Muscat – Financial reserve assets of Gulf Cooperation Council (GCC) countries reached US$804.1bn by the end of the first half of 2024, reflecting a growth of 7.5% compared to the end of 2023. According to GCC Statistical Center data, the region’s reserves accounted for 4.9% of global reserves, placing the GCC fifth worldwide behind China, European Union, Japan and Switzerland.

This growth was primarily driven by higher oil revenues with Brent crude averaging around US$84 per barrel during the period. Oil remains the main source of revenue for the GCC, supported by rising asset prices in global markets.

The report also highlighted an 8.4% increase in the total assets of commercial banks across the GCC, which reached US$4.3tn by the end of June 2024. Foreign reserve assets include monetary gold, special drawing rights, reserves with International Monetary Fund, foreign currency holdings and deposits or securities investments abroad.

Bank deposits with commercial banks in the region also hit a record high, reaching US$2tn by mid-2024 – a 6.2% increase since the end of 2023 and a 9.9% rise compared to the same period in 2023.

Total loans issued by commercial banks across the GCC stood at approximately US$1.97tn by the end of June 2024. This marked an 8.3% increase compared to the first half of 2023 and a 5.1% rise since the end of 2023. Notably, 81.1% of these loans were extended to the private sector.

Money supply in GCC economies also expanded during the period. Narrow money supply, including demand deposits and cash in circulation outside banks, reached US$781bn, growing 2.7% since the end of 2023. Broad money supply, which also accounts for time and savings deposits, rose 5.8% to US$1.71tn.

The data showed that quasi-cash deposits, including time savings, increased 4.6%, now accounting for 54.1% of the total money supply. Demand deposits make up 39.4%, while cash in circulation outside banks comprises the remainder.