Kuwait said to plan new $100bn sovereign wealth fund – Bid to rationalize subsidies

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‘Coral Reefs of Kuwait’ book explores the amazing diversity of marine ecosystems in the Arabian Gulf.
‘Coral Reefs of Kuwait’ book explores the amazing diversity of marine ecosystems in the Arabian Gulf.

KUWAIT CITY, Jan 24: The government has announced its plan to establish a new sovereign wealth fund to manage State properties and investments in different vital projects and companies like electricity and water stations, reports Al-Anba daily quoting sources.

Sources said the projected size of this fund is about $100 billion and it is aimed at developing a new method for managing investments — especially the local assets handled by Kuwait Investment Authority (KIA) which has been heavily burdened by its domestic mandate and it has decided to concentrate on its global investment.

Sources clarified the fund will develop local investments and increase their value before selling them to the private sector within five to seven years. Sources said the projected revenue ranges from four to seven percent as per the nature and quality of the investment.

Sources affirmed the fund is in line with the State’s strategy in rationalizing subsidies, particularly in the implementation of electricity and water projects, since the country expects to earn huge revenues.

On the sovereign wealth fund currently managed by KIA with assets estimated at $592 billion and its correlation with the new fund, sources asserted there is no point of comparison between the two funds, because the new fund will be totally different, including the technical aspects, way of managing the fund and its size.

This news has been read 7076 times!

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