Essam Al-Saghar: Global challenges necessitate redefining power in the banking sector
Esam Al-Sagheer, Deputy Chairman and Group Chief Executive Officer of National Bank of Kuwait (NBK), participated in a panel discussion on the future of the banking and financial services sector in Kuwait. He outlined his vision for the sector’s key challenges and opportunities, emphasizing the importance of building institutional resilience before crises hit, accelerating digital transformation, and strengthening sustainability practices to ensure long-term sustainable growth and financial stability.
The panel, organized by Global Finance, was attended by Basel Al-Haroun, Governor of the Central Bank of Kuwait, along with the chief executive officers of Kuwaiti banks. The discussion focused on the major challenges and transformations facing the banking industry both locally and globally.
Al-Sagheer stated that one of the key lessons learned from recent geopolitical and economic volatility is the importance of building resilience before crises occur. This involves maintaining strong levels of capital and liquidity, implementing effective risk management frameworks, and enhancing operational adaptability.
He explained that risks no longer emerge in isolation but have become interconnected and interdependent. Geopolitical tensions can trigger market volatility, disrupt supply chains, heighten cyber threats, and create funding pressures, necessitating the ability to assess the indirect impacts of any global development.
Al-Sagheer noted that growth and financial stability are not conflicting objectives but are complementary. Strong financial institutions capable of absorbing shocks can continue to finance economic activities and support development, even during difficult periods.
He stressed that measures to enhance resilience should not come at the expense of the banking sector’s developmental role. This requires implementing balanced risk management policies rather than withdrawing from or broadly reducing financing activities.
He added that the bank has developed and implemented global best practices in crisis management and business continuity. Regular testing has enabled the bank to maintain operational efficiency and service continuity under various conditions and during crises.
Discussing the banking sector’s priorities for the next three to five years, Al-Sagheer affirmed that modernizing banking infrastructure is a strategic priority. This includes upgrading core banking systems, enhancing data management capabilities, and carefully expanding the use of cloud computing to support business needs and improve operational efficiency.
He pointed to the need to diversify and strengthen growth sources by expanding transaction banking, capital markets, Islamic finance, and advisory services, thereby ensuring sustainable growth and reducing reliance on traditional revenue streams.
Al-Sagheer added that the success of these transformations fundamentally depends on developing human capital and competencies. He noted that human capital has become one of the most important strategic resources, requiring collaboration among financial institutions, educational bodies, and regulators to prepare a generation capable of leading future transformation.
He emphasized that the greatest opportunity lies in integrating artificial intelligence into core banking operations, rather than limiting its use to isolated or limited applications.
Al-Sagheer noted that data quality and availability are factors no less important than the technology itself. He affirmed that artificial intelligence should support the quality and speed of decision-making, while the human element remains central to the banking process.
He emphasized the need to achieve progress in innovation in parallel with the implementation of governance and oversight controls, including data protection, strengthening cybersecurity, validating technical models, and managing third-party risks.
He explained that National Bank’s strategy is built on two parallel tracks: the first involves continuing to develop core businesses and operations, while the second focuses on building digital business models that leverage artificial intelligence, data, and fintech ecosystems, thereby enhancing the customer experience and raising institutional performance levels.
Al-Saqar noted that the bank focuses on integrating technology, data, human expertise, and customer insights across its organizational units to support the customer experience, improve operational efficiency, and deliver better business results. He pointed out that the success of digital transformation depends not only on technology but on the integration of these elements within a unified business model capable of adapting to changes and seizing future opportunities.
He clarified that sustainability has become an integral part of credit assessment, risk management, capital allocation, product development, and strengthening customer relationships. He noted that the most promising sustainable finance opportunities in Kuwait are linked to national priorities, foremost among them energy efficiency and renewable energy projects, water security, and low-emission transportation.
He explained that there is significant potential to support sustainable transformation in key economic sectors, including oil and gas, petrochemicals, construction, real estate development, and manufacturing.
He added that National Bank fully integrates sustainability into its decision-making process through an institutional governance framework that begins at the board level. The bank also applies sustainability standards in risk assessment, customer financing, and capital allocation, and strives to build close partnerships with its clients to understand their needs and challenges and support their journey toward more sustainable and efficient business models.
Al-Saqar noted that in 2024, National Bank issued $500 million in green bonds, with the entire proceeds allocated to targeted projects. Sustainable assets reached $6 billion, representing 60% of the bank’s 2030 target.
He pointed out that these achievements have contributed to notable progress in the bank’s Environmental, Social, and Governance (ESG) ratings, reinforcing its position among leading financial institutions in the region. He affirmed the bank’s continued efforts to support the sustainable transformation journey and create long-term added value for the economy and society.
