Latest news with #Al-Bahar
Kuwait Times
3 days ago
- Business
- Kuwait Times
KFAED inaugurates Velana int'l airport expansion in Maldives
KUWAIT: The Kuwait Fund for Arab Economic Development (KFAED) on Sunday inaugurated the expansion and enhancement project of Velana International Airport in the Maldivian capital, Male, as part of a joint Arab development initiative. The ceremony was held in the presence of Maldivian President Mohammad Muizzu, Acting Director General of KFAED Waleed Al-Bahar, several government officials, and representatives from the Arab Coordination Group. In a statement issued by KFAED, the Maldivian President expressed deep appreciation for the generous financial contributions provided by KFAED, the Saudi Fund for Development, Abu Dhabi Fund for Development, and OPEC Fund for International Development. He noted that the soft loans from these institutions enabled the construction of a modern passenger terminal, supporting the country's infrastructure goals and boosting its vital tourism sector. President Muizzu hailed the project as a model of joint development and cooperation, stating the new airport facilities will enhance passenger experience, boost the Maldivian economy, and support the nation's rapidly growing tourism industry. For his part, Al-Bahar stated that KFAED's total contribution to the airport's expansion amounted to KD 37.62 million (USD 123 million).He noted that the expanded airport is expected to serve around 7.3 million passengers annually, helping to stimulate tourism, enhance trade, and open new economic opportunities aligned with sustainable development. Al-Bahar highlighted that the partnership between Kuwait and the Maldives dates back to 1976, when KFAED provided its first soft loan of USD five million to support the development of the airport, then known as Hulhule Airport. Since then, KFAED has extended 15 loans totaling KD 61.1 million (USD 199.8 million) to finance development projects in key sectors, including water and sanitation, transport, healthcare, disaster recovery, coastal protection, and fisheries. He reaffirmed Kuwait's commitment to supporting the Maldives' development journey and expressed optimism for exploring new areas of cooperation in the coming years. Al-Bahar also praised the ongoing partnership between KFAED and the Arab Coordination Group in financing transformative projects that leave a lasting impact on communities. The Fund has also provided the Maldives with technical assistance worth KD 1.3 million (USD 4.2 million) and a grant of KD 583,000 (USD 1.9 million) from Kuwait's 'Decent Life Fund for Islamic Countries' to support food security and improve living standards— KUNA
Kuwait Times
5 days ago
- Business
- Kuwait Times
Al-Bahar: Kuwait's operating landscape is promisingIn an interview with CNBC International
'We remain optimistic about sustained momentum into H2 2025' KUWAIT: Shaikha Al-Bahar, Deputy Group Chief Executive Officer at National Bank of Kuwait (NBK), affirmed that the Bank delivered a strong quarterly performance, recording a 24 percent increase, while profitability for the first half of the year grew by 7.8 percent year-on-year. In an interview with CNBC International, Al-Bahar noted that second-quarter profits were supported by provision recoveries and lower credit provisions, in addition to a healthy mix of interest income, which grew by 1.5 percent year-on-year, and a strong 8.9 percent increase in non-interest income. Al-Bahar pointed out that net operating income grew by 3.1 percent, as the Bank delivered solid year-on-year growth in business volume, an outcome that underscores the success of its diversification strategy. She noted that this performance was fueled by continued momentum across various business segments and the Bank's branch network, adding that the loan portfolio grew by 12.1 percent as of June 2025. Al-Bahar stated that the government has recently issued the executive regulations of the new corporate tax law, indicating its effective implementation in 2025. She explained that, as NBK Group is classified as a multinational entity under the new law, its effective tax rate rose from 9.2 percent in the first half of 2024 to 16 percent. This impact will be reflected in the Group's quarterly reports throughout the year, though its effect on full-year results is expected to fade beyond 2025. Dividend distribution Commenting on the decision to retain interim dividends, Al-Bahar said: 'NBK remains committed to rewarding its shareholders while maintaining a focus on long-term value creation. The decision to carry forward first-half profits to the end of the year and prioritize final dividend distribution was driven by the promising development opportunities across our markets, as