Though operating as a standalone entity within the Kuwait International Bank group, KIB Invest is focused on delivering a host of Shariah compliant investment solutions to the Islamic banking parent and other group members, KIB Invest CEO Jamal Al-Barrak explained to IFN Investor.
“The group has private banking clients and a number of high net-worth individuals within the client base. Currently, these clients are using some services offered by other institutions. KIB Invest is meant to provide an alternative that is seamless and integrated to existing group services.”
Outlining how the group already has an insurance company, an accelerator incubator program, distribution channels for wholesale banking plus treasury collateral and custody management, Jamal said KIB Invest acts as the “kitchen” to serve up solutions needed for overall group gains.
“We’re touching every element within our financial group. For instance, insurance companies have now been asked to invest the excess cash into very secure investments. There is also no harm in putting some of our capital to show we support the start-up incubator and accelerator KIB Mubader Center.”
The main reason why KIB Invest can provide such diverse options is due to it being licensed under more liberal capital market regulations, rather than operating as a banking entity tied to very strict compliance rules, noted Jamal.
Having the ability to respond faster to bank customer needs, especially for investment opportunities, is the main reason why many financial groups aspire to have investment banking units, Jamal added. “This is the KIB Invest strategy to focus within the group, at least for the next 18 to 24 months.”
Already handling about KWD45 million (US$146.17 million) worth of assets presently, KIB Invest is also serving a small number of external clients that are associated with the parent bank. “The customer base we can tap into is quite extensive and that will keep us busy for now.”
Jamal said the operational focus of KIB Invest will remain within Kuwait for the moment, rather than quickly expanding across the GCC region, preferring to get the key operational aspects on solid footing first.
“We will still handle international clients and opportunities, but in a strategic way. We will think local, but act global.”
