Mumtalakat 2018 Annual Report

Our
Investments

Investing for Bahrain

We continue with our mandate to grow and diversify the Kingdom’s wealth for future generations by investing in and for Bahrain. Within our portfolio, 43% of our companies are based in Bahrain, providing around 14,000 direct employment opportunities in the Kingdom.

We invest for the long term. When we look at domestic opportunities, we examine the wider economic outlook and the benefits that it will add to our country. We seek to invest in companies and sectors that address the country’s needs. That means that not all our local investment decisions are purely commercially driven as we consider the wider economic impact. For example, the aviation sector continues to be affected by geopolitical changes and oil prices fluctuations, yet Gulf Air remains one of our key assets as it connects us with the rest of the world, serving businesses and all communities in the country.

We also offer international businesses a presence in Bahrain, allowing them to capitalise on growth opportunities and the country’s strategic positioning as the gateway to the Middle East. This was reflected in our joint venture with Mueller Industries and Cayan Ventures when we established Mueller Middle East in 2016. Only two years later, the company is now fully operable in Bahrain and is manufacturing and exporting its products regionally and internationally to air conditioning and refrigeration manufacturers.

Furthermore, we added one more company to our industrial manufacturing portfolio by acquiring a significant stake in H Al Dhaen Boats, a private Bahraini company that caters to boat users in the Arabian Gulf region and across the world. Al Dhaen specialises in the manufacturing and distribution of high-quality pleasure, fishing, military patrol craft and commercial boats. It also maintains a wide-ranging service centre that covers engine services and boat repairs in addition to operating as a local dealer and distributor of premium marine engines, spare parts and accessories on behalf of specialised technology providers, Suzuki and Garmin.

With the objective of supporting national plans to make Bahrain a regional hub for venture capitals and technology companies, we invested in Al Waha Fund of Funds. By investing in Bahrain’s start-up community, it is envisaged that the Fund will boost the start-up ecosystem in the country and the region.

Marking our first investment in agriculture outside of Bahrain, we invested in Khairat Al Bahrain last year which is a unique farming project in the Republic of Sudan. This will contribute to the enhancement of the Kingdom’s food security system which will ultimately support the development and growth of our economy.