
Kuwaiti lenders Warba, Gulf Bank explore merger to boost competitiveness
The two lenders announced the move in separate disclosures to Boursa Kuwait on May 26, prompting a temporary one-hour suspension of trading in both banks' shares in line with capital markets regulations.
A tie-up between the two would mark one of the most significant consolidations in Kuwait's banking industry in recent years, as lenders in the region increasingly pursue mergers to achieve scale, drive efficiency, and adapt to evolving regulatory and economic conditions.
In a statement to Boursa Kuwait, Warba Bank said: 'The potential merger provides a promising strategic opportunity for growth and expansion for the two banks, leveraging their synergies and capabilities, as well as enhancing competitiveness in the local Islamic banking sector.'
It added that the move comes in light of current internal and external challenges posed by local and global economic conditions, with the aim of maximizing value for shareholders and investors.
As part of the merger process, both institutions will undertake a preliminary feasibility study and begin due diligence to assess the integration. The aim is to form a single banking entity compliant with Islamic Shariah principles.
The banks noted that the Central Bank of Kuwait had been informed of the discussions on May 25.
In its own bourse filing, Gulf Bank stated that its chairman received a letter from Warba Bank — one of its major shareholders — requesting the bank to consider the feasibility of a potential merger between the two institutions to create a unified entity.
'Hence, the proposal was discussed taking into consideration the bank's efforts to explore new approaches and prospects to achieve growth and prosperity, which includes the analysis of all opportunities and means of collaboration that would lead to the realization of our goals in terms of sustainable growth and added value for the bank, customers, and investors alike,' the Gulf Bank stated in the statement.
The merger talks come amid a challenging global economic landscape marked by rising trade tensions and market volatility. In April, S&P Global Ratings said that banks across the Gulf Cooperation Council remain well-positioned to weather external shocks.
In its report titled 'GCC banks can cope with the fallout from intensifying trade tensions,' the agency pointed to the region's robust financial buffers as protection against evolving global risks.
'GCC banks appear to be in a good position to withstand these threats,' the report stated at that time, citing 'robust liquidity levels, solid profitability, and healthy capitalization' as the sector's core strengths.
While the direct impact of trade tensions on GCC economies is expected to remain limited due to minimal export exposure to the US, S&P warned of potential indirect effects. A prolonged downturn in oil prices, for instance, could dampen fiscal spending and sentiment.
The ratings agency has revised its average Brent oil price assumption for 2025 to $65 per barrel.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Arab News
3 hours ago
- Arab News
Closing Bell: Saudi main index rises to close at 10,956
RIYADH: Saudi Arabia's Tadawul All Share Index rose on Sunday, gaining 10.42 points, or 0.10 percent, to close at 10,956.22. Total trading turnover of the benchmark index reached SR3.46 billion ($924 million), with 145 stocks advancing and 97 declining. Similarly, the Kingdom's parallel market Nomu climbed 92.76 points, or 0.34 percent, to close at 26,991.01, as 47 stocks advanced while 39 retreated. The MSCI Tadawul Index also posted gains, adding 1.89 points, or 0.13 percent, to finish at 1,409.96. The top performer of the day was Tourism Enterprise Co., with its share price surging 9.91 percent to close at SR1.22. Other notable gainers included BAAN Holding Group Co., which rose 9.63 percent to SR2.39, and Raydan Food Co., which advanced 6.67 percent to SR14.24. On the downside, Buruj Cooperative Insurance Co. recorded the biggest loss, falling 4.11 percent to SR18.20. Fawaz Abdulaziz Alhokair Co. dropped 3.03 percent to SR29.46, while Saudia Dairy and Foodstuff Co. declined 2.84 percent to SR266.40. In corporate disclosures, the National Agricultural Development Co. reported its consolidated financial results for the six-month period ending June 30. According to a Tadawul statement, the company posted a net profit of SR218.6 million, up 2.5 percent year on year. The increase was attributed to higher revenue and treasury income, along with changes in cost of sales, selling and marketing expenses, impairment losses, financing costs, and other income and expenses. NADEC shares ended the session at SR21.02, down 0.81 percent. Meanwhile, Yanbu National Petrochemical Co. announced a net profit of SR58.2 million for the first half of the year, marking an 82 percent year-on-year decline. The drop was primarily due to lower average selling prices across all products and higher input costs, despite increased sales volumes and stable operational performance. Yanbu shares rose 2.88 percent, closing at SR29.42. Sabic Agri-Nutrients Co. also released its interim financial results, reporting a net profit of SR2.04 billion for the first half of the year, reflecting a 32.2 percent increase compared to the same period last year. The growth was driven by a 22 percent rise in sales, along with an increase in share of results from associates and joint ventures. However, the rise was partially offset by higher costs of goods sold, mainly due to increased feedstock prices. SABIC Agri-Nutrients Co. shares closed at SR117, up 2.15 percent.


