Kuwait Investment Authority
From Taighde
| Kuwait Investment Authority | |
|---|---|
| |
| Official Name: | الهيءه العامة للاستثما
|
| Country: | Kuwait
|
| Description: | Sovereign Wealth Fund
|
| Chairman: | Mustafa al-Shamali
|
| CEO: | Bader M. Al Sa'ad
|
| Based in: | Kuwait City
|
| Inception: | 1953
|
| Origin: | Oil
|
| Assets: | $261 billion
|
| Website: | http://www.kia.gov.kw/
|
| Reports | Sovereign Wealth Funds Contact and Information Report |
Kuwait Investment Authority (KIA) is the oldest Sovereign Wealth Fund (SWF). It was formed in 1953 with funds from its oil sector and since then it has amassed $250 billion in assets. It is the 3rd largest SWF. Kuwait annually transfers 10% of its oil revenue into the Reserve for Future Generations. KIA has responsibility for this reserve. Most of the KIA's activity is done out of the London's office of the KIA.
According to a press account, the KIA made $30 billion in international investments 2008 and 2009.[1]
There's speculation that Kuwait might increase the amount of oil revenue that is put in the Reserve for Future Generations from 10% to 25%.[2]
Contents |
Board of Directors
KIA’s Board of Directors comprises of 4 ex-officio members and an additional 5 members who are appointed by the Council of Ministers and who come from the private sector.
| Mustafa Jassem Al-Shimali | Chairman | Minister of Finance |
| Sheihk Salim Abd Al-Aziz Al-Sabah | Board Member | Governor of the Central Bank of Kuwait |
| Khalifa Musaad Hamada | Board Member | Undersecretary, Ministry of Finance |
| Ahmad Abdullah Al-Ahmad Al-Sabah | Board Member | Minister of Oil |
| Abdulla Saad Al-Humaidhi | Private sector Board member | |
| Abdullatif Yousif Al-Hamad | Private sector Board member | |
| Hilal Mishary Al-Mutairi | Private sector Board member | |
| Dr. Abdul Muhsin Mudaaj Al-Mudaaj | Private sector Board member |
Board Committees
The Board has two committees, both of which yield a fair amount of power within the KIA.
Board Audit Committee
Two Private sector members are appointed along with the Minister of Finance who is the chairman of the committee. The Managing Director may observe but not involved with decisions. Chaired by the Minister of Finance.
Executive Committee
The Executive Committee is comprised of five Board members. Three of whom must be private sector appointees. The Chairman of the Executive Committee is the Managing Director. The primary role of the Executive Committee is to assist the Board of Directors in setting strategic goals and objectives of the KIA.
Senior Management
| Bader Al Sa'ad | Managing Director |
| Ahmad M A Bastaki | Executive Director |
| Farouk A Bastaki | Executive Director, Alternative Investment |
| Fahed Al Salem | Executive Director, Strategy and Planning |
| Saleh Y Al Sagoubi | Executive Director, Marketable Securities |
| Othman I Al Issa | Executive Director, Operations and Administration |
| Assi Al Harshani | Executive Director, Training |
| Osama A Al Ayoub | Head of Private Equity Investments |
| Ahmad Al Bader | Head of Real Estate Investments |
| Saleh Al Muraiki | Head of Hedge Funds Investments |
| Eid A. Al-Rasheedi | KIO President |
| Abdul Aziz Al-Bader | KIO Executive Vice President |
| Bader Al-Ajeel | CEO for General Reserves |
| Waleed Al-Roudhan | Shareholding Director |
| Mahmoud Al Kanderi | Director of the legal and compliance department |
The KIA employees roughly more then 500 people, mostly based in London Office but some in Kuwait. About 80% of the staff are Kuwaiti.
Kuwait Investment Office
Kuwait Investment Office is located in London, UK. They are tasked to managing most of the assets of the KIA. They have more then then 300 staff, mostly made up of Kuwaitis but there some non-Kuwaiti nationals. The President is Eid A. Al-Rasheedi and the Vice President is Abdul Aziz Al-Bader.
- Equities Group
- Equities (Europe)
- Equities (America)
- Equities (Asia Pacific)
- Fixed Income Group
- Private Equity and Property
- Treasury
- Middle Office (Management office)
- Administration
- Finance
- Human Resources
- Information Services
- Internal Audit
- Operations
Investments
According to press accounts, the KIA has over $1.7 billion invested in Turkey.
Investments in Kuwaiti Companies
In 1982, Kuwait suffered a major collapse in its stock market. As a result, the KIA invested in all of Kuwait's companies.
