Kuwait Finance House (KFH) Group Chief Executive Officer, Khaled Yousef Alshamlan, participated in the GCC–Asia Economic Forum in a panel discussion titled “Core Banking and Balance Sheet Partnerships” held at the United Nations Conference Centre in Bangkok, Thailand at the 2026 IMF–World Bank Annual Meetings.

During his participation, Alshamlan affirmed that banking cooperation between the GCC and Asia has evolved into a tangible reality driven by successful partnerships, expanding trade flows, growing capital market connectivity, and increasing demand for Sharia-compliant financing solutions.

Strong Evidence of GCC-Asia Banking Integration

Alshamlan highlighted KFH's experience as a leading example of the growing financial integration between the two regions. He said that KFH's successful issuance of a US$1 billion five-year sukuk in January 2026 stands as a clear example of effective GCC-Asia banking cooperation.

He noted that leading Asian financial institutions, including Bank of China and Mizuho, participated as Joint Lead Managers alongside Gulf-based institutions. The issuance attracted strong investor demand from both Asia and the Middle East and was more than twice oversubscribed, reflecting growing appetite for cross-border Islamic capital market opportunities.

"The sukuk not only enabled KFH to diversify its funding sources, but also provided Asian institutions with greater access to international Islamic capital markets. This demonstrates that GCC-Asia capital market integration is already a reality," he said.

Strategic Expansion Strengthening Growth

Addressing KFH's international growth strategy, Alshamlan explained that the Group's overseas expansion has been guided by the Board's vision to be in the top 100 banks Worldwide, while building a more diversified and resilient financial group.

He highlighted the strategic acquisition of formerly Ahli United Bank- Bahrain, which significantly expanded KFH's international footprint across 10 countries, including Bahrain, Turkey, Germany, the United Kingdom and Egypt.

"The acquisition has strengthened the balance between corporate and retail banking activities, diversified income sources beyond the GCC region, reduced concentration risk, and enhanced earnings resilience," Alshamlan said.

He added that KFH's market capitalization has reached approximately US$50 billion, while the Group continues to deliver strong financial performance be recording the highest net profit in the Kuwaiti banking sector and all listed companies in Boursa Kuwait.

Sharia Governance Facilitates International Growth

Alshamlan stressed that varying Sharia governance frameworks across jurisdictions do not represent a barrier to deeper GCC-Asia financial integration.

"Sharia governance is an integral component of our operating model. KFH has successfully operated for many years across diverse regulatory environments, including the United Kingdom, Germany, Egypt and Turkey," he said.

He explained that AAOIFI and IFSB help establish internationally recognized Sharia standards. Combined with KFH Group’s extensive experience in converting conventional banking operations into Islamic banking models, these frameworks have enabled the Group to successfully operate across diverse regulatory environments and effectively navigate cross-border regulatory requirements.

Alshamlan also pointed to the growing global significance of Islamic finance, where total industry assets exceeded US$4.3 trillion in 2024 and are expected to reach US$6.9 trillion by 2029, while the GCC region accounts for nearly 40% of global Islamic banking assets.

Expanding Opportunities Between Gulf and Asian Markets

Commenting on future cooperation opportunities, Alshamlan noted that trade between the GCC and Asia exceeds US$516 billion annually, underlining the importance of stronger banking partnerships.

He explained that Asian banks provide access to fast-growing trade flows, manufacturing ecosystems and supply-chain financing opportunities, while Gulf banks offer attractive regional investment opportunities, deep local market knowledge and growing capital markets.

"The economic linkages between the two regions continue to strengthen. Chinese bank financing to Gulf markets has increased significantly in recent years, while remittance and trade corridors remain key drivers of financial cooperation," he said.

Building a Gateway for Islamic Finance

Alshamlan emphasized that creating a genuine Islamic finance gateway requires more than facilitating capital flows. It requires two-way market access that enables clients on both sides to access investment opportunities, financing solutions and institutional investor bases.

He noted that sukuk markets can serve as a strategic bridge linking Asian sovereign and corporate issuers with Gulf investors, while simultaneously connecting Gulf issuers with large pools of Asian capital.

"KFH's international network uniquely positions the Group to connect GCC businesses with Asian suppliers and growth opportunities through efficient cross-border banking and financing solutions," he said.

Advancing Liquidity Connectivity

On the prospect of linking regional payment and liquidity systems across the GCC and Asia, Alshamlan described a coordinated liquidity network as a realistic next step.

He explained that enhanced connectivity would facilitate trade, improve cross-border capital flows, reduce transaction costs and strengthen regional financial stability.

As an example, he highlighted the success of the AFAQ payment system, which connects all six GCC central banks and dozens of participating financial institutions, providing a strong foundation.

Sovereign Sukuk Law Opens New Opportunities

Alshamlan welcomed Kuwait's sovereign sukuk law, describing it as a significant development for both domestic capital markets and regional financial cooperation.

He said the framework will support funding diversification, establish a sovereign benchmark yield curve, improve pricing transparency, enhance market liquidity and create additional Sharia-compliant investment opportunities for investors across the GCC and Asia.

"It will support cross-border investment flows and strengthen liquidity management capabilities within the Islamic finance ecosystem," he added.

Measuring Success Through Real Economic Outcomes

Looking ahead, Alshamlan said the success of GCC-Asia banking cooperation should ultimately be measured through tangible economic outcomes rather than the number of agreements signed.

"In five years, I would like to see stronger trade volumes, deeper financial relationships and greater levels of joint financing activity between Gulf and Asian banks," he said.

He indicated that Asian markets are growing fast and Gulf Asia Trade is over $516 Billion a year.

Alshamlan noted that the GCC's estimated US$1.7 trillion infrastructure pipeline through 2030 presents substantial opportunities for collaboration in sectors such as energy, logistics, transportation, digital infrastructure and data centers.

"The true measure of success will be an increase in jointly financed projects, stronger capital market connectivity and deeper economic integration between the GCC and Asia," Alshamlan concluded.