Latest news with #NooraAlFassam
Zawya
26-05-2025
- Business
- Zawya
Kuwait's minister authorizes KIA, CBK for loan operations
KUWAIT - Kuwaiti Minister of Finance and Minister of State for Economic Affairs Noora Al-Fassam issued on Sunday a decree authorizing the Kuwait Investment Authority (KIA) to carry out external loan operations and the Central Bank of Kuwait (CBK) to conduct domestic loan operations on behalf of the ministry. The decree, published in the official gazette (Kuwait Alyoum), is based on the Amiri Decree-Law concerning financing, liquidity, public debt strategy, and the approved financing plan for the fiscal year 2025/2026. The first article of the decree stipulates that the CBK is authorized, on behalf of the Ministry of Finance and in coordination with it, to conduct loan operations in Kuwaiti Dinar or major convertible foreign currencies within the country, in accordance with internationally recognized financial tools and practices. The second article stipulates that the KIA is authorized, on behalf of the Ministry of Finance and in coordination with it, to conduct loan operations in major convertible foreign currencies from the global market, in accordance with internationally recognized financial tools and practices. According to the third article, concerned officials shall implement this decision within their respective jurisdictions and submit periodic reports to the Minister of Finance regarding the actions taken within this decree. The decision takes effect from the date of issuance and will be published in the official gazette. In March, an Amiri Decree-Law No. (60) of 2025 was issued on financing and liquidity, setting the limit for public debt at a maximum of KD 30 billion or its equivalent in major convertible foreign currencies. The decree allows for the issuance of financial mechanisms with maturities of up to 50 years and will remain in effect from its date of enforcement, thereby establishing a long-term legal framework for regulating public debt. All KUNA right are reserved © 2022. Provided by SyndiGate Media Inc. (
Zawya
21-05-2025
- Business
- Zawya
Faisal Al-Gharabally highlights transparency and collaboration as keys to success at third Kuwait Public-Private Partnership Conference
Gulf Bank concluded its platinum sponsorship and active participation in the third Kuwait Public-Private Partnership Conference, held at the Jumeirah Hotel, under the patronage of Her Excellency Eng. Noora Al-Fassam, Minister of Finance, Minister of State for Economic and Investment Affairs, and Chair of the Higher Committee for PPP Projects. Themed 'Partnership Projects: A Promising Start to a New Era,' the event gathered key stakeholders to discuss the shifting dynamics and growing importance of Public-Private Partnerships in driving Kuwait's development agenda. On the second day, speaking during a panel discussion titled 'Shaping the Future of Partnership Projects in Kuwait to Ensure Success' Mr. Faisal Al-Gharabally, General Manager of International Banking at Gulf Bank, emphasized the importance of public sector confidence in proposed projects as a key enabler for banking sector engagement. He emphasized that encouraging all parties to participate in open and transparent discussions about concerns and solutions fosters trust and lays a solid foundation for successful financing. Mr. Al-Gharabally also pointed to other critical factors influencing banks' willingness to finance Public-Private Partnerships, including project payment structures, legal and contractual frameworks, and risk allocation – emphasizing that the party managing the risk must also bear it. Transparency, he noted, remains the cornerstone of successful partnerships, along with granting banks the right to intervene if significant developments arise. Adding to the conversation, Ms. Shamayel Al-Marzouq, Assistant General Manager of Corporate Banking at Gulf Bank, delivered a presentation titled 'Beyond Financing: How Banks Can Lead the Digital Future of Public-Private Partnership Projects.' She advocated for the banking sector to shift its role from conventional financing to becoming a catalyst for innovation, digital advancement, and sustainable growth, fully aligned with the vision and goals of Kuwait Vision 2035. Ms. Al-Marzouq stressed that the next phase of infrastructure development calls for banks to evolve from 'silent funders' into active digital partners in national infrastructure projects. She highlighted the