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Islamic Finance

Kuwait's wealth fund to open Saudi office

Kuwait’s sovereign wealth fund will open an office in Saudi Arabia to cement ties between the two GCC states. 

Kuwait Investment Authority’s board has decided to open a representative office in the kingdom, to strengthen “economic and investment ties“ between the two OPEC states, Kuwait’s official news agency KUNA reported.

Dr. Anwar Al-Mudhaf, chairman of the wealth fund and Kuwait’s finance minister said that Saudi Arabia is witnessing great economic development and growth that has led to the creation of a rich investment environment, attracting global attention. 

The kingdom has a “prominent and influential role in OPEC and is witnessing a remarkable increase in its economic and investment importance and its increasing role in international economic decision-making.”

The finance minister added that wealth fund will be able to explore and capture investment opportunities through its rep office. 

The announcement comes after asset management firm Edmond de Rothschild announced earlier this month that it plans to establish a presence in the kingdom.

The European financial advisory firm aims to establish a new infrastructure debt fund platform in partnership with SNB Capital to finance infrastructure projects across Saudi Arabia.

Saudi reported a budget deficit of 12.4 billion Saudi riyals ($3.3 billion) in Q1 2024, while the deficit for the entire fiscal year is expected to total 79 billion riyals, analogous to 1.9% of the kingdom’s GDP. 

According to data released by the Saudi ministry of finance, total expenditures are projected to be around 1.25 trillion Saudi riyals in FY 2024 and rise to 1.36 trillion Saudi riyals in FY 2026.