Kuwait hasn’t renewed wealth fund’s board since term expired

Kuwait hasn’t approved a new term for the board of its $600bn sovereign wealth fund since its tenure expired two months ago, according to two people familiar with the matter.

The finance minister, as chairman of the Kuwait Investment Authority, can make interim decisions on any important issues that need to be dealt with, the people said, asking not to be named discussing confidential matters. It’s unclear whether any major decisions have been put on hold since April 20, when the nine-member board’s term expired.

The KIA is the world’s oldest sovereign fund – and one of the largest – with stakes in ports, airports and power distribution systems around the world. Its board is appointed by royal decree for a four-year term and members can be reappointed.

It wasn’t immediately clear why the board’s tenure hasn’t been renewed. KIA couldn’t immediately be reached for comment.

The wealth fund manages the OPEC member’s general reserve fund – the government’s main source of budget financing – as well as its Future Generations Fund, a vehicle designed as a buffer for a time after oil.

Its board includes Finance Minister Khalifa Hamada, Oil Minister Mohammed Alfares, central bank Governor Mohammad Al-Hashel, KIA Managing Director Farouk Bastaki, Acting Finance Ministry Undersecretary Aseel Al-Munifi and former KIA managing director Bader Al-Saad.