Kuwait's cabinet has approved a new Islamic lender, with capital of 100 million dinars ($349 million) state news agency Kuna said on Tuesday, citing the minister of cabinet affairs.

Warba Bank will be 24-percent owned by Kuwait Investment Authority, the country's sovereign wealth fund, while the rest will be held by the public, Rodhan Al-Rodhan told Kuna after the cabinet's weekly meeting late on Monday.

Warba Bank, which complies with Islam's ban on interest, will compete with larger rival Kuwait Finance House, Kuwait International Bank and Boubyan Bank. - Reuters