Issam Al-Saqqa: Sustainability, Operational Resilience, and Cybersecurity Drive Future Growth in the Banking Sector
Essam Al-Saqer, Deputy Chairman and Chief Executive Officer of National Bank of Kuwait (NBK), participated in a panel discussion on the future of Kuwait’s banking and financial services sector, outlining his vision for the key challenges and opportunities facing the industry. He emphasized the importance of building institutional resilience before crises, accelerating digital transformation, and strengthening sustainability practices to ensure long-term growth and financial stability.
The session, organized by Global Finance and featuring Bassem Al-Haroun, Governor of the Central Bank of Kuwait, along with chief executives of various banks, examined the major challenges and transformations confronting the banking industry both locally and globally.
Al-Saqer stated that the key lesson from recent geopolitical and economic volatility is the critical importance of building resilience prior to the onset of crises. This involves maintaining strong capital and liquidity levels, implementing effective risk management systems, and enhancing operational adaptability. He noted that risks are no longer isolated but have become interconnected and overlapping, requiring the ability to assess the indirect impacts of global developments.
He pointed out that financial growth and stability are not mutually exclusive goals but rather complementary. Strong financial institutions capable of absorbing shocks can continue to finance economic activities and support development even during difficult periods. Al-Saqer stressed that resilience-building measures should not come at the expense of the banking sector’s developmental role, advocating for balanced risk management policies rather than withdrawing from or significantly reducing financial activities.
He called for enhanced cooperation and coordination among banks, regulatory authorities, and government institutions. According to Al-Saqer, information sharing, stress testing, and the development of emergency and crisis response plans are key tools for building trust and consolidating stability within the financial sector.
He explained that NBK integrates geopolitical risks into its strategic planning, risk management, and future scenario analysis, aligning with the Central Bank of Kuwait’s directives to enhance operational readiness and business continuity.
Al-Saqer highlighted that upgrading banking infrastructure is a strategic priority, including the development of core banking systems, strengthening data management capabilities, and the strategic expansion of cloud computing usage to support business needs and improve operational efficiency. He also emphasized the need to diversify growth sources, enhance their resilience, and reduce reliance on traditional revenue streams.
Furthermore, he affirmed that the banking sector plays a pivotal role in supporting private sector participation and achieving the goals of Kuwait Vision 2035, through financing small and medium-sized enterprises (SMEs), infrastructure projects, strategic initiatives, and emerging economic sectors.
On human capital investment, Al-Saqer stated that sustainability, operational resilience, and cybersecurity must form an integral part of the banking sector’s future growth agenda. He added that the success of these transformations fundamentally depends on developing competencies and human resources, noting that human capital has become one of the most important strategic resources requiring joint collaboration between financial institutions, educational bodies, and regulators to prepare a generation capable of leading future transformations.
Al-Saqer emphasized that the greatest opportunity lies in integrating artificial intelligence (AI) into core banking operations, rather than limiting its use to isolated or narrow applications. He explained that AI can bring tangible transformations in customer service, creditworthiness assessment, fraud detection, and risk analysis, thereby improving efficiency and enhancing the quality of banking services. He noted that data quality and availability are as crucial as the technology itself, affirming that AI should support the quality and speed of decision-making, while keeping the human element central to the banking process. He also stressed the need to advance innovation in parallel with implementing governance and control measures, including data protection, strengthening cybersecurity, validating technical models, and managing third-party risks.
Regarding responsible innovation, Al-Saqer called for enhanced collaboration between banks, fintech companies, technology solution providers, universities, and regulatory bodies, citing it as a fundamental factor in accelerating the pace of responsible innovation in the financial sector. He clarified that NBK’s strategy rests on two parallel tracks: the first focuses on continuing to develop core businesses and operations, while the second concentrates on building digital business models that leverage AI, data, and fintech ecosystems to enhance customer experience and raise institutional performance levels.
Sustainability as a Financial and Strategic Pillar
Al-Saqer noted that the perception of sustainability has undergone a fundamental shift in recent years, evolving from a mere commitment to reporting and disclosure into an integrated financial and strategic discipline. He explained that sustainability is now an essential part of credit assessment, risk management, capital allocation, product development, and customer relationship enhancement. He pointed out that the most promising sustainable financing opportunities in Kuwait are linked to national priorities, primarily energy efficiency, renewable energy, water security, and low-emission transport.
Financing Economic Transformation and Development
Al-Saqer highlighted significant potential to support sustainable transformation in key economic sectors, including oil, gas, petrochemicals, construction, real estate development, and industry. He affirmed that banks play a pivotal role in helping clients identify viable sustainable projects, structure appropriate financing, and establish clear, measurable performance indicators to ensure the achievement of targeted outcomes.
He added that NBK fully integrates sustainability into its decision-making process through a corporate governance framework that begins at the board level. The bank applies sustainability standards in risk assessment, customer financing, and capital allocation, while striving to build close partnerships with clients to understand their needs and challenges and support their journey toward more sustainable and efficient business models.
$6 Billion in Sustainable Assets
Al-Saqer noted that in 2024, NBK issued $500 million in green bonds, with all proceeds fully allocated to targeted projects. The value of sustainable assets reached approximately $6 billion, representing 60% of the bank’s 2030 target. He indicated that these achievements have contributed to significant progress in the bank’s Environmental, Social, and Governance (ESG) ratings, enhancing its position among leading financial institutions in the region. He reaffirmed the bank’s continued efforts to support the sustainable transformation process and deliver long-term added value to the economy and society.
