Mumtalakat Digital Annual Report

Our
Investments

Our Portfolio

We hold stakes in over 50 local and international commercial enterprises spanning a variety of sectors. Our sectors include industrial manufacturing, real estate and tourism, logistics, telecommunications, technology and media, logistics, consumer, financial services, general services, and healthcare.

OUR INVESTMENT SECTORS

AVIATION

The aviation sector is a key contributor to countries’ economies, with 2.78 million people working in the aviation industry globally. Other sectors such as real estate and tourism benefit indirectly from aviation. For that reason, we continue to look for opportunities within this sector to create a balanced portfolio of local and international aviation assets.

PORTFOLIO UPDATES

Bahrain Airport Company was established in 2008 to operate, manage, and develop Bahrain International Airport (BIA) as a sustainable and commercially competitive airport. Driven by a clear vision to provide a friendly and efficient airport for a proud country, BAC has been responsible for elevating the airport’s infrastructure, facilities and services and sustaining operational and commercial excellence, for the benefit of travellers and stakeholders alike.

CONSUMER

We seek opportunities in the consumer sector that benefit from core technologies and social trends. As the global middle-class spending will almost triple by the year 2030, we aim to enhance people’s experiences and answer their needs.

PORTFOLIO UPDATES

Lenta is one of the largest retail chains in Russia and the country’s second largest hypermarket chain.

The total number of Lenta stores is 190 hypermarkets in 77 cities across Russia and 50 supermarkets in Moscow, St. Petersburg and the Central region.

Lenta Limited acquisition was made as part of Mumtalakat’s co-investment programme with the Russian Direct Investment Fund (“RDIF”).

Education

Our first investment in the education sector was made in 2009 when we established the Gulf Aviation Academy in Bahrain. Since then, we continued to look for opportunities within this sector. To us, investing in education means investing in our children and youth to prepare for a better future for the generations to come. Through our investments in education, we aim to address the increasing need for education and at the same time provide good returns on our investments.

PORTFOLIO UPDATES

GEMS was established in 2000 in the UAE as a pioneering education company. Mumtalakat invested in GEMS’ emerging market business in 2014, a network of 46 schools in the Middle East, North Africa, and Southeast Asia – representing GEMS’ fastest growing markets. Through that network, GEMS educates over 115,000 students and employs 6,800 teachers.

Nobel Learning Communities was founded in 1984 and has rapidly grown to become one of the largest providers of private preschool through high school education in the United States. It operates a network of 176 schools across 18 states.

GAA was established in 2009 by Mumtalakat, to become the leading provider of high quality professional aviation training that serves the training needs of the aviation industry in the Kingdom of Bahrain and the Middle East and North Africa region.

FINANCIAL SERVICES

We continue to seek investment opportunities in financial services as the sector is growing steadily due to the continued demand for a wide range of financial services products. Today, around 17% of our current portfolio is represented by the financial services sector.

PORTFOLIO UPDATES

With a 15% market share, Feelunique is the fastest growing player in the UK’s online prestige beauty space and the only online retailer in Europe with a full range of top and niche brands across all product categories.


Oasis Capital is a leading independent investment firm, that acts as a principal in the acquisition of controlling as well as significant minority interests in companies in developed markets.

FCC is the largest and only integrated cement producer in Bahrain. The company provides cement used in large scale projects for public and private customers primarily in the Kingdom. FCC has a current capacity of 1,000 tonnes per day (tpd) and is in the advanced stages to double production to 2,400 tpd by 2017.


The Arab Petroleum Investments Corporation (APICORP) is an investment company established to foster the development of the Arab world’s oil and gas industries. The company seeks to make equity investments and provide project loans, trade finance, advisory and research to the energy industry.

General Services

Investment opportunities lie in various sectors. That is why we seek opportunities in general services companies that provide retail and technological services, asset management services, policy making and management support.

PORTFOLIO UPDATES

The company attracted almost 200 fans from Europe for the 2016 Formula 1 Gulf Air Grand Prix


Logistical support for Ironman triathlon competitors and visitors was provided in December. The company also handled ground logistics and accommodation for over 400 participants at the pharmaceutical conference, Novo Nordisk.


Atbahrain is a destination management company focused on developing, managing and marketing Bahrain as a travel and tourism destination nationally, regionally and internationally.

Healthcare

In 2016 we made a new investment in the healthcare sector. This was taking into consideration rising global healthcare expenditure as populations age.

PORTFOLIO UPDATES

The healthcare team is collaborating with KOS and other shareholders to support the company in exploring the potential of expanding the business into the Arabian Gulf.


