Islamic Financial Services
From The Report: Kuwait 2013
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As the government continues to develop a regulatory framework for the sector, Islamic financial instruments are playing an increasingly prominent role in banking. The country is home to one of the largest and most diverse markets for sharia-compliant instruments, and as of September 2012, a full 42.3% of Kuwait’s total banking assets were Islamic. This chapter contains an interview with Mohammad S Al Omar, CEO, Kuwait Finance House.

Articles from this Chapter

Overview

Principled assets: A regional centre for the sharia-compliant financial industry
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Over the past decade Kuwait has seen the emergence of one of the largest and most diverse Islamic financial services (IFS) industries in the world. According to Kuwait Finance House (KFH), as of September 2012, the country was home to $70.4bn in Islamic finance assets, some 5-6% of global sharia-compliant assets. Numerous Islamic financial institutions have set up shop in Kuwait in recent years. As of 2012 five of the country’s 10 local banks were fully sharia-compliant, and, while full-fledged…

Interview

OBG talks to Mohammad S Al Omar, CEO, Kuwait Finance House
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Interview:Mohammad S Al Omar How are smaller investment firms and financial services companies dealing with current difficulties, particularly with regard to liquidity? MOHAMMAD SAL OMAR: The market has been rough, but now we can see that buyer confidence is beginning to return. Some investors with a higher risk tolerance are starting to buy distressed assets – at the right price, of course. One thing the financial crisis has taught us is that these investment companies must do their due…

Analysis

Banks at the top: Sharia-compliant banking institutions lead the way
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Islamic financial institutions have become an increasingly important component of Kuwait’s banking sector over the past decade and a half. As of September 2012, the country’s five Islamic banks accounted for 42.3% of total banking assets, up from 33% at the end of 2011, according to data from Kuwait Finance House (KFH) and Ernst & Young (E&Y). The 2012 figure was the highest rate among GCC member states at the time. In terms of absolute value, Kuwait’s Islamic banking sector was…

Analysis

Bricks and mortar: Property remains a popular investment class among local players
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The development of Islamic financial services (IFS) in Kuwait over the past decade and a half corresponds to the rise and fall of real estate throughout the GCC over the same period. From the early 2000s until the international financial downturn in 2007-08, local sharia-compliant banks and companies invested heavily in the regional real estate market, which, in turn, grew substantially. Similarly, beginning in 2009, activity in the local real estate sector dropped off, and the ensuing credit…