Marzouq: KFH boasts opening first Islamic bank in one of Europe’s largest economies

The ribbon cutting ceremony

The ribbon cutting ceremony

KUWAIT: “KFH expansion in the global markets is a step further in our ambitious strategy to lead global development of Islamic financial services and alleviate KFH-Group to the rank of the most profitable and trusted Islamic bank and achieve highest ranks in innovation and excellence in customer service line” said Kuwait Finance House (KFH) Chairman, Hamad Abdulmohsen Al-Marzouq.

Speaking at the Inauguration Ceremony of KT Bank AG in Frankfurt, Germany in presence of Board and executive management members, KFH CEO Mazin Saad Al-Nahedh, Chairman of Fatwa and Shariah Supervisory Board at KFH Dr Sayyed Mohammed Al-Tabtabae, CEO KFH-Turkey Ufuk Uyan, Head of Sharaih Control Dr Shouaib Abdulsalam and a number of financial dignitaries and lawmakers, Marzouq added that KFH-Group boasts the inauguration and incorporation of the first Islamic bank operating in one of the largest economies in Europe through KFH-Turkey. Germany will be the starting point to penetrate the Euro Market and complete its efforts in the issuance of Sukuk and investment funds in the Euro continent. Marzouq said “We seek to transfer our expertise in Islamic finance industry to the German and Euro financial market through this new bank while focusing on the Islamic community and other tiers of customers from different religions wishing to deal with a bank operating as per ethical banking.

KFH has a significant variety of Sharia compliant services and products i.e. banking services, real estate services, investment portfolios, Ijara, execution of projects for its account and for the account of others and provision of retail and corporate commercial and finance services to achieve the best interest of the bank and the customer”

Rapid growth
Moreover, he reiterated that KT Bank AG inauguration underlines the German government efforts to consolidate the Islamic Finance which is growing rapidly worldwide. Growth ratios in Islamic financial assets maintained high levels reaching 17 percent worldwide i.e. $1.6 trillion. It is anticipated that this volume may reach $4.2 Trillion by 2020 as per several specialized studies.

Islamic finance products are witnessing an unprecedented clear expansion worldwide. In this respect the distinguished Turkish experiment was highly appreciated in regard to the successful issuance of Sukuks during the last three years totaling $3.75 Billion with KFH participation in some of them. He noted that major financial institutions have shown great interest in Islamic finance such as International Bank and international Monetary Fund which has launched recently the initiative to release the hidden Islamic finance energies and support global financial stability.

At the conclusion of his speech, Marzouq explained that KFH Group reiterates its willingness to work hand in hand with the German government and monetary authorities to support investments, build financial products and portfolios, avail diversification opportunities and promising capabilities of the German economy, increase finance volume, create new instruments that would reinforce the movement of trade between Germany and KFH group countries and markets. He conveyed his sincere thanks and appreciation to the participants and the organizers of this great event.

Great achievement
Meanwhile, KFH-Group CEO, Mazin Saad Al-Nahedh started his speech by congratulating KFH-Group and the whole Islamic banking industry for this great achievement. This is indeed a paradigm shift in KFH-Group overseas expansion by operating a fully-fledged Islamic bank “KT Bank AG” with a capital of Euro 45 million. This achievement paves the way for further growth, and opens new promising horizons and vast scopes of business and investment in Europe’s largest economies. He added that Islamic finance industry has become a role model. Several banks and countries expressed their desire to adopt Islamic banking methodology that proved its efficiency and soundness against financial crisis. The widespread of Islamic banks has become apparent and quite obvious in fact. The tools of Islamic banking are more efficient and witness huge turnout from different segments. Islamic banks won this momentum as they take into consideration serving the society, resolving economic issues, achieving service quality, focusing on economic and social perspectives of banking business, improving the investment climate and thriving to give investors a new perspective on the dynamics of development in order to achieve sustainable success and growth.

Ethical values
In the meantime, KFH-Turkey CEO, Ufuk Uyan said “Our major goal is to provide banking services compliant with sound banking principles and ethical values through our branch offices in Germany, and offer the widest range of products to the domestic and foreign customers to meet their needs. We will open new branch offices during the period ahead. Our goal on the long term is to expand into Central Europe using Germany as a hub. He indicated that KFH-Group integration and its extensive expertise in Islamic banking industry is a keystone in achieving growth and success for the bank.

This article was published on 23/07/2015