KFH Group Chief Executive Officer, Khaled Yousef Alshamlan, emphasized that building resilience before crises occur, accelerating responsible innovation, deepening capital markets, and advancing sustainability are key priorities for supporting Kuwait's long-term economic growth and financial stability.

Alshamlan made these remarks during his participation in the Global Finance Banking & Economic Roundtable, hosted by the Central Bank of Kuwait (CBK) in partnership with Global Finance magazine, which brought together leading banking executives to discuss developments in Kuwait's banking sector, economic outlook, and growth opportunities.

The roundtable was held under the gracious participation of H.E. Basel Al-Haroon, Governor of the Central Bank of Kuwait, and provided a platform for constructive dialogue on the resilience of Kuwait's banking sector, economic diversification efforts, sustainable growth, and the future of financial services amid evolving regional and global developments.

Building resilience

During the roundtable, Alshamlan emphasized that recent geopolitical developments have reinforced the importance of building resilience before crises occur, noting that strong capital positions, liquidity buffers, and asset quality remain fundamental pillars of banking stability.

He said “With the prudent oversight of the Kuwaiti Banking sector by the regulator we have strong balance sheets, liquidity discipline, good governance, and trust. The CBK’s latest soundness figures show that the banking sector maintains a Capital Adequacy Ratio (CAR) of 18.5% and a gross non-performing financing ratio of 1.6%, reflecting the resilience and soundness of local banks.”

Alshamlan explained that resilience today extends beyond traditional financial metrics to include diversified funding sources, cybersecurity readiness, supply-chain awareness, scenario planning, and the ability to continue serving customers during periods of disruption.

“At KFH, resilience is embedded in our business continuity planning and digital infrastructure strategy, ensuring the uninterrupted availability of critical banking and digital services even under stressed market conditions,” he said, adding that KFH's geographic diversification across regional markets further supports sustainable growth and operational flexibility.

Priorities of Kuwait's banking sector

Addressing the future priorities of Kuwait's banking sector, Alshamlan noted that while significant progress has been achieved in digital transformation and artificial intelligence, the next phase of development will depend on how effectively banks leverage capital, technology, and talent to support economic growth.

He highlighted the importance of the Mortgage Law and Developer Law, describing them as transformative initiatives capable of addressing housing demand and stimulating economic activity.

Alshamlan pointed out that according to the latest figures from the Public Authority for Housing Welfare, more than 108,000 Kuwaiti families currently have pending housing applications. He noted that the Mortgage Law is expected to provide effective financing solutions that can accelerate housing development and reduce waiting times.

He noted that the law could boost banking sector credit growth from 6-7% currently to 8-9%, while creating new growth opportunities and enhancing asset-liability management capabilities across the sector.

Capital market development

Commenting on capital market development, Alshamlan said Kuwait's Financing and Liquidity Law has established a framework that allows government financing locally and internationally within a KD 30 billion debt ceiling and repayment periods of up to 50 years.

He pointed out that the law is important not only because it enables government funding, but also because it lays the foundation for a deeper and more efficient capital market and allows the government to use their assets more efficiently.

He explained that sovereign bonds and Sukuk play a vital role in strengthening liquidity management and financial stability while helping establish a domestic sovereign yield curve, giving banks and corporates a local benchmark for pricing and issuing debt rather than relying on international markets.

Alshamlan also highlighted the strong demand seen in June of 2026 with the CBK KD 550 million issuance of treasury bonds and public debt tawarruq, where all tranches were oversubscribed, indicating this is a proof of investor confidence and the potential for further market development. He indicated that the government sukuk framework will further expand Kuwait’s Islamic capital markets and attract a broader investor base.

Technological innovation

Discussing technological innovation, Alshamlan stressed that artificial intelligence is playing an increasingly important role in today and the future of banking. Technology Innovation is moving fast, but the challenge is how to use it safely. For banks, maintaining and building trust is important. Success of Ai will come from the value it creates for the customer and how it improves efficiency and decision making.

Sustainability

On sustainability, Alshamlan said ESG considerations have evolved from a reporting requirement into a core strategic component of governance, risk management, financing policies, and disclosures across the banking industry.

He noted that sustainability is increasingly driven by the objectives of Kuwait Vision 2035, as well as evolving expectations from regulators, investors, and rating agencies.

“For KFH, Islamic finance and banking standards are in harmony with sustainability principles by creating long term value for society. ESG is part of our Strategy, and we screen financing for environmental and social risk. This is supported by Board oversight and dedicated sustainability functions. We also publish our Carbon Footprint every year along with our Sustainability Report. The CBK’s Sustainable Finance guidelines since 2022 have also pushed the sector toward stronger reporting, board-approved ESG policies,” he said.

“Building a future-ready banking sector requires a balanced approach that combines financial strength, responsible innovation, sound governance, and sustainable growth. These pillars will continue to support Kuwait's long-term economic development and prosperity,” Alshamlan concluded.