MANAMA: Bahrain’s sovereign wealth fund Mumtalakat plans multi-million dollar investments in local projects, joining efforts to bolster the economy. Chief executive Mahmood Al Kooheji said the fund was targeting $150m of investments in the kingdom this year, its largest ever commitment to the local economy in a single year.

The Arab Spring unrest has prompted governments to bolster spending on infrastructure and education.

The UAE said last month it would grant Bahrain $2.5 billion for development projects, part of a regional funding programme implemented after the unrest in 2011.

Mumtalakat, set up in 2006, holds stakes in firms in Bahrain’s non-oil sector, including Batelco, Alba and Gulf Air.

The $9bn fund has allocated $45m for real estate projects, $50m around downstream aluminium industries and $42m for tourism and
hospitality schemes, Mr Al Kooheji said.

“As well as contributing to the development and growth of our portfolio companies, we believe there are other opportunities (in Bahrain) which we can benefit from,” Mr Al Kooheji added.

On the tourism investment, he said the fund had already signed agreements with two international hotel operators to manage developments.

It would also look for international partners to support its aluminium investments.

Potential demand for real estate, in particular from Saudis coming to the kingdom, would ensure there was a market for planned new developments.