BlackRock explores cooperation with Kuwait Investment Authority

The meetings between the companies pave the way for joint cooperation among the two parties and enable them to identify potential investment opportunities or enhance existing ones.

  • Kuwait Investment Authority owns the sixth-largest sovereign fund globally and the third-largest in the Arab world

  • BlackRock, the largest asset management company in the world, has investments under management worth about $10 trillion.

Al-Rai obtained information from reliable sources indicating that Laurence (Larry) Douglas Fink, the CEO of BlackRock International Asset Management, recently visited Kuwait, particularly the Kuwait Investment Authority.

It indicated that Larry met the Managing Director of the Kuwait Investment Authority, Ghanem Al-Ghunaiman, accompanied by his regional team. They generally reviewed some public files that constitute opportunities to increase possible cooperation between the Kuwait Investment Authority, which owns the sixth-largest sovereign fund in the world and the third-largest in the Arab world, with BlackRock, the largest asset management company in the world, with investments under management worth about $10 trillion.

BlackRock, listed on the New York Stock Exchange (NSE) and one of the largest leading institutions in the field of global consulting, is considered one of the largest global foreign portfolios invested in the Kuwait Stock Exchange for the benefit of foreign clients. It has an influential investment presence in the local stock market at the level of several operational leadership stocks, especially in the past year.

At the end of 2022, BlackRock acquired various stakes in shares of companies listed on the Kuwait Stock Exchange for about 700 million dinars. It is said to have increased its stakes locally and launched the “iShares” traded investment fund as the first traded investment fund focused on Kuwait.

The sources pointed out that meetings conducted by officials of international companies with the leaders of the Kuwait Investment Authority. open new horizons for joint cooperation between the two parties and enable them to identify potential investment opportunities or increase existing ones.

As for BlackRock, its visit to the Kuwait Investment Authority comes as part of broader efforts led by the company to attract managers of major investment institutions and sovereign wealth funds in the world and to enhance existing cooperation.

As for the Kuwait Investment Authority., these types of international visits provide it with positive exposure to appropriate investment opportunities in the global economy and major projects of interest that are being implemented in the region. This ensures that Kuwait and its sovereign fund maintain a prominent place on the global economic map and achieve their goals of becoming a global financial and commercial center.

While they confirmed that there was no agreement on any specific new cooperation between the two parties, the sources added that such meetings provide an opportunity to raise the level of cooperation between major international companies and the Kuwait Investment Authority. This will position the latter among the best investors in the region as part of its strategy for managing the sovereign fund.

The strategy aims to focus on long-term investments with distinctive returns and acceptable risks amid the turmoil witnessed in global markets, which represents a major challenge for investors and financial institutions.

The sources stated that the relationship between BlackRock Corporation and the Kuwait Investment Authority, as well as other international companies, enhances the general perspective of risk management and contributes to providing successful investment solutions.

The sources added that the visit of BlackRock officials to Kuwait opens the way for other financial institutions and international economic figures to imitate this, providing a major opportunity to discuss possible cooperation opportunities globally. Additionally, it helps in marketing the nature of the Kuwaiti economy and its promising opportunities to foreign investors, which contributes to making Kuwait a commercial and financial center, at least globally, in terms of attracting international companies.

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