KIA not to bail ailing banks

Kuwait Investment Authority, the Gulf state's sovereign wealth fund, said yesterday it was eyeing investment opportunities abroad but was not in the business of bailing out struggling foreign banks.

Facing criticism from some parliamentary deputies for spending $5bn (Dh18.35bn) in January on investments in Merrill Lynch and Citigroup, whose shares have since fallen, KIA Managing Director Bader Al Saad told Al Arabiya Television, the fund viewed itself as a long-term strategic investor.

"Disasters in the United States, some European countries or Asian countries create investment opportunities in the real estate sector, the financial industry or other sectors," he said. "We are not responsible for saving foreign banks," he added.

He said KIA had made no losses from its investment in Merrill Lynch, which was taken over by Bank of America this month. It had lost $270 million on its Citigroup investment, and made up to $600m from Visa, he added. KIA also pumped KD100m into the local stock market to shore up falling share prices, he said.