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
 Sep 25 2016 - 6,992 Candidates to Compete in Morocco's Legislative ElectionsMorocco World News
(MENAFN - Morocco World News) A total of 1,410 candidacy lists were submitted for local and national electoral districts, including 6,992 candidates, according to provisional preliminary data at the ...

 Sep 25 2016 - Morocco Takes Note of Re-election of Gabon's Pres. Ali Bongo OndimbaMorocco World News
(MENAFN - Morocco World News) The Kingdom of Morocco takes note of the decision, taken on Friday, by the Constitutional Court of the Republic of Gabon, validating the re-election of president Ali ...

 Sep 25 2016 - Morocco's Legislative Elections: An Unpredictable Hollywood MovieMorocco World News
(MENAFN - Morocco World News) The views expressed in this article are the author's own and do not necessarily reflect Morocco World News' editorial policy data-ad-client="ca-pub-9546318280945074" ...

 Sep 25 2016 - US sure of IS chemical rocket use against troops in IraqMENAFN
(MENAFN) the US military has confirmed that a rocket launched by Islamic State militants at American troops based in Iraq did contain a mustard agent.No-one was hurt in Tuesday's attack on the ...

 Sep 25 2016 - Jordan author, Nahid Hattar, killed after blasphemy caseMENAFN
A Jordanian writer charged with offending Islam after allegedly sharing a satirical cartoon on his Facebook page has been killed.Nahid Hattar, a Christian, was hit by three bullets outside the court ...

 Sep 25 2016 - Oil remains range bound ahead of Algeria gatheringProactiveInvestors - N.America
(MENAFN - ProactiveInvestors - N.America) The oil price remains range-bound this week as traders and investors nervously await the International Energy Forum's gathering in Algeria next week. ...

 Sep 25 2016 - Islamists, women make gains in Jordan pollsMENAFN
(MEANFN) Islamists have won seats in Jordan's parliament after years of boycott, in polls which also elected record numbers of female MPs, initial results show.In detail, the Muslim Brotherhood's ...

 Sep 25 2016 - We can't take West Indies lightly: Pakistan coachKhaleej Times
(MENAFN - Khaleej Times) Pakistan coach Mickey Arthur hoped that the team can carry the momentum gained from the fag end of the England series on to the series against the West Indies. The Pakistan ...

 Sep 25 2016 - 18 teams, 555km, one aim - Abu Dhabi Tour gloryKhaleej Times
(MENAFN - Khaleej Times) As many as 18 teams with six riders each will challenge for supremacy at the four-day Abu Dhabi Tour next month. The 555-km Capital edition will be held on four routes ...

 Sep 25 2016 - Bahraini Crown Prince meets UK Secretary of State for International TradeEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) MANAMA, 19th September, 2016 (WAM) -- Prince Salman bin Hamad Al Khalifa, Crown Prince, Deputy Supreme Commander and First Deputy Prime Minister of Bahrain ...

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

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

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