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Tue 4 Jun 2019 09:01 AM

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Bahrain wealth fund sees big drop in net profit in 2018

Bahrain Mumtalakat Holding Company posts drop in profit to $148m despite 38% rise in revenue

Bahrain wealth fund sees big drop in net profit in 2018
Mahmood H Alkooheji, CEO of Mumtalakat.

Bahrain Mumtalakat Holding Company (Mumtalakat), the sovereign wealth fund of Bahrain, has announced net profits of $148.2 million for 2018, down from $560.1 million in the previous year.

Revenue increased by 38 percent, reaching $5.5 billion, primarily due to the full year impact of consolidation of McLaren, effective in July 2017, and higher sales at Aluminium Bahrain (Alba).

Net profit in 2017 included fair value gain on derecognition of associates of $667 million while a higher cost of raw materials in 2018 led to a fall in Alba’s net profits.

Mumtalakat said its share of profits from Bahrain Telecommunications Company (Batelco) increased to $48.7 million while profit from the National Bank of Bahrain (NBB) rose to $80.3 million.

Sheikh Khalid bin Abdulla Al Khalifa, deputy Prime Minister, chairman of Mumtalakat, said: “Despite global economic conditions, Mumtalakat continues to perform consistently year on year. This reflects the strength and resilience of our investment approach and we are confident that as we implement our strategy, we will continue to grow the wealth of Bahrain in a sustainable way for many generations to come.

“With over 60 companies within the group today, in which our Bahrain investments comprise 70 percent of our value, providing approximately 14,000 direct jobs in the kingdom, Mumtalakat’s investment strategy is linked to national economic diversification plans."

The company has invested $2.2 billion in Bahrain since its establishment in 2006 and, in 2018 alone, committed $181 million to local and international investments, added Mahmood H Alkooheji, CEO of Mumtalakat.

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