Al-Bahar: NBK maintains a strong financial position to sustain growth into 2025
The infrastructure development agenda and project awards have accelerated as the decision-making process is simplified
Our performance affirms our ability to capture growth opportunities while maintaining our high asset quality and healthy capitalization levels
Ms. Shaikha Al-Bahar, Deputy Group CEO at National Bank of Kuwait (NBK) mentioned that despite the spark of geopolitical tensions, its negative consequences on the business environment and the downside cycle of interest rates, the bank managed to sustain profit trends across different business lines in 2024.
In an interview of CNBC International, Al-Bahar added, 'Our resilience against challenges testifies the success of our diverse strategic initiatives in creating value to customers, communities and stakeholders alike.'
Government agenda priorities
Al-Bahar went on to say that on the legislative front, developments on long-awaited laws are progressing with expectations of their passing in the near future. 'On the debt law front, it remains a top priority on the government's agenda given the ever-increasing level of public spending, volatile oil revenues, and efforts to elevate sovereign ratings.'
'The government seeks to promote FDIs through increasing investment opportunities in the field of renewable energy, infrastructure, tourism and technology, as well as increasing non-oil revenues to contribute initially to 10% of total revenues; with efforts to increase this contribution to higher levels in line with GCC peers through revisions of taxes and fees frameworks and diversifying income and limiting spending and injecting government investments in the domestic economy.'
'With regards to mortgages, we witnessed some adjustments to the underlying laws for housing as an instance, which shall facilitate in part the passing of the mortgage law. Overall and in the presence of such developments, we are becoming more and more optimistic with regards to the passing of key laws including the mortgage and debt law soon as the government is clearly pushing towards structural reforms,' she added.
Strong year for project awards
On the pickup in development project market, Al-Bahar commented, 'Project awards positive momentum in 2024 continued in each quarter.
'The government also recently announced the inclusion of more than 100 projects in the 2025-2026 budget, covering the state's needs in various sectors at a cost of KD1.7 billion,' she explained.
Innovation and excellence
Al-Bahar mentioned that NBK constantly strives for excellence and innovation in all products and services provided to customers as the cornerstones of its success.
'We will continue demonstrating agility and resilience in navigating the evolving economic landscape and seizing emerging opportunities with cutting-edge technologies and data-driven strategies,' she said.
'In Kuwait, on the retail front, we will continue with improving our digital offerings towards targeting various client segments and boosting customer satisfaction.'
'With the domestic corporate banking landscape poised to improve on the back of projects activity momentum, we will focus on capturing growth opportunities including enhanced services through a customer-centric approach. Beyond borders, our international banking group will continue to expand in key markets, optimizing costs and leveraging technology to enhance operational efficiency in addition to exploring opportunities in sustainable finance,' she explained
'Likewise, as we continue to stand-out in building a wealth management powerhouse, NBK Wealth aims to broaden reach by presence and advisory and investment offerings to enrich client experience.'
High adaptability
Al-Bahar emphasized that NBK's adaptable business model will operationally benefit the bank in diversifying revenue streams, focus on core banking activities and mitigate risks when it comes to facing global and regional challenges.
'Our ability to adjust to changing economic conditions is demonstrated through the execution of our strategic investments and diversification of our strategy, reflecting our high asset quality, ample liquidity and a historically strong balance sheet.'
'With our global presence across 13 markets, we stood resilient in the face of challenges and the modest domestic growth and are well positioned to build on our diverse strategic agenda during 2025,' she affirmed.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Khaleej Times
an hour ago
- Khaleej Times
Private credit set to become a part of institutional investor portfolios
Private credit is set to become a part of all institutional investor portfolios globally, especially as investors seek yield in a higher interest rate, lower-beta environment, an industry veteran said. 'Over the next 5–7 years, the asset class will mature further in Asia, driven by bank's doing more plain vanilla lending, rising corporate borrowing needs, and increased investor appetite for fixed income alternatives,' Kanchan Jain, Head at Ascertis Credit Group, said. Excerpts from an interview: With increasing interest from GCC-based sovereigns and family offices in Asian private credit, are you seeing more opportunities for cross-regional partnerships or capital flows into your funds from the Middle East? GCC based sovereigns and family offices have been long-time supporters of Asian and Indian strategies but of late we are seeing an increasing interest from GCC based sovereigns and family offices in Asia and India private credit strategies. They are recognising the benefit of adding private credit strategies to their portfolio and exploring the best fit for them i.e through strategic investments, fund investments, directs and/or co-investments. We are also seeing increasing conversations around cross-regional partnerships as well capital deployment at scale. With over $1 billion deployed and four successful funds, how is Ascertis positioning its upcoming fifth fund in the current macroeconomic landscape, particularly in Asia ex-China markets? Ascertis Credit's latest fund is being launched at a pivotal time when companies across Asia are actively seeking non-dilutive growth capital amidst tightening bank lending. The Fund operates in the high-growth, underpenetrated private credit markets of India and Singapore-SEA, offering significantly outsized returns compared to developed markets. These markets are characterized by strong growth prospects, well-entrenched market positions, and lower leverage of good size, established companies. This geographic footprint also provides strong diversification benefits