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Established: 1953
US$ Billion: 202.8
Origin: Oil
Entity Structure: Fund
Transparency Rating: 6
Summary:
The Kuwait Investment Authority is the parent organization of the Kuwait Investment Office, which was initially established as the Kuwait Investment Board. The KIA invests in the Local, Arab and International Markets with its main office located in Kuwait City and a branch office in London, UK.
The Kuwait Investment Board was established in 1953 when Sheikh Abdullah Al-Salem Al-Sabah decided that oil revenue could be used to create a fund for the future and reduce its reliance on a single non-renewable resource. In 1961 the Minister of Finance, Sheikh Jaber Al-Ahmad Al-Jaber Al-Sabah, created the main investment policies for the fund that are still in use today.
The Kuwait Investment Office replaced the Kuwait Investment Board in 1963 and is based in the City of London. As a global and long-term investor, the KIO manages the Reserve for Future Generations and the General Reserve Fund, which was created in 1976. Investments of all asset classes are made in all geographical areas. Objectives of the KIO include maintaining the real value of the funds entrusted to the Office for the Future Generation Fund, achieving a fair return over the long-term, and to increase the favorable reputation as an expert and progressive institution in the international financial markets. As of fiscal year 2004/2005, the annual contribution to the Kuwait Future Generations Fund was valued at 896.24 million Kuwaiti dinars ($3,069.21 million USD, 1 KWD = 3.42454 USD).
The Kuwait Investment Authority ensures that the State of Kuwait transfers 10% of oil revenue into the Reserve for Future Generations on an annual basis.
KIA's board of directors is headed by the Minister of Finance, 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.
Transparency:
Under the Law No. 47 of 1982 of the State of Kuwait regarding the establishment of the Kuwait Investment Authority, there are three clauses that are related to transparency and the disclosure of information. Clauses 5, 8, and 9 require that the KIA presents detailed reports pertaining to Assets Under Management to the Council of Ministers and that disclosure to the public of any information related to KIA’s work is subject to penalties.
Sovereign Wealth Enterprises:
NTEC (National Technology Enterprises Company of Kuwait)
NTEC is the direct venture capital conduit for the Kuwait Investment Authority. It was created in 2002 with around US$311 million in start up capital.
St Martins Property
Value: £3 billion
Independently established in 1924, it is a development, investment and asset management company with a diverse portfolio throughout the UK, Europe and Australia. The London-based company is the real estate investment arm of the State of Kuwait. St Martins has had significant holdings in the City of London for over 80 years.
Kuwait Real Estate Investment Consortium K.S.C.
Value: $88.3 Million
Organized as a Kuwaiti shareholding company on October 1975, it is a sovereign wealth enterprise of the Kuwait Investment Authority. KIA owns 99.127% of this SWE. The SWE is engaged in carrying out real estate transactions, investment in securities and investment in portfolio management activities domestically and internationally.
The Kuwait Real Estate Investment Consortium also owns 100% of the Kuwait Distinguish Real Estate Group, WLL.
They also own the Lebanese Real Estate Investment Consortium (LREIC). It was established in 1994.
Kuwait China Investment Company (KCIC) K.S.C.
An 15% stake is owned by the Kuwait Investment Authority. Some of this company is open to the public.
It is a key investment vehicle for the KIA in Asia to take advantage of growing trade flows between the region and the Gulf, across sectors including agriculture, property, infrastructure, energy, and financial services.
KCIC was formally incorporated on December 12, 2005 by an Amiri Decree as a Kuwaiti shareholding company with a total capital of US $ 280 million.
4/13/2010
Daimler: Kuwait Investment Authority Stake Falls Below 5%
Nasdaq reported, "German car maker Daimler AG (DAI) said Tuesday that the Kuwait Investment Authority's stake has fallen below the 5% threshold."
read more: Nasdaq
9/7/2009
Kuwait's Sovereign Wealth Fund says to keep stakes in Citigroup, Merrill
Xinhua states, "Kuwait's sovereign wealth fund said Sunday it will keep stakes in Citigroup Inc. and Merrill Lynch & Co. despite the tumble in shareholder value.
'The authority has no intention of selling its holdings in Merrill Lynch or Citigroup in the near term, since the investment policies are based on a long-term vision,' the Kuwait Investment Authority said in a statement.
In January 2008, the agency pumped three billion U.S. dollars into Citigroup and another two billion dollars in Merrill Lynch, a big step amid the spreading global financial turmoil. However, the deals have drawn criticism from some members of the Kuwaiti parliament after the shareholder value shrank in harsh economic climate. The statement was also a reply to questions from lawmaker al-Tabtabai, who said in February the sovereign wealth fund lost 9 billion dinars (around 30.1 billion dollars) from March to December last year."
read more: Xinhua
4/28/2009
Kuwait Investment Authority pumps $1.4bn in bourse fund
Trade Arabia reports that, "Kuwait Investment Authority (KIA), the country's sovereign wealth fund, has injected about 400 million dinars ($1.37 billion) so far into a fund to support the bourse, an official said. Kuwait Investment Co (KIC), a unit of KIA, has managed the fund since December 24, the firm's chairman Bader Al-Subaie was cited as saying by local newspapers Al-Qabas and Al-Watan. KIC has managed to bring back gradual stability to the stock market through the fund, the papers added. KIC could not immediately be reached for comment. In November, Kuwait asked the KIA to set up a 1.5 billion dinars fund to stabilise the second-largest Arab bourse, which fell 38 percent last year during a regional stock market rout triggered by the global financial crisis. KIA owns a 76.19 percent in KIC, according to bourse data."
