Latest news with #Shariacompliant
Zawya
4 days ago
- Business
- Zawya
Gulf Bank records KD 24mln in net profit for the first half of 2025
Ahmad Mohammad Al-Bahar: Gulf Bank delivered resilient performance with strategic clarity despite a complex operating environment. The Bank's potential conversion to Sharia-complaint aligns with our vision of expanding and diversifying our reach and offerings. We look ahead to the second half of the year with confidence in our strategic direction and the strength of our team. Waleed Khaled Mandani: Our results reflect strong execution and a prudent approach to managing our operations. We continued to maintain a balanced approach between credit expansion and asset quality, ensuring the resilience and integrity of our loan book. Recent Government debt issuances could provide banks with added flexibility to manage their balance sheets and capture emerging financing opportunities. Kuwait: Gulf Bank K.S.C.P. announced its financial results for the first half ending 30 June 2025. The Bank reported a net profit of KD 24.0 million, a decline of KD 4.2 million or 14.8% compared to 2024 first half net profit of KD 28.2 million. In addition, Gulf Bank recorded an operating income of KD 91.8 million for the first half of 2025, representing a decline of 5.3% compared to the same period of last year. Moreover, operating profit before provisions and impairments was KD 44.9 million, representing a decline of 14.7% compared to the first half of 2024. As for the second quarter ending 30 June 2025, Gulf Bank reported a net profit of KD 14.7 million and an operating income of KD 47.8 million, both representing a slight decline of 4.3% and 1.7% respectively, when compared to the same period of the prior year. However, when compared to the first quarter of 2025, net income has increased from a reported KD 9.4 million in the first quarter to KD 14.7 million for the second quarter, a significant improvement of KD 5.3 million or 57.0%. Similarly, operating income increased by KD 3.8 million or 8.7% in the second quarter when compared to the first quarter of 2025. Financial Performance The decline in net profit for the first half of 2025 is attributed to the decline in net interest income of KD 4.9 million or 6.3%, coupled with an increase in operating expenses of KD 2.6 million or 5.8%, compared to the same period of 2024. However, these declines were partially offset by an improvement in total provisions, which declined by KD 3.4 million or 14.7% year-on-year, reaching KD 19.6 million in the first half of 2025. As for asset quality, the non-performing loans (NPL) ratio was 1.4% as of 30 June 2025, compared to the prior year level of 1.2%. Additionally, the Bank continues to have significant non-performing loans coverage ratio of 317% including total provisions and collaterals. Total credit provisions as of 30 June 2025 reached KD 275 million whereas IFRS 9 accounting requirements (i.e., ECL or expected credit losses) were KD 180 million. As a result, the Bank has a healthy excess provision level of KD 96 million, above and beyond what is required by the IFRS 9 accounting requirements. Compared to 31 December 2024, total assets declined by 2.4% to KD 7.3 billion, whereas net loans and advances increased by 3.8% to KD 5.7 billion. On the other hand, total deposits stood at KD 5.4 billion and total Shareholders' equity reached KD 825 million. The Bank's regulatory Tier 1 ratio of 14.6% was 2.6% above the regulatory minimum of 12% and the Capital Adequacy Ratio (CAR) of 16.8% was 2.8% above the regulatory minimum of 14%. Strategic Clarity Commenting on the financial results for the first half of 2025, Gulf Bank Chairman Mr. Ahmad Mohammad Al-Bahar stated: 'Gulf Bank's performance during the first half of 2025 demonstrates resilience and clarity in the face of a complex operating environment. Rising geopolitical tensions and oil price fluctuations have added volatility to regional markets and shifted fiscal priorities. Despite these headwinds, Gulf Bank has maintained its solid fundamentals and strategic direction, enabling us to remain adaptive and forward-looking. He continued: 'One of the most significant initiatives under consideration is the potential conversion of Gulf Bank into a fully Sharia-compliant institution. This transformation aligns with our long-term vision and would allow us to expand our reach, diversify our offerings, and better serve the evolving needs of our clients. Moreover, we have signed a Memorandum of Understanding with Warba Bank stating