Kuwait wealth fund eyes infrastructure projects in Europe and U.S.

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Kuwait is aiming to invest in infrastructure projects especially in Europe and the United State, head of the country’s sovereign wealth fund, Badr al-Saad, told Al Arabiya at the World Economic Forum in Davos, Switzerland on Saturday.

“We think that these countries need to develop their infrastructure. We think that investments in infrastructure will be big in the next five years,” Saad, the managing director of Kuwait Investment Authority (KIA), said.

He named Texas Pacific Group and CBC as two of the funds the KIA has been investing in.

However, he warned that the dwindling down of the yen can ignite currency war in southeast Asia.

While China is far better than developed countries as its economy is expected to grow between 7.7 percent to 8 percent over the next two years, there is a fear over the decline of the yen, he said.

“The only fear is the decline of the yen. The decline of the yen could trigger a currency war in the countries of southeast Asia, this is the only fear we have at the moment.”

KIA, which was looking for more investment in China, had China’s foreign exchange regulator recently increased the amount which the KIA could invest directly in local securities markets to $1 billion.

In rare comments about KIA’s investment strategy, Saad said that the sovereign wealth fund has been investing in private equity funds where the returns are good and is shunning bonds because interest rates are so low.