Gulf Bank has secured initial approval from the Central Bank of Kuwait (CBK) to convert into an Islamic banking institution, which is valid for one year and contingent on the completion of technical, legal and operational requirements, Zawya reported on Tuesday. The approval followed a feasibility study by an international consultant, and Gulf Bank must now submit reports on its transition plan, obtain Shariah advisor approval, and align its products with Islamic standards by December 2025.
Concurrently, Gulf Bank, whose largest shareholder, Warba Bank, holds a 32.75% stake, is pursuing a merger with Warba. Both banks have engaged consultants and received regulatory approval to conduct due diligence and feasibility studies. A merger would create Kuwait’s third-largest banking group, behind Kuwait Finance House and National Bank of Kuwait, with combined assets approaching KWD 13 billion ($42.5 billion).
