On the surface, banks in the Gulf have endured a tough few months. Profits have fallen at a number of major institutions, and analysts warn that weak stock markets could lead to an increase in bad debts from margin lending.

Dig a little deeper, though, and their wounds appear to be superficial. Most remain highly profitable: many institutions saw earnings double in 2005 on the back of a stock market boom, and that was never going to be sustainable. Bank ratings are heading up, not down, and most analysts forecast oil prices well above $50 a barrel in 2007. As such, a strong regional economy should deliver ample lending opportunities, both to businesses and to the man in the street.