The GCC region has been experiencing rapid economic growth, increased global exposure, technological advancement, and cultural diversity. These transformations have been facilitated by a set of financial mechanisms that emerged as essential to the region’s economic growth. In principle, financial intermediaries help shape more diversified economies and improve welfare by transforming savings into productive loans. This chapter surveys the fundamental characteristics of GCC economies relevant to the banking sector. It explores structural economic foundations and presents key economic challenges for diversification and growth.