Mumtalakat’s fair value of investment portfolio up by 28% in 1st half of 2023

TDT | Manama                                                     

The Daily Tribune – www.newsofbahrain.com

His Excellency Mohammed bin Thamer Al Kaabi, Minister of Transportation and Telecommunications, has highlighted the significant increase in the fair value of Mumtalakat’s investment portfolio by 28% in the first half of 2023 compared to 2020.

This remarkable growth is attributed to the effective collaborative management approach adopted by Mumtalakat, he stressed.

This came during yesterday’s parliament session, during which Al Kaabi was present and discussed the performance of Mumtalakat, the sovereign wealth fund of Bahrain.

The minister also elaborated on other achievements, such as job creation, contributions to the national GDP, and financial support to McLaren.

He emphasised the positive performance of the investment portfolio managed by Mumtalakat, revealing that it has contributed 200 million dinars to the public budget.

“The fair value of the portfolio witnessed a substantial increase of 28% in the first half of 2023 compared to the previous year, reflecting the successful implementation of effective collaborative management strategies,” he stated The minister further highlighted the significant role played by Mumtalakat in creating employment opportunities.

“Through local investments, Mumtalakat has contributed to the creation of 12,000 job opportunities for Bahraini citizens, supporting the government’s efforts to address unemployment,” he pointed out.

Local investments

In addition to job creation, the minister pointed out that local investments managed by Mumtalakat accounted for over 8% of the country’s GDP in 2022, underscoring the substantial economic impact of these investments.

The financial support provided by Mumtalakat to McLaren, a renowned luxury sports car manufacturer and Formula 1 racing team, was also discussed.

The minister clarified that the funding aims to restructure and enhance the market value of McLaren, fostering its development and growth. Highlighting the global significance of McLaren, the minister underscored that the company is not just a racing team but a conglomerate encompassing the production of luxury sports cars.

The financial support provided by Mumtalakat is intended to restructure the company, increase its market value, and drive its further development.

The minister shed light on the nature of the investment in McLaren, explaining that the increase in Mumtalakat’s stake in the company was exchanged for preferred shares, granting Mumtalakat privileges over other shareholders within the group.

Successful plans

Moreover, the minister mentioned Mumtalakat’s successful plans that have resulted in reduced losses for certain companies, such as Gulf Air, the Kingdom’s national carrier.

“The losses of Gulf Air Holdings decreased by 203% from 2020 to 2022, indicating the effectiveness of Mumtalakat’s strategies in improving the financial performance of its portfolio companies,” he explained.

Highlighting the significance of Gulf Air, the minister underlined that the airline is one of the largest employers of Bahraini citizens, with over 1,700 Bahraini employees.

Additionally, Gulf Air’s operations contribute to opening up global markets for the Kingdom, enhancing international connectivity and economic opportunities.

In conclusion, the Minister of Transportation and Telecommunications expressed satisfaction with the progress achieved through the collaborative management approach employed by Mumtalakat.