Kuwait Investment Authority investments in Saudi Arabia exceeds $2 billion

Total investments of the Kuwait Investment Authority (KIA) in Saudi Arabia exceeded two billion dollars, distributed over several sectors between listed and unlisted shares and other investments, sources revealed on Sunday.

According to the Kuwaiti Al-Qabas newspaper, responsible sources said that the “KIA” completed the subscription to the Saudi Tadawul Holding Group, which was listed on the market about a week ago, after deeming that the company was a good investment opportunity.

About 30% of the shares of the Tadawul group had been offered for public subscription with up to 36 million shares, comprising 4 companies, namely Saudi Arabia Stock Exchange (Tadawul), Clearing House Company (Muqassa), Deposit Centre Company (Edaa), and New

(Wamid) Company.

The (KIA), which manages the third largest sovereign fund in the world, is studying many investment opportunities in Saudi Arabia to seize and invest in them during the coming period in various sectors, especially with the launch of the Kingdom’s Vision 2030, which was announced by the His Royal Highness Prince Mohammed bin Salman bin Abdulaziz, Crown Prince, Deputy Prime Minister and Minister of Defense.

The sources said that the (KIA) is working on approved investment bases in accordance with a dynamic asset allocation strategy in order to achieve high, long-term and risk-adjusted returns by investing in high-quality companies and projects, explaining that the (KIA)’s investments are spread in 250 economies around the world.

According to the vision of the new kingdom, many attractive investment opportunities have emerged, which cannot be overlooked, in addition to expectations about the growth of the Saudi economy significantly during the coming period, which pushes the need to be there to take advantage of the expected boom, pointing to the Saudi economy achieving the highest growth rate. For 9 years, the Saudi Ministry of Finance predicted that the Saudi economy would grow by 3.5 per cent in 2023.

The sources said that the (KIA) took the initiative some time ago to invest in the shares of Saudi Aramco, an investment that constituted a good opportunity and achieved many returns so far, indicating that the investment, whose value exceeded about $500 million, was based on many analytical studies and financial evaluation, which confirmed The feasibility of investing in it.

The sources pointed out that the main objective of the investments of the Future Generations Fund is to achieve returns in promising opportunities and at a level of risk commensurate with the size of the investment, pointing out that the subscription in Aramco constituted a good investment opportunity that would achieve good future results.

The investments of the Next Generations Fund are distributed to about 230 thousand companies in more than 125 economies around the world, between developed and emerging markets, which reveals a great diversity and a wide geographical spread. Through it, the (KIA) is keen to seize feasible investment opportunities and ensure achieving the best results available according to the lowest levels of risks.

Data comparing the performance of the largest sovereign funds in the world during the period from June to October 2021 showed the superiority of the (KIA) fund over its Norwegian counterpart in terms of asset growth, as the first achieved a growth of 159.2 billion dollars, while the assets of the second increased by 49.8 billion dollars, with Noting that the Norwegian fund is considered the largest in the world in terms of the value of assets with 1.33 trillion dollars, while the assets of the China Investment Company grew by 176.5 billion dollars to reach 1.22 trillion dollars and maintains its second position in the world.