The fund will have a different mandate from the Future Generations Fund and operate with transparency and good governance
Kuwait is set to launch a new sovereign investment vehicle called the Ciyada Development Fund, as part of its efforts to bolster the local market and stimulate economic growth, according to a report by Bloomberg.
The government's latest work program, released on Sunday, outlined the objectives of the new fund. According to the program, the Ciyada Development Fund aims to accelerate the growth of the Kuwaiti economy, improve the quality of life for citizens, and promote advancements in various fields of development through strategic planning and effective execution of mega development projects.
The new fund will complement Kuwait's existing $700 billion Sovereign Wealth Fund, known as the Future Generations Fund, which focuses on investments abroad and acts as a saving pot for a post-oil era. Managed by the Kuwait Investment Authority (KIA), the Future Generations Fund is also responsible for overseeing the General Reserve Fund, or treasury.
The government's work program highlighted that Ciyada will collaborate with both local and international private sector entities. The program emphasized that the new fund will operate within a framework of good governance and transparency, with the goal of achieving progress and prosperity. This stands in contrast to the Future Generations Fund, which does not publicly report its performance.
A feasibility study for the Ciyada Development Fund, which has a distinct mandate from the Future Generations Fund, is expected to be completed within a year. The government's work program is released alongside the formation of each new cabinet, the report said.