away from the headwinds created through ever-shifting geopolitics and risk of slowdown in largest developed markets in the West. The Indian economy represents one of the fastest growing large economies globally and is expected to grow at a CAGR of c. 6-7% in real terms, which translates to high teens nominal CAGR for most growing and well-established corporates with a significant need for customized capital. Beyond India, there is untapped potential in the various markets that collectively make up SEA where constituting countries have witnessed robust economic growth, reflected in their GDP expansion. A number of such companies are headquartered or have significant presence in Singapore and represent strong investment profiles. Singapore also provides a strong jurisdiction in terms of legal and creditor rights. Data from World Economic Forum suggests that over a ten-year period (2012 – 2022), ASEAN countries have accounted for 9% of global GDP growth – paralleled by the growth in the size of its banking and credit markets[1]. With a target size of $750 million to $1 billion, the fund will continue the firm's legacy of targeting high-quality, cash-generative businesses with a clear focus on capital preservation and strong governance. By leveraging macroeconomic trends—such as India's infrastructure boom, Southeast Asia's rising middle class, and the global shift towards diversified supply chains—Ascertis Credit aims to capitalize on underserved yet robust credit opportunities in the region. India and Southeast Asia are rapidly growing credit markets but remain significantly underpenetrated. What makes these regions uniquely attractive to Ascertis, and how do you navigate the associated risks? India and Southeast Asia offer a unique confluence of macroeconomic tailwinds, structural reforms, and demographic momentum. India, in particular, is projected to be the world's third-largest economy by 2027, with consistent GDP growth driven by policy reforms, digital inclusion, and a thriving entrepreneurial ecosystem. In addition to its market size, India's allure lies in the strength of its financial market institutions, democratic form of governance, vast domestic market and commitment to economic reforms resulting in a steady and consistent deal flow of diverse investment opportunities across sectors. The sheer breadth and depth of opportunities available from technology and manufacturing to infrastructure and consumer goods in the Indian private credit market distinguishes it from the private credit opportunities available in other emerging economies. The Singapore-SEA bucket focuses on the attractive deal flow of US$ transactions for Singapore-based sponsor and non-sponsor businesses that are well established with regional footprint and need bespoke non-dilutive capital for growth. Singapore serves as a financial gateway to Southeast Asia, offering regulatory stability and access to regional deal flow. Collectively, ASEAN has witnessed robust economic growth, reflected in its GDP expansion. Data from World Economic Forums suggests that over a ten-year period (2012 – 2022), ASEAN countries have accounted for 9% of global GDP growth – paralleled by the growth in the size of its banking and credit markets. The broader geographic focus to include Singapore-SEA helps the strategy benefit from diversification, lower FX drag on account of US$ transactions, and lower withholding taxes on US dollar transactions. Ascertis Credit addresses various risks through its proven and tested underwriting and risk management model, targeting established companies with a track record, investing via secured lending and using strong structuring mechanisms and credit enhancement features such as security, ringfencing assets, escrows and guarantees, as applicable along with strong covenants to create a strong investment profile. Our investment process is anchored in deep underwriting, ongoing monitoring, and a strong emphasis on compliance—enabling it to navigate volatility while preserving investor capital. Ascertis Credit today manages capital for several global, marquee institutions across NA, ME and Asia, and continues to see increasing appetite for its funds on the back of the strong track record delivered by it existing funds. Ascertis Credit is committed to scaling its performing private credit platform, diversifying its offerings across tenors, sectors and geographies, and continuing to lead with its solution-oriented investment philosophy. The firm's recent launch of a short-term income fund within the performing credit fund series reflects its responsiveness to evolving investor needs, while its upcoming flagship fund reinforces its commitment to long-term, structured private credit. With a seasoned team, proven track record, and regional depth, Ascertis Credit is poised to shape the next phase of private credit growth across Asia. Ascertis Credit has emerged as one of Asia's leading private credit managers. What has been the core strategy behind your success over the past decade, especially in sourcing off-market opportunities? As a pioneer and one of the longest investors' in the private performing credit investor in India, Ascertis Credit has built a reputation for delivering bespoke, risk-adjusted private credit solutions to high-growth companies in India and Southeast Asia. This source of capital is often seen to be critical in allowing existing established companies to take advantage of the strong growth prospects in their sector. The firm's success is anchored in its ability to source proprietary, off-market transactions through a unique sourcing engine of c. 500 relationships that the company has built over the years. This has been made possible by its long-standing on the ground presence in India and Singapore, deep local relationships spreading across Tier 2 and 3 cities in India, and a sector-agnostic approach focused on performance and structure over size. This approach has allowed Ascertis Credit to generate consistent and strong returns for its investors across all its funds, and provide access to high growth companies that are not accessible through public markets or typical private equity strategies. Additionally, since the underying exposure is secured debt, the return profile is much stronger and returns more reliable. Over the 11 years, the team has raised four funds and invested over US$ 1.2 billion across portfolio companies in diversified sectors. Ascertis Credit's investment focus is on Asia ex-China, with an emphasis on India and Singapore-SE Asia, representing some of the region's fastest-growing yet underpenetrated credit capital markets.
