Mumtalakat 2016 Annual Report

10 years
in the making



This is how it all started:
The Government of Bahrain held stakes in a wide range of enterprises across diverse sectors. With the aim of improving the performance, governance and transparency, the Government grouped its non-oil and gas related commercial assets under the control of Mumtalakat, a wholly state-owned holding company.

This was when our story began. On 29th June 2006, the Government transferred its interests in 29 commercial assets to us, including its interest in Aluminium Bahrain (Alba), Gulf Air, Bahrain Real Estate Investment (Edamah), Bahrain Telecommunications Company (Batelco) and National Bank of Bahrain (NBB).

Throughout our early years, we built a solid foundation. We actively managed our local assets to improve their performance, building our sector expertise and we looked for new lucrative and sustainable opportunities.

The combination of the new investments we’ve made and the growth of our existing investments has put our portfolio in a strong position. Our management and investment strategies have been designed to achieve our ultimate objective of delivering long-term growth for Bahrain.

As a strategic sovereign investor, we work to foster long-term partnerships with strong potential for growth. Our first key milestone was made in 2007 when we made the first international partnership by acquiring a stake in the UK-based racing giant, McLaren Group. Through this partnership, we supported the evolution of McLaren, from the establishment of its commercial automotive arm to the expansion of its technologies division.

We have invested in more sectors since then. Cognisant of the changing needs of the world’s growing populace and the industries that serve us, we invest in those areas that answer those needs. In 2009, we made our first investment in the education sector by forming the Gulf Aviation Academy in Bahrain to serve the training needs of airlines in Bahrain and the Middle East and North Africa (MENA) regions.

In 2010, we successfully completed the issuance of a US $750 million debut bond offering. Mumtalakat was the first to issue a bond in the MENA region following the European sovereign debt crisis. This boosted the regional debt capital market and established a solid corporate benchmark for the Kingdom of Bahrain.

We continued to execute a number of successful initiatives throughout the years, enhancing our portfolio and benefitting Bahrain as a whole. Our focus on building a best-in-class organisation, committed to the highest standards of transparency and corporate governance helped us achieve a rating of 10 out of 10 in the Linaburg-Maduell Transparency Index issued by the Sovereign Wealth Fund Index in 2015, placing us in the top tier of our global peers.

Our achievements would not have been possible without the guidance and support of our confident, well experienced Board of Directors who come from both the public and private sectors, as well as our motivated and reliable team, all who work hard every day to deliver an ambitious common objective:

to generate a sustainable wealth for a promising future for Bahrain.

This is how our portfolio evolved in 10 years: