A decree enabling Kuwait to tap into its long-term investment fund will provide a short-term financial buffer against the economic toll of the Iran war amid an ongoing effort to diversify away from hydrocarbons and reduce reliance on the Strait of Hormuz. On Sept. 1, Kuwaiti Emir Sheikh Mishal al-Ahmad al-Jaber al-Sabah issued a decree enabling the government to borrow from its Future Generations Fund (FGF), managed by the Kuwait Investment Authority (KIA), to support its General Reserve Fund, which finances state spending and budget deficits. The decree capped total loans from the FGF at 10% of the fund's net value of over $1 trillion. Additionally, the decree mandated that the value, duration and interest rate of any loan be stipulated prior to borrowing.