Kuwait's Ministry of Finance is in the process of transferring ownership of land plots worth 2.5 billion Kuwaiti dinars ($8.1 billion) to the state's pension fund for investment as it seeks to improve pensioners' quality of life.
The move is aimed at supporting retirees by “bolstering the fund's financial and economic position, guaranteeing the institution's sustainability and reducing the actuarial deficit recorded in the institution's budget”, the ministry said on Monday.
Work is currently under way to complete the transfer of three land plots spanning 842,000 square metres to the Public Institution for Social Security Fund.
This comes as authorities seek to ensure the “stability and strength of the Public Institution for Social Security Fund” and to meet their obligations towards securing a high quality of life for citizens in general and pensioners in particular, the ministry said.
The Ministry of Finance and the Kuwait Investment Authority will study the Ciyada Development Fund, the government said in July.
The proposed Ciyada fund aims to “accelerate the growth of the Kuwaiti economy, improve the quality of life and bolster transformation and progress in the various fields of development through strategic planning and effective implementation of major development projects”, it said.
In 2023, Kuwait's economic growth is projected to slip to 0.1 per cent, reflecting agreed Opec+ oil production cuts and slower external demand growth, the International Monetary Fund said in June.
However, non-oil growth in 2023 is projected to remain robust at 3.8 per cent due to fiscal stimulus and a partial rebound in expat employment, the IMF said.