Kuwait City, May 12: Kuwait Finance House (KFH) signed the first-of-its-kind Global Takaful Alliance agreement with the United Nations Development Programme (UNDP) at KFH's headquarters. The two parties also discussed establishing a strategic partnership to finance sustainable development projects in Kuwait, the region, and around the world.

The agreement was signed by Dr. Abdallah Al Dardari, Assistant Secretary-General of the United Nations and Director of the Regional Bureau for Arab States at the UNDP, and Abdulwahab Al Rushood, KFH Acting Group CEO, KFH Kuwait CEO, Khaled AlShamlan, and other officials from both parties witnessed the signing.

Following the signing of the agreement, Dr. Abdallah Al Dardari said: "We were honored to meet today with top executives at KFH, a world leading Islamic financial institution. We discussed various topics, with a particular focus on forming a strategic partnership to finance sustainable development projects throughout Kuwait, the Arab region, and beyond."

Al Dardari added: "By signing the Takaful agreement, KFH becomes a member of the Global Takaful Alliance. This alliance aims to provide Takaful insurance to 100 million farmers worldwide. It will also empower these farmers by enabling them to access financing and financial instruments to expand their businesses."

"The agreement with KFH establishes collaboration on several aspects. The focus will be on supporting small and medium-sized enterprises (SMEs) through Islamic financing solutions for sustainable operations and achieving business sustainability. The discussions also addressed fintech companies and explored ways to strengthen cooperation with them," He added.

He emphasized that the two parties have agreed in principle to create a sustainable financing platform, the Green Finance Facility. This initiative aims to connect Islamic finance with sustainable development projects across the Arab region, Africa, and beyond. The rationale behind this lies in the inherent compatibility of Islamic finance principles with the goals of sustainable development.

Praising KFH`s excellence in sustainability efforts, Al Dardari commended the bank as a role model for the financial institutions and the private sector. He further emphasized the importance of the strong partnership between the two parties, stating that this collaboration is crucial for UNDP's continued progress on various sustainable initiatives.

KFH Acting Group Chief Executive Officer, Abdulwahab Al Rushood

KFH Acting Group Chief Executive Officer, Abdulwahab Al Rushood emphasized KFH’s continued efforts to strengthen its leadership role in implementing the Sustainable Development Goals (SDGs). He also underscored the importance of solidifying the (ESG) principles across all KFH`s operations. Additionally, he highlighted the significance of the partnership with the UNDP.

"KFH pioneered both impact measurement reporting and the issuance of sustainable Sukuk. The strong demand for these Sukuk reflects the growing trend towards sustainability. KFH further solidified its leadership in sustainability by issuing sustainability report and the Kuwaiti banking sector's first-of-its-kind carbon footprint report. The bank also launched the 'Keep it Green' campaign, which has spurred numerous sustainability initiatives," he added.

Al Rushood highlighted the alignment between KFH's focus on supporting SMEs, sustainable projects, and collaboration with Fintechs, and the UNDP's priorities and sustainability standards.

He emphasized that Islamic finance has long been differentiated by its focus on developmental and sustainable goals, creating a positive impact on individuals, society, the economy, and overall development. KFH's extensive presence in 12 countries worldwide strengthens its role in implementing sustainability on a large scale. This, in turn, contributes significantly to a comprehensive sustainability strategy.