Over the last 44 years of its career, KFH went through 4 main phases, since the start of business in 1978, “Breakthrough – Pioneering – Expansion – Leadership”. KFH managed during this period to build an economic sector, parallel and competitive to the traditional banking sector and stand as a pioneer in this field. KFH expanded geographically and regionally in several countries and introduced to the global economy a set of innovative sharia compliant services, products, and finance solutions which have impacted global markets and rendered Islamic finance products and services to be recognized in financial and banking transactions worldwide. KFH has efficiently succeeded in leading Islamic banking growth and development in Kuwait and worldwide and demonstrated the private sector ability to achieve an added value to the world economy, not only for being the largest and most important Islamic bank worldwide, but also for being a source and a guide for a growing, valuable and increasingly traded financial industry worldwide in competition with major global banks.

KFH career witnessed tremendous success, customer satisfaction, expansion and business growth while strictly adhering to sharia rules and regulations. The Fatwa and Sharia Control committee’s consent is considered as a basic condition to approve and execute any product or service, thus demonstrating the durability and strength of the financial and moral structure.

The Beginning

KFH was incorporated as per an Amiri decree dated 23rd March 1977 with KD 10 million capital. Business started on 31st August 1978 with one banking branch, providing special services to ladies and a limited number of employees to reach 320 branches worldwide operating in the largest and most significant international markets.

KFH started its operations in a temporary location at Ahmed Al-Jaber Street and moved in 1983 to Emad Commercial Center in the same street until finally it settled in its current location in Abdullah Al-Mubarak street in 1986.

For several years, KFH remained as the lone alternative for citizens wishing to consider sharia compliant transactions before opening the door for new Islamic banks to be established in Kuwait, thus enhancing competition, and increasing growth in Islamic financial services market. Despite the entrance of new banks to the market yet KFH continued its growth with a remarkable increase in customers demand on its products and services. At this stage, KFH achieved vast leaps and strengthened its pioneering position at the local market Islamic financial institutions levels, enhanced its spread and presence in international markets, alleviated its automated programs and systems to a new higher level and played a significant and unprecedented social role in the development of society and retail services. KFH has become the most recognized symbol of Islamic banking.

One of the main features of the post inception and pioneering period is foreign investment and its breakthrough in international markets, innovation of certain products to suite all investors needs and realization of favorable returns during different periods. Business expanded and investment took different forms including real estate, finance, and subscriptions in deals and projects with grand global banks.

KFH is currently working on continuing to flourish and innovate new investment tools and products and achieve high profit ratios and sustainable growth in all fields. During the last 10 years, KFH strategy was developed to focus on core banking business, exit non-core activities and enhance its ability to realize sustainable profit according to a new vision to lead the Islamic finance sector worldwide.

Global Expansion

One of the main KFH achievements is the inauguration of Kuwait Turk which is the largest Islamic bank currently in Turkey and KFH Bahrain with its banking, commercial, investment and finance activities. Malaysian government granted KFH the license to establish an Islamic bank “KFH Malaysia” in appreciation of its pioneering position. Also, KFH inaugurated KFH Germany and an investment bank in Saudi Arabia. KFH led the transformation process of the National Bank of Sharjah into an Islamic bank following 26 years of traditional banking activities.

Success Factors

Full commitment to business methodology based on Sharia applications and regulations, adoption of scientific business methodology, preparation of plans and strategies, implementation of well-studied growth policy, liaising with customers and fulfilling their needs and aspirations, development of creativity and innovation values while focusing on the human factor.

Social Role

KFH plays a highly significant social role that copes with and enhances the general development project of the state. KFH contributions are focused on social growth activities including hospitals, universities, schools, research centers, handicapped education, rehabilitation centers, youth centers and scientific research support centers in addition to environment maintenance and society protection from dangers, plaques and diseases.

National Factor

One of the main KFH beliefs which has formed KFH career is the focus on the human factor, national competencies and Kuwaiti youth which are the basic element of every success. The development and enhancement of human competencies working in KFH, and the support of the national factor are considered as the most significant elements in development plans. Human Resources strategy aims to create a favorable environment to enhance employees’ loyalty and dedication and attract expertise and competencies. Kuwaitis’ recruitment ratio at KFH during the recent years ranged 97 – 100% mostly fresh graduates.

Technology

KFH is keen on blending the technology factor in all services and products provided to customers as they are considered as the means to serve customers, mitigate costs, increase profit and enhance competency, considering the continuous development in the technology dependent banking services without any obstacle and at the highest levels of quality, security and easiness. KFH introduced technology-based services and products through its KFH-GO branches as well as several other services through XTM machines, automated card printing and other services.

Innovation and Development

KFH was creative and innovative in several products which have helped to build strength and employ expertise including sharia compliant credit cards and the ladies’ branches. The provision of ladies’ branches service has contributed to building national banking lady cadets who are currently playing a vital role in the Kuwaiti economy. “Ijara” is one of the main sharia compliant products in which KFH increased its activity to diversify products. Sukuk structure has become a major investment and finance tool in Islamic finance industry. KFH has also participated with traditional finance to finance major projects which started with Equate Project in 1996. Also, KFH has participated in creating an Islamic financial market through the inception of the Inter-Islamic banks’ liquidity management center. In 1981, KFH established the Integrated Technology Systems and then completed the Islamic financial transactions service circle by establishing the first Takaful Insurance Company.