Fitch Highlights Four GCC Banks as Flagship Institutions

UAE, 23 December, 2024 : Fitch Ratings has designated four flagship banks in the GCC, highlighting First Abu Dhabi Bank (FAB), Qatar National Bank (QNB), National Bank of Kuwait (NBK), and Bank Muscat for their strategic importance and strong state links.

The banks were recognized for their dominant market positions, significant government or ruling family ownership, and critical roles in their respective economies. Fitch noted their heightened likelihood of sovereign support due to close relationships with their governments and high systemic importance.

Saudi Arabia, despite being the GCC’s largest economy, has no flagship banks under Fitch’s criteria, citing insufficiently strong sovereign links compared to other GCC flagship banks.

Flagship banks benefit from high shares of government deposits, privileged lending access, and roles in supporting national economic agendas. These factors enhance their standalone creditworthiness and result in stronger viability ratings compared to peers.

Fitch emphasized the pivotal role these banks play in funding key projects, managing sovereign accounts, and driving economic diversification in their countries, solidifying their importance within the GCC banking sector.