Kuwait’s sovereign 'fund' buys Standard Chartered Dubai tower

DUBAI, Jan 7: Kuwait Investment Authority, one of the world’s largest sovereign wealth funds, bought the Standard Chartered Plc tower in Dubai’s downtown district, signalling investor demand for income-generating assets continues even as oil declines and political tensions mount.

The 13-storey building sold for about Dh650 million, Jim Osborne, a founding partner of developer Gulf Resources Development & Investment, said in a phone interview on

billion last year.

But while it could increase foreign investors’ interest in the Saudi stock exchange, the sheer volume of equity could initially weigh heavily on the market, which has a capitalisation of $384 billion.

Salman, who as chairman of the powerful new Council of Economic and Development Affairs has broad authority over the economy, said the government would sell assets in a range of state firms, healthcare, education and some military industries.

“It will decrease some of the pressure Thursday. Calls and e-mails to the KIA and Standard Chartered weren’t returned.

The building was among the first commercial towers to be erected in Dubai in the aftermath of the financial crisis. Before then, most developers sold office buildings to multiple owners, often with a different owner for each floor. Companies shunned those buildings and some started teaming up with developers to build suitable towers.

that the government has, and some of them may create good profit.”

International investors have become increasingly concerned about Riyadh’s ability to cope with low oil prices in the long run; the riyal dropped to a record low against the US dollar in the forwards market on Thursday.

But Salman said Saudi Arabia’s low debt and huge array of assets meant it could cope easily with financial pressures. He said the government planned to provide state-owned funds with assets worth $400 billion in the next few years.