the basis of cooperation in assessing the proposed merger between both banks independently ensuring the best interest of all the Bank's shareholders in line with regulatory controls.' Mr. Al-Bahar concluded: 'We look ahead to the second half of the year with confidence in our strategic direction and the strength of our team. On behalf of the Board of Directors, I extend my appreciation to our shareholders, employees, and customers for their continued trust and support. We also thank the Central Bank of Kuwait and regulatory authorities for their guidance. Gulf Bank remains committed to delivering high-quality banking services and supporting Kuwait's financial future.' Operational Discipline Gulf Bank Acting Chief Executive Officer, Mr. Waleed Khaled Mandani, stated: 'Despite persistent pressure on margins across the sector, our second quarter results reflect strong execution and a prudent approach to managing our operations. We continued to maintain a balanced approach between credit expansion and asset quality, ensuring the resilience and integrity of our loan book. Our low non-performing loan ratio and high coverage levels underscore the effectiveness of our risk management framework and our ongoing commitment to financial stability.' He added: 'We are also advancing our internal readiness for a potential Islamic Sharia-compliant conversion subject to being granted with the necessary regulatory and shareholders' approvals. The essential systems, governance frameworks, and talent are being explored for a smooth transition. At the same time, we continue to deliver practical banking solutions and maintain the agility needed to respond effectively to changing market conditions.' Mr. Mandani further noted: 'Recent government debt issuances, estimated at KD 600 million locally and another potential USD 6 billion internationally are expected to support government spending on capital development projects across vital sectors including infrastructure, housing, and logistics, thus accelerating economic activity and enabling faster participation by banks in financing national initiatives. Moreover, such instruments could provide banks with added flexibility in managing their balance sheets and capturing emerging financing opportunities. We remain opportunistic in utilizing these tools to support our growth plans.' Credit Ratings and Recognitions Gulf Bank's financial strength and operational resilience were affirmed by leading credit rating agencies. Fitch Ratings assigned a Long-Term Issuer Default Rating (IDR) of 'A' with a Stable Outlook, while Moody's rated long-term deposits at 'A3' with a Positive Outlook. Capital Intelligence affirmed a Long-Term Foreign Currency rating of 'A+' with a Stable Outlook, further highlighting the Bank's stability and sound risk management practices. Reinforcing its position as a digital leader in the region, Gulf Bank has been awarded the 'Best Mobile Banking Application and Experience' by MEED business intelligence platform during the Middle East and North Africa Banking Excellence Awards ceremony. This prestigious recognition highlights Gulf Bank's ongoing commitment to delivering an advanced, exceptional digital banking experience to meet customer expectations and enhance ease of access to banking services. Responsible Banking During the second quarter of 2025, Gulf Bank advanced its ESG agenda through impactful environmental and social initiatives aligned with its 2030 Sustainability Strategy. A key milestone during the quarter was the official launch of the Bank's Sustainable Finance Framework and internal Sustainability Risk Management Policy, aimed at integrating ESG considerations into lending decisions, operations, and risk oversight. In parallel, the Bank remained active across various community initiatives, with an emphasis on youth development, financial literacy, and education. These programs reflect Gulf Bank's ongoing commitment to supporting inclusive growth, empowering the next generation, and contributing to Kuwait's broader sustainable development goals. Key Financial indicators for the first Half 2025: First half 2025 net profit of KD 24 million. First half 2025 operating income of KD 91.8 million. Net loans and advances grew by 3.8% year-to-date to reach KD 5.7 billion. Non-performing loan ratio as of 30 June 2025 was 1.4%, with a solid non-performance loan coverage ratio of 317% including total provisions and collaterals. Capital ratios as of 30 June 2025, Tier 1 ratio was 14.6% and Capital Adequacy Ratio (CAR) was 16.8%.
