Hisham Al-Nisf to "Al-Rai": Competition for Real Estate Financing Will Be Decided by Integrated Solutions Beyond Imitation

- Competition will not focus solely on pricing but will expand to include customer experience quality and added value.

- The citizen is the greatest beneficiary of “mortgage financing,” and the enactment of the law represents a long-awaited structural reform.

- Al Ahli’s strong capital base and high liquidity position it to keep pace with any credit growth.

- Al Ahli’s distinction rests on its ability to provide integrated financing and housing solutions.

- The “Home from Al Ahli” design is based on a deep understanding of construction needs, leveraging more than 80 strategic partners.

- Al Ahli’s fundamentals place it in a strong position to lead the mortgage financing market.

- Central Bank data does not show a slowdown in individual financing but rather positive growth since the beginning of 2026.

- We follow a disciplined policy based on customer creditworthiness and repayment capacity, governed by clear professional and supervisory controls.

- The capacity for growth and expansion is not measured by products alone, but by the ability to capitalize on opportunities.

- For us, digitalization is not merely the deployment of technology... The name “Al Ahli” has always been associated with leadership and innovation.

Hisham Al-Nisf, Head of Personal Banking Group at Kuwait Finance House (KFH), stated that citizens are the greatest beneficiaries of “mortgage financing,” and that realizing the dream of homeownership should remain at the forefront of any discussion.

In an interview with “Al-Rai,” Al-Nisf said that the enactment of the mortgage financing law constitutes a long-awaited structural reform that accelerates the economic cycle linked to the sector. He noted that Al Ahli’s strong capital base and high liquidity position it to keep pace with any credit growth, and that Al Ahli’s distinction lies in its ability to provide integrated financing and housing solutions that transcend traditional concepts. He added that the decisive factor in the anticipated banking competition over “mortgage financing” is not limited to the availability of liquidity or funding, but also includes operational readiness and the provision of an integrated solutions ecosystem. He emphasized that competition will not focus solely on pricing, but on the quality of customer experience and the added value provided.

He pointed out that the “Home from Al Ahli” design was based on a deep understanding of customer needs and construction and furnishing requirements, and that Al Ahli’s fundamentals place it in a strong position to capitalize on financing opportunities and solidify its presence in the housing sector.

Al-Nisf noted that Al Ahli serves various segments, starting with children and students, progressing through youth, employees, and business owners, and reaching the wealthiest customer segments and retirees, within a disciplined credit policy based on assessing creditworthiness and repayment capacity under clear professional and supervisory controls. He highlighted that Central Bank data does not reflect an actual slowdown in individual financing since the beginning of 2026, but rather a positive growth pace. The following is the text of the interview:

• What is your view on claims by some that banks are the biggest beneficiaries of the enactment of the mortgage financing law?

- The first and greatest beneficiary of this law is the citizen, as it primarily aims to expand housing financing options and enhance families’ ability to own homes more efficiently and sustainably. When we discuss the housing file, we are addressing one of Kuwait’s largest challenges. Data from the Public Authority for Housing Welfare indicates that there are more than 108,000 pending housing applications as of June 2026, reflecting the volume of accumulated demand and the need for financing solutions that support the state’s efforts to accelerate the provision of housing welfare for citizens.

This is why “mortgage financing” is so important, as it represents a long-awaited structural reform and a step that enhances the efficiency of the housing and financing system, expands available financing channels, and accelerates the economic cycle linked to the sector. Its impact is not limited to the housing aspect; it extends to stimulating the construction, building materials, and related services sectors, thereby supporting economic growth and creating added value for the national economy.

Banks, meanwhile, are a key partner in this transformation and not its sole beneficiary. The Kuwaiti banking sector possesses the capabilities and expertise to effectively contribute to addressing the housing file, within an organized framework that balances the interests of all parties. At Al-Watani, we view mortgage financing as an opportunity to contribute to achieving sustainable economic and social impact, and to enable citizens to realize their dream of homeownership—the most important objective that should remain at the forefront of any discussion regarding this law.

• With the approval of “mortgage financing,” we are talking about a new banking era with a significant financing volume. Is the bank’s liquidity sufficient to meet the expected housing boom?

Absolutely. Al-Watani enjoys a strong capital base and high liquidity levels, placing us in a comfortable position to keep pace with any expected growth in mortgage financing demand in the coming period, which we view as a natural extension of the banking sector’s role in supporting economic development and meeting citizens’ financing needs.

I should also note here that the decisive factor at this stage is not limited to the availability of liquidity or financing capacity, but also includes operational readiness and the ability to efficiently manage long-term financing portfolios, within an integrated system of financing and housing solutions that meet customers’ needs at all stages of their housing journey.

