Boubyan Bank Launches $2 Billion Sharia-Compliant Certificates of Deposit Program

Boubyan Bank, a leading financial institution in Kuwait, has recently announced the launch of a $2 billion Sharia-compliant certificates of deposit (CDs) program. This innovative program aims to diversify liquidity, enhance financial stability, and attract international investments, making it the first of its kind in a Kuwaiti bank. The program offers short-term certificates of deposit, ranging from one month to one year, catering to the growing demand from international investors. This move supports Boubyan Bank's strategy of diversifying risks, enhancing its ability to face market fluctuations, and solidifying its position in the global financial market.

Key Takeaways:

• The program is the first of its kind in a Kuwaiti bank, marking a pioneering step in Sharia-compliant certificates of deposit.
• Boubyan Bank's CEO of Corporate Banking and Treasury, Abdulsalam Al-Saleh, emphasized the program's flexibility and high efficiency in short-term investments, attracting a new category of investors.
• The program reflects Boubyan Bank's commitment to regulatory standards and Basel (Basel III) requirements.
• Head of Treasury Group, Adel Al-Mutairi, stated that the launch embodies the bank's commitment to providing innovative Sharia-compliant financial solutions and strengthening its presence in regional and international markets.
• The program was created in collaboration with Standard Chartered Bank (SCB) as the sole program organizer.

Statistics:

• $2 billion: The total value of the Sharia-compliant certificates of deposit program.
• 12 months: The maximum duration of the certificates of deposit.
• 50%: The proportion of the program's value expected to be invested by international investors.
• 30%: The proportion of the program's value expected to be invested by Kuwaiti investors.

Sources:

• Boubyan Bank Advisory
• Standard Chartered Bank
• Central Bank of Kuwait
• Basel Committee on Banking Supervision