Kuwait Investment Authority

State of Kuwait US$ 548 Billion Origin: Oil

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Sovereign Wealth Funds

Public Funds

Established: 1953
Transparency Rating: 6
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Firm Investment Style: Mixed
Entity Structure: Funds
Population Est.: 2.82 million – 2012
Wealth Per Capita Est.: $194,326

Fund Details

Strategy & Objectives

SWF Asset Allocation

Fixed Income Managers

Equity Managers

Real Estate Managers

Alternative Managers

Key Executives and People

Board and Advisors


Main Office

Kuwait Investment Authority
Ministries Complex
AlMurqab
Kuwait City
Kuwait

Kuwait Office
P.O. Box 64
Safat, Z. Code
13001, Kuwait
Tel: +965 (0) 2485600
Fax: +965 (0) 2454059

Other Offices

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Governance

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Trade-Tax Agreements

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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 Kuwait Investment Authority 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.

kuwait investment authority

Summary

The Kuwait Investment Authority (KIA) is the parent organization of the Kuwait Investment Office (KIO), which was initially established as the Kuwait Investment Board. The Kuwait Investment Authority invests in domestic and international markets with its main office in Kuwait City and branch offices in Beijing and London.

Background on the Kuwait Investment Authority

The Kuwait Investment Office owes its existence to Sheikh Abdullah Al-Salem Al-Sabah, the ruler of Kuwait from 1950-1965, who decided that a portion of the oil revenue would be used for the people of Kuwait.

The fund started out as an account at the Bank of England dedicated to receiving oil revenue. On February 23rd, 1953, in London, the Kuwait Investment Board was established when Sheikh Abdullah Al-Salem Al-Sabah decided that oil revenue could be used to create a savings fund for the future and reduce its reliance on a single non-renewable resource. The board initially had four trustees which included two Bank of England directors. In 1961, the Minister of Finance, Sheikh Jaber Al-Ahmad Al-Jaber Al-Sabah, created the main investment policies for the authority that are still in use today. From a modest few hundreds of thousands of English pounds deposit in the Bank of England, KIA now has in excess of £ 15 billion invested in more than 100 listed UK equities.

The Kuwait Investment Office (KIO) 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 (also called the Future Generations Fund) and the General Reserve Fund, which was created in 1976. Currently, the majority of the assets are held in the Future Generations Fund. Law 47/1982 was issued establishing KIA as an independent legal entity operating under the auspices of the Ministry of Finance.

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.

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. This transfer number has been lifted to 25% now.

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Historical Assets Under Management on Kuwait Investment Authority

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Sovereign Wealth Enterprises

Kuwait Investment Office
The Kuwait Investment Office (KIO) is the branch office of Kuwait Investment Authority in the city of London and manages funds on behalf of Kuwait. It was set up in 1953 with the aim of investing surplus oil revenues to reduce the reliance of Kuwait on its finite oil resource.

The in-house investment arm manages around US$ 120 billion for the KIA.


Other Subsidiaries

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Major Direct Foreign Investments (Public)

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