Islamic Financial Services
From The Report: Kuwait 2022
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One of the world’s largest Islamic finance markets, Kuwait has a wide range of banking, sukuk (Islamic bonds) and takaful (Islamic insurance) entities and products on offer, with recent headwinds such as the Covid-19 pandemic proving little obstacle to the sharia-compliant sector’s continuing robust growth. Indeed, the country’s Islamic banks have been expanding faster than its conventional ones in recent years, with a new merger making an Islamic banking provider an even bigger player in the local market. At the same time, sukuk issuance continues to bolster the country’s capital markets, while takaful products compete for market share with well-established conventional players. Increasingly, Islamic financial technology is playing a role, with Kuwait home to many innovative fintech outfits benefitting from a central bank-supported drive towards digitalisation.

This chapter contains an interview with Abdul Wahab Al Rushood, Acting Group CEO, Kuwait Finance House.

Articles from this Chapter

Overview

Future foresight: Prudent risk-sharing policies are shaping post-pandemic recovery as the sector eyes consolidation and increased digitalisation
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One of the world’s largest Islamic finance markets, Kuwait has a wide range of banking, sukuk (Islamic bonds) and takaful (Islamic insurance) entities and products on offer, with recent headwinds such as the Covid-19 pandemic proving little obstacle to the sharia-compliant sector’s continuing robust growth. Indeed, the country’s Islamic banks have been expanding faster than its conventional ones in recent years, with a new merger making an Islamic banking provider an even bigger player in…

Analysis

Unlocking synergies: Consolidation continues to gather pace as banks seek greater financial stability and efficiency gains
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Kuwait’s Islamic banking sector has consolidated its position as one of the largest markets in the world with the completion of the acquisition of Bahrain’s Ahli United Bank (AUB) by Kuwait Finance House (KFH) in October 2022. Prior to the deal, the Kuwait government held 23.9% ownership in KFH, an additional 24.1% via the Kuwait Investment Authority, and 18.69% in AUB. The Kuwaiti lender initially planned to issue one share for every 2.3 shares of the Bahraini bank as part of an $8.8bn all-share…

Interview

Wider horizons: Abdul Wahab Al Rushood, Acting Group CEO, Kuwait Finance House (KFH), on the path ahead for the Islamic finance industry
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Interview:Abdul Wahab Al Rushood What opportunities do you see for greater collaboration between established banks and financial technology (fintech) firms? ABDUL WAHAB AL RUSHOOD: Regulatory bodies in Kuwait have been supportive and adaptive to consumer demands for digital services. Not only have they allowed established banks to provide new digital services without applying for a different banking licence, but they are also allowing banks and fintech firms to collaborate through partnerships,…

Analysis

Islamic finance gains recognition on an international scale: Global stage
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After a resilient performance in 2020, the international Islamic finance sector fared positively in 2021 as an improved economic environment and a rise in the number of large projects combined to drive demand for services. Despite the twin challenges of the Covid-19 pandemic and the fall in international oil prices that affected many of the world’s heavyweights in Islamic finance, the global sector’s assets grew by 10.2% in 2021, according to ratings agency Standard & Poor’s (S&P).…