Mumtalakat 2018 Annual Report

Investing

in and for Bahrain

At Mumtalakat, our mandate is simple. We seek to invest in and for Bahrain for many generations to come. We do this by supporting the national economy as a stabilizing fund while also seeking to grow and diversify our portfolio with commercially viable investment opportunities across multiple sectors and geographies. Our portfolio has grown since we were established in 2006 from 29 companies to over 60 companies today.

Our

Progress

2018 was another year of success for us reflecting continuous growth in our consolidated assets value. The strength of our results throughout the years is a true testament to the resiliency of our investment mandate and reflects how successful we have been in implementing a disciplined and focused approach in managing our portfolio with a commercial mindset.

Key

Acquisitions

In 2018, we continued to invest both locally and internationally. Two new local investments were added to our portfolio. We also added two new real estate investments in the United States to our portfolio, in addition to three further investments in the aviation, infrastructure and telecommunication, media & technology (TMT) sectors through our co-investment programme with the Russian Direct Investment Fund (RDIF).

We also continued with our mandate to invest in the Kingdom of Bahrain and support the national economy.

Marking our first joint venture with Sentinel Real Estate Investment Corporation (Sentinel), we acquired an office campus, fully leased to Lenovo, in Raleigh-Durham, North Carolina, USA.

Our American real estate presence grew with a second acquisition of office buildings in Charlotte, North Carolina Metropolitan Area, which are occupied by The Lash Group, a leading pharmaceutical and healthcare provider.

We invested in the largest airlines group in Russia, Aeroflot, as part of our co-investment programme with RDIF.

We purchased a 90% stake in H Al Dhaen Boats, a private Bahraini company that specialises in the manufacturing and distribution of high-quality pleasure, fishing, military patrol craft, and commercial boats.

In a partnership with RDIF, we entered the infrastructure sector for the first time by acquiring a stake in The Main Road Company, which is focused on the implementation of the construction and operation of the M-1 Bypass Road in Moscow region.

Investing in WayRay, an innovative technology company that develops holographic augmented reality technology hardware for cars, was our first acquisition in the TMT sector outside of the Arabian Gulf region. Our investment was made alongside RDIF and a consortium of sovereign wealth funds.

We established our first investment in agriculture outside of Bahrain, for the development of 420sqkm of land in Sudan, through a wholly owned subsidiary, Khairat Bahrain.

Our

Diversification

Our portfolio consists of over 60 companies across various sectors in 14 countries, of which 62% is based in the Middle East and North Africa, 30% in Europe and 8% in North America.

BY SECTOR

BY GEOGRAPHY

Read the views of the Chairman of our Board of Directors and Deputy Prime Minister, HE Shaikh Khalid bin Abdulla Al Khalifa, and our Chief Executive Officer, Mahmood H Alkooheji.

Chairman’s

Message

HE Shaikh Khalid bin Abdulla Al Khalifa

Despite decelerated growth in Bahrain’s economy, non-oil sector growth continued throughout 2018, reaching 2.4%. With our investments in Bahrain representing 70% of the value of Mumtalakat’s consolidated assets, Mumtalakat’s contribution to the local economy is important.

In addition to maintaining approximately 14,000 jobs in the country, new investments were made both locally and internationally and capital expenditure in important local projects continues to rise year-on-year.

I would like to use this opportunity to thank my colleagues on the board, and Mumtalakat’s employees who worked tirelessly to support the growth of the company. I am confident that with our resilient investment approach, and the capability of the team, we will continue to drive our business forward and deliver on our promise of growing the Kingdom’s wealth.”

KHALID BIN ABDULLA AL KHALIFA
DEPUTY PRIME MINISTER &
CHAIRMAN OF THE BOARD OF DIRECTORS

CEO’s

Message

Mahmood H Alkooheji

Longstanding stability and endurance are reflected in our results this year. In fact, since 2012, our consolidated assets value has risen 54%, reaching US $16.8 billion today.

Throughout the year, we maintained our investment approach, growing and diversifying our portfolio by investing internationally with seven international acquisitions across different sectors and geographies. At the same time, we were keeping an eye on Bahrain with two new investments made in the Kingdom.

Our performance is always a tribute to the efforts and guidance of our Board of Directors, led by HE Shaikh Khalid bin Abdulla Al Khalifa, Deputy Prime Minister and Chairman of the board; as well as the work and commitment of our multidisciplinary team.

MAHMOOD H. ALKOOHEJI
CHIEF EXECUTIVE OFFICER