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Posts Tagged ‘Kuwait Finance House

Islamic lender wins licence for Saudi operation

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Points of Essence:

  • Kuwait Finance House is now expanding to Saudi Arabia. Currently, the Kuwait based Shariah financial institution has already set up operation bases in Bahrain, Malaysia and Singapore.
Kuwait Finance House has won a licence to operate in Saudi Arabia. (Getty Images - for illustrative purposes only)

RIYAL DEAL: Kuwait Finance House has won a licence to operate in Saudi Arabia. (Getty Images - for illustrative purposes only)

by:Inal Ersan

Islamic lender Kuwait Finance House said on Thursday its fully-owned Saudi unit has won an investment licence to operate in Saudi Arabia.

The 500 million Saudi riyal ($133.3 million) firm would be allowed underwrite, manage and offer consultancy services for securities in the Saudi market, the lender said in a statement. (Reuters)

Source: http://www.arabianbusiness.com

Written by Suapi Shaffaii

November 6, 2008 at 4:24 pm

Robust Economic Landscape In GCC & Asia Driving Growth In Islamic Finance

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Points of Essence:

  • Kuwait Finance House predicted an immense potential for further growth in the Islamic Finance industry with the robust economic landscape indicator in the GCC or Gulf Cooperation Council countries and Asia.
  • The industry is estimated to reach US$4 trillion by 2020 while the global takaful market is estimated to reach US$7.5 billion by 2015 from US$2.5 billion in 2007.
  • However, there are challenges to the industry:
  1. Narrowing of product diversification at institutional level;
  2. The absence of accounting standards pertinent to Islamic banking and finance caused uncertainties in revenue realisation, disclosures of accounting information, accounting bases, valuation, revenue and expense matching;
  3. Need for a greater communication and cooperation between governments, regulators and multilateral organisations;
  4. The subprime crisis in US which is also another risk management issue in Islamic finance.

August 11, 2008 20:41 PM
KUALA LUMPUR, Aug 11 (Bernama) — The robust economic landscape in the GCC or Gulf Cooperation Council countries and Asia is indicating an immense potential for further growth in the Islamic Finance industry, says Senior Analyst, Global Research of Kuwait Finance House, Arsad Thinoon.

He said the rising wealth and strengthening demand for Syariah-compliant investments will also drive Islamic finance growth.

“Government-linked/top-tier companies in the Middle East and emerging Asia (financial, real estate, oil and gas and transport services) are looking for funds on the back of massive infrastructure and construction projects in the region,” Thinoon said during the MIF2008 Issuers & Investors Forum here Monday.

This growth is expected to be strengthened further by improvements in the Islamic finance industry architecture, development of government-backed Islamic financial centres as well as greater awareness and global technological development.

The Islamic financial services is estimated to reach US$4 trillion by 2020 while the global takaful market is estimated to reach US$7.5 billion by 2015 from US$2.5 billion in 2007.

However, there remain challenges in the industry.

According to Thinoon, product diversification even at large Islamic financial institutions remain narrow.

The absence of standards pertinent to Islamic banking and finance has also resulted in uncertainties in accounting principles involving revenue realisation, disclosures of accounting information, accounting bases, valuation, revenue and expense matching, he said.

“There needs to be greater communication and cooperation between governments, regulators and multilateral organisations,” Thinoon said.

The subprime crisis in US is also another risk mangement issue in Islamic finance.

According to managing director of BinaFikir, Mohammed Rashdan Yusof, the subprime issue in US is due to excessive leverage and the structuring of bonds not according to cashflow resources.

Mohammed Rashdan was speaking at the forum entitled, “Learning from the Markets: Risk Management Issues and Islamic Finance”.

Another speaker, Mohamed Ridza, managing partner of Mohamed Ridza & Co. said that amid the subprime crisis – now a major concern among investors – some countries have been aggressive in adopting regulations that meet investors needs in addressing risk issues.

Within the Asian region, Singapore is one country that has been aggressive in its guidelines and regulations in meeting investors’ needs, Mohamed Ridza said.

Source: BERNAMA

Written by Suapi Shaffaii

August 12, 2008 at 3:21 am

Kuwait Finance House Spreads Wings To Johor

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Points of Essence:

  • KFH Malaysia opens a branch in Johore Bahru, Malaysia.
  • The branch is the fourth in Malaysia and the first outside Kuala Lumpur.
  • This signifies its support to Iskandar Malaysia being a major partnert to its development plans.

JOHOR BAHARU, June 30 (Bernama) — Kuwait Finance House (Malaysia) Bhd (KFHMB) has spread its wings by opening on Monday its first branch in Johor, which is also its first outside the Klang Valley.

Managing director Datuk K. Salman Younis said with the opening of the new branch, which marked its fourth in Malaysia, the bank could now expand its reach across all market sectors outside the Klang Valley, especially in the southern part region where Iskandar Malaysia was being developed.

“We are keen to work closely with the state government and the private sector in continuing to explore opportunities and strategic partnerships. It has always been our objective to support both sectors wherever we have a presence,” he said at the opening of the branch by Johor Menteri Besar Abdul Ghani Othman.

Younis said the bank had been successful in the Klang Valley and hoped to replicate the success here in Johor.

“In our move towards excellence in service, the branch will also offer priority banking. This is the second following the first at the Kuala Lumpur main branch,” he said.

The new branch also houses a commercial banking business centre where customers can access the bank’s full range of commercial banking products and services.

Younis said Kuwait Finance House was not really new in Johor but a major partner in the development of Iskandar Malaysia through Cultural Cluster Sdn Bhd, which was vested with the development of three zones — the Logistics Village, Creative Park and Heritage District.

Together, the three zones cover about 250 hectares of land with an investment value totalling RM1.2 billion.

Another involvement for KFHMB in Johor was a project financing facility for the capital expenditure programme of Senai Airport Terminal Services.

Abdul Ghani, in his speech, praised the role that the KFH group had played in enhancing the link between the Middle East and Malaysia as well as the banks contribution to the development of Islamic finance in Johor.

He hoped that Kuwait Finance House would do more in the state by not only introducing more Islamic banking products and services but also investing in more projects.

Source: BERNAMA

Written by Suapi Shaffaii

July 2, 2008 at 4:22 am