Kuwait bank KFH launches Germany’s first Islamic bank

The Kuwaiti bank Kuwait Finance House (KFH) are preparing to launch a subsidiary providing full Sharia-compliant banking services in Germany for the first time, effective this coming July. The bank has gained a fully-integrated banking licence allowing it to accept deposits and offer full credit financing facilities in accordance with Islamic rules and regulations, it said in a statement.

KFH is teaming up with subsidiary bank Kuwait Turk, which has operated a small branch office in the German city of Mannheim for several years offering a range of sharia-compliant services to customers. The new German bank will be based in Frankfurt, will operate under the name “KT Bank AG” and will be a fully-owned subsidiary of Kuwait Turk. With about 4m Muslims living in Germany, the bank said in its statement that it planned to launch its European offensive from its German base, “by serving its largest tier of customers including retail and wholesale customers and expanding thereafter throughout Europe new branches, companies and banks.” Services will include Sukuk deals, funds, real estate and investment portfolios.