What is the 'Mumtalakat Holding Company'

The Mumtalakat Holding Company is a government-owned investment organization that manages the sovereign wealth fund for the Kingdom of Bahrain. The fund's deposits come primarily from surplus revenues from the development of oil and gas reserves in Bahrain.

BREAKING DOWN 'Mumtalakat Holding Company'

The Mumtalakat Holding Company is managed by a nine-member board of directors composed of a mix of public officials and private sector experts. The investment portfolio consists of investment firms not related to oil and gas. The fund's holdings are concentrated on local and regional firms that contribute significantly to the economy of Bahrain. The fund is diversified across a variety of business sectors and holds majority stakes in several firms.

Building Wealth for a Nation

According to the fund's website, mumtalakat.bh, the idea took root in 2005 at an economic reform workshop by the Crown Prince of Bahrain. "Open to participants from ministries and government entities in addition to representatives within the private sector, the workshop focused on enhancing the private sector’s role in future economic growth in the Kingdom. There, a vision was launched to form the basis for the next phase of the national economic reform initiative," the website states.

As of May 2018, the fund held $11 billion in assets in a wide range of industries and nations, some 60 companies in 13 countries. The largest holdings were in real estate and tourism, followed by manufacturing and financial services, and food and agriculture. The fund said it provided over 13,400 direct jobs within its local companies.

According to its website, the "sovereign fund is a state-owned investment fund that is commonly established from balance of payments surpluses, official currency operations, the proceeds of privatizations, governmental transfer payments, fiscal surpluses, and/or receipts resulting from resources exports. The definition of sovereign wealth funds excludes foreign currency reserve assets held by monetary authorities for the traditional balance of payments or monetary policy purposes, state owned enterprises, government employee pension funds, or assets managed for the benefit of individuals."

Mumtalakat calls itself a self-sustaining operation. "We do not obtain any contributions from the government and seek investment options that will deliver returns in order to enable us to meet our debt obligations and help grow the wealth of the country."

"We continuously monitor our investment performance keeping abreast of our portfolio companies’ financials, operating performance, and fair value movements. Furthermore, we conduct various valuations as well as benchmarking and comparable analyses to ensure their growth is in accordance with our expectations," the fund stated.

  1. Sovereign Fund Of Brazil

    The Sovereign Fund of Brazil is a sovereign wealth fund for the ...
  2. Revenue Regulation Fund

    The Revenue Regulation Fund is a sovereign wealth fund for the ...
  3. Sovereign Risk

    Sovereign risk is the risk that a central bank will impose foreign ...
  4. Alaska Permanent Fund

    The Alaska Permanent Fund pays an annual dividend to eligible ...
  5. Oman Investment Fund

    A state-owned investment fund established in 2006 by the Sultan ...
  6. Foreign Fund

    A foreign fund is a fund that invests in companies outside the ...
Related Articles
  1. Investing

    5 Largest Sovereign Wealth Funds

    Oil-rich Norway tops the list of the largest sovereign wealth funds in the world.
  2. Investing

    Sovereign Wealth Firms To Slow U.S. Buys: BofA

    U.S buying by sovereign wealth investments could come to an end soon as they seek higher returns, according to Bank of America.
  3. Investing

    The Risks Of Sovereign Bonds

    Sovereign debt can play an important role in providing international diversification to individual investors.
  4. Investing

    An Introduction to Sector Mutual Funds

    Investing among several different sectors in the economy is a way to diversify your portfolio.
  5. Managing Wealth

    How to start your own private equity fund

    Use this how-to guide to launch your own private equity firm.
  6. Trading

    How Currency Fluctuations Impacted 2016 Wealth

    These countries were impacted the most by currency swings.
  7. Financial Advisor

    How Big Is the Wealth Management and Financial Advisor Industry?

    Learn about the world's $74 trillion in managed assets, and why the wealth management industry is drastically different following the financial crisis of 2007-2008.
  8. Investing

    BNDX: Vanguard Total International Bond ETF

    Learn about the Vanguard Total International Bond exchange-traded fund, which invests in investment-grade foreign, sovereign and corporate bonds.
  9. Investing

    Best Mutual Funds For Financial Service Company

    Understand the investment opportunities in the financial services sector, and learn about the best mutual funds for financial service company exposure for 2016.
  10. Financial Advisor

    Top 5 American Funds for Retirement Diversification in 2016

    Discover five mutual funds from industry leader American Funds with high yields that are perfect for retirement savings diversification.
  1. Do mutual funds pay interest?

    Find out how and why some mutual funds pay interest, and which types of funds make regular dividend distributions to shareholders ... Read Answer >>
Trading Center