Bahrain Sovereign Fund (Mumtalakat) Loss Exceeds Half Billion in 2020

2021-06-19 - 7:26 م

Bahrain Mirror: Bahrain Mumtalakat Holding Company, the sovereign wealth fund of the Kingdom of Bahrain, announced its consolidated financial results for the year ended 31st December 2020. The results reflect financial and operational performance across the Mumtalakat group ("Group").

The data revealed that the company lost BD 527 million in 2020, compared to a loss of about BD 51 million in 2019, a significant increase of 933%.

Last year, the company received government aid of BD 59.45 million, while government aid in 2019 was about BD 30.60 dinars. 

The total value of Mumtalakat assets during 2020 amounted to BD 6.6 billion, a decrease from BD 7.08 billion in 2019. 

The increase in loss was due to a decrease in revenues of BD 1.6 billion during the period, compared to BD 2.3 billion in 2019, and a 178% increase in impairment losses to BD 379.6 million as of December 31, 2020.

The company also received BD 59.4 million as government aid in 2020, compared to BD 30.60 million government aid in 2019.

With respect to the balance sheet, assets fell to BD 6.6 billion by 6%. The company's borrowings also increased from BD 1.9 billion at the end of 2019 to BD 2.4 billion at December 31, 2020, a 24% increase. This increase in borrowing led to a 32% increase in interest expense in 2020.

Mumtalakat Company is owned by the Bahraini government; it owns all governmental companies and their shares like Alba, Batelco, National Bank of Bahrain, Gulf Air and others.

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