well as the anticipated uptick in local activity. Kuwait is currently entering the execution phase of several mega projects, which will present significant opportunities for the banking sector, and for NBK in particular.' Al-Bahar added that the temporary capital ratio constraints resulting from an interim distribution would have limited the Bank's growth prospects over the course of the year. Kuwait's operating environment Responding to a question on the outlook for the operating environment in Kuwait, Al-Bahar stated that conditions remain highly favorable, with a very positive outlook for the period ahead. She added that the current economic climate presents promising opportunities for the Bank both in Kuwait and across other markets where it operates. Commenting on the impact of the new tariffs and taxes imposed by the US administration, Al-Bahar emphasized that GCC economies are closely tied to fluctuations in the oil market. Fortunately, she noted, the tariffs do not extend to oil and gas, although some price volatility may persist due to ongoing adjustments in the global economic growth outlook. Al-Bahar stressed that a prolonged decline in oil prices could pose challenges to the fiscal positions of GCC countries. However, she pointed out that most of these countries possess substantial sovereign reserves, which would significantly support the financing of major projects and business opportunities. Kuwait's economic outlook Regarding the prospects of the Kuwaiti economy, Al-Bahar reiterated her optimistic outlook, noting that the outlook remains highly positive, driven by emerging growth opportunities, steady progress in implementing strategic government plans, and strong momentum to empower the private sector. She added that the government continues to stimulate the economy, which will generate significant benefits for the banking sector. Furthermore, she explained that a near-term challenge for banking sector profitability may stem from tightening margins. Despite some liquidity declines in other markets, margins remain compressed, and the anticipated shift by the US Federal Reserve toward lower interest rates will undoubtedly place additional pressure on spreads and, consequently, profitability. That said, this impact may be mitigated by stronger economic momentum and broad-based growth across multiple sectors. She explained that NBK's regional and international growth plays a vital role in diversifying income streams and reinforcing the strength of its business operations. H2 2025 forecast Commenting on the outlook for the second half of the year, Al-Bahar emphasized that the government's approval of the Financing and Liquidity Law marks a positive step for the economy, as it supports the government's ability to implement its expansionary plans. She noted that following the law's approval, the Central Bank began issuing local debt instruments on behalf of the government amounting to KD 700 million — a move that enables the deployment of previously non-interest-bearing deposits with the Central Bank and significantly boosts the Bank's profitability. 'We look forward to continued issuances through year-end as a means to effectively deploy excess liquidity,' Al-Bahar said. 'Our optimism is further reinforced by the government's stated intention to issue between KD 3 billion and KD 6 billion in debt instruments over 2025–2026. Similarly, Kuwait Investment Authority (KIA) has issued RFPs to international parties, signaling the potential issuance of sovereign bonds worth up to $6 billion. All of this points to a wealth of promising opportunities for banks operating in Kuwait.' • We recorded substantial growth in business volumes, fueled by sustained momentum across multiple sectors and our international branch network • Our ongoing regional and international expansion continues to diversify revenue streams and reinforce the Group's operational strength • The economic outlook remains positive, supported by emerging growth opportunities and steady progress on government-led reform initiatives • We have a lucrative dividend policy - one that strikes a balance between delivering attractive returns to shareholders and managing capital ratios prudently
Kuwait Times
22-07-2025
- Business
- Kuwait Times
NBK reports KD 315.3 million in net profit for six-month period of 2025
