KUWAIT REQUESTS INCLUSION IN GLOBAL FINANCIAL

C O N F I D E N T I A L KUWAIT 001074 SIPDIS DEPARTMENT FOR S, D, E, NEA, EEB TREASURY FOR DEPUTY SECRETARY KIMMITT E.O. 12958: DECL: 10/22/2018 TAGS: EFIN PREL ECON EINV KW SUBJECT: KUWAIT REQUESTS INCLUSION IN GLOBAL FINANCIAL SUMMIT Classified By: Ambassador Deborah K. Jones for reasons 1.4 (b & d). ¶1. (C) On October 22, Sheikh Dr. Ahmed Nasser Al-Sabah, son of the PM and Office Director to the Foreign Minister called the Ambassador to convey Kuwait's strong desire to be included in the global financial summit announced by the President on October 18th. He noted that Kuwait's substantial investment in the U.S. and in global financial markets and strong support for the President's initiatives merit its inclusion in any summit deliberations. He asked for information on the level of participation in the summit. ¶2. (C) Comment: Kuwait has a strong political and financial relationship with the United States. In addition to the $1.4 billion it provides in annual support to the U.S. military, public and private Kuwaitis are active investors in the United States. According to Kuwait Investment Authority (KIA) officials, KIA maintains the bulk of its $215 billion Fund for Future Generations and some portion of its General Reserve Fund in the U.S. Kuwaiti officials have publicly and privately supported the USG's efforts to stabilize the global financial system to the point where the Managing Director of the KIA has needed to publicly defend his large scale investments in Merrill Lynch and Citigroup. ¶3. (C) Comment Continued: Kuwait, as the holder of the oldest Sovereign Wealth Fund in the world, also represents an important dynamic in international investment. Kuwait moved from its earlier deep suspicion of the Sovereign Wealth Fund process to accepting the Santiago Principles and offered to host the first post-IMF meeting of the permanent SWF consultative group. A global financial conference that ignores Kuwait and some of its key sister investors will send the wrong message, especially when U.S. financial institutions are actively seeking Gulf money. End Comment. ********************************************* * For more reporting from Embassy Kuwait, visit: http://www.state.sgov.gov/p/nea/kuwait/?cable s Visit Kuwait's Classified Website: http://www.state.sgov.gov/p/nea/kuwait/ ********************************************* * JONES