Structure and Governance
KIA believes that its structure and governance, which are established by law, represent a high standard of excellence and accountability. KIA is
an independent public authority managed by its Board of Directors.
In 2014, KIA undertook a comprehensive review of its strategy in order to align itself with industry best practices in all aspects of asset and
investment management. During this review, the consultants undertaking the study found that KIA had one of the best corporate
governance structures within its peer group and within the industry as a whole.
KIA is an independent public authority managed by its Board of Directors.
The Board has complete independence in its decision making process.
By law, the Board members consists of:
The Minister of Finance (Chair) [Ex-officio]
The Minister of Oil [Ex-officio]
The Governor of the Central Bank of Kuwait [Ex-officio]
The Under Secretary of the Ministry of Finance [Ex-officio]
And five other Kuwaiti Nationals from the private sector appointed by Amiri Decree
At least three of the private sector appointees may not hold any other public office
The Board selects a Managing Director and his deputies, who may not (during their respective terms of office) undertake any work, with or without pay, for any employer other than KIA.
The Board also appoints an Executive Committee that is composed of five board members, of whom at least three are taken from private sector appointees to the Board and that is chaired by the Managing Director. KIA's Managing Director is Mr. Bader M. Al Saad.
The primary role of the Executive Committee is to assist the Board of Directors in setting the strategic goals and objectives of KIA.
KIA's managed accounts are jointly audited annually by two of the "Big Four" independent audit firms. The External Auditor reports directly to the Board of Director of KIA.
There is a Board Audit Committee comprising of two private sector board members. The Board Audit Committee is chaired by the Under Secretary of the Ministry of Finance. The Managing Director is invited to attend the Board Audit Committee meetings as an observer.
KIA is required by law to submit semiannual statements of its assets under management to the independent State Audit Bureau, which also assigns on-site personnel to review KIA's activities on an ongoing basis.
In addition to the external auditors, KIA has an Internal Audit Office that reports directly to the Chairman of the Board of Directors. Internal Audit Department conducts regular audits for all KIA departments
The Civil Service Commission assigns on-site personnel to ensure KIA's compliance with all administrative and human resources requirements as a public sector entity.
The Ministry of Finance assigns on-site Controllers to ensure that all administrative expenditures are in compliance with internal rules and regulations and is within approved guidelines.
KIA's performance and risk management systems are the responsibility of KIA's Risk and Performance Unit, which reports directly to the Managing Director. The Risk and Performance Unit is responsible for conducting performance and risk analysis, identifying and communicating performance and risk issues to senior management, developing an understanding of performance and risk within KIA's investment sectors, and investigating data irregularities. KIA's performance and risk management systems are the subject of review by the two independent accounting firms that audit KIA. KIA has also engaged a leading global risk and performance service provider to assist KIA with this vital task.