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Wed 1 Aug 2018 03:45 PM

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Bahrain's sovereign wealth fund sees assets jump to $15.4bn

Bahrain Mumtalakat Holding Company says rise in value due to gains from consolidation of McLaren and Alba's Line 6 project

Bahrain's sovereign wealth fund sees assets jump to $15.4bn
Mahmood H Alkooheji, CEO of Mumtalakat.

Bahrain Mumtalakat Holding Company, the country's sovereign wealth fund, has announced a rise in total assets reaching BD5.8 billion ($15.4 billion) in 2017, up 46.4 percent compared to 2016. 

The rise in value was due to value gains from its portfolio companies including the consolidation of McLaren and Alba’s Line 6 project, the company said in a statement.

It added that it recognised impairment losses of BD105.5 million in 2017 while net profits reached BD210.6 million during the year, up from BD68.9 million in 2016.

Sheikh Khalid bin Abdullah Al Khalifa, deputy Prime Minister, and chairman of Mumtalakat, said: “Last year was notable for Mumtalakat as we witnessed substantial growth in the group. Our strong investment mandate and results support the growth of the local economy from further economic diversification to job creation. Our impact in Bahrain can be evidenced in the continued financial commitment to the growth of our local companies.”

Mumtalakat said it committed BD33 million in 2017 to legacy assets including Bahrain International Circuit, Bahrain Real Estate Investment (Edamah) and Arab Shipbuilding and Repair Yard (ASRY).

Mumtalakat also generated BD583 million last year in capital expenditure compared to BD247 million in 2016 while expenditure on employee salaries and benefits increased by 11 percent.

Mahmood H Alkooheji, CEO of Mumtalakat added: “We reported net profits for the fifth consecutive year, reflecting the success of our investment model as we continue to invest in and for Bahrain while managing our portfolio with a commercial mindset. In addition, we committed BD104 million to new investments in 2017.”

Mumtalakat was created in 2006 with a mandate to grow the government’s strategic non-oil and gas assets through a commercial focus.

The sovereign wealth fund’s assets have almost doubled from 29 to over 60 local and international companies across 11 sectors, of which 65 percent are in Bahrain and the region, 27 percent are located in Europe and 8 percent are based in the United States.

Mumtalakat said it provides approximately 14,000 direct job opportunities in Bahrain within its local portfolio companies.

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