Arab News
3 hours ago
- Arab News
Saudi Arabia sees record 144% rise in new mining exploration licenses in H1
RIYADH: Saudi Arabia issued a record number of new mining exploration licenses in the first half of 2025, marking a 144 percent year-on-year rise, official data showed. A total of 22 licenses were issued during the period, up from just nine in the same period last year, reflecting growing investor interest and the government's push to build a more competitive and attractive mining sector, according to a statement from the Ministry of Industry and Mineral Resources. The rise aligns with the rapid growth of the Kingdom's mining industry, a central pillar in its Vision 2030 diversification strategy. Saudi Arabia aims to increase the sector's contribution to gross domestic product from $17 billion to $75 billion by 2035. The effort is backed by plans to accelerate exploration and development of the Kingdom's estimated mineral wealth, valued at over SR9.4 trillion ($2.5 trillion). The ministry release stated: 'The official spokesman for the Ministry of Industry and Mineral Resources, Jarrah bin Mohammed Al-Jarrah, explained that the number of companies investing in the new mining exploitation licenses issued during the first half of this year reached 23 mining companies, including 16 companies obtaining mining licenses for the first time.' It added: 'The total volume of investments in these licenses exceeds SR134 million, and they cover an area of 47 sq. km.' The ministry's spokesperson said the projects covered by these licenses are expected to produce approximately 7.86 million tonnes annually of various mineral ores, including salt, clay, silica sand, low-grade iron ore, feldspar, and gypsum. Al-Jarrah also noted that the total number of mining and small-mine exploitation licenses currently active in the Kingdom stands at 239. These include 32 Category A licenses for strategic minerals such as gold, copper, phosphate, and bauxite, and 207 Category B licenses for industrial minerals including silica sand, gypsum, limestone, salt, and clay. Earlier in July, Vice Minister of Industry and Mineral Resources Khalid Al-Mudaifer told Asharq Business that the Kingdom's mining reforms have helped attract $32 billion in investments across projects involving iron, phosphate, aluminum, and copper. He added that this accounts for nearly one-third of Saudi Arabia's target to attract $100 billion in mining investments by 2030. The vice minister added at the time that mineral exploration spending in the Kingdom has quadrupled since 2018, reaching $100 per sq. km, with an annual growth rate of 32 percent, significantly above the global average of 6 to 8 percent. Al-Mudaifer also said mineral exploration spending in the Kingdom has quadrupled since 2018, now reaching $100 per sq. km — an annual growth rate of 32 percent, significantly outpacing the global average of 6 to 8 percent.


Argaam
4 hours ago
- Argaam
Diversification with Purpose: Why Women Investors Are Rethinking Their Wealth Strategies
As women continue to expand their presence in the workforce, launch businesses, and take the lead in financial decision-making, the conversation has shifted. The focus is no longer on whether women should invest, but on how they can do so with clarity and long-term purpose. One of the most effective, yet often underused, strategies in this journey is diversification, especially for women navigating longer life expectancy, career breaks, and evolving personal goals. A New Generation of Women Investors More women across the GCC are stepping into financial independence. In Saudi Arabia, nearly 40% of small and medium enterprises in Riyadh are run by women,[1] and countrywide women now lead about 45% of startups.[2] Female labor force participation has risen from around 17% at the start of Vision 2030 to over 35% in Q3 2024, eclipsing earlier targets.[3] This shift goes beyond statistics; it reflects women earning, saving, and making investment decisions at a growing pace. But with greater financial independence comes greater responsibility. Building and protecting wealth across decades, especially in a world of economic shifts and market volatility, requires a thoughtful, well-diversified approach. Why Diversification Matters More for Women Diversification is more than spreading money across different assets. It's about creating a portfolio that can weather different market cycles and life stages, which is something especially important for women, who often face: - Longer life expectancy: On average, women live five years longer than men, according to the World Health Organization.[4] This increased lifespan requires careful financial planning to ensure a comfortable and secure retirement. - Career breaks: According to LinkedIn's 2024 data, women are 43% more likely than men to have taken a career break.[5] Many of these women take breaks for caregiving responsibilities, whether for children or elderly family members, making risk management through diversification even more critical. - Gender pay gap: Despite progress, the gender pay gap persists, leading to significant disparities in earnings and savings over a lifetime. According to the World Economic Forum, it will take 131 years to close the global gender pay gap at the current rate of progress.