Kuwait-ALSHARQIYA July 5: The Kuwaiti sovereign fund achieved a record growth of about $700 billion, which qualifies it to become one of the three largest sovereign funds around the world in terms of assets, according to “Bloomberg” news agency, quoting an informed source, on Saturday.
According to what the agency quoted its source, who declined to be named, the fund's assets were estimated at about $670 billion, at the end of the fiscal year that elapsed on March 31.
Kuwait views the Future Generations Reserve Fund as a national project designed to prepare for life in the post-oil era.
According to the agency, more than half of the fund's investments were in the United States.
The Kuwait Sovereign Fund is considered the oldest sovereign fund in the world, and its history dates back to before the founding of the modern state of Kuwait, according to the agency.
Norway's sovereign fund is the largest in the world with $1.3 trillion in assets, followed by China's $1 trillion, according to the SWF Institute.
Kuwait had announced, at the beginning of July, that the fund's returns had grown by 33% during the last fiscal year.
According to the Kuwaiti Finance Minister, Khalifa Musaed Hamadeh, this rise is the best in the fund's history.
The ministry also pointed out that the growth in the fund "exceeded (..) in the past five years the total oil revenues for the same period."
She stressed that "the revenues of the Generation Fund are not included in the budget, but are reinvested."
Despite this, the ministry said that "the liquidity rate in the state treasury (the General Reserve Fund) is depleted as a result of the withdrawals that are made to cover state expenses."