Gulf Bank announced on Tuesday that it has received preliminary approval from the Central Bank of Kuwait to transform into a Sharia-compliant bank. In a disclosure published on the Kuwait Stock Exchange website, Gulf Bank said the approval was based on the results of a feasibility study prepared by an international consulting firm, as well as the technical and legal procedures and requirements for the transformation process, which were submitted to the Central Bank.He added that the approval is valid for one year, subject to technical, legal and procedural requirements, including Gulf Bank's commitment to completing the requirements for the transformation, submitting to the Central Bank a statement indicating the completion of those requirements, requesting approval for the transformation and proceeding with the transformation procedures in accordance with the provisions of the Companies Law. Failure to comply with these requirements will result in the approval being revoked.He explained that the requirements include submitting an application to the Central Bank to obtain approval from the consulting entities that will be contracted with, and providing, by the end of December 2025 at the latest, a final statement on the elements of the activity existing before the transformation, which will continue with the bank after the transformation, and the timetable for its liquidation.Gulf Bank added that among the requirements is the importance of applying to the Central Bank to obtain prior approval for services and products provided in accordance with the provisions of Islamic Sharia.He stated that it is essential for Sharia advisors to play a role in monitoring the conversion of the bank's existing products and services to operate in accordance with Islamic Sharia law, as part of the steering committee for the conversion process, and to obtain the Central Bank's approval for the advisors.He explained that the requirements included not practicing any activities in accordance with the provisions of Islamic Sharia during the coming period until Gulf Bank is registered in the register of Islamic banks at the Central Bank of Kuwait. Al-Khaleej pointed out the importance of strengthening the functional apparatus in accordance with the requirements of the activity after the transformation, including training the current functional apparatus and fulfilling the operational requirements, taking into account the instructions of the Central Bank.Al Khaleej pointed out the importance of strengthening the functional apparatus in line with the requirements of the activity after the transformation, including training the current functional apparatus and fulfilling operational requirements, taking into account the instructions of the Central Bank. It pointed out the necessity of providing the Central Bank with a detailed monthly statement starting from September 30, 2025, clarifying the expected date for the start and completion of all transformation procedures within the specified period.He added that the requirements include determining the relative importance of each task or procedure to the total tasks and preparing a conservative scenario for the capital adequacy standard that includes Gulf Bank not benefiting from the alpha coefficient (a statistical measure).Gulf Bank affirmed its commitment to all laws and regulations, including obtaining any necessary approvals from regulatory authorities to initiate the necessary procedures within the framework of the transformation process and disclosing any material developments. Gulf Bank was established in 1960 and listed on the Kuwait Stock Exchange in 1984. Its authorized capital amounts to approximately 486 million dinars (approximately 1.4 billion dollars) and it carries out all banking activities.