Bahrain's sovereign wealth fund Mumtalakat has appetite and funds available for investment, its top official has said.

Chief executive Mahmood Al Kooheji said he expects next year to be positive for the GCC region, Bahrain and the company which will build on continuing good performance of its portfolio companies, said a report in the Gulf Daily News (GDN), our sister publication.

“We continue to take a prudent approach to new investments and constantly monitor our assets and will consider new investments to expand the portfolio and monetisation initiatives if and when appropriate,” Al Kooheji said.

He said 'the independent holding company mandated with growing the wealth of Bahrain' would continue to look into 'local, regional and international investment opportunities that play to our points of strength'.

Citing some of the domestic investments being made by Mumtalakat, Mr Al Kooheji said the mixed-purpose and hospitality developments at Al Jazayer Beach, Durrat Al Bahrain and Hawar Island continue to progress and are expected to boost the tourism industry and the Bahrain economy in general.

In the aluminium downstream sector, the company is establishing international joint ventures and supporting Alba's expansion and restructuring projects.

“These should deliver a 45 per cent increase in Alba's annual aluminium production and create up to 1,500 job opportunities in Bahrain.”

The chief executive said while the global economic and financial environment remains challenging, the GCC region, Bahrain in particular, remains very resilient.

“This is due to the lucrative opportunities within various vertical sectors and its proximity to some of the most coveted growth areas in the world, in Africa and Asia.

“The Bahraini economy is supported by a resilient oil sector, and the non-hydrocarbon sector is expected to continue accelerating due to continued growth in banking and finance, real estate, tourism, transportation and logistics, and trade,” he added.

According to him, Mumtalakat's investment strategy is focused on sustainable growth as well as expanding, and diversifying its portfolio.

“To this end, we concentrate on two key clusters - industrials and services, which consist of several sectors.

“These include metals and manufacturing, financial services, technology, media and telecommunications, tourism and events and real estate.

The sovereign wealth fund actively seeks investments and identifies partnerships that deliver long-term sustainable growth within these sectors and would also consider co-investments opportunities for it can add value.

Examples are PRO Unlimited, an American software and services provider, which Mumtalakat acquired in partnership with Investcorp and GEMS Education, a global network of over fifty schools in 19 markets, which it acquired in partnership with Fajr Capital and Blackstone.

The company also owns a 15 per cent stake in alternative investment manager Arcapita as well as Alba, Batelco, Gulf Air, Asry, McLaren Group, and McLaren Automotive.

Al Kooheji said the company reported an increase of 135 per cent in gross profits last year largely due to improved performance at some key portfolio companies, such as Gulf Air. - TradeArabia News Service