The institutional design of sovereign wealth funds in the context of macroeconomic stability and development: a comparative analysis of Kuwait, Singapore, and Qatar
This thesis investigates how to design a Sovereign Wealth Fund (SWF) so that its operation is aligned with its country’s macroeconomic objectives. The research includes a comparison of SWF design, implementation, and governance in Kuwait, Singapore, and Qatar. A key motivation behind this study is e...
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| Format: | Thesis |
| Language: | English |
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2023
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| _version_ | 1811139851609702400 |
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| author | Al Sayed, A |
| author2 | Clark, G |
| author_facet | Clark, G Al Sayed, A |
| author_sort | Al Sayed, A |
| collection | OXFORD |
| description | This thesis investigates how to design a Sovereign Wealth Fund (SWF) so that its operation is aligned with its country’s macroeconomic objectives. The research includes a comparison of SWF design, implementation, and governance in Kuwait, Singapore, and Qatar. A key motivation behind this study is evidence suggesting that the institutional design of a SWF can fail to support, or may even undermine, the achievement of the broader macroeconomic development objectives of its host country. Such misalignments reduce social welfare for millions of people, and solving them could contribute to the economic transformation of the 21st century. However, the literature largely fails to provide roadmaps or models that could guide countries to develop SWFs based on their unique macroeconomic conditions and objectives. Therefore, this thesis explores how countries can develop and refine the design of their SWFs based on macroeconomic indicators that are in line with government objectives, such as creating diversified, stable, and sustainable economic development. The thesis comprises eight chapters. After a general introduction (Chapter 1) and detailed literature review (Chapter 2), a framing conceptual model is proposed (Chapter 3), followed by a presentation of the methodology employed for the country case studies (Chapter 4). The three countries Chapters – Kuwait (Chapter 5), Singapore (Chapter 6), and Qatar (Chapter 7) – are then examined in greater detail, based in part on new qualitative data from 21 semi-structured interviews with senior respondents from the three countries: four from Kuwait, seven from Singapore, nine from Qatar and one Other. The case studies represent SWFs based on commodities, particularly oil and gas (Kuwait and Qatar), and funds derived from the growth in overseas investments. These results reveal very clearly that many policymakers lack adequate guidance on how to establish SWFs based on their specific economic conditions. The contours of a new model (Chapter 8) are then outlined to guide SWF design so that macroeconomic objectives are aligned with the mandate of the SWFs. The potential positive impact of the SWFs on the economic development of the countries is also established. The recommendations from this thesis emphasise the importance of countries adopting SWFs as investment tools that can guide economic growth and contribute to further enhancement of the economy. Moreover, this thesis offers a guide for how the institutional design of SWFs can be formulated to maximise the positive economic impacts. Therefore, a clear mandate and effective governance and management approaches are essential to the success of SWFs.
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| first_indexed | 2024-09-25T04:12:39Z |
| format | Thesis |
| id | oxford-uuid:ba4e4fba-d3bf-417d-a97c-623d9a2e2ea3 |
| institution | University of Oxford |
| language | English |
| last_indexed | 2024-09-25T04:12:39Z |
| publishDate | 2023 |
| record_format | dspace |
| spelling | oxford-uuid:ba4e4fba-d3bf-417d-a97c-623d9a2e2ea32024-07-01T11:49:44ZThe institutional design of sovereign wealth funds in the context of macroeconomic stability and development: a comparative analysis of Kuwait, Singapore, and Qatar Thesishttp://purl.org/coar/resource_type/c_db06uuid:ba4e4fba-d3bf-417d-a97c-623d9a2e2ea3Design of Sovereign Wealth FundsSovereign Wealth FundsEnglishHyrax Deposit2023Al Sayed, AClark, GHepburn, CThis thesis investigates how to design a Sovereign Wealth Fund (SWF) so that its operation is aligned with its country’s macroeconomic objectives. The research includes a comparison of SWF design, implementation, and governance in Kuwait, Singapore, and Qatar. A key motivation behind this study is evidence suggesting that the institutional design of a SWF can fail to support, or may even undermine, the achievement of the broader macroeconomic development objectives of its host country. Such misalignments reduce social welfare for millions of people, and solving them could contribute to the economic transformation of the 21st century. However, the literature largely fails to provide roadmaps or models that could guide countries to develop SWFs based on their unique macroeconomic conditions and objectives. Therefore, this thesis explores how countries can develop and refine the design of their SWFs based on macroeconomic indicators that are in line with government objectives, such as creating diversified, stable, and sustainable economic development. The thesis comprises eight chapters. After a general introduction (Chapter 1) and detailed literature review (Chapter 2), a framing conceptual model is proposed (Chapter 3), followed by a presentation of the methodology employed for the country case studies (Chapter 4). The three countries Chapters – Kuwait (Chapter 5), Singapore (Chapter 6), and Qatar (Chapter 7) – are then examined in greater detail, based in part on new qualitative data from 21 semi-structured interviews with senior respondents from the three countries: four from Kuwait, seven from Singapore, nine from Qatar and one Other. The case studies represent SWFs based on commodities, particularly oil and gas (Kuwait and Qatar), and funds derived from the growth in overseas investments. These results reveal very clearly that many policymakers lack adequate guidance on how to establish SWFs based on their specific economic conditions. The contours of a new model (Chapter 8) are then outlined to guide SWF design so that macroeconomic objectives are aligned with the mandate of the SWFs. The potential positive impact of the SWFs on the economic development of the countries is also established. The recommendations from this thesis emphasise the importance of countries adopting SWFs as investment tools that can guide economic growth and contribute to further enhancement of the economy. Moreover, this thesis offers a guide for how the institutional design of SWFs can be formulated to maximise the positive economic impacts. Therefore, a clear mandate and effective governance and management approaches are essential to the success of SWFs. |
| spellingShingle | Design of Sovereign Wealth Funds Sovereign Wealth Funds Al Sayed, A The institutional design of sovereign wealth funds in the context of macroeconomic stability and development: a comparative analysis of Kuwait, Singapore, and Qatar |
| title | The institutional design of sovereign wealth funds in the context of macroeconomic stability and development: a comparative analysis of Kuwait, Singapore, and Qatar
|
| title_full | The institutional design of sovereign wealth funds in the context of macroeconomic stability and development: a comparative analysis of Kuwait, Singapore, and Qatar
|
| title_fullStr | The institutional design of sovereign wealth funds in the context of macroeconomic stability and development: a comparative analysis of Kuwait, Singapore, and Qatar
|
| title_full_unstemmed | The institutional design of sovereign wealth funds in the context of macroeconomic stability and development: a comparative analysis of Kuwait, Singapore, and Qatar
|
| title_short | The institutional design of sovereign wealth funds in the context of macroeconomic stability and development: a comparative analysis of Kuwait, Singapore, and Qatar
|
| title_sort | institutional design of sovereign wealth funds in the context of macroeconomic stability and development a comparative analysis of kuwait singapore and qatar |
| topic | Design of Sovereign Wealth Funds Sovereign Wealth Funds |
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