KOS Group is a leading healthcare group in Italy that operates in the area of social health, residential care for chronic illnesses, rehabilitation and mental health services, and management of medical equipment and diagnostic centres. It has over 76 dedicated facilities comprising 7200 beds including nursing homes, rehabilitation centres, hospitals and mental health clinics.

Industrial manufacturing

Four new investments were added to our portfolio in the industrial manufacturing sector in 2016. These include our first investment in a provider of environmental technology solutions company.
Industrials manufacturing is a key contributor in improving people’s day to day lives. We recognise the importance of this sector and continue to seek opportunities that benefit our investments and Bahrain as a whole.

PORTFOLIO UPDATES

Envirogen is a specialised international provider of environmental technology and process solutions for the treatment of water, wastewater, vapour emissions and material recovery, with operations across Europe and North America.

Aleastur is specialised in the manufacturing of aluminium grain refiners and master alloys, mainly in rod form and ingots. Aleastur has evolved into one of the leading aluminium grain refining players in the world with an international presence and a diverse distribution base of over 700 customers across 70 countries.

Gulf Cryo produces and supplies industrial, medical and specialty gases to a wide range of industries in the MENA region. Gulf Cryo was the first gas manufacturer in Kuwait to provide industrial gases such as oxygen and nitrogen to the booming local petroleum industry.

We signed an agreement with Mueller Industries, a leading manufacturer and distributor of flow control and industrial products listed on the NYSE, and Cayan Ventures, a GCC-based industrial projects developer and investor, to build the first copper tube manufacturing facility in Bahrain.

Gulf Aluminium Rolling Mill Company (GARMCO) is the first and one of the largest downstream aluminium facilities in the Middle East for rolling, cutting and fabricating aluminium.


The construction of the new re-melt facility is designed to develop GARMCO’s metal recycling capability which will increase the production capacity by 150% to 200,000 tonnes of aluminium slabs per annum and will create around 50 new jobs.

McLaren Automotive is a British manufacturer of luxury high-performance sports cars, and is part of McLaren Group.


McLaren Automotive sold 3,286 cars during the year, nearly double the number sold in 2015. The company announced a new six-year business plan that will see the company launching 15 all-new cars or derivatives between now and 2022.

Logistics

With the demand for logistics services and innovation in logistics continuing to grow, we made an investment during 2016 alongside our partners at the Russian Direct Investment Fund (RDIF). This is an important area for us asthe global logistics market is expected to reach US $15.5 trillion by the year 2023.

PORTFOLIO UPDATES

Hyperloop One is a US technology company established in 2014 to develop a high-speed transportation system. The company aims at developing and implementing the concept of the high-speed transportation system with capsules moving in low-pressure tubes with speeds of up to 1,200 km/h. Hyperloop One plans to develop the concept into commercially viable transportation solution for both passengers and cargo.

UASC is a global shipping company and is the largest container shipping line in the Middle East.


The new Hapag-Lloyd will rank among the five largest container shipping lines in the world, with 237 vessels and a total transport capacity of around 1.6 million TEU, an annual transport volume of 10 million TEU and a combined turnover of approximately US $12 billion.

Real Estate and Tourism

Our first international real estate investments were made in 2016. We added one US real estate investment and one Russian investment to our portfolio of real estate and tourism companies.

PORTFOLIO UPDATES

As part of our partnership with Regent, we acquired an interest in an existing portfolio of high-quality commercial real estate assets in the United States currently managed by Regent. The portfolio is comprised of substantially leased, income-generating Class-A office buildings in the Phoenix, Arizona and Dallas, Texas areas.

Professional Logistics Technologies is a newly founded company with a focus on investing and owning institutional quality logistics assets in Russia. The company is planning to grow its portfolio of modern logistics facilities to become the leading player in logistics facilities in Russia with a network of facilities throughout the country.

Durrat Al Bahrain is an urban living, island style development.Located on the south coast of Bahrain, this 21 km² development has been created across a cluster of 15 spectacular islands.

Telecommunications, Media and Technology (TMT)

We have been supporting our companies within the TMT sector since our establishment and we continue to do so as the sector is rapidly growing with higher demands for mobile services, smartphones, internet and other media applications.

PORTFOLIO UPDATES

In November, OOKLA awarded Batelco Bahrain the Fastest Mobile Internet Award.Speedtest by OOKLA is the global leader in broadband and mobile speed testing and web-based network diagnostic applications.


Batelco is Bahrain’s leading telecommunications and digital solutions provider.


Batelco Bahrain collaborated with Ericsson to develop a joint understanding of 5G use cases, requirements and deployment scenarios, as well as to evaluate performance and applicability of potential 5G key technology components.