Government forecasts put fund firmly back in profit
The Kuwait Fund for Arab Economic Development (KFAED) will make a net profit of KD92.6m ($322.1m) in the year to April 2011, according to government forecasts.
In a law passed by the country’s emir, Sheikh Sabah al-Ahmed al-Jaber al-Sabah, on 25 July the government said that it expects to raise revenues of KD113.6m from the fund over the coming year.
With expenditures slated to run to KD21m, the government forecast that the fund will earn a total of KD92.6m.
The government plans to place 90 per cent of the earnings, or KD83.3m, into its General Reserve Fund (GRF), which acts as the governmental treasurer, overseeing all of its revenues and assets and to transfer the remaining 10 per cent, or KD9.3m, to the Public Authority for Housing Welfare (PAHW).
The fund was set up in 1978 to help Arab and other countries develop their economies through targeted loans and grants.
It is overseen by the Kuwait Investment Authority (KIA), which controls the General Reserve Fund and the Future Generations Fund.
KFAED ran a loss of KD255.2m in 2008-2009, the last accounting period figures are available for, after making losing substantial amounts on investments. The government has not provided a breakdown of the projected profit for 2010-2011.
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