According to the report, Kuwait's fiscal deficit peaked at 17.5 percent of GDP in 2016-17 fiscal year, a huge decline from a 20-percent surplus in 2013-14. The Kuwait Investment Authority (KIA) is Kuwait's sovereign wealth fund, managing body, specializing in local and foreign investment. 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. 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 financial positions of the underlying funds have diverged sharply," Thaddeus Best, analyst at Moody's, said in the report. The government attempted to relieve pressure on the GRF in the early years of the oil price shock by issuing domestic and international debts. 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. Combined with large fiscal deficits, such a scenario could lead to a rapid increase in general government debt and an increase in debt-servicing costs from the budget. 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. The problem is Kuwait has no legal framework to deficit-spend beyond its current limit of USD 33 billion. Assets of the Kuwait Investment Authority (KIA), the oldest sovereign wealth fund (SWF) in the world, have continued to grow despite the oil price shocks, according to Moody’s Investors Service. Three leading GCC SWFs, Kuwait Investment Authority (KIA, whose foreign assets under management (AUM) is estimated at more than $560 billion in … Funds owned by oil-rich countries such as Abu Dhabi, Kuwait and Oman were among the top sellers as international crude oil prices crashed to six–year lows. Kuwait's sovereign wealth fund assets grow despite oil price volatility . However, the parliament blocked the government's attempts to increase the debt ceiling to 25 billion Kuwaiti dinars (82.22 billion U.S. dollars) and lengthen tenors up to 30 years in 2017 from 10 billion Kuwaiti dinars and 10 years respectively. – 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. 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. It is the 5th largest sovereign wealth fund in the world with assets exceeding $592 billion. The Kuwait Investment Authority (or KIA) was set up by Sheikh Abdullah Al-Salem in 1953 to invest both internally and externally. SWF assets in Kuwait, Abu Dhabi and Qatar would remain sizeable in the medium term even under adverse oil market scenarios, Fitch Ratings said Various currency notes from Saudi, UAE, Kuwait and Oman. Current Assets for KIA is $533,650,000,000 and SWFI has 343 periods of historical assets, 9 subsidiaries, 781 transactions, 20 Opportunities/RFPs, 145 personal contacts available for CSV Export. 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The Kuwait fund, which started as a Bank of England account dedicated to receiving oil money in 1953, now has assets of $534 billion, according to the Sovereign Wealth Fund … 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. Public Investment Fund, Saudi Arabia – $320 billion. 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. “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.”. The fund is one of two run by the Kuwait Investment Authority, Kuwait City, which manages a total of about $550 billion in assets. The growth has come despite a reduction in the ratio of mandatory funds transfer from previous 25 per cent, Moody’s which rates Kuwait at Aa2 with a stable outlook, said. A … The Kuwait Investment Authority is Kuwait's sovereign wealth fund, managing body, specializing in local and foreign investment. By Seban Scaria, ZAWYA 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. China Investment Corporation—China. “Although unlikely, a situation where the GRF is depleted before no alternative funding sources have been arranged would be very credit negative,” Moody’s said. Depletion of the GRF would depend on if and when parliament will pass another debt law, he stressed, adding that the government will need to finance deficits around 9 percent of GDP over the next few years. 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. 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. Future Generations Fund (FGF), one of two funds managed by the KIA, which receives mandatory transfers of funds equivalent to 10 per cent of the government's revenue has continued to grow with solid profitability that has seen it rise to about 309 per cent of Kuwait's gross domestic product, Moody’s said in a report. 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Established in 1971, the role of the PIF has … Investment Corporation of Dubai $301,527,000,000 Sovereign Wealth Fund Middle East … The Kuwait Investment Authority ... which the Sovereign Wealth Fund Institute estimates manage $592 billion of assets, does not publicly disclose its investments or detailed strategy. “We expect it [FGF] will continue to grow as long as the fund remains profitable and the mandatory transfer remains in place,” it noted in the report. 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. 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. Related Fitch Ratings Content: Sovereign Wealth Funds in the GCC Fitch Ratings-Hong Kong-17 December 2020: The sovereign wealth funds (SWFs) of Abu Dhabi, Kuwait and Qatar have underpinned the resilience of their sovereign ratings despite lower oil prices and the coronavirus shock, Fitch Ratings says. Kuwait Sovereign Wealth Fund Kuwait was the pioneer in the Middle East in diversifying its earnings away from oil exports. Sovereign wealth funds sell chunk of Indian stocks; oil-rich countries among top sellers 22 Oct, 2015, 05.26 AM IST. “The eventual depletion of the GRF could have several implications for sovereign creditworthiness,” Moody’s said. In 1982, KIA was established to take over the responsibility of managing the assets of Kuwait from the Ministry of Finance. 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