Industrial Bank of Kuwait marks 40th anniversary

It was 40 years ago that the Indusial Bank of Kuwait K.S.C was established, December 10, 1973 with the initiative of the Government of the State of Kuwait through signing the Memorandum and Articles of Association of the Bank. The bank is marking this anniversary and stressing its identity as an icon of state-private sector cooperation. Upon establishment, the parties that took up a share included the Ministry of Finance, the Central Bank of Kuwait (CBK), and the Public Institution of Social Security from the state sector, alongside leading local banks, insurance companies, and other strong private sector entities. Starting off on KD 10 million, the bank's capital was doubled to KD 20 million in June 1981. Since starting out, the bank provided 932 loans for industrial projects at a total of KD 972.9 million which accounts for 53.7 percent of the total cost of these projects which stood at KD 1.8 billion. The bank provides industrial loans, medium and long-term, for new industrial facilities or for expansion of already established industries at an interest rate of 3.5 percent. The loans are extended through successive long-term credit facilities that amounted to KD 300 million provided to IBK by the government with maturity set for 20 years. It also provides many banking facilities to the industrial sector at current market interest rate. Since its debut, the IBK sought to support and encourage industrial activity in Kuwait. The services improved over the past four decades, in part due to the government entrusting the bank with management of several portfolios. These are "The Handicraft and Small Enterprises Financing Portfolio", "The Agricultural Financing Portfolio", and the "Islamic Industrial Finance Portfolio." According to bank 2012 figures, overall IBK assets stand at KD 669.1 million, while its credit portfolio stands at KD 311.9 million. Profit for the same year came to KD 8.4 million. IBK is now set to face many new challenges, especially with the launch of the state's latest development plan and with the Public Authority for Industry's launching of rehabilitation of Al-Shdadiyya industrial zone and a complete block of Sabhan Industrial Area, along with preparations and studies concerning Al-Naayem Industrial Area. In 2012, Kuwait Industrial Bank approved long-term facilitated loans for 25 projects in five industrial fields. One new project was in the field of chemical products and the remaining 24 projects were expansions in existent activity in the fields of paper manufacturing, printing and publication, construction material manufacturing, and equipment and electrical gear manufacturing. This translated into an increase of 13.6 percent over loans provided the year before. The Kuwaiti Government entrusted the bank with managing "The Handicraft and Small Enterprises Financing Portfolio" and "The Agricultural Financing Portfolio", at capital of KD 50 million each, and the "Islamic Industrial Finance Portfolio" at capital of KD 100 million. Great hopes are now pinned on the bank towards implementation of the state's development plan and the overall objective of diversifying the national economy through increasing the industrial sector's contribution to the Gross Domestic Product, most specifically from manufacturing industries and petrochemicals. The Central Bureau of Statistics' figures for 2011 indicated that manufacturing industries accounted for 4.6 percent of domestic product and 11. 2 of non-oil domestic product, and that manufacturing industries excluding refining saw growth of 5.1 percent, compared to growth of 11.5 percent the year before