IslamicFinance.de

It appears that Liquidity Management House, a unit of Kuwait Finance House (KFH), is going to issue $1 billion in sukuk. KFH's Turkish unit announced in March that they will establish $500 million Islamic bond by end-year.

The government acquires 49% of its shares, while 51% were offered for public subscription with a capital of KD 10 million. KFH has been keen to prioritize its clients, since they have exerted sterling efforts to set it up, and have continued to support it at a time when many people doubted that it will continue.
Moreover, KFH introduced Shariah compliant banking services and products that are used by people daily, where they are now familiar with terms such as Ijarah, Murabaha, Istisnaa, and speculations.
Regarding KFH’s social responsibility role, it spent last year more than KD 8 million for social issues, and has also financed several major developmental projects in Kuwait and the world.

Kuwait Finance House's (KFH) Turkish unit will launch a 500 million US dollar Islamic bond by the end of the year.
Mohammed Al-Omar said the Islamic lender will issue the benchmark Sukuk following the success of Turkey's first Islamic bond offering, from lender Kuveyt Turk in August.
Al-Omar noted that the law is a significant step forward that reveals a great desire by many Turkish companies that have good assets but lack the suitable financing to expand locally and overseas to benefit from this new financing instrument; especially after those companies realized the numerous benefits of Sukuk, which include providing financing through Sukuk while neither hindering projects nor exhausting their budgets.

Kuwait Finance House (KFH) said on Sunday its net profit in 2010 dropped 10.7 percent, despite a rising asset base.
In 2009, the bank's profit dived 24 percent due to the global financial crisis.

Kuwait Finance House (KFH) reported a net profit of $10m following the liquidation of a real estate fund targeting the Turkish market.
The liquidation process seem to come with a return on investment of 14 percent.

Kuwait Finance House (KFH) made an early payment of $250 million that had the due date in March 2011.

The restoration of a traditional Bahraini house, a contract with Ewan Al Bahrain for the construction and renovation of the Al Nuzul project was signed by KUWAIT Finance House (KFH).
The two persons who signed the agreement were Culture Minister and chairperson of the board of trustees of the Shaikh Ebrahim Centre for Culture and Research Shaikha Mai bint Mohammed Al Khalifa and KFH managing director and chief executive officer Abdulhakeem Al Khayyat.

Kuwait Finance House (KFH) CEO Mohammed Al-Omar stated that that the Fatwa and Shariah Supervisory Authority has embodied the moral and social responsibility towards the society as a unit that operates in harmony to protect the client by ensuring that all banking transactions are Shariah compliant. The authority has played a pivotal role in developing numerous products that caused a paradigm shift in the in the history of Islamic banking. He appealed to governments to resort to Sukuk, since Sukuk have greatly succeeded in financing many projects, which made Sukuk highly demanded by worldwide.
Al-Omar added in a paper that he presented during the Islamic Financial Institutions Forum in Beirut, that Sukuk are considered to be the Shariah compliant alternative for bonds, were not granted an opportunity to highlight its role as a suitable financing tool, despite the advantages that Sukuk have, such as creating assets that have a specific value, which makes the financing process based on real tangible assets, in addition to the fact that it does not burden governments and companies.

Private Financial Services Department Manager at Kuwait Finance House (KFH) Talal Al-Nesf claims demand for private Islamic banking services has grown rapidly during the past two years, despite the impact of the financial crisis.
However, Al-Nest also pointed out that private banking clients have reassessed their objectives and strategies, becoming more conservative while also seeking profitable products with minimal risks. Such an approach is contrary to their approach before the crisis, where they were willing to take high risks in return for high returns in light of the available opportunities and liquidity.
KFH is currently considering new products from all aspects, especially the level of risk, the expected returns, and the estimated exiting time. Those products are expected to be offered through funds that invest in the sectors of Ijarah and shipping. In addition, Al-Nest stated that KFH is expected to boost the Sukuk market.

Kuwait Finance House (KFH), the country’s biggest Islamic lender, saw an 11 percent drop in loan loss provisions in the first nine months of the year.
On Thursday, KFH posted a 23 percent decline in third-quarter net profit. Net income in the three months to Sept. 30 fell to 26.5 million dinars compared with 34.3 million dinars with the same period a year ago.

A report prepared KFHR Limited, a subsidiary of Kuwait Finance House (KFH), brought attention to the fact that the financing deals in compliance with the provisions of Islamic Sharia'a contributed to the growth of aviation and shipping sectors in the region.
This growth was achieved through huge financing deals concluded over the past few years and introduced benefits to these sectors.
The report, which addresses in detail the issues relevant to Islamic finance industry, aviation and shipping, explains that the aviation sector which is seeing strong growth in demand since it emerged from the rescission crisis in 2003 to reach a peak demand in 2007, seems to poise for further recovery given several key factors to support this fact. This level is therefore supported by: (i) rapid development of aviation sector in emerging markets; (ii) booming of low-cost carriers; and (iii) replacement of less efficient aircraft. The overall volume of deals compliant with the provisions of Islamic Sharia'a reached during the period from August 2006 to August 2010, $1.882bn through various structures of Islamic financing.