Kuwait’s sovereign wealth fund plans to open office in Saudi Arabia
Saudi Arabia is witnessing a notable rise in its investment importance
Dubai: Kuwait’s sovereign wealth fund plans to establish an office in Saudi Arabia, as the country seeks support from its Gulf neighbors to bolster foreign investment in its mega-projects.
Anwar Al Mudhaf, chairman of the Kuwait investment authority and Kuwait’s finance minister, lauded Saudi Arabia as a strategic investment destination and a pivotal player in the global economy.
Al Mudhaf highlighted Saudi Arabia's increasing investment significance and its growing role in global economic decisions. This move follows a visit by a Saudi business delegation to Doha in May to promote investment in industry and mining, and the recent announcements by major investment banks, such as Edmond de Rothschild, about opening offices in Riyadh, according to Kuwait’s official news agency
Saudi Arabia’s Public Investment Fund (PIF) is exploring funding avenues to address gaps in its $1.25 trillion (Dh4.6 trillion) economic transformation programme.
The Saudi government faces budget deficits for the third consecutive year due to oil prices persistently below breakeven levels of around $96 per barrel (Dh352.6), while foreign direct investment remains well below the targeted $100 (Dh367) billion annually until 2030.
Ali Shihabi, a member of Neom’s advisory board, commented on X formerly known as Twitter, saying “foreign direct investment (FDI) from GCC sovereign wealth funds is anticipated to play an increasingly significant role in Saudi Arabia's economy moving forward”. Neom is an urban area being built in Tabuk, Saudi Arabia.