Boubyan Bank of Kuwait aims to become one of the leading Islamic banks in its local market and around the world. Boubyan Vice Chairman and Group CEO Adel Al Majed discusses how the bank plans to achieve this goal through new financial products, digital services and strategic partnerships.
Global Finance: What are the bank’s strategic priorities over the next five years?
Adel Al-Majed: The bank aspires to be a leading Islamic bank for high-net-worth individuals and companies, with a focus on innovation and digital excellence. Within the framework of the Boubyan 2028 plan, we will continue to expand the scope of our core businesses and products in addition to exploring strategic partnerships with the aim of achieving significant shareholder value and growth.
GF: Which of the bank’s business segments are showing the most growth?
I be: The PRIME (young people) and PRIME (upper-class affluent) sectors have shown the most growth in the past few years. At PRIME, Boubyan pioneered new products and services and now has a significant market share among Kuwaiti youth. The premium segment is a relatively new subset of the affluent segment that provides clients with dedicated relationship managers, access to private centers within each branch, and global concierge services.
GF: Which of the bank’s retail business segments is the most active?
I be: The mass sector is the largest group and stimulates the use of all banking products. PRIME is the most proactive when it comes to social media and discount offers with merchant partners. Platinum (HNWI) customers are heavy users of credit card services, with above-average spending per transaction, while the Premium segment (HNWIs) generally leads in deposits and current and savings account (CASA) balances.
GF: What are some of the key developments in Islamic finance?
I be: One of the key developments is the global growth of Sukuks (Islamic bonds), driven by demand for Sharia-compliant investment options, especially in the Middle East, Southeast Asia and Africa. Islamic banks are increasingly focusing on financial inclusion, especially in underbanked markets in Southeast Asia and Africa. Our Sharia-compliant microfinance solutions aim to provide ethical financing to individuals and small businesses without resorting to interest-based loans. These products are often based on asset-based structures such as Ijara (leasing) or Murabaha (cost-plus financing). At the domestic level, many countries have improved their legal and regulatory frameworks to support Islamic finance. The United Kingdom, for example, has introduced regulations to support Islamic banking, while countries such as Saudi Arabia and Malaysia continue to strengthen Islamic finance laws.
GF: What steps has the bank taken to foster fintech growth?
I be: Boubyan has taken a very structured and active approach to the fintech space covering community engagement, including hackathons, accelerators and other types of challenges for internal and external audiences. Our financial services range from traditional offerings, such as escrow accounts, bulk transfers, and payment infrastructure, to newer offerings, such as ATM-as-a-Service, BIN sponsorship, wallet acceptance, and embedded banking. We are also active in fintech mentorship, including providing advice and support on strategy, implementation and operation, in particular nurturing 80% of fintech applicants into the CBK regulatory sandbox. Boubyan is also strategically important for fintech venture capital, from very early stage to late stage investments that align with our core business and long-term strategic objectives.
