MUSCAT: The Gulf Cooperation Council (GCC) countries' official foreign reserves totalled $804.1 billion by mid-2024, marking a 7.5% increase from the end of 2023. According to the Statistical Centre of the Cooperation Council for the Arab States of the Gulf, these reserves accounted for 4.9% of global foreign reserves, ranking the GCC fifth worldwide after China, the European Union, Japan and Switzerland.
The surge in reserves was attributed to higher oil revenues, with Brent crude averaging $84 per barrel in the first half of 2024. Additionally, rising financial asset values in global markets contributed to the growth. Commercial banks in the GCC reported total assets of $4.3 trillion, an 8.4% increase from the previous year.
Foreign reserve assets include monetary gold, special drawing rights, International Monetary Fund (IMF) reserves and foreign currency holdings, along with deposits and securities investments abroad. Bank deposits within GCC commercial banks reached a record high of $2 trillion by mid-2024, a 6.2% rise from the end of 2023 and a 9.9% increase from mid-2023.
GCC commercial banks provided total loans amounting to $1.97 trillion by mid-2024, up 8.3% year-on-year, with 81.1% directed to the private sector. Meanwhile, the money supply expanded significantly, with narrow money supply reaching $781 billion, up 2.7% and broad money supply hitting $1.71 trillion, reflecting a 5.8% rise.
Quasi-cash deposits, including time and savings deposits, accounted for 54.1% of the total money supply, while demand deposits made up 39.4% and cash in circulation outside banks comprised the remaining portion. — ONA
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