BNP Paribas optimistic on Kuwait's banking sector

How is the banking sector in Kuwait?

The banking sector is very dynamic, and it is even expanding rapidly in the region.

The country has strong, profitable and well managed banks with a very diversified range of services.

How is the market growing, and where do you position BNP Paribas in this market?

The market is growing fast, enabling banks to expand their activities and products.

At BNP Paribas, we focus on Corporate and Investment Banking and Asset Management Services.

We are not active in retail banking across the region, which differentiates us. Our bank has been working with Kuwaiti companies for a long time, and quite actively since we inaugurated our local branch three years ago.

We have excellent relationships with the largest groups of companies of the country and our bank enjoys a great reputation among our clients, large companies and the financial institutions.

As a foreign bank, what are the obstacles that you face in Kuwait?

Any person or company starting a new activity, or duplicating its activity in a new country, has to go through a learning process before becoming fully operational.

Here it is the same; my predecessor had to make a lot of effort in order to build this bank in a new environment.

I am continuing the process of growing this bank in size and profitability. We were very lucky to have the support of the Central Bank of Kuwait and other entities.

Foreign banks are not allowed to open more than one branch in Kuwait, what effect has this had on your business?

It is a fact that the legislation of the country doesn't allow multiple branches for foreign banks.

This situation doesn't really impact the present focus of our business model. BNP Paribas Kuwait branch is mainly targeting corporate and institutions. We don't expect the client to come to the bank; the bank goes to the client.

But this could be an issue for retail banking especially as liberalization has brought additional competition into the Kuwaiti market, which in general is very healthy as it provides clients with a more diverse range of service.

For us, the strong presence of our group in the GCC is an important asset.

What opportunities do you see in the Kuwaiti market today?

The Kuwaiti market is very dynamic, and a lot of investments are done and even more are under discussion.

Our plan is to expand our client base and to bring to those clients the sophistication of one of the very few AA+ large international banks.

We do offer the main usual banking services in terms of project finance, capital markets, deposits, loans, all kinds of bonds (and in particular bid bonds in favour of Kuwaiti Public entities), LC's, hedging products, etc.

In addition we have all the skills to arrange syndications and to advise our clients on their different projects.

See also:
Kuwaiti law to boost foreign bank investment