What makes wholesale banking the backbone of the GCC’s economic engine?

If you’ve ever wondered how large-scale projects in the Gulf Cooperation Council (GCC) countries are financed or how international trade flows seamlessly across borders, look no further than wholesale banking. This cornerstone of the financial sector caters to the heavyweights—large corporations, other banks, and financial institutions—fueling the economic resilience and growth of the region. But in a landscape as dynamic as the GCC, how does wholesale banking stay relevant, profitable, and ahead of the competition?

Overview of GCC banking sector

Let’s start with the numbers. The GCC banking sector is defying global trends, buoyed by robust growth, particularly in non-oil sectors. Wholesale banking stands out as a critical segment, making up:

? A third to half of total assets ? Three-quarters of loans ? A significant portion of revenues

In fact, GCC banks boast a revenue-to-assets ratio of 3.2%, far surpassing the global average of 2.3% (McKinsey). This isn’t just about numbers—it’s a clear indication of the sector’s health and profitability, largely driven by wholesale banking’s contributions.

Challenges and competitors

But it’s not all smooth sailing. Wholesale banking in the GCC faces fierce competition from a new breed of challengers, including:

? Commercial banks

? Investment banks

? Corporate banks

These entities are aggressively vying for market share, pushing traditional wholesale banks to rethink their strategies.

Digital transformation

Add to that the digital transformation wave, which has swept through the region, especially since the pandemic. Digital-only banks are not just a retail banking phenomenon—they’re pushing traditional wholesale banks to:

? Adapt to new technologies

? Meet evolving client expectations

? Enhance digital service offerings

Sustainability and growth

Looking to the future, the trend towards sustainability and Environmental, Social, and Governance (ESG) practices is another challenge—and opportunity—that wholesale banks must embrace. With retail banking revenues in the GCC expected to grow at a CAGR of 8.8% between 2021 and 2026 (BCG), the broader trend towards sustainable practices is clear. Wholesale banks that can integrate these principles into their operations will:

? Stay competitive

? Find new avenues for growth

? Align with global sustainability trends

In the grand scheme of the GCC’s economic diversification and expansion into non-oil sectors, wholesale banking will continue to play a pivotal role. The question is, how will these banks navigate the dual pressures of digital disruption and sustainability? Will they innovate and adapt, or risk being outpaced by more agile competitors?

The stakes are high, but so is the potential for those who can master the complexities of the evolving financial landscape. How will your institution leverage the power of wholesale banking to drive growth and maintain a competitive edge in the GCC? The future of the region’s financial sector could very well depend on it.

About Craig Warner:

Craig is Co-founder and Co-Managing Director of Warner Scott Recruitment (WSR), Global executive recruitment specialist in Banking & Investments, Accounting & Finance, Digital & Fintech - with offices located in London and Dubia, covering recruitment mandates in the Gulf Cooperation Council (GCC).

Before co-founding WSR 18 years ago, Craig spent 11 years in Financial Services. He headed the brokerage division in London & Europe, covering FX, Derivatives, Commodities & CFD's as well as relocating to set up an investment/brokerage division in Europe.

About WSR

Warners Scott is a premier global executive recruitment specialist based in London and Dubai, focusing on Banking & Investments, Accounting & Finance, and Digital & Fintech. With over 18 years of experience, they have built strong relationships with top-tier banks, financial institutions, and accountancies. Their unique value lies in these long-standing relationships with hiring managers and internal recruiters, a vast network of candidates, and continuous engagement. This combination places them uniquely in the market, trusted by both talent and hiring managers. Their evolved perspective allows them to precisely understand recruitment needs and pinpoint senior C-suite, EVP, SVP, and MD-level hidden, ready-to-move talent that other recruiters cannot access.

Warners Scott delivers tailor-made recruitment solutions for international and regional clients, functioning as true business partners. Their comprehensive services cover retained, exclusive, and contingency searches, as well as permanent, contract, and interim staffing.

In Banking and Investments, they partner with international and regional banks and investment houses in London and the Middle East, including conventional and Islamic banks. They cover areas such as Private Equity, Asset Management, Investment Banking, Treasury & Global Markets, Wholesale Banking, Digital & Technology, Risk Management & Compliance, and C-Suite Appointments.

In Accounting and Finance, Warners Scott works alongside The Big 4 and Top 50 accounting firms, along with globally recognized consultancies. They specialize in Audit, Risk & Compliance, Tax (Private Client, Expatriate, and Corporate Tax), Corporate Finance, Transaction Advisory, Restructuring, Turnaround, Insolvency, Forensic Accounting, Disputes & Investigations, Forensic Technology, eDiscovery, Cyber Security, and Management Consultancy.

In Digital & Fintech, they assist large banks, digital startups, and innovative Fintechs in areas such as FinTech (AI, Blockchain, Cloud Computing, Big Data), InfoSec/Cybersecurity (Application, Infrastructure, Network, Cloud, IoT securities), Digital Leadership, Digital Transformation, Software Development, IT Project/Program management, Data Science & Analytics, Data Privacy, and Data Architecture.