Kuwait Sells Major Assets

Kuwait sold off most of its liquid assets to raise $30 billion spent since Iraqi troops were evicted last February but long-term investments remain intact, Gulf-based bankers and economists say.

Kuwait was forced to draw down about $25 billion of its overseas investments--estimated at $100 billion--to get the country back on its feet while it was deprived of oil income, they said.

The assets sold by Kuwait consisted of bank deposits, bonds and equity held in its trading portfolio, bankers said. Strategic holdings in major foreign firms and fixed overseas assets were left untouched.

“Without generating any oil income, it’s clear that they used a good portion of their liquid assets--they have drawn about 25% of their total portfolio equivalent to around $20 (billion) to $25 billion,” one senior economist in the region said.