Mumtalakat Holding Company

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. The firm's portfolio, however, is composed of assets unrelated to oil and gas.

Learn more about the Mumtalakat Holding Campany and how it invests for the Kingdom of Bahrain.

Key Takeaways:

  • 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.
  • The fund's investment portfolio is composed of investment firms unrelated to oil and gas.
  • The fund's holdings are concentrated in local and regional firms that contribute significantly to Bahrain's economy.

According to the fund's website, its portfolio is comprised of both strategic and international direct investments.

Understanding the 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 is composed of investments unrelated to oil and gas. The fund's holdings are concentrated in local and regional firms that contribute significantly to Bahrain's economy. The portfolio is diversified, includes a variety of business sectors, and holds majority stakes in several firms.

According to the fund's website, mumtalakat.bh, the idea for the holding company initiative took root "...in 2005 at an economic reform workshop held under the patronage of His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince of Bahrain, 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."

How Mumtalakat Holding Company Invests

According to its latest available annual report (2020), the fund held $17.6 billion in assets across a wide range of industries and nations, some 60 companies in 14 countries. The largest holdings are in real estate, tourism, manufacturing, financial services, and food and agriculture. The fund said it provided over 14,0000 direct jobs within its local companies.

"Mumtalakat" is the Arabic name for assets.

According to its website, the fund is "Sector agnostic, [and] our current portfolio includes investments in sectors such as financial services, real estate & tourism, industrials, education, aviation, telecommunications, media & technology and automotive, among others, in disparate geographies."

The fund has professionals with in-depth experience across multiple sectors, such as real estate and tourism, logistics, media, telecommunications, healthcare, education, consumer, industrials, manufacturing, financial, and general services.

The fund's investing philosophy states, "Our investment horizon captures the long-term prospects for our partner companies, moving beyond the short and medium term economic cycles, ensuring sustainable positive returns in the sectors we target. Our portfolio is structured into four key areas namely Strategic Investments, Global Asset Management, Local Investments, and Government Holdings."

Who Owns Mumtalakat Holding?

Mumtalakat is a limited liability company owned by the government of the Kingdom of Bahrain .

Who Owns Sovereign Wealth Funds?

A sovereign wealth fund is a government-owned company designed to create wealth to benefit a country's economy and citizens.

What Is the Largest Sovereign Wealth Fund?

Norges Bank Investment Management (Norway GPFG) is the largest sovereign wealth fund, with more than $1.3 trillion in assets.

Article Sources
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  1. Mumtalakat Holdings Company. "Investment Approach."

  2. Mumtalakat Holding Company. "Mumtalakat 2020 Annual Report."

  3. Mumtalakat Holding Company. "Our History."

  4. Mumtalakat Holding Company. "Mumtalakat 2020 Annual Report," Page 45.

  5. Mumtalakat Holdings Company. "Our Portfolio."

  6. Mumtalakat Holding Company. "Investment Approach."

  7. Norges Bank Investment Management. "Annual Report 2021," Page 85.

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