Kuwait Times, Wed, Oct 30, 2024 | Rabi al-Thani 27, 1446
NBK signs four strategic agreements valued at $1.6 billion at FII 8th edition
Kuwait:
National Bank of Kuwait (NBK) is proud to announce
the signing of several landmark agreements on the sidelines of the prestigious
8th Edition of the Future Investment Initiative (FII), with a total value of SAR
6.2 billion (approximately $1.6 billion). These agreements underscore NBK’s
commitment to playing a pivotal role in contributing to Saudi Arabia’s Vision
2030, as the bank continues to expand its presence across the Kingdom. By
partnering with leading industry players, NBK strengthens its reputation as a
trusted financial partner dedicated to supporting the Kingdom’s ambitious
economic transformation and infrastructure development.
The signing ceremony was attended by Shaikha Al-Bahar, Deputy Group CEO of
National Bank of Kuwait, Zaid Isam Al-Sager, Deputy CEO - International Banking
Group, Meshari Hamad Bin Salamah, Deputy General Manager, Head of International
Corporate & Commercial Real Estate, International Banking Group at NBK, Anas
Al-Ubaid, General Manager of NBK-KSA, and Qais Al-Ateeqi, Unit Head - MENA
Corporate Banking at NBK.
These strategic partnerships, which span various sectors ranging across
financial leasing, infrastructure development, and energy projects, highlight
NBK’s proactive approach in driving sustainable growth and fostering key
collaborations. With a deep understanding of Saudi Arabia’s evolving economic
landscape, NBK tailors its innovative financing solutions to align with the
national agenda. The bank’s long-standing commitment to the region, combined
with these high-impact agreements, not only reinforces NBK’s market position but
also enhances its contribution to the Kingdom’s infrastructure development
goals.
Strategic partnerships
Among the agreements reached, NBK has signed a Framework Agreement with ACWA
Power, valued at SAR 2.6 billion (approximately $690 million). This strategic
partnership is designed to support ACWA Power’s ongoing expansion initiatives
within Saudi Arabia and beyond. ACWA Power is the world’s largest private water
desalination company, the first mover into green hydrogen, and a leader in
energy transition. The company operates in 13 countries across the Middle East,
Africa, Central Asia, and Southeast Asia. NBK is committed to facilitating ACWA
Power’s efforts to address the increasing energy and water resource demands of
the MENA region, reinforcing its dedication to sustainable development and
innovation in these critical sectors.
In addition, NBK has established a Credit Facility Agreement with Al-Gihaz
Contracting Company valued at more than SAR 1.8 billion (approximately $480
million). This agreement aims to bolster Al-Gihaz’s working capital requirements
as it continues to deliver critical infrastructure projects. Specifically, NBK
is financing one of three contracts that Al-Gihaz is utilizing to support it
with executing on the development of the world’s largest energy storage project
in the Kingdom, with a capacity of up to 7.8GWh. With over 45 years of
experience, Al-Gihaz is a specialized contracting company renowned for its
engineering, design, and construction capabilities.
Furthermore, NBK signed a Credit Facility Agreement with the Pan-Kingdom Holding
Group, including Saudi Pan-Kingdom Company (SAPAC) and Pan-Kingdom Real Estate
(PKRE), amounting to over SAR 1 billion (approximately $267 million). This
agreement is intended to support the group’s working capital and investment
needs. With more than 30 years of experience, Pan-Kingdom Holding Group operates
across various sectors, including construction, manufacturing, operation and
maintenance (O&M), transportation, water, real estate development, investment,
among other activities, thereby driving the Kingdom’s economic growth and
advancing its strategic development goals.
Lastly, NBK signed a Credit Facility Agreement with Alyusr Leasing and Financing
Company totaling SAR 750 million (approximately $200 million). This partnership
aims to enhance Alyusr’s financing activities to meet the increasing demand in
the Kingdom. Alyusr is a leading financing and leasing company licensed by the
Saudi Central Bank, specializing in consumer and commercial financing.
Commitment to strategic
development
NBK’s IBG has developed a strong presence in the region, with a team of over 300
seasoned corporate bankers across 11 countries. In Saudi Arabia, NBK has
established a strong corporate banking footprint with over 30 corporate bankers,
collaborating with some of the Kingdom’s largest and most reputable clients
across both the government and private sectors.
As a key player in the financial landscape of the Kingdom, NBK is dedicated to
facilitating economic growth and diversification in line with Vision 2030. The
bank’s agreements with key local and international players underscore its
commitment to supporting major infrastructure and energy projects that will
shape the future of Saudi Arabia.
International Banking
Group: A pioneer in global expansion
National Bank of Kuwait’s (NBK) International Banking Group (IBG) stands as a
testament to the bank’s commitment to serving its customers beyond local
borders. Established as the first national bank in the GCC and one of the first
regional banks to expand internationally, NBK initiated its international
expansion in the early 1980s. This strategic move marked the beginning of a
journey that has since seen the Group extend its reach to 13 countries across
four continents, with coverage extending to 50 countries across the world.
NBK employs over 6,000 staff globally, reflecting its diverse operations across
Asia, Europe, North America, and the Middle East. The Group’s journey in Saudi
Arabia commenced in 2006 with a single branch operation in Jeddah, which has
since expanded to three branches in Jeddah, Riyadh, and Khobar. IBG, which
comprises overseas branches and subsidiaries, serves as a vital pillar of NBK
Group’s growth. The strength of this network is reinforced by the Group’s
regional and international expertise, alongside a steadfast commitment to
maintaining the highest banking standards. With a focus on enhancing customer
experience, IBG is dedicated to generating substantial value for its clients.
The Group’s international operations play a critical role in bolstering NBK
Group’s revenues. In the first half of 2024, these operations contributed 24
percent of the Group’s net operating income, 23 percent of profits, and an
impressive 40 percent of total assets. These figures highlight the robustness of
the Group’s operational performance and underscore the success of its
diversification strategy.
As NBK continues to expand its international footprint, IBG remains integral to
its mission of providing exceptional financial services and innovative solutions
to clients around the globe. Through this strategic international approach, NBK
is well-positioned to navigate the complexities of the global financial
landscape while delivering unparalleled value to its customers.