GCC Banks Are Well Positioned, Arqaam Capital's Meijer Says

The video discusses the impact of rising interest rates on banks in the GCC region, particularly in Saudi Arabia, UAE, and Kuwait. It highlights the strong performance of Saudi banks due to increased asset yields and net interest income. The GCC banks are well-positioned with a high percentage of floating assets, leading to improved return on equity. UAE banks, while not as sensitive to rate changes, still show potential for growth. Kuwait banks are expected to benefit from market inflows and earnings growth, despite being less sensitive to rate changes compared to Saudi banks.

What is a key factor driving the growth in net interest income for Saudi banks?

• Rising interest rates

• Reduction in market competition

• Increase in floating base assets

• Decrease in asset yields

How do UAE banks compare to Saudi banks in terms of sensitivity to interest rate changes?

• UAE banks are more sensitive

• UAE banks are not affected at all

• UAE banks are less sensitive

• Both are equally sensitive

What has been a recent trend in liquidity allocation between the UAE and Saudi markets?

• Increased investment in UAE

• Reallocation from Saudi to UAE

• No change in liquidity allocation

• Reallocation from UAE to Saudi

What is one of the expected outcomes for Kuwaiti banks due to the FTSE inclusion?

• Increase in passive inflows

• Decrease in market inflows

• Reduction in earnings growth

• Stagnation in market position

How does the market cap percentage of passive inflows compare between Saudi and Kuwaiti banks?

• Both have a similar percentage

• Kuwaiti banks have a higher percentage

• Saudi banks have a higher percentage

• Neither has passive inflows