Khaleej Times
15-07-2025
- Business
- Khaleej Times
UAE-built crypto exchange launched by BurjX with Sharia-compliant features in pipeline
A new UAE-based cryptocurrency platform has officially launched with an ambitious plan to reshape digital asset trading in the region — and a long-term vision to offer Sharia-compliant products that meet both regulatory and religious standards. BurjX, co-founded by Canadian crypto entrepreneurs Omar Abbas and Adam Ferris, went live on Tuesday, July 15, with approval from the Abu Dhabi Global Market (ADGM). The platform allows users to trade more than 100 digital assets directly in UAE dirhams, with funds safeguarded under institutional-grade security and compliance frameworks. But while the exchange is now operational, its most distinctive offering — Sharia-compliant crypto products — is still in the works. Stay up to date with the latest news. Follow KT on WhatsApp Channels. 'It's not going to be available from day one,' Abbas clarified to Khaleej Times. 'But we are working on that as a rollout product for sure.' He added that any such offerings will be vetted and approved by recognised Sharia authorities before launch. 'We will partner with the appropriate Sharia boards, and when we do launch, it's going to be approved by the appropriate Sharia regulators,' he said. No definitive timeline has been set. Regulated, secure and easy to use Licenced by the Financial Services Regulatory Authority (FSRA) of ADGM, BurjX is both a broker and custodian. Client assets are stored using Fireblocks, a globally trusted custody solution, and protected by a comprehensive insurance policy covering hot and cold wallets. 'Our clients' investments are safeguarded by Fireblocks — it's institutional-grade custody infrastructure, backed by insurance,' Ferris said during the launch. The platform also supports instant deposits and withdrawals in dirhams, integrated directly with UAE banks. Abbas described this as a key differentiator: 'That's our bread and butter — making it super easy to get your money in and out of crypto in dirhams, with minimal friction.' From a compliance standpoint, the platform incorporates robust onboarding, trade surveillance and wallet risk policies to screen out bad actors. 'We're focused on building something safe, regulated, and secure — not just fast,' Abbas said. Not just for whales — or day traders While built on institutional infrastructure, BurjX is designed to support users of all experience levels. 'Whether you're a first-time trader like my own mother, or managing an institutional desk, we built this for you,' Abbas said. The platform features more than 100 fully vetted digital assets at launch — including major tokens like Bitcoin, Ethereum, Solana, Dogecoin, and others — and spans multiple sectors such as AI, real-world assets and Layer 1 blockchains. 'It's not just about the names,' he explained. 'We're enabling users to build a diversified portfolio across different categories of the market.' For high-net-worth investors, BurjX has launched a Private Client Group and OTC desk, offering personalised execution, deep liquidity and white-glove service. 'It's a premium experience with the clarity of private wealth, the control of institutional-grade execution, and the confidence of a regulated platform,' Abbas added. UAE-first, founder-built — and personally funded BurjX's founders repeatedly emphasised that the platform was not only built in the UAE but designed specifically for the region's investors. 'We are not offshore entities entering the region. We're homegrown and globally headquartered in ADGM,' Ferris said. 'We're building for this region.' Abbas said the team chose to base themselves entirely in the UAE. 'Our entire team — engineers, designers, compliance leaders — is based here,' he said. 'Each one of them is like a partner in the company. They deal with it with care and obsession.' And the founders didn't just commit their time — they risked everything. 'I sold my house, sold a big stake of my Index equity, uprooted my family and landed in the UAE, risking everything on a belief that this region deserves something better.' When asked whether that sacrifice had been worth it, he said: 'If I had known it would take this long — almost three years — I might not have done it. But now that we're here, now that it's Day One, I can tell you it was worth it. This journey took everything out of me. It tested me, personally and professionally. But we showed up every day, and we built something real. Something this region can trust. 'Not just another crypto exchange' The founders describe BurjX as fundamentally different from existing exchanges that have expanded into the region from abroad. 'What you're witnessing today isn't just another crypto trading platform,' Abbas told attendees during the launch event in Abu Dhabi. 'This is the next category leader for the Mena region, built from the ground up in the UAE — the capital of capital.' Abbas previously co-founded NDAX, Canada's largest regulated exchange, which processed over $20 billion in trading volume and served more than 500,000 users. His new venture, he says, is not a copy-paste operation. 'This time, we came to raise the bar. To build something better, something that's homegrown. In a region that's shaping the future of finance.' Despite launching at a time of surging global interest in crypto, BurjX's founders insist they are not chasing headlines. 'We're not here to capture a significant market share,' Abbas told reporters. 'We just want to focus on building a profitable platform, then roll out new products the market needs.' He added that they have no interest in replicating the hype cycle often associated with crypto launches. 'We're not just focused on hype. We're more interested in putting together a product you can comfortably use, trust, and refer your friends to.' Asked what success would look like a year from now, Abbas answered simply: 'Profitability — and being part of a regulated ecosystem that raises the bar.' Why ADGM? 'ADGM was the first regulator to pioneer a comprehensive virtual asset framework,' Abbas noted. 'We knew that if we could meet the bar here, we'd be building on the strongest foundation possible.' Ferris added: 'When you're building a financial services firm, you need a foundation that you can rely on. Even if the bar is high, that's exactly what you want.' The pair believe the UAE offers a combination of regulatory clarity, economic momentum and untapped potential. 'This region, especially the UAE, is going to be even more exponential in growth over the next 10 to 15 years than we've seen before,' Ferris explained. 'You want to be in a market with a stable regulatory framework and serious growth.' 'No more platforms built abroad, operated overseas, and plagued by delays and confusion,' Abbas concluded. 'BurjX is built for us.' As users began scanning the QR code projected on the launch screen to download the app, he added: 'This is just the beginning. Today, the belief becomes real.'
