In this episode, we explore how geopolitical tensions in West Asia are reshaping the operating environment for banks across the region. Energy shocks, trade disruptions, and rising logistics costs are already affecting liquidity, funding, and credit flows, while sectors such as shipping, aviation, retail, and real estate face immediate pressure - creating ripple effects across bank balance sheets.

We unpack how stress is emerging on both sides of banking operations: asset quality is impacted by disrupted supply chains and corporate cash-flow strain, while liabilities face volatility due to mobile deposits and shifting investor sentiment. The episode concludes with a strategic playbook for banks - focusing on liquidity readiness, digital resilience, proactive risk monitoring, and stronger client engagement to help navigate uncertainty and prepare for recovery.

Sanjiv Anand, Chairman, Cedar Management Consulting International

Despite being perceived as over-banked, the Middle East banking market offers significant growth opportunities across segments. Corporate banking remains commoditized in trade and contracting finance, but untapped areas such as manufacturing, treasury, and cross-border structured finance can drive higher income. Commercial banking is a hidden gem, with thousands of mid-sized businesses underserved due to weak segmentation, rigid credit policies, and organizational gaps. Retail banking continues to grow through cards, loans, and mortgages, but future gains lie in spend-led loyalty strategies and disciplined risk management. Priority and private banking present major upside given the region’s growing high-net-worth population, requiring better advisory services and tailored products. Islamic banking is a fast-growing, unavoidable opportunity through full models or Islamic windows. Channel innovation, business-enabling credit, and core banking automation are critical enablers. Banks that segment well, innovate, and execute decisively will win.

V. Ramkumar, Senior Partner, Cedar Management Consulting International