Middle Eastern financial institutions are well capitalised, and the challenge facing them is the efficient utilisation of this capital.

A continuation of renting the balance sheet, i.e. extending cheap credit, will not lead to success and the diversification of revenue sources is becoming essential.

There is a need for accurate analysis of new business opportunities where an institution’s business strengths are matched against market attractiveness.

International banks have become skilled at exploiting attractive fee-based business opportunities. This allows them to realise maximum returns while minimising risk.

The analytical culture employed by international banks must be adopted by GCC financial institutions to identify business diversification opportunities.