The Of Islamic Banking

Kuwait Finance House
The
Of Islamic Banking
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Contents
Our Mission
To be the Leading Islamic Financial Institution in the World by Providing Competitive
and Shari’a Compliant Banking, Financing and Investment Products to Exceed
the Expectations of Our Customers, to Motivate Our Employees and to Meet the
Objectives of Our Shareholders.
Our Corporate Values
ission
Upholding Islamic principles and values among all activities of the organization.
Supporting ongoing initiatives of the global Islamic financing industry.
Participating in and assisting the socio-economic endeavors of local communities
as a responsible corporate citizen.
Kuwait Finance House
The Story
Kuwait Finance House (KFH) is a pioneer of the banking phenomenon known as
Islamic Finance or Shari’a compliant banking. We were the first Islamic bank
established in the State of Kuwait and today we are one of the foremost Islamic
Financial Institutions in the world.
From its inception in 1977, KFH has grown into a robust banking and financial
institution, as well as a leader in the Islamic financial industry. KFH is now a market
leader not only in the Islamic banking industry, but also in the banking sector
as a whole, providing a wide range of Shari’a compliant products and services
covering banking, real estate, trade finance, investment portfolios and corporate,
commercial and retail financial markets.
ioneer
Kuwait Finance House (KFH) is a pioneer of the banking phenomenon known as Islamic Finance
KFH has strong affiliations with leading international institutions, and in the past has
successfully launched a number of products in alliance with major global banks.
In the Islamic banking arena, KFH holds a leadership position in both profitability
and total assets.
The values are continually reinforced and adhered to in all aspects of the corporate
operations. Its integrity and sincerity has maintained quality service at all times.
The employees of Kuwait Finance House are constantly encouraged to be efficient,
creative and above all successful. Career enhancement is actively promoted with
an ever-changing financial world, creating a healthy professional environment.
With its strong Islamic values, KFH is a financial institution whose aim is to
develop and promote Islamic banking worldwide. KFH offers unique & competitive
set of products and services directed to target markets for both depositors and
shareholders.
In accordance with the Islamic principles, KFH ensures that while working with the
public professionally, the company guarantees an honorable relationship with its
client base.
Depositors' Account Growth
(in millions of Kuwaiti Dinars)
08
Depositors' Account Growth
(in 07
millions of Kuwaiti Dinars)
+23%
+23%
2,563
04
06
5,361
6,612
5,361
Shareholders' Funds Growth
(in 07
thousands of Kuwaiti Dinars)
06
08
03
05
3,189
02
04
1,9772,563
03
2,300
03
1,977
02
Reserves Growth
(in thousands of Kuwaiti Dinars)
08
Reserves Growth
07
(in thousands of Kuwaiti Dinars)
06
08
+8%
+8%
05
07
04
06
229,052
188,295
03
05
172,752
02
04
158,191
188,295
03
172,752
02
158,191
Capital Growth
(in thousands of Kuwaiti Dinars)
462,851
427,925
302,958
427,925
302,958
229,052
462,851
+2.5%
+2.5%
08
Capital Growth
(in 07
thousands of Kuwaiti Dinars)
06
08
284,586
03
02
1,210,000
702,489
600,210
261,969325,938
284,586
261,969
+20%
+20%
205,842
171,535
122,525
109,397
78,141
04
06
02
04
702,489
1,240,284
325,938
05
07
03
05
1,240,284
1,210,000
600,210
05
07
04
06
3,730
2,300
08
02
04
02
Financials
6,612
3,189
05
07
ey
(in thousands of Kuwaiti Dinars)
3,730
06
08
03
05
Shareholders' Funds Growth
71,689
68,275 78,141
71,689
68,275
122,525
109,397
205,842
171,535
Bader Abdul Muhsen Al-Mukhaizeem is the Chairman and Managing
Director of Kuwait Finance House (KFH), the first Islamic financial institution
in Kuwait. Prior to joining KFH, he held key influential positions at the Central
Bank of Kuwait from 1969-1978. He joined KFH in 1978 as the first General Manager, became the Managing Director in 1981, and for more than
8 years he held the three posts at KFH; the Chairman, Managing Director,
and General Manager. Bader Al-Mukhaizeem remained true to the vision
and principles of KFH, taking the organization from one success to another
until it stands today at the forefront of banking industry and becomes the
Chairman and Managing Director
largest Islamic financial institution in Kuwait and abroad. His powerful and
Bader Abdul Muhsen Al-Mukhaizeem
copious achievements have been recognized on a regular basis throughout
his career. Today, he continues to powerfully strive to bring more success
to KFH.
