The consolidation of the McClaren Group and the performance of the aluminium market helped Bahrain’s sovereign wealth fund Mumtalakat boost its consolidated assets to $15.4 billion in 2017, a 46% increase on the previous year.
A reorganisation of the McClaren Group, in which Mumtalakat owns a 56% share, produced a fair value gain of $667 million. Meanwhile higher aluminium prices contributed to a 91% rise in net profits at state-owned Aluminium Bahrain (Alba). Alba’s $3 billion Line 6 expansion project also began construction in the second quarter of 2017.
Mumtalakat also committed $88 million to a number of national assets in 2017 including Bahrain International Circuit, Bahrain Real Estate Investment and Arab Shipbuilding and Repair Yard.
“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 and chairman of Mumtalakat.
Mumtalakat generated $1.6 billion in capital expenditure last year – two and a half times the 2016 figure.
©2018 funds global mena