Bahrain's sovereign wealth fund, Mumtalakat Bahrain, said on Tuesday it did not expect to divest its holdings in local firms this year because of low market valuations.

Mumtalakat had been planning to sell-off assets in which it has a majority position and buy into foreign companies as part of a strategy by the small Gulf Arab oil producer to diversify its assets.

'It's not the right time now. It is more of a buyer's market,' CEO Talal Al-Zain told Reuters on the sidelines of a banking conference. 'I doubt it. Not now, because again it is a buyer's market,' he remarked.

Mumtalakat's assets include Aluminium Bahrain, Gulf Air and Bahrain Telecommunications Company.-Reuters