IFC's strategy in Kuwait focuses on spurring cross-border investments by encouraging strong regional groups to invest in emerging markets. Business groups in the country possess significant expertise in numerous sectors, including telecommunications, retail, aluminum, and oil and gas. These investments will not only increase the flow of capital toward emerging markets, but will also guarantee the transfer of technology and know-how from companies based in Gulf Cooperation Council countries.
IFC's recent investments include:
A $30 million investment in City Group, Kuwait’s leading listed public transport company, which will support the firm's expansion into Jordan and the Levant. The investment will help increase access to transportation service levels in both countries and facilitate the acquisition of fuel efficient buses, which is expected to save up to 330,000 tons of carbon dioxide annually.
A $50 million commitment to Kuwait Energy to finance its exploration and expansion into Egypt, Yemen and Ukraine. The financing uses a commodity murabaha structure, commonly used in Islamic finance transactions. Kuwait Energy has also sought IFC’s input on environmental, social and corporate governance best practices.