Mumtalakat 2018 Annual Report

What
we’ve done

Finance

Our Finance team sets the ultimate example when it comes to transparency, accurately and efficiently reporting to internal and external stakeholders on a timely basis. The team also ensures that we follow International Financial Reporting Standards, proactively plans and monitors financials through budgeting and forecasting, complies with internal policies, applies the necessary regulations and reporting frameworks and manages our cashflows and liquidity to meet our funding requirements.

Key milestones in 2018:

Our Finance team plays an integral role in supporting our mandate of growing the wealth of Bahrain as they are responsible to make funds available for our investments and other funding requirements. In 2018, the team made a full repayment of the MYR 150 million Malaysian Sukuk in addition to successfully refinancing US $450 million of loans, extending their maturity date by three years.

With the Government of Bahrain’s introduction of the Value Added Tax (VAT), our Finance team ensured the organisation was ready for the upcoming changes. Phase one comprised of an assessment of the impact of VAT rules and regulations on business operations, registration requirements, IT system requirements and others. This was followed by phase two in which an external consultant was involved. This encompassed the following areas: tax, regulatory and compliance; implementing changes to IT Systems to meet VAT reporting requirements; client and vendor management; training; and organisational readiness.

At the same time, the team continued to manage the financial, reporting risks and compliance risks with no exceptions.

Within the Treasury and Capital Market (TCM) function, while negative market sentiment dominated capital markets in 2018 resulting in negative returns across all traditional asset classes, the TCM portfolio managed to outperform its composite benchmark by 3.31%.