Kuwait Finance House has agreed to sell its 18.18 percent stake in the UAE’s Sharjah Islamic Bank for 1.29 billion dirhams ($351 million), pending regulatory approvals.
The sale involves 588 million shares at 2.20 dirhams each and will impact KFH’s third quarter financial statements, though the effect on its income statement is expected to be minimal.
The shares were sold to the Endowment of Sheikh Sultan bin Mohammed bin Saqer Al-Qasimi, the Sharjah Social Security Fund, and Sharjah Islamic Bank.
This move is part of KFH Group’s broader financial strategy and follows its recent financial achievements and strategic mergers.
Kuwait Finance House, which provides Shariah compliant banking products and services, has been focusing on consolidating and expanding in the GCC and the wider regional markets. In July, the lender said it was looking at potential expansion across Saudi Arabia.
KFH completed a merger with Ahli United Bank-Kuwait in February 2023, and previously acquired Ahli United Bank-Bahrain in July 2022 for $11.6 billion.
In 2023, “KFH holds the top spot for market capitalization in Kuwait, exceeding 12 billion dinars.
It also boasts the highest traded liquidity on Boursa Kuwait, surpassing all other listed companies, groups, and banks,” KFH Chairman Hamad Abdulmohsen Al-Marzouq said.
KFH reported a record net profit of 584.5 million Kuwaiti dinars ($1.92 billion), reflecting a 63.4 percent increase from the previous year and marking the highest profit ever recorded in Kuwait’s banking sector.
The bank is also exploring expansion opportunities in Saudi Arabia but has not yet signed any agreements, according to recent reports.
The UAE’s Islamic banking sector saw significant growth, with asset values rising to 703 billion dirhams by the end of 2023, up from 630.7 billion dirhams in December 2022, as reported by the Central Bank of the UAE.—AN
