The first sovereign wealth fund was the Kuwait Investment Authority, established in 1953 to invest excess oil revenues. Kuwait's sovereign wealth fund assets grow despite oil price volatility . The oil price shock has led the country's government to record sustained fiscal deficits since 2015, which has forced it to draw on the reserves of one of its sovereign wealth fund's assets . According to the Sovereign Wealth Fund Institute, the combined assets of top 90 SWFs is now nearly exceeding US$8 trillion, more than double the size of what it was in 2007. – Pocketful of Dirhams, Noor Sweid on how to pitch start-up investors in a challenging time, How to apply for a 10-year golden visa in the UAE - Pocketful of Dirhams, What changes to UAE company foreign ownership rules mean for you, How the new UAE law on wills and inheritance affects you – Pocketful of Dirhams, Listen: Huawei CTO says 'there's no back door' on questions of 5G security. KUWAIT CITY, June 5 (Xinhua) -- Kuwait's sovereign wealth fund assets have continued to increase despite the oil price shock, Moody's Investors Service said in a recent report. Relying on the GRF has led to an accelerated drawdown of the fund's assets to an estimated 23bn dinars as of March 2019, from 26.4bn dinars from a year earlier, Moody’s explained. The Kuwait Investment Authority (KIA) is Kuwait's sovereign wealth fund, managing body, specializing in local and foreign investment. ', Coinbase suspends trading of XRP cryptocurrency amid US probe into Ripple, Counting down 10 big business moments from 2020: Business Extra, How to get your savings on track for a bumper 2021 – Pocketful of Dirhams, Feryal Ahmadi of DMCC on how global trade will be remapped in the 2020s, What’s in store for investors in 2021?– Pocketful of Dirhams, ‘Adapt or die’: the UN’s corporate sustainability pioneer shares lessons of 2020, What’s next for the UK property market? The Kuwait Investment Authority is Kuwait's sovereign wealth fund, managing body, specializing in local and foreign investment. However, as only around 65 per cent of GRF assets are liquid, the fund would only be able to finance around three years’ worth of deficits and run out by the end of fiscal year 2021-22. The Kuwait Investment Authority (KIA) is the oldest sovereign wealth fund in the world. In 1982, KIA was established to take over the responsibility of managing the assets of Kuwait from the Ministry of Finance. He is a founding member of the International Forum of Sovereign Wealth Funds (IFSWF) and was the Chairman and Deputy Chairman from its inception in 2009 until October 2015. For example, under the baseline scenario, which assumes the parliament approves the debt law by 2020, a depleted GRF implies that the government will rely much more on debt issuance for funding, he added. "We expect FGF to continue to grow as long as the fund remains profitable and the mandatory transfer remains in place," he pointed out. 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Moody's affirms Kuwait's AA2 rating while keeping outlook stable, Kuwait's economy set to accelerate after returning to growth in 2018, IMF says. In fact, Kuwait’s sovereign wealth fund has been witnessing continuous growth in the years following the 2008 financial crisis, as per statements issued by officials of the Kuwait Sovereign Fund. These funds are big enough to affect overall markets. The oil price shock has led the country's government to record sustained fiscal deficits since 2015, which has forced it to draw on the reserves of one of its sovereign wealth fund's assets. The amount of money held by the largest sovereign wealth funds has more than doubled since September 2007, from $3.265 trillion to $8.1 trillion in 2019. The Kuwait Investment Authority holds assets of $533 billion, according to the Las Vegas-based Sovereign Wealth Fund Institute, making it the world's fourth-largest such fund. It is the 5th largest sovereign wealth fund in the world with assets exceeding $592 billion. "The financial positions of the underlying funds have diverged sharply," Thaddeus Best, analyst at Moody's, said in the report. In Abu Dhabi, the UAE, Kuwait and Qatar, SWF assets provide two to six notches of uplift to sovereign ratings by boosting sovereign net external asset positions, fiscal balances, and overall financing flexibility. Set up in 2007 with $200 billion in capital and a mandate to … It is the 5th largest sovereign wealth fund in the world with assets exceeding $592 billion. "As a result, without a new debt law in place, the liquid portion of GRF assets could be depleted by the end of the fiscal year of 2021-22," Best noted, which will have some implications for the sovereign credit worthiness. Sovereign wealth funds are state-owned and are composed of a wide array of financial assets including stocks, bonds, real estate, precious metals and other financial instruments. In total, £500m of new shares have been allotted to sovereign wealth investors, meaning the two sovereign funds could acquire stakes worth £250m each, the sources added. “Under our baseline scenario, which assumes parliament approves the debt law by 2020 and FGF assets remain ring-fenced, a depleted GRF implies that the government will rely much more on debt issuance for funding.”. Kuwait’s $124 billion pension fund is reducing its allocation to stocks in favor of alternatives like infrastructure and private equity, as it seeks to boost returns and cut a massive cash pile. It is a member of the International Forum of Sovereign Wealth Funds and has signed up to the Santiago Principles on best practice in managing sovereign wealth funds. 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