Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Kuwait keen to become regional financial and economic hub: gov   Join our daily free Newsletter

MENAFN - Arab Times - 27/03/2014
No. of Ratings : 0
Add to Mixx!


(MENAFN - Arab Times) Governor of the Central Bank of Kuwait (CBK), Dr Mohammad Y. Al-Hashel announced on Tuesday that CBK's Board of Directors has approved the principals, rules and regulation for the licensing and operations of foreign banks' branches, and the regulations for opening a foreign banks' representative offices, in the State of Kuwait. Permitting foreign banks to open branches is done all over the world and offers competition in the market place whose beneficiary is the consumer, he told KUNA, noting that such competition leads to cost reduction and increased business which add to Kuwait's keenness on becoming a regional financial and economic power house



The Central Bank of Kuwait, he said, allows the foreign bank to open its branches where it desires and will deal with all the branches as one entity representing the original mother branch. The CBK governor added that foreign banks, opening representative offices, will have these offices under the monitoring eye of the Central Bank. For years, the OPEC member's economic performance has lagged other Gulf Arab oil exporters as ingrained political tensions between the cabinet and parliament, and entrenched bureaucracy, have delayed business reforms and multi-billion-dollar infrastructure plans



"The new rules will have a positive impact on the local market as they enrich the type of services being offered, create new jobs and ultimately result in the economic and social growth of the country," the central bank said in a statement. Previously, each foreign bank was limited to opening one branch in Kuwait; that restriction will now be removed, though the central bank will still approve new branches on a case-by-case basis. The new rules also allow foreign lenders to open representative offices in Kuwait, one of the world's major oil exporters, the central bank said on its website (www.cbk.gov.kw)




Kuwait has 11 domestic banks: five conventional, five Islamic and one specialised bank, according to the central bank. There are also 11 branches of foreign banks, including top regional lenders such as National Bank of Abu Dhabi and Qatar National Bank, as well as international heavyweights such as BNP Paribas, Citigroup and HSBC. Other restrictions on foreign banks in Kuwait have limited them to offering investment banking services and banned them from competing in the retail sector. It was not immediately clear whether these restrictions might be eased



Kuwait's 186 billion economy is expected to grow by a mere 3.0 percent this year, the slowest pace among the six Gulf Cooperation Council (GCC) countries, slightly up from an estimated 2.8 percent last year, a Reuters poll of analysts showed in January. The International Monetary Fund said in December that Kuwait's heavy reliance on oil revenues - oil and its products account for more than 95 percent of goods exports - had increased income volatility and risks to long-run growth



"Credit growth in Kuwait has been extremely weak. So one argument would be: let more foreign banks come in and let them compete and perhaps they can kick-start lending more aggressively," said Farouk Soussa, Citigroup's chief economist for the region. "If you speak to people in banks in Kuwait, they are more than happy to lend, provide credit to viable projects and companies. But there are not many of those guys in Kuwait, so it does not matter how much supply you put in, you have to improve demand as well. So I think there is a bit of a problem there." Kuwait attracted mere 4.7 billion in foreign direct investment in a decade to 2012, just 1.4 percent of total flows into the six GCC states, according to the United Nations Conference on Trade and Development




 


Arab Times




  MENA News Headlines
 Feb 27 2017 - Egypt- Coptic families' outflow from Al-Arish heading to Ismailia is still ongoing: residentsDaily News Egypt
(MENAFN - Daily News Egypt) For the third consecutive day, the outflow of Coptic families deciding to flee their residences located in the North Sinai city of Al-Arish to the governorate of ...

 Feb 27 2017 - Dina Farms registered sales of EGP 570m in 2016Daily News Egypt
(MENAFN - Daily News Egypt) Qalaa Holdings' Dina Farms aims to achieve 38% growth in sales to reach EGP 790m in 2017, up from EGP 570m in 2016. Managing director of the company, Raouf Tawfik, ...

 Feb 27 2017 - Egypt- Kernile to inaugurate new peanuts production line this month: executive managementDaily News Egypt
(MENAFN - Daily News Egypt) Kernile Ltd. plans to boost its production capacity to 30,000 tonnes of peanuts a year after the new expansions carried out recently. Director of the company's ...

 Feb 27 2017 - Gulfood celebrates 30-year anniversary with new categorisationDaily News Egypt
(MENAFN - Daily News Egypt) The Gulfood Exhibition is preparing to mark its biggest change in categorisation in its 30 years since its establishment. The exhibition launched on Sunday and will ...

 Feb 27 2017 - Egypt- 20% expected increase in exports of El-Horreya 2000 in 2017Daily News Egypt
(MENAFN - Daily News Egypt) El-Horreya 2000 for Food Industries aims to increase its exports by 20% in 2017. The company's managing director, Hassan Fendi, said that the company is planning to ...

 Feb 27 2017 - Egypt- Rolin studies developing a housing project in SharabeyaDaily News Egypt
(MENAFN - Daily News Egypt) The General Construction Company (Rolin), a subsidiary of the Holding Company for Construction and Development (HCCD), is now studying to develop a land it owns in the ...

 Feb 27 2017 - Egypt- Mahmoud Mokhtar Museum hosts "A Story of Her" Exhibition in MarchDaily News Egypt
(MENAFN - Daily News Egypt) In the presence of professor Khaled Sorour, head of the Fine Arts sector in Egypt, Mahmoud Mokhtar Museum hosts the "A Story of Her" exhibition of the leading ...

 Feb 27 2017 - Egypt- Japanese Film Week revives Japan's 'taste of life'Daily News Egypt
(MENAFN - Daily News Egypt) Slovenian philosopher Slavoj Žižek said, "Cinema is the ultimate pervert art. It doesn't give you what you desire—it tells you how to desire.' Believing in that ...

 Feb 27 2017 - Egypt- Controversial preacher sentenced to 5 years for insulting IslamDaily News Egypt
(MENAFN - Daily News Egypt) On Sunday the Shubra El-Kheima Misdemeanours Court sentenced Muslim preacher Mohamed Abdullah, known as 'Sheikh Mizo' to five years in prison on charges of contempt of ...

 Feb 27 2017 - Egypt- Al-Sisi, Al-Tayeb review Al-Azhar's latest effort on renewing religious discourseDaily News Egypt
(MENAFN - Daily News Egypt) President Abdel Fattah Al-Sisi received the Grand Imam of Al-Azhar, Ahmed Al-Tayeb, in a meeting on Sunday, in which Al-Tayeb reviewed recent efforts for renewing ...

more...


 





Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Search News
Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help