Kuwait Investment Authority eyes major liquidity boost with four new investment funds

• The Kuwait Investment Authority has established a set of standards for directing liquidity towards the selected funds, including performance history, quality of management, and exit flexibility.

Investment sources revealed that the Kuwait Investment Authority is considering boosting liquidity in the local market through four investment funds associated with both listed and unlisted companies on the Kuwait Stock Exchange. The initial injection is expected to be up to 100 million dinars, with the returns being evaluated before additional funds are allocated.

The sources said that the authority has established a set of standards for directing liquidity towards the selected funds, including performance history, quality of management, and exit flexibility.

They explained that the authority has not contributed cash amounts for years, with its last contribution occurring four years ago when it reduced its ownership in several listed companies, including Zain and Kuwait Investment Company.

Through this contribution, the authority aims to benefit from investment opportunities in the Kuwait Stock Exchange and the low prices of many stocks with returns compared to other Gulf markets.

In the same context, the sources confirmed that this approach has received significant support from major asset management companies, as these contributions would deepen the institutionalization of the financial market, enhance confidence in the stock exchange, and attract foreign investors.

Historically, the authority has achieved returns from all its market contributions, some exceeding 50 percent, considering the size of the distributions received over the years, including grants and cash, in addition to the price changes in the value of the investments.