The Central Bank of Kuwait (CBK) has formally notified both Warba Bank and Gulf Bank regarding a proposed feasibility study for their potential merger to create a unified Sharia-compliant banking entity, according to separate disclosures published on the Kuwait Stock Exchange website Wednesday.

Key Developments:

1. Regulatory Framework Received

   • CBK provided both banks with a customized guideline document outlining:
     • Merger approval procedures
     • Compliance requirements
     • Regulatory conditions

2. Next Phase Actions

   • Banks to coordinate on preliminary feasibility study

   • Required steps include:
     • Signing a Memorandum of Understanding (MoU)
     • Executing a Non-Disclosure Agreement (NDA)

   • Full compliance with:
     • CBK regulations
     • Relevant supervisory authorities' requirements

3. Official Statements

   • Gulf Bank's Disclosure: Confirmed coordination with Warba Bank to establish formal study framework

   • Warba Bank's Disclosure: Emphasized commitment to all regulatory procedures

Strategic Context:
This potential merger would:
✓ Create Kuwait's 4th largest bank by assets (estimated $30bn combined)
✓ Strengthen Islamic banking sector competitiveness
✓ Follow CBK's financial sector consolidation strategy

Procedural Timeline:

• MoU signing expected within 30 days

• Feasibility study duration: 6-9 months

• Final regulatory approval subject to:
  • Shareholder votes
  • CBK endorsement
  • Capital Markets Authority clearance