Mumtalakat 2019 Annual Report
Annual Report 2019
Investing for
Growth

Investing for Growth

Strategic Investments to Generate Growth
Today and for the Future

As the Sovereign Wealth Fund of the Kingdom of Bahrain, Bahrain Mumtalakat Holding Company “Mumtalakat” is committed to fostering sustainable economic prosperity for generations to come. We invest in, and for, Bahrain by seeking rewarding investment opportunities across multiple growth sectors and geographies. Since inception in 2006, our robust and diverse portfolio has grown from 29 companies to over 60, with a total consolidated assets of nearly USD 19 billion.

Our Progress

2019 marks another year of solid financial and operational performance across the Mumtalakat Group. Our efforts to maintain a balanced, diversified, and sustainable portfolio have led to robust growth that continues to play a vital role in the economy. Moreover, our focus on revenue enhancement and cost control have contributed to a significant increase in operating income.

US$
0
MILLION

GROSS PROFIT

US$
0
MILLION

OPERATING INCOME

US$
0
MILLION

SHARE OF PROFITS OF ASSOCIATES

US$
0
MILLION

NET PROFIT BEFORE IMPAIREMENT LOSS

US$
0
BILLION

TOTAL ASSETS

US$
0
BILLION

TOTAL EQUITY

US$
0
BILLION

CONSOLIDATED REVENUES

Key Acquisitions

The year witnessed considerable strides in relation to strategic investments in our local, regional, and international ventures.

We added a new Spain-based industrial manufacturing investment to our portfolio through an equity stake in Premo Group. Closer to home, Radio Bahrain English Channel (96.5 FM) joined the Group through the newly established Radio Bahrain Company.

We invested in Elm, a Bahrain-based education platform established to develop the education sector in the Kingdom and across the Middle East and North Africa (MENA) region. We also divested from UAE-based GEMS, one of the world’s oldest and largest providers of private K-12 education.

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

Our Leadership

Chairman's Message

KhalidBin
Khalid Bin Abdulla Al Khalifa
Deputy Prime Minister &
Chairman of the Board of Directors

We have ended yet another successful year with solid results.

Despite a challenging global and regional economic environment, Mumtalakat’s focus on long-term growth and sustainability allowed us to witness continued financial and operational growth throughout 2019. Group revenues grew by 11 percent over the course of the year, with our consolidated assets now valued at USD 18.9 billion.

Investing in, and for, Bahrain, our diversified portfolio of over 60 companies is spread across 13 geographical locations. Furthermore, we are the largest employer in Bahrain employing around 14,000 people within our local portfolio companies.

The challenge ahead is a big one for all of us but we look to the future with optimism and confidence counting on our commitment, hard work and sound management decisions while maintaining the highest transparency and corporate governance standards.

I extend my thanks to my fellow board members for their ongoing support, guidance and dedication, and to our exceptional team who are the key to Mumtalakat’s success.

CEO’s Message

Mr Rumaihi
Khalid Al Rumaihi
Chief Executive Officer

We are living in a world where the only constant is change, and the year 2019 has been eventful both for Mumtalakat and myself.

Having been associated with Mumtalakat for the last four years as a board member, I would like to take this opportunity to thank the outgoing CEO Mahmood Alkooheji who led Mumtalakat for the past seven years, and I am both honored and excited to take the helm and lead Mumtalakat into its next phase.

During 2019, Mumtalakat secured new investments while continuing to work with existing portfolio companies to improve revenues and control costs. We significantly increased operating income, maintaining a balanced, diversified, and sustainable portfolio.

We also navigated a challenging commodities market, with weakened global aluminium prices. Upholding our principles of prudence and transparency, we recorded impairment losses on goodwill related to Alba to better reflect current market conditions.

Our commitment to education was renewed with strategic investments in this sector in Bahrain. We also continued to develop tomorrow’s leaders through world-class training initiatives while leading by example to become the first government entity to align its IT operations with the Kingdom’s Cloud First policy.

We face another challenging year in 2020. However, with the valued guidance of our Board of Directors, chaired by HE Shaikh Khalid bin Abdulla Al Khalifa and the continued commitment and hard work of our exceptional team, we are confident in our ability to embrace the challenges ahead and capture the next wave of growth by remaining focused.