Kuwait Channels Assets to Wealth Fund to Improve Cash Flow
Kuwait has completed the transfer of its remaining valuable assets to the sovereign wealth fund, in return for cash to address its budget deficit.
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The transferred assets reportedly include shares in Kuwait Finance House and Zain, a telecommunications company, as well as the state-owned Kuwait Petroleum Corp., valued nominally at 2.5 billion dinars ($8.3 billion), transferred in January.
This move comes as a result of a political dead end that has prevented the government from borrowing, leading to a liquidity crisis in one of the world’s wealthiest countries. This crisis prompted Fitch Ratings to revise its outlook on Kuwait to negative, while maintaining its AA rating.
Fitch cited concerns over the rapid reduction of liquid assets and the lack of legislative approval for government borrowing as factors contributing to financial uncertainty. This follows the warning sent by S&P Global Ratings about a potential downgrade in the country’s rating within the next six to 12 months if the political standstill persists.
Despite being a high-income country, Kuwait has drained its reserves due to long periods of low oil prices. In a bid to generate funds, the government has exchanged its prime assets for cash with the $600 billion Future Generations Fund, designed to preserve the country’s wealth beyond the oil area. With the completion of these asset transfers, it remains uncertain how Kuwait will manage its eighth straight budget deficit, estimated at 12 billion dinars for the upcoming fiscal year starting in April.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
With the growing global demand for digital infrastructure, Damac has been expanding its footprint in this important sector.
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Damac Group, a renowned conglomerate with a diverse investment portfolio of luxury real estate, hospitality, property management, and logistics, has announced its plan to invest up to $1 billion in the data centers sector over the next few years.
Recognizing the increasing global demand for digital infrastructure, Damac has been expanding its footprint in this crucial sector. A significant milestone in Damac’s diversification strategy was the launch of Edgnex Data Centers in 2021, which has enabled the group to capitalize on the growing need for robust digital infrastructure.
According to Damac, Edgnex is making significant strides in Saudi Arabia, with facilities under construction in Dammam and Riyadh that will deliver 55MW by 2025. Additionally, plans are underway for a data centre in Amman, Jordan, and another in Turkey in partnership with Vodafone.
In May, Damac had announced its entry into the Indonesian market with plans to build a data center in Jakarta. The 15MW facility, located along MT Haryono, is scheduled to complete its first construction phase in the fourth quarter of 2025.
“This substantial investment in the data center sector reflects our commitment to advancing digital infrastructure and supporting the technological transitions that are essential for future growth and innovation,” said Hussain Sajwani, the Founder and Chairman of Damac Group.
In addition to the technological transitions and diversification, particularly in the data centers sector, Damac Group is heavily focusing on its Artificial Intelligence (AI) investments.
The increased focus on AI and technological infrastructure, he stated, is expected to bolster the Group’s existing portfolio and pave the way for new strategic partnerships and collaborations.
By investing in AI and data centers, it aims to leverage advanced technologies to create value and drive sustainable growth, he added.
The Damac Group’s diversified family office has already invested in over 70 funds across various strategies, demonstrating its commitment to fostering innovation and growth across multiple industries.
With this new focus on AI, the Group aims to further enhance its role in advancing foundational AI models and infrastructure.
“As a forward-thinking organization, we recognize the transformative potential of AI in shaping the future,” remarked Sajwani.
“Our increased investment in AI reflects our commitment to supporting the development of groundbreaking technologies that can drive significant progress and create new opportunities across various sectors,” he stated.
According to him, Damac has made notable investments in leading AI companies including a $50 million in the AI startup, Anthropic – as one of the top investors who have bought into the company from the bankrupt cryptocurrency exchange, FTX.
Also it has made investments in xAI – an American AI startup founded by Elon Musk and in Mistral – a France-based AI company which is one of the best European large-language model open source.
“We are excited to be part of the AI revolution and to contribute to the growth of this dynamic industry,” said Sajwani.
“Our investments in companies like Mistral, Anthropic, and xAI underscore our dedication to fostering innovation and driving the next wave of technological advancements,” he added.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
