Green finance and digitalisation drive results at KFH

Kuwait

Khaled Alshamlan, CEO of KFH Group, talks to The Energy Year about supporting Kuwait’s energy companies in the pursuit of energy transition goals and how the merger with Ahli United Bank has increased KFH’s domestic and cross-border financing capabilities. KFH is an Islamic bank that provides sharia-compliant financial services to corporate and retail customers.

KFH reported net profit of KWD 492.7 million [USD 1.6 billion] up to the end of Q3 2025. What were the factors that drove these results?
Among the most significant drivers was the successful issuance of a five-year USD 1-billion sukuk (Islamic bond), which strengthened our funding base and provided greater flexibility to support operations and expansion. Equally important was the merger and integration with Ahli United Bank (AUB), a transformative step that expanded our footprint, positioning us as a truly regional banking leader.
We also advanced the conversion of our operations in the UK, Egypt, and Bahrain to fully sharia-compliant banking, aligning with our vision to grow Islamic finance on a global scale. At the same time, we have continued to prioritise innovation by delivering advanced, customer-centric solutions to enhance service quality.

To what extent has the merger with AUB increased your regional presence and capabilities to support energy-industry clients across Kuwait and the GCC?
In merging with AUB, KFH has significantly broadened its regional reach and has come to operate across 10 countries. The bank now manages more than 600 branches in Kuwait and internationally.
This consolidation has also reinforced the bank’s capital base, enabling it to underwrite and structure larger, cross-border transactions, including in energy, infrastructure and other industries. Amid accelerating energy transition plans, KFH has the ability and interest to support clients and projects in energy sectors across Kuwait and the GCC to meet sustainability and clean energy targets.

How does KFH incorporate ESG considerations in its sharia financing, particularly in capital-intensive and volatile sectors such as oil and gas?
At KFH, we view the growing focus on ESG not as a regulatory requirement alone, but as a natural extension of ethical and responsible values. Stewardship of resources and social responsibility, for example, are deeply rooted in sharia and closely aligned with ESG best practices.
For sectors such as oil and gas, we apply a risk-aware approach in accordance with the Central Bank of Kuwait’s guidance and are looking to incorporate environmental and social factors to ensure our sharia financing supports development with a lower impact on communities and ecosystems. This approach is aligned with global best practices and our commitment to Kuwait Vision 2035.
In parallel, we are also seeking to expand our green finance offerings to enable clients in many sectors to transition toward more sustainable practices.

How do you assess the capabilities and progress of Kuwait’s financial sector in innovation and financial inclusion?
Kuwait’s financial sector is evolving rapidly. There are significant opportunities and clear challenges, particularly within the fintech sector. On the one hand, we are seeing accelerated adoption of digital services driven by a younger, tech-savvy population that increasingly demands convenience, speed and innovative financial solutions. This creates a range of opportunities for growth in areas such as digital payments, mobile banking and fintech collaborations.
However, the market faces several challenges, notably regulatory frameworks that are still adapting to technological advances, cybersecurity concerns and the growing need for robust digital infrastructure.
At KFH, we proactively address these opportunities and challenges by positioning ourselves at the forefront of digital transformation. We have invested in digital infrastructure, collaborated strategically with fintech startups and launched initiatives such as our Innovation Competition and digital innovation labs to drive cutting-edge financial products and services.
We are optimistic about the draft regulatory framework for open banking recently issued by the central bank, which we expect will provide further momentum in this direction.
Our goal remains clear: to promote financial inclusion by making advanced, user-friendly digital financial solutions accessible to everyone in Kuwait, thereby fostering sustainable growth and contributing meaningfully to the country’s vision for a digitally empowered economy.

What role do your partnerships with major energy companies such as KPC play in advancing Kuwait’s energy diversification and net-zero goals, and how might these evolve?
KPC’s energy transition strategy, which extends through 2050, is a roadmap to enable Kuwait to achieve net-zero emissions by 2060. Through partnerships, we can enable KPC and Kuwait’s major energy companies to leverage their existing infrastructure and reinforce their capabilities to invest in large-scale clean energy projects. This includes incorporating emissions-reduction technologies in existing hydrocarbon activities and facilitating pivots towards clean energy and carbon management to achieve net-zero goals.
Kuwait’s environmental targets require strategic investments in LNG, CCUS, renewables, green hydrogen and second-generation biofuels, and the financial sector will play a key role in making them materialise.

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