Khaled Al-Shamlan: Effective Partnerships Drive the Future of Gulf-Asian Banking

- Kuwait Finance House’s issuance of $1 billion in sukuk reflects the strength of integration between Gulf and Asian capital markets

- The Group’s vision is to rank among the world’s top 100 banks, operating as a more diversified and resilient financial entity

- The strategic acquisition of United Bank in Bahrain significantly enhanced the Group’s presence across 10 countries

- With a market capitalization of approximately $50 billion, Kuwait Finance House continues to deliver strong financial performance

- Sharia governance is an integral part of the bank’s operating model, backed by a proven track record of success across diverse regulatory environments

- Islamic finance assets are projected to reach $6.9 trillion by 2029

- Gulf infrastructure projects valued at $1.7 trillion by 2030 offer extensive opportunities for cooperation with Asia

Khaled Al-Shamlan, CEO of Kuwait Finance House (KFH) Group, stated that banking cooperation between Gulf Cooperation Council (GCC) countries and Asia has become a tangible reality, driven by successful partnerships, growing trade flows, increasing interconnection among capital markets, and rising demand for Sharia-compliant financing solutions.

This remark came during Al-Shamlan’s participation in a panel discussion titled “Core Banking and Balance Sheet Partnerships” at the Gulf-Asia Economic Forum, held at the United Nations Conference Centre in Bangkok, Thailand, on the sidelines of the 2026 Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group.

Al-Shamlan highlighted KFH’s experience as evidence of growing financial integration between the two regions, noting that the Group’s successful issuance of $1 billion in five-year sukuk in January 2026 serves as a clear example of the impact of Gulf-Asia banking cooperation.

He explained that leading Asian financial institutions, including Bank of China and Mizuho, participated in the issuance as joint lead managers alongside Gulf financial institutions. The offering attracted strong demand from investors in Asia and the Middle East, with oversubscription exceeding twice the issue size, reflecting growing investor interest in cross-border opportunities in Islamic capital markets.

Al-Shamlan said, “The impact of the sukuk issuance extended beyond enabling KFH to diversify its funding sources; it also provided Asian institutions with broader access to international Islamic capital markets. This underscores the fact that integration between Gulf and Asian capital markets is becoming firmly entrenched in practice.”

Speaking about the bank’s international expansion strategy, Al-Shamlan clarified that KFH’s expansion into foreign markets is based on the Board of Directors’ vision to position the Group among the world’s top 100 banks, building a more diversified and resilient financial entity.

He noted that the strategic acquisition of United Bank in Bahrain (prior to its name change) significantly enhanced the Group’s presence across 10 countries, including Bahrain, Turkey, Germany, the United Kingdom, and Egypt.

Al-Shamlan added, “The acquisition helped balance corporate and retail banking activities, diversify revenue sources outside the Gulf region, reduce concentration risks, and enhance earnings resilience.”

He observed that “with KFH’s market capitalization reaching approximately $50 billion, the Group continues to achieve strong financial performance, recording the highest net profit in the Kuwaiti banking sector and among listed companies on the Kuwait Stock Exchange.”

Al-Shamlan emphasized that the divergence in Sharia governance frameworks among countries does not constitute an obstacle to deepening financial integration between the Gulf and Asia. He noted that Sharia governance is an integral part of the bank’s operational model, with Bayan Financial Group boasting a long track record of successful operations over many years across diverse regulatory environments, including the United Kingdom, Germany, Egypt, and Turkey.

He clarified that the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and the Islamic Financial Services Board (IFSB) contribute to establishing Sharia standards that enjoy international recognition. He added that these frameworks, combined with the Group’s extensive expertise in transforming conventional banking operations into Sharia-compliant business models, have enabled the Group to operate successfully in multiple regulatory environments and effectively manage cross-border regulatory requirements.

Al-Shamlan pointed to the growing global significance of Islamic finance, noting that the sector’s total assets exceeded $4.3 trillion in 2024, with projections indicating a rise to $6.9 trillion by 2029. The Gulf Cooperation Council (GCC) region accounts for approximately 40% of global Islamic banking assets.

Regarding future cooperation prospects, Al-Shamlan highlighted that trade volume between GCC countries and Asia exceeds $516 billion annually, underscoring the importance of strengthening banking partnerships between the two sides.

He explained that Asian banks offer opportunities to capitalize on rapidly growing trade flows, industrial systems, and supply chain financing opportunities, while Gulf banks provide attractive investment opportunities in the region, deep knowledge of local markets, and expanding capital markets.

He stated, “Economic ties between the two regions continue to strengthen. Chinese banks’ financing of Gulf markets has seen a notable increase in recent years, while remittance channels and trade remain key drivers of financial cooperation.”

Al-Shamlan affirmed that establishing an integrated Islamic finance gateway requires more than facilitating capital flows; it necessitates providing mutual market access opportunities, enabling clients on both sides to benefit from investment opportunities, financing solutions, and institutional investor bases.

He noted that sukuk markets can serve as a strategic bridge connecting sovereign entities and companies in Asia with Gulf investors, while simultaneously allowing Gulf issuers access to a broad base of Asian capital.

He said, “Bayan Financial Group’s international network enables the Group to connect Gulf companies with Asian suppliers and empower them to capitalize on growth opportunities in Asian markets by providing effective banking and financing solutions that support their cross-border operations.”

He added, “Over the next five years, I look forward to seeing greater growth in trade volume, deeper financial relations, and increased levels of co-financing between Gulf and Asian banks.”

Al-Shamlan pointed out that infrastructure projects in GCC countries, valued at approximately $1.7 trillion by 2030, offer extensive opportunities for cooperation with Asian countries in the energy, logistics, transport, digital infrastructure, and data center sectors.

Concluding his remarks, Al-Shamlan stated, “The true measure of success lies in increasing the number of jointly financed projects, enhancing connectivity between capital markets, and deepening economic integration between the GCC and Asia.”

Regarding the prospects of linking payment systems and regional liquidity between the Gulf and Asia, Al-Shamlan considered the development of an integrated liquidity network a realistic and feasible future step. He clarified that enhancing connectivity among these systems would facilitate trade, improve cross-border capital flows, reduce transaction costs, and strengthen regional financial stability.

In this regard, he cited the success of the Gulf Payments System (Afaq), which connects the six central banks of the Gulf Cooperation Council (GCC) member states and dozens of participating financial institutions, viewing it as a solid foundation for broader financial integration.

Al-Shamlan welcomed Kuwait’s law on government sukuk, describing it as an important development for local capital markets and regional financial cooperation. He explained that the legislative framework would support diversification of funding sources, establish a sovereign sukuk yield curve, enhance pricing transparency, increase market liquidity, and provide additional Sharia-compliant investment opportunities for investors in the GCC and Asia. He added that the law would help support cross-border investment flows and strengthen liquidity management capabilities within the Islamic finance system.