Mumtalakat assets value increases to $15.4 billion

Manama : Bahrain Mumtalakat Holding Company (Mumtalakat) yesterday reported a 46.4 per cent growth in its 2017 consolidated total assets to BD5.8 billion (US $15.4bn) from a year ago helped by value gains from Mumtalakat portfolio companies including the consolidation of McLaren and Alba’s Line 6 project.

“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,” said Shaikh Khalid bin Abdullah Al Khalifa, Deputy Prime Minister, Chairman of Mumtalakat. Mumtalakat committed BD33 million (US$88m) throughout the year to legacy assets including Bahrain International Circuit, Bahrain Real Estate Investment (Edamah) and Arab Shipbuilding and Repair Yard (ASRY).

The group generated BD583m (US$1.6bn) last year in capital expenditure compared to BD247m (US$657m) in 2016 while expenditure on employee salaries and benefits increased by 11pc in comparison to the previous year for its key Bahrain-based companies. Mahmood H. Alkooheji, Chief Executive Officer 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 BD104m (US$277m) to new investments in 2017. This included acquisitions with a co-investment partner. In total, since inception of the fund in 2006, BD807m (US$2.1bn) has been invested in Bahrain, ranging from growth capital for legacy and strategic assets to the establishment of 11 new companies and ventures.” Net profits reached BD210.6m (US$560m) during the year in comparison to BD68.9m (US$183m) in 2016.