necessity of integrating banks within the digital ecosystem of Public-Private Partnerships to enable smooth digital connectivity, drive innovation, and boost operational efficiency. She also outlined key strategic actions banks can take in collaboration with government entities, including aligning financing approaches with national priorities – particularly for major projects like Mubarak Al-Kabeer Port and the Al-Dabdaba Renewable Energy Project. Other initiatives include establishing centralized digital platforms for bidding and project management, adopting real-time monitoring and reporting solutions, applying data analytics to guide decision-making, and leveraging technology to enhance risk management and ensure greater transparency. Ms. Al-Marzouq also highlighted the significance of financing sustainable projects, citing examples like the Al-Dabdaba Power and Shagaya Renewable Energy project. She highlighted the vital role technology plays in advancing inclusivity and good governance by providing accessible digital infrastructure. She concluded by highlighting the vast opportunities across sectors such as transportation, healthcare, education, and housing. Ms. Al-Marzouq called for the mandatory use of unified digital platforms, increased investment in digital capacity building, training on partnership models, and collaboration with technology firms and government bodies to establish a comprehensive digital ecosystem for Public-Private Partnerships. 'There is a unique opportunity today for Kuwaiti banks to take a leading role in shaping the future of digital transformation and sustainable development,' she said. 'By doing so, we can reinforce Kuwait's position as a smart, modern financial and commercial hub.' Gulf Bank continues to dedicate itself to driving Kuwait's national development and shaping the future of its financial sector through innovation, teamwork, and strong leadership.
Zawya
11-05-2025
- Business
- Zawya
Minister of Finance and Minister of State for Economic Affairs and Investment meets with the Secretary-General of the Digital Cooperation Organization
Opportunities for collaboration on financial transformation and fintech innovation. Building a strong ecosystem for digital investments in Kuwait. Kuwait: Her Excellency, Minister of Finance and Minister of State for Economic Affairs and Investment, Engineer Noora Sulaiman Al-Fassam, chaired a bilateral meeting with Her Excellency Deemah bint Yahya Al-Yahya, Secretary-General of the Digital Cooperation Organization (DCO). Held as part of the Secretary-General's official visit to Kuwait, the meeting focused on exploring opportunities to advance the digital economy and enhance financial inclusion. The session brought together officials from the Ministry of Finance and the Digital Cooperation Organization to discuss the organization's four-year vision for accelerating digital transformation, driving financial innovation, and strengthening strategic cooperation among member states to boost digital startup growth. 'Kuwait and the Digital Cooperation Organization share a unified vision to enhance digital inclusion and build an innovation-driven economy. As a founding member of the organization, Kuwait remains committed to advancing digital transformation in line with its Vision 2035, which prioritizes a digital economy and modernized public services to drive economic diversification and job creation. Today's meeting reaffirms our commitment to positioning Kuwait as a regional hub for digital investments and technological development,' said Her Excellency Al-Fassam. Her Excellency further underscored the importance of sustained cooperation, particularly during Kuwait's presidency of the fifth session of the Digital Cooperation Organization. She emphasized that this strategic partnership would support financial innovation and foster an attractive investment climate for entrepreneurs and digital startups across DCO member countries. The meeting concluded with an agreement to establish dedicated working groups aimed at advancing shared objectives in digital transformation, financial innovation, and startup growth. These working groups will facilitate ongoing collaboration, streamline initiatives, and ensure alignment with the organization's four-year vision, reinforcing Kuwait's commitment to driving progress in the digital economy.
Zawya
12-02-2025
- Business
- Zawya
A sovereign debt issuance from Kuwait seems imminent. How keen are investors?
