Central Bank Approves Full Conversion of 'Gulf Bank' to an Islamic Bank
The Central Bank of Kuwait has approved the full conversion of Gulf Bank into an Islamic bank
Translated by Qiyas from النهار — Original source
Gulf Bank announced that it has obtained approval from the Central Bank of Kuwait for its full conversion to operate in accordance with Islamic Sharia principles and to proceed with the conversion procedures. In a formal disclosure on the Kuwait Stock Exchange website, the bank stated that, pursuant to the provisions of Chapter 10, Section 4 of Decision No. (72) of 2015 concerning the issuance of the executive regulations for Law No. (7) of 2010 on the establishment of the Capital Markets Authority and the regulation of securities activities and its amendments, which relate to the disclosure of material information and the mechanism for announcing it, it is providing this update.
The bank added: “In continuation of our disclosure dated August 18, 2026, regarding Gulf Bank’s submission to the Central Bank of Kuwait of all regulatory and operational requirements outlined in the Central Bank’s letter dated August 18, 2025, which contained its preliminary approval for Gulf Bank’s conversion into a Sharia-compliant bank, our bank has requested approval to proceed with the procedures for Gulf Bank’s conversion into a Sharia-compliant bank.”
It further stated: “We wish to inform you that our bank obtained approval from the Central Bank of Kuwait on the 4th for the full conversion of Gulf Bank to operate in accordance with Islamic Sharia principles and to proceed with the conversion procedures. Please note that, upon completion of these procedures, an application must be submitted to the Central Bank of Kuwait to delete the bank from the register of conventional banks and register it in the register of Islamic banks. We emphasize that our bank is not permitted to conduct Islamic banking activities prior to its registration in the Islamic banks register maintained by the Central Bank of Kuwait.”
On this occasion, Ahmed Mohammed Al-Bahar, Chairman of the Board of Directors of Gulf Bank, said: “We congratulate our shareholders, clients, and employees on reaching this pivotal stage in the journey of Gulf Bank’s conversion into a Sharia-compliant bank, which brings us all further opportunities for development and growth.” He added: “We are proud of this achievement, which embodies our commitment to our strategic vision and our aspiration to continue developing the bank’s operations and enhancing its ability to meet the expectations of its clients and shareholders. We also confirm that this achievement marks the beginning of a new phase that requires continued work at the highest levels of efficiency and professionalism to ensure the smooth and successful completion of the conversion process.”
Ahmed Al-Bahar concluded his remarks by saying: “I would like to extend my thanks and appreciation to all employees of Gulf Bank for their efforts and dedication. I also extend my sincere gratitude to the Central Bank of Kuwait for its cooperation and support in completing this project with the utmost professionalism.”
Gulf Bank reaffirmed its commitment to applicable laws and regulations, including obtaining any approvals that may be required from regulatory authorities as part of Gulf Bank’s conversion to a Sharia-compliant bank, as well as disclosing any material developments in this regard.
