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Tue 1 Jan 2008 08:35 PM

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Kuwait to set up third Islamic lender

Gov't gives green light to creation of lender with capital of $364.8mn, state news agency reports.

Kuwait's government gave the green light on Monday for a third Islamic lender in the Gulf Arab state, state news agency Kuna said after a weekly cabinet meeting.

In July, parliament approved the creation of the Islamic lender with a capital of 100 million dinars ($364.8 million), 76% of which will be distributed to citizens in a public offering as part of sharing massive oil revenues.

The measure needs final approval by Kuwait's ruler.

Kuwait has currently two lenders that comply with Islamic law - Kuwait Finance House and its smaller rival Boubyan Bank.

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