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The term of the board overseeing the fund expired two months ago
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This dispute is also delaying investment and economic reforms
Kuwait’s has a mega sovereign fund worth some $600 billion, but lately it has been losing its shine as it has become a victim of vicious political confrontation between members of parliament. The term of the board’s tenure expired two months ago. A new term has yet to be approved as political differences extend to a disagreement over the make-up of the nine-member board, reported Arab News.
The Future Generations Fund is run by the Kuwait Investment Authority KIA and designed as a savings pot for life after oil, and is largely unbreakable without parliament’s approval. KIA is in a state of uncertainty and policy making is paralyzed, which prompted ratings agencies to warn of downgrades, leaving the government scrambling for cash.
The deep confrontation between members of the only elected parliament in the Gulf and a government whose leader is appointed by the ruling Emir has prevented the state from borrowing and left it with barely enough cash to pay public sector salaries. This dispute is also delaying investment and economic reforms, including welfare reform, which the government said is needed to end eight consecutive years of budget deficits.