Al-Shamlan: Effective Partnerships and Growth Opportunities Drive the Future of Banking Between Gulf and Asia
Al-Shamlan stated that effective partnerships and growth opportunities are shaping the future of banking between the Gulf and Asia, highlighting the success of a $1 billion sukuk issuance.
Translated by Qiyas from السياسة — Original source
During Kuwait Finance House’s participation in the Asian Gulf Economic Forum in Bangkok
Kuwait Finance House’s $1 billion sukuk issuance reflects the strength of integration between Gulf and Asian capital markets
Khaled Yousef Al-Shamlan, CEO of Kuwait Finance House Group, participated in a panel discussion titled “Core Banking and Balance Sheet Partnerships” at the Asian Gulf 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 and the World Bank Group.
Al-Shamlan emphasized 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 between capital markets, and rising demand for Sharia-compliant financing solutions.
Gulf-Asian Banking Integration
Al-Shamlan highlighted Kuwait Finance House’s experience as evidence of growing financial integration between the two regions. He noted 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 banking cooperation between the Gulf and Asia.
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 issuance attracted strong demand from investors in Asia and the Middle East, with oversubscription reaching more than double the issue size, reflecting growing investor interest in cross-border opportunities in Islamic capital markets.
Al-Shamlan stated, “The impact of the sukuk issuance extended beyond enabling Kuwait Finance House to diversify its funding sources; it also provided Asian institutions with broader access to international Islamic capital markets. This confirms that integration between Gulf and Asian capital markets is becoming firmly established in practice.”
Strategic Expansion Drives Growth
Speaking about the bank’s international expansion strategy, Al-Shamlan clarified that Kuwait Finance House’s expansion into foreign markets is based on the Board of Directors’ vision to position the Group among the world’s top 100 banks and to build a more diversified and resilient financial entity.
He pointed out that the strategic acquisition of Al Ahli United Bank in Bahrain (prior to its name change) significantly contributed to enhancing the Group’s presence in 10 countries, including Bahrain, Turkey, Germany, the United Kingdom, and Egypt.
Al-Shamlan said, “This acquisition helped balance corporate and retail banking activities, diversify revenue sources outside the Gulf region, reduce concentration risks, and enhance profit resilience.”
“At a time when Kuwait Finance House’s market capitalization has reached approximately $50 billion, the Group continues to deliver strong financial performance, recording the highest net profit in the Kuwaiti banking sector and among listed companies on the Kuwait Stock Exchange.”
Sharia Governance and Expansion in International Markets
Al-Shamlan affirmed that differences in Sharia governance frameworks across countries do not hinder deeper financial integration between the Gulf and Asia. He noted that Sharia governance is an integral part of the bank’s operational model, with Kuwait Finance House having a proven track record of successfully operating for 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-compliant standards that enjoy international recognition. He added that these frameworks, along with Kuwait Finance House’s extensive expertise in transforming conventional banking operations into business models compliant with Islamic Sharia principles, have enabled the Group to successfully operate in multiple regulatory environments and effectively address cross-border supervisory requirements.
Al-Shamlan also 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 an increase to $6.9 trillion by 2029. Meanwhile, the Gulf Cooperation Council (GCC) countries account for approximately 40% of global Islamic banking assets.
Gulf-Asian Trade Volume
Regarding future cooperation prospects, Al-Shamlan highlighted that trade volume between the 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 said, “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.”
An Integrated Gateway for Islamic Finance
Al-Shamlan emphasized that establishing an integrated gateway for Islamic finance requires more than just facilitating capital flows; it necessitates providing mutual access to markets, 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 enabling Gulf issuers to access a broad base of Asian capital.
He said, “Kuwait Finance House’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.”
Strengthening Interconnectivity of Liquidity Systems
On the prospects of linking regional payment and liquidity systems 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 interconnectivity 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 (MPS), which links the six central banks of the GCC countries and dozens of participating financial institutions, viewing it as a solid foundation for broader financial integration.
