Bukhamseen: KIB ensures its compliance with Shari'ah principles

Kuwait: Kuwait International Bank (KIB) participated as main sponsor of the 8^th Shura Sharia Fiqh Conference. The two-day event was organized by the Shura Sharia Consultancy Company under the patronage and attendance of the Governor of the Central Bank of Kuwait, Mohammad Al-Hashel. The conference was held with the support of the Kuwait Banking Association and the Islamic Research and Training Institute in Jeddah. Taking place at the Four Seasons Hotel in Kuwait, the conference aimed at discussing the latest developments in fiqh financial instruments and was attended by a group of leading Islamic scholars, Islamic financial industry and fiqh experts, and international Shari’ah supervisory boards.

The conference sought to shed light on existing fiqh transactions through discussions with scholars and experts in order to reach decisions based on collective efforts. The conference also discussed three main topics, namely: diminishing musharaka to finance fixed assets, entering into sale or lease contracts where a late penalty is imposed where a lessee cannot terminate the contract, as well as share adjustment according to Islamic fiqh for joint stock companies. Additionally, two workshops were held entitled “Shari’ah auditing of Sukuk” and “Innovations in Waqf”.

KIB was represented by Vice Chairman and Chief Executive Officer, Raed Bukhamseen, who stated: “Our participation in this conference in its eighth edition reflects KIB’s interest in matters related to Shari’ah and its commitment to supporting these conferences that boost the standing of Islamic financial products in the market. Moreover, these conferences contribute to the development of these products, the simplification of processes as well as keeping products consistent with the supervisory framework.”

The Islamic banking industry is currently witnessing continuous growth, thereby incentivizing Islamic financial institutions to continuously innovate in the Islamic financial services industry. Bukhamseen also pointed at the many achievements in the Islamic banking industry, particularly at the local level, supported by the strength of the Islamic economy which is built on fairness and transparency. He also noted that Islamic Shari’ah is governed by a set of stringent controls that allow for more clarity and transparency, which has set Islamic finance apart and created trust amongst traders, investors and depositors in Islamic banking contracts and products.

Bukhamseen also pointed out that KIB continues to monitor and review all principles used in its operations as well as all contracts for banking transactions to ensure compliance with Shari’ah principles and implementation of Islamic rules and regulations. The Bank also strives to set clear performance standards and deliver innovative products and services that maintain strength, stability, and continuity in today’s competitive Islamic banking sector.

Bukhamseen also thanked the Governor of the Central Bank of Kuwait, Mohammad Al-Hashel, for his patronage and participation in this two-day conference. He also lauded the efforts made by the CBK in supporting the Islamic banking industry as well as Islamic finance products in Kuwait in order to achieve further development and improvement through policies and regulations that govern the local sector.

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About KIB

Kuwait International Bank (KIB) is a bank that operates according to the Islamic Shari’ah, based in the State of Kuwait. Incorporated in 1973, and originally known as Kuwait Real Estate Bank, KIB made the transition to its current Islamic operating model in 2007.

KIB is a full service Bank operating through a network of branches spread across the State of Kuwait, and offering a broad range of banking products, services and solutions in accordance with the principles of the Islamic Shari’ah. The Bank’s mission and vision also encompasses a leading social responsibility program that aims at supporting every member of Kuwait’s society by spearheading a multitude of initiatives and activities.

In 2015, KIB embarked on a comprehensive strategic plan, aimed at improving the Bank’s performance indicators, as well as enhancing the quality of its products and services. The strategy focuses on propelling the Bank to the forefront of the Kuwaiti banking sector and setting it on a solid path to becoming the “Islamic Bank of Choice” in the market.

Today, KIB is in the midst of its new strategic transformation: a comprehensive and long-term program which is aimed at transforming the way KIB engages with customers across every touch point and communication channel. This new strategy focuses on offering a next-level customer experience that delivers much more than just “banking” in the traditional sense - but rather establishes KIB as a partner in every aspect of its customers’ lives; a true “Bank for Life”. 

© Press Release 2019