NBK reports KD 315.3 million in net profit for six-month period of 2025 Bank's strong performance reflects its ability to navigate varying economic conditions KUWAIT: National Bank of Kuwait (NBK) has announced its financial results for the six-month period ended June 30, 2025, reporting a net profit of KD 315.3 million ($1.0 billion), compared to KD 292.4 million ($957.8 million) for the corresponding period in 2024, marking a year-on-year increase of 7.8 percent. Profit before tax reached KD 401.5 million ($1.3 billion) during the period, marking a 17.0 percent increase compared to KD 343.1 million ($1.1 billion) in the corresponding period of 2024. As of the end of June 2025, total assets rose by 15.9 percent year-on-year to KD 43.6 billion ($143.0 billion), while total loans and advances grew by 12.1 percent year-on-year, reaching KD 25.5 billion ($83.5 billion). Customer deposits grew by 9.5 percent on an annual basis, reaching KD 23.9 billion ($78.2 billion) by the end of June 2025. Meanwhile, shareholders' equity reached KD 4.2 billion ($13.9 billion), reflecting a growth of 10.3 percent year-on-year. The Board of Directors has opted to retain interim earnings till year-end, focusing on end of year final dividend distribution. The decision reflects the Board's commitment to strengthening the Group's balance sheet in seizing promising growth opportunities across its operating markets, particularly in light of the anticipated pickup in business activity in Kuwait, while maintaining flexibility in managing interim capital adequacy ratio. A robust strategy Commenting on the Bank's 1H2025 financial results, Hamad Al-Bahar, NBK Group Chairman stated, 'NBK's strong performance reflects its ability to navigate varying economic conditions, even amid heightened geopolitical challenges and global trade tensions stemming from recent US tariffs. The Bank's solid operational results underscore the strength of its well-established strategy, anchored in a diversified business model and prudent risk management.' Al-Bahar emphasized that NBK's strong balance sheet, solid capital base, and high asset quality reinforces the Bank's ability to deliver sustainable profitability and optimal returns for shareholders and customers, while continuing to support the prosperity of the communities in which it operates. Al-Bahar noted that the Bank achieved several milestones across various areas during the first half of the year, most notably its selection as Kuwait's Main Settlement Bank. He emphasized that this recognition reflects years of continuous investment in enhancing the Bank's digital infrastructure, which qualified NBK to meet the technical and operational requirements set by Kuwait Clearing Company (KCC); securing the highest ratings among participants in the Central Counterparty Project (CCP). Reflecting its long-standing commitment to sustainability, Al-Bahar noted that NBK has continued to make significant strides toward a more sustainable future. He pointed to recent upgrades in the Bank's ESG ratings by leading global agencies, including Morningstar Sustainalytics and MSCI, as clear recognition of NBK's dedication to environmental stewardship, social responsibility and sound governance practices. This was reinforced by the publication of the first allocation and impact report for its debut USD 500 green bond issued in June 2024, which is the first issuance of its kind in Kuwait. The report provides relevant information that highlights the allocation of proceeds from the green bond as of March 31, 2025 and the estimated environmental impact during the reporting period. Isam J Al-Sager NBK Group Vice Chairman and CEO Hamad Al-Bahar NBK Group Chairman Sustainable growth Meanwhile, Isam J Al-Sager, NBK Group Vice Chairman and CEO, said: 'Once again, NBK continues to affirm the resilience of its business model and its agility in navigating a shifting operating environment, consistently delivering profit growth across economic cycles. This performance underscores the strength of the Group's geographic diversification strategy and the effectiveness of its long-term approach to driving sustainable growth.' He noted that the Bank delivered solid operating performance across its core business segments during the first half of 2025, with the Group's net operating income rising by 3.1 percent year-on-year to reach KD 631.4 million ($2.1 billion). Al-Sager highlighted the strong contribution of the International Banking Group (IBG), as well as Boubyan Bank — the Islamic banking arm of NBK — to the Group's net operating income and profitability during H1 2025. In addition, NBK Wealth continues to strengthen its position as the leading wealth management firm in Kuwait and among the largest in the region; offering a comprehensive suite of private banking, wealth and investment management solutions and advisory services through an integrated global network. During the first half of 2025, NBK continued to deliver an enriched banking experience, underpinned by innovative solutions tailored to meet evolving customer needs. The Bank further reinforced its digital leadership by introducing a suite of carefully designed digital services