Kuwait is planning to create a $10-billion fund with China to invest in the two countries, reported Bloomberg, citing people with knowledge of the matter. 

 

The Gulf state is discussing the creation of a Kuwait-China Silk Road Fund that would invest in Kuwaiti projects related to the Silk City and islands development, it stated. 

 

It could also be used for strategic investments in China and other areas under the Asian country’s “One Belt, One Road” initiative, said the report.

 

China and Kuwait would each be responsible for raising around $5 billion for the fund, the people said. 

 

The Asian country would also work with Chinese strategic partners to arrange debt financing for projects, which could give the fund an investment capacity of as much as $30 billion, they added.

 

Under the proposal, the fund’s Chinese backers could introduce strategic partners to work on its investment projects as contractors, said the Bloomberg report. 

 

Deliberations about the fund are at an early stage, and details like the size and investment targets could change, it stated.

 

Kuwait is developing its northern region as it seeks to boost non-oil revenue and transform itself into a regional business hub by 2035, said the report. 

 

The multibillion-dollar Silk City project, which has been planned for more than a decade, is part of this goal, it added.