Kuwait names Al-Ghunaiman to head $700bn wealth fund

Kuwait named Ghanem Al-Ghunaiman as the new managing director of its $700bn sovereign wealth fund, according to a statement on state-run KUNA news agency on Thursday, completing an overdue management reshuffle that had complicated decision-making.

Al-Ghunaiman, an official with the Kuwait Fund for Arab Economic Development, replaces Farouk Bastaki, who helped to propel the Kuwait Investment Authority to rank among the world’s biggest wealth funds.

In his new role, Al-Ghunaiman takes on the much-scrutinized challenge of helping to ease the country’s liquidity crisis. Energy-rich Kuwait has been forced to tap into the wealth fund to cover its budget deficit, in part because the cabinet and parliament haven’t been able to agree on a proposed law that would let the country cover the gap by borrowing in overseas markets.

The KIA wasn’t immediately available for comment.

Kuwait appointed a new board to the KIA in July, three months after the previous panel’s tenure expired. Disagreements over the makeup of the nine-member management body had delayed the board’s appointment, hampering the KIA’s ability to make major decisions.

The KIA manages the Future Generations Fund, which is designed to reduce dependence on oil-related investments. It gained a record 33 per cent during the last fiscal year ended March 31.