How Kuwait Finance House is Growing Islamic Banking Through Expansion and Technology

How Kuwait Finance House is Growing Islamic Banking Through Expansion and Technology

Kuwait Finance House (KFH) was the first Islamic bank in Kuwait, starting in 1977. Today, it’s a major global player in Sharia-compliant banking. The bank has grown through strong financial results, smart acquisitions, and investing in digital services.

As of April 25, 2025, KFH is the largest company in Kuwait with a market value of about $42.1 billion. It ranks 9th on Forbes Middle East’s Top 100 Companies list and 5th among the Most Valuable Banks in 2025.

Expanding Around the World

KFH has over 600 branches in 8 countries and more than 17,500 employees. A big milestone came in 2022 when KFH bought Bahrain’s Ahli United Bank (AUB) for $11.6 billion—the region’s largest banking merger.

In February 2024, KFH bought Kuwait’s AUBK, calling it the biggest banking deal in Kuwait’s history. By January 2025, the bank rebranded AUB’s operations in Egypt as “KFH Egypt,” marking its official start in the large Egyptian market.

To focus on high-growth areas, KFH also sold its shares in KFH-Bahrain and Sharjah Islamic Bank in 2024.

In January 2025, under new CEO Khaled Yousef Alshamlan, KFH issued a $1 billion sukuk (Islamic bond), which was listed in London. The same month, it revealed a new logo and slogan, “Horizons Without Limits,” showing its global goals.

In April 2025, KFH launched a payment solution that lets businesses use smartphones as payment terminals, meeting the rising demand for digital banking.

Strong Financial Results

In early 2025, KFH reported a net profit of $550.5 million, a 3.2% rise from early 2024. Assets grew slightly to $120.8 billion. Customer loans and deposits also increased, showing steady demand.

Earnings per share were $3.2, helped by higher income from financing and other services.

Reforms Boost Kuwait’s Banking Sector

Kuwait’s banking sector is starting to recover thanks to new laws. The government passed a public debt law allowing it to issue up to $98.3 billion in bonds over 50 years. This helps support the economy, especially as oil prices drop.

The country also plans a new mortgage law to boost the housing market. These changes come after political issues had slowed growth, with the economy shrinking in 2023 and 2024.

Credit growth is picking up, rising from 2.1% in 2023 to 6.8% in 2024. It may reach 8–9% in 2025 as reforms continue. New government bonds are expected to help banks with liquidity, income, and capital.

Bank mergers are also changing the market. After KFH’s big deal in 2022, Burgan Bank bought Bahrain’s United Gulf Bank in 2025 for $190 million. Boubyan Bank and Gulf Bank are also discussing a merger that could create Kuwait’s third-largest bank, fully Sharia-compliant, with $50 billion in assets and a 15% market share.

Published: 14th July 2025

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