Sheikh Ahmad is one of the key founders of Kuwait Finance House and the
Chairman of its Shari’a Supervisory Board. He was born in 28 March 1928
oard
of Authority
in Kana’at area in Kuwait. He graduated from Mubarakiya School in 1942
and then started his successful career path in trade business. In 1970 he
became member of Kuwait Chamber of Commerce and Industry and was a
board member of the Central Bank of Kuwait. He chairs the Shari’a Board of
Kuwait Finance House (KFH) and several other Islamic banks and financial institutions. An early pioneer of Islamic Banking, he helped in founding Islamic
Chairman of Al Fatwa
and Shari’a Supervisory Board
Sheikh Ahmad Bazie Al-Yaseen
banking in Kuwait through the establishment of Kuwait Finance House in
1977 as one of the first Islamic banks in the local and regional markets. He
is well-known and a credible resource in the Islamic finance industry for his
lifetime’s background in both Shari’a and the business industry.
Chief Executive Officer
Mohammad Sulaiman Al-Omar
Assistant General Manger
Assistant General Manger
Assistant General Manger
Emad A. Al-Thaqeb
Mohammad Naser Al-Fouzan
Ahmad Mohammad Al-Khalid
Assistant General Manger
Assistant General Manger
Acting Assistant General Manger
Abdul Aziz Al-Jaber
Dr. Waleed Essa Al-Hasawi
Abdulnaser Abdulmohsen
Al-Subeih
anagement
Concept of Islamic Banking
The Islamic Difference
Islamic banking refers to a system of banking, which is consistent with religous law
called Shari’a, and guided by Islamic principles on economics. The cornerstone of
Islamic banking and finance is fairness and mutually beneficial relationships. We at
KFH provide services that exemplify those values.
The main differentiating factors of the Islamic banking system are the sharing of
risk and the prohibition of “Riba” (usury/interest). Islamic law prohibits interest
based dealings that tend to exploit those in financial need. Instead, transactions
based on sharing of risk are promoted as a way of encouraging cooperation for
mutual benefit and establishing more equitable terms and fair dealing.
A number of services have been modernized and standardized to meet the various
needs of customers, while maintaining the ethical boundaries embodied in the
tenets of the Islamic faith. Among these services are:
Murabaha – trade with markup or cost plus sale
Mudaraba – profit sharing agreement
Musharaka – equity participation
Leasing (Ijara Wa Iqtina) – renting for beneficial use
slamic
Salam and Parallel Salam – deferred sale contracts
Istisna’a and Parallel Istisna’a – project finance
Sukuks – Islamic bonds
For more information regarding the explanation of Islamic Finance, visit our website
kfh.com.
The demand for Shari’a compliant services continues to grow at an astonishing
pace. We at KFH have extensions of our services in retail, commercial and
corporate banking sectors as well as real estate.
Retail Banking
KFH has introduced a variety of methods for our customers to conveniently satisfy
their banking needs:
An extensive network of branches in each locality to provide face to face
customer care.
A secure online website that allows for 140 different banking services that
can be conducted with ease from home or office.
ervices
ATMs that over-arch the State of Kuwait, strategically located for easy
access.
A state of the art, voice recognition call center called “SAWTAK” that
operates 24/7. The first of its kind in Kuwait.
Through such services, KFH has attained 30% of the retail banking market
share in Kuwait (the biggest share in country).
Private Banking
We cater to our clients through an experienced team of portfolio managers, who
privately manage the banking and investment accounts of clients, in addition to
supervising all their personal transactions and affairs at KFH.
Commercial
Credit
Through a wide network of KFH branches expanding all over Kuwait and KFH
showrooms, we enable clients to acquire Shari’a compliant commodities and
services in the consumer finance market. Our services include buying and selling of
new and used cars, furniture and home appliances, construction materials, yachts
and marine equipment, commercial and industrial deals.
KFH assists with granting new credit facilities for commercial clients, whether
corporate or institutional, as well as renewing and increasing the credit facilities
given to current customers. In addition, we study Shari’a compliant credit and
finance ideas in a way that suits the present and future requirements of the
marketplace.
