Case study Analysis The strategy of Kuwait Investment Authority a Sovereign Wealth Fund for Future Generations

January 2017 | 4 pages | ID: C4AE6B3CA99EN
Sadia Saeed

Abstracts

Sovereign Wealth Fund is a global monetary funding institute that is a form of the investment fund where various countries of the world involved along with the Middle Eastern countries like Kuwait, UAE etc. Kuwait Investment Authority is autonomous institute and old SWF administered by the Kuwaiti government for managing the general reserve funds, assets of the future generation funds and other funds of the ministries. The purpose behind the Kuwait Investment Authority is to attain the long term investment other than the oil reserves that will provide the bright future to the future generation of the Kuwait. The main issue discussed in this case is the need of altering the scope of the Kuwait Investment Authority and to make it spread all over the world and also to make investment not just in well developed countries but also in developing countries of the world so that to reduce mainly their dependency on the oil reserves earnings. The board of Kuwait Investment Authority has changed its scope and makes investment in various countries as in Russia, Asian zone, Turkey etc and as a result investment enhances and financial results were just awesome. For the purpose of managing funds with the Sovereign Wealth Fund, Kuwait Investment Authority turn to be a company and become a stakeholder of the Sovereign Wealth Fund and this results in several issues that the Kuwait Investment Authority is facing currently. This is the background of the case. So in this analysis we will divide it into various sections as in first section we will identify the major and minor issues that results in the expansionary strategy of the Kuwait Investment Authority and the major issue is the transparency issue, risk of financial protectionism and the corporate governance issue at Sovereign Wealth Fund and we will give several alternative solution to these issues in the third section of the case and finally the conclusion section will be included. Cont... (1000 words of this report)

Contents

Introduction to case
Problems identification
Alternative solutions
Best Alternative Solution
Conclusion
References