Press Releases

H.E. Sheikh Salem Abdulaziz Al-Sabah, the Governor of CBK has stated that on 11 September 2005 the CBK Board of Directors met and deliberated the total transformation of the Kuwait Real Estate Bank (KREB) to operate in accordance with the provisions of Islamic Sharia, and decided to postpone resolution on the subject till all major vacancies are filled, specially the post of the Chief Executive Officer.

H.E. the Governor explained that the initial approval for the transformation of KREB, given in March 2004, was valid for one year. This approval validity was extended to 31 July 2005 upon request from KREB to allow it more time to appropriately conclude certain organizational and operational aspects, and to ensure the success of this transformation process as hoped for, given it being the first such experience for banks in the State of Kuwait. KREB has fulfilled most of the organizational and operational requirements during the appointed time mentioned earlier, according to the transformation plan it had submitted, except for completing its executive team as indicated earlier.

Also, H.E. the Governor has stated that the CBK Board of Directors has decided in the same meeting to give its initial approval to licensing Citibank N.A., New York, to open a branch in the State of Kuwait. This being the fourth such case of allowing foreign banks to open a branch in the State of Kuwait, since the recent changes were incorporated into the CBK Law by virtue of Law No. 28/2004, which eliminated the restriction to entry of foreign banks into the domestic market through having branches there. The restriction stipulated that these banks shall have the Government of Kuwait or Kuwaiti banking and financial institutions as shareholders. The CBK Board of Directors has previously given three approvals to opening branches to other foreign banks, namely BNP Paribas, the National Bank of Abu Dhabi, and HSBC Bank Middle East.

H.E. the Governor indicated that the next step according to procedures, set forth by the provisions of Law No. 32/1968 and its amendments, is to present the matter to the Council of Ministers for its decision on the approval for opening of a branch of Citibank N.A. New York in the State of Kuwait.