Banks across the Gulf region have reported strong lending growth in the first quarter of 2026, driven by increased demand from businesses and consumers.

The growth has been supported by government spending, infrastructure projects, and expanding private sector activity.

Financial institutions in the UAE and Saudi Arabia have seen particularly strong performance, with increased lending in sectors such as real estate, construction, and technology.

Analysts believe the banking sector remains resilient despite regional challenges, supported by strong capital reserves and regulatory frameworks.

Source : Reuters.