Al-Watani possesses the financial and operational foundations, as well as the expertise, that qualify it to perform this role with high efficiency, giving it a clear advantage and strong readiness to handle any anticipated expansion in the mortgage financing market and to develop more comprehensive solutions that meet citizens’ aspirations in the coming period.

• It is natural that the approval of “mortgage financing” will raise the level of competition among banks, which is a healthy development that serves the interests of both customers and the banking sector. However, we believe that competition in the coming period will not focus solely on pricing, but on the quality of the customer experience and the added value provided by the financial institution.

The residential customer is not looking for financing alone, but for a partner capable of supporting them throughout their housing journey. From this perspective, the success of any bank in this market will depend on its ability to provide integrated solutions that combine financing, service, consultation, speed, and reliability, rather than merely offering a competitive price.

• Amid the expected fierce competition for residential customers and the ample banking liquidity as you mentioned, what will distinguish you in this customer acquisition battle?

- In light of the positive entry of “mortgage financing” into a new phase of growth and regulation—thanks to its role in fostering innovation and providing customers with broader options and better services—Al-Watani’s distinction rests on its ability to deliver integrated financing and housing solutions that go beyond traditional financing concepts, focusing more on customer experience quality, speed of execution, and the diversity of financing solutions and accompanying services. Today, customers seek a partner capable of assisting them in decision-making, simplifying procedures, and providing the services and solutions they need throughout various stages of their housing journey, via an integrated experience that combines flexible financing solutions, advisory support, and strategic partnerships that help execute housing projects more efficiently.

“Al-Manzil from Al-Watani” lies at the heart of this ecosystem, representing one of the most prominent housing solutions programs in Kuwait. It has achieved significant success in recent periods, helping many customers meet their housing needs through a curated package of flexible and well-considered financing solutions and services tailored to diverse housing requirements—whether for building, renovating, developing, or furnishing homes. This is supported by fast processing, specialized advisory services, and advanced digital channels that enable a smoother and more effective experience. The program was designed based on a deep understanding of customer needs and the requirements for building and equipping homes.

The program also features a wide network of more than 80 strategic partners in design, construction, finishing, furnishing, and home supplies, offering customers exclusive benefits, offers, and reliable options that reduce costs by up to 30%. It also simplifies the construction and preparation stages for customers. Therefore, Al-Watani enters the next phase of competition with confidence, not only relying on the strength of its financial position but also on its ability to deliver added value, integrated solutions, and a distinguished banking experience that positions it strongly to lead this sector.

- We believe that Al-Watani’s fundamentals—including a broad customer base, a solid financial position, innovative financing solutions, advanced digital capabilities, and an integrated system of services and housing solutions—place it in a strong position to capitalize on mortgage financing opportunities and consolidate its presence in this promising sector.

Accordingly, we aspire to be among the leading banks benefiting from the expected growth in mortgage financing. We focus on building long-term relationships with customers that align with their needs and aspirations. Naturally, our future market share will reflect our potential, Al-Watani’s standing, and the trust it has enjoyed among customers for decades.

- First, it is important to note that Central Bank of Kuwait data do not indicate any actual slowdown in individual financing during the period covered so far this year. On the contrary, total personal facilities granted to residents and non-residents, according to “Central Bank” data, grew by 4.38% during the first nine months of 2026, compared to approximately 2.95% during the same period in 2025. Meanwhile, the annual growth rate rose to approximately 5.13% (around 3.96% by the end of September 2025).

Therefore, a more accurate picture is that the growth momentum remains positive, although it is influenced, like other activities, by a set of economic and financial variables. Generally, the growth rate of credit facilities granted to individuals remains linked to several key factors, including interest rate trends, levels of economic activity, consumer confidence, consumer spending, as well as developments in the real estate market and the volume of local housing demand.

The market is currently in a phase of anticipation and repositioning as mortgage financing enters a new stage, which may prompt some customers to reorder their financing priorities and allocate a larger share of future demand to housing needs. We believe that mortgage financing will be one of the key drivers of credit growth in the coming phase, not only through increased lending but also through the associated economic activity it will generate and its positive spillovers on multiple sectors linked to housing. Consequently, the outlook for retail financing remains positive, supported by important structural and economic factors.

We are committed to serving various segments of society across all age groups, starting with children and students, progressing through young adults, employees, and business owners, and reaching the wealthiest clients and retirees. Our strategy is built on establishing long-term banking relationships with clients that evolve alongside them through different stages of their lives and financial needs.

Young people remain one of our most important segments, not only because they represent a large proportion of the Kuwaiti society, but because they will shape the future landscape of the banking sector. Therefore, National Bank of Kuwait (NBK) has continued to invest in developing digital solutions, services, and offerings tailored to them. We also place special emphasis on instilling financial literacy from an early age through a range of accounts and services designed for children and youth, thereby enhancing financial awareness and building sustainable banking relationships with new generations.

