Kuwait plans to launch a new sovereign investment vehicle to invest in the local market and boost economic growth, according to the government’s latest work program.
The Ciyada Development Fund, as the new vehicle is called, “aims at accelerating growth of the Kuwaiti economy and improving quality of life, and enhancing advancement in different fields of development, through strategic planning and effective execution of mega development projects,” according to the program, officially released on Sunday.
The new vehicle is in addition to the country’s $700 billion sovereign wealth fund, a savings pot for life after oil, known as the Future Generations Fund, which is managed by the Kuwait Investment Authority and also invests abroad. The KIA also manages the General Reserve Fund, or treasury.
Ciyada will work in partnership with the local and international private sector, according to the program. The government said the new fund would operate “within the framework of good governance and transparency to achieve progress and prosperity.” This is in contrast to the FGF, which doesn’t publicly report its performance.
A feasibility study for Ciyada, which will have a different mandate to the FGF, will be concluded within a year.
The government’s work program is issued with the formation of every new cabinet.
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