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RIYADH: Foreign assets of Gulf central banks grew by 6.3 percent in 2024 to reach $761.9 billion, supported mainly by higher reserves in the UAE, according to figures from the Gulf Cooperation Council Statistical Center. 

The report, “Monetary and Financial Developments in the GCC States in 2024,” showed the UAE’s net foreign assets jumped 26 percent, accounting for 30.3 percent of the bloc’s total. Oman and Qatar also contributed with gains of 4.8 percent and 4.5 percent, respectively. 

Liquidity expanded across the region as well. Narrow money supply, or M1, hit $801 billion by year-end, up 10 percent from 2023, while broad money supply, or M2, rose 9.3 percent to $1.76 trillion. 

The rise was underpinned by strong growth in demand deposits, along with gains in quasi-money and currency in circulation. 

GCC Secretary General Jasem Al-Budaiwi said: “The challenges arising from global economic trends amid the current political crises, which are reflected in the economies of the GCC countries due to their openness to the world, necessitate the importance of responding to these challenges and taking all necessary measures to confront and mitigate their effects.” 

He noted that the GCC countries have demonstrated, under the most difficult and severe circumstances, their ability to overcome various challenges. 

“I affirm to you that a strong economy can only be achieved through close and joint cooperation, which is what the GCC countries are working on as they move forward in developing cooperation and integration in all fields, including the monetary and banking sector,” he added. 

According to the report’s quarterly analysis, broad money supply posted consistent growth throughout 2024 compared with 2023. By contrast, narrow money supply had declined in the first three quarters of 2023, mainly due to weaker monetary deposits, before recovering later. 

The data further indicated that demand deposits saw high monthly growth rates through 2024 compared with the same months in 2023. 

Quasi-money also recorded notable gains, though at a slowing pace, while currency in circulation outside banks rose at a more moderate rate. Together, these trends contributed to the overall rise in narrow money supply.  

“The GCC countries have managed to establish a competitive presence at both the global and regional levels, and this presence has been clearly evident in competitive indicators across various economic and developmental aspects,” the secretary general concluded. 

Separately, EY’s 2024 year-end GCC Banking Sector Outlook report said the region’s banking industry is “distinguished by its resilience, creative strategies and versatile adaptability to global economic movements and regional transformations.” 

It noted that GCC banks will continue to benefit from strong capital levels, underpinning overall performance. 

EY MENA Financial Services Leader Mayur Pau added: “GCC central banks are expected to continue mirroring the rate movements of the US Fed and the cycle should support the growth of the region’s non-oil sector.” 

He said the regional banking industry is expected to remain strong in 2025, supported by considerable capital buffers, healthy asset quality indicators, and adequate profitability. 

RIYADH: Syria plans for state-owned economic enterprises to contribute over $2 billion per annum to the national budget within the next two to three years, the country’s finance minister revealed.

In a post on Facebook, Yisr Barnieh explained that the aim is for these companies to be overseen by boards primarily composed of independent experts, rather than government officials serving due to their public sector roles.

The ambition comes as Syria enters a new economic era, helped by the US lifting key economic sanctions on the country, which is expected to prompt large-scale financial flows, trade normalization, and reintegration into global markets.

The country’s economy was severely damaged by 14 years of conflict, with gross domestic product shrinking by over 50 percent since 2010 and gross national income per capita dropping to only $830 in 2024 — significantly below the global low-income benchmark.

While the Syrian economy is expected to grow by 1 percent in 2025, according to a World Bank report released in July, it still faces continued security challenges, liquidity constraints, and suspended foreign assistance.

In his Facebook post, Barnieh said: “We seek to lay the legal foundation that will help us transform these institutions and companies (absolute generalizations are not permissible) from loss-making companies in rigid, bureaucratic molds plagued by corruption, mismanagement, and waste of public resources, into successful, efficient, competitive companies that serve development.”

He added: “These companies are based on the highest levels of sound and disciplined governance and are provided with the independence, capabilities, tools, and incentives that enable them to grow through specialized, professional management— management built on experience, professionalism, and integrity, not favoritism.” 

The comments came amid a meeting of a committee tasked with developing a legislative framework to regulate and enhance the work of government-owned economic companies.

“Our goal in developing a law regulating the work of government-owned economic companies is not to improve or update the existing systems for managing these institutions and companies. No, our goal is much deeper and more profound than that. Our goal is a radical, far-reaching change in the philosophy of managing and operating these companies,” Barnieh said. 

The newly formed government has begun implementing steps to align the country’s macroeconomic, fiscal, and monetary policies, emphasizing transparent public fund management and prudent fiscal and monetary practices. It is also working to attract essential foreign investment and secure aid pledges to aid in economic recovery.