The Kuwait Finance House is the largest and, in many respects, the most successful of the Islamic commercial banks which have been established in the last two decades. It accounts for almost one-fifth of total bank deposits in Kuwait, the highest market share of any Islamic commercial bank in a national market. (1) Furthermore, it is the leading Islamic bank in terms of assets, larger even than the Faisal Islamic Bank of Egypt, and thirtieth in the league of Arab commercial banks. (2)

Given its significant position, it seems appropriate to review its experience, examining its activities, performance, profitability, liquidity position, and returns to depositors and investors. To what extent do its activities correspond to those of the other conventional riba banks in Kuwait? Does its Islamic character distinguish the institution in banking terms? Does it act as a market leader, introducing new products and services to its customers, or does it merely respond to market demand? How far do the policies of the Kuwait Finance House differ from other Islamic commercial banks, and if there are differences, can these be explained by the distinctive features of the market in which it operates? What are the future prospects for the Kuwait Finance House, given the limited extent of the potential customer base in Kuwait? Should the House expand internationally, or instead concentrate on developing the range of services it offers to its Kuwaiti clients domestically?