History and origins
The Kuwait Investment Authority (KIA) is the oldest sovereign wealth fund in the world. KIA traces its roots to the Kuwait Investment Board, which was established in 1953, eight years before Kuwait’s independence.
In 1982, KIA was established to take over the responsibility of managing the assets of Kuwait from the Ministry of Finance. Today, the KIA manages two main funds: the General Reserve Fund (GRF) and the Future Generations Fund (FGF). The KIA may also manage any other funds entrusted to it by the Minister of Finance. The KIA is an asset manager, and does not own any of the assets it manages, all of which are owned by the State of Kuwait.
Investment philosophy
KIA’s mission is to achieve a long-term investment return on the financial reserves entrusted by the State of Kuwait to the Kuwait Investment Authority by providing an alternative to oil reserves.
KIA’s objectives are threefold: (1) KIA aims to achieve a rate of return on its investment that, on a three-year rolling average, exceeds composite benchmarks by designing and maintaining an uncorrelated asset allocation, consistent with mandated return and risk objectives; (2) KIA endeavors to be a world class investment management organization committed to continuous improvement in the way it conducts business; and (3) KIA is committed to the excellence of the private sector in Kuwait, while ensuring that it does not compete with or substitute for it in any field.
Source of funds
KIA is responsible for the management and administration of Kuwait’s General Reserve Fund (GRF) and its Future Generations Fund (FGF), as well as all other funds entrusted to it by the Minister of Finance for and on behalf of the State of Kuwait. The GRF is the repository of all of the State of Kuwait’s oil revenues and income earned from GRF investments. The FGF was established in 1976 with 50 percent of the GRF balance, and each year 10 percent of all state revenues, including revenues of the GRF, are transferred to the FGF. KIA manages FGF assets for the benefit of future generations, permitting oil assets to be diversified into long-term financial investments.
Structure and governance
KIA is an independent public authority managed by its Board of Directors, the majority of whom must be from the private sector. The Managing Director is appointed by the Board of Directors from the private sector representatives. An Executive Committee of the Board is responsible for monitoring KIA’s activities.
Independent audits and review
KIA’s accounts are reviewed, audited, and approved by two of the world’s leading external audit firms. In addition, KIA is required by law to submit semi-annual statements of its assets under management to the independent State Audit Bureau; KIA presents an annual statement of its accounts to the Council of Ministers (Kuwait’s Cabinet); the KIA presents an annual statement of its accounts to the National Assembly (Kuwait’s Parliament); and the KIA appears before various committees at Parliament on a periodic basis to discuss KIA’s performance. KIA’s Board of Directors has an Audit Committee, with members from the private sector representative of the Board.
Risk management
KIA’s performance and risk management systems are the responsibility of KIA’s Risk and Performance Unit, which reports directly to the Managing Director. The Risk and Performance Unit is responsible for conducting performance and risk analysis, identifying and communicating performance and risk issues to senior management, developing an understanding of performance and risk within KIA’s investment sectors, and investigating data irregularities.
FAQs
A London court ruled that the Kuwait Investment Authority, which manages a sovereign wealth fund in excess of $800 billion, can be sued in the U.K., opening the door for employees to launch legal action against the unit that has previously asserted diplomatic immunity.
What is the Kuwait Investment Authority investment strategy? ›
Strategy. At KIA, we are motivated by our responsibility to the future and our obligation to our shareholders- Kuwait's current and future generations. Our mission is to achieve a long-term investment return on the financial reserves entrusted by the State of Kuwait to KIA by providing an alternative to oil reserves.
What is the General Authority for investment in Kuwait? ›
The Kuwait Investment Authority (KIA) is the oldest sovereign wealth fund in the world. KIA traces its roots to the Kuwait Investment Board, which was established in 1953, eight years before Kuwait's independence in 1961 In 1982, KIA was created by Law No.
Who owns the Kuwait Investment Authority investment company? ›
The KIA is an asset manager, and does not own any of the assets it manages, all of which are owned by the State of Kuwait.
Which country has the largest wealth fund in the world? ›
Norway is home to the biggest sovereign wealth fund globally, valued at nearly $1.4 trillion.
What is the world's largest fund company? ›
Is Kuwait a good country to invest in? ›
Kuwait is classified as a low risk (A3) by the globally operating French credit insurer Coface, which generally means that the political and economic situation is relatively good, with stable and efficient commercial environment.
Who is the biggest investment authority? ›
Largest SWFs funds worldwide April 2024, by total assets
The largest SWF was the Abu Dhabi Investment Authority, managing assets just shy of one trillion U.S. dollars.
How much is the Kuwait Fund worth? ›
Founded in 1953, the KIA is the world's oldest sovereign wealth fund. As of October 2023, it is the world's 5th largest sovereign wealth fund with US$803 billion in assets under management.
Who controls oil in Kuwait? ›
The country's oil sector is run by the Kuwait Petroleum Corporation (KPC), a state-owned enterprise.
Largest sovereign wealth funds
| Name | Assets, in billions | Country |
|---|
| Kuwait Investment Authority | $592.00 | Kuwait |
| Hong Kong Monetary Authority Investment Portfolio | $522.60 | China - Hong Kong |
| SAMA Foreign Holdings | $515.60 | Saudi Arabia |
| SAFE Investment Company | $441.00 | China |
16 more rowsIbrahim AlQadhi as the new CEO of GIC since he has diverse capabilities and an accumulated experience that spans over thirty years, sixteen of which were in the field of investment and fourteen years in banking”.
How rich is GIC? ›
With AUM estimated at $769 billion at the end of 2023 GIC ranked sixth among sovereign wealth funds globally, while Temasek was 10th with $288 billion.
What are the sectors of Kuwait Investment Authority? ›
The fund invests in private and public equity, real estate, fixed income, and alternative investment markets. It is divided into two segments: the General Reserve Fund and the Future Generations Fund.
Who is the head of alternatives of Kuwait Investment Authority? ›
Aliah Al Tameemi, the Head of Alternatives of the Kuwait Investment Authority (KIA), has been replaced by Salah Al Muraikhi, a Director of the Hedge Funds program. This represents the latest move among the sovereign wealth fund's executive management, which has seen 70% of its members (including all heads of...
How big is the Kuwait fund? ›
The Kuwait Investment Authority, which manages more than $800 billion in government funds, is poised for one of its best fiscal years on record amid a broad market rally that drove double-digit returns at the sovereign investor.
How much is the Kuwait investment fund worth? ›
The fund's value has soared from $803 billion in July 2023 to $923.45 billion currently, marked by 811 transactions. Despite this remarkable growth, Kuwait's Sovereign Fund, known as “Future Generations,” maintains its fifth position among the world's largest sovereign wealth funds in terms of asset size.
How big is the Adia fund? ›
The Abu Dhabi Investment Authority (Arabic: جهاز أبوظبي للاستثمار, ADIA) is a sovereign wealth fund owned by the Emirate of Abu Dhabi in the United Arab Emirates, founded to invest funds on behalf of the Government of Abu Dhabi. It manages the emirate's excess oil reserves and is estimated to manage $968 billion.
How big is the TMV VC fund? ›
Women-Led VC Firm TMV Raises $64 Million To Back 'Triple Bottom-Line' Startups Benefiting The Planet. TMV partners Marina Hadjipateras and Soraya Darabi call themselves “generalists that care about businesses building beyond a bottom line."
