Kuwait’s SWF doubles investment with RDIF to USD1 billion

Institutional Asset Manager, 09.11.2015

The Kuwait Investment Authority (KIA) is to allocate an additional USD500 million to investment projects in Russia via the the Russian Direct Investment Fund (RDIF).

Kirill Dmitriev(pictured), CEO of RDIF, signed an agreement with Bader Mohammad Al-Saad, Managing Director and CEO of KIA, in the presence of Russian President Vladimir Putin and H H the Emir of Kuwait, Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah, as part of the Emir of Kuwait's official visit to Russia.

In addition to increasing Kuwait's funds for investment projects in Russia, the parties agreed to increase KIA's share in RDIF's automatic co-investment mechanism, which Kuwait has contributed to from 2012. In that year, KIA also allocated USD500 million for investment with RDIF.

The mechanism involves automatic participation in all of RDIF's ongoing deals as a co-investor.

Dmitriev says: "Three years ago, KIA became the first international long-term investor who pioneered alongside RDIF's automatic co-investment mechanism. Our Kuwaiti partners' decision to increase the investment clearly demonstrates their confidence and trust in this partnership and recognition of the mechanism's success."

Bader Mohammad Al-Saad, Managing Director and CEO of KIA, says: "Russia continues to be an important and promising emerging market. KIA believes that RDIF is the ideal partner to invest with in Russia. KIA has all the trust and confidence in RDIF management."