‘Kuwait taking serious steps to analyze investments in some foreign countries’

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Healthcare, food security most attractive sectors

KUWAIT CITY, Aug 17: Kuwait is keenly looking into an exit strategy for its investments in some countries that face political and financial risks, pointing out that Kuwait Investment Authority (KIA) has already started taking serious steps in this direction.

The same sources indicated that restructuring of foreign investments is among the strategies adopted by the authority toward sectors that have proven their economic viability in the course of the coronavirus crisis, noting the sectors of healthcare, food security and medical supplies are considered among the most attractive sectors in the coming period. Sources stressed that sectors achieving great profit in this crisis created the preference among necessities targeted in the coming period. Kuwait has vast investments in all countries of the world as its investment authority studies all available opportunities and selects the best in terms of long-term economic viability.

According to previous reports, the income generated from Kuwaiti investments has increased by more than 120 percent in the last years. Concerned sources affirmed that the returns achieved by Kuwait are relatively good, given that discretion is a dominant feature preferred by the Kuwait Investment Authority and it’s rarely at risk. Government agencies prefer to be careful not to engage in any investments in which the risk ratio exceeds 30 percent of the total volume of investment, due to fluctuations witnessed in the global markets over the last period, in addition to trade conflicts between the United States and China, obstacles to Britain’s exit from the European Union and political tensions.

Therefore, it is always advisable to restructure the investments exposed to risks and move away from stock market and reduce exposure to them, while moving toward the acquisition of bonds that are less risky. According to data from Kuwait Investment Authority and the sovereign fund, foreign investments are distributed in about 130 countries around the world, and managed by 150 agents and investment managers; the most prominent of the managers are the London office and the United States office.

Kuwait, through its Investment Authority, aims to maximize the revenue on investments of the State’s public reserve and funds allocated to the reserves of future generations. The authority also establishes self-monitoring on all of its investments, in accordance with the rules in force in the authority, approved by the Board of Directors. Also, it is subject to the oversight of State Audit Bureau and the Supervisory Authority.

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