Kuwait Finance House has officially launched operations in Egypt following its acquisition of Ahli United Bank Bahrain, rebranding it as KFH Egypt. The transition to a fully Sharia-compliant institution is complete, with a focus on innovation and digital transformation. KFH Egypt reported substantial financial growth in 2024 and aims to enhance its market presence, contributing to the country’s economic growth.
Kuwait Finance House (KFH) has officially begun operations in Egypt following its acquisition of Ahli United Bank Bahrain in 2022. This marks KFH’s transformation into a fully compliant Sharia financial institution, finalized in December 2023. The name change to KFH Egypt signifies its integration into the KFH Group and commitment to Islamic banking principles.
Hamad Al-Marzouq, Chairperson of KFH, expressed excitement about entering the Egyptian market, indicating the importance of the rebranding. “We are delighted to establish our presence in Egypt. This transition will strengthen the country’s Islamic banking sector,” he stated. KFH is recognized as the largest bank in Kuwait by market value and has a significant presence in 12 countries, making it the world’s second-largest Islamic bank.
Following the 2022 acquisition, KFH initiated a smooth transition for Ahli United Bank Egypt to Islamic banking, promoting digital transformation under the slogan “Horizons Without Limits.” Al-Marzouq emphasized this transformation as pivotal for driving innovation and enhancing customer experience. He reiterated the importance of continuous improvements in digital banking and customer engagement to maintain leadership in Islamic finance.
KFH Egypt’s CEO, Hala Sadiq, clarified that the rebranding reflects KFH’s integration into a globally recognized Islamic banking leader. “This move aligns with our ambitious expansion plans,” she noted, emphasizing the focus on Sharia-compliant financial solutions tailored to customer needs. KFH aims to enhance its market presence and competitiveness in Islamic finance, effectively serving new customer segments.
In 2024, KFH Egypt reported remarkable financial growth: net profits rose by 65% to EGP 5.5 billion, total assets increased by 29% to EGP 144 billion, while net income from returns surged by 52.4% to EGP 7.6 billion. Customer deposits grew by 30%, and the total financing portfolio expanded by 26%. KFH Egypt operates 44 branches nationwide, providing substantial contributions to the country’s economic development.
The entry of Kuwait Finance House into the Egyptian market through the acquisition of Ahli United Bank marks a significant shift towards Islamic banking in the region. KFH’s successful transformation into a Sharia-compliant entity underscores its commitment to enhancing financial solutions that align with Islamic principles. This expansion highlights KFH’s growth strategy and its aim to solidify its presence in diverse markets, focusing particularly on regions with increasing demand for Islamic banking services.
Kuwait Finance House’s entry into Egypt signifies a landmark expansion in the Islamic banking sector. With the successful rebranding of Ahli United Bank to KFH Egypt, the institution is positioned for substantial growth and enhanced market presence. The financial performance in 2024 exemplifies KFH Egypt’s robust foundation, aiming to lead Islamic banking transformation and contribute positively to Egypt’s economic landscape.
Original Source: www.dailynewsegypt.com
