Kuwait Turkish Participation Bank set to operate out of DIFC

Dubai: Kuwait Turkish Participation Bank (Dubai) Limited has received a licence from the Dubai Financial Services Authority (DFSA) to provide a full range of Islamic finance banking services out of the Dubai International Financial Centre (DIFC).

"Islamic finance is one of the sectors that has been most resilient to the global financial crisis and continues to show significant growth potential. From a very early stage, Islamic finance has been one of DIFC's focus sectors and we will continue to expand this sector within DIFC by bringing leading companies like Kuwait Turkish Participation Bank," said Ahmad Humaid Al Tayer, Governor of the Dubai International Financial Centre.

"Over the next few years, by working closely with companies in DIFC, we seek to foster the development of this sector here by actively encouraging product development and innovation."

Abdullah Mohammad Al Awar, CEO of the DIFC Authority said: "We are pleased to welcome Kuwait Turkish Participation Bank to the DIFC community. Over the years, DIFC has developed a critical mass of Islamic institutions, which in turn has created a large pool of Islamic finance expertise.

"Kuwait Turkish Participation Bank's presence will contribute to enriching and deepening this pool of expertise. We look forward to supporting Kuwait Turkish Participation Bank in its efforts to grow its business in the UAE and the GCC [Gulf Cooperation Council] region."

Kuwait Turkish Participation Bank (Dubai) is the first Islamic finance institution to receive a licence that allows it to provide a comprehensive range of banking services from the financial district.

Ownership

The new company is 100 per cent owned by Istanbul-based Kuwait Turkish Participation Bank, one of Turkey's first interest-free banks.

The company's office in DIFC will be managed by Rahim Al Bayrak, senior executive officer.

Kuwait Turkish Participation Bank CEO Ufuk Uyan said : "We are delighted to be part of DIFC. This will give us the opportunity to realise our aim to serving as a bridge for developing business ties between Turkey and UAE, given our capabilities both in Turkey and in the Gulf region".

Uyan stated that Kuwait Turkish Participation Bank (Dubai) Limited will offer customers a full range of Islamic banking compliant products and services. He also added that the bank will be the first subsidiary of the Turkey-based bank to be licensed in DIFC and the UAE.

The majority shareholder of Kuwait Turkish Participation Bank is Kuwait Finance House, one of the biggest and leading Islamic banks in the world. Other shareholders include General Directorate of Foundations (Turkey), Public Institution for Social Security (Kuwait) and Islamic Development Bank.

The bank provides contemporary interest-free banking products and services with 130 branches in Turkey.

The bank also has a branch in Bahrain and a representative office in Kazakhstan.

Kuwait Turkish was also recently awarded a financial services branch licence in Germany.