Kuwait Finance House (KFH) CEO Mohammed Al-Omar discussed the leading role that KFH has played in the expansion of the Islamic finance industry, and added that numerous countries want KFH to operate on their lands. He stressed that KFH officials feel the desire of the decision makers in such countries, who explain that this desire stems from the method that KFH follows in land construction. Such a method strengthens the national economy and rotates the capital in any country.
In a meeting with the students of the Spanish University of “ESAD”, in conjunction with the College of Administrative Studies at Kuwait University, Al-Omar stated that the negative influence of the global economic crisis is not limited to a certain country, and if there is a lack of cooperation among everybody, then the world will struggle to overcome this crisis. He emphasized the importance of time in such crises, where taking the right decision at the right time could be the solution to this crises.
Furthermore, Al-Omar expressed his optimism that the national economy will overcome the crisis especially that Kuwait has a huge surplus that have been accumulating over the past years.
Al-Omar said that Kuwait’s economy, which has developed over the years, will not regain its role and status as a pioneer, unless the employee, who is the cornerstone of any strong economy, is well -trained and targeted from the development programs.
The Future of Industry
The CEO spoke about the horizons that can be conquered by the growth and development of the Islamic financial industry, where he explained that there are 300 corporations in 75 countries managing assets that exceed USD 1 trillion, in addition to more than 250 Shariah compliant investment funds that manage USD 300 billion. Studies indicate that this industry has witnessed a 20% growth rate during the past 10 years, which makes it the most advanced and developed among all economic sectors. Such growth is not only limited to Arab and Islamic countries, but spread to the entire world.
Al-Omar added that there are examples of conjunction finance between Islamic and conventional banks, such as Equate project, where KFH spearheaded Islamic finance segment that reached USD 200 million with conventional financing. It is worth noting that such a competition results in better services for clients.
Moreover, Al-Omar stressed the importance of the social role in achieving part of the society’s needs, which will be affected by the crisis. Nonetheless, financial establishments must still be present through alternative means.
The projects that KFH has executed for the society include a hospital for drug addicts that cost KD 4 million, building 15 ambulance centers that cost KD 1.5 million, building an entertainment center for individuals with special needs that cost KD 1 million, and many other projects that serve the society. In addition to that, KFH supported schools by providing educational needs and health centers.