Kuwait is considering launching a new sovereign fund focused on investing in the local market and promoting economic growth, according to the government's recently unveiled government action programme.
According to the program, which was officially released on Sunday, the new development fund, which will be called Siyadah, will aim to accelerate the growth of the Kuwaiti economy, improve the quality of life, and promote progress in various fields of development, through strategic planning and effective implementation of mega development projects.
This new fund comes in addition to the state’s $700 billion sovereign wealth fund, a lifetime savings fund for post-oil investments, known as the Future Generations Fund, which is managed by the Kuwait Investment Authority and invests outside the country. The Authority also manages the General Reserve Fund, which acts as a trustee of the state's public treasury.
Transparency in declaring sovereignty data
According to the program, Soada will work in partnership with the local and international private sector, and the government has made it clear that the new fund will work within the framework of good governance and transparency to achieve progress and prosperity. This is contrary to the strategy of the Future Generations Fund, which does not publicly disclose its performance data.
Sovereignty's feasibility study is due to be completed within a year, and it will be under a different department than that of the Future Generations Fund. It should be noted that the government action program in the country is issued when a new government is formed.
