Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Kuwait keen to become regional financial and economic hub: gov   Join our daily free Newsletter

MENAFN - Arab Times - 27/03/2014
No. of Ratings : 0
Add to Mixx!

(MENAFN - Arab Times) Governor of the Central Bank of Kuwait (CBK), Dr Mohammad Y. Al-Hashel announced on Tuesday that CBK's Board of Directors has approved the principals, rules and regulation for the licensing and operations of foreign banks' branches, and the regulations for opening a foreign banks' representative offices, in the State of Kuwait. Permitting foreign banks to open branches is done all over the world and offers competition in the market place whose beneficiary is the consumer, he told KUNA, noting that such competition leads to cost reduction and increased business which add to Kuwait's keenness on becoming a regional financial and economic power house

The Central Bank of Kuwait, he said, allows the foreign bank to open its branches where it desires and will deal with all the branches as one entity representing the original mother branch. The CBK governor added that foreign banks, opening representative offices, will have these offices under the monitoring eye of the Central Bank. For years, the OPEC member's economic performance has lagged other Gulf Arab oil exporters as ingrained political tensions between the cabinet and parliament, and entrenched bureaucracy, have delayed business reforms and multi-billion-dollar infrastructure plans

"The new rules will have a positive impact on the local market as they enrich the type of services being offered, create new jobs and ultimately result in the economic and social growth of the country," the central bank said in a statement. Previously, each foreign bank was limited to opening one branch in Kuwait; that restriction will now be removed, though the central bank will still approve new branches on a case-by-case basis. The new rules also allow foreign lenders to open representative offices in Kuwait, one of the world's major oil exporters, the central bank said on its website (www.cbk.gov.kw)

Kuwait has 11 domestic banks: five conventional, five Islamic and one specialised bank, according to the central bank. There are also 11 branches of foreign banks, including top regional lenders such as National Bank of Abu Dhabi and Qatar National Bank, as well as international heavyweights such as BNP Paribas, Citigroup and HSBC. Other restrictions on foreign banks in Kuwait have limited them to offering investment banking services and banned them from competing in the retail sector. It was not immediately clear whether these restrictions might be eased

Kuwait's 186 billion economy is expected to grow by a mere 3.0 percent this year, the slowest pace among the six Gulf Cooperation Council (GCC) countries, slightly up from an estimated 2.8 percent last year, a Reuters poll of analysts showed in January. The International Monetary Fund said in December that Kuwait's heavy reliance on oil revenues - oil and its products account for more than 95 percent of goods exports - had increased income volatility and risks to long-run growth

"Credit growth in Kuwait has been extremely weak. So one argument would be: let more foreign banks come in and let them compete and perhaps they can kick-start lending more aggressively," said Farouk Soussa, Citigroup's chief economist for the region. "If you speak to people in banks in Kuwait, they are more than happy to lend, provide credit to viable projects and companies. But there are not many of those guys in Kuwait, so it does not matter how much supply you put in, you have to improve demand as well. So I think there is a bit of a problem there." Kuwait attracted mere 4.7 billion in foreign direct investment in a decade to 2012, just 1.4 percent of total flows into the six GCC states, according to the United Nations Conference on Trade and Development


Arab Times

  MENA News Headlines
 Oct 8 2015 - UK official says Russia making situation in Syria more dangerousKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) UK Secretary of State for Defence, Michael Fallon, called on Russia Thursday to stop supporting the regime of Bashar Al-Assad and to stop the regime from bombing ...

 Oct 8 2015 - EP calls for intØ¢'l protection for E.JerusalemKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) The European Parliament called Thursday East Jerusalem to be placed under immediate international protection after a series of violent clashes have left several ...

 Oct 8 2015 - USD to drop further as profit raise postpones - analystKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) The rate of the US dollar is expected to drop against the main currencies in time of weakening expectations on the raise of profit rates in the US before the end ...

 Oct 8 2015 - Israeli forces arrests 40 Palestinians in West BankKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) Forty Palestinians were arrested by the Israeli force during an operation in the West Bank, said a statement by the Palestinian prisoners club Thursday.According ...

 Oct 8 2015 - Syrian Army: Russian airstrikes reduced ISIL fighting capabilitiesKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) Airstrikes by Russian warplanes reduced fighting capabilities of the so-called Islamic State in Iraq and Levant (ISIL) in Syria, the Syrian Armed Forces Commander ...

 Oct 8 2015 - Western, Russian intervention in Syria making matters worse - Arab LeagueKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) The Western and Russian intervention in Syria will not end the war and will not eliminate presence of the so-called Islamic State in Iraq and Levant (ISIL), said ...

 Oct 8 2015 - Kuwait- Light rain, dust for Thursday evening weather - forecastKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) Light rain and dust is expected for the weather Kuwait Thursday's evening, said a weather forecast official.Deputy head of Kuwait weather forecast department, ...

 Oct 8 2015 - Jewish settler stabbed in JerusalemKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) A Jewish man was stabbed Thursday in his upper body in Jerusalem in the third stabbing attack in just over 24 hours.Haaretz newspaper said on its website that a ...

 Oct 8 2015 - OPEC oil price up to USD 48.24 pbKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) The OPEC daily basket price went up Wednesday USD 2.16 and stood at USD 48.24 per barrel (pb) compared with USD 46.08 pb the previous day, the cartel said here on ...

 Oct 8 2015 - Kuwaiti seeks Costa Rica's support to get non-Permanent UNSC seatKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) A Kuwaiti Parliamentary friendship group sought Costa Rica's President Luis Guillermo Solis' support to help Kuwait obtain a non-permanent seat at the UN Security ...




Click to Apply


Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  

Middle East North Africa - Financial Network

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices


Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks

Saudi Arabia 

Economic Calendar
Financial Glossary

Financial Calculators

RSS Feeds [XML]

Corporate Monitor


Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters

© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help