Press Releases

H.E. Sheikh Salem Abdulaziz Al-Sabah, Governor of the Central Bank of Kuwait, announced the issuance on 9/6/2007 of the Minister of Finance decision No. 28 of year 2007 concerning striking the Kuwait Real Estate Bank from the register of conventional banks and recording it in the register of Islamic banks with the CBK under its new name 'International Bank of Kuwait'. In implementation of this decision the Kuwait Real Estate Bank will be struck from the register of banks and recorded under N=3 in the Islamic Banks' Register, under its new name 'International Bank of Kuwait', whereby the bank will start exercising its functions according to the provisions of the Islamic Sharia as of Sunday the 1st of July 2007.

H.E. explained that this decision is in conclusion of the procedures of the total conversion of the bank to operating according to the provisions of Islamic Sharia, in implementation of Article 4 of the Law No. 30 of year 2003, which adds a special section on Islamic banks to the Third Article of Law No. 32 of year 1968 concerning Banks, the Central Bank of Kuwait, and the Organization of Banking Business. According to that decision, the mentioned bank will start operating according to the provisions of Islamic Sharia and discontinued non-Sharia compliant operations and activities.

H.E. added that the time elapsed in converting the mentioned bank to operating according to the provisions of Islamic Sharia, since the issuance of CBK's decision in March 2004 to grant preliminary approval for the bank's conversion as announced at that time, is essentially attributable to CBK's eagerness to ascertain the fulfillment of all operating and organizational requirements for the conversion of the bank in a way that ensures the success of this operation and its completion in the hoped optimum manner, considering that it is the first such banking experience in the State of Kuwait, and therefore, a model for conducting such operations on sound methodological bases applicable in the State of Kuwait or any other country.

The Governor concluded his statement by indicating that the registration of the Kuwait International Bank in the Islamic Banks' Register at the CBK, along with the Kuwait Finance House and Bubiyan Bank, will no doubt enhance the experience of implementing the law concerning Islamic banks in the State of Kuwait and enrich the climate of competition in that field in the domestic market, which is ultimately for the good of the local banking system, its customers, and those dealing with it.