Banking on sustainable finance and digital transformation

Kuwait

Salah Al Fulaij, Kuwait CEO at the National Bank of Kuwait (NBK), talks to The Energy Year about the bank’s ongoing support for Kuwait’s key energy projects and the investment capabilities enabled by its growing international footprint. NBK is a Kuwaiti bank that offers corporate and personal banking products and services.

Can you walk us through NBK’s performance in 2025 so far and how the bank is positioning itself to support Kuwait’s economic growth?
Our strong financial performance in the first half of 2025, with net profit reaching KWD 315.3 million [USD 1 billion], up 7.8% year-on-year, reflects the resilience and robustness of NBK’s diversified business model. This achievement builds on our solid 2024 performance and demonstrates our ability to deliver sustained growth across varying economic cycles, even amid heightened geopolitical tensions, global trade realignments, supply chain disruptions and the ripple effects of recent US tariffs.
The main factors behind these strong operational results include solid performance across our core business segments and significant contributions from both the International Banking Group and Boubyan Bank, our Islamic banking arm. Additionally, NBK Wealth continues to strengthen its leadership in private banking and wealth management, offering an integrated suite of advisory and investment services domestically and internationally.
Thinking ahead, we will navigate Kuwait’s evolving economic landscape with a disciplined, forward-looking strategy to capitalise on the resilience of non-oil sectors and government-led development initiatives, while mitigating regional and global uncertainties.
Our investments in digital transformation, sustainable finance and talent development continue to be key enablers of growth, elevating the customer experience and reinforcing NBK’s position as a driver of Kuwait and the region’s economic diversification and sustainability goals.

As Kuwait accelerates energy investments, how is NBK supporting both traditional and renewable energy initiatives?
As Kuwait steps up its investments in the energy sector, NBK will continue to play a central role in financing key initiatives, supporting KPC’s USD 410-billion investment pipeline in pursuit of its 2040 targets.
NBK provides tailored financing for upstream developments to support heavy oil expansion and infrastructure projects through instruments such as the KWD 350-million [USD 1.14-billion] five-year revolving loan we have extended to the company, as well as landmark facilities such as the KWD 1-billion [USD 3.25-billion] term loan we provided in 2020.
Beyond conventional energy, we are also backing Kuwait’s carbon neutrality ambitions by financing utility-scale solar PV and CSP [concentrated solar power] plants to power oil production as well as wind projects globally. We are also issuing green bonds and ESG-linked loans that attract international investment. NBK further supports local economic growth by backing contracts with domestic and international service providers to KPC and the K-companies.
Looking ahead, supportive policy frameworks, increasingly transparent procurement and well-defined renewable targets will be vital for Kuwait to realise its full potential. At NBK, we aim to connect Kuwait’s conventional and renewable energy ambitions, powering both the growth of Kuwait’s traditional energy industry and its transition to a low-carbon economy.

How does NBK assess Kuwait’s renewable energy targets, and how is the bank supporting renewable and alternative energy projects?
Ambitious renewable energy targets represent a decisive step toward carbon neutrality and align with Kuwait Vision 2035. We view this as both a national priority and an opportunity to drive sustainable growth, diversify the energy mix, reduce emissions and enhance long-term resilience against global climate shifts.
Through our Sustainable Financing Framework, our sustainable assets portfolio reached USD 4.97 billion by the end of 2024. Roughly two-thirds of these funds supported green projects, including utility-scale solar PV, onshore and offshore wind and low-emission infrastructure.
In Kuwait, we are engaging with potential developers within Al Shagaya Renewable Energy Park. The first zone is in the tendering stage through the Kuwait Authority for Partnership Projects, and we are well-positioned to lead the financing of the project. Furthermore, 17% of the proceeds from our 2024 USD 500-million green bond were directed to renewable energy projects that will result in 3.4 GW of installed capacity.

What is your outlook on the growth of green finance in Kuwait and the wider region?
Green finance is no longer a niche, but a central pillar of sustainable economic diversification across the GCC, with the UAE and Saudi Arabia already emerging as leaders in the space. Green bonds and sukuk (Islamic bonds) are becoming a mainstream strategy to fund the energy transition, clean infrastructure and climate-resilient projects.
Our inaugural USD 500-million green bond in 2024 was the first in the country, and our ambition is to bring Kuwait to the forefront of this space. The issuance is helping us finance 18 green projects across the Middle East, Europe, North America and Asia-Pacific, spanning renewable energy, clean transportation and green buildings.
We are committed to expanding our sustainable finance offerings, whether through additional green bonds, sustainability-linked loans or ESG-driven investment products, while upholding international standards such as the Green Bond Principles and the UN Sustainable Development Goals.
By channelling capital into high-impact areas such as renewable energy, water management, sustainable infrastructure and green mobility, we will ensure that NBK plays a defining role in advancing Kuwait Vision 2035 and shaping the region’s transition toward a more sustainable future.

How is NBK’s growing global reach strengthening the bank’s ability to support Kuwaiti investments abroad?
Our international footprint has always been a cornerstone of NBK’s strength, allowing us to support Kuwaiti investments across borders. Through our presence in London, New York, Paris, Geneva, Singapore and China, alongside our strong regional bases in Saudi Arabia, the UAE, Bahrain, Egypt, Iraq and Lebanon, NBK ‘s network in Kuwait and at a regional level is unmatched.
This reach allows us to connect our clients to deep pools of liquidity, sophisticated financing structures, and cross-border advisory services. We also bring world-class expertise in project finance and sector specialisation in oil and gas, renewables and infrastructure, thanks to our long-term financing relationship with KPC and our participation as advisers in large-scale energy and petrochemical ventures abroad.
Our expanding global footprint positions us as Kuwait’s financial bridge to the world, giving us the ability to deliver deep local insight into Kuwaiti and regional markets and tailored financing solutions that are both globally competitive and locally relevant. Ultimately, we ensure that our clients benefit from seamless access to international markets, allowing Kuwaiti investors to compete and lead globally across industries.

What role do digital initiatives play in NBK’s engagement with Kuwait’s energy industry?
NBK is pursuing digital transformation across all facets of its business to deliver operational excellence and sustainable growth. By investing in cutting-edge digital platforms, AI-driven analytics and advanced fintech solutions, NBK is strengthening its capacity to finance strategic sectors with faster, more precise risk assessments, real-time project monitoring and streamlined transaction execution for both conventional and clean energy initiatives.
This alignment between technology and sustainability reflects the best practices of leading international financial institutions, which have long emphasised the role of digital infrastructure in scaling green finance and accelerating the global energy transition. Ultimately, this ensures we remain agile, data-informed and aligned with both national priorities and global energy trends.

How do you assess Kuwait as a destination for FDI?
Kuwait Vision 2035 charts a bold path to transform the country into a regional hub for trade, innovation and investment. From NBK’s perspective, this vision creates a compelling case for FDI, particularly as Kuwait accelerates reforms to attract global capital and expertise in energy, infrastructure and technology-driven sectors.
Furthermore, ongoing initiatives to streamline regulatory procedures, enhance transparency and improve investment incentives, alongside the country’s increasing focus on ESG, digital transformation, logistics and human capital, are laying the groundwork for Kuwait to compete more effectively as a regional FDI destination.
In this context, we aim to consolidate our role as a gateway between Kuwait and international markets. With our strategy fully aligned with Kuwait Vision 2035, we aim to strengthen Kuwait’s global appeal as a destination for FDI by delivering financial innovation, cross-border connectivity and institutional trust. This positions the bank not just as a financier but as a partner in enabling international investors to participate in Kuwait’s transformation journey.

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