Kuwait Plans $10 Billion Investment Fund With China
(Bloomberg) -- Kuwait is planning to create a $10 billion fund with China to invest in the two countries, according to people with knowledge of the matter.
The Gulf state is discussing the creation of a Kuwait-China Silk Road Fund that would invest in Kuwaiti projects related to the Silk City and islands development, according to the people. It could also be used for strategic investments in China and other areas under the Asian country's “One Belt, One Road” initiative, the people said, asking not to be identified because the information is private.
China and Kuwait would each be responsible for raising around $5 billion for the fund, the people said. The Asian country would also work with Chinese strategic partners to arrange debt financing for projects, which could give the fund an investment capacity of as much as $30 billion, they said.
Click here to read more about Kuwait's Silk City.
Under the proposal, the fund's Chinese backers could introduce strategic partners to work on its investment projects as contractors, according to the people. Deliberations about the fund are at an early stage, and details like the size and investment targets could change, the people said.
“Silk City and development of the islands is the signature project in the development plan for New Kuwait 2035,” said Khaled Mahdi, secretary general of Kuwait's Supreme Council for Planning and Development. “There are three prerequisites for the signature project to be realized: the special economic zone law, a private-sector finance model, and the master plan.” He declined to comment further.
China's finance ministry, foreign ministry and its top economic-planning body, the National Development and Reform Commission, didn't immediately reply to faxed queries.
Kuwait is developing its northern region as it seeks to boost non-oil revenue and transform itself into a regional business hub by 2035. The multibillion-dollar Silk City project, which has been planned for more than a decade, is part of this goal.
--With assistance from Dandan Li.
To contact the reporters on this story: Matthew Martin in Dubai at mmartin128@bloomberg.net;Fiona MacDonald in Kuwait at fmacdonald4@bloomberg.net;Vinicy Chan in Hong Kong at vchan91@bloomberg.net
To contact the editors responsible for this story: Ben Scent at bscent@bloomberg.net, ;Shaji Mathew at shajimathew@bloomberg.net, Amy Thomson
©2019 Bloomberg L.P.
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