read more: Trade Arabia
4/27/2009
Kuwait Invest Co Plans To Enter $375M Caspian Sea Proj-Reports
Zawya reports that, "Kuwait Invest Co, or KIC, a unit of Kuwait Investment Authority, plans to invest in the Caspian Energy Hub project on the Caspian Sea that will have a total cost of $375 million, Kuwait-based Al Watan daily reports Monday. KIC will have a stake of 20% in this project--the latest of the energy cities projects launched by Kuwait Finance House, the paper reports citing Bader Al Subaiee, KIC's chairman and managing director."
read more: Zawya
2/3/2009
TPG ends talks over stake sale
FT reports that, "TPG has broken off talks to sell a stake in itself to investors including the Kuwait Investment Authority and two California state pension funds, highlighting the growing difficulties facing the world’s biggest private equity firms. The talks, which have proceeded in fits and starts for two years, broke down over the issue of valuing TPG, said people familiar with the matter. TPG had also given up any thoughts of an initial public offering, at least for the time being, they said."
read more: FT
1/26/2009
KIA takes stake in Gulf Bank
Reuters reports that, "Kuwait Investment Authority will own 16 percent in troubled Gulf Bank after the lender completed its capital hike, an official said on Monday. In December, shareholders in Gulf Bank approved a rescue plan ordered by the central bank to raise 375 million dinars (936.6 million pounds) in a 100 percent emergency rights issue to cover derivatives losses of the same amount. Under the rescue plan worked out by the government, the KIA was to buy up any remaining stock from the capital increase, which it will offer later to nationals in a public offering.
'Shareholders have subscribed to 68 percent of the capital increase ... the rest will go to the KIA,' General Manager Fawzy al-Thunayan told Reuters. 'This means the KIA will own 16 percent of Gulf Bank.'"
read more: Thomson Reuters
8/19/2008
Kuwait Telecom sale begins this week
Saudi Telecom Company (STC)’s subsidiary in Kuwait is to sell off a 25% stake worth KWD25 million (USD93 million) prior to a flotation on the Kuwait Stock Exchange later this year. The sale, which will begin on 22 August MEED reports, comes as part of deal agreed when STC was awarded Kuwait’s third national GSM licence in November 2007. The firm, dubbed Kuwait Telecom, will also transfer a 25% interest to government-backed institutions including the Kuwait Investment Authority and the Public Institute for Social Security.
read more: TeleGeography
8/17/2008
Kuwait signs around $27 billion of deals in Asia
According to Thomson Reuters, “Kuwait signed more than $27 billion of investment agreements with nine Asian countries, including Brunei and the Philippines, during an Asian tour this month, its finance minister said in remarks published on Sunday.
The agreements were in the economic, oil, health and foreign affairs sectors, daily Awan cited Mustapha al-Shamali as saying.
'The value of the accords and economic and commercial protocols are more than $27 billion, with $3 billion to $4 billion of investments and possible commercial partnerships with each country,' Shamali said.”
read more: Thomson Reuters
6/21/2008
KIA assets up 14.4% at $264.4 billion
Two funds managed by state-run Kuwait Investment Authority (KIA) rose 14.4 percent to 70.21 billion dinars ($264.4 billion) in the year to March 31, newspapers and parliamentary sources said on Friday. Finance Minister Mustapha al-Shamali briefed parliament about state assets in a closed-door session on Thursday. He declined to give figures to reporters after the session but Kuwaiti dailies al-Watan, al-Qabas and al-Seyassah said assets of the key Future Generations Funds, a nest egg for when oil runs out, was up 15.4 percent to 57.859 billion dinars on March 31, the end of the 2007/08 fiscal year.
read more: Thomson Reuters
5/28/2008
Kuwait’s balance of payment surplus swells to KD 1.04 bn
Kuwait current account continued to grow considerably at double digit rates over the period 2003-06. By the end of 2006, current account surplus reported another year of growth to increase by 47.7% to reach an all times high of KD14.8bn. It is important to note that such impressive growth came on top of 87.2% of growth reported for 2005. On CAGR basis, current account surplus recorded a high CAGR of 42.1% over the period 2001-06. Such growth pattern in current account surplus has helped to more than double its share in GDP from merely 11.2% in 2002 to account for 51.7% of GDP by the end of 2006. During the four year period 2001-05, current account surplus has registered a CAGR of 39.1%.
read more: Arab Times
4/9/08
Kuwait investment authority says regulation will 'handcuff' SWFs
From Morningstar, Thomson Financial writes that, "Bader Al Sa'ad, managing director of the Kuwait Investment Authority, has called for greater deregulation of sovereign wealth funds (SWFs), and said a code of conduct would harm global capital flows and 'handcuff' funds."
read more: Morningstar
4/8/08
KIA purchases about $800 million shares in Visa IPO ~ at least around 4% of shares.
1/25/2008
KIA Announces Participation in Citi Group and Merrill Lynch
Kuwait Investment Authority (KIA) announced that it agreed to a US$ 3 billion participation in the US$ 12.5 billion Citi Group Convertible Preferred Securities and US$ 2 billion participation in the US$ 6.6 billion Merrill Lynch Convertible Preferred Stock.
Kuwait Investment Authority
Kuwait Real Estate Investment Consortium
NTEC
1. All figures quoted are from official sources, or, where the institutions concerned do not issue statistics of their holdings, from other publicly available sources.
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