Tuesday, October 18, 2011

Kuwait's sovereign wealth fund eyes greater China investment

Kuwait: Kuwait Investment Authority (KIA), the state's sovereign wealth fund, plans to boost its investments in China after opening an office in the world's second largest economy, a KIA official told the state news agency.

"China has huge potential, which presents opportunities that KIA can seize on the back of China's steady economic growth," Fahd Al Shatti, the head of KIA's newly opened office in China, was quoted as saying by Kuna yesterday.

Kuwait, the world's sixth largest crude exporter, is one of the richest countries globally with its sovereign wealth fund, KIA, managing assets in excess of $290 billion (Dh1.06 trillion).

It owns stakes in companies like Citigroup, Daimler AG and was a cornerstone investor in the initial public offerings of Agricultural Bank of China and insurer AIA Group Ltd.

While Gulf funds have historically preferred to invest in Europe, many may turn their gaze eastward as growth slows.

But analysts say that investment into Asia is tricky given regulatory constraints and increased competition from local funds like Temasek and GIC.

Source: http://gulfnews.com

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