Kuwait Finance House Showcases Leadership in Sustainable Finance and ESG Implementation

Kuwait Finance House (KFH) participated in the 2026 Forbes Sustainability Leaders Summit, under the theme “Resilience for a Sustainable Future.” The summit, held in Abu Dhabi under the patronage of Dr. Amina bint Abdullah Al-Abdulaziz Al-Jaber, Minister of Climate Change and Environment of the United Arab Emirates, brought together a select group of thought leaders, policymakers, and sector experts to discuss strategies for addressing challenges, accelerating innovation, and driving sustainable growth in key sectors, including energy, artificial intelligence, investment, natural capital, and workforce readiness.

KFH’s participation, represented by Meshal Al-Shaikh, Head of Compliance and Governance at KFH, and Mohammed Al-Arabi, Chief Executive Officer of Governance and Sustainability at KFH, underscores the institution’s commitment to sustainable finance and responsible growth, while highlighting the role of Islamic finance in supporting sustainable development through Sharia-compliant solutions.

The summit also provided KFH with an opportunity to exchange insights with sector pioneers on best practices in sustainability, strengthen its approach to Environmental, Social, and Governance (ESG) standards, and reinforce its position as a leader in sustainable finance and long-term value creation. Mohammed Al-Arabi, CEO of Governance and Sustainability at KFH, took part in a panel discussion titled “Scaling Sustainable Finance: From Commitments to Capital,” which highlighted the role of purpose-driven capital in accelerating climate innovation, empowering small and medium-sized enterprises, and generating long-term economic and social value.

During the session, Al-Arabi emphasized the vital role banks play in linking capital with the real economy by directing financing toward sustainable development initiatives. He noted that financial institutions in the Gulf Cooperation Council (GCC) countries are well-positioned to support broad-based sustainable growth through investments in renewable energy, infrastructure, low-carbon technologies, and other projects that enhance economic resilience and environmental responsibility.

Al-Arabi also underscored the full alignment between Islamic finance and sustainability principles, pointing out that the asset-backed nature of Islamic finance encourages responsible investment and ties financing directly to real economic activity. He added that KFH continues to integrate sustainability standards into its products and services, leveraging Islamic finance as a key driver for generating long-term value and achieving sustainable development.

He emphasized that strong governance and transparency form two fundamental pillars for building trust and enhancing sustainable finance, noting that strengthening governance frameworks and disclosure practices will play a pivotal role in accelerating the pace of sustainable finance across the region. Al-Arabit pointed out that Kuwait Finance House (KFH) expanded its investments in sustainability sukuk to approximately $2.38 billion in 2025, reflecting its leading role in sustainable finance within Islamic finance markets. He added that KFH’s investments in sustainable and green sukuk rose to around $1.2 billion during 2025, representing a year-on-year growth of 30.7 percent compared to 2024. These investments were distributed as 44 percent in sustainable sukuk and 56 percent in green sukuk.

Al-Arabit affirmed that KFH is implementing an Environmental, Social, and Governance (ESG) sustainability plan aimed at achieving carbon neutrality for its operational activities by 2060, supported by an executive roadmap for the period 2025–2030.

KFH continues to make significant contributions in the field of sustainability and ESG performance. The group holds an “A” rating in the MSCI ESG Index and is included in the FTSE4Good Index Series, recognizing its commitment to best practices in environmental, social, and governance standards and sustainable finance. Additionally, KFH Auto Showroom received the GSAS Sustainability Assessment certification at the Gold Level, becoming the first environmentally friendly car showroom in Kuwait fully committed to sustainability standards.

As part of its efforts to advance sustainability, KFH signed a memorandum of understanding with the United Nations Development Programme (UNDP) and launched its first program dedicated to small and medium-sized enterprises (SMEs), titled “Growth with Sustainability,” aimed at helping these enterprises enhance their competitiveness and achieve sustainable growth.

Furthermore, the bank continues its pioneering “Keep It Green” initiative, which aims to protect the environment and reduce carbon emissions. KFH is a local pioneer in impact measurement reporting, maintaining its leadership in sustainability reporting by publishing its annual Sustainability Report and Carbon Footprint Report, which outline its environmental performance, achievements, and roadmap toward a lower-carbon future.