Kuwait’s Allocation to Future Fund Won’t Affect Capital Spending
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. (BP/)
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