KFH to pay fees for empty pieces of land

August 10, 2014 9:05 am

Kuwait Finance House (KFH) Chairman, Hamad Al-Marzouq stated that KFH took the initiative to pay the prescribed fees for empty pieces of land on its local real estate transactions.

This initiative has been taken as per the Ministry of Finance requirements and according to law 8 of 2008. He added that KFH prioritizes clients’ convenience, stressing that the bank is committed to abiding by the law and regulations, while ensuring the rights of shareholders and depositors, in addition to the public interest.

Al-Marzouq went on to say that despite reservations about some aspects of the fees regarding its legality, its applicability and its reflection on the local real estate market, KFH took the decision of payment while maintaining the right to recover the full amount or part of the amount paid in light of what the judicial rulings will result in this regard.

Moreover, Al-Marzouq indicated that KFH had strived to clarify its position and the nature of its work in the field of real estate according to the Islamic financing structures of Murabaha and Ijara and their requirements to ensure that clients clear their real estate debts according to the prescribed instructions and regulations where KFH maintains possession of the assets until the completion of clearing debts on the transactions of Murabaha and Ijara.

Al-Marzouq stressed, “In spite of the unfavorable surrounding circumstances, KFH continues to work in real estate as it is a pioneer in this field.” Furthermore, he said, “KFH enhances its significant role in providing suitable residential real estate to citizens through Sharia compliant transactions. It is worth noting that KFH witnessed a huge client turnout since it managed over 35 years to effectively contribute in the real estate development where it developed several real estate projects that achieved a paradigm shift in this field, not to mention it financed, with facilities and favorable conditions, thousands of Kuwaiti families for a long period of time.”