KFH planning entry into the Saudi market

KUWAIT CITY: Kuwait Finance House, the Gulf's second-largest Islamic lender by market value, said yesterday it planned to enter Saudi Arabia as part of an expansion abroad.

"KFH aims to enter the Saudi market... as all countries of the GCC are a natural extension to the Kuwaiti market," general manager Mohammad Al Omar said.

Kuwait's biggest bank by market value has applied for a license to set up a Saudi bank with a capital of 500 million Saudi riyals ($133.5m), Al Omar said.

It has also established a real estate company in the kingdom, a newspaper report said. Al Omar earlier said the bank's expansion focus will be on the six Gulf countries.

KFH said on Monday it plans to expand in Asia, the Middle East and North Africa.

The bank posted its second-biggest profit ever in the first quarter, up 43 per cent to 73.4m dinars ($276.7m) from the same period a last year.