The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
Kuwait is planning to create a $10 billion fund with China to invest in the two countries, according to people with knowledge of the matter.
The Gulf state is discussing the creation of a Kuwait-China Silk Road Fund that would invest in Kuwaiti projects related to the Silk City and islands development, according to the people. It could also be used for strategic investments in China and other areas under the Asian country’s “One Belt, One Road†initiative, the people said, asking not to be identified because the information is private.
China and Kuwait would each be responsible for raising around $5 billion for the fund, the people said. The Asian country would also work with Chinese strategic partners to arrange debt financing for projects, which could give the fund an investment capacity of as much as $30 billion, they said.
Under the proposal, the fund’s Chinese backers could introduce strategic partners to work on its investment projects as contractors, according to the people. Deliberations about the fund are at an early stage, and details like the size and investment targets could change, the people said.