Fund for Future Generation

Prior to the invasion, over 90% of Kuwait income was derived from oil. During this time, while the country was running a surplus economy, a fund was established to prepare for when the oil would no longer be the prime source of income. This was called-Fund for Future Generation (Which at the time of the invasion stood at about $90 billion). This fund was managed by the Kuwait Investment Authority with its headquarters in the Ministries Complex in Kuwait City and the Kuwait
Investment Office in London (well known for its swoop on the shares of British Petroleum when it was privatised).

Kuwait has had to use the Fund for Future Generations to pay the coalition for their efforts and to fund the post-war reconstruction. This fund has also been further depleted by a series of well publicised investment fiascos, the most notable being the loss of some $5 billion in a Spanish property company called Groupo Torros.

For the first time in its history, Kuwait had to go to the international money market, to cover its short-term liquidity. Out of a negotiated $5.5 billion loan only $.2.2 billion remain. These are facilities signed up with various credit insurance institutions of OECD Governments, including an amount of $500 million with the United Kingdom's Export Credit Guarantee Department (ECGD). These financial resources are likely to be used for the continuing reconstruction of the oil sector and to purchase equipment for other sector, e.g. Military Hardware.