Despite the global economic tensions witnessed by the world’s largest economies during the past year, Kuwait succeeded in increasing investment income by about 7.1% or 7.98 billion dinars by the end of 2022, compared to the previous year, in which investment income recorded about 7.4 billions dinars.
The Al-Anba daily has learned the data of the “investment income” item, which includes direct investment, portfolio investments and other investments, within the balance of payments issued quarterly by the Central Bank of Kuwait, showed that investment income in 2022 achieved about 7.9 billion dinars, and Kuwaiti investment income abroad is divided according to the nature of the investment into 3 main types — between direct investment, financial portfolio and other investments, which are detailed as follows:
1- Direct investment: It brought a return of 3 billion dinars, and that investment is concentrated in shares and direct ownership in companies and factories in all economic sectors.
2- Investments of the financial portfolio: It brought a return of about 4.5 billion dinars, and the investment in the financial portfolio is concentrated specifically in bonds and stocks.
3- Other investments: The returns were about 1.6 billion dinars, and that value represents the rest of the indirect investments from partnerships and participation in non-financial projects and investments.
Kuwait invests in more than 125 economies around the world and is managed by more than 125 foreign investment managers and more than 50 investment authorizations.
The Kuwait Investment Authority studies the areas in which it intends to invest and examines many financial, economic and regulatory factors and indicators, including the size of the economy, economic growth rates and the ease of doing business index; granted tax facilities and exit strategies from financial markets.
The investments of the Kuwait Investment Authority do not aim to influence the management of the companies in whose shares it invests, so that the share of its investments in the company does not exceed more than 10% of the total, and indirect management is carried out by external investment managers, and the proportion of funds constitutes about 70% of the total.
KIA effectively manages its portfolios according to a dynamic asset allocation strategy that is set and monitored by the Board of Directors.
The portfolios seek to achieve high, long-term, risk-adjusted returns by investing in high-quality companies and projects.
SAGIA’s presence has grown strategically over the past 65 years, with assets covering the Americas, Europe, Asia Pacific, and emerging markets.
The General Reserve Fund, which is considered the public treasury of the state and the buffer in the face of financial crises, has succeeded in providing financial stability and liquidity for the state.
Moreover, the General Reserve Fund is considered the main income to bridge the state budget deficit since the end of the Public Debt Law in 2017, and the general reserve has succeeded in filling the financial deficit of the state by providing liquidity and paying the financial obligations of the state through liquidating the portfolios of the General Reserve Fund with high financial liquidity.
The Authority’s aims to achieve a rate of return on its investments that, over a period of three years, exceeds the composite standards by designing and maintaining the distribution of non-correlated assets, in line with the established objectives and risk.
The Authority seeks to be a global investment management institution committed to continuous improvement in the way business is conducted.
The authority is committed to distinguishing the private sector in Kuwait, while ensuring that it does not compete with or replace it in any field.
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