Any sovereign debt issuance from Kuwait, after a gap of eight years, is expected to be met with a favourable response from investors, despite a recent statement by the IMF that the oil producer's economy is in recession. 'I expect there will be strong appetite for Kuwait's return to the eurobond market after an eight-year hiatus,' said Fady Gendy, Fixed Income Portfolio Manager at the Dubai-based Arqaam Capital. On Monday, Finance Minister Noora Al Fassam said that Kuwait was prepared to return to international debt markets soon. A recent media report also said Kuwait's cabinet is expected to approve a new law that could enable $65 billion to be raised over 50 years. Kuwait's last issuance was in 2017, just before the previous debt law expired. The passage of a law that would allow it to return to the debt markets has been stalled for years by infighting between fractious parliaments and cabinets. In May 2024, the Emir of Kuwait dissolved the cabinet and suspended parts of the constitution for four years. The plan was that, in the interim, the government would undertake a review and propose amendments within six months. Eight months later the cabinet still legislates by passing decrees with the Emir giving the final stamp of approval. Kuwait, which accounts for about 7% of the world's hydrocarbon reserves, depends on oil receipts for up to 87% of revenue. The OPEC+ oil production restrictions have squeezed Kuwait's oil exports, and, by extension, its revenue inflows. The IMF has forecast a 2.8% contraction in 2024, followed by a recovery in 2025 as the production cuts unwind. In its budget for 2025-26 announced last week, Kuwait pencilled in a deficit of $20 billion, or 13% of GDP. 'Considering oil prices have been lower than what Kuwait has budgeted and are expected to continue at the same level — provided there aren't any significant geopolitical events and changes in the OPEC+ agreed production cuts — raising of debt could help address any slowdowns in the implementation of economic reforms planned by the government and help manage part of the fiscal deficit,' Bhavesh Gandhi, Partner at KPMG in Kuwait, told Zawya. Investor appetite A potential sovereign issuance will be backed by very strong external buffers, including liquid assets of the Kuwait Investment Authority (KIA) and very low level of public debt. S&P Global Ratings estimates the KIA's total assets, including the General Reserve Fund (GRF), a liquid fund that is used to finance deficits, and the much larger Future Generations Fund, to average 447% of GDP from 2024 to 2027. In the absence of a debt law, the government is forced to dip into the depleting GRF to fund its fiscal deficits. 'Demand will primarily come from a mix of local buyers, including bank treasury desks for whom Kuwait risk will carry zero or minimal capital charge, as well as rating-sensitive international buyers, predominately from Asia. Emerging market-dedicated and crossover investors may be less inclined due to the low yield and spread, a position reflected in their current underweight stance on the other AA/A-rated GCC sovereign credits,' said Gendy. Kuwait's only outstanding eurobond issued, maturing in March 2027, is now yielding around 4.70%. In comparison, the Abu Dhabi eurobond maturing in October 2027 yields around 4.50%, reflecting Abu Dhabi's higher credit rating and lower break-even oil price. The credit profile of Kuwait is on par with the best in the region, affirmed Ansari. 'So, pricing of Kuwaiti bonds/sukuk is not expected to be very different from the recently issued bonds from regional sovereigns.' KPMG's Gandhi said while yields are expected to remain tight, Kuwait's AA- rating would present investors with a risk diversification opportunity. No urgency, however The debt law, which has been discussed in Kuwait's Parliament previously, was opposed by most of the MPs, who wanted fiscal reforms measures to be passed first. 'One of the pillars of the National Development Plan, i.e., Vision 2035, is a sustainable diversified economy. We are seeing the Kuwait Government move in that direction. Having said that, passing the Debt Law could support the diversification efforts, as the government will be able to launch infrastructure and tourism projects that may have come to a standstill,' added Gandhi. According to the Fitch Ratings forecast for FY 2025, assuming a resumption of borrowing, 30% of Kuwait's deficit would be financed by debt issuance. Its current outstanding debt is around $9 billion, according to LSEG data. Junaid Ansari, the director of investment strategy and research at Kuwait-based Kamco Invest, said, however, that there is sufficient projects activity in the country, and that coupled with the current oil price at above the $75/barrel mark, any urgency to issue debt to finance fiscal deficit has subsided. In fact, he expects the fiscal deficit to fall below the budgeted amount. 'We do not expect the government to hurry in issuing sizeable bond/sukuk. However, we can expect a few issuances that are aimed at merely entering the market and testing demand.' According to him, the Kuwait government is serious about expanding the non-oil sector. 'This was evident from the activity in the projects market in Kuwait during 2024, with project awards at KWD 9.5 billion, the highest since 2017. And the bulk of these projects were driven by the government. We can expect to see an acceleration in non-oil activity in the near term.' (Reporting by Brinda Darasha; editing by Seban Scaria)
