Kuwait Finance House ( ar, بيت التمويل الكويتي) (KFH) was established in the

State of Kuwait Kuwait (; ar, الكويت ', or ), officially the State of Kuwait ( ar, دولة الكويت '), is a country in Western Asia. It is situated in the northern edge of Eastern Arabia at the tip of the Persian Gulf, bordering Iraq to the nort ...

, in 1977, as the first bank operating in accordance with the Islamic Shari'a rulings. KFH is listed in

Kuwait Stock Exchange Boursa Kuwait Securities Co., is the private-sector corporate owner and operator of the Kuwait Stock Exchange (KSE), the national stock market of Kuwait. History Although several share holding companies (such as National Bank of Kuwait (NBK) in ...

(KSE), with a

market capitalization Market capitalization, sometimes referred to as market cap, is the total value of a publicly traded company's outstanding common shares owned by stockholders. Market capitalization is equal to the market price per common share multiplied by ...

of $8.2 billion ( KWD 2.49 billion) as of May 2016. Assets total $55.52 billion ( KWD 16.83 billion) and deposits amount to $34.97 billion ( KWD 10.66 billion.)

History

Kuwait Finance House was established in 1977 as Kuwait's first Islamic bank. It received 170 applications to open new accounts on its first day of operation on 31 August 1978. KFH opened in temporary headquarters on Ahmad Al-Jaber Street, before moving to the Emad Commercial Center in 1983 and then its present-day location on Abdullah Al-Mubarek Street in 1986. By 1983, KFH was the only Islamic Bank listed on the Banker's list of the top 100 Arab Banks. In 1984, KFH was listed on the

. In 1989, KFH's subsidiary in Turkey, Kuveyt Turk Participation Bank, was established by a Turkish cabinet decree. KFH Capital Investment Company was formed in 1999 to invest in the public equity, private equity, and real estate markets across the globe. KFH Capital is the main investment of the bank, with offices in Safat, Kuwait and Oman. In 2002, KFH opened its first branch in Bahrain and in 2005 KFH Malaysia was established, becoming the first Islamic bank to be granted a license in the county under the 1983 Islamic Banking Act. Since then, KFH and Kuveyt Turk have established a presence in the Kingdom of Saudi Arabia, Jordan, the UAE and Germany. In July 2017, KFH studied a merger with

Ahli United Bank Ahli United Bank ( ar, البنك الأهلي المتحد) is a regional bank based in Bahrain. Its head office is situated at Manama and is the largest bank in Bahrain. It is present in 8 countries in the Middle East and United Kingdom. Ahli Uni ...

., and in July 2022 KFH sealed the merger of

Activities

KFH provides Islamic Shari'a compliant products and services, covering banking,

real estate Real estate is property consisting of land and the buildings on it, along with its natural resources such as crops, minerals or water; immovable property of this nature; an interest vested in this (also) an item of real property, (more genera ...

, trade finance, investment portfolios, and other products and services. Since the 1980s, KFH has witnessed multi-activity in international expansion. It has established independent banks in Turkey, Bahrain, and Malaysia. Moreover, it has stakes in other Islamic banks. Its investment activities in the US, Europe,

South East Asia Southeast Asia, also spelled South East Asia and South-East Asia, and also known as Southeastern Asia, South-eastern Asia or SEA, is the geographical south-eastern region of Asia, consisting of the regions that are situated south of mainland ...

and the Middle East contributed to achieving the growing profit of KFH. KFH is a major player in the international sukuk market, the volume of which for KFH trading group reached US$11.4 billion in 2016. According to the KFH website, until January 2017, KFH ran the following subsidiaries: *

Kuwait Kuwait (; ar, الكويت ', or ), officially the State of Kuwait ( ar, دولة الكويت '), is a country in Western Asia. It is situated in the northern edge of Eastern Arabia at the tip of the Persian Gulf, bordering Iraq to Iraq–Ku ...

: KFH Capital, Development Enterprises Holding Co., Aref Investment Group (Closed), Kuwait Finance House Investment Company, Emmaa Real Estate Company Ksc (Closed), Kuwait Finance House Real Estate Company, International Integrated Computer Systems Group Co., Human Investment for Training and Consulting, Public Services Company, ALAFCO Aviation Lease And Finance Company Kscc, Al Salam Hospital Company Ksc (Closed) *

Bahrain Bahrain ( ; ; ar, البحرين, al-Bahrayn, locally ), officially the Kingdom of Bahrain, ' is an island country in Western Asia. It is situated on the Persian Gulf, and comprises a small archipelago made up of 50 natural islands and a ...

