Kuwait Pension Fund Plans To Triple Infrastructure Investments

Kuwait pension fund will also 'slightly increase' investments in hedge funds and real estate

Kuwait’s $112 billion pension fund is looking to more than triple investments in infrastructure as part of its asset-allocation strategy over the next couple of years.

“In infrastructure, we’re looking to build up aggressively,” Meshal Al-Othman, director general of the Public Institution for Social Security, said in an interview with Bloomberg TV on Tuesday. “We’re at 3% today. We’re taking that up to roughly 10%.”

It will also “slightly increase” investments in hedge funds and real estate, he said.

Al-Othman is part of a new management team brought in during 2017 to transform the state-owned institution after a corruption scandal involving a previous manager. The fund has since exited more than $20 billion in questionable deals in a major reorganization of its portfolio.

PIFSS, as the fund is known, had a record investment profit of $7.3 billion in the three months through June, an almost fourfold increase from a year earlier. It aims to have 12% to 17% of its portfolio in real estate, followed by private equity at between 8% and 13%.

The team inherited a portfolio with a “humongous” 40% sitting in cash, Al-Othman said. This is now at 11.5% of its investments, which the fund aims to reduce to 4% by March.

For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
RECENT NEWS

UAE Announces Tax Exemption; Expected Holiday Dates; Dubai Real Estate Cryptocurrency Buying Tips; Visa Application Centre Opened – 10 Things You Missed This Week

UAE tax rules, holiday forecasts, Dubai real estate analysis and more top news stories this week Read more

“This Is The True Crypto Hub”: Frederica Tompkins Michell On Decentralisation, Brand Building, And Why Dubai Is Leading The Future

From blockchain to branding, Binance’s Global Marketing Chief unpacks the real drivers behind Dubai’s crypto ascent Read more

“We Dont Want To Take An American Approach”: BOLTs Justin Grooms On Building For The UAE

How the fintech leader is localising trust, data and identity for the UAE’s fast-moving digital economy Read more

UAEs Islamic T-Sukuk Auction Attracts AED 6.93bn In Bids

The UAE Ministry of Finance has successfully issued AED 1.1 billion in Islamic T-Sukuk for May 2025 Read more

JP Morgan-backed ISG Partners With Bank Of Baroda To Launch UAEs Jaywan Cards

The introduction of Jaywan Cards will help Bank of Baroda’s UAE unit significantly enhance merchant acceptance by off... Read more

From First Click To Full Service: The AI Journey In Financial Services

Real-time analytics, automation, and generative AI are redefining how institutions attract, onboard and serve today’s... Read more