Kuwait’s decision to raise revenue allocations to its Future Generations Fund this year won’t be at the expense of capital spending, the state-run news agency KUNA reported, citing Finance Minister Nayef Al-Hajraf.
The decision to transfer 25 percent of revenue to the fund, up from an annual 10 percent, in the fiscal year that began April 1 is to “encourage saving,” the minister said, according to KUNA. The government aims to continue allocating 25 percent of revenue to the fund in future fiscal years, Al-Hajraf said.
The fund, created in 1976, is managed by the Kuwait Investment Authority, the country’s sovereign-wealth fund that also manages Kuwait’s General Reserve Fund. The KIA invests in local, Arab and international markets.
Kuwait, the third-biggest producer in the Organization of Petroleum Exporting Countries, is estimated to own about $300 billion of assets abroad through its sovereign-wealth fund, which holds stakes in Daimler AG and BP Plc.