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UPDATE 1-Kuwait wealth fund KIA appoints new board of directors

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KUWAIT, Aug 3 (Reuters) - The Kuwait Investment Authority (KIA), the Gulf state's sovereign wealth fund, has appointed a new board of directors, according to a government official on Tuesday, confirming media reports.

The move was approved by Kuwait's cabinet on Monday, the newspaper al-Qabas said.

The newly appointed board members are Khaled Ali Al-Fadil, Sheikh Mishaal Jaber Al-Ahmad, Fahd Muhammad Al-Rashed, Faisal Abdullatif Yousef Al-Hamad and Ghanem Suleiman Saqr Al-Ghunaiman, al-Qabas said.

They could not immediately be reached for comment.

KIA, which had more than $580 billion in foreign assets at the end of last year according to ratings agency Fitch, manages two funds - one is a nest egg for when oil prices run out, the other is used to cover Kuwait's budget deficit.

Its role in providing liquidity to the government has become increasingly important last year as a standoff between cabinet and parliament has blocked a law that would allow the government to finance its deficit by borrowing in the overseas markets.

KIA's previous board tenure expired in April and sources have previously said the delay in appointing new board members was the result of the political deadlock.

A new managing director is yet to be named, the government official told Reuters. (Reporting by Ahmed Hagagy; Writing by Lisa Barrington and Davide Barbuscia; Editing by Clarence Fernandez, and Louise Heavens)