The discovery of oil in the early 1950s and its export constituted an important turning point in Kuwait’s economy leading to the financial surpluses, and making it necessary to find means for their proper investment and growth. In 1960, the Government created the General Reserve, which was financed from the budget surplus. In the 1970s, the Future Generations Fund was formed. It consisted of 50 per cent of the General Reserve at that time, 10 per cent of the annual budgetary revenues of the State, plus the profit on these assets.

The significant increase in the amount of funds allocated for investment and the widening scope of investment venues lead to the next step of improving the quality of investment operations and processes. Kuwait Investment Authority (KIA) was, thus, formed to take over from the Ministry of Finance in managing and developing the financial reserves of the State. It was established as an independent legal identity, by law 47/1982 to operate under the auspices of the Ministry of Finance. On behalf of the State of Kuwait, KIA is authorised to develop and manage the General Reserve, and the assets of the Future Generations Fund as well as any other funds entrusted to it by the Minister for Finance, who heads KIA’s Board of Directors.

Its membership consists of the Minister for Oil, the Governor of the Central Bank of Kuwait, the Under Secretary of the Ministry of Finance, on an ex-office capacity, and five other Kuwaitis who are experienced in the field of finance and investment. These members are appointed, by decree, for tenures of four years each, three of whom should not occupy any other public office. The Board chooses from within its members a Managing Director to assume the executive management of the KIA.

The Board of Directors of KIA is responsible for supervising the KIA's affairs. It has the jurisdiction to make decisions as it sees fit to fulfill its aims and objectives.

Its main task is to draw a plan for the general policy of KIA and to supervise its implementation. It draws up and sets all regulations and procedures (administrative and financial) which are necessary to the operation of KIA. The Board reviews and decides on the annual budget of KIA and its financial accounts before they are submitted to the Council of Ministers.

The objectives of KIA are numerous and vital to the economic well being of the country. It develops and manages the General Reserve and the Future Generations Fund, in the most appropriate and feasible investment venues and products, with a mission to enhance the State's economic and fiscal policies and strategies. On the other hand, it complements these investments with the economic base in Kuwait so as to serve and develop the national economic interests.

KIA encourages the private sector by participating in the financing of the establishment of companies and projects that have possible economic returns. It also helps in developing the role of local financial companies by giving them the opportunity to manage some of its investments locally and abroad. KIA also provides liquidity to the State’s Treasury when needed. Some of the noteworthy projects and local companies where KIA has invested include Gulf Cable, Electrical Industry Company, Mobile Telephone Systems Company and Kuwait Investment Company.

For more information, visit www.kia.gov.kw