Al Zain builds on a wealth of opportunity

Mumtalakat has recently celebrated five years of existence. Like its rival Mubadala, a few hundred kilometres down the Gulf in Abu Dhabi the organisation is tasked with delivering wealth to the country by developing a diversified and balanced portfolio of investments.

And like Mubadala, the team at Mumtalakat, believes there are opportunities in the aviation business that can be of immense benefit to the Kingdom.

Heading the executive team is chief executive Talal Al Zain, a highly respected investment banker with Chase Manhattan, Investcorp and Citibank.

Investments include a number of non-energy related assets in sectors such as aluminium production, telecommunications, real estate, financial services, food production …. and aviation.

Al Zain takes a special interest in the aviation sector. As chairman of Gulf Air, Bahrain’s national airline, he has seen first hand that old adage of how do you make a million dollars from an airline? You start with two million.

But under his careful stewardship and with an experienced CEO of the airline in Samer Majali, Gulf Air is following a structured recovery plan and is beginning to see the results of its strategy.

“Gulf Air was the only one of businesses in our portfolio that was impacted by the crisis in the Middle East and here in Bahrain. That of course was understandable given the dependence on tourism and business travel. But Bahrain is healthy. Overall Bahrain is still very strong geographically and in an excellent location,” Al Zain said.

With the Bahrain International Air Show just around the corner, Al Zain believes the event is a showcase not just for the aviation world but for industry as a whole.

“Because of our existing system, the regulations, the economic policies that were put together over the last 11 or 12 years since the economic development board (EDB) was set up, has given the economy a strength that it can continue to operate even during downturns,” Al Zain explained

“During the financial crisis in 2008-9, the impact on Bahrain was minimal and continues to grow at 4 -4.5% GDP. Our banking sectors had strong balance sheets because of the regulatory system. We have never had liquidity problems and in fact Bahrain banks have wanted to do more business.”

It is this financial reality of a strong regulatory system that exceeds standards set in other major financial centres linked with the strong liquidity that Al-Zain believes should form the bedrock for companies wishing to set up in Bahrain.

“Unlike other places in the region we do not want to create monopolies,” he said. “The economic vision for 2030 from the EDB focuses on to improving standards of living. One of the main verticals in the vision is competitiveness not monopolies. Bahrain is open for investors and companies from the whole world.”

Al Zain said that the company’s aerospace heritage – it was the main hub for the Middle East for half a century and home of the first Gulf airline – and its geographic location were key factors for aviation companies to consider when looking at Bahrain.

“Overall Bahrain is an excellent location. We are 24km from the deepest and strongest economy in the region. And the GCC is responsible for 50% of all growth across the MENA region. Bahrain will always attract business,” Al Zain said.

“Another competitive advantage is that we do have trained, educated local talent. If you His Majesty the King, the prime minister or the crown prince, when they speak about the economy and the future they always, always focus on dependency on the local people.

“While expats are critical part of our society it is the local talent, local people, that provide sustainability. As Mumtalakat further invests in the aviation sector it will generate more opportunities for Bahrainis and seek support from expatriates to provide to us the know-how.”

As well as Gulf Air, Mumtalakat owns the Bahrain Airport Company, the Gulf Aviation Academy and the MRO provider Gulf Technics. It is an active supporter of the Bahrain airshow.