: Kuwait Finance House – Kingdom Of Bahrain, Bahrain Pearl Company, INMAA House Real Estate Company, Mena Telecom Company, Miracle Graphics Company, Sevilla Village Company, Diyar Al Moharaq Company, B K Development Company, Baitak Oasis Industrial Company, Kuwait Finance House- Hashemite Kingdom Of Jordan, Diyar Homes Company *

Saudi Arabia Saudi Arabia, officially the Kingdom of Saudi Arabia (KSA), is a country in Western Asia. It covers the bulk of the Arabian Peninsula, and has a land area of about , making it the fifth-largest country in Asia, the second-largest in the Ara ...

: Saudi Kuwaiti Finance House, "Baitak" Real Estate Company (KSA), Takhteet and Namaa Real Estate Company (GYO) * Turkey: Kuwait Turkish Participation Bank "Kuwait Turk", Corviztatel Company, Corviz Company (GYO) *

Malaysia Malaysia ( ; ) is a country in Southeast Asia. The federal constitutional monarchy consists of thirteen states and three federal territories, separated by the South China Sea into two regions: Peninsular Malaysia and Borneo's East Mal ...

: Kuwait Finance House, Baitak Asset Management Company, Baitak Libwan Company, Baitak Nominees Company

Investment in associates

*First Takaful Insurance Company K.S.C. (Closed) -

*Gulf Investment House K.S.C. (Closed) -

*Liquidity Management Centre Company B.S.C. (Closed) -

Sharjah Islamic Bank Sharjah Islamic Bank, formerly known as the National Bank of Sharjah, is a publicly listed Islamic bank headquartered in the emirate of Sharjah in the United Arab Emirates. The bank was established in 1976 and in 2004 converted into a fully Sharia ...

United Arab Emirates The United Arab Emirates (UAE; ar, اَلْإِمَارَات الْعَرَبِيَة الْمُتَحِدَة ), or simply the Emirates ( ar, الِْإمَارَات ), is a country in Western Asia (Middle East, The Middle East). It is ...

*A’ayan Leasing & Investment Company K.S.C. (Closed) -

*Munshaat Real Estate Projects Company K.S.C. (Closed) -

* Sukuk Real Estate Development Company K.S.C. (Closed) -

Ownership

This is the ownership structure after the merger of Kuwait Finance House with

: * 16.65% -

Kuwait Investment Authority The Kuwait Investment Authority (KIA) is Kuwait's sovereign wealth fund, managing the state’s reserve and the state’s future generation fund (FGF). Founded in 1953, the KIA is the world's oldest sovereign wealth fund. As of April 2022, it ...

* 7.25% - Kuwait Public Authority of Minor Affairs * 5.81% - Kuwait Public Institution for Social Security Fund * 5.05% - Kuwait Awqaf Public Foundation * 3.08% - Bahrian Social Insurance Organization * 1.71% - Tamdeen Investment Co. * 1.67% - Sheikh Salem Sabah Al Naser AlSabah

Key People

* Hamad Abdulmohsen Al-Marzook -

Chairman The chairperson, also chairman, chairwoman or chair, is the presiding officer of an organized group such as a board, committee, or deliberative assembly. The person holding the office, who is typically elected or appointed by members of the group ...

* Mazin Al Nahedh - Former CEO * Abdulwahab Iesa Alrushood - Acting CEO * Bader Abdul Mohsen Al Mukhaizeem - Former Chairman

Awards

* ''Straight Through Processing'' (STP) award 2016 from

Citi Bank Citibank, N. A. (N. A. stands for " National Association") is the primary U.S. banking subsidiary of financial services multinational Citigroup. Citibank was founded in 1812 as the City Bank of New York, and later became First National City Ba ...

* ''Best Islamic Project Finance Provider'' 2016 from

Global Finance The global financial system is the worldwide framework of legal agreements, institutions, and both formal and informal economic actors that together facilitate international flows of financial capital for purposes of investment and trade financ ...

* ''Best Islamic Financial Institution in GCC'' 2016 from

*Best Bank in Kuwait 2015 from EMEA Finance * ''Best Islamic Bank in Kuwait'' 2015 from EMEA Finance * ''Best Islamic Bank in Kuwait'' 2015 from Islamic Finance News Magazine * ''Europe Best Digital Participation Bank'' KFH Turkey from

References

External links

Official website
{{Authority control Banks of Kuwait Banks established in 1977 Companies based in Kuwait City Kuwaiti companies established in 1977 Companies listed on the Boursa Kuwait