most GCC countries (excluding Oman), real estate activity secured the second-largest share of loans and credit facilities.  This sector accounted for 19.2% of total loans in Qatar, 19.1% in Kuwait, 16.3% in Bahrain, 12.5% in the UAE, and 10.4% in Saudi Arabia.  Oman allocated 8.5% of its loans to the "other services" sector.

In Bahrain, wholesale and retail trade secured the third-largest share of loans at 14.5%.  The UAE saw 11.8% allocated to financial and insurance activities, a similar figure to Kuwait (11.6%).  Qatar directed 11% of its loans to transportation and storage, while Oman allocated 8% to manufacturing and Saudi Arabia 7.1% to wholesale and retail trade.

The report highlights Bahrain's leading position in capital adequacy ratio among GCC countries, reaching 23.8% in June 2024.  Saudi Arabia followed at 19.4%, then Qatar (18.6%), the UAE (18.3%), Kuwait (18.1%), and Oman (17.8%).  All GCC countries exceeded the regulatory minimum capital adequacy ratio of 8.5%.

Bahrain also ranked second in net profits among GCC commercial banks, achieving 14.5% in the period. The UAE held the highest share with 55.3%, followed by Saudi Arabia (11.7%), Qatar (9.8%), and Oman (7.7%).

Finally, Bahrain had the lowest loan-to-deposit ratio in the GCC at 60.5%, compared to Qatar's leading 124.9%, Oman (104.7%), Saudi Arabia (79.3%), and the UAE (78%).  Data for Kuwait was unavailable.