Adviser Saleh: sovereign wealth funds must have been introduced in Iraq 18 years ago

Shafaq News / Adviser of prime minister for economic affairs, Muzhar Mohammad Saleh, said today that sovereign wealth funds must have been introduced in Iraq 18 years ago, following the fall of Saddam Hussein's regime.

Salih told Shafaq News agency that sovereign wealth funds are not hard to be established, noting that they protect the economy during crises.

"Currently, the government tends to establish a stability or a sovereign wealth fund, to protect the General Budget and the Iraqi economy", he added.

However, Salih noted that the generation fund (which is a sovereign wealth fund) is formed when there is financial surplus, and when the current generation's desires are not prioritized against the future generations' ambitions, pointing that the fund must be a source of protection in times of need.

A sovereign wealth fund, sovereign investment fund, or social wealth fund is a state-owned investment fund that invests in real and financial assets such as stocks, bonds, real estate, precious metals, or in alternative investments such as private equity fund or hedge funds. Sovereign wealth funds invest globally.