Kuwait SE: The Panic Continues September 16, 2008
Posted by mylastresort in analysis.Tags: bahrain, Bankruptcy, Doha, Dubai Financial Markets, Great Depression, KIA, KSE, Kuwait Investment Authority, Kuwait Stock Exchange, Lehman Brothers, qatar, Stock Market
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The Kuwaiti Stock Exchange (KSE) continued to suffer from panic selling reaching a limit low for the day. Nearly all the companies on the exchange reached their daily limits dropping the maximum (approx. 5%) in the session. News that the Kuwait Investment Authority (KIA) will be investing $1 billion is eagerly awaited by the market participants having suffered large losses in a short period. Losses were felt all across the globe on Monday, the day is being referred to as “Black Monday” once again following Lehman Brothers collapse.
The global markets have suffered the most massive losses ever before witnessed in the past century. The US economy is being compared to the Great Depression of the 1920’s while the European union has not seen such catastrophe in its short history to compare it to. While in the Gulf the markets continued their decline since the beginning of the month.
Here is a summary of closing indexes:
- Kuwait Stock Exchange -3.80%
- Abu Dhabi Index -4.35%
- Dubai Financial Markets -1.71% (had reached -9.5% in the day)
- Doha Stock Market -7.06%
- UK FTSE 100 -3.92%
- Dow Jones Industrial Average (DJIA) -4.42%
- S & P 500 -4.71%
Bahrain and Kuwait tied for first place June 9, 2008
Posted by mylastresort in analysis, bahrain, sovereign funds.Tags: investment, Kuwait Investment Authority, Bahrain's Mumtalakat Holding, Sovereign Wealth Fund Institute
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According to research by the Sovereign Wealth Fund Institute the Bahraini and Kuwaiti sovereign wealth funds are the most transparent in the Gulf region. Bahrain’s Mumtalakat Holding and the Kuwait Investment Authority share first place in the rankings of the top Gulf-based wealth funds, based on their transparency to investors, scoring six out of 10, putting them on a par with funds such as the Government of Singapore Investment Corporation.
KIA investing more in US financials June 8, 2008
Posted by mylastresort in analysis, sovereign funds.Tags: subprime, investment, kuwait, Citigroup, Kuwait Investment Authority, KIA, Merrill Lynch, The Times Newspaper, Lehman Brothers
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Kuwait Investment Authority (KIA) has announced that it intends on investing greater amounts into the US financial sector. Financial institutions such as Merrill Lynch and Citigroup are profiting from the ‘fear that banks are short of cash’ despite collectively (and publicly) raising nearly $300 billion worldwide recently.
Excerpt from The Times Newspaper, (June 5, 2008):
The Kuwaiti sovereign wealth fund’s continuing interest in Wall Street came as it emerged that Lehman Brothers had contacted overseas investors seeking cash to repair the damage to its balance sheet from an estimated $4 billion of mortgage-related losses this year. Lehman is also preparing a rights issue as an alternative source of cash.
- Source: Times Newspapers Ltd, 2008, (June 5, 2008)
The KIA warns Germany May 22, 2008
Posted by mylastresort in analysis, sovereign funds.Tags: Bader al-Saad, Citigroup, Europe, Germany, Invesment, Kuwait Investment Authority, Merrill Lynch & Co, Power, Sovereign wealth fund, UBS AG
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The power held by the Kuwait Investment Authority is not one to be mishandled. Bader al-Saad, managing director, is really doing an impressive job and must commended. In a recent news report the KIA ‘warned’ Germany that it ‘may cut back’ its commitment to invest in Europes largest economy if the Berlin government regulates sovereign wealth funds. German politicians are fearful of the influence sovereign wealth funds can wield and their capacity to buy leading national companies or key national infrastructure.
“We still consider Germany an economic anchor in Europe, even in the world. We still like to invest in Germany. But in the future, any regulations on sovereign wealth funds in Germany could limit our engagement in your country… We are very surprised by the Germans fear of sovereign wealth funds. We have been in Germany for more than 45 years… We are very concerned”
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The German government plans to extend existing legislation that gives Berlin a veto on takeovers of defence firms to include other industries, though Steinbrueck has said Germany does not want to scare off sovereign wealth funds.
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Steinbrueck has previously described the German plans to defend domestic firms as modest compared to those of other countries, including Britain, France and the United States.
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Soveriegn Wealth Funds control over $2 trillion (roughly the size of Frances economy) and are forecast to grow rapidly to $12 trillion by 2015.
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In recent months, funds from Asia and the Middle East have injected money into major banks like Citigroup, Merrill Lynch & Co and UBS AG after they were hit by exposure to the US subprime crisis.
