ShareKUWAIT: National Bank of Kuwait (NBK) participated in China and the GCC Economic and Trade Cooperation Forum, an event organized by the Chinese Ministry of Commerce and held in Guangzhou on October 22, 2023. The forum was held on the sidelines of the inaugural session of meetings between the Ministers of Trade and Industry from the Gulf Cooperation Council (GCC) countries and the People’s Republic of China.
NBK’s delegation included Zaid Al-Sager, Deputy Head of the International Banking Group at NBK, and Meshari Bin Salamah, Deputy General Manager and Head of International Corporate & Commercial Real Estate, International Banking Group at NBK, Naser Al-Fassam Assistant General Manager of Foreign Corporate, Oil and Trade Finance Group at NBKand Lilian Yu Head of Corporate at NBK-China.
In his speech at the forum, Al-Sager said: “Since our debut in China, the growth of our banking business has been nothing short of remarkable. The expansion into the Chinese market has enabled us to tap into one of the world’s largest and most dynamic economies.” “Over the years, we have witnessed a substantial increase in our client base, the diversity of our services, and the overall scale of our operations”. Al-Sager added.
Al-Sager reiterated NBK’s commitment to providing innovative financial solutions and personalized services, which have resonated with both local and international clients, further fueling the Group’s growth. He also highlighted that NBK’s branch in Shanghai has become a strategic hub, connecting businesses and individuals from China to the Middle East and beyond, facilitating international trade, investment, and wealth management.
“As we continue to adapt to the evolving financial landscape and seize new opportunities, NBK’s business in Shanghai serves as a testament to our dedication to fostering prosperity and financial connectivity between our two nations,” Al-Sager explained. Al-Sager further stressed that going forward, NBK intends to maintain and strengthen its presence in the Chinese market to bridge any financial gaps between the GCC and China.
“Under the thoughtful guidance of the leaders of China and Kuwait, our two nations have deepened our strategic partnership and successfully aligned China’s Belt and Road Initiative (BRI) with Kuwait’s Vision 2035. Our practical collaboration has showcased remarkable resilience and significant potential,” Al-Sager noted. Furthermore, he emphasized the importance of the growing partnership between Kuwait and China, which transcends mere diplomatic relations and stands as a testament to the transformative power of international collaboration.
“As financial leaders, we recognize that fostering and strengthening these connections is not just a matter of strategic advantage but a shared commitment to facilitating economic growth, stability, and prosperity on a global scale. In this dynamic environment, where East meets West, we, as financial institutions, stand at the forefront, ready to harness the opportunities and navigate the challenges presented by the Kuwait-China relationship,” Al-Sager stated.
Al-Sager further clarified that the Chinese market, driven by its vast and continuously expanding population, presents a wealth of opportunities for financial institutions, explaining that the country’s economic growth, expanding business with the MENA region, and increasing demand for diverse financial services makes it an attractive prospect for business expansion. “Our practical collaboration has showcased remarkable resilience and significant potential highlighted that bilateral trade between China and Kuwait has reached a historical high last year, amounting to US$31.48 billion. Total trade has jumped by 42.3% year-on-year,” Al-Sager concluded.
Meanwhile, Meshari Bin Salamah said: “NBK has always maintained strong and expansive relations with our counterparts in China, both within the country, throughout the region, and on a global scale. Our commitment to fostering these relationships is evident through the substantial financial resources we allocate to accommodate current and future business ventures, with a particular focus on treasury operations, trade facilitation, and lending services”.
Bin Salamah stated that in recent years, there has been a notable increase in the participation of Chinese corporations in the GCC region. This has resulted in a growing demand for Counter-Guarantee services from Chinese banks, supporting their corporate clients involved in major projects across the GCC, affirming that NBK warmly embraces this heightened involvement and is ready to cater to all financial requirements.
He further explained that NBK is actively engaged in treasury operations with various Chinese banks, particularly within the GCC, stressing that NBK has consistently provided support to regional offices through Money Market placements, and is fully prepared to continue this valuable assistance, with substantial financial capacities in place for these endeavors. “Our strategic initiatives and prudent financial management have driven substantial growth. On the assets front, our assets grow by 106% year-on-year in 2022, reaching US$518 million, compared to $251 million in 2021,” Bin Salamah noted.
He further highlighted that NBK has seen a significant increase in loan portfolios, reflecting the Bank’s commitment to supporting businesses’ financial needs, with aggregate loans almost doubling, as it stood at $471 million by the end of 2022, recording a whopping 95% increase year-on-year. Bin Salamah also mentioned that Letters of Credits and Lettes of Guarantees inched up by 15% in 2022, reflecting the growth of international trade and business transactions, as well as the growing market share NBK-China has established in fulling the need for financial assurances in various commercial dealings.
“This growth not only signifies NBK’s expanding footprint but also our ability to adapt to a dynamic financial landscape, seize opportunities, and effectively serve the evolving needs of our customers and gaining their trust. As we continue along this trajectory, we remain focused on maintaining a solid financial position and providing exceptional financial services to our ever-growing clientele,” Bin Salamahconfirmed.
On the bilateral and syndicated loans front, NBK collaborates closely with several leading Chinese leasing companies, as explained by Bin Salamah, “NBK extends liquidity under favorable terms, encompassing various tenors to meet the diverse needs of various businesses. We eagerly anticipate furthering our support for this crucial sector of the Chinese economy”. “We are currently engaged in constructive discussions with Chinese banks concerning funding requirements, both for our branch in China and our extensive network of subsidiaries and branches worldwide,” Bin Salamah confirmed.
Bin Salamah pointed out that sustainable finance has become a key focus area in global markets, significantly contributing to the allocation of capital for the advancement of environmentally-friendly initiatives and the reduction of emissions in diverse economies. NBK has taken a leading position by wholeheartedly embracing this sustainability movement. Through our branches, we have rolled out a diverse array of services and products to facilitate the transition to eco-friendly practices, encompassing international loans like “green mortgages,” consumer loans tailored for electric cars purchase, financing solutions geared towards sustainability, and innovative green home loans.
“It has always been our goal to keep NBK at the forefront of innovation and being future-proof. Notably, China stands at the vanguard of financial technology (FinTech) and innovation. Establishing our branch in China offers NBK valuable insights into state-of-the-art FinTech advancements and create possibilities for collaborative ventures with Chinese technology companies,” Bin Salamah concluded.
It is worth noting that total trade has jumped by 42.3% year-on-year. China exported goods amounting to $4.97 billion to Kuwait and imported goods amounting to $26.51 billion from Kuwait, which stood as China’s seventh largest supplier of crude oil. Moreover, recent numbers reveal that China’s direct investment in Kuwait amounted to approximately $410 million, positioning China as Kuwait’s second most substantial source of foreign direct investments.