Zawya
14-07-2025
- Business
- Zawya
Sukna launches MENA's first open-ended, Sharia-compliant direct financing fund
Sukna Capital has received official approval from the Saudi Capital Market Authority (CMA) to launch the Sukna Fund for Direct Financing. SFDF is KSA's first open-ended, Sharia-compliant direct lending fund, marking a regulatory milestone for non-bank financing in MENA. As a CMA-licensed alternative asset investment platform, Sukna is now authorized to offer institutional investors access to a vehicle providing non-dilutive, scalable financing for small and medium-sized enterprises (SMEs) seeking accelerated growth without equity dilution. Unlike traditional private credit vehicles, the open-ended fund structure enables investors to enter and exit at regular intervals, offering periodic liquidity with no long lock-up periods. For SMEs, this unlocks access to asset-backed capital while enabling founders to retain complete ownership and avoid the limitations of equity financing. Fares Bardeesi, CEO of Sukna, described the launch as a pivotal step in expanding institutional credit access for underserved sectors across the region. With over two decades of experience in corporate finance and private investments, the CEO has led more than $6.50 billion in transactions across real estate, technology, and healthcare. As a co-founder of Sukna Ventures and the architect behind Sukna's evolution into structured private debt, he emphasized the urgent need to close funding gaps for both traditional and innovation-led SMEs. 'As of Q3 2024, SME lending in Saudi Arabia is estimated to be SAR 329.23 billion—just 9.1% of total bank credit—well below the Vision 2030 target of 15% to 20%,' Bardeesi noted. He added: 'SFDF is designed to address that gap through institutional, regulator-aligned capital solutions tailored to the needs of high-potential businesses across sectors.' This announcement comes at a pivotal moment, as the Middle East's tech and startup landscape undergoes rapid transformation, while traditional funding structures have not kept pace with founders' evolving needs. Waleed Alballaa, Managing Partner of Sukna Ventures and member of the Fund's Investment Committee, said: 'The tech and startup ecosystem has matured significantly, but financing structures simply haven't caught up. We designed SFDF to meet founders where they are—with the right capital, at the right time, and without the red tape.' Waleed brings his unique, founder-centric perspective to the fund, shaped by over two decades at the intersection of technology, operations, and venture capital across Silicon Valley and Saudi Arabia. His deep technical foundation is complemented by a decade dedicated to venture capital, during which he was instrumental in launching multiple investment vehicles and serving on the boards of several prominent technology companies. His holistic experience gives him a firsthand understanding of the capital gaps that can hinder high-growth companies. The launch of SFDF builds on the success of Sukna Ventures, the firm's technology-focused investment arm, known for backing bold, high-growth startups in mobility, logistics, and digital marketplaces. Sukna also leverages proprietary technology to streamline loan origination, risk assessment, portfolio monitoring, and investor reporting, ensuring a transparent and scalable experience for both borrowers and institutional capital partners. All Rights Reserved - Mubasher Info © 2005 - 2022 Provided by SyndiGate Media Inc. (
Zawya
14-07-2025
- Business
- Zawya
National Bonds adds RAKBANK onto Al Manassah Sukuk Trading Platform
In a strategic move to broaden the reach of Al Manassah Sukuk Trading Platform in the UAE, National Bonds has onboarded the National Bank of Ras Al Khaimah (RAKBANK) onto Al Manassah Sukuk Trading Platform. Al Manassah is among the region's first Sharia-compliant electronic platforms for trading Mudaraba-based Sukuk for partner financial institutions. Since its inception in 2013, the platform has processed over AED199 billion worth of transactions, including more than AED33 billion in 2024 alone. The platform enables licensed financial institutions to subscribe, transfer, and redeem Sukuk through a secure, fully automated process 24/7. Mohammed Qasim Al Ali, Group CEO of National Bonds, stated, 'We are pleased to welcome RAKBANK to Al Manassah. This partnership is another step forward in our mission to empower wider access to the Sharia-compliant platform through fintech and digital innovation.' Raheel Ahmed, Group Chief Executive Officer of RAKBANK, said, "This partnership with Al Manassah is a natural extension of our commitment to deliver innovative, Sharia-compliant solutions that empower our customers. By leveraging advanced digital capabilities, we can offer greater accessibility and flexibility to individuals and businesses alike."
