CPA receives requests from 3 alliances to establish ‘digital banking’ in Kuwait

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KUWAIT CITY, Aug 30: The Competition Protection Authority has received requests from 3 alliances to establish digital banks in Kuwait, including 7 listed companies, noting that the authority’s officials have begun studying the competitive weights that can arise from these alliances in the future, reports Al-Rai daily.

The sources pointed out that the three licensing applications submitted include the Boubyan Bank’s alliance with Zain Telecom Group and other ‘undeclared’ investors, the alliance of “Ooredoo”, Warba Bank, the Kuwait Investment Company and Al-Manar Finance and Leasing Company, in addition to the alliance of Kuwait and Middle East Financial Investment Company. KMEFIC is with ‘undeclared’ investors, noting that there are a set of requests to establish digital banks submitted by unlisted entities.

Contrary to expectations, ‘Agility’ did not submit a request to the Central Bank of Kuwait within the specified deadline, which ended at the end of last June, which means that the company retracted its efforts to establish a digital bank, according to its disclosure on the stock exchange website on August 22, 2021.

The sources suggested that the Central Bank’s approvals regarding licensing digital banks would not exceed the granting of licenses to two independent banks only, bearing in mind that the Central Bank will announce the names that meet the conditions and criteria at the end of 2022. According to the nature of advanced alliances, KMEFIC and others are the only ones that do not operate in accordance with Islamic law, which increases the chances of licensing them.

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