Feb 12, 2014

The potential Kuwaiti citizen dividend is out of this world: US$2.3 million each.

Kuwait puts oil money (10%) into a Future Generation Fund, managed by the Kuwait Investment Authority (KIA).

According to the information at the SWF Institute, KIA has a fund of US$410 billion, and Kuwait's population is estimated at 2.82 million, giving a fund wealth per capita of $145,390.

KIA has two sources of funding: investment return (estimated at 5%) and the annual injection of 10% of oil money (estimated at US$3.07 billion).

If we do a projection based on these numbers, the citizen dividend that a Kuwaiti owns is US$7,300 for this year, and increasing every year by US$54 from the annual injection of fresh oil funding. Over a 20 year period, the total citizen dividend will be US$155,000. 

Over a life time (say, 80 years), the total citizen dividend will be US$753,000.

This assumes only 10% of the annual oil wealth is injected into the fund, as per the current law in Kuwait.

If we assume 100% citizen ownership, the fresh injection will be estimated at US$30.7 billion. Over an 80-year period, the citizen dividends will add up to US$2,300,000. And the KIA fund will reach US$2.8 trillion with a per capita of US$1 million, assuming the same population size.
  

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