Kuwait is set to establish a new sovereign fund named Ciyada, with the aim of developing mega projects and boosting the local economy. The government plans to attract funds from foreign investors and the private sector to support the proposed fund, Reuters reported.
The Ministry of Finance and the Kuwait Investment Authority (KIA) have been assigned the task of studying the plans for Ciyada, which means "sovereign" in Arabic. While specific project details and the fund's size have not been disclosed, it is expected to have a significant impact on Kuwait's economic growth and diversification efforts.
The KIA, which already manages over $800bn in assets, oversees the Kuwait Investment Office, responsible for managing the General Reserve Fund (GRF) and the Future Generations Fund (FGF). The GRF serves as the government's main treasury, while the FGF focuses on investing state revenue abroad.
The Ciyada Development Fund will play a crucial role in spearheading domestic investments aimed at fueling economic development and diversifying Kuwait's economy. The fund is expected to facilitate strategic planning and the implementation of major development projects across various fields, promoting transformation and progress.
Kuwait's move to establish Ciyada follows the examples set by other countries in the region. Abu Dhabi created Mubadala Development Co in 2002 to diversify its economy and accelerate development. In 2016, Mubadala merged with the International Petroleum Investment Co to form Mubadala Investment Co. Saudi Arabia's Public Investment Fund also plays a vital role in Prince Mohammed Bin Salman's Vision 2030, a comprehensive plan aimed at reducing the country's reliance on oil revenues.
The establishment of Ciyada reflects Kuwait's commitment to advancing its economy and attracting foreign investments. By channeling funds into mega projects and promoting economic diversification, the country aims to create new opportunities, boost growth, and enhance its standing in the global economy.
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