Business
PRESSR: CBK issued its Initial approval on the conversion of Gulf Bank to a bank compliant with Islamic Sharia’a
PRESSR: CBK issued its Initial approval on the conversion of Gulf Bank to a bank compliant with Islamic Sharia’a
About this update from Gulf Bank K.s.c.
Ahmad Mohammad Al-Bahar: A pivotal milestone in the Bank’s journey, and we are fully committed to fulfilling all requirements to achieve a successful and gradual transformation.It represents a strong motivation to move forward with the transformation process in a way that fulfills the Bank’s objectives and contributes to strengthening the national economy.Gulf Bank stated that CBK’s Board of Directors has decided on 18/8/2025 to issue its Initial Approval on the conversion of Gulf Bank to a Bank compliant with Islamic Sharia’a, as per law no. (32) of the year 1968 concerning currency, the Central Bank of Kuwait, and the organization of banking business. That decision came following the results of the feasibility study on the conversion of Gulf Bank submitted by the international consultant, as well as the submission of multiple technical and legal requirements by Gulf Bank.In a disclosure published on the stock exchange website, Gulf Bank stated that the initial approval issued by the Central Bank of Kuwait, valid for one year as of this date, is subject to a specific technical, legal, and operational requirement, which are as follows:The Bank shall ensure, during the initial approval period of one year, finalizing all regulatory and operational requirements for the conversion. Once completed, the Bank shall request CBK’s approval to move forward with completing the Islamic conversion process in accordance with provisions of the Companies Law. In the event of non-compliance, this approval shall be deemed cancelled.The need to submit a request to CBK to obtain its approval for the Advisory Bodies whom the Bank will engage with.Providing CBK, by end of December 2025 with a conclusive report on elements of the existing activities prior to conversion which will be carried over by the Bank post-conversion, and the timeline to terminate these activities.Submit a request to CBK to obtain a prior approval for the offered services and products according to provisions of the Islamic Sharia’a.The need for the Sharia’a advisors to have a role in pursuing verification of the conversion of the Bank’s existing products and services to Sharia’a compliant products and services as part of the Conversion Process Steering Committee, and to obtain CBK’s approval on the advisors who will be assigned for this purpose.Refrain from practicing any activities in accordance with the...