Best Islamic bank 2025: Kuwait Finance House
Kuwait Finance House (KFH) stands at the forefront of Islamic banking in Kuwait and the Middle East, with a year of transformation and expansion that reaffirmed its leadership across markets and business lines.
In 2024, KFH achieved significant milestones in digital innovation, Shariah-compliant financing, regional integration and sustainability, making it a deserving winner of the award for Kuwait’s best Islamic bank.
The landmark event of the year was KFH’s successful completion of its merger with Ahli United Bank of Kuwait, in its home market, following its prior acquisition of Bahrain-headquartered Ahli United Bank (AUB).
This was the largest-ever banking merger in Kuwait, turning KFH into a formidable global Islamic financial group with 615 branches across 12 countries, including Saudi Arabia, Turkey, Egypt, the UK and Germany. KFH completed the Shariah conversion of the newly acquired AUB entities in Bahrain, the UK and Egypt in record time, extending its Islamic banking model across a wider international footprint.
KFH continues to dominate across retail, corporate and investment banking in Kuwait and plays a significant role across the region. Its market capitalisation is the highest in Kuwait and ranks among the largest in the Middle East. Its leadership in sukuk was further solidified through KFH Capital’s role in arranging $17.8 billion worth of issuances across sovereign and corporate clients, including deals for Al Rajhi Bank, Dubai Islamic Bank, First Abu Dhabi Bank and Aramco.
On the digital front, KFH introduced Kuwait’s first fully Shariah-compliant digital bank, Tam, which combines gamified user experiences with real-time onboarding, a 100% cashback rewards system and innovative features such as card personalisation, virtual issuance and social media-style interfaces.
Launched in late 2023, the success of Tam in its first year of operations has drawn regional and international acclaim, underlining KFH’s ability to compete on the digital front while maintaining full compliance with Islamic principles.
KFH also deepened its commitment to sustainable finance. It became the first Islamic bank in Kuwait to offer a green financing product for energy-efficient private housing and launched broader personal finance initiatives that promote resource conservation and renewable energy use. It was also the first bank in the country to release a carbon footprint report and in 2024 it earned an MSCI ESG “A” rating – the highest received by any Kuwaiti entity – alongside inclusion in the FTSE4Good Index.
The bank’s service excellence and inclusive growth strategies have also been in evidence. It launched accessible banking for customers with special needs, invested in employee development through scholarship programmes, and engaged in high-impact CSR initiatives including KD1 million ($3.25 million) of support for the Kuwait Food Bank and the reconstruction of heritage buildings in Al Mubarakiya.
With a unique ability to integrate scale, innovation and authenticity in Islamic banking, KFH has not only retained its market leadership but redefined what it means to be a global Islamic bank.
Best Islamic project finance house 2025: Boubyan Bank
Boubyan Bank has distinguished itself as a formidable leader in the Islamic project finance sector, particularly within Kuwait but with impressive regional implications as well. Its expertise in structuring complex, Shariah-compliant deals has earned it the title of best Islamic project finance house.
In 2024 alone, Boubyan Bank’s deal sheet demonstrates the scale and scope of its influence. High-profile transactions include a $7.75 billion arrangement for the Saudi United Investment Co. in Project Astral and a $1.2 billion project with Al Dur Power and Water Company in Bahrain, both as the lead arranger. Its role as lead arranger in an $800 million financing for the Ahli United Bank shows the capacity to handle big-ticket deals that stimulate economic growth and infrastructure development within the Islamic financing framework.
Boubyan Bank’s active involvement across 10 pivotal deals throughout the region, including involvement with major entities such as Eskan Bank, Bahrain Islamic Bank, and Bank Muscat S.A.O.G Meethaq Islamic Banking, showcases its widespread industry recognition and trust. Additionally, Boubyan Bank’s strategic financing interventions help to propel significant regional infrastructure and development projects, underpinned by a deep adherence to Islamic financing principles.
One of the bank’s key strengths lies in its adept handling of various Islamic product types, including commodity murabaha and ijara structures. Its agility in employing sophisticated Shariah-compliant financing structures not only aligns with religious and ethical investment principles but also ensures the financial viability and sustainability of projects it underwrites.
As it continues to demonstrate leadership and excellence in Islamic project finance, Boubyan Bank’s prominent role within the industry solidifies its reputation as an institution that not only supports large-scale developmental projects but also meticulously upholds the principles of Islamic finance.
Best Islamic digital bank 2025: Boubyan Bank
Boubyan Bank, awarded as the best Islamic digital bank in Kuwait, exemplifies cutting-edge innovation and exceptional customer-focused service, harnessing technology to redefine Islamic banking.
At the core of Boubyan Bank’s digital transformation is the automation of the corporate risk assessment process. The introduction of AI-powered tools and database matching has streamlined operations, slashing the time required to process and verify corporate names from weeks to hours. This has not only improved risk tracking and data accuracy for corporate entities but also bolstered decision-making capabilities with real-time insights, maintaining a rigorous compliance and risk mitigation framework.
Further integrations of technology include Musaed, Boubyan Bank’s AI digital assistant. Musaed enhances customer engagement through its availability on popular platforms like WhatsApp.
Additionally, innovations such as the QR code system for its sales team and the introduction of the job interview AI service at Boubyan’s job fair, which successfully facilitated CV submissions, showcase the bank’s commitment to leveraging technology to improve operational efficiency.
Boubyan Bank launched Kuwait’s first SME-dedicated banking app, equipped with features such as ePay and eRent, which simplify transactions and account management. The Prime app, targeted at those aged 15-25, offers features such as spending rewards and an appealing referral scheme, fostering financial literacy and growth among the young population.
The retail segment is not left behind, with the bank offering one of Kuwait’s highest-rated banking apps. It stands out for introducing pioneering services such as digital onboarding, digital murabaha, and innovative solutions such as Murabaha One Visit and salary advances.
Through its commitment to innovation and customer service, the bank secures its position as a leader in the digital transformation of Islamic finance.
