The Government of St.Kitts and Nevis has announced creation of Sovereign wealth fund from CBI revenues. This will be first sovereign wealth fund in the world funded through citizenship by investment program. This great news was announced by Prime Minister Dr. Terrance Drew in Budget speech 2023. A Legislation and a high level management team will be created to carefully govern the revenues of the sovereign wealth fund. The fund will be used prudently as disaster prevention.
“We have forecasted that the revenues from our CBI Programme will be significant over the next few months. If such financial projections are realized, it is Our Government’s goal to create a Sovereign Wealth Fund which will be responsibly managed by high level professionals. This Fund will be used to safely invest in the international markets and industries over the long term. We will ensure, by legislation, that the Fund can only be tapped into for rainy days such as natural disaster response and not for addressing recurrent expenses”
– PM Terrance Drew
The SKN Government will use CBI revenues to improve our healthcare, social services, energy infrastructure and water security. In 2023 and beyond, and CBI programmes profit will work for all Kittitians and Nevisians, not just for one set of people, but for all of our people, said the Prime Minister.
St. Kitts and Nevis is a small and relatively rich two-island economy. Its GDP per capita of US$19,000 is among the highest in Latin America and the Caribbean and it scores relatively well in governance indicators. Tourism is the main source of revenue, but it also has light manufacturing and receives considerable CBI revenues.
A Sovereign wealth fund (SWF) is a state-owned investment fund that invests in real and financial assets investing globally. These are typically created when governments have budgetary surpluses, or and have little or no international debt. Most SWFs are funded by revenues from commodity exports or from foreign-exchange reserves held by the central bank. Sovereign wealth funds have existed for more than a century, but since 2000, the number of sovereign wealth funds has increased dramatically. Some 50 countries in the world have sovereign wealth funds, managing trillions of assets from oil gas revenues, pensions, foreign exchange reserves and non-commodity revenues.
The World’s biggest sovereign wealth funds are listed below..
| Rank | Country | Funds | Assets USD billions |
Origin |
|---|---|---|---|---|
| 1 | China | SAFE / CADF / CIC / NSSF | 1,744 | Non-commodity |
| 2 | France | Bpifrance/Caisse des dépôts et consignations | 1,670 | Non-commodity |
| 3 | Singapore | GIC / TH / CPF | 1,623 | Non-commodity |
| 4 | Norway | GPF | 1,388 | Oil & Gas |
| 5 | United Arab Emirates | ADIA / EIA /MIC /Dubai Inc. /Sharjah Assets Management / Ras Al Khaimah Investment Authority / Ajman Holding / Fujairah Holding | 1,363 | Oil & Gas |
| 6 | Saudi Arabia | PIF | 1,000 | Oil & Gas |
| 7 | Kuwait | KIA, GIC, Wafra | 712 | Oil & Gas |
| 8 | Hong Kong | Exchange Fund / HKMA investment portfolio | 500 | Non-commodity |
| 9 | Qatar | QIA | 445 | Oil & Gas |
| 10 | Australia | FF / WAFF / QIC / VFMC / TCorp | 297 | Non-commodity |
| 11 | United States | APFC / NMSIC / PWMTF / SIFTO / IEFIB / PSF / PUF / ATF / NDLF / LEQTF / CSF / WVFF | 240 | Oil & Gas / Non-commodity / Minerals / Public Lands |
| 12 | Russia | NWF / RDIF | 191 | Oil & Gas / Non-commodity |
