Islamic financial institutions across Bahrain and the wider GCC are well-positioned to maintain superior credit strength and outpace conventional lenders despite a challenging regional operating environment, according to a report by Moody’s Ratings.
The sector-in-depth report highlights that while ongoing geopolitical turmoil – particularly the closure of the Strait of Hormuz – has disrupted supply chains and slowed non-oil growth across confidence-sensitive sectors like real estate, construction, and logistics, Islamic banks possess structural advantages that insulate them from severe fallout .