Wamda
14-07-2025
- Business
- Wamda
Sukna Capital secures CMA approval to offer flexible, non-dilutive SME financing
Saudi Arabia-based VC Sukna Capital has received CMA approval to launch the Sukna Fund for Direct Financing (SFDF), an open-ended, Sharia-compliant direct lending fund in MENA, unlocking flexible, non-dilutive capital access for SMEs across the Kingdom. The fund allows periodic investor liquidity and gives founders access to asset-backed financing without giving up equity, addressing critical funding gaps in underserved sectors and supporting Vision 2030 goals to boost SME lending. Backed by Sukna's proprietary tech infrastructure and a veteran team with over $6.5B in transaction experience, SFDF reflects a founder-aligned approach to private credit, with a mission to modernise institutional financing for the region's high-growth businesses. Press release: Sukna Capital has received official approval from the Saudi Capital Market Authority (CMA) to launch the Sukna Fund for Direct Financing. SFDF is KSA's first open-ended, sharia compliant direct lending fund—marking a regulatory milestone for non-bank financing in MENA. As a CMA-licensed alternative asset investment platform, Sukna is now authorised to offer institutional investors access to a vehicle that provides non-dilutive, scalable financing for small and medium-sized enterprises (SMEs) seeking accelerated growth without equity dilution. Unlike traditional private credit vehicles, the open-ended fund structure enables investors to enter and exit at regular intervals, offering periodic liquidity with no long lock-up periods. For SMEs, this unlocks access to asset-backed capital while enabling founders to retain complete ownership and avoid the limitations of equity financing. Fares Bardeesi, CEO of Sukna, described the launch as a pivotal step in expanding institutional credit access for underserved sectors across the region. With over two decades of experience in corporate finance and private investments, Fares has led more than USD 6.5 billion in transactions across real estate, technology, and healthcare. As a co-founder of Sukna Ventures and the architect behind Sukna's evolution into structured private debt, he emphasised the urgent need to close funding gaps for both traditional and innovation-led SMEs. 'As of Q3 2024, SME lending in Saudi Arabia is estimated to be SAR 329.23 billion—just 9.1% of total bank credit—well below the Vision 2030 target of 15 to 20 percent,' he noted. 'SFDF is designed to address that gap through institutional, regulator-aligned capital solutions tailored to the needs of high-potential businesses across sectors.' This announcement comes at a pivotal moment, as the Middle East's tech and startup landscape undergoes rapid transformation, while traditional funding structures have not kept pace with founders' evolving needs. Waleed Alballaa, Managing Partner of Sukna Ventures and member of the Fund's Investment Committee, underscored the importance of timing: 'The tech and startup ecosystem has matured significantly, but financing structures simply haven't caught up. We designed SFDF to meet founders where they are—with the right capital, at the right time, and without the red tape.' Waleed brings his unique, founder-centric perspective to the fund, shaped by over two decades at the intersection of technology, operations, and venture capital across Silicon Valley and Saudi Arabia. His deep technical foundation is complemented by a decade dedicated to venture capital, during which he was instrumental in launching multiple investment vehicles and serving on the boards of several prominent technology companies. His holistic experience gives him a firsthand understanding of the capital gaps that can hinder high-growth companies. The launch of SFDF builds on the success of Sukna Ventures, the firm's technology-focused investment arm, known for backing bold, high-growth startups in mobility, logistics, and digital marketplaces. Sukna also leverages proprietary technology to streamline loan origination, risk assessment, portfolio monitoring, and investor reporting, ensuring a transparent and scalable experience for both borrowers and institutional capital partners.