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The Kuwait Investment Authority control 7% of German Automaker Mercedes-Benz (Long-term)
KIA buys london ‘Landmark’ May 22, 2008
Posted by mylastresort in analysis.Tags: investment, Kuwait Investment Authority, KIA, Real Estate, GBP, St Martins, British Land, Nigel Brown, Sterling, Pounds, Willis Building
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The Kuwait Investment Authority (KIA) has just announced it has purchased British Land’s Willis Building for GBP 400million (Sterling Pounds). This is one of the largest property deals this year. The KIA bought the Foster & partners designed building through its property investment subsidiary – St Martins. In a statement by St Martens the company stated that this is one of a number of deals over the next two years.
“We have an appetite for landmark buildings and this was a rare opportunity to secure one of London’s finest”
-Nigel Brown, St Martins managing director
Signs that the commercial property market in England was declining was evident when British Land agreed to pay St Martins ‘a sweetner’ of GBP 60 milllion to secure the deal. The cash is equivalent to the rent-free period that insurance broker Willis had negotiated with British Land when it agreed to occupy the building.
Kuwait Investment Authority to enter China May 8, 2008
Posted by mylastresort in analysis, sovereign funds.Tags: Kuwait Investment Authority, KIA, Industrial and Commercial Bank of China, Sovereign fund, Bader al-Saad
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News sources are confirming that Kuwait Investment Authority (KIA) is considering investing into the booming China market. A delegation headed by KIA’s managing director, Bader al-Saad, are planning a visit late next week to discuss various investment opportunities with Chinese officials.
The KIA will be concentrating on the following sectors:
- Banking
- Industrial
- Agriculture
Previous investments commenced last year in the Industrial and Commercial Bank of China for $720 million have been very profitable for the sovereign fund.
KIA to increase islamic investments May 4, 2008
Posted by mylastresort in analysis, sovereign funds.Tags: investment, Islamic, Kuwait Investment Authority, KIA, Shariah, Compliance
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Kuwait Investment Authority (KIA) is planning to boost its shariah compliant investments. The KIA already abides by ‘moral’ investments and ethically does not invest in alcohol production or porography based companies.
“Returns from Islamic financial activities are currently very high due to the growth of the islamic banking industry and the issue of sukuks (Islamic bonds),”
- Bader al-Saad, Head of Kuwait Investment Authority
As of March 31, 2007 the KIA had $213 billion assets under management.
Kuwait Airways for sale April 29, 2008
Posted by mylastresort in analysis.Tags: IPO, Kuwait Investment Authority, Kuwait Airways, KIA, KAC, Sale, Private
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The government has begun the highly anticipated sales process for the loss-making Kuwait Airways Corporation (KAC). In January the government approved the plan to sell 40% of the carrier to the public, and 35% to a longterm investor within two years.
The cabinet has asked Kuwait Investment Authority (KIA) has been requested to set up an evaluation of the airlines by international consultancies as the primary objective in the selling process.
Quick Facts – Kuwait Investment Authority April 21, 2008
Posted by mylastresort in analysis, sovereign funds.Tags: investment, kuwait, Kuwait Investment Authority, US, KIA, Europe, Quick Facts
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Quick facts – Kuwait Investment Authority:
- Kuwait’s soverign wealth fund is known as the Kuwait Investment Authority (KIA)
- Manages the surplus wealth of the world’s seventh-biggest oil exporter
- Assets under managment: $213 billion (as of Mar 31st 2008)
- Invests between 76% and 86% of assets in United States & Europe
- Asian & Japanese investment make up 13% to 17% of total holdings
- Emerging markets comprise 4% to 6%
- Invests between 55% and 65% in total assets in Global equities
- Invests about 15% to 22% in Bonds
- Invests roughly 8% to 12% in Real Estate
- About 4% to 6% is invested in alternative investments
- 3% to 7% is held in cash
- Bought large portions Citigroup ($3 billion) and Merrill Lynch ($2 billion), 2008
… [KIA is] Interested in investing in financial services and real estate firms in the United States and Europe to benefit from lower asset prices… – Managing Director Bader al-Saad
Sovereign wealth funds code of conduct April 13, 2008
Posted by mylastresort in analysis, saudi arabia, sovereign funds.Tags: Abu Dhabi, Code of conduct, Fund, Hedge, Investments, kuwait, Kuwait Investment Authority, Sovereign wealth funds
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A new plan proposed by western countries to control sovereign wealth funds (SWF) has been called ‘unfair and will damage global capital flows’ by the Kuwait Investment Authority (KIA). The SWF’s are viewed as asserting political strength using financial means, especially in the case of the Gulf countries. The infamous view being portrayed of SWF’s is baseless and inaccurate. It is actually the exact opposite of those claims being sought by the western nations.
Some notes about the Gulf countries Soveriegn Wealth Funds
…SWF’s prefer not to be transparent in their dealings out of fear of internal corruption which is evident in all sectors and across the entire Gulf
…Gulf nations do not have enough skilled laborers in their own countries, to enact locals in the boards of foreign companies they acquire
…Have proven that they are investing in the companies long-term
…Do not have a hidden political agenda to control other nations since they [gulf] themselves failed in their own political arenas
…The fear of depleting oil reserves is the main factor of investing globally, thats it!
