The Kuwaiti "Public Investment Authority" fund has reportedly secured the third position in terms of total asset value among the largest sovereign wealth funds globally. The total assets of the "Future Generation Fund," managed by the Public Investment Authority, have reached a record level of approximately $700 billion, according to a source familiar with the matter who requested anonymity due to the confidential nature of the information. The source noted that the fund's assets were estimated at about $670 billion three months ago, at the end of the fiscal year on March 31.
The Kuwaiti sovereign fund serves as a national savings fund established to prepare the country for a post-oil era, with more than half of its investments concentrated in the United States, where stock markets have experienced record highs. The "S&P 500" index rose by over 8% in the last quarter, marking the fifth consecutive quarterly increase, while the global "MSCI" index increased by more than 7%.
The world's oldest sovereign wealth fund, established before the formation of modern Kuwait, does not officially disclose its asset value. Additionally, officials from the Public Investment Authority could not be reached for comment.
This surge reflects the total value of assets managed by the Public Investment Authority surpassing those of the "Abu Dhabi Investment Authority," which oversees the emirate's fund designated to cover spending during downturns, estimated at just over $649 billion, according to the SWF Institute.
These strong gains in Kuwait's overseas investments contrast with the severe financial challenges facing the country domestically, exacerbated by the conflict between the Gulf region's only elected parliament members and the government, which is appointed by the Emir.
Earlier this year, the Kuwaiti government presented a bill to Parliament proposing to withdraw 5 billion dinars ($16.6 billion) annually from the "Future Generation Fund" to help finance the growing budget deficit.
The source indicated that the fund increased its holdings in U.S. assets after global markets experienced sharp declines last year due to the pandemic's widespread effects, pointing out the concentration of the fund's investments in the most impacted American market indexes at that time.
On Thursday, Kuwaiti Finance Minister Khalifa Hamada stated that the fund achieved gains of 33% during the last fiscal year, and the growth of the fund's assets over the past five years has exceeded the country's total oil revenue during the same period, which amounted to 66.7 billion dinars.
The Kuwaiti sovereign wealth fund holds stakes in ports, airports, and energy distribution networks worldwide. The Norwegian Pension Fund remains the largest sovereign wealth fund globally, with total assets of $1.3 trillion, according to SWF Institute rankings, while the "China Investment Corporation" ranks second with total assets valued at $1 trillion.