We follow a disciplined credit policy based on assessing the client’s creditworthiness and repayment capacity according to clear professional and regulatory guidelines. The decision to extend credit is based on a set of criteria, including income stability, cash flows, debt levels, and existing obligations, ensuring a balance between meeting customer needs and maintaining the quality of the credit portfolio. At NBK, we believe that responsible lending serves the interests of the customer, the bank, and the economy simultaneously.

It is important to view this issue within the framework of banks’ liquidity management and funding structure, rather than solely from a pricing perspective. Competition for high-creditworthiness customers is natural in any developed market, and competition for deposits reflects banks’ efforts to strengthen stable funding sources.

Offers that occasionally appear with margins close to the cost of funds are often part of broader strategies aimed at building long-term customer relationships, growing market share, or creating opportunities to offer other products and services in the future. Ultimately, sustainable banking growth does not rely solely on price competition, but on achieving a balance between credit growth, cost of funds management, asset quality, and sustainable profitability.

We believe that digitalization has become an essential part of the future of banking. Therefore, we were among the first to pioneer digital transformation in the banking sector. In this context, we launched “Weyay” in 2021 as Kuwait’s first digital bank, primarily targeting the youth segment, which is the largest in Kuwaiti society and most engaged with modern digital solutions.

Since its launch, Weyay has achieved results exceeding initial targets by more than fourfold, reflecting the success of the digital model and the strong demand for this type of banking service.

What “Wiyai” offers reflects the National Bank’s philosophy of building an integrated banking system that addresses the needs of every segment in a manner suited to them. Today, we can serve customers through a diverse range of channels and solutions designed to meet the needs of different age groups. Therefore, our current focus is not on creating separate digital entities, but rather on developing an integrated banking system that combines the National Bank’s strength and expertise with digital innovation, ensuring a more flexible, convenient, and tailored banking experience for each customer segment.

• All Kuwaiti banks speak of digitalization as an endless race to improve operational efficiency and exceed customer expectations. What is your stance in this regard?

- For the National Bank, digitalization is not merely the application of technology, but a work culture and an integrated approach that shapes how services are designed, how customer experiences are developed, and how operational efficiency is enhanced. Amid the accelerating pace of digital transformation, the goal is no longer just to meet customer expectations, but to anticipate and surpass them. Therefore, we view digital transformation as a continuous journey rather than a temporary project, and we continuously work to enhance the entire customer experience, making it faster, easier, and more flexible across all touchpoints with the bank.

The name “National Bank” has long been associated with leadership and innovation in the Kuwaiti market, having been a pioneer in launching several banking services and products for the first time in Kuwait. Continuing this approach, the National Bank recently launched the first fully digital personal loan, allowing customers to complete all financing steps through the “National Bank Mobile” app. It also introduced the first fully digital credit card issuance experience in Kuwait, a move that reflects our ongoing commitment to simplifying procedures and saving customers time and effort.

Operationally, the National Bank continues to invest in artificial intelligence, data analytics, process automation, and the development of its cybersecurity infrastructure, thereby enhancing operational efficiency, personalizing services according to customer needs, and strengthening security and reliability levels. This comes from our deep conviction that the benchmark for success in the coming phase will not only lie in launching new products or services, but in the ability to deliver an integrated, cohesive banking experience that enables customers to access the services they need, when they want them, and in the way they prefer.

This is what we continue to work on through continuous investment in technology and innovation, elevating the customer experience to new levels, thereby solidifying the National Bank’s position as a leading institution in driving digital transformation in the banking sector.

• Do you believe that Kuwaiti banks are somewhat similar in form, but not all are capable of expanding and growing to the same extent?

- The ability to grow and expand is not measured by products alone, but by the capacity to execute, invest, and leverage available market opportunities. Today, banking success depends not only on capital strength, but on an integrated system that includes asset quality, risk management efficiency, execution capability, technology investment, innovation speed, and the building of long-term customer relationships.

With banking transformations, whether in the realm of digital transformation or the opportunities offered by mortgage financing, the differences between institutions capable of turning these changes into real, sustainable growth opportunities will become clearer. At the National Bank, we believe what distinguishes us is possessing a comprehensive set of strengths, starting from our strong financial position, the quality of our assets, and our accumulated experience across various economic cycles, to our continuous investments in technology, innovation, and customer experience development.

Furthermore, our international presence in key regional and global financial centers, coupled with one of the highest credit ratings among banks in the region from major global rating agencies, along with the scale of our operations and the diversity of our banking products and services, provide us with a strong foundation for growth and greater capacity to seize opportunities and confidently and efficiently navigate various economic cycles.