Kuwait News

Kuwait 12th globally, third in GCC in sovereign wealth assets: report

A recent report from the Global SWF organization has disclosed that Kuwait’s sovereign wealth assets are rapidly approaching the trillion-dollar mark, currently standing at approximately $984 billion.

This positions Kuwait as the 12th largest sovereign wealth holder globally and the third in the Gulf and Arab world, following the UAE and Saudi Arabia, reports Al-Anba daily.

The report notes that these assets are equivalent to 5.3 times Kuwait’s GDP. The sovereign wealth assets of Kuwait encompass holdings from the General Authority for Investment, the Kuwait Public Institution for Social Insurance, and the Central Bank of Kuwait.

The report highlights that the majority of these assets are held by the Kuwait Investment Authority, particularly the Future Generations Fund, with a total value of $801 billion, representing 81.4% of the government’s overall sovereign wealth assets. Additionally, the Public Institution for Social Security (PIFSS) manages assets worth to $137 billion.

The past year has seen significant support from governments for their local economies, with examples such as the General Organization for Social Insurance acquiring government land worth $8.1 billion. Similarly, the Public Investment Fund in Saudi Arabia agreed to finance the construction of the world’s largest green hydrogen production plant.

Sovereign wealth funds in the region, led by the Saudi Public Investment Fund, are actively supporting their local economies. The report underscores this trend and highlights the Kuwaiti government’s plans to activate the “Sovereign” Fund as part of its ambitious 4-year program for sustainable economic growth.

The report predicts that by 2030, Gulf sovereign funds could reach a total value of $7.6 trillion, with the addition of pension funds and central bank assets potentially raising this figure to $11.2 trillion in the Middle East and North Africa region.

While China, Japan, and Norway have the largest sovereign funds in terms of total asset value, the United States leads globally in total sovereign wealth assets, surpassing $11.3 trillion.

The UAE ranks fourth globally with total sovereign wealth assets of $2.2 trillion, followed by Saudi Arabia in seventh place with $1.6 trillion.

Amidst global economic challenges, many nations are experiencing growth slowdowns and rising inflation. Governments are responding by injecting investments to stimulate growth, relying on their sovereign wealth assets and incorporating the investment element into their budgets to counter increasing public spending and debt obligations.

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