Sharjah 24
2 hours ago
- Sharjah 24
SRTA launches proactive plan for 5600 trips during Eid
Engineer Yousef Khamis Al Othmani, the head of the SRTA, highlighted the importance of being well-prepared during holidays. He noted that during the Eid al-Adha holiday in 2025, which runs from June 5 to 8, there will be a noticeable rise in public transport users. To handle this, the SRTA has made plans to operate 180 buses on various routes, aiming to complete around 5,600 trips over the four days. During peak times, buses will come every 5 minutes instead of the usual 45-minute wait. This means shorter waiting times and more convenience for everyone traveling. The authority is committed to making travel easy for people visiting family or exploring popular destinations, both within the emirate and outside it. They are also increasing staff at busy bus stations, especially the Jubail Bus Station, which will be open from early morning until late at night to accommodate the larger number of passengers expected during this busy holiday. Regular comprehensive trips The Authority has improved bus services in Sharjah City for the Eid holiday, making travel easier for everyone. They are running a total of 1,144 bus trips each day across 12 different routes, using 104 buses that connect to 543 stops around the city. Al-Othmani pointed out that these efforts are part of a plan to create a well-rounded public transport system that meets the growing need for travel during busy times like holidays. He noted that Route 22 will not be in service during the Eid holiday because the Souq Al Haraj market is closed. To make things easier for passengers, they have made some changes, including quicker arrival times and more ticket sales points at bus stations and inside buses, to minimize delays and crowding. To manage passenger flow, especially at the Jubail station, the teams have stepped up their preparations. They have increased the number of staff on duty and are providing the necessary support to ensure smooth operations. They are also allowing people to book bus tickets in advance and are keeping a close eye on how things are running to maintain a high level of service. Maritime transport During the Eid Al Adha holiday, there will be a special boat service operating between Sharjah and Dubai. Abdul Aziz Al Jarwan, who is in charge of transport at the local authority, announced that there will be four daily trips. These boats will leave from the Aquarium Station in Sharjah and arrive at Al Ghubaiba Station in Dubai, working together with Dubai's Roads and Transport Authority. The trips will run from 2:00 PM to 9:00 PM, with a boat leaving every two hours. Each journey will take about 35 minutes. Passengers are encouraged to arrive at the station at least 15 minutes before their departure to ensure a smooth boarding process. This service is designed to provide more transportation options for everyone and help connect different types of transport. Promoting tourism Al Jarwan shared that the Authority is working closely with the Omani transport company, Mwasalat, to run international route 203. This route connects Sharjah with Muscat, the capital of Oman, and offers two flights each day. This service is expected to encourage tourism between the two countries, especially during the Eid holidays. Passengers can board at Jubail station and travel to Al Athaiba station, making stops along the way. Tickets can be purchased online through Mwasalat Oman's website or at their service points. Public engagement Al Jarwan mentioned that during the Eid holiday, a special call center will be available 24 hours a day to help people book taxis. This includes different types of vehicles like regular taxis, family-sized cars, options for women, vehicles for those with special needs, and electric cars. You can make reservations by phone, through a smartphone app, or by visiting a website. The call center keeps an eye on all the bookings to make sure taxis arrive as fast as possible. It also welcomes feedback from the public regarding bus and taxi services, helps with reports of lost bags, and answers questions about the services offered across the emirate, including Sharjah City and other regions. He highlighted that the call center plays a vital role in connecting with the community, gathering and analyzing feedback to improve services in the future.
Sharjah 24
2 hours ago
- Sharjah 24
Alef breaks ground on AED 1.1 bn 'Al Mamsha Raseel' in Sharjah
The ground-breaking ceremony was attended by Alef officials, representatives from CC7, the contracting company, as well as representatives from the design and engineering teams. The event reflected the company's ongoing commitment to excellence and quality across every stage of the development. Al Mamsha Raseel will offer 2,210 modern residential units, ranging from one- to three-bedroom apartments, each with private balconies. The development will also feature lush green spaces, water features, and interactive fountains, all designed to deliver a fully integrated living experience that prioritises quality of life and aligns with Sharjah's progressive urban vision. On this occasion, Alef, Company stated that the Al Mamsha Raseel project is a strategic step in its journey to redefine the concept of residential communities in the Emirate of Sharjah. The project focuses on developing an urban environment that prioritizes human well-being and integrates quality of life, sustainability, and urban innovation. Al Mamsha is Sharjah's first fully walkable community, designed to offer a safe, pedestrian-friendly environment that adheres to the highest standards of sustainability and urban planning. The addition of Al Mamsha Raseel reinforces Alef's commitment to creating high-quality living spaces that meet the evolving aspirations of residents and investors alike.
