Kuwait Investment Authority

News and Updates

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

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

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

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

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

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

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

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

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

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

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

KIA purchases about $800 million shares in Visa IPO ~ at least around 4% of shares.

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

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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