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
29°21′52″N 47°58′36″E
Agency executives
  • Saad Al Barrak, Chairman
  • Ghanem Al Ghenaiman, Managing Director
Parent agencyMinistry of Finance
Child agency
  • Kuwait Health Assurance Company
WebsiteOfficial Website
Kuwait Investment Authority
AUMIncrease US$803 billion (2023)

Founded in 1953, the KIA is the world's oldest sovereign wealth fund.[1] As of October 2023, it is the world's 5th largest sovereign wealth fund with US$803 billion in assets under management.[2]

History and profile

KIA was founded on 23 February 1953[2] 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.

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.[3]

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.[4]

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.[5]

Corporate Governance

KIA's board of directors is headed by the minister of finance[6] 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.[7]

Board of Directors
  • Saad Al-Barrak – Deputy Prime Minister, Oil Minister, and Minister of State for Economic and Investment Affairs
  • Aseel Al-Munifi – Undersecretary of Ministry of Finance
  • Meshaal Jaber Al-Ahamd Al-Sabah – Board Member
  • Fahad Al-Rashed – Board Member
  • Ghanem Suleiman Al-Ghenaiman – Board Member & Managing Director
  • Saoud Salem Abdulaziz Al-Sabah – Board Member

Executive Management
  • Ghanem Suleiman Al-Ghenaiman – Managing Director
  • Ahmed Bastaki – Executive Director (Planning & Senior Management Support)
  • Abdulaziz Al-Bader – Executive Director (Operations & Administration)
  • Aliah Al-Tameemi – Executive Director (Alternative Investments)
  • Huda Almousa – Acting Executive Director (General Reserves)
  • Sarah Al-Sane – Acting Executive Director (Marketable Securities)
  • Abdulrazaq Al-Buaijan – Chief Representative (KIO – Shanghai)
  • Khalid Al-Rowaieh – Director (Board of Directors Office)
  • Ahmad Al-Baghli – Director (Internal Audit Office)

See also

References
  1. "World's Oldest Wealth Fund Swells to Record and Cracks the Top 3". Bloomberg. 2 July 2021.
  2. "Kuwait Investment Authority (KIA) - Sovereign Wealth Fund, Kuwait - SWFI". www.swfinstitute.org. Retrieved 2023-06-21.
  3. "China grants Kuwait highest investment quota". Investvine. 21 January 2013. Retrieved 5 February 2013.
  4. "Kuwait SWF to Purchase North Sea Midstream Partners Limited". Sovereign Wealth Fund Institute. July 23, 2018.
  5. "Missing Millions -- Kuwait's Bad Bet -- A special report.; Big Wallets and Little Supervision". New York Times. 28 September 1993.
  6. "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.
  7. "About – Kuwait Investment Authority". Retrieved 2023-07-27.
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