Our overarching objective is to generate sustainable wealth for future generations. As a result, we contribute to the national economy in line with our mandate. These undertakings run in parallel to our investment and growth strategies, making a significant difference to local sectors and the way in which people live, supporting both the Government Action Plan and national budget.
From our very inception in 2006 we have actively supported and funded our diverse local portfolio companies with over BD 600 million [US$ 1,596 million], a considerable contribution for a young sovereign wealth fund that only received BD 5 million [US $13 million] from the Government at establishment and no further funding since.
Examples of our support and financing abound.
Between 2006 and 2012, we provided Gulf Air with financing of BD 475 million [US$ 1,263 million] and implemented restructuring initiatives to improve its operational efficiencies, strengthening its competitive position as the leading airline for timely, short-haul flights. This led to a reduction in the airline’s operating losses by 86% from BD 184 million [US$ 489 million] in 2012 to BD 31 million [US$ 82 million] in 2015. Including government subsidies, Gulf Air’s net income changed from a loss of BD 81 million [US$ 215 million] in 2012 to a net profit of BD 66 million [US$ 176 million] in 2015.
We have supported the expansion plans of some of the country’s key industrial players…
We helped enhance Alba’s production capacity through an efficiency programme implemented in 2014 and supported the development of its Line 6 expansion plan. Due to operate in 2019, this enlargement will make Alba the largest single site aluminium smelter in the world. With a strategic focus on the country’s downstream aluminium industry we supported the development a new re-melt facility designed to develop GARMCO’s metal recycling capability and increase the company’s production capacity of aluminium slabs by 150%.
We’ve also established a number of important joint ventures. Our partnership with Mueller Industries, US and Cayan Ventures, Saudi Arabia has led to the establishment of the first regional copper tube manufacturing facility in Bahrain – Mueller Middle East.
This has meant that over the years we have borrowed from banks and international capital markets to meet some of the needs of our Bahraini companies and spearheading strategic initiatives to increase their value.
We continue to honour our debt obligations while our investments in the country continue to grow, providing over 14,600 direct employment opportunities to date.
Notably, due to the performance of certain investments, we have been able to commit a share of our profits to support the country’s national budget in 2017 and 2018.