Kuwait City, May 1: Kuwait Finance House (KFH), a world leading Islamic financial institution, is proud to announce its recognition as Kuwait’s Best Bank for Sustainable Finance in the third annual Sustainable Finance Awards for 2023 by Global Finance magazine. KFH Capital, the investment arm of KFH Group, has also been awarded the Best Investment Bank in Kuwait for the year 2023 by Global Finance.
This awards program recognizes global, regional and local leadership in Sustainable Finance—funding for initiatives designed to mitigate the negative impacts of climate change and help build a more sustainable future for humanity. The methodology of the Sustainable Finance award was based in reviewing ESG activity such as year-over-year growth in sustainable finance transactions or sustainable finance instruments as a percent of total portfolio, no to mention KFH’s cooperation with the UNDP in forming a Global Takaful Alliance was crucial to pathing the way for sustainable development and tackling climate change risks on a global level.
The winners of the Global Finance awards program were crowned at a special ceremony held in London. Chosen by the magazine’s editors, the winners were evaluated based on their entries and independent research conducted by Global Finance. The criteria focused on governance policies, goals, and measurable achievements in environmental and social sustainability financing for activities undertaken between January and December 2023.
Commenting on the awards, General Manager Corporate Banking at KFH, Yousef Almutawa, highlighted KFH’s position as a frontrunner in sustainable finance. He emphasized the bank’s active support for initiatives that contribute to a more sustainable future.
He added that the bank offers a comprehensive suite of Shariah-compliant financial products and services designed to empower clients in their pursuit of environmentally and socially conscious investments.
Almutawa emphasized that this recognition by Global Finance serves as a testament to KFH’s dedication to integrating sustainable practices into its core business operations.
KFH operates under sharia principles, which are aligned with goals to develop more sustainable banking practices. Accordingly, the bank participated in several UNDP initiatives that have helped us align its strategy and its investments across business lines with UN Sustainable Development Goals (SDGs).
“This commitment is reflected in KFH’s development of a wide range of comprehensive and diversified programs that address the needs and expectations of stakeholders and market demands.” Almutawa said.
“In its sustainability efforts, KFH partnered with the UNDP through a Memorandum of Understanding (MoU) to exchange knowledge on sustainability. This collaboration led to a training program for executives, enhancing their capabilities and fostering greater organizational awareness,” he added.
Almutawa explained that KFH’s embrace of sustainable banking principles has led to positive results, as evidenced by the increased use of digital services by KFH customers. This rise in digital adoption reinforces the Bank’s position as a leader in the highly competitive global banking sector.
Sustainable digitalization
KFH has integrated sustainability with its digital transformation strategy. This approach involves substantial investments in the latest financial technology. The goal is to promote financial inclusion by expanding access to banking accounts, services, and products. KFH’s efforts in offering digital solutions to customers contribute to further meeting market needs.
KFH`s digitalization efforts and applications have expanded to encompass various aspects, such as e-payments, online account opening, and instant card printing and issuance. This also includes device performance development, gold buying and selling, and branchless banking.
KFH Capital
Chief Investment Banking Officer at KFH Capital, Abdullah Al-Haddad said that: “In recognition of its accomplishments, KFH Capital, the investment arm of KFH Group, has been awarded the Best Investment Bank in Kuwait for the year 2024 by Global Finance.”
This distinction highlights KFH Capital’s success in delivering a comprehensive range of Shariah-compliant investment products and services with exceptional efficiency. The company stands out for its innovative investment instruments, offering both distinct structures and attractive returns. Additionally, KFH Capital has facilitated numerous significant deals in Kuwait and the region, particularly within the Sukuk market. These efforts have solidified KFH Capital’s position as the investment partner of choice for both corporate and retail customers.
Green Sukuk
Al-Haddad affirmed KFH’s distinctive position in leading sustainability through Green Sukuk. He highlighted KFH Capital successfully arranging the issuance of a USD 350 million sustainability sukuk for Kuveyt Türk. This issuance is a groundbreaking achievement, being the first of its kind from an Islamic financial institution and the world’s first tier 2 sustainability Sukuk. The proceeds will fund green and social sustainability projects.
It is worth mentioning that Global Finance, founded in 1987, has a circulation of 50,000 readers in 192 countries, territories and districts. Global Finance’s audience includes senior corporate and financial officers responsible for making investment and strategic decisions at multinational companies and financial institutions. Global Finance is headquartered in New York, with offices around the world.