KFH… A Strategic Partner for National Development Plans

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Kuwait City, June 18: Kuwait Finance House (KFH) Kuwait’s Chief Executive Officer, Khaled Yousef AlShamlan, reiterated the Bank’s commitment to offering innovative and diverse financing solutions that meet the needs of major development projects and contribute to achieving sustainable development. He also stressed KFH’s pioneering role as a strategic partner for developmental initiatives and achieving Kuwait’s 2035 vision.

AlShamlan participation was during the Forum of Major State Development Projects, recently organized by the Kuwaiti Federation of Engineering Offices and Consultant Houses (KFEOCH). Titled “Sustainability, Transparency and Achievement are the Pillars of the New Era”, the three-day event is the result of a fruitful collaboration with the General Secretariat of the Supreme Council for Planning and Development (SCPD) and Kuwait Direct Investment Promotion Authority (KDIPA).

“KFH has played a significant role in financing major development projects in Kuwait,” he added. “For instance, the bank supported the financing for the new airport project, constituting 50% of the funded value. Additionally, KFH financed the recently inaugurated Duqm Refinery, the biggest joint investment project between Oman and Kuwait, with a USD 500 million financing.”

“KFH emerged as the largest Islamic financial contributor to the clean fuel project. It participated in a long-term syndicated financing deal valued at KWD 900 million for Kuwait Petroleum Corporation and its subsidiaries,” added AlShamlan.

He added that currently, Kuwait has a number of major development opportunities and projects. These include  South Al Mutlaa City that has 30,000 residential units, schools and other facilities, which has estimated budget of KWD 6.0 billion, South Saad Al-Abdullah Residential City 24,500 residential units and related infrastructure west of Kuwait, Petrochemical Facility at Al-Zour, with an estimated budget of KWD 2.0 billion, Azzour North 2 & 3 2700 MW power projects with water producing capacity of 120 Million imperial gallons Per Day (GIMD), Shagaya Renewable Energy Complex, with an estimated budget of KWD 2.0 billion with a renewable power capacity of  1,100 MW which is part of master program of renewable energy of Kuwait, in addition to Kuwait Airport Expansion project to increase the annual handling capacity of the airport to 20 million passengers and new runways and infrastructure expansion.

“These projects are floated by the Kuwaiti government as private public partnership project (PPP) whilst other projects self-funded by the government,” noted AlShamlan.

He affirmed KFH’s role as a key partner of major developmental projects in providing required finances through cash or non-cash facilities. Thanks to its expertise, solvency, high creditworthiness, in addition to various competitive advantages which include a global presence that spans across 12 countries, topping companies listed on Boursa Kuwait in terms of market capitalization (about USD41 bn) and scoring the highest profitability rates in the banking sector, in addition to its solid capital base, as well as high liquidity ratios, granted KFH with a high creditworthiness to finance major projects in the infrastructure and oil sectors and participate in mega financing deals.

He went on to say that the existing PPP Law in Kuwait is sufficient to promote and create enabling environment for public private partnership projects as it evident by already implemented two project Shamal Azzour Al Oula which is USD 1.8 billion investment to produce and maintain MW 1500 and water up to 107 MIGD and Umm Al Hayman for waste water treatment with a capacity of 500,000 m3/d.

To further improve public private partnership projects, AlShamlan hoped that the relevant authorities will enhance investment promotion policies, increase investment spending, improve business environment and invest in human capital. In addition, understanding all stakeholders, such as banks and developers, needs are important in floating RfP process so that the projects will be mutually beneficials to all the parties. This will also assist them in achieving their sustainable development goals, generating employment opportunities for youth, and attracting long-term investment opportunities which will positively impact the social and economic spheres of Kuwait.  

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