Real Estate
Investment Services
Having extensive experience in the real estate business, this department is concerned
with providing real estate financing to clients, trading and investing in real estate
in Kuwait and abroad; in addition to exchanging and developing properties, and
managing real estate portfolios.
KFH has been a leader in the Shari’a compliant approach as a solution to the
issues faced by clients requesting a socially responsible investment in line with their
ideals and values. Our investment services include such functions as trade finance,
securitization, project finance, Istisna’a, and a further focus on international real
estate investments in selected markets.
KFH offers services to include:
Lease to own
Property evaluation
Refinancing
Ekar call service Customers can keep in touch through our call service. Inquiries
about installment calculations, required documents for successful transactions
or any other related inquiries will be handled by our capable staff.
Such real estate investments include commercial, industrial, residential and multiusage properties forming a diversified portfolio. The Treasury Department provides
the needed liquidity while managing the best returns on our surpluses through such
tools as foreign currency trading, Murabaha, and KFH product finance.
Direct investments are managed with a focus on strategic investments that
support our long term expansion strategy, in addition to balancing medium and
short term investment portfolios with the aim of realizing appropriate returns and
capital profit upon maturity. Investments are all Shari’a compliant and in a variety of
sectors with both geographic and sectoral diversification: e.g. Medical, Technology,
Shipping, Aircraft and Real Estate. We also manage equity portfolios on behalf of
our customers.
eals
Equate Petrochemical Co.
US$ 1.2 Billion
Project Finance 1996
Government of Qatar
US$ 700 Million
Ijarah Sukuk 2003
Electricity Trading
US$ 50 Million
2007
Islamic Development Bank
US$ 400 Million
Ijarah Sukuk 2003
Saxony Anhalt
EUR 100 Million
Ijarah Sukuk 2003
Bahrain Monetary Agency
US$ 250 Million
Ijarah Sukuk 2003
Brunai Gas Carriers
US$ 129 Million
Ijarah 2003
Tabreed UAE
US$ 100 Million
Istisna’a & Ijara Sukuk 2004
Millenium Aircraft Leasing
Company Fund
US$ 800 Million 2003
Bapco Bahrain
US$ 1.1 Billion
Ijarah 2004
KFH Murabaha
US$ 850 Million
Borrowing Facility 2006
Dubai Civil Aviation UAE
US$ 1 Billion
Ijarah Sukuk 2004
Malaysia Airlines
US$ 100 Million
Ijarah 2004
Commercial Real Estate Co.
Kuwait - US$ 100 Million
Ijarah Sukuk 2005
Al Rubban Shipping Fund
US$ 330 Million
2004
Etisalat Telecom
US$ 2.35 Billion
Acquisition Finance 2004
Durrat Al Bahrain
US$ 152 Million
Istisna’a Sukuk 2005
GAP Turkey
US$ 50 Million
Murabaha 2006
Emaar
US$ 500 Million
Securitisation Conduit 2004
Pertamina
US$ 322 Million
Murabaha 2005 & 2006
KPPC
US$ 1.4 Billion
Project Finance 2007
Qatar Gas || Qatar
US$ 8.2 Billion
Project Finance 2004
MTC - Kuwait (Zain)
US$ 1.2 Billion
Murabaha Facility 2006
NICBM
US$ 100 Million
Musharaka Sukuk 2006
Air Asia Berhad
US$ 160 Million
Ijarah 2006
Bai-Salam Commodity Fund
US$ 50 Million
2006
SEWA
US$ 350 Million
Ijara Sukuk 2006
Best Islamic Bank in the Middle East from Euromoney
Best Islamic Real Estate Finance House from Euromoney
Best Bank from The Banker (Financial Times)
Best Deal from Global Finance
“Al-Tamayyuz” Award from Global Islamic Banking Conference
5 awards from Islamic Financial News
Best Islamic Bank from Arabian Business
Best Islamic Product from Asian Banker (Credit Card Chip)
wards
& Ratings
Globalizing the Islamic Financial Services Industry
Islamic banking and finance is no longer a novelty. Islamic banking and finance
services are estimated to manage assets of more than US$1 Trillion globally and
is one of the most influential trends to transform the banking industry. Since the
1980’s, KFH has been riding this wave of opportunity to expand internationally
through joint ventures, acquisitions and subsidiaries.