[6] This gap can impact women's ability to accumulate wealth and secure their financial future. - Multiple life goals: From funding children's education to launching businesses or planning a philanthropic legacy, women juggle varied objectives. A diversified strategy provides flexibility to support these goals over time. Understanding Diversification Beyond the 60/40 Model For decades, traditional portfolios followed the 60/40 model, allocating 60% to public equities and 40% to bonds, as a way to balance risk and return. While this approach provided a foundation for many investors, today's market realities like persistent volatility, inflation pressures, and lower bond yields, have made it less effective on its own. Diversification today means going beyond this conventional mix. It involves building a portfolio that includes a variety of asset classes, such as private equity, private credit, real estate and infrastructure, each serving a distinct role. By allocating across these alternative assets, investors can reduce reliance on any single market or cycle. This helps create a portfolio that is better positioned to weather uncertainty while supporting long-term goals. The Pitfalls of Concentrated Investing Relying predominantly on local equities or real estate may feel secure, but it leaves portfolios vulnerable to market downturns. Global diversification, including private markets and international assets, can provide more stable returns and better risk management over time. Diversification Done Right: The Family Office Approach At The Family Office, our diversification strategy is hands-on and personalized. We help investors, including women building wealth in the GCC, construct international portfolios that go beyond traditional public markets. Our strategies include carefully selected opportunities in: - Private Equity: For long-term capital appreciation through exposure to high-quality, privately held companies. - Private Credit: For steady income with lower correlation to public market fluctuations. - Real estate: For tangible value and a potential hedge against inflation, across global markets. By working closely with each client to define their risk appetite, time horizon, and life goals, we create investment plans that evolve with their needs, not just for the next market cycle, but for generations. Take the First Step Diversification is not about playing it safe. It's about making intentional, data-backed decisions to protect and grow wealth across all chapters of life. Whether you're a professional planning early retirement, a business owner reinvesting profits, or a mother balancing multiple goals, the right strategy starts with clarity and the confidence to make your money work for you. Reach out to The Family Office to discover how a diversified strategy aligns with your aspirations. About The Family Office The Family Office Company B.S.C. (c) in Bahrain and Dubai, its Riyadh-based wealth manager, The Family Office International Investment Company, and its investment advisory firm in Kuwait, The Family Office Investment Advisory Company (Kuwait) K.S.C. (c) are regulated by the Central Bank of Bahrain, the Dubai Financial Services Authority, the Capital Market Authority of Saudi Arabia, and the Capital Markets Authority of Kuwait. Serving hundreds of families and individuals, the firm helps clients achieve their wealth goals through custom-made investment strategies that cater to their unique needs. Disclaimer Certain services and products offered by The Family Office may not be available to investors in certain jurisdictions where they reside. Investors are responsible for ensuring compliance with local laws and regulations before accessing our products or services. The Family Office Company B.S.C. (c) is a Category 1 Investment Firm regulated by the Central Bank of Bahrain. C.R. No. 53871 dated 21/6/2004. Paid Up Capital: US$10,000,000. The Family Office Company B.S.C. (c) only offers products and services to 'accredited investors' as defined by the Central Bank of Bahrain. The Family Office International Investment is a joint stock closed company owned by one person. Paid-up capital SR20 million. CR No. 101060698, Unified National Number 7007701696. Licensed by the Capital Market Authority (no. 17-182-30) to carry out arranging, advisory and managing investments and operating funds, with respect to securities. The Family Office Company B.S.C. (c) (DIFC Branch) is a recognized company in the Dubai International Financial Centre (DIFC) under registration number 6567 and regulated by the Dubai Financial Services Authority (DFSA) as a Category 4 licensee to carry out Arranging and Advising Services. The Family Office Company B.S.C. (c) (DIFC Branch) is not permitted to deal with Retail Clients (as defined in DFSA's Conduct of Business Module). The Family Office Investment Advisory Company (Kuwait) K.S.C. (c), incorporated in 2024, is regulated by the Capital Markets Authority, State of Kuwait and authorized to conduct Investment Advisory and Subscription Agent (license no. AP/2024/0009). Paid-up capital KWD 1,000,000, CR no. 511443.