Bahrain's wealth fund triples profit in 2017
Net profits at Mumtalakat in 2017 stood at $560m (BD210.6m), a whopping 207% increase on 2016’s $183m (BD68.9m) figure
Net profits at Bahrain’s sovereign wealth fund tripled last year, with the value of the fund’s consolidated assets also seeing a solid double digit increase compared to 2016.
According to a statement by its Board of Directors on Wednesday, Mumtalakat said net profits last year stood at $560m (BD210.6m) – a 207% increase on 2016’s figure of $183m (BD68.9m).
More generally, total consolidated assets reached $15.4bn (BD5.8bn) last year, a 46.6% increase on 2016.
Mumtalakat said the rise in value of its assets last year was due to gains from its companies within its portfolio, including the consolidation of McLaren and Alba’s Line 6 project – valued at $3bn (BD1.2bn) and slated to create over 500 direct jobs in Alba, alongside thousands of indirect jobs in Bahrain.
Last year, Alba’s revenues increased 28% on 2016 to hit $2.3bn (BD857.8m) last year. This helped push profits up an impressive 91% in 2017 to reaching $246m (BD92.5m) – a figure aided in part too by higher aluminium prices.
The fund said it also spent 11% more on employee salaries and benefits in 2017 for its “key Bahrain-based companies”, compared to the $657m (BD247m) it spent in 2016.\
Speaking on the results, Mumtalakat chairman and deputy prime minister of Bahrain, HE Shaikh Khalid bin Abdullah Al Khalifa, 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.”
Mumtalakat CEO, Mahmood H. Alkooheji, 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.”