KFH is positioned at the forefront of the Islamic Finance Industry in terms of
international presence, strategic alliances, networking, innovation and spectrum
of activities. KFH’s spectrum of activities have grown to include retail banking,
corporate finance, Islamic capital markets, real estate finance, structured finance,
and investment portfolio management.
KFH has established fully owned, independently functioning banks in Turkey, Bahrain,
and Malaysia while establishing significant stakes in dozens of other Islamic banks
both regional and worldwide.
lobal
In collaboration with leading institutions; such as Citibank, Deutsche Bank, JP
Morgan, Chase, BNP Paribas, ABN Amro, HSBC, and Islamic Development Bank,
KFH successfully expanded investment activities into US, Europe and South East
Asia.
Through KFH’s regular conduction and sponsoring of seminars and training related
to Islamic Finance, contemporaries have affectionately dubbed KFH the “Harvard
of Islamic Banking.” Our commitment to education and development of the Islamic
Finance Industry will continue to support the growth of the industry as a whole, and
encourage others of all cultures to choose Shari’a compliant means as a way to
meet banking and financing needs through a spirit of partnership.
Subsidiaries and Associate Companies
roup
Company Name
Principal Activities
National Bank of Sharjah
Banking Services
First Takaful Insurance Company K.S.C
Insurance
Liquidity Management Centre B.S.C
Banking & Financial Services
Liquidity Management House Investment Co.
Financial Services
Aref Investment Group K.S.C
Investment Bank
Al-Muthana Investment Company
Investment Bank
ALAFCO – Aviation Leasing and Finance Company K.S.C
Aircraft Leasing & Finance
Human Investment Corporation
Education
Public Services Company K.S.C
Administrative Services
Al-Nakheel United Real Estate Company K.S.C
Real Estate
Al-Enma’a Real Estate Services K.S.C
Real Estate
Development Enterprises Holding Company K.S.C
Industrial
Islamic Trading Co.
Trading
International Turnkey Systems Company K.S.C
Technology
YIACO Medical Company K.S.C
Health Care
Al Salaam Hospital Company K.S.C
Health Care
Investment inquiries
Tel: +965 22964517
Fax: +965 22964440
email: [email protected]
Corporate inquiries
Tel: +965 22451613
Fax: +965 22409414
email: [email protected]
Media inquiries
Tel: +965 22451613
Fax: +965 22409414
email: [email protected]
orporate
Directory
Research inquiries
Tel: +603 20557777
Fax: +603 20557755
www.kfh.com.my
Career inquiries
Tel: +965 22905551
Fax: +965 22905554
www.kfh.com/AboutUs/Careers
Kuwait
Kuwait Finance House
P.O. Box 24989 Safat 13110 Kuwait
Tel: + 965 22445050
Fax: + 965 22455135
Cable: BAITMAL KT
[email protected]
www.kfh.com
Kingdom of Bahrain
Kuwait Finance House (Bahrain)
Delmon Tower, Government Avenue
Manama - Kingdom of Bahrain
P.O Box 2066
Phone: +973 17221666
Fax: +973 17228666
Call Centre Phone:+97317748686
IVR 80001110
www.kfh.bh
lobal
Directory
Turkey
Kuvet Turk
HEADQUARTERS
Buyukdere Cad. No:129 34394
Esentepe / Sisli ISTANBUL
Tel: +90 (212) 354 1111
www.kuveytturk.com
Jordan
Kuwait Finance House (Jordan)
Al Rabia Towers, 6th Floor, Office 6B
Al Rabia, Abdullah Bin Rawaha St.
P.O.Box 17500 Amman 11195, Jordan
Tel : +962 65538233
Fax: +962 65538310
Malaysia
Kuwait Finance House (Malaysia)
BerhadLevel 18, Tower 2, ETIQA Twins,
11, Jalan Pinang
P.O.Box 10103,50704
Kuala Lumpur,Malaysia.
General Line: +603 2055 7777
Fax: +603 2055 7755
www.kfh.com.my
Australia
Kuwait Finance House (Australia) Pty. Ltd.
Level 50, 120 Collins Street
Melbourne VIC 3000 Australia
Tel : +613 9225 5408
Fax: +613 9225 5050
Singapore
Kuwait Finance House (Singapore) Pte.Ltd.
11, Beach Road # 04-01
Singapore 189675
Tel : +65 6500 4877
Fax: +65 6500 4878
kfh.com