and products aligned with customer expectations. He added that NBK remains committed to investing in technology and innovation as a core driver of growth, underscoring the Bank's focus on strengthening its competitive edge in the domestic market and expanding its presence across international markets. Regarding NBK's recent $800 million PNC6 Additional Tier 1 bond issuance, Al-Sager emphasized that strong investor demand afforded the Bank a notable pricing advantage. He noted that the order book peaked at $2.2 billion, with subscriptions exceeding 2.75x the issue size; driven by solid interest from a diverse base of global investors and financial institutions. The operational environment Commenting on the local operating environment, Al-Sager expressed cautious optimism regarding the outlook for project activity in the second half of the year and beyond. He pointed to the government's announcement of 141 projects under the 2025/2026 annual development plan, including large-scale ventures such as Mubarak Al-Kabeer Seaport, the expansion of the T2 passenger terminal at Kuwait International Airport, and the New Al-Sabah Hospital, as key drivers of anticipated momentum. Furthermore, he emphasized that the adoption of further economic legislative reforms would serve as a catalyst for accelerated economic growth, commending the government's commitment to enacting key legislation in the near term, including the anticipated approval of the mortgage law. He also underscored the importance of empowering the private sector to take a leading role in economic activity under Kuwait Vision 2035, noting that such measures are vital to enhancing the local business climate and supporting the growth of the national economy going forward. Prestigious awards During the first half of 2025, NBK garnered several prestigious accolades that reaffirm its leadership both locally and regionally. These included being named Best Bank in Kuwait - 2025, as well as receiving awards for Best Retail Bank and Best Bank for SMEs in Kuwait by MEED International Magazine. Euromoney magazine also honored the Bank with multiple accolades in 2025, naming NBK Kuwait's Best Bank for ESG, Kuwait's Best Bank for Large Corporates, and Kuwait's Best Bank for Diversity and Inclusion. Moreover, NBK has also garnered multiple accolades across the MENA region, including Best Loan Offering - 2025, Best Contactless Payment Experience, and Payment Solution for SMEs, awarded by MEED Magazine. Key financial indicators for H1 2025 •Net operating income stood at KD 631.4 million ($2.1 billion), up 3.1 percent year-on-year. •Total assets grew by 15.9 percent year-on-year, at KD 43.6 billion ($143.0 billion). •Total loans and advances increased by 12.1 percent year-on-year to KD 25.5 billion ($83.5 billion) •Customer deposits grew by 9.5 percent year-on-year to KD 23.9 billion ($78.2 billion). •Shareholders' equity amounted to KD 4.2 billion, ($13.9 billion) registering an annual growth of 10.3 percent. •Strong asset quality metrics, with NPL/gross loans ratio at 1.33 percent and an NPL coverage ratio of 252 percent. •Robust Capital Adequacy Ratio of 16.4 percent, comfortably exceeding regulatory requirements. Hamad Al-Bahar The Bank's strong financial performance underscores its ability to adapt effectively to shifting economic conditions
Kuwait Times
21-06-2025
- Business
- Kuwait Times
Kuwait Fund lights up in blue to mark World Refugee Day
KFAED, UNIDO ink deal to support fragile states KUWAIT: The Kuwait Fund for Arab Economic Development (KFAED) illuminated its headquarters in blue on Thursday in solidarity with refugees worldwide, reaffirming its humanitarian commitment on the occasion of World Refugee Day. The symbolic gesture reflects Kuwait's longstanding support for displaced populations and its call for international solidarity to alleviate their suffering. Acting Director General of KFAED, Waleed Al-Bahar, stressed in a press statement that both the State of Kuwait and the Fund have played a vital role in extending aid to refugees globally, working in collaboration with various UN agencies and international organizations dedicated to refugee and human rights issues. Al-Bahar noted that the Fund maintains strong partnerships with the United Nations High Commissioner for Refugees (UNHCR), the UN Relief and Works Agency for Palestine Refugees (UNRWA), and UNICEF. It also collaborates with institutions such as the Children's Cancer Center in Lebanon, the King Hussein Cancer Foundation in Jordan, and the Kuwait Red Crescent Society (KRCS) to implement projects aimed at improving the living and health conditions of Syrian, Palestinian, and Rohingya refugees. 