Sovereign Wealth Funds
Mumtalakat
The increased and high profile investment activity of Middle Eastern sovereign wealth funds is increasingly being scrutinised by western financial markets, looking at the opportunities provided by these funds to access the current abundance of Gulf capital. The increase in high profile overseas investments by some of these funds is currently receiving significant press coverage and interest worldwide.
In 2006, Bahrain set up its own investment vehicle, Bahrain Mumtalakat Holding Company with a capital of BHD2 billion. Today, Mumtalakat is valued around $10bn (Mumtalakat - July 2008 - www.bmhc.bh). With 35 commercial enterprises under its portfolio, Mumtalakat is an active shareholder in both local and foreign companies with a diversified portfolio of holdings including:-
- National Bank of Bahrain
- Gulf Air
- Batelco
- Aluminum Bahrain
- Bahrain Real Estate Investment Company
- The Bahrain International Investment Circuit
Since inception, Mumtalakat has been open and transparent in its holdings and strategy. Mumtalakat is committed to fostering the development of the company through greater transparency, better accountability and improved growth of its investments.
Historically, the focus of Mumtalakat has been primarily local, providing funding to develop Bahrain’s economy. In January 2007 the Company took a step outside Bahrain when it acquired a 30% stake in a British company, The McLaren Group (best known for their F1 racing team).
In February 2008, Mumtalakat’s management announced plans to float stakes in state companies next year, in order to boost privatization in Bahrain (Source: Financial Times , February 2008 ). This move will position Mumtalakat as the Kingdom’s own sovereign wealth fund as it puts future revenues from privatizations into a more diverse range of international investment opportunities.
Full details can been found at their website www.mumtalakat.bh