OMAN: The GCC foreign reserves reached $804.1 billion by mid-2024, marking a 7.5% growth from the previous year, according to GCC-Stat. This places the region as the fifth-largest holder of international reserves, following China, the EU, Japan, and Switzerland.
These GCC foreign reserves, which account for 4.9% of global foreign assets, saw growth due to higher oil revenues and rising financial asset prices. Brent crude averaged $84 per barrel in the first half of 2024, significantly contributing to the region’s financial strength.
The report also highlighted $4.3 trillion in commercial bank assets, an 8.4% increase from late 2023. Additionally, bank deposits hit a record $2 trillion, the highest in Gulf banking history, growing 6.2% year-on-year.
Foreign reserves include gold, special drawing rights, IMF reserves, and foreign currency investments. These assets play a crucial role in maintaining currency stability, absorbing economic shocks, and ensuring import coverage. Notably, GCC foreign reserves can sustain imports for 15 months, three times the IMF’s recommended 3–6 months.
Lending activity also surged, with GCC commercial banks providing $1.97 trillion in loans, an 8.3% increase compared to mid-2023. Loans to the private sector accounted for 81.1% of total lending.
Meanwhile, money supply expanded, supporting economic growth. Narrow money, covering cash in circulation and demand deposits, reached $781 billion, up 2.7% from 2023. Broad money supply, including time and savings deposits, grew 5.8%, reaching $1.7 trillion. This rise was driven by higher cash circulation (+7.4%) and increased deposits (+7.2%).
