BIG PICTURE

While many Gulf states , from Saudi to the UAE , have been rushing to retool their economies as they reduce dependence on oil , Kuwait has been stubbornly hanging on to its crude oil revenues .

With around 7 % of the world ’ s oil reserves , this resource continues to be Kuwait ’ s main form of income , contributing 50 % of GDP .

But change is afoot , as the oil-rich nation announces plans to establish a new sovereign fund with the aim of developing mega projects and fuelling economic growth . This follows the installation of a new government in June , the fifth in less than a year .

Unliked Kuwait ’ s KIA sovereign wealth fund , which is the world ’ s oldest , the new Ciyada Development Fund will work with the private sector to spearhead domestic investments , including mega developments , and attract foreign and private investment funding .

Sovereign wealth funds like Abu Dhabi ’ s Mubadala Development Co and Saudi ’ s Public Investment Fund are powering the economic diversification taking place in the region .

8 September 2023