Kuwait Investment Authority

The Kuwait Investment Authority (KIA) is the Middle East's oldest sovereign wealth fund, managing the state’s reserve and the state’s future generation fund (FGF).

Kuwait Investment Authority
الهيئة العامة للإستثمار
Agency overview
Formed1953 (1953)
HeadquartersAl Asimah
Agency executives
  • Abdulwahab AlRushaid, Chairman
  • Ghanem Al Ghenaiman, Managing Director
Parent agencyMinistry of Finance
Child agency
  • Kuwait Health Assurance Company
WebsiteOfficial Website
Kuwait Investment Authority
AUMIncrease US$738 billion (April 2022)[1][2][3]

Founded in 1953, the KIA is the world's oldest sovereign wealth fund.[4] As of April 2022, it was the world's 3rd largest sovereign wealth fund with US$738 billion in assets under management.[5]

History and profile

KIA was founded on 23 February 1953[6] to manage the funds of the Kuwaiti Government in light of financial surpluses after the discovery of oil

KIA manages the Kuwait General Reserve Fund, the Kuwait Future Generations Fund, as well as any other assets committed by the Ministry of Finance. To put KIA's size into perspective, the Kuwait Future Generations Fund has 15% of annual oil revenues added to it.

KIA's board of directors is headed by the minister of finance[7] with other seats allocated to the Energy Minister, Governor of the Central Bank of Kuwait, Undersecretary of the Ministry of Finance, and 5 other nationals who are experts in the field, 3 of which should not hold any other public office.

The Chinese regulator awarded Kuwait Investment Authority an additional $700 million quota on top of $300 million awarded in March 2012. The quota is the highest to be granted by China to foreign investment entities.[8]

The Kuwait Investment Authority has an infrastructure arm and signed an agreement to acquire the oil and gas pipeline firm North Sea Midstream Partners Limited for approximately 1.3 billion GBP in 2018.[9]

Grupo Torras

In 1986, the KIA's London based subsidiary, the Kuwait Investment Office (KIO), bought control of Torras Hostench, a Spanish paper maker. Torras subsequently took over a number of other companies to become Grupo Torras in June 1988. KIO invested about $2.5 billion in building up the company and another $1.8 billion to shore it up after the end of Spain's 1980s economic boom and the annexation of Kuwait by Iraq. However, in December 1992 Grupo Torras entered receivership among accusations of fraud, and Kuwait's investment was a total loss. One of its projects was the Gate of Europe twin towers in Madrid, which was still incomplete when the company collapsed.[10]

See also

References
  1. MacDonald, Fiona (June 19, 2021). "This $600 Billion Wealth Fund Got Caught in a Power Struggle". Bloomberg News. Retrieved 5 July 2021.
  2. "Leading SWFS worldwide by assets 2021".
  3. "Kuwait Investment Authority".
  4. "World's Oldest Wealth Fund Swells to Record and Cracks the Top 3". Bloomberg. 2 July 2021.
  5. MENAFN. "Visualizing The World's Largest Sovereign Wealth Funds". menafn.com. Retrieved 2021-12-10.
  6. "Kuwait Investment Authority". SWF Institute. Retrieved 21 December 2013.
  7. "The Finance Ministry, KIA & KIO". APS Review Gas Market Trends. 3 June 1991. Archived from the original on 10 June 2014. Retrieved 21 December 2013. – via HighBeam (subscription required)
  8. "China grants Kuwait highest investment quota". Investvine. 21 January 2013. Retrieved 5 February 2013.
  9. "Kuwait SWF to Purchase North Sea Midstream Partners Limited". Sovereign Wealth Fund Institute. July 23, 2018.
  10. "Missing Millions -- Kuwait's Bad Bet -- A special report.; Big Wallets and Little Supervision". New York Times. 28 September 1993.
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