Annual Returns
| 2007 | 13.3% |
| 2006 | 15.8% |
| 2005 | 11% |
Future Investments
Bader Al Sa'ad in a March 2008 interview with The Washington Post, said that Vietnam was a very likely target for the KIA. He also said that Africa countries will be a likely investment in two to three years.
2008-2009 Economic Stimulus
Gulf Bank KSC, Kuwait’s second-largest lender, suffered losses in the range of KD 375 million as a result of the 2008 global financial crisis. As part of the government’s response, it was announced in November 2008 that the Kuwait Investment Authority would “cover the increase in the number of shares in which no subscription is made by the bank’s shareholders.” The sale was completed on January 26, 2009, and the KIA picked up a 18% stake for $420 million.[3]
The government of Kuwait also asked the KIA to set up a long-term fund to invest in the Kuwait Stock Exchange in order to shore up the local bourse.[4]
Old investments
Autobar · Citigroup · Holiday Inn Crown Plaza hotel
Timeline
History of the KIO
According to the KIA website.
| Date | Event |
|---|---|
| 1950 | Although the Kuwait Investment Office celebrated its 50th anniversary in the City of London, it owes its existence to SheikhAbdullah Al-Salem Al-Sabah, the ruler of Kuwait from 1950-1965, who decided that the oil revenue could be used for the people of Kuwait. |
| 1953 | The Kuwait Investment Board was established in 1953 with the aim of investing the surplus oil revenue in order to provide a fund for the future and reduce its reliance on its single finite resource. |
| 1961 | Sheikh Abdullah steered his country through independence on 19th June 1961 and the funds built up enabled the creation of the welfare state from the oil revenues and the set up of new industries in Kuwait to develop the narrow economic base of Kuwait. The current Amir, Sheikh Jaber Al-Ahmad Al-Jaber Al-Sabah, as the Minister of Finance, established the basic investment principles for the fund, many of which are still in place. |
| 1965 | In 1965, the KIO replaced the Kuwait Investment Board with a total of 11 staff. In response to the upheavals in the world markets in the early 1970s, the KIO started to diversify its assets, and major portfolios were set up and substantial investments made. |
| 1974 | In 1974, it was decided that the KIO should adopt a long term view, acquired St Martins Property Corporation and attracted publicity for the first time. The Office, with its 24 staff moved into its current location in 1975 – St Vedast House. |
| 1976 | In 1976, the Emir created the Reserve Fund for Future Generations, which was allocated 10% of State revenues annually. The Office continued to manage the growing investments through the late 1970’s and early 1980’s and was often the subject of press speculation on the extent of the funds under management. |
| 1983 | The KIO acquired Autobar in 1983, one of the largest hot and cold beverage and food vending business in Europe that operate in the pan European market in vending and food services, distribution services and packaging/disposables. |
| 1984 | In 1984 the responsibility for the Reserve Funds was transferred to the Kuwait Investment Authority. Its purpose was to oversee the investment and management of the General Reserve Fund, the Reserve Fund for Future Generations and any other funds entrusted to it by the Minister of Finance. |
| 1986 | In 1986 statistics indicated that government revenue from investments exceeded revenue from oil. |
| 1990 | In August 1990, Iraq invaded Kuwait and the assets of Kuwait were frozen to protect it. During this time, KIO acted as a focus and a central bank for Kuwait during the occupation and organized the transfer of funds throughout the world, and to the exiled Kuwaiti government in Saudi Arabia. Kuwait City was liberated on 26th February 1991. The KIO played a significant role in releasing funds for reconstruction. |
| 1992 | A new management structure for the office was set up in 1992. |
| 2003 | 2003 marked the 50th Anniversary of the KIO investing on behalf of the State of Kuwait. |
| 2004 | The KIO sold Autobar, one of its wholly owned companies, and its holdings in Guoco, in 2004. |
Offices
Kuwait
Address : Ministries Complex, AlMurqab, Kuwait City, Kuwait
Postal Address : P.O. Box: 64, Safat, Z. Code: 13001, Kuwait
Telephone : +(965)2485600
Fax : +(965)2454059
Email : information@kia.gov.kw
Working Days : Sunday to Thursday
Working Hours : 7:00 A.M. to 3:00 P.M. Kuwait Time (+3GMT)
London
Kuwait Investment Office
ST. Vedast House
150 Cheapside
LONDON, EC2V 6LP
Telephone: 0207 6068 080
Related
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