'This cooperation stems from our firm belief in the need to secure a dignified life and protect the rights of refugees in a sustainable manner,' he said, highlighting Kuwait's historic humanitarian efforts in supporting vulnerable communities across the globe. Al-Bahar underlined that World Refugee Day, observed annually on June 20, serves to honor the strength and resilience of displaced individuals forced to flee due to war, persecution, or natural disasters. He reaffirmed KFAED's continued efforts to enhance refugees' living conditions through impactful partnerships with regional and international stakeholders. Acting Director General of the Kuwait Fund for Arab Economic Development, Waleed Al-Bahar, with Director General of the United Nations Industrial Development Organization (UNIDO), Gretchen Mulller.- KUNA photos KFAED, UNIDO ink deal Separately, on the sidelines of the 4th OPEC Fund Development Forum held in Vienna, KFAED signed a joint coordination framework with the United Nations Industrial Development Organization (UNIDO) to identify and finance development projects in conflict-affected regions. Speaking to KUNA, Al-Bahar said the agreement marks the first official collaboration between KFAED and UNIDO, aiming to facilitate development efforts in fragile states, including the occupied Palestinian territories, Syria, Yemen, and Sudan. 'This memorandum is a starting point for strategic long-term cooperation,' Al-Bahar said, adding that the initiative will leverage UNIDO's technical expertise to deliver sustainable solutions in crisis-hit areas. For his part, UNIDO Director General Gerald Müller underscored the agency's focus on implementing practical, high-impact projects, particularly in Africa and Latin America. He highlighted the importance of strong partnerships to enhance industrial development, food security, and renewable energy deployment in vulnerable regions. 'Our core work centers on implementation,' Müller stated, emphasizing the organization's experience in hydrogen energy, infrastructure networks, and water and energy management. He noted that food security remains a priority area for Arab and African nations, and UNIDO brings substantial technical experience to this sector. The 4th OPEC Fund Development Forum, held under the theme 'Transformation Empowers Our Future,' brought together heads of state, policymakers, experts, and innovators to advance inclusive growth and equitable transformation, with a focus on South-South cooperation.- KUNA
Arab Times
19-06-2025
- General
- Arab Times
KFAED illuminates its headquarters in blue to mark World Refugee Day
KUWAIT CITY, June 19: The Kuwait Fund for Arab Economic Development (KFAED) lit its headquarters in blue to mark World Refugee Day, reaffirming Kuwait's unwavering humanitarian stance and emphasizing the importance of international solidarity in alleviating the suffering of refugees around the globe. In a press statement issued Thursday, Acting Director General of the Fund, Waleed Al-Bahar, underscored Kuwait's and the Fund's long-standing commitment to supporting refugees through collaboration with global humanitarian agencies and organizations concerned with refugee welfare and human rights. Al-Bahar highlighted KFAED's strategic partnerships with major international organizations such as the United Nations High Commissioner for Refugees (UNHCR), the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA), and the United Nations Children's Fund (UNICEF). He further noted that the Fund also works closely with regional humanitarian and medical institutions, including the Children's Cancer Center in Lebanon, the King Hussein Cancer Foundation in Jordan, and the Kuwait Red Crescent Society (KRCS), by signing agreements to finance development projects that enhance the living and health conditions of Syrian, Palestinian, and Rohingya refugees. "This cooperation reflects our belief in the necessity of providing a dignified life and sustainable daily support for refugees," Al-Bahar stated. "Kuwait, throughout its humanitarian history, has continuously adopted and implemented initiatives to support vulnerable populations, reflecting the nation's enduring legacy of compassion and generosity." Al-Bahar pointed out that World Refugee Day, observed annually on June 20, serves to honor the resilience and courage of displaced individuals who have fled their homelands due to conflict, persecution, or natural disasters. He emphasized the Fund's commitment to continuing its support through effective development and humanitarian partnerships in coordination with both regional and international allies. 'The Kuwait Fund will remain steadfast in its mission to uplift refugees and improve their living conditions as part of a broader global effort to ensure protection, stability, and dignity for all,' he concluded.
