Kuwait, April 2nd, 2014: President of the Republic of Turkey, Abdullah Gul applauded Kuwait finance House –Turkey (KFH-Turkey) for the leading role it plays in the Turkish market in the field of the financial industry that has become absolutely significant. He added that the performance of KFH-Turkey is characterized by its pioneering position among the Turkish participation banks and its development role in the country.
During his meeting with number KFH officials yesterday, Gul expressed his appreciation for the expansion scheme in turkey the bank implements, in addition to the outstanding contributions in boosting the Turkish economy by spurring new financing resources and supporting working companies, which increase confidence rates in the economy and achieve the development objectives, especially that the bank prioritizes cooperation and trading between Kuwait and the GCC and Turkey.
Meanwhile, KFH Chairman Hamad Al-Marzouq welcomed Gul who visits Kuwait to cement relationships between both countries in various fields. He expressed his hope that this visit can boost economic collaboration and allow the private sector in both countries to execute mega joint projects to boost development. He added that the leaders of both countries have a comprehensive vision to achieve development, and serve the interest of their people.
Al-Marzouq, who met Gul in the presence of KFH CEO and KFH-Turkey Chairman Mohammed Al-Omar and CEO and MD of Turkapital Fawwaz Al-Eissa, stated that KFH-Turkey was established 25 years ago as an Islamic financial institution with joint Kuwaiti-Turkish investments. He added that the bank is considered to be one of the most successful KFH overseas projects, and stressed that such an experience proved the feasibility of investing in the Turkish market. He went on to say that KFH was one of the first GCC investors in Turkey, and KFH-Turkey has become one of the leading banks in Turkey with asset volume of TL 27 billion and 267 branches in Turkey, not to mention its expansion in neighboring countries in the GCC and Europe. He revealed that KFH owns 62% of KFH-Turkey, and that KFH has established an independent company to spearhead investments and expansions in Turkey, called Turkapital, with a capital of USD 150 million. He noted that this company contributed to numerous companies in Turkey in the fields of insurance, Ijarah companies, and real estate development.
Moreover, he mentioned that there are new horizons for cooperation between both countries; especially that both countries share several historic ties, and seek economic integration. He said that the Turkish market is rich with various investment opportunities, and its growth rate reached 3.8% by the end of 2013, which allows it to play a vital economic role in the region during the coming period. This encourages Kuwaiti investments, and supports expansion and growth plans that KFH-Turkey adopts. He asserted that it also opens new horizons in the fields of real estate development, power, communications, industrial development, and infrastructure. He explained that all those fields are prioritized by the Turkish government through facilities and privileges for investors, through a legislative frame that encourages such participation.
Al-Marzouq expressed his confidence in the mutual relationships of Kuwait and Turkey, noting that these relationships play an important role in strongly linking the GCC and Turkey which allows easy flow of capitals and resilient movements of businessmen not to mention it promotes harmony with Turkey that as it links between Europe and the countries of Asia and the GCC.
Al-Marzouq revealed that KFH intends to establish an investment holding company in Turkey with a capital of USD 150 million after taking the regulatory authorities’ approval where it enhances KFH’s presence in the Turkish market and allows the bank to enter various activities and fields that contribute to achieve good rates of profitability.
Moreover, Al-Marzouq stressed the leading role KFH-Turky plays in the Islamic banking in Turkey especially in light of the wide expansion all over Turky and deploying innovative products and services.
He shared that KFH-Turkey has arranged many sukuk issuances. It arranged sovereign sukuk issuance for the Turkish government of USD 150 billion, and inked several sukuk deals in USD and Turkish Lira of more than USD 450 million, not to mention it managed to attract many prestigious banks in the region and the world to participate in financing such issuances which confirms the confidence in the Turkish economy and its positive performance.
He underlined KFH’s keenness to participate in financing huge projects in Turkey through the bank’s contributions in deals like financing and leasing 8 different airplanes for the Turkish airlines of USD 240 million.