Al-Khaled: KFH spending in the market reaches KD120m in the 1st quarter

KFH spending in the local market during the first quarter approximated KD120m, thus reflecting dealers trust in the market including customers and suppliers in addition to the major diversification of services and products rendered to customers.

Mr. Al-Khaled emphasized that despite the economic slowdown witnessed during the year at the international and regional levels KFH was able by the grace of Allah to achieve positive results.

This success is attributed to higher management's sound strategies and tendencies, compliance with the rules and regulations issued by regulatory authorities to organize and the great continuous effort exerted by KFH employees to achieve success for their organization in these circumstances.

Mr. Al-Khaled highlighted that the reflections of the global crises are the most significant events which the local market is witnessing. Consumer finance can not be isolated from the impacts of the crises. It is a financial service that is well tied up to the activities of commercial markets and productive companies and sectors which have impacted one another severely, thus impacting sales volumes in all market sectors.

The role which banks and financial institutions play in Kuwait has participated significantly in mitigating the major and deep impacts of the crises. This fact can be witnessed through agents and retailers providing grand facilities to maintain and preserve full stability as well as incentives to activate the market.

He reiterated that customers' need of consumables and various services available in the market is the main direct cause to obtain finance and purchase various products and services.

Also, there are several factors underlying this need including continuous growth of customers' social, cultural and economic needs. Growing technology development is also considered as one of the significant factors that motivate customers to obtain finance and fulfill their needs.

Mr. Al-Khaled stated that the state's execution of social welfare, housing and economic projects shall alleviate consumer finance services. In addition incentives provided by suppliers are attracting many customers to benefit from the same. Incentives include discounts and mitigation of costs at certain timings of the year.

The direct relation between the No. of population and the consumer finance market controls the increase in the volume of finance in all societies especially in light of the State's spending on growth projects i.e. housing, land preparation ...etc.

Mr. Al-Khaled highlighted the government's significant role in activating the market in these difficult circumstances which the economic session is experiencing during the year 2009. This role is represented in increasing the public spending as economic activity is dependant on the spending levels, support of financial institutions, provisions of required liquidity and investment opportunities through the announcement of new projects to preserve financial stability and strengthen dealers trust in the market.

Mr. Al-Khaled described the Kuwaiti consumer market as one of the most active local markets in the region despite its small size. The market still needs support by increasing the No. of dealers. The number of finance and investment companies is in continuous increase. Had the financial crises not occurred we would have witnessed the entrance of other companies.

Also, the existence of regional and international foreign banks is the best evidence on the distinguished activity of this promising market.

Mr. Al-Khaled reiterated the necessity to comply with Sharia rules and regulations, which is the process that distinguishes the identity of KFH and other banks and finance companies. No products or services can be released without KFH Sharia committee approval.

All commercial sector operations are governed by Sharia committee's approval through Sharia Audit Unit and Sharia Research and Studies Unit. Employees concepts are reinforced in this respect in order to make them more qualified to render services to customers based on full knowledge and understanding.

Mr. Al-Khaled stated that there are more than 4 thousand suppliers dealing with KFH. KFH provides support and logistic services to such dealers and follow up their finance needs continuously.

He added that the diversification of KFH finance services among various sectors including new and used cars, boats, marine equipment, electrical and electronic appliances, construction materials and other services required by the consumer fiancé market customers participates directly in reinforcing the strength of KFH in this market and mitigates risks.