KFH Group Chief Executive Officer, Khaled Yousef AlShamlan said that rooted in genuine economic drivers, Kuwait Finance House Group's sustainable financial growth stems from its diversified activities, and the innovative products and services. KFH Group's strategic positioning in key regional and global markets provides a robust platform for high-value profit streams. The Group's presence in Kuwait, Bahrain, the UK, Egypt, Germany, Turkey, and Saudi Arabia is enhanced by a strategy of integration and harmony, which optimizes the ability to generate profits from diverse market performance.

It serves to note that KFH recorded strong financial performance during 2024 where it reported historic net profit of KD 601.8 million, which is the highest in the Kuwaiti banking sector. Net financing income reached around KD 1.15 billion; an increase of nearly 18.7%. Total operating income reached over KD 1.6 billion, an increase of 11.6%. Net operating income reached over KD 1 billion, an increase of 9%. KFH tops all Banks and all listed companies on Boursa Kuwait with a market capitalization of over KD 13 billion.

Supportive economic regulations

In an interview with The Banker Magazine, AlShamlan added that the Gulf Cooperation Council's economic upswing, fueled by increased capital expenditure and large-scale projects, will undoubtedly drive expansion in financing portfolios and boost returns, while favorable discount rate movements will further stimulate financing.

Financing and Liquidity Law

AlShamlan emphasized that positive developments in Kuwait's economic regulation strengthen the overall economy. He noted that the Financing and Liquidity Law (Public Debt) directly impacts the economy and the banking sector by enhancing financial stability and increasing confidence among both local and international investors and creditors. This law, which grants the government to issue up to KD 30 billion in debt instruments over a 50-year period, enables the government to tap local and international capital markets.

He explained that this will improve the government's ability to meet its future financial obligations, ensuring sustainable public spending and supporting the state's development plans through investments in infrastructure, construction, and value-added projects. This will positively influence Kuwaiti banks, improving their liquidity management and fostering general economic development.

Mortgage law

AlShamlan highlighted the importance of the upcoming mortgage law, even though its specifics remain undisclosed. He explained it will introduce new financing options to improve liquidity and, as previously announced, will be part of a broader legislative package—including the Real Estate Developer Law—designed to address the private housing shortage. “When finalized, the new mortgage law would positively impact the banking sector in general.”

Tam Digital Bank

AlShamlan said that KFH is leveraging cutting-edge technologies like robotics and AI to streamline back-office operations, utilizing big data analytics for informed business decisions. These advancements showcase KFH`s commitment to harnessing frontier and emerging technologies for comprehensive digital transformation.

“tam Bank is part of our offerings. It is the first Sharia-compliant digital bank in Kuwait. The core vision and strategy of tam is revolving around the concept of “Beyond Banking” by mixing banking services and social media experience within the same application,” he added. “Our success in digital innovation can be measured by the reach and impact of our services and the expansion of our market share and the value to our customers. Our advanced and sophisticated technological infrastructure supports the implementation of such initiatives, both within the Kuwaiti market and across other markets where the Group operates.”

KFH Egypt

Meanwhile, AlShamlan said: “The Egyptian market offers a range of Islamic banking products and investment structures. However, we see a continued demand for the development and innovation of Sharia-compliant products across various sectors in Egypt, including retail, corporate, and SMEs. Our top priority in Egypt is to meet this demand and increase our customer base by offering innovative Sharia-compliant financial products and services, fostering sustainable growth and enhancing customer experience. “Moreover, the presence of KFH, the largest Islamic bank in Kuwait, in the Egyptian market will definitely add value to the customers and to the banking industry as a whole,” he explained.

Green Sukuk

“Sustainability and ESG considerations have become increasingly central to KFH’s operations. We in KFH imbedded ESG factors into our core strategies and decision-making processes. Green Sukuk are poised to shape the future of Islamic finance,” AlShamlan highlighted. “KFH intends to actively contribute to the green Sukuk market's development by promoting their adoption as a key financing instrument. Issuer decisions are pivotal in defining the nature of these Sukuk, making it crucial for companies and governments to prioritize them as a primary financing instrument,”
he revealed.

“Building on its leadership and strong performance in the Sukuk sector, KFH, through its investment arm KFH Capital, participated in and arranged several Sukuk issuances. Notably, a growing portion of these were green Sukuk, demonstrating significant progress towards